RESTRICTED STOCK AGREEMENT ANALYSTS INTERNATIONAL CORP.
Exhibit
10-ll
2004
EQUITY INCENTIVE PLAN
THIS
AGREEMENT, made effective as of this 3 day of January, 2007, by and between
Analysts International Corp., a Minnesota corporation (the “Company”), and
___________________ (“Participant”).
W
I T N E
S S E T H:
WHEREAS,
the Participant on the date hereof is a key employee or officer of the Company;
and
WHEREAS,
the Company wishes to grant a restricted stock award to Participant for shares
of the Company’s Common Stock pursuant to the Company’s 2004 Equity Incentive
Plan (the “Plan”);
WHERAS,
certain
of the terms of this Restricted Stock Agreement (the “Agreement”) are included
herein pursuant to the Company’s 2007 Long-Term Incentive Plan; and
WHEREAS,
the Administrator of the Plan has authorized the grant of a restricted stock
award to the Participant;
NOW,
THEREFORE, in consideration of the premises and of the mutual covenants herein
contained, the parties hereto agree as follows:
1. Grant
of Restricted Stock Award.
The
Company hereby grants to Participant on the date set forth above a restricted
stock award (the “Award”) for _____________________ ( )
shares
of Common Stock (the “Shares”) on the terms and conditions set forth herein, and
subject to adjustment pursuant to Section 12 of the Plan. The Company shall
cause to be issued a stock certificate representing such shares of Common Stock
in the Participant’s name, and shall deliver such certificate to the
Participant; provided, however, that the Company shall place a legend on such
certificate describing the risks of forfeiture and other transfer restrictions
set forth in this Agreement and providing for the cancellation and return of
such certificate if such shares of Common Stock are forfeited as provided in
Section 2 below. Until such risks of forfeiture have lapsed or the shares
subject to this Award have been forfeited pursuant to Section 2 below, the
Participant shall be entitled to vote the shares represented by such stock
certificates and shall receive all dividends attributable to such shares, but
the Participant shall not have any other rights as a shareholder with respect
to
such shares.
2. Vesting
of Restricted Stock.
a.
The
shares of Stock subject to this Award shall remain forfeitable until the risks
of forfeiture lapse according to the following vesting provisions:
(i) If
the
Company’s audited annual period financial statements for its 2007 fiscal year
demonstrate that the Company generated positive net income during its 2007
fiscal year (“2007 Net Income”), the risk of forfeiture shall lapse with respect
to 331/3%
of the
Shares and such Shares shall be considered vested;
(ii) If
the
Company’s audited annual period financial statements for its 2008 fiscal year
demonstrate that the Company’s 2008 net income was at least five percent (5%)
greater than the 2007 Net Income, the risk of forfeiture shall lapse with
respect to 331/3%
of the
Shares and such Shares shall be considered vested;
(iii) If
the
Company’s audited annual period financial statements for its 2009 fiscal year
demonstrate that the Company’s 2009 net income was at least ten percent (10%)
greater than the 2007 Net Income, the risk of forfeiture shall lapse with
respect to 331/3%
of the
Shares and such Shares shall be considered vested;
Shares
that do not vest in any vesting period shall be forfeited. If the Participant’s
employment with the Company (or a subsidiary of the Company) ceases at any
time
prior to the vesting of all of the Shares hereunder for any reason, including
the Participant’s voluntary resignation or retirement but excluding termination
by the Company without “cause,” the Participant shall immediately forfeit all
Shares subject to this Award which have not yet vested and for which the risks
of forfeiture have not lapsed. If the Participant’s employment or other
relationship is terminated by the Company without “cause” prior to the vesting
date for this Award, all risks of forfeiture on the Shares subject to this
Award
shall immediately lapse.
b. Solely
for purposes of this Paragraph 2(b), “cause” shall mean (i) Participant charged
with a felony or convicted of any
criminal misdemeanor or more serious act; (ii) any intentional and/or willful
act of fraud or dishonesty by Participant related to or connected with
Participant’s employment by the Company or any of its Affiliates; (iii) the
willful and/or continued failure, neglect or refusal by Participant to perform
his or her employment duties with the Company or any of its Affiliates, (iv)
a
material violation of the Participant’s or an Affiliate’s policies or codes of
conduct; or (v) the willful and/or material breach by Participant of any
agreement between Participant and the Company or any of its Affiliates,
including but not limited to an employment agreement or a noncompetition
agreement.
3. Miscellaneous.
a. Employment-at-Will.
This
Agreement shall not confer on Participant any right with respect to continuance
of employment by the Company or any of its Affiliates, nor will it interfere
in
any way with the right of the Company to terminate such employment.
Participant’s employment relationship with the Company and its Affiliates shall
be employment-at-will, and nothing in this Agreement shall be construed as
creating an employment contract for any specified term between Participant
and
the Company or any Affiliate.
b. Securities
Law Compliance.
Participant shall not transfer or otherwise dispose of the Shares received
pursuant to this Agreement until such time as counsel to the Company shall
have
determined that such transfer or other disposition will not violate any state
or
federal securities laws. The Participant may be required by the Company, as
a
condition of the effectiveness of this restricted stock award, to agree in
writing that all Shares subject to this Agreement shall be held, until such
time
that such Shares are registered and freely tradable under applicable state
and
federal securities laws, for Participant’s own account without a view to any
further distribution thereof, that the certificates for such shares shall bear
an appropriate legend to that effect and that such Shares will be not
transferred or disposed of except in compliance with applicable state and
federal securities laws.
c. Mergers,
Recapitalizations, Stock Splits, Etc. Pursuant
and subject to Section 12 of the Plan, certain changes in the number or
character of the Common Stock of the Company (through merger, consolidation,
exchange, reorganization, divestiture (including a spin-off), liquidation,
recapitalization, stock split, stock dividend or otherwise) shall result in
an
adjustment, reduction or enlargement, as appropriate, in Participant’s rights
with respect to any unexercised portion of this Award (i.e.,
Participant shall have such “anti-dilution” rights under the Award with respect
to such events, but shall not have “preemptive” rights).
d. Shares
Reserved.
The
Company shall at all times during the term of this Agreement reserve and keep
available such number of shares as will be sufficient to satisfy the
requirements of this Agreement.
e. Withholding
Taxes.
In
order to permit the Company to comply with all applicable federal or state
income tax laws or regulations, the Company may take such action as it deems
appropriate to insure that, if necessary, all applicable federal or state
payroll, income or other taxes are withheld from any amounts payable by the
Company to the Participant. If the Company is unable to withhold such federal
and state taxes, for whatever reason, the Participant hereby agrees to pay
to
the Company an amount equal to the amount the Company would otherwise be
required to withhold under federal or state law.
f. 2004
Equity Incentive Plan.
The
Award evidenced by this Agreement is granted pursuant to the Plan, a copy of
which Plan has been made available to Participant and is hereby incorporated
into this Agreement. This Agreement is subject to and in all respects limited
and conditioned as provided in the Plan. The Plan governs this Agreement and,
in
the event of any questions as to the construction of this Agreement or in the
event of a conflict between the Plan and this Agreement, the Plan shall govern,
except as the Plan otherwise provides.
g. Lockup
Period Limitation.
Participant agrees that in the event the Company advises Participant that it
plans an underwritten public offering of its Common Stock in compliance with
the
Securities Act of 1933, as amended, and that the underwriter(s) seek to impose
restrictions under which certain shareholders may not sell or contract to sell
or grant any option to buy or otherwise dispose of part or all of their stock
purchase rights of the underlying Common Stock, Participant hereby agrees that
for a period not to exceed 180 days from the prospectus, Participant will not
sell or contract to sell or grant an option to buy or otherwise dispose of
this
Agreement or any of the underlying shares of Common Stock without the prior
written consent of the underwriter(s) or its representative(s).
h. Blue
Sky Limitation.
Notwithstanding anything in this Agreement to the contrary, in the event the
Company makes any public offering of its securities and determines, in its
sole
discretion, that it is necessary to reduce the number of issued but unexercised
stock purchase rights so as to comply with any state securities or Blue Sky
law
limitations with respect thereto, the Board of Directors of the Company shall
accelerate the vesting of this restricted stock award, provided that the Company
gives Participant 15 days’ prior written notice of such acceleration. Notice
shall be deemed given when delivered personally or when deposited in the United
States mail, first class postage prepaid and addressed to Participant at the
address of Participant on file with the Company.
i. Accounting
Compliance.
Participant agrees that, if a merger, reorganization, liquidation or other
“transaction” as defined in Section 12 of the Plan occurs, and Participant is an
“affiliate” of the Company or any Affiliate (as defined in applicable legal and
accounting principles) at the time of such transaction, Participant will comply
with all requirements of Rule 145 of the Securities Act of 1933, as amended,
and
the requirements of such other legal or accounting principles, and will execute
any documents necessary to ensure such compliance.
j. Stock
Legend.
The
Administrator may require that the certificates for any shares of Common Stock
purchased by Participant (or, in the case of death, Participant’s successors)
shall bear an appropriate legend to reflect the restrictions of Paragraph 4(b)
and Paragraphs 4(g) through 4(j) of this Agreement; provided,
however, that failure to so endorse any of such certificates shall not render
invalid or inapplicable Paragraph 4(j).
k. Scope
of Agreement.
This
Agreement shall bind and inure to the benefit of the Company, its Affiliates
and
its successors and assigns and Participant and any successor or successors
of
Participant permitted by this Agreement.
l.
Arbitration.
Any
dispute arising out of or relating to this Agreement or the alleged breach
of
it, or the making of this Agreement, including claims of fraud in the
inducement, shall be discussed between the disputing parties in a good faith
effort to arrive at a mutual settlement of any such controversy. If,
notwithstanding, such dispute cannot be resolved, such dispute shall be settled
by binding arbitration. Judgment upon the award rendered by the arbitrator
may
be entered in any court having jurisdiction thereof. The arbitrator shall be
a
retired state or federal judge or an attorney who has practiced securities
or
business litigation for at least 10 years. If the parties cannot agree on an
arbitrator within 20 days, any party may request that the chief judge of the
District Court of Hennepin County, Minnesota, select an arbitrator. Arbitration
will be conducted pursuant to the provisions of this Agreement, and the
commercial arbitration rules of the American Arbitration Association, unless
such rules are inconsistent with the provisions of this Agreement. Limited
civil
discovery shall be permitted for the production of documents and taking of
depositions. Unresolved discovery disputes may be brought to the attention
of
the arbitrator who may dispose of such dispute. The arbitrator shall have the
authority to award any remedy or relief that a court of this state could order
or grant; provided, however, that punitive or exemplary damages shall not be
awarded. The arbitrator may award to the prevailing party, if any, as determined
by the arbitrator, all of its costs and fees, including the arbitrator’s fees,
administrative fees, travel expenses, out-of-pocket expenses and reasonable
attorneys’ fees. Unless otherwise agreed by the parties, the place of any
arbitration proceedings shall be Hennepin County, Minnesota.
IN
WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
on
the day and year first above written.
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ANALYSTS
INTERNATIONAL CORPORATION
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By
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Its
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Participant
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