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                                                                   EXHIBIT 10.19

                              MANAGEMENT AGREEMENT

         AGREEMENT entered into as of January 2, 2001 by and between FSI
International, Inc., a Minnesota corporation (the "Company"), and Donald S.
Mitchell (the "Employee").

                                   WITNESSETH

         WHEREAS, the Employee is a new member of the management of the Company
and is expected to devote substantial skill and effort to the affairs of the
Company or a Subsidiary, and the Board of Directors of the Company desires to
recognize the significant personal contribution that the Employee has made
and/or is expected to make to further the best interests of the Company and its
shareholders; and

         WHEREAS, it is desirable and in the best interests of the Company and
its shareholders to obtain or maintain the benefits of the Employee's services
and attention to the affairs of the Company or a Subsidiary; and

         WHEREAS, it is desirable and in the best interests of the Company and
its shareholders to provide inducement for the Employee (a) to remain in the
service of the Company or a Subsidiary in the event of any proposed or
anticipated change in control of the Company and (b) to remain in the service of
the Company or a Subsidiary in order to facilitate an orderly transition in the
event of a change in control of the Company; and

         WHEREAS, it is desirable and in the best interests of the Company and
its shareholders that the Employee be in a position to make judgments and advise
the Company or a Subsidiary with respect to proposed changes in control of the
Company without regard to the possibility that Employee's employment may be
terminated without appropriate compensation in the event of certain changes in
control of the Company; and

         WHEREAS, the Employee desires to be protected in the event of certain
changes in control of the Company; and

         WHEREAS, for the reasons set forth above, the Company and the Employee
desire to enter into this Agreement.

         NOW, THEREFORE, in consideration of the foregoing and the mutual
covenants and agreements contained herein, the Company and the Employee agree as
follows:

         1. Definitions. For purposes of this Agreement, the following terms
shall have the following meanings:

                  A. "Accounting Firm" shall have the meaning set forth in
         Paragraph 4(B).

                  B. "Base Annual Salary" shall mean the highest annual rate of
         the Employee's base salary with whichever of the Company and one or
         more of its Subsidiaries that shall have employed the Employee in
         effect at any time during the period commencing as of twelve months
         prior to the First Event and ending on the date of termination of the
         Employee's employment with

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         the Company and its Subsidiaries (without reduction for any salary
         reduction or other deferral contribution to any employee benefit plan
         sponsored by the Company or any Subsidiary).

                  C. "Board" shall mean the Board of Directors of the Company.

                  D. "Cause" shall mean and be limited to, (i) willful and gross
         neglect of duties by the Employee or (ii) an act or acts committed by
         the Employee constituting a felony under United States federal or
         applicable state law and substantially detrimental to the Company or
         any Subsidiary or the reputation of the Company or any Subsidiary,
         following a determination to that effect by a resolution duly adopted
         by the affirmative vote of not less than two-thirds of the entire
         membership of the Board at a meeting thereof called and held for such
         purpose (after reasonable notice is provided to the Employee and the
         Employee is given an opportunity to be heard before the Board) finding
         that in the good faith opinion of the Board the Employee is guilty of
         the conduct described above in (i) or (ii).

                  E. "Code" shall mean the Internal Revenue Code of 1986, as
         amended, and any successor statute thereto.

                  F. "Commencement Date" shall mean the earliest to occur of an
         Event described in clause (J)(i), (ii) or (iii) of this Paragraph 1.

                  G. "Company" shall mean the Company as defined in the first
         sentence of this Agreement and any successor to its business and/or
         assets which is required to execute and deliver the agreement provided
         for in Paragraph 6(B) or which otherwise becomes bound by operation of
         law to all the terms and provisions of this Agreement.

                  H. "Constructive Involuntary Termination" shall mean a
         termination of employment with the Company and its Subsidiaries by the
         Employee at any time from the date of the First Event until the end of
         the Transition Period, if after the First Event and at or prior to the
         time of such termination:

                           (i) the Employee is assigned duties materially
                  inconsistent with the Employee's authorities, duties,
                  responsibilities and status (including office, title and
                  reporting requirements) as an employee of the Company or there
                  is a reduction or alteration in the nature or status of the
                  Employee's title, authorities, duties, assignments or
                  responsibilities in each case as compared with the Employee's
                  title, authorities, duties, assignments and responsibilities
                  immediately prior to the First Event, other than a termination
                  for Cause or on account of Disability;

                           (ii) the Company or any Subsidiary shall have failed
                  to continue in effect the Employee's base salary at an
                  equivalent or greater level, as compared to immediately prior
                  to the First Event other than a termination for Cause or on
                  account of Disability or shall have failed to pay the Employee
                  any amounts due therefore;

                           (iii) there is a material reduction in the Employee's
                  level of participation in any of the Company's short- and/or
                  long-term incentive compensation plans, or employee benefit or
                  retirement plans, policies, practices, arrangements,
                  perquisites or fringe benefits in which the Employee
                  participates from the levels in place immediately prior to the
                  First Event, other than a Termination for Cause on account of
                  Disability; provided, however, that reductions in the

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                  levels of participation in any such plans, policies,
                  practices, arrangements, perquisites or fringe benefits shall
                  not be deemed to be a Constructive Involuntary Termination if
                  the Employee's reduced level of participation in each such
                  program remains substantially consistent with the average
                  level of participation of other executives who have positions
                  commensurate with the Employee's position;

                           (iv) the Company shall have failed to obtain
                  assumption of this Agreement by any successor as contemplated
                  by Paragraph 6(B) hereof;

                           (v) The Company or any Subsidiary shall fail to
                  reimburse the Employee for reasonable business expenses and
                  such failure shall have continued for at least seven days
                  after notice in accordance with Paragraph 8 hereof of such
                  failure is given by the Employee to the Company or the
                  Subsidiary, as the case may be;

                           (vi) the Company or any Subsidiary shall require the
                  Employee to relocate to any place other than a location within
                  twenty-five miles of the location at which the Employee
                  performed substantially all of his duties immediately prior to
                  the First Event or, if the Employee performed such duties at
                  the Company's or a Subsidiary's principal executive offices,
                  the Company or such Subsidiary shall relocate its principal
                  executive offices to any location other than a location within
                  twenty-five miles of the location of the principal executive
                  offices of the Company or the Subsidiary, as the case may be,
                  immediately prior to the First Event; or

                           (vii) the Company or a Subsidiary shall require that
                  the Employee travel on Company business to a substantially
                  greater extent than required immediately prior to the First
                  Event.

                  I. "Disability" shall mean the Employee's absence from his
         duties with the Company and its Subsidiaries on a full time basis for
         180 consecutive days, as a result of the Employee's incapacity due to
         physical or mental illness, unless within 30 days after written notice
         pursuant to Paragraph 8 is given following such absence, the Employee
         shall have returned to the full time performance of his duties.

                  J. "Event" shall mean the occurrence of any one or more of the
         following:

                           (i) less than a majority of the Board shall consist
                  of members of the Incumbent Board;

                           (ii) 30% or more of the then Outstanding Company
                  Common Stock or the combined voting power of the then
                  Outstanding Company Voting Securities of the Company is
                  acquired or beneficially owned (as defined in Exchange Act
                  Rule 13d-3) by any person or group (within the meaning of
                  Section 13(d)(3) or 14(d)(2) of the Exchange Act), provided,
                  however, that the following acquisitions and beneficial
                  ownership shall not constitute Events pursuant to this clause
                  (ii):

                                    (a) any acquisition or beneficial ownership
                           by the Company or a Subsidiary of the Company,

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                                    (b) any acquisition or beneficial ownership
                           by any employee benefit plan (or related trust)
                           sponsored or maintained by the Company or one or more
                           of its Subsidiaries,

                                    (c) any acquisition or beneficial ownership
                           by the Employee or any group that includes the
                           Employee, or

                                    (d) any acquisition or beneficial ownership
                           by any corporation (including without limitation an
                           acquisition of the nature described in clause
                           (J)(iii) of this Paragraph 1) with respect to which,
                           immediately following such acquisition, more than 70%
                           of, respectively, the then outstanding shares of
                           common stock of such corporation and the combined
                           voting power of the then outstanding voting
                           securities of such corporation entitled to vote
                           generally in the election of directors is then
                           beneficially owned, directly or indirectly, by all or
                           substantially all of the persons who were the
                           beneficial owners, respectively, of the Outstanding
                           Company Common Stock and the Outstanding Company
                           Voting Securities immediately prior to such
                           acquisition in substantially the same proportions as
                           their ownership, immediately prior to such
                           acquisition, of the Outstanding Company Common Stock
                           and the Outstanding Company Voting Securities, as the
                           case may be;

                           (iii) Except as provided in (d) below, the
                  shareholders of the Company approve a definitive agreement or
                  plan to

                                    (a) merge, consolidate or reorganize the
                           Company (other than (1) a merger or consolidation
                           with a Subsidiary of the Company or (2) a merger,
                           consolidation or reorganization in which all or
                           substantially all of the persons who were the
                           beneficial owners, respectively, of the Outstanding
                           Company Common Stock and the Outstanding Voting
                           Company Securities immediately prior to such merger,
                           consolidation or reorganization beneficially own,
                           directly or indirectly, immediately after the merger,
                           consolidation or reorganization, more than 70% of,
                           respectively, the then outstanding shares of common
                           stock and the combined voting power of the then
                           outstanding voting securities of such corporation
                           entitled to vote generally in the election of
                           directors, as the case may be, of the corporation
                           resulting from the merger, consolidation or
                           reorganization or its parent corporation, in
                           substantially the same proportions as their ownership
                           immediately prior to such merger, consolidation or
                           reorganization of the Outstanding Company Common
                           Stock and the Outstanding Company Voting Securities,
                           as the case may be);

                                    (b) exchange, pursuant to a statutory
                           exchange, Outstanding Company Common Stock or
                           Outstanding Company Voting Securities held by
                           shareholders of the Company immediately prior to the
                           exchange for cash, securities or other property,
                           unless all or substantially all of the persons who
                           were the beneficial owners, respectively, of the
                           Outstanding Company Common Stock and the Outstanding
                           Company Voting Securities immediately prior to such
                           statutory exchange beneficially own, directly or
                           indirectly, immediately after the statutory exchange,
                           more than 70% of, respectively, the then outstanding
                           shares of common stock and the combined voting power
                           of the then outstanding voting securities of the
                           parent corporation of the Company entitled to vote
                           generally in the election of directors, in
                           substantially the same proportions as their
                           ownership, immediately prior to the statutory
                           exchange, of the Outstanding Company Common Stock and
                           the Outstanding Company Voting Securities, as the
                           case may be; or

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                                    (c) (x) completely liquidate or dissolve the
                           Company or (y) sell or otherwise dispose of all or
                           substantially all of the assets of the Company (in
                           one or a series of transactions), other than to a
                           corporation with respect to which, immediately
                           following such sale or other disposition, more than
                           70% of, respectively, the then outstanding shares of
                           common stock of such corporation and the combined
                           voting power of the then outstanding voting
                           securities of such corporation entitled to vote
                           generally in the election of directors is then
                           beneficially owned, directly or indirectly, by all or
                           substantially all of the persons who were the
                           beneficial owners, respectively, of the Outstanding
                           Company Common Stock and the Outstanding Company
                           Voting Securities immediately prior to such sale or
                           other disposition in substantially the same
                           proportions as their ownership, immediately prior to
                           such sale or other disposition, of the Outstanding
                           Company Common Stock and the Outstanding Company
                           Voting Securities, as the case may be;

                                    (d) unless at least 30% of the common stock
                           (or the combined voting power of the voting
                           securities entitled to vote generally in the election
                           of directors or voting equity interests) of the
                           surviving corporation or its parent corporation or of
                           any corporation (or other entity) acquiring all or
                           substantially all of the assets of the Company (in
                           the case of a merger, consolidation, reorganization
                           or disposition of assets) or the Company or its
                           parent corporation (in the case of a statutory
                           exchange) is, immediately following the merger,
                           consolidation, reorganization, statutory exchange or
                           disposition of assets, beneficially owned, directly
                           or indirectly, by the Employee or a group of
                           individuals and/or entities, including the Employee,
                           acting in concert, or

                           (iv)     (a) the Company enters into a letter of
                  intent, an agreement in principle or a definitive agreement
                  relating to an Event described in clause (i), (ii) or (iii)
                  above which ultimately results in such an Event described in
                  clause (i), (ii) or (iii) hereof,

                                    (b) a tender or exchange offer or proxy
                           contest is commenced which ultimately results in an
                           Event described in clause (i), (ii) or (iii) hereof,
                           or

                                    (c) there shall be an involuntary
                           termination of the employment with the Company and
                           its Subsidiaries of the Employee or any of the events
                           which constitute a Constructive Involuntary
                           Termination of employment of the Employee has
                           occurred, and the Employee reasonably demonstrates
                           that such event (x) was requested by a party other
                           than the Board that has previously taken other steps
                           reasonably calculated to result in an Event described
                           in clause (i), (ii) or (iii) above and which
                           ultimately results in an Event described in clause
                           (i), (ii) or (iii) hereof or (y) otherwise arose in
                           connection with or in anticipation of an Event
                           described in clause (i), (ii) or (iii) above that
                           ultimately occurs.

                  K. "Exchange Act" shall mean the Securities Exchange Act of
         1934, as amended.

                  L. "First Event" shall mean the first Event to occur.

                  M. "Excise Tax" shall have the meaning set forth in Paragraph
         4.

                  N. "Gross-up Payment" shall have the meaning set forth in
         Paragraph 4 and "Payment," as used in Paragraph 4, shall have the
         meaning set forth in Paragraph 4.

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                  O. "Incumbent Board" shall mean individuals who are members of
         the Board as of the date of this Agreement, individuals whose election
         or nomination for election by the Company's shareholders was approved
         by a vote of at least a majority of the directors then comprising the
         Incumbent Board or any individual elected or appointed by the Board to
         fill vacancies on the Board caused by death or resignation (but not
         removal) or to fill newly created directorships but excluding, for this
         purpose, any such individual whose initial assumption of office occurs
         as a result of an actual or threatened election contest which was (or,
         if threatened, would have been) subject to Rule 14a-11 of the Exchange
         Act.

                  P. "Outstanding Company Common Stock" shall mean the then
         outstanding shares of common stock of the Company.

                  Q. "Outstanding Company Voting Securities" shall mean the then
         outstanding securities of the Company entitled to vote generally in the
         election of the Board.

                  R. "person" shall mean an individual, partnership,
         corporation, limited liability company, estate, trust or other entity.

                  S. "Subsidiary" shall mean a corporation, a majority of the
outstanding voting power of the outstanding securities entitled to vote
generally in an election of directors of such corporation is beneficially owned
directly or indirectly by the Company.

                  T. "Term" shall have the meaning set forth in Paragraph 14
         hereof.

                  U. "Transition Period" shall mean the two-year period
         commencing on the Commencement Date and ending on the second
         anniversary of the Commencement Date.

                  V. "Underpayment" shall have the meaning set forth in
         Paragraph 4.

         2. Employment. The Employee shall remain in the employ of the Company
or a Subsidiary for the Term of this Agreement, and during the Term the Employee
shall have such title, duties, responsibilities, assignments and authority, and
receive such remuneration and fringe benefits, as the Board or its committees or
the board of directors or a committee of the Subsidiary shall from time to time
provide for the Employee; provided, however, that either the Employee or the
Company or a Subsidiary may terminate the employment of the Employee at any time
prior to the expiration of the Term, with or without Cause and for any reason
whatever, subject to the right of the Employee to receive any payment and other
benefits that may be due pursuant to the terms and conditions of Paragraph 3 of
this Agreement (subject to Paragraph 5 of this Agreement) or, except as provided
in Paragraph 3(B), the terms of any other written employment agreement relating
to the employment of Employee by the Company or any Subsidiary.

         3. Rights to Payments Following An Event. If any Event shall occur
during the Term of this Agreement, then the Employee shall be entitled to
receive from the Company cash payments and other benefits on the following basis
(unless the Employee's employment by the Company and its Subsidiaries is
terminated voluntarily or involuntarily prior to the First Event, in which case
the Employee shall be entitled to no payment or benefits under this Paragraph
3):

                  A. If at the time of, or at any time after, the occurrence of
         the First Event and prior to the end of the Transition Period, the
         employment of the Employee with the Company and

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         its Subsidiaries is voluntarily or involuntarily terminated for any
         reason (unless such termination is a voluntary termination by the
         Employee other than a Constructive Involuntary Termination, is on
         account of the death or Disability of the Employee, or is a termination
         by the Company or a Subsidiary for Cause), the Employee (or the
         Employee's legal representative, as the case may be) shall be entitled
         to receive from the Company,

                           (i) (a) in the event of an involuntary termination,
                  at least 30 days prior written notice of termination and
                  compensation at the Employee's regular rate of compensation
                  for the 30-day period following receipt of notice of
                  termination of employment without regard to whether Employee
                  is required to perform services during such period and (b) a
                  lump sum cash payment in an amount equal to (x) two times the
                  Base Annual Salary, plus (y) in lieu of any incentive cash
                  bonus for any fiscal year or fiscal period of the Company or
                  any Subsidiary that shall not have ended prior to the
                  termination of employment of the Employee or has not commenced
                  as of the date of termination of employment of the Employee, a
                  lump sum cash payment in an amount equal to two times the
                  payment at "plan" for the Employee under the then current
                  incentive plan together with any amount equal to the payment
                  at "plan" for the Employee under the then current incentive
                  plan times the quotient of the number of days elapsed in the
                  current fiscal year through the Employee's date of termination
                  divided by 365.

                           (ii) in lieu of any further right to participate in
                  any health, dental, disability or life insurance plan or
                  program in which the Employee would otherwise be entitled to
                  participate (except, (a) to the extent required by law or (b)
                  with respect to life insurance coverage, for any coverage
                  pursuant to a split dollar insurance agreement between the
                  Employee and the Company, which split dollar insurance
                  agreement contains separate provisions applicable upon
                  termination of employment), a lump sum cash payment of
                  $18,000;

                           (iii) in lieu of any other perquisites, including
                  without limitation, fees for professional outplacement
                  services, secretarial support, office space or other
                  perquisites, a lump sum cash payment of $35,000; and

                           (iv) in lieu of any retirement contributions by the
                  Company or any Subsidiary under the FSI Pension Plan for the
                  year in which such termination occurs and for any future
                  years, a lump sum cash payment equal to 8% of the Employee's
                  Base Annual Salary unless such salary amount exceeds the cap
                  on Certified Earnings (as defined in the FSI Pension Plan)
                  contained in the FSI Pension Plan, in which case the cap
                  amount will be used.

                  B. The payments provided for in this Paragraph 3 shall be in
         addition to any salary or other remuneration otherwise payable to the
         Employee on account of employment by the Company or one or more of its
         Subsidiaries (including any amounts received prior to such termination
         of employment for personal services rendered after the occurrence of
         the First Event) but shall be reduced by any severance pay which the
         Employee receives from the Company or its Subsidiaries under any other
         policy or agreement of the Company or its Subsidiaries in the event of
         involuntary termination of the Employee's employment.

                  C. The Company also shall reimburse the Employee for all
         previously unreimbursed reasonable business expenses incurred by the
         Employee on or prior to such termination. In addition, the Company
         shall promptly pay to the Employee, as incurred, all reasonable legal
         fees and expenses incurred by the Employee as a result of such
         termination, including, but not limited to, all such fees and expenses,
         if any, incurred in contesting or disputing

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         any such termination or in seeking to obtain or enforce any right or
         benefit provided by this Agreement; provided, however, that the Company
         may recover any such legal fees and expenses of the Employee which the
         Company has paid, if it is finally judicially determined in such
         proceeding that the Employee pursued such claim or claims in bad faith
         (but in no event shall the Employee be responsible for any legal fees
         and expenses of the Company).

                  D. The Company's obligation to make the payments provided for
         in this Agreement and otherwise to perform its obligations hereunder
         shall not be affected by any set-off, counterclaim, recoupment, defense
         or other claim, right or action which the Company or any Subsidiary may
         have against the Employee or others.

                  E. The Employee shall not be required to mitigate the amount
         of any payment or other benefit provided for in Paragraph 3 or
         Paragraph 4 by seeking other employment or otherwise, nor shall the
         amount of any payment or other benefit provided for in Paragraph 3 or
         Paragraph 4 be reduced by any compensation earned by the Employee as
         the result of employment by another employer after termination, or
         otherwise.

                  F. The obligations of the Company under this Paragraph 3 and
         Paragraph 4 shall survive the termination of this Agreement and except
         as provided in Paragraph 4 shall be paid in full within ten business
         days after the Employee's termination of employment with the Company
         and its Subsidiaries.

         4. Certain Additional Payment by the Company.

                  A. Anything in this Agreement to the contrary notwithstanding,
         in the event it shall be determined that Paragraph 5 does not apply and
         that any payment or distribution by the Company or any Subsidiary to or
         for the benefit of the Employee (whether paid or payable or distributed
         or distributable pursuant to the terms of this Agreement, any stock
         option, restricted stock agreement or otherwise, but determined without
         regard to any additional payments required under this Paragraph 4) (a
         "Payment") would be subject to the excise tax imposed by Section 4999
         of the Code or any interest or penalties are incurred by the Employee
         with respect to such excise tax (such excise tax, together with any
         such interest and penalties, are hereinafter collectively referred to
         as the "Excise Tax"), then the Employee shall be entitled to receive an
         additional payment (a "Gross-Up Payment") in an amount such that after
         payment by the Employee of all taxes (including any interest or
         penalties imposed with respect to such taxes), including, without
         limitation, any income taxes (and any interest and penalties imposed
         with respect thereto) and Excise Tax imposed upon the Gross-Up Payment,
         the Employee retains an amount of the Gross-Up Payment equal to the
         Excise Tax imposed upon the Payment.

                  B. Subject to the provisions of Paragraph 4(C), all
         determinations required to be made under this Paragraph 4, including
         whether and when a Gross-Up Payment is required and the amount of such
         Gross-Up Payment and the assumptions to be utilized in arriving at such
         determination, shall be made by KPMG Peat Marwick LLP ("KPMG") or such
         other nationally recognized certified public accounting firm as may be
         designated by the Employee and reasonably acceptable to the Company if
         KPMG is unable to render such services (the "Accounting Firm"), which
         Accounting Firm shall provide detailed supporting calculations both to
         the Company and the Employee within 15 business days of the receipt by
         the Accounting Firm of notice from the Employee that there has been a
         Payment, or such earlier time as is requested by the Company. In the
         event that the Accounting Firm is serving as accountant or auditor for
         the person effecting

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         the Event, the Employee shall appoint another nationally recognized
         accounting firm reasonably acceptable to the Company to make the
         determinations required hereunder (which accounting firm shall then be
         referred to as the Accounting Firm hereunder). All fees and expenses of
         the Accounting Firm shall be borne solely by the Company. Any Gross-Up
         Payment, as determined pursuant to this Paragraph 4, shall be paid by
         the Company to the Employee within ten business days of the receipt of
         the Accounting Firm's determination. If the Accounting Firm determines
         that no Excise Tax is payable by the Employee, it shall furnish the
         Employee with a written opinion that failure to report the Excise Tax
         on the Employee's applicable federal income tax return would not result
         in the imposition of the negligence or similar penalty. Any
         determination by the Accounting Firm shall be binding upon the Company
         and the Employee. As result of the uncertainty in the application of
         Section 4999 of the Code at the time of the initial determination by
         the Accounting Firm hereunder, it is possible that Gross-Up Payments
         which will not have been made by the Company should have been made
         ("Underpayment"), consistent with the calculations required to be made
         hereunder. In the event that the Company exhausts its remedies pursuant
         to Paragraph 4(C) and the Employee thereafter is required to make a
         payment of an Excise Tax, the Accounting Firm shall determine the
         amount of the Underpayment that has occurred and any such Underpayment
         together with all penalties and interest related thereto shall be
         promptly paid by the Company to or for the benefit of the Employee.

                  C. The Employee shall notify the Company in writing of any
         claim by the Internal Revenue Service that, if successful, would
         require the payment by the Company of the Gross-Up Payment. Such
         notification shall be given as soon as practicable but no later than
         ten business days after the Employee is informed in writing of such
         claim (provided that any delay in so informing the Company within such
         ten business day period shall not affect the obligations of the Company
         under this Paragraph 4 except to the extent that such delay materially
         and adversely affects the Company) and shall apprise the Company of the
         nature of such claim and the date on which such claim is required to be
         paid. The Employee shall not pay such claim prior to the expiration of
         the 30-day period following the date on which it gives such notice to
         the Company (or such shorter period ending on the date that any payment
         of taxes with respect to such claim is due). If the Company notifies
         the Employee in writing prior to the expiration of such period that it
         desires to contest such claim, the Employee shall:

                           (i) give the Company any information reasonably
                  requested by the Company relating to such claim,

                           (ii) take such action in connection with contesting
                  such claim as the Company shall reasonably request in writing
                  from time to time, including, without limitation, accepting
                  legal representation with respect to such claim by an attorney
                  reasonably selected by the Company,

                           (iii) cooperate with the Company in good faith in
                  order to effectively contest such claim, and

                           (iv) permit the Company to participate in any
                  proceedings relating to such claim;

         provided, however, that the Company shall bear and pay directly all
         costs and expenses (including additional interest and penalties)
         incurred in connection with such contest and shall indemnify and hold
         the Employee harmless, on an after-tax basis, for any Excise Tax or
         income tax (including

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         interest and penalties with respect thereto) imposed as a result of
         such representation and payment of costs and expenses including
         reasonable attorneys' fees. Without limitation on the foregoing
         provisions of this Paragraph 4(C), the Company shall control all
         proceedings taken in connection with such contest and, at its sole
         option, may pursue or forgo any and all administrative appeals,
         proceedings, hearings and conferences with the taxing authority in
         respect of such claim and may, at its sole option, either direct the
         Employee to pay the tax claimed and sue for a refund or contest the
         claim in any permissible manner, and the Employee agrees to prosecute
         such contest to a determination before any administrative tribunal, in
         a court of initial jurisdiction and in one or more appellate courts, as
         the Company shall determine; provided, however, that if the Company
         directs the Employee to pay such claim and sue for a refund, the
         Company shall advance the amount of such payment to the Employee, on an
         interest-free basis, and shall indemnify and hold the Employee
         harmless, on an after-tax basis, from any Excise Tax or income tax
         (including interest or penalties with respect thereto) imposed with
         respect to such advance or with respect to any imputed income with
         respect to such advance; and further provided that any extension of the
         statute of limitations relating to payment of taxes for the taxable
         year of the Employee with respect to which such contested amount is
         claimed to be due is limited solely to such contested amount.
         Furthermore, the Company's control of the contest shall be limited to
         issues with respect to which a Gross-Up Payment would be payable
         hereunder and the Employee shall be entitled to settle or contest, as
         the case may be, any other issue raised by the Internal Revenue Service
         or any other taxing authority.

                  D. If, after the receipt by the Employee of an amount advanced
         by the Company pursuant to Paragraph 4(C), the Employee becomes
         entitled to receive any refund with respect to such claim, the Employee
         shall (subject to the Company's complying with the requirements of
         Paragraph 4(C)) promptly pay to the Company the amount of such refund
         (together with any interest paid or credited thereon after taxes
         applicable thereto). If, after the receipt by the Employee of an amount
         advanced by the Company pursuant to Paragraph 4(C), a determination is
         made that the Employee shall not be entitled to any refund with respect
         to such claim and the Company does not notify the Employee in writing
         of its intent to contest such denial of refund prior to the expiration
         of 30 days after such determination, then such advance shall be
         forgiven and shall not be required to be repaid and the amount of such
         advance shall offset, to the extent thereof, the amount of Gross-Up
         Payment required to be paid.

         5. Possible Payment Reduction. Notwithstanding any provision to the
contrary contained herein except the last sentence of this Paragraph 5, if the
lump sum cash payments due and the other benefits to which the Employee shall
become entitled under Paragraph 3 hereof, either alone or together with other
payments in the nature of compensation to the Employee which are contingent on a
change in the ownership or effective control of the Company or in the ownership
of a substantial portion of the assets of the Company or otherwise, would equal
or exceed, by less than $25,000, three times the Employee's "base amount" as
defined in Section 280G of the Code or any successor provision thereto, then in
such case such lump sum payment and/or such other benefits and payments shall be
reduced to the largest aggregate amount as will result in no portion thereof
being subject to the excise tax imposed under Section 4999 of the Code (or any
successor provision thereto) or being non-deductible to the Company for federal
income tax purposes pursuant to Section 280G of the Code (or any successor
provision thereto). The Employee in good faith shall determine the amount of any
reduction to be made pursuant to this Paragraph 5 and shall select from among
the foregoing benefits and payments those which shall be reduced. No
modification of, or successor provision to, Section 280G or Section 4999
subsequent to the date of this Agreement shall, however, reduce

                                                                              10
<PAGE>   11

the benefits to which the Employee would be entitled under this Agreement in the
absence of this Section 5 to a greater extent than they would have been reduced
if Section 280G and Section 4999 had not been modified or superseded subsequent
to the date of this Agreement, notwithstanding anything to the contrary provided
in the first sentence of this Paragraph 5.

         6. Successors and Assigns.

                  A. This Agreement shall be binding upon and inure to the
         benefit of the successors, legal representatives and assigns of the
         parties hereto; provided, however, that the Employee shall not have any
         right to assign, pledge or otherwise dispose of or transfer any
         interest in this Agreement or any payments hereunder, whether directly
         or indirectly or in whole or in part, without the written consent of
         the Company.

                  B. The Company will require any successor (whether direct or
         indirect, by purchase of a majority of the Outstanding Company Voting
         Securities or all or substantially all of the assets of the Company, or
         by merger, consolidation, reorganization or otherwise), by agreement in
         form and substance satisfactory to the Employee, to assume expressly
         and agree to perform this Agreement in the same manner and to the same
         extent that the Company would be required to perform it if no such
         succession had taken place. Failure of the Company to obtain such
         agreement prior to the effectiveness of any such succession (other than
         in the case of a merger or consolidation) shall be a breach of this
         Agreement and shall entitle the Employee to compensation from the
         Company in the same amount and on the same terms as the Employee would
         be entitled hereunder if the Employee terminated his employment on
         account of a Constructive Involuntary Termination, except that for
         purposes of implementing the foregoing, the date on which any such
         succession becomes effective shall be deemed the date of termination.

         7. Governing Law. This Agreement shall be construed in accordance with
the laws of the State of Minnesota without regard to conflict of laws
principles.

         8. Notices. All notices, requests and demands given to or made pursuant
hereto shall be in writing and shall be delivered or mailed to any such party at
its address which:

         A. In the case of the Company shall be:

                  FSI International, Inc.
                  322 Lake Hazeltine Drive
                  Chaska, Minnesota 55318-1096
                  Attention: Vice President, Administration

         (B) In the case of the Employee shall be:

                  Donald S. Mitchell
                  FSI International, Inc.
                  322 Lake Hazeltine Drive
                  Chaska, MN 55318-1096

Either party may, by notice hereunder, designate a changed address. Any notice,
if mailed properly addressed, postage prepaid, registered or certified mail,
shall be deemed to have been given on the registered date or that date stamped
on the certified mail receipt.

                                                                              11
<PAGE>   12

         9. Severability; Severance. In the event that any portion of this
Agreement is held to be invalid or unenforceable for any reason, it is hereby
agreed that such invalidity or unenforceability shall not affect the other
portions of this Agreement and that the remaining covenants, terms and
conditions or portions hereof shall remain in full force and effect, and any
court of competent jurisdiction may so modify the objectionable provision as to
make it valid, reasonable and enforceable. If the payments under the Agreement
are deemed unavailable as a matter of law, the Employee is entitled to severance
benefits at least as favorable as those made available by the Company to
employees of comparable position and seniority during the twelve (12) months
prior to the occurrence of the Event triggering payment obligations under the
Agreement.

         10. Employment Tax Withholding. The Company may withhold from any
compensation or benefits payable under this Agreement all federal, state, city
or other income and employment taxes that are required to be withheld pursuant
to any law or governmental regulation or ruling.

         11. Non-Disposition of Payments. Employee may not encumber or dispose
of any payment under this Agreement, which payments and the rights to such
payments are expressly declared nonassignable or nontransferable, except as
otherwise specifically provided in this Agreement.

         12. Titles. The titles and headings preceding the text of the
Paragraphs of this Agreement have been inserted solely for convenience of
reference and do not constitute a part of this Agreement or affect its meaning,
interpretation or effect.

         13. Waiver. No provision hereof may be altered, amended, modified or
waived in any way whatsoever, except by written agreement executed by both the
Company and the Employee. The failure of either party to insist in any one or
more instances upon performance of any terms or conditions of this Agreement
will not be construed as a waiver of future performance of any such term,
covenant, or condition and the obligations of either party with respect to such
term, covenant or condition will continue in full force and effect.

         14. Term. This Agreement shall commence on the date of this Agreement
and shall terminate, and the Term of this Agreement shall end, on the later of
(A) December 31, 2003, provided that such period shall be automatically extended
for one year and from year to year thereafter until notice of termination is
given by the Employer or the Employee to the other party hereto at least 90 days
prior to December 31, 2003 or the one-year extension period then in effect, as
the case may be, or (B) if the Commencement Date occurs on or prior to December
31, 2003 (or prior to the end of the extension year then in effect as provided
for in clause (A) hereof), the second anniversary of the Commencement Date.

         15. Termination of Employment with the Company and its Subsidiaries.
References in this Agreement to "termination of employment with the Company and
its Subsidiaries" or words of similar import mean that the employment of the
Employee with whichever of the Company and one or more of the Subsidiaries that
shall have employed the Employee immediately prior to the termination shall have
been terminated.

         16. Superseded Agreement. This Agreement supersedes in all respects the
Management Agreement between the Employee and the Company dated as December 13,
1999,

                                                                              12
<PAGE>   13

(the "Superseded Change in Control Agreement"), which Superseded Change in
Control Agreement is hereby terminated and shall be of no further force.

         17. Indemnification. All rights to indemnification, expense advancement
and exculpation existing in favor of the Employee at the time of the occurrence
of the First Event as provided in the Articles of Incorporation or Bylaws of the
Company or any Subsidiaries or by law shall continue until the end of the
Transition Period.

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

EMPLOYEE                               FSI INTERNATIONAL, INC.

                                       By: s/ Mark Ahmann
                                          --------------------------------------

/s/ Donald S. Mitchell                 Its: VP of Administration
----------------------------               -------------------------------------
Donald S. Mitchell

                                                                              13<PAGE>   1
                                                                    EXHIBIT 10.1

                                December 26, 2000

Prestolite Electric Incorporated
2311 Green Road
Suite B
Ann Arbor, Michigan  48105

Ladies and Gentlemen:

         Reference is hereby made to the $3,500,000 Master Revolving Note dated
as of the date hereof from Prestolite Electric Incorporated ("Company") as maker
to Comerica Bank ("Bank") as payee ("$3,500,000 Note"). This letter will
constitute our agreement that the $3,500,000 Note is intended to establish for
Company's account (a) a letter of credit facility pursuant to which Bank will,
from time to time until January 31, 2002, issue standby or commercial letters of
credit for the account of Company in an aggregate face amount not to exceed
$3,500,000 at any time outstanding, and (b) a loan facility pursuant to which
Bank will, from time to time until January 31, 2002, made advances under the
$3,500,000 Note in an amount not to exceed $1,500,000 at any time outstanding
(so long as the sum of the aggregate amount of outstanding advances under the
$3,500,000 Note and the face amount of all outstanding letter of credit issued
pursuant to this letter at no time exceeds $3,500,000); provided, however, that
the sum of the aggregate amount of advances outstanding under the $5,000,000
Master Revolving Note dated September 29, 2000 from Company as maker to Bank as
payee (together with the $3,500,000 Note, the "Notes") and the $3,500,000 Note
plus the aggregate face amount of all outstanding letters of credit issued
pursuant to this letter plus the aggregate face amount of all outstanding
letters of credit issued for the account of Company pursuant to the $5,000,000
letter agreement dated as of date hereof between Company and Bank shall never
exceed the lesser of $8,500,000 or the advance formula as determined in the
Advance Formula Agreement dated as of the date hereof between Company and Bank;
provided further, that no letter of credit shall, by its terms, have an
expiration date which extends beyond the later to occur of one year after
issuance or January 31, 2002; and provided further, that in the event Bank
agrees to issue any letter of credit having an expiration later than January 31,
2002, Company shall deliver to Bank on demand cash collateral in an amount equal
to the maximum undrawn amount of such letter of credit. The issuance of any
letters of credit shall be subject to the terms and conditions of any letter of
credit applications and agreements executed and delivered by the Company to the
Bank with respect thereto. The Company shall pay to the Bank annually in advance
a fee of two percent (2%) per annum of the face amount of each such letter of
credit. No letter of credit shall be issued during the continuance of a Default
under either of the Notes.

<PAGE>   2

         This letter agreement amends and restates in its entirety a letter
agreement dated September 29, 2000 pertaining to the initial establishment of a
$2,000,000 letter of credit facility as specified therein.

         If the foregoing clearly sets forth our understanding regarding these
matters, please sign this letter were indicated and return it to me.

                                                     Very truly yours,

                                                     Peggy A. Cummins

Acknowledged and agreed to as of the date set
forth above:

PRESTOLITE ELECTRIC INCORPORATED

By:  ____________________________________

Its: ____________________________________

By:  ____________________________________

Its: ____________________________________

                           REAFFIRMATION OF GUARANTY

         The undersigned reaffirms and ratifies all of its obligations to the
Bank under or in respect of the Guaranty dated October 25, 1994, executed and
delivered by the undersigned to the Bank.

                                      PRESTOLITE ELECTRIC HOLDING, INC.

                                      By: _____________________________________

                                      Its:
                                          _____________________________________

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