Document:

Exhibit 4.1

 

AMENDMENT NO. 2 TO AMENDED AND RESTATED RIGHTS AGREEMENT

 

This Amendment No. 2, dated as of August 27, 2013, between Analysts International Corporation, a Minnesota corporation (the “Company”), and Wells Fargo Bank, N.A. as Rights Agent (the “Rights Agent”), is to the Amended and Restated Rights Agreement, dated as of February 27, 2008, between the Company and the Rights Agent, as amended (the “Rights Agreement”). Capitalized terms used herein and not otherwise defined shall have the meaning given to them in the Rights Agreement.

 

Recitals

 

A.            This Amendment is entered into in connection with the Agreement and Plan of Merger, dated as of the date hereof (as it may be amended or supplemented from time to time, the “Merger Agreement”), by and among American CyberSystems, Inc., a Georgia corporation (“Parent”), ACS Merger Corp., a Minnesota corporation and wholly owned subsidiary of Parent (“Merger Sub”), and the Company, with respect to a tender offer to acquire the Common Shares of the Company by Parent and Merger Sub (the “Offer”) and the subsequent merger of Merger Sub with and into the Company (the “Merger”).

 

B.            The Company and the Rights Agent have executed and entered into the Rights Agreement.

 

C.            The Company and the Rights Agent have executed and entered into Amendment No. 1 to the Rights Agreement, dated as of May 25, 2010 (“Amendment No. 1”).

 

D.            Pursuant to Section 27 of the Rights Agreement, the Company may from time to time supplement or amend the Rights Agreement in accordance with the provisions of such Section.

 

E.            No Right Certificates are outstanding under the Rights Agreement.

 

F.             The Board of Directors of the Company (the “Board of Directors”) has determined that the Merger Agreement and the transactions contemplated thereby, including the Offer and the Merger, are fair to, advisable, and in the best interests of the Company and its shareholders.

 

G.            To induce Parent and Merger Sub to enter into the Merger Agreement, the Board of Directors has determined that it is in the best interests of the Company and its shareholders to amend the Rights Agreement to exempt the execution and delivery of the Merger Agreement, the consummation of the Offer, the Merger and the other transactions contemplated by the Merger Agreement from the application of the Rights Agreement.

 

Amendment

 

This Amendment amends the Rights Agreement as follows:

 

 

1.              The following sentence is added to the end of the definition of “Acquiring Person” in Section 1(a) of the Rights Agreement:

 

Notwithstanding anything in this Agreement to the contrary, neither American CyberSystems, Inc., a Georgia corporation (“Parent”), nor any direct or indirect wholly owned subsidiary of Parent shall be deemed to be an Acquiring Person solely as a result of the execution and delivery of the Agreement and Plan of Merger, dated as of August 27, 2013, among Parent, ACS Merger Corp., a Minnesota corporation and wholly-owned subsidiary of Parent (“Merger Sub”), and the Company (as such agreement may be amended from time to time, the “Merger Agreement”), or the consummation of (i) the tender offer to acquire the Common Shares of the Company by Parent and Merger Sub (the “Offer”), (ii) the merger (the “Merger”), or (iii) any of the other transactions contemplated by the Merger Agreement.

 

2.              Section 7(a) of the Rights Agreement is amended in its entirety to read as follows:

 

(a)           The registered holder of any Right Certificate may exercise the Rights evidenced thereby (except as otherwise provided herein) in whole or in part at any time after the Distribution Date upon surrender of the Right Certificate, with the form of election to purchase on the reverse side thereof duly executed, to the Rights Agent at the principal offices of the Rights Agent, together with payment of the Purchase Price for each Common Share as to which the Rights are exercised, at or prior to the earliest of (i) the close of business on February 17, 2018 (the “Final Expiration Date”), (ii) the time at which the Rights are redeemed as provided in Section 23 hereof (the “Redemption Date”), (iii) the time at which such Rights are exchanged as provided in Section 24 hereof, or (iv) the time immediately prior to the effective time of the Merger.

 

3.              The following sentence is added at the end of Section 15 of the Rights Agreement:

 

Nothing in this Agreement shall be construed to give any holder of Rights or any other Person any legal or equitable rights, remedy or claim under this Agreement in connection with the execution and delivery of the Merger Agreement, the consummation of the Offer or the Merger or any of the other transactions contemplated by the Merger Agreement.

 

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4.              New Section 35 is added to the end of the Rights Agreement to read in its entirety as follows:

 

Section 35.  Merger Agreement.  Notwithstanding any other provision of this Agreement, none of the execution and delivery of the Merger Agreement, or the consummation of Offer or the Merger or any of the other transactions contemplated by the Merger Agreement, shall result in a Distribution Date or a Shares Acquisition Date or in any way permit any Rights to be exercised pursuant to Section 11(a)(ii), Section 13, or otherwise for any capital stock, cash, property or other consideration or exchanged pursuant to Section 24, nor will such execution and delivery of the Merger Agreement, or the consummation of the Offer or the Merger or any of the other transactions contemplated by the Merger Agreement, result in any separation of the Rights from the underlying Common Shares or require or permit the Rights to be evidenced by, or to be transferable pursuant to, Right Certificates separate from certificates for the Common Shares or the Company, nor entitle or permit the holders of the Rights to exercise the Rights or otherwise increase the rights of, or grant any rights to, the holders of the Rights, including giving the holders of the Rights the right to acquire any capital stock, cash or other property of any party to the Merger Agreement or any affiliate of Parent or Merger Sub.  Notwithstanding any other provision of this Agreement, this Agreement shall be inapplicable to the execution and delivery of the Merger Agreement or the consummation of the Offer or the Merger or any of the other transactions contemplated by the Merger Agreement, and all Rights issued and outstanding under this Agreement shall expire immediately prior to the effective time of the Merger.

 

5.              This Amendment may be executed in any number of counterparts, each of which shall be deemed an original, but such counterparts shall together constitute the same instrument.

 

6.              This Amendment shall be deemed to be a contract made under the laws of the State of Minnesota and for all purposes shall be governed by and construed in accordance with the laws of such State applicable to contracts to be made and performed entirely within such State.

 

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IN WITNESS WHEREOF, this Amendment has been duly executed by the Company and the Rights Agent as of the date first written above.

 

	
 
    	
ANALYSTS   INTERNATIONAL CORPORATION
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Brittany B. McKinney
    
	
 
    	
 
    	
Name:   
    	
Brittany   B. McKinney
    
	
 
    	
 
    	
Title:   
    	
President   and Chief Executive Officer
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
WELLS   FARGO BANK, N.A.
    
	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By:   
    	
/s/   Patti Boyd
    
	
 
    	
 
    	
Name:   
    	
Patti   Boyd
    
	
 
    	
 
    	
Title:   
    	
Assistant   Vice PresidentExhibit 10.1

 

RETENTION/TRANSACTION BONUS AGREEMENT

 

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

 

1.             Payment of Retention/Transaction Bonus.  The Company shall pay Ms. McKinney a Retention/Transaction Bonus under the terms and conditions set forth in this Agreement.  Any Retention/Transaction Bonus paid to Ms. McKinney shall be in addition to any other compensation and/or benefit plans to which the CEO 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 CEO 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 CEO 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 $149,800 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 CEO and the Company or any Change in Control Severance Pay Plan in which the CEO 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 $256,800.  No retention bonus shall be payable if SP is less than $6.05.  The maximum amount that can be paid under this Agreement is $256,800.

 

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 CEO 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 CEO 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.

 

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

 

	
Analysts International Corporation
    	
Brittany   B. McKinney 
    
	
 
    	
 
    
	
 
    	
 
    	
 
    	
 
    
	
By: 
    	
/s/   Lynn L. Blake 
    	
 
    	
By: 
    	
/s/   Brittany B. McKinney 
    
	
 
    	
 
    	
 
    	
 
    
	
Title: 
    	
SVP,   Chief Financial Officer
    	
 
    	
Date signed: August 27, 2013
    
	
 
    	
 
    
	
Date signed:  August 27, 2013
    	
 
    

 

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