Document:

Exhibit 10.2

 

RETENTION/TRANSACTION BONUS AGREEMENT

 

This Retention/Transaction Bonus Agreement (“Agreement”), effective as of August 27, 2013, is made by and between Lynn L. Blake (hereinafter “Ms. Blake” or the “CFO”) and Analysts International Corporation (hereinafter “AIC” or the “Company”).  In consideration of the mutual promises made herein, the Company and the CFO agree as follows.

 

RECITALS

 

WHEREAS, over the course of the past few months a Special Committee of the Company’s Board of Directors has engaged in the process of considering various strategic alternatives, including a possible sale of the Company;

 

WHEREAS, following extensive due diligence and negotiations, the Board of Directors of the Company, acting upon the recommendation of the Special Committee, has this date unanimously approved a definitive Agreement and Plan of Merger (“Merger Agreement”) with American CyberSystems, Inc., a Georgia corporation (“Parent”) and ACS Merger Corp., a Minnesota corporation and a wholly owned subsidiary of Parent (“Merger Sub”), having determined that the transactions contemplated thereby are fair to and in the best interests of the Company and its shareholders;

 

WHEREAS, the Merger Agreement provides, among other things, that Parent will cause Merger Sub to commence a cash tender offer (the “Offer”) to purchase all the Shares of common stock, par value $0.10 per share, of the Company at a price per Share of $6.45, net to seller (such amount, or any higher amount per share paid pursuant to the Offer in accordance with the Merger Agreement, the “Offer Price”);

 

WHEREAS, the Board of Directors of the Company expects that, following consummation of the Offer, subject to the terms and conditions of the Merger Agreement, the Merger will occur, with AIC surviving the Merger as a wholly owned subsidiary of Parent and, further, that the shares of any existing shareholder of the Company that did not tender their shares of common stock in the Offer will be cancelled and converted in the Merger into the right to receive cash in an amount equal to the Offer Price, which as of the date hereof, reflects a premium to the price at which AIC’s common stock traded prior to announcement of the Merger Agreement;

 

WHEREAS, through continued dedication, commitment and focus throughout the process Ms. Blake has played a key role in the Company’s consideration of various strategic alternatives, leading up to execution of the Merger Agreement; and

 

WHEREAS, at its meetings in June and July of 2013 the Compensation Committee of the Board of Directors recognized the importance of retaining Ms. Blake during the process of exploring strategic alternatives and ensuring her dedication, commitment and focus throughout the process, and to that end expressed its intention to grant a retention/transaction bonus to Ms. Blake to be payable in connection with (and subject to) the final closing of a merger transaction reflecting a sale of the Company.

 

NOW, THERFORE, the Company and Ms. Blake agree as follows.

 

1.             Payment of Retention/Transaction Bonus.  The Company shall pay Ms. Blake a Retention/Transaction Bonus under the terms and conditions set forth in this Agreement.  Any Retention/Transaction Bonus paid to Ms. Blake shall be in addition to any other compensation and/or benefit plans to which the CFO may otherwise be entitled.

 

2.             Retention Period.  The “Retention Period” shall begin on the effective date of this Agreement (August 27, 2013) and shall end upon the Closing of the Merger.

 

 

3.             Amount of Retention/Transaction Bonus Payable.  Subject only to the conditions that (a) the CFO remains employed during the entire Retention Period and (b) the Merger is consummated as evidenced by a Closing of the Merger, the Company shall pay to the CFO an amount calculated according to the formula presented in Section 4 of this Agreement.  Based on an Offer Price of $6.45, the amount of $74,900 would be paid as a Retention/Transaction Bonus.  The Retention/Transaction Bonus shall be paid in a single lump sum at the Closing of the Merger and shall be subject to standard withholdings.  This Agreement and the payment of any Retention/Transaction Bonus shall have no effect on any severance provided for in any employment agreement between the CFO and the Company or any Change in Control Severance Pay Plan in which the CFO participates.

 

4.             Adjustment in Amount of Retention/Transaction Bonus Payable.  In accordance with the expressed intention of the Company’s Compensation Committee, the amount of the Retention/Transaction Bonus assumes an Offer Price of $6.45 per Share.  Should the Offer Price at Closing be anything other than $6.45 per Share, then the amount of the Retention/Transaction Bonus payable shall be determined in accordance with the following formula:

 

Bonus = PRB * Target Value

PRB = 25 + 83.333(SP-6.05)

 

Where “PRB” means percentage of “Target Value,” “SP” means the per Share consideration payable to the shareholders generally upon the Closing of the Merger and “Target Value” means $128,400.  No retention bonus shall be payable if SP is less than $6.05.  The maximum amount that can be paid under this Agreement is $128,400.

 

5.             Defined Terms.  The following capitalized terms in this Agreement shall have the meanings ascribed to them in the Merger Agreement: Closing, Merger, and Share.

 

6.             Entire Agreement.  This Agreement constitutes the entire agreement of the parties with regard to the Retention/Transaction Bonus.  The Recitals hereinabove are true and correct and are part of this Agreement.  Any modification of this Agreement will be effective only if it is in writing and signed by each party whose rights are affected.  However, the provisions of this Agreement shall not supersede or modify the provisions of any employment agreement, confidentiality agreement or plan maintained by the Company in which the CFO participates (including but not limited to any Change in Control Severance Pay Plan).  This Agreement does not supersede, replace or limit the rights and obligations of the Company and CFO with respect to matters imposed by law or other agreements.  The headings in this Agreement are intended solely for the convenience of reference and should be given no effect in the construction or interpretation of this Agreement.  Should any provision of this Agreement be held by a court of competent jurisdiction to be invalid, void or unenforceable, the remaining provisions shall be unaffected and shall continue in full force and effect, and the invalid, void or unenforceable provision(s) shall be deemed not to be part of this Agreement.

 

7.             Governing Law.  This Agreement will be governed by and construed in accordance with the laws of the State of Minnesota, as such laws are applied to agreements entered into and to be performed entirely within Minnesota between Minnesota residents.

 

2

 

IN WITNESS WHEREOF, the parties have executed this Retention/Transaction Bonus Agreement by their signatures below:

 

	
Analysts International Corporation
    	
Lynn   L. Blake
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
/s/   Brittany B. McKinney
    	
 
    	
By: 
    	
/s/   Lynn L. Blake
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
President   and CEO
    	
 
    	
Date signed: August 27, 2013
    
	
 
    	
 
    
	
Date signed: August 27, 2013
    	
 
    

 

3Exhibit 10.3

 

AMENDMENT NUMBER ONE

TO THE ANALYSTS INTERNATIONAL CORPORATION CHANGE IN CONTROL SEVERANCE PAY PLAN

 

WHEREAS, Section 5.2 of the Analysts International Corporation Change in Control Severance Pay Plan (the “Plan”), reserves to the Board of Analysts International Corporation (the “Company”) the power to amend the Plan prior to the date of a Change in Control (as defined in the Plan);

 

WHEREAS, the Board desires to amend the Plan, effective August 27, 2013, to delete Section 4.3 in its entirety so that all non-competition agreements (or non-competition provisions within other agreements) that restrict the activities of an Eligible Participant (as defined in the Plan) are not automatically terminated upon the termination of an Eligible Participant’s employment with the Company in connection with a Change in Control; and

 

WHEREAS, the Board approved this Amendment Number One at a meeting of the Board held on August 27, 2013 and authorized officers of the Company to execute this Amendment Number One.

 

NOW, THEREFORE, BE IT RESOLVED, that the Company hereby amends the Plan as follows:

 

1.             Effective August 27, 2013, Section 4.3 of the Plan is deleted in its entirety and the words “Intentionally Omitted” are added to Section 4.3 of the Plan to replace the deleted text.

 

2.             Except as expressly amended by this Amendment Number One, the provisions of the Plan shall remain in full force and effect.

 

IN WITNESS WHEREOF, the Company has caused this Amendment Number One to be signed by its duly authorized officers, effective as of the date set forth herein.

 

	
 
    	
Analysts International Corporation
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Brittany McKinney
    
	
 
    	
 
    	
 
    
	
 
    	
Name: 
    	
Brittany McKinney
    
	
 
    	
Title: 
    	
Chief Executive Officer
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Lynn Blake
    
	
 
    	
 
    	
 
    
	
 
    	
Name: 
    	
Lynn Blake
    
	
 
    	
Title: 
    	
Chief Financial OfficerExhibit 10.1

	
  

  	
  Exhibit 10.1
  June 1, 2012 David Serxner TRAC IntermodalTM 211 College Road East Princeton,
  NJ 08540 Re: Severance Entitlement Dear David: This letter agreement (“Letter
  Agreement”), entered into effective as of the date hereof by you and Interpool,
  Inc. d/b/a TRAC Intermodal (the “Company”), sets forth the mutual
  understanding between you and the Company regarding severance in the event
  that the Company terminates your employment without Cause. Reference is made
  to the Management Shareholder Agreement, dated as of June 1, 2012, entered
  into by and between the Company, Seacastle Inc., SCT Chassis Inc. and you
  (the “Shareholder Agreement”). Capitalized terms used in this Letter
  Agreement and not otherwise defined herein have the meanings assigned to them
  in the Shareholder Agreement. In consideration of the mutual promises,
  covenants and agreements contained herein and in the Shareholder Agreement,
  together with other good and valuable consideration, the receipt of which is
  hereby acknowledged, the parties hereto do hereby agree as follows: 1.
  Certain Terms of Employment. This Letter Agreement is not a contract of
  employment. Your employment with the Company is “at will” and may be
  terminated by you or the Company at any time for any reason or no reason
  whatsoever. 2. Termination without Cause. Your employment may be terminated
  by the Company at any time without Cause, effective either: (i) thirty (30)
  days following the date on which a written notice to such effect is delivered
  to you or, (ii) at the election of the Company in its sole discretion, such
  earlier date as is reasonably designated by the Company, provided that the
  Company shall continue to pay your current base salary for thirty (30) days
  following such notice of termination (in eitiier the case of clauses (i) or
  (ii) above, the effective date of your termination is the “Termination
  Date”). In the event that (A) other than for death or Disability, your
  employment is terminated by the Company without Cause, and (B) you execute
  and do not revoke a Release within sixty (60) days following your Termination
  Date, you shall be entitled to receive, provided that you do not materially
  breach any term or condition contained in the Shareholder Agreement
  (including without limitation in Sections 5 and 6 thereof): (a) an amount in
  cash equal to one (1) year of your annual base salary in effect on the
  Termination Date to be paid to you in equal installments in accordance with
  the regular payroll practices of the Company over a twelve (12) month period
  commencing on the first payroll date following the date the Release becomes
  effective in accordance with its terms TRAC Intermodal 1 211 College Road
  East Princeton, NJ 08540 t. 609.452.8900 f. 609.452.8211

  

 

	
  

  	
  (the “First
  Payment Date”“), with the first payment to consist of all amounts payable to
  you pursuant to this Letter Agreement between the Termination Date and the
  First Payment Date; and (b) an amount in cash equal to the annual bonus paid
  to you in respect of the most recently completed fiscal year prior to the
  Termination Date, multiplied by a fraction, the numerator of which is the
  number of calendar days that you were employed by the Company during the year
  in which the Termination Date occurred and the denominator of which is 365,
  which amount shall be payable to you in a lump sum payment in accordance with
  the regular payroll practices of the Company on or around the time that
  employees of the Company receive bonuses in respect of the fiscal year during
  which the Termination Date occurred. Anything to the contrary in this Section
  2 notwithstanding, if the sixty (60) day period referenced above begins in
  one taxable year and ends in the subsequent taxable year, the First Payment
  Date shall in all events occur in the subsequent taxable year. 3. Section 409A.
  The intent of the parties is that payments and benefits under this Letter
  Agreement comply with Section 409A of the Internal Revenue Code of 1986, as
  amended (the “Code”), to the extent subject thereto, and accordingly, to the
  maximum extent permitted, this Letter Agreement shall be interpreted and
  administered to be in compliance therewith. Notwithstanding anything
  contained herein to the contrary, you shall not be considered to have
  terminated employment with the Company for purposes of any payments under
  this Letter Agreement which are subject to Section 409A of the Code until you
  have incurred a “separation from service” from the Company within the meaning
  of Section 409A of the Code. Each amount to be paid or benefit to be provided
  under this Letter Agreement shall be construed as a separate identified
  payment for purposes of Section 409A of the Code. The Company makes no
  representation that any or all of the payments described in this Letter
  Agreement will be exempt from or comply with Section 409 A of the Code and
  makes no undertaking to preclude Section 409 A of the Code from applying to
  any such payment. 4. Entire Agreement. This Letter Agreement sets forth the
  entire agreement between the parties hereto and fully supersedes any prior or
  contemporaneous agreements, term sheets, representations and understandings
  between the parties with respect to the subject matter hereof, including
  without limitation any “Summary of Employment Terms” that was provided to you
  by the Company or an affiliate of the Company in connection with your
  commencement of employment with the Company, whether written or oral, which
  in each case shall be of no further force or effect as of the date of this
  Letter Agreement. This Letter Agreement may be modified only in a document
  signed by the parties and referring explicitly to this Letter Agreement. Each
  party acknowledges that such party has not relied on any representations,
  promises or agreements of any kind made to such party in connection with the
  other party’s decision to enter into this Letter Agreement, except for those
  set forth in this Letter Agreement. [signature page to follow] 2

  

 

	
  

  	
  This Letter
  Agreement may be signed in counterparts, each of which shall be an original,
  with the same effect as if the signatures thereto and hereto were upon the
  same instrument. This Letter Agreement may be amended or modified only in
  writing signed by both parties hereto. Very truly yours, INTERPOOL, INC. By:
  /s/ Keith Lovetro Name: Keith Lovetro Title: President & CEO Accepted and
  agreed to as of the date set forth above: /s/ David Serxner David Serxner 3

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