ANNUAL MANAGEMENT INCENTIVE PLAN (AMIP)Executive Compensation Plan Agreement |
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ANALYSTS INTERNATIONAL CORPORATION. RealDealDocs™ contains millions of easily searchable legal documents and clauses from top law firms. Search for free - click here. |
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EXHIBIT 10.3
Exhibit B
ANALYSTS INTERNATIONAL CORPORATION
ANNUAL MANAGEMENT INCENTIVE PLAN (AMIP)
Fiscal Year 2008 Only
1. Term of this AMIP. This Annual Management Incentive Plan (AMIP or the
Plan) is Exhibit B to that certain Employment Agreement between Analysts
International Corporation (the Company) and Randy W. Strobel (Executive)
having a Commencement Date of August 25, 2008 (the Employment Agreement), and
is an integral part of said Employment Agreement. This AMIP shall
become effective on the Commencement Date specified in the Employment
Agreement, and replaces all prior incentive compensation plans and other
arrangements between the parties. It is effective for the 2008
Fiscal Year only (January 1, 2008 through December 31, 2008), and will be
replaced, amended or eliminated thereafter.
2. Terms of Participation.
(a) Eligibility. Before
an employee may participate in the Plan, the employee must be designated by
Analysts International corporate management or, in the case of an executive
officer, the Compensation Committee of the Companys Board of Directors as
eligible to participate and must execute, if requested by the Company, an
employment agreement, in such form as the Company may require. The
Companys failure to request the employee to sign an employment agreement in
order to participate in the Plan shall in no way modify, amend, terminate or
void any employment agreement, non-compete, confidentiality or similar
agreement previously signed by the employee and such agreement shall remain in
full force and effect.
(b) Changes in position or Gross Base Salary. If, during the course of the fiscal year,
an employee accepts a new position with the Company or receives a new Gross
Base Salary (as defined in Section 3(d)(i) below), the employees incentive
distribution, if any, shall be calculated using the Gross Base Salary as of
December 31, 2008, unless otherwise agreed to by the Company in writing.
(c) Not a Guarantee of Continuing Employment. The Plan is not intended as a guarantee of
continuing employment, the employment relationship between the Company and
participants in the Plan being terminable at any time by either the Company or
the participant, with or without cause, unless agreed to otherwise in writing.
3. Incentive Compensation Components.
(a) Incentive Compensation. Two types of senior management employees
are eligible to participate in this Plan leaders of Strategic Support Service
Units (SSU) and leaders of Strategic Business Units (SBU).
(i) For leaders of SSUs, incentive compensation is based
solely (100%) on company performance.
(ii) For leaders of SBUs, incentive compensation is based
on both company performance and their individual SBU performance as further set
forth herein.
(b) Company Performance Component. The company component of the AMIP is
based on one and only one factor, Earnings per Share (EPS), as the same shall
be disclosed in the Companys final fiscal year 2008 financial earnings
release.
(c) SBU Performance Component. The SBU performance component of the AMIP
is based on achievement of the individual SBU operating profit established for
the specific SBU in the CEO budget.
(d) Condition to Payment. No payment
of any kind will be made under this Plan to SSU leaders if the companys
performance in terms of EPS is below $0.05 a share.
4. Leaders of SSUs.
For
leaders of Strategic Support Service Units (SSU), the range of potential
payment amounts is 0% to 70% of Gross Base Salary, as follows:
|
EPS (after AMIP payout) |
% of SSU Leaders Base Salary Payable as Incentive Compensation |
|
$0.03 |
0.0% |
|
$0.04 |
0.0% |
|
$0.05 (CEO Budget) |
30.0% |
|
$0.06 |
33.0% |
|
$0.07 |
33.0% |
|
$0.08 |
34.0% |
|
$0.09 |
36.0% |
|
$0.10 |
37.0% |
|
$0.11 |
38.0% |
|
$0.12 |
39.0% |
|
$0.13 (Mgmt. Budget) |
40.0% |
|
$0.14 |
42.5% |
|
$0.15 |
45.0% |
|
$0.16 |
47.5% |
|
$0.17 |
50.0% |
|
$0.18 |
52.5% |
|
$0.19 |
55.0% |
|
$0.20 |
57.5% |
|
$0.21 |
62.0% |
|
$.022 |
70% (maximum) |
2
5. Leaders of SBUs.
(a) For leaders of SBUs,
incentive compensation is based on both company performance and their
individual SBU performance.
(b) At target performance,
the ratio between these two components will be 75% on company performance and
25% on individual SBU performance. Target performance assumes that
the Company achieves EPS of $0.05 after AMIP, and that the SBU has achieved its
individual operating profit financial objective as established in the CEO
budget for fiscal year 2008.
(c) The range of potential
payment amounts to an eligible SBU leader is 0% to 70% of Gross Base Salary,
with a total targeted payment amount of 30% if both the Company and the SBU
achieves 100% of the target CEO budget for the fiscal year.
(d) The range of potential
payment amounts to an eligible SBU leader under the company performance
component is 0% to 52.5% of Gross Base Salary, with a target payment amount of
22.5% if the Company achieves $.05 EPS. There will be no payment
made of the company performance component of the Plan if the company
performance is below $0.05 a share. The following chart shows the
range of payout of the company component to SBU leaders based on EPS.
|
EPS (after AMIP payout) |
% of SBU Leaders Base Salary Payable as Incentive Compensation |
|
$0.03 |
0.0% |
|
$0.04 |
0.0% |
|
$0.05 (CEO budget) |
22.5% |
|
$0.06 |






