Document:

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EXHIBIT 10.1

AMENDMENT NO. 1

to

EMPLOYMENT AGREEMENT

     THIS AMENDMENT NO. 1 TO EMPLOYMENT AGREEMENT (this “Amendment”) is dated as of
September 29, 2006, by and between International Game Technology, a Nevada corporation (the
“Corporation”), and Thomas J. Matthews (the “Executive”).

     WHEREAS, the Executive is currently employed by the Corporation pursuant to that certain
Employment Agreement, dated as of October 27, 2003 (the “Agreement”); and

     WHEREAS, the Corporation and the Executive desire to amend the Agreement, as provided herein.

     NOW, THEREFORE, the parties agree as follows:

     1. The first sentence of Section 1 of the Agreement shall be amended by adding “President and”
before “Chief Executive Officer.”

     2. The bullet-point list in Section 1 of the Agreement shall be amended by adding a bullet
point that the Executive will be responsible for directing the international operations of the
Corporation.

     3. The second paragraph of Section 1 of the Agreement shall be deleted.

     4. Section 2 of the Agreement shall be amended and restated to read in its entirety as
follows:

     “2. Term. The “Term” shall, unless sooner terminated as provided
herein, commence on the Effective Date and end at the close of business on October 26, 2009
(referred to as the “Initial Extension Date”). Notwithstanding the preceding
sentence, on the Initial Extension Date and on each annual anniversary of the Initial
Extension Date (the Initial Extension Date and each annual anniversary thereof is referred
to as an “Extension Date”), the Term shall be automatically extended through and
shall end with the close of business on the first (1st) anniversary of that Extension Date,
unless at least sixty (60) days prior to such Extension Date the Corporation or the
Executive has provided the other with written notice that the Term shall not be extended or
further extended, as the case may be. The term “Term” shall include any extension
thereof pursuant to the preceding sentence. Provision of notice that the Term shall not be
extended or further extended, as the case may be, shall not constitute a breach of this
Agreement, and shall not entitle the Executive to severance benefits pursuant to Section 7.”

     5. Section 3.1 of the Agreement shall be amended by deleting “Six Hundred Fifty Thousand
Dollars ($650,000)” and replacing it with “Eight Hundred Thousand Dollars ($800,000).

 

 

     6. Section 3.2 of the Agreement shall be amended and restated, effective for the fiscal year
beginning October 1, 2006, to read in its entirety as follows:

     “3.2 Bonus Opportunity. For each fiscal year of the Corporation during the Term,
commencing with the fiscal year beginning October 1, 2006, the Corporation shall grant to
the Executive the opportunity to earn a bonus up to a maximum amount of Three Hundred
Percent (300%) of the Executive’s Base Salary for such year. A portion of each such bonus
opportunity will be based on quantitative measurements of the Corporation’s profitability,
and the remainder of each such bonus opportunity will be based on a qualitative assessment
of the Corporation’s financial performance and/or other strategic objectives established
with respect to that year, each as determined by the Compensation Committee of the Board.
The Executive’s bonus target for each such fiscal year shall be Two Hundred Fifty Percent
(250%) of the Executive’s Base Salary for such year. The specific bonus opportunity with
respect to a particular fiscal year will be established by the Compensation Committee prior
to or within the first three months of that fiscal year.”

     7. Section 3.3 of the Agreement shall be amended and restated to read in its entirety as
follows:

     “3.3 Future Annual Equity Grants. The Executive shall be eligible to participate in
and receive annual grants commensurate with his position and level in any stock option plan
and restricted stock plan or other equity-based or equity related compensation plan,
programs or agreements of the Corporation made available generally to its senior executives;
provided that the amount, timing, and other terms of any such grant shall be determined by
the Board (or the Compensation Committee thereof) in its sole discretion.”

     8. A new Section 8.13 is hereby added to the Agreement to read in its entirety as follows:

     “8.13 Section 409A Savings Clause. If any provision of this Agreement contravenes
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), the
regulations promulgated thereunder or any related guidance issued by the U.S. Treasury
Department, the Corporation may reform this Agreement or any provision hereof to maintain to
the maximum extent practicable the original intent of the provision without violating the
provisions of Section 409A of the Code. Notwithstanding any provision of this Agreement to
the contrary, if the Executive is a “specified employee” as defined in Code Section 409A,
the Executive shall not be entitled to any payments upon a termination of his employment
until the earlier of (i) the date which is six (6) months after his termination of
employment for any reason other than death, or (ii) the date of the Executive’s death. Any
amounts otherwise payable to the Executive following a termination of his employment that
are not so paid by reason of this Section 8.12 shall be paid as soon as practicable after
the date that is six (6) months after the termination of the Executive’s employment (or, if
earlier, the date of the Executive’s death). The provisions of this Section 8.12 shall only
apply if, and to the extent, required to comply with Code Section 409A.”

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     9. Except as expressly modified herein, the Agreement shall remain in full force and effect in
accordance with its original terms.

     10. Capitalized terms that are not defined herein shall have the meanings ascribed to them in
the Agreement.

     11. This Amendment may be executed in one or more counterparts, each of which shall be deemed
an original, but all of which together shall constitute one and the same instrument.

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     IN WITNESS WHEREOF, the parties have caused this Amendment to be duly executed and delivered
on the day and year first above written.

	 	 	 	 	 
	 	INTERNATIONAL GAME TECHNOLOGY

 	 
	 	By:  	 	 
	 	 	 	 
	 	 	 	 
	 
	 	EXECUTIVE

 	 
	 	                          /s/ Thomas J Matthews
 	 
	 	Thomas J. Matthews 	 
	 	 	 
	 

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EXHIBIT 10.2

INTERNATIONAL GAME TECHNOLOGY

2002 STOCK INCENTIVE PLAN

RESTRICTED STOCK AWARD AGREEMENT

     THIS RESTRICTED STOCK AWARD AGREEMENT (this “Award Agreement”) is dated as of September 29,
2006 (the “Award Date”) by and between International Game Technology, a Nevada corporation (the
“Corporation”), and Thomas J. Matthews (the “Participant”).

W I T N E S S E T H

     WHEREAS, pursuant to the International Game Technology 2002 Stock Incentive Plan, as amended
(the “Plan”), the Corporation hereby grants to the Participant, effective as of the date hereof, a
restricted stock award (the “Award”), upon the terms and conditions set forth herein and in the
Plan.

     NOW THEREFORE, in consideration of services rendered and to be rendered by the Participant,
and the mutual promises made herein and the mutual benefits to be derived therefrom, the parties
agree as follows:

     1. Defined Terms. Capitalized terms used herein and not otherwise defined herein
shall have the meaning assigned to such terms in the Plan.

     2. Grant. Subject to the terms of this Award Agreement, the Corporation hereby grants
to the Participant an Award with respect to an aggregate of 71,500 restricted shares of Common
Stock of the Corporation (the “Restricted Stock”).

     3. Vesting. Subject to Section 8 below, the Award shall vest, and restrictions (other
than those set forth in Section 6.4 of the Plan) shall lapse, with respect to twenty percent (20%)
of the total number of shares of Restricted Stock on November 9, 2007, thirty percent (30%) of the
total number of shares of Restricted Stock on November 14, 2008, and fifty percent (50%) of the
total number of shares of Restricted Stock on November 13, 2009 (in each case, such number of
shares being subject to adjustment under Section 6.2(a) of the Plan). The Board reserves the right
to accelerate the vesting of the Restricted Stock in such circumstances as it, in its sole
discretion, deems appropriate and any such acceleration shall be effective only when set forth in a
written instrument executed by an officer of the Corporation.

     4. Continuance of Employment. The vesting schedule requires continued employment or
service through each applicable vesting date as a condition to the vesting of the applicable
installment of the Award and the rights and benefits under this Award Agreement. Employment or
service for only a portion of the vesting period, even if a substantial portion, will not entitle
the Participant to any proportionate vesting or avoid or mitigate a termination of rights and
benefits upon or following a termination of employment or services as provided in Section 8 below
or under the Plan.

     Nothing contained in this Award Agreement or the Plan constitutes an employment or service
commitment by the Corporation, affects the Participant’s status as an employee at will who is
subject to termination without cause, confers upon the Participant any right to remain

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employed by or in service to the Corporation or any of its Subsidiaries, interferes in any way
with the right of the Corporation or any of its Subsidiaries at any time to terminate such
employment or services, or affects the right of the Corporation or any of its Subsidiaries to
increase or decrease the Participant’s other compensation or benefits. Nothing in this paragraph,
however, is intended to adversely affect any independent contractual right of the Participant
without his or her consent thereto.

     5. Dividend and Voting Rights. After the Award Date, the Participant shall be
entitled to cash dividends and voting rights with respect to the shares of Restricted Stock subject
to the Award even though such shares are not vested, provided that such rights shall terminate
immediately as to any shares of Restricted Stock that are forfeited pursuant to Section 8 below.

     6. Restrictions on Transfer. Prior to the time that they have become vested pursuant
to Section 3 hereof or Section 6.2 of the Plan, neither the Restricted Stock, nor any interest
therein, amount payable in respect thereof, or Restricted Property (as defined in Section 9 hereof)
may be sold, assigned, transferred, pledged or otherwise disposed of, alienated or encumbered,
either voluntarily or involuntarily. The transfer restrictions in the preceding sentence shall not
apply to (a) transfers to the Corporation, or (b) transfers by will or the laws of descent and
distribution.

     7. Stock Certificates.

          (a) Book Entry Form. The Corporation shall issue the shares of Restricted Stock
subject to the Award either: (a) in certificate form as provided in Section 7(b) below; or (b) in
book entry form, registered in the name of the Participant with notations regarding the applicable
restrictions on transfer imposed under this Award Agreement.

          (b) Certificates to be Held by Corporation; Legend. Any certificates representing
shares of Restricted Stock that may be delivered to the Participant by the Corporation prior to
vesting shall be redelivered to the Corporation to be held by the Corporation until the
restrictions on such shares shall have lapsed and the shares shall thereby have become vested or
the shares represented thereby have been forfeited hereunder. Such certificates shall bear the
following legend and any other legends the Corporation may determine to be necessary or advisable
to comply with all applicable laws, rules, and regulations:

“The ownership of this certificate and the shares of stock evidenced hereby and any
interest therein are subject to substantial restrictions on transfer under an
Agreement entered into between the registered owner and International Game
Technology. A copy of such Agreement is on file in the office of the Secretary of
International Game Technology.”

          (c) Delivery of Certificates Upon Vesting. Promptly after the vesting of any shares
of Restricted Stock pursuant to Section 3 hereof or Section 6.2 of the Plan and the satisfaction of
any and all related tax withholding obligations pursuant to Section 10, the Corporation shall, as
applicable, either remove the notations on any shares of Restricted Stock issued in book entry form
which have vested or deliver to the Participant a certificate or certificates evidencing the number
of shares of Restricted Stock which have vested (or, in either case, such lesser number of shares
as may result after giving effect to Section 10). The

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Participant (or the Beneficiary or Personal Representative of the Participant in the event of
the Participant’s death or disability, as the case may be) shall deliver to the Corporation any
representations or other documents or assurances as the Corporation or its counsel may determine to
be necessary or advisable in order to ensure compliance with all applicable laws, rules, and
regulations with respect to the grant of the Award and the delivery of shares of Common Stock in
respect thereof. The shares so delivered shall no longer be restricted shares hereunder.

          (d) Stock Power; Power of Attorney. Concurrently with the execution and delivery of
this Award Agreement, the Participant shall deliver to the Corporation an executed stock power in
the form attached hereto as Exhibit A, in blank, with respect to such shares. The
Corporation shall not deliver any share certificates in accordance with this Agreement unless and
until the Corporation shall have received such stock power executed by the Participant. The
Participant, by acceptance of the Award, shall be deemed to appoint, and does so appoint by
execution of this Award Agreement, the Corporation and each of its authorized representatives as
the Participant’s attorney(s)-in-fact to effect any transfer of unvested forfeited shares (or
shares otherwise reacquired by the Corporation hereunder) to the Corporation as may be required
pursuant to the Plan or this Award Agreement and to execute such documents as the Corporation or
such representatives deem necessary or advisable in connection with any such transfer.

     8. Effect of Termination of Employment or Services.

          (a) General. Subject to Section 8(b), if the Participant ceases to be employed by or
ceases to provide services to the Corporation or a Subsidiary (the date of such termination of
employment or service is referred to as the Participant’s “Severance Date”), the Participant’s
shares of Restricted Stock (and related Restricted Property as defined in Section 9 hereof) shall
be forfeited to the Corporation to the extent such shares have not become vested pursuant to
Section 3 hereof or Section 6.2 of the Plan upon the Severance Date (regardless of the reason for
such termination of employment or service, whether with or without cause, voluntarily or
involuntarily, or due to death or disability). If the Participant is employed by a Subsidiary and
that entity ceases to be a Subsidiary, such event shall be deemed to be a termination of the
employment of the Participant for purposes of this Award Agreement, unless the Participant
otherwise continues to be employed by the Corporation or another of its Subsidiaries following such
event. Upon the occurrence of any forfeiture of shares of Restricted Stock hereunder, such
unvested, forfeited shares and related Restricted Property shall be automatically transferred to
the Corporation as of the Severance Date, without any other action by the Participant (or the
Participant’s beneficiary or personal representative in the event of the Participant’s death or
disability, as applicable). No consideration shall be paid by the Corporation with respect to such
transfer. The Corporation may exercise its powers under Section 7(d) hereof and take any other
action necessary or advisable to evidence such transfer. The Participant (or the Participant’s
Beneficiary or Personal Representative in the event of the Participant’s death or disability, as
applicable) shall deliver any additional documents of transfer that the Corporation may request to
confirm the transfer of such unvested, forfeited shares and related Restricted Property to the
Corporation.

          (b) Certain Terminations of Employment. Notwithstanding Section 8(a) or any other
provision of this Award Agreement or the Plan, in the event that the Participant’s

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employment with the Corporation and its Subsidiaries is terminated by the Corporation or a
Subsidiary at any time without Cause, by the Participant for Good Reason at any time following a
Change in Control, due to the Participant’s death, or due to a good faith determination by the
Board that the Participant has a Disability, the Restricted Stock (and any related Restricted
Property) shall become fully vested and nonforfeitable as of the date of such termination of the
Participant’s employment.

          For purposes of this Section 8(b), the terms “Cause,” “Change in Control” and “Disability”
shall have the meanings ascribed to such terms in that certain Employment Agreement dated October
27, 2003, as amended on September 29, 2006, by and between the Corporation and the Participant (the
“Employment Agreement”); and the term “Good Reason” shall mean shall mean the occurrence of any of
the following: (i) without the Participant’s express written consent, a material reduction of the
Participant’s duties, position or responsibilities relative to the Participant’s duties, position
or responsibilities in effect immediately prior to such reduction, or the removal of the
Participant from such duties, position and responsibilities, unless the Participant is provided
with substantially comparable duties, position and responsibilities; (ii) a reduction by the
Corporation of the Participant’s rate of base salary or target annual bonus opportunity as in
effect immediately prior to such reduction; or (iii) any material breach of the Employment
Agreement by the Corporation; provided that Good Reason shall not exist pursuant to clause (i) or
(iii) above unless the Participant shall have first provided written notice to the Corporation of
the circumstances that would otherwise constitute Good Reason and the Corporation shall have failed
to reasonably cure such circumstances promptly (and in no event more than 30 days after) its
receipt of such notice; further provided that any termination for Good Reason must be made not
later than 90 days after the circumstances giving rise to such claim of Good Reason are first known
to exist (or first reasonably should have been known to exist) by the Participant.

     9. Adjustments Upon Specified Events. Upon the occurrence of certain events relating
to the Corporation’s stock contemplated by Section 6.2(a) of the Plan, the Committee shall make
adjustments in accordance with such section in the number and kind of securities that may become
vested under the Award. If any adjustment shall be made under Section 6.2(a) of the Plan, the
restrictions applicable to such shares of Restricted Stock shall continue in effect with respect to
any consideration, property or other securities (the “Restricted Property” and, for the purposes of
this Award Agreement, “Restricted Stock” shall include “Restricted Property”, unless the context
otherwise requires) received in respect of such Restricted Stock. Such Restricted Property shall
vest at such times and in such proportion as the shares of Restricted Stock to which the Restricted
Property is attributable vest, or would have vested pursuant to the terms hereof if such shares of
Restricted Stock had remained outstanding. To the extent that the Restricted Property includes any
cash (other than regular cash dividends), such cash shall be invested, pursuant to policies
established by the Committee, in interest bearing, FDIC-insured (subject to applicable insurance
limits) deposits of a depository institution selected by the Committee, the earnings on which shall
be added to and become a part of the Restricted Property.

     10. Tax Withholding. The Corporation shall be entitled to require a cash payment by
or on behalf of the Participant and/or to deduct from other compensation payable to the Participant
any sums required by federal, state or local tax law to be withheld with respect to the vesting of

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any Restricted Stock; provided, however, that the Participant or other person in whom the
Restricted Stock vests may irrevocably elect, subject to the prior approval of the Committee and
such rules and procedures as may be established by the Committee, to have the Corporation withhold
and reacquire the appropriate number of whole shares of Restricted Stock, valued at their then Fair
Market Value, to satisfy any withholding obligations of the Corporation or its Subsidiaries with
respect to such vesting at the minimum applicable withholding rates. Any election to have shares
so held back and reacquired shall not be available if the Participant makes or has made an election
pursuant to Section 83(b) of the Code with respect to the Award.

     11. Notices. Any notice to be given under the terms of this Award Agreement shall be
in writing and addressed to the Corporation at its principal office to the attention of the
Secretary, and to the Participant at the Participant’s last address reflected on the Corporation’s
payroll records. Any notice shall be delivered in person or shall be enclosed in a properly sealed
envelope, addressed as aforesaid, registered or certified, and deposited (postage and registry or
certification fee prepaid) in a post office or branch post office regularly maintained by the
United States Government. Any such notice shall be given only when received, but if the
Participant is no longer an Eligible Person, shall be deemed to have been duly given five business
days after the date mailed in accordance with the foregoing provisions of this Section 11.

     12. Plan. The Award and all rights of the Participant under this Award Agreement are
subject to the terms and conditions of the provisions of the Plan, incorporated herein by
reference. The Participant agrees to be bound by the terms of the Plan and this Award Agreement.
The Participant acknowledges having read and understanding the Plan, the Prospectus for the Plan,
and this Award Agreement. Unless otherwise expressly provided in other sections of this Award
Agreement, provisions of the Plan that confer discretionary authority on the Board or the Committee
do not (and shall not be deemed to) create any rights in the Participant unless such rights are
expressly set forth herein or are otherwise in the sole discretion of the Board or the Committee so
conferred by appropriate action of the Board or the Committee under the Plan after the date
hereof.

     13. Entire Agreement. This Award Agreement and the Plan together constitute the
entire agreement and supersede all prior understandings and agreements, written or oral, of the
parties hereto with respect to the subject matter hereof. The Plan may be amended pursuant to
Section 8.6 of the Plan. This Agreement may be amended by the Board from time to time. Any such
amendment must be in writing and signed by the Corporation. Any such amendment that materially and
adversely affects the Participant’s rights under this Agreement requires the consent of the
Participant in order to be effective with respect to the Award. The Corporation may, however,
unilaterally waive any provision hereof in writing to the extent such waiver does not adversely
affect the interests of the Participant hereunder, but no such waiver shall operate as or be
construed to be a subsequent waiver of the same provision or a waiver of any other provision
hereof.

     14. Counterparts. This Award Agreement may be executed simultaneously in any number
of counterparts, each of which shall be deemed an original but all of which together shall
constitute one and the same instrument.

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     15. Section Headings. The section headings of this Award Agreement are for
convenience of reference only and shall not be deemed to alter or affect any provision hereof.

     16. Governing Law. This Award Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Nevada without regard to conflict of law
principles thereunder.

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     IN WITNESS WHEREOF, the Corporation has caused this Award Agreement to be executed on its
behalf by a duly authorized officer and the Participant has hereunto set his or her hand as of the
date and year first above written.

	 	 	 	 	 
	 	INTERNATIONAL GAME TECHNOLOGY,

a Nevada corporation

 	 
	 	By:  	 	 
	 
	 	Print Name:  	 	 
	 
	 	Its:  	 	 
	 
	 	PARTICIPANT

 	 
	 	/s/ Thomas J Matthews
 	 
	 	Signature      	 
	 
	 	Thomas J Matthews
 	 
	 	Print Name      	 

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CONSENT OF SPOUSE

     In consideration of the execution of the foregoing Restricted Stock Award Agreement by
International Game Technology, I, Carolyn Sue Matthews, the spouse of the Participant therein
named, do hereby join with my spouse in executing the foregoing Restricted Stock Award Agreement
and do hereby agree to be bound by all of the terms and provisions thereof and of the Plan.

Dated: September 29, 2006

	 	 	 	 	 
	 	 	 
	 	                                          /s/ Carolyn Sue Matthews
 	 
	 	Signature of Spouse      	 
	 
	 	 Carolyn Sue Matthews
 	 
	 	Print Name      	 

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EXHIBIT A

STOCK POWER

     FOR VALUE RECEIVED and pursuant to that certain Restricted Stock Award Agreement between
International Game Technology, a Nevada corporation (the “Corporation”), and the individual named
below (the “Individual”) dated as of                     , 2006, the Individual, hereby sells, assigns and
transfers to the Corporation, an aggregate                                 shares of Common Stock of the Corporation,
standing in the Individual’s name on the books of the Corporation and represented by stock
certificate number(s)                                          to which this instrument is
attached, and hereby irrevocably constitutes and appoints                                          as his or her attorney in fact and agent to transfer such
shares on the books of the Corporation, with full power of substitution in the premises.

Dated                     ,                    

	 	 	 	 	 
	 	 	 
	 	                                                       /s/ Thomas J Matthews
 	 
	 	Signature      	 
	 
	 	                                                       Thomas J Matthews
 	 
	 	Print Name      	 

(Instruction: Please do not fill in any blanks other than the signature line. The purpose of
the assignment is to enable the Corporation to exercise its sale/purchase option set forth in the
Restricted Stock Award Agreement without requiring additional signatures on the part of the
Individual.)

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