Document:

ex10-1.htm

    
      

    

    Exhibit
      10.1

    January
      22, 2008

     

    Dear
      Jack:

     

    It
      gives
      me great pleasure to extend an employment offer to you as Sr. Vice President
      and Chief Financial Officer (CFO) of Key Technology.  In this
      capacity, you will report directly to me and be located at the company
      headquarters in Walla Walla.

     

    Everyone
      with whom you interacted at Key, including Board members, was exceedingly
      impressed with your financial and operations experience and maturity, your
      demonstrated capacity to grow global enterprises across diverse markets, and
      your strong interest in the Key organization.  We believe your
      contributions to the future of the company will be significant and we judge
      your
      fit with the organization to be very good.

     

    As
      Chief
      Financial Officer, you will be responsible for the corporation’s overall
      financial plans and policies, accounting practices, and the conduct of its
      relationships with external auditors, lending institutions, shareholders and
      the
      investment community.  Through your staff, you will be responsible for
      financial systems and controls, reporting, and analysis of operating
      results.  You will recommend corporate objectives and long range plans
      to achieve growth and financial profitability and you will be responsible for
      providing guidance and analysis for all financial elements of the corporation,
      including an annual budget and forecasts.   And you will
      participate as an important member of an executive team charged with growing
      this business and increasing shareholder value.

     

    The
      elements of our offer package are detailed as follows:

     

    Exempt
      Base Salary

     

    $
      230,000
      per year, paid bi-weekly at a rate of $8,846.15.  Your first
      performance review and any associated merit adjustment to your salary will
      occur
      in November of 2008.

     

    Note:
      Your employment with Key Technology is contingent upon successfully completing
      a
      drug screen, criminal history, social security, education and reference check
      all scheduled for you by the Human Resources Department.

     

    Annual
      Incentive Plan

     

    Effective
      with the 2009 fiscal year, you will be eligible for full participation in the
      Annual Executive Incentive Plan.  The potential payout under this
      incentive plan is tied to achieving the Net Income target established in the
      2009 operating plan.  Reward thresholds for over-plan performance on
      Net Income will be communicated to you at a later time.   There
      will be no incentive payout for the 2008 fiscal year.

     

    Under
      the
      Executive Incentive Plan, your target 2009 bonus will be 50% of your base
      salary.  Should achievement of the Net Income goal exceed the defined
      performance target, there is upside earning potential that would allow you
      to
      receive as much as an additional 50% of base salary.

     

    Long-Term
      Incentive Plan

     

    Key
      has a
      Long-Term Incentive Plan that takes the form of restricted stock
      grants.  The restricted stock grants to Executive Staff are awarded on
      an annual basis.  The number of shares awarded each individual is
      determined as a function of their personal contribution and the stock price
      at
      point of grant.

     

    I
      am
      pleased to offer you a restricted stock grant of roughly 7,000+ shares, the
      current value of which will approximate your starting annual
      salary.  This grant is effective on your start date, however, the
      market price (close) on the date of your signed acceptance of this offer will
      determine the final number of shares.  One third of the shares will
      vest over a three-year period (annually) based on continuous employment
      (service). The remaining two thirds of the shares will cliff-vest at the
      completion of the same three-year period, based on meeting three-year
      performance

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    targets
      (cumulative net income), to be defined in the near future.  You will
      be eligible for additional annual grants, commencing in FY 2009.

     

    The
      overall objective of the incentive plan for senior executives is to structure
      a
      plan where we can earn incentive compensation, via the Executive Incentive
      Plan
      and LTIP, equal to 100% of our respective base salaries.  The plan
      design requires exceptional performance, but the rewards are
      substantial.

     

    Benefits

     

    Provided
      we receive your completed enrollment forms, your group health, life, disability,
      and other standard benefit coverages will begin on your first day of
      employment.  Beginning with your first pay period you will accrue
      vacation at the rate of 6.15 hours (160 hours per year).  One week
      will be available to you after six months of service.   Human
      Resources will forward a packet of information to you about these benefit
      programs under separate cover.

     

    You
      will
      be eligible to participate in the company’s 401K Plan on the first of the month
      following hire.  The company matches 50% of up to an 8% employee
      contribution to the plan.

     

    You
      will
      also be eligible to participate in our Employee Stock Purchase Plan at the
      first
      quarterly enrollment date following the first 30-days of employment, in
      accordance with the plan document.  This plan allows employees to
      purchase Key Technology stock at a 15% discount to market price and is
      administered through payroll deduction.

     

    Relocation

     

    Human
      Resources will arrange for packing and transport of normal household goods
      to
      Walla Walla through Corporate Relocation Services.  We will also pay
      for house hunting trips and temporary housing in Walla Walla for you for up
      to
      three months from your date of hire.  This temporary housing allowance
      will include the cost of trips home on weekends, but excludes meals or other
      normal living expenses.

     

    This
      program does not cover expenses related to selling your current home or expenses
      related to the purchase of a home in Walla Walla.  Key will also
      provide an Incidental Relocation Expense Allowance in the amount of $50,000,
      to
      be paid to you within 30 days of completing the relocation of your primary
      residence to Walla Walla.  Relocation costs will be provided without
      tax consequence to you.  Expenses viewed as taxable income under IRS
      guidelines will be grossed up for tax purposes.

     

    It’s
      our
      expectation that you and your family will move and establish residence in Walla
      Walla.  However, we understand the importance of your son completing
      his education in Lake Oswego and your family remaining there until that time
      in
      late spring of this year.  We would therefore expect your move to
      Walla Walla to be fully completed within twelve months of your hire
      date.  All elements of the offered relocation support will remain in
      effect until that date.

     

    Severance
      Agreement

     

    You
      will
      be receiving a separate document formalizing the following severance
      offer.  Should your employment be terminated by Key for reasons other
      than cause at any time during your first twelve months of employment, you will
      receive severance in an amount equal to six (6) months salary, payable over
      a
      six month period and subject to withholding taxes.  The company will
      also pay in full all COBRA contributions in order to continue your elected
      medical/dental coverages for a period of twelve (12) months following
      termination of employment.

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    I-9
      Requirement

    

    It
      is
      required by law that all persons working in the United States must provide
      proof
      of their employment eligibility by furnishing their employer with appropriate
      documentation on the first day of employment.  Therefore, should you
      accept our offer; we will need to verify the appropriate identification detailed
      in the lists attached (one from List A – or– one from
      List B and one from List C).  Please let us know in advance of any
      complications.

     

    

     

    
      	
              LIST
                A

            	
              LIST
                B

            	
              LIST
                C

            
	
              U.S.
                Passport

            	
              Driver
                License or I.D. Card

            	
              Social
                Security Card

            
	
              Certificate
                of U.S. Citizenship

            	
              U.S.
                Military Card

            	
              Birth
                Certificate

            
	
              Certificate
                of naturalizations

            	
              Other
                (must specify)

            	
              Unexpired
                INS Employment

            
	
              Unexpired
                foreign passport

            	 	 
	
              Alien
                Registration card with photograph

            	 	 

    

     

    Jack,
      we
      look forward to your acceptance and to your joining the company at a mutually
      agreed date in the early February timeframe.  Should you have
      questions or need clarification about any of the terms in this offer, please
      don’t hesitate to contact me.   In order to officially confirm
      your acceptance of employment, please sign the attached confirmation page and
      return it to the Human Resources department as soon as possible. The letter
      is
      yours to keep.

     

    
      

       

    

    Sincerely,

     

    /s/
      David
      Camp

    President
      and Chief Executive Officer

     

    
      

       

       

      BE
        ADVISED: Only offers that are made in writing and signed by an
        authorized Company representative will be considered valid and honorable
        by the
        Company.  Verbal offers will not be acknowledged or honored for any
        reason or from any person.

    

     

     

    EMPLOYMENT
      CONFIRMATION

    

    

    I,
      Jack
      Ehren, accept Key Technology, Inc.’s offer of employment for the position of
Sr. Vice President and Chief Financial Officer (CFO).  I
      understand the terms and conditions of the employment offer as described in
      my
      offer letter.  I also acknowledge that the employment is of an “at
      will” nature, which means that I may resign at anytime and my Employer may
      discharge me at any time, with or without cause.

     

    

    /s/
      John J.
      Ehren                                                        1/22/2008

    Jack
      Ehren                                                                   Date

     

    /s/
      David M.
      Camp                                                    1/22/2008

    David
      Camp                                                                Date

    President
      and Chief Executive OfficerEX-10.1

 

Exhibit 10.1

Summary of Special Payment

to the non-executive Chairman of the Board

On November 29, 2007, the Board of Directors of CA, Inc. (the “Company”), upon the recommendation
of the Corporate Governance Committee, approved a special payment in the form of 10,000 deferred
stock units to William McCracken, the non-executive Chairman of the Board (who functions as the
Company’s Lead Director) under the Company’s 2003 Compensation Plan for Non-Employee Directors.

The special payment was in recognition of the extraordinary amount of work performed by Mr.
McCracken in connection with his transition from a director to non-executive Chairman of the Board.
The deferred stock units will be settled by the issuance of shares of the Company’s common stock
on a one-for-one basis in a lump sum on the first business day of the calendar year following the
year in which Mr. McCracken ceases to serve as a director of the Company.

Mr. McCracken abstained from the Board decision on this matter.

56

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