Exhibit 10.1

EMPLOYMENT AGREEMENT

     This Agreement is entered into by and between Computer Associates
International, Inc. (the “Company”) and Kenneth D. Cron (“Cron”) on July 8,
2004. In consideration of the Company offering, and Cron accepting, the position
of interim Chief Executive Officer (“Interim CEO”) of the Company, Cron and the
Company agree as follows:

     1. Work Standards. Cron will (a) serve the Company (and such of its
subsidiary companies as the Company may designate) faithfully, diligently and to
the best of Cron’s ability under the direction of the Board of Directors of the
Company, (b) devote his best efforts, attention and energy to the performance of
his duties to the Company and (c) not do anything inconsistent with his duties
to the Company. Cron’s employment began on April 23, 2004 and shall end on the
effective date of the appointment by the Company’s Board of Directors of a new
Chief Executive Officer or in accordance with paragraph 14 of this Agreement.

     2. Laws; Other Agreements. Cron represents that his employment hereunder
will not violate any law or duty by which he is bound, and will not conflict
with or violate any agreement or instrument to which Cron is a party or by which
he is bound.

     3. Compensation. (a) In consideration of services that Cron has rendered
and will render to the Company in the future, the Company agrees to pay Cron the
following consideration:

          (i) The sum of $50,000 per month (less applicable withholdings)
commencing on April 23, 2004, payable semi-monthly concurrent with the Company’s
normal payroll cycle. The Company will pay this amount until Cron’s employment
hereunder terminates. If Cron’s employment hereunder terminates prior to April
23, 2005, the Company will pay Cron the difference between $600,000 and all
amounts previously paid pursuant to this paragraph 3(a)(i). If Cron’s employment
hereunder terminates on or following such date and during a payroll cycle, the
Company will pay Cron through the end of that payroll cycle.

          (ii) The sum of $2,000 per month as reimbursement for Cron’s lease on
office space commencing on April 23, 2004. This reimbursement shall be paid
concurrent with the Company’s month-end payroll for each month of Cron’s
employment. If Cron’s employment hereunder terminates prior to April 23, 2005,
the Company will pay Cron the difference between $24,000 and all amounts
previously paid pursuant to this paragraph 3(a)(ii). If Cron’s employment
hereunder terminates on or following such date and during a payroll cycle, the
Company will pay the reimbursement through the end of the last month of Cron’s
employment.

          (iii) Restricted stock units with respect to 52,780 shares of the
Company’s Common Stock. The units shall become fully vested on the earlier of
the effective date of the appointment of a new Chief Executive Officer by the
Company’s Board of Directors and April 23, 2005, at which time the Company shall
deliver to Cron 52,780 shares of Common Stock, free from all restrictions (other
than such restrictions as may be applicable under the federal securities laws).
The other terms of the restricted stock units shall be governed by the terms of
the Company’s 2002 Incentive Plan, as amended (as so amended, the “2002 Plan”),
and any Award Certificate issued in connection with such units. In the event
that Cron voluntarily resigns his position with the Company or is terminated
“for cause” (as defined in paragraph 5 of this Agreement) prior to the time the
restricted stock units granted under this paragraph 3(a)(iii) vest, he shall
forfeit any and all rights he may have to this restricted stock unit grant.

          (iv) Options to purchase 83,845 shares of the Company’s Common Stock
at a price of $28.42 per share. The options shall become exercisable in full on
the earlier of the effective date of the appointment of a new Chief Executive
Officer by the Company’s Board of Directors and April 23, 2005. Thereafter, Cron
shall have the right to exercise such options at any time during the term of
such options. The other terms of the options shall be governed by the terms of
the 2002 Plan, and any Award Certificate issued in connection with such options.
In the event that Cron voluntarily resigns his position with the Company or is
terminated “for cause” (as defined in paragraph 5 of this Agreement) prior to
the time the options granted under this paragraph 3(a)(iv) vest, he shall
forfeit any and all rights he may have to this option grant.

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          (b) In addition, Cron shall be eligible to receive:

          (i) a 2005 Annual Performance Bonus (payable in cash) pursuant to
Section 4.4 of the 2002 Plan, with an Annual Performance Bonus target of
$750,000.00, which Annual Performance Bonus shall otherwise be subject to the
terms and conditions of the Company’s 2005 Annual Performance Bonus plan; and

          (ii) a targeted Performance Bonus of $2,250,000.00 for the period from
April 23, 2004 through March 31, 2005, which Performance Bonus shall otherwise
be subject to the terms and conditions applicable to the fiscal year ending
March 31, 2005 under the Company’s 2005-2007 Long-Term Performance Bonus plan,
with the form or forms of payment of any such Performance Bonus to be determined
by the Compensation and Human Resource Committee (the “Compensation Committee”)
of the Board of Directors at or as promptly as practicable following March 31,
2005 (the date of such determination being referred to as the “Determination
Date”) in accordance with the 2002 Plan. Subject to subparagraph (iii), such
Performance Bonus shall vest on March 31, 2005, shall be paid to Cron shortly
following public announcement of the Company’s financial results for the 2004
fiscal year (anticipated to occur in May 2005), and shall not be subject to any
holding period.

          (iii) In the event that Cron voluntarily resigns his position with the
Company prior to March 31, 2005 or is terminated “for cause” (as defined in
paragraph 5 of this Agreement) at any time, he shall forfeit any and all rights
he may have to receive any of the benefits provided for in this paragraph 3(b).
If Cron’s employment hereunder otherwise would terminate prior to March 31, 2005
for any other reason (including the effectiveness of the appointment by the
Company’s Board of Directors of a new Chief Executive Officer), then (A) Cron
shall remain an employee of the Company through and including the Determination
Date at a salary per month to be determined by the Compensation Committee at the
time (less applicable withholdings), (B) management shall recommend that any
Restricted Stock, Fair Market Value Options and Premium-Priced Options granted
to Cron pursuant to the Performance Bonus described in subparagraph (ii) shall
vest in full immediately upon the termination of Cron’s employment hereunder,
and (C) Cron shall be entitled to receive the benefits provided for in this
paragraph 3(b) if and to the extent that the relevant targets are met and
otherwise in accordance with the terms of the 2002 Plan. Capitalized terms used
in this paragraph (b) and not defined are used as defined in the 2002 Plan.

     4. Benefits and Perquisites. During the term of Cron’s employment, Cron
shall be eligible to participate in all pension, welfare and benefit plans and
perquisites generally made available to other senior executives of the Company.

     5. Termination For Cause. For purposes of this Agreement, termination “for
cause” shall mean that the Company terminates Cron’s employment for any of the
following reasons: (a) Cron’s continued failure, either due to willful action or
as a result of gross neglect, to substantially perform his duties with the
Company (other than any such failure resulting from his incapacity due to
physical or mental illness) that, if capable of being cured, has not been cured
within 30 days after written notice is delivered to Cron by the Board, which
notice specifies in reasonable detail the manner in which the Board believes
that Cron has not substantially performed his duties, (b) the engaging by Cron
in conduct which is demonstrably and materially injurious to the Company or its
affiliates, monetarily or otherwise, unless the conduct in question was
undertaken in good faith, on an informed basis, with due care and with a
rational business purpose and based upon the honest belief that such conduct was
in the best interest of the Company or its affiliates, as the case may be,
(c) Cron’s indictment or conviction (or plea of guilty or nolo contedere) for
any felony or any other crime involving dishonesty, fraud or moral turpitude,
(d) Cron’s breach of fiduciary duty to the Company or its affiliates which may
reasonably be expected to have a material adverse effect on the Company or its
affiliates, (e) violation of the Company’s policies relating to compliance with
applicable laws which may reasonably be expected to have a material adverse
effect on the Company or its affiliates, (f) violation of the Company’s policies
on discrimination, unlawful harassment or substance abuse, (g) violation of the
Company’s Workplace Violence Policy, or (h) unauthorized use or disclosure of
confidential or proprietary information or related materials, or the violation
of any of the terms of the Company’s standard confidentiality policies and
procedures, in the case of any item identified in this clause (h) which (i) may
reasonably be expected to have a material adverse effect on the Company or its
affiliates and (ii) if capable of being cured, has not been cured within 30 days
after written notice is delivered to Cron by the Board, which notice specifies
in reasonable detail the alleged unauthorized use or disclosure or violation.
For purposes of clause (a) of this definition, no act, or failure to act, on
Cron’s part shall be deemed “willful” unless done, or omitted to be done, by
Cron not in good faith and without reasonable belief that his act, or failure to
act, was in the best interest

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of the Company or its affiliates, as the case may be.

     6. Indemnification.

          (a) To the fullest extent permitted by Section 145 of the Delaware
General Corporation Law, the Company shall indemnify Cron in the event that he
was, is or becomes a party or is threatened to be made a party to any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative or investigative, and whether brought by a third party
or by or in the right of the Company, by reason of the fact that he is or was
the Interim CEO of the Company, against expenses (including attorneys’ fees),
liability, loss, judgment, fines and amounts paid in settlement actually and
reasonably incurred by him in connection with such action, suit or proceeding
(collectively, “Expenses”). Such indemnity shall be paid promptly after written
demand is presented to the Company.

          (b) Expenses actually and reasonably incurred by Cron in defending any
threatened, pending or completed action, suit or proceeding, whether civil,
criminal, administrative, or investigative, and whether brought by a third party
or by or in the right of the Company, and in which Cron is made or threatened to
be made a party by reason of the fact that he is or was the Interim CEO of the
Company, shall be paid on behalf of Cron by the Company in advance of the final
disposition of such action, suit, or proceeding and promptly following receipt
by the Secretary of the Company of (i) an application from Cron setting forth
the basis for such indemnification, and (ii) if required by law at the time such
application is made, an undertaking by or on behalf of Cron to repay such amount
if it shall ultimately be determined that Cron is not entitled to be indemnified
by the Company as authorized in this paragraph 6.

          (c) Expenses actually and reasonably incurred by Cron in connection
with any action brought by Cron for (i) indemnification or advance payment of
Expenses by the Company pursuant to paragraphs 6(a)-(b) of this Agreement or
(ii) recovery under any directors’ and officers’ liability insurance policies
maintained by the Company shall be paid on behalf of Cron by the Company in
advance of such action, suit or proceeding promptly following receipt by the
Secretary of the Company of the application and, if necessary, the undertaking
referred to in paragraph 6(b) above.

          (d) If Cron is entitled under any provision of this Agreement to
indemnification by the Company for some or a portion of the Expenses, judgments,
fines, penalties and amounts paid in settlement of a claim but not, however, for
all of the total amount thereof, the Company shall nevertheless indemnify Cron
for the portion thereof to which Cron is entitled.

          (e) Further to the Company’s undertaking pursuant to paragraph 6(a)
above to indemnify Cron to the furthest extent provided by applicable law, for
purposes of this Agreement, the termination of any claim, action, suit or
proceeding, by judgment, order, settlement (whether with or without court
approval), or upon a plea of nolo contendere or its equivalent, shall not create
a presumption that Cron did not meet any particular standard of conduct or have
any particular belief or that a court has determined that indemnification is not
permitted by applicable law.

          (f) The rights of Cron hereunder shall be in addition to any other
rights Cron may have under the Company’s By-laws or the Delaware General
Corporation Law or otherwise. To the extent that a change in the Delaware
General Corporation Law (whether by statute or judicial decision) permits
greater indemnification by agreement than would be afforded currently under the
Company’s By-laws and this Agreement, it is the intent of the parties hereto
that Cron shall enjoy by this Agreement the greater benefits so afforded by such
change. Should the By-laws of the Company be amended after the date of this
Agreement such that the indemnification rights thereunder afforded to Cron in
his capacity as Interim CEO do not provide the maximum indemnification permitted
under applicable law, Cron shall be entitled to the benefit of the
indemnification provisions of the Company’s By-laws as in effect on the date of
this Agreement, subject only to such provisions not being in violation of
applicable law as then in effect.

     7. Confidential Information of Others. Cron agrees that in the performance
of his duties as Interim CEO, he will not use, disclose to the Company, or
induce the Company to use, any confidential information or documents belonging
to others.

     8. Confidential Information of the Company. As used in this Agreement, the
term “Confidential Information” means any and all confidential, proprietary or
secret information, including that conceived or developed by Cron, applicable to
or in any way related to (a) the present or future business of the Company,
(b) the research and development of the Company, or (c) the business of any

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client or vendor of the Company. Such Confidential Information of the Company
includes, by way of example and without limitation, trade secrets, processes,
formulas, data, program documentation, algorithms, source codes, object codes,
know-how, improvements, inventions, techniques, all plans or strategies for
marketing, development and pricing, and all information concerning existing or
potential clients or vendors. Confidential Information of the Company also
includes all similar information disclosed to the Company by other persons.
However, Confidential Information shall not include information that (i) becomes
generally available to the public other than as a result of disclosure by Cron
or any of Cron’s agents, advisors or representatives, (ii) was made available to
Cron, with no disclosure to Cron that the information was subject to
confidentiality restrictions, prior to its disclosure to Cron by the Company or
its agents, advisors or representatives, or (iii) becomes available to Cron,
with no disclosure to Cron that the information was subject to confidentiality
restrictions, from a source other than the Company or its agents, advisors or
representatives, provided such source was, to Cron’s reasonable knowledge,
entitled to make the disclosure to Cron.

     9. Protection of the Company’s Confidential Information. Cron acknowledges
that the Confidential Information of the Company is a special, valuable, and
unique asset of the Company, and Cron agrees that at all times during the period
of his employment, and at all times after termination of such employment, that
he will keep in strict confidence and not disclose (except as required by law or
in order for Cron to perform his duties as Interim CEO) all such Confidential
Information. Cron agrees that he will abide by all Company policies, rules and
procedures that relate to the protection of the Company’s Confidential
Information.

     10. Return of Materials. Upon termination of employment with the Company,
and regardless of the reason for such termination, Cron agrees that he will
leave with, or promptly return to, the Company all documents, records,
notebooks, magnetic tapes, disks or other materials, including all copies, in
his possession or control which contain Confidential Information of the Company
or any other information concerning the Company, its products, services or
clients, whether prepared by the Cron or others, except for any such materials
that were delivered to Cron in his role as a director of the Company and which
continue to be necessary or useful to him in the performance of his continuing
duties as a director of the Company. In the event that Cron’s employment would
terminate as set forth in the second sentence of paragraph 3(b)(iii) of this
Agreement, he shall comply with the provisions of this paragraph 10 promptly
upon the date his employment otherwise would have terminated without giving
effect to the continuation of such employment through the Determination Date as
provided for by such sentence.

     11. Inventions as Sole Property of the Company. Any inventions,
discoveries, concepts or ideas, or expressions thereof, whether or not subject
to patents, copyrights, trademarks or service mark protection, and whether or
not reduced to practice, conceived or developed by Cron while employed by the
Company which relate to or result from the actual or anticipated business, work,
research or investigation of the Company or which are suggested by or result
from any task assigned to or performed by Cron for the Company shall be the sole
and exclusive property of the Company. Cron hereby assigns to the Company the
entire right, title and interest to any such inventions, discoveries, concepts,
ideas or expressions thereof and Cron agrees to perform, during and after
employment, all acts deemed necessary or desirable by the Company to permit and
assist it, at the Company’s expense, in obtaining, maintaining, defending and
enforcing inventions, discoveries, concepts, ideas, or expressions thereof in
any and all countries. Such acts may include, but are not limited to, execution
of documents and assistance or cooperation in legal proceedings. Cron hereby
irrevocably designates and appoints the Company and its duly authorized officers
and agents as Cron’s agents and attorneys-in-fact to act for and in Cron’s
behalf and instead of Cron, to execute and file any documents and to do all
other lawfully permitted acts to further the above purposes with the same legal
force and effect as if executed by Cron.

     12. List of Prior Inventions. All inventions, discoveries, improvements,
concepts or ideas, or expressions thereof, which Cron has made prior to
employment by the Company are excluded from the scope of this Agreement. As a
matter of record, Cron has set forth on Exhibit A hereto a complete list of
inventions, discoveries, improvements, concepts or ideas, or expressions
thereof, which might reasonably be expected to relate to the development of
integrated enterprise computer software products consistent with the Company’s
principal lines of business as conducted at the date hereof and which have been
made by Cron prior to his employment by the Company. Cron agrees that under no
circumstances will he incorporate in any work performed for the Company: (a) any
of the inventions, discoveries, improvements, concepts or ideas, or expressions
thereof, disclosed on Exhibit A; and/or (b) any of the technology described in
any of the inventions, discoveries, improvements, concepts or ideas, or
expressions thereof, disclosed on Exhibit A, without the prior written consent
of the Company. Cron

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further agrees that in the event any of the inventions, discoveries,
improvements, concepts or ideas, or expressions thereof, disclosed on Exhibit A
are incorporated into any work performed for the Company without Company’s
written consent, Cron grants the Company a royalty free, perpetual license to
make, use, sell, offer to sell, import, copy, reproduce and/or perform any other
act (including the right to make, copy and reproduce derivative works) necessary
to continue to exploit any work performed by the Cron for the Company.

     13. Authorization to Modify Restrictions. Cron acknowledges that the
restrictions contained in this Agreement are reasonable, but agrees that if a
court having proper jurisdiction holds a particular restriction unreasonable,
that restriction shall be modified to the extent necessary in the opinion of
such court to make it reasonable, and that the remaining provisions of this
Agreement shall nonetheless remain in full force and effect.

     14. No Duration of Employment. Notwithstanding anything else contained in
this Agreement to the contrary, the Company and Cron each acknowledge and agree
that Cron’s employment with the Company may be terminated by either the Company
(subject only to the provisions of paragraph 3(b)(iii) of this Agreement) or
Cron at any time and for any reason, with or without cause, upon 10 days’
written notice to the other party, provided that this Agreement may be
terminated “for cause” immediately upon written notice from the Company to Cron.
In addition, this Agreement shall automatically terminate upon Cron’s death or
Disability. For purposes hereof, “Disability” shall have the same meaning as set
forth in the 2002 Plan. Upon termination of his employment for any reason
whatsoever, the Company shall have no further obligation to Cron other than
those set forth in paragraphs 3(a), 3(b) and 6 of this Agreement.

     15. General.

               (a) Any notice required or permitted to be given under this
Agreement shall be made either:

          (i) by personal delivery to Cron or, in the case of the Company, to
the Company’s principal office (“Principal Office”) located at One Computer
Associates Plaza, Islandia, New York 11749, Attention: Senior Vice President –
Human Resources, or

          (ii) in writing and sent by registered mail, postage prepaid, to
Cron’s residence with a copy to:

Skadden, Arps, Slate, Meagher & Flom LLP
Four Times Square
New York, NY 10036
Attention: Stephen M. Banker

or, in the case of the Company, to the Company’s Principal Office.

     Any provision of this Agreement calling for notice to be delivered by the
Board of Directors shall be satisfied by any notice that is executed on behalf
of the Board of Directors by any director or officer of the Company acting
pursuant to the authorization of the Board and otherwise delivered in accordance
with this paragraph 15(a)

               (b) This Agreement shall be binding upon Cron and his heirs,
executors, assigns, and administrators and shall inure to the benefit of the
Company, its successors and assigns and any subsidiary or parent of the Company.

               (c) This Agreement shall be governed by and construed in
accordance with the laws of the State of New York, without regard to conflict of
law principles. Any action relating to this Agreement shall be brought
exclusively in the state or federal courts of the State of New York, County of
Suffolk.

               (d) This Agreement and the documents referred to herein represent
the entire agreement between Cron and the Company and supersede any and all
previous oral or written communications, representations or agreements. This
Agreement may only be modified, in writing, jointly by Cron and a duly
authorized representative of the Company.

               (e) Without limiting the scope of paragraph 13 of this Agreement,
the provisions of this Agreement shall be severable in the event that any of the
provisions hereof (including any provision within a single paragraph or
sentence) are held by a court of competent jurisdiction to be invalid, void or

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otherwise unenforceable in any respect, and the validity and enforceability of
any such provision in every other respect and of the remaining provisions hereof
shall not be any way impaired and shall remain enforceable to the fullest extent
permitted by law.

CAUTION TO CRON: This Agreement affects important rights. DO NOT sign it unless
you have read it carefully and are satisfied that you understand it completely.

              COMPUTER ASSOCIATES
INTERNATIONAL, INC.
 
 
       
/s/ Kenneth D. Cron
  By:   /s/ Andrew Goodman

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Kenneth D. Cron
  Name:
Title:   Andrew Goodman
Senior Vice President, HR

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EXHIBIT A
TO
EMPLOYMENT AGREEMENT

     I represent that I have disclosed on this Exhibit all inventions,
discoveries, improvements, concepts or ideas or expressions thereof, including
all patents, patent applications, copyright registrations, copyrighted works
(e.g., program code in source or object form or writings) and/or computer
programs (collectively “Inventions”) in which I claim any proprietary right or
interest that might reasonably be expected to relate to the development of
integrated enterprise computer software products consistent with the Company’s
principal lines of business as conducted at the date hereof. I agree that any
present or future Inventions not listed on this Exhibit are subject to licensing
under paragraph 12 of the attached Employment Agreement.

     I understand that the Company has made no attempt to verify my claim of
ownership to any of the Inventions disclosed on this Exhibit, and that the
Company makes no admission that any Inventions disclosed on this Exhibit are
owned by me.

      Brief Description of Invention   Right, Title or Interested and Date
Acquired
 
   

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Date
  Kenneth D. Cron

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