Document:

Exhibit 10.1

 

Exhibit 10.1

RETIREMENT AGREEMENT

     THIS RETIREMENT AGREEMENT (this “Agreement”) is made and entered into this 21st day of
February 2007 (the “Effective Date”), by and between International Game Technology, a
Nevada corporation (the “Company”) and Maureen Mullarkey (the “Executive”).

RECITALS

     The Executive is currently employed by the Company as its Executive Vice President, Chief
Financial Officer and Treasurer.

     The Executive and the Company are parties to an Employment Agreement dated as of January 12,
2001 and as subsequently amended by an Amended Employment Agreement dated as of January 27, 2003
(together, the “Employment Agreement”).

     The Executive desires to retire from employment with the Company on January 22, 2008,
following the expiration of her existing employment contract. The Company desires Executive’s
continued service for a transition period following the selection and engagement of a successor
Chief Financial Officer. Accordingly, the Company and the Executive each voluntarily enter into
this Agreement to provide for that transition and the Executive’s retirement from employment.

     NOW, THEREFORE, in consideration of the above recitals incorporated herein and the mutual
covenants and promises contained herein and other good and valuable consideration, the receipt and
sufficiency of which are hereby expressly acknowledged, the Company and the Executive agree as
follows:

     1. Retirement. The Executive hereby irrevocably and voluntarily resigns her position as
Executive Vice President, Chief Financial Officer and Treasurer of the Company and as a member,
manager, or director of, and from each and every other office and position with, the Company and
each of its subsidiaries or affiliates effective as of the first to occur of (1) the date that a
successor Chief Financial Officer is selected, appointed and actively employed by the Company, (2)
the close of business on January 22, 2008, or (3) such other date as the parties may mutually agree
upon (the applicable date, the “CFO Transition Date”). The Executive hereby irrevocably
and voluntarily retires from employment with the Company and each of its subsidiaries and
affiliates effective as of the close of business on January 22, 2008 (the “Retirement
Date”).

     2. Transition. For the period of time from the CFO Transition Date to the Retirement Date
(the “Transition Period”), the Executive shall continue to be employed by the Company but
shall not be an officer of the Company. During the Transition Period, the Executive shall report
to the Company’s Chief Executive Officer and shall assist the Company’s Chief Executive Officer and
the Company’s Chief Financial Officer on such matters as are within her expertise and experience
with the Company.

     3. Compensation. The Executive’s compensation pursuant to the Employment Agreement shall
remain unchanged for the period of time through the end of the Transition Period, except as
provided in this Section 3. The Executive’s bonus opportunity with respect to

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the Company’s fiscal year ending on or about September 30, 2007 and any period thereafter but
prior to the Retirement Date shall be determined by the Compensation Committee of the Company’s
Board of Directors in its sole discretion and in each case without regard to services performed by
the Executive after the CFO Transition Date. Notwithstanding Section 3.3 of the Employment
Agreement, no portion of the fiscal 2007 bonus, if any, or any other bonus, if any, earned
hereunder for any period thereafter shall be treated as Deferred Bonus (as such term in used in the
Employment Agreement). The Executive shall not, after the date of this Agreement, be entitled to
any new grant of stock options, stock appreciation rights, restricted stock, restricted stock
units, or other short- or long-term incentive awards. The Executive’s outstanding stock options to
acquire Company common stock and shares of restricted stock (collectively, the “Equity Awards”)
shall remain subject to their applicable terms and conditions. For purposes of clarity and without
limiting the generality of the preceding sentence, the Equity Awards shall terminate on the
Retirement Date to the extent they do not vest in accordance with their usual terms on or before
that date and any then-vested options shall remain exercisable for the limited post-termination of
employment period determined in accordance with the terms and conditions of such options.

     4. No Reinstatement; No Severance Benefits. The Executive waives any right or claim to
reinstatement as an employee of the Company and each of its affiliates after the Retirement Date.
The Executive shall have no further employment or contractual relationship with the Company and
each of its subsidiaries and affiliates after the Retirement Date (except as to the contractual
relationship that arises out of this Agreement, any existing Indemnity Agreement, any equity award
agreement (including non-competition provisions contained therein) and any right to vested benefits
under any written benefit plan or equity incentive plan of the Company). The Executive’s
retirement is a voluntary retirement by the Executive — the Executive shall not be entitled to
severance pay or benefits pursuant to Section 7.5 of the Employment Agreement or any other
severance plan, program or policy.

     5. Restrictive Covenants. For purposes of clarity and without limiting any other obligation
the Executive may owe to the Company, Section 4 of the Employment Agreement (Confidential
Information) shall continue in effect for the Transition Period and following the Retirement Date
for as long as the Executive has any confidential information covered by such provision and Section
6.3 of the Employment Agreement (Non-Solicitation) shall continue in effect during the Transition
Period and the 12-month period after the Retirement Date. For purposes of clarity, Section 6.1 of
the Employment Agreement (Non-Competition) shall continue in effect for the Transition Period.

     6. Miscellaneous.

          6.1 Governing Law. This Agreement and all rights and obligations hereunder, including,
without limitation, matters of construction, validity and performance, is made under and shall be
governed by and construed in accordance with the internal laws of the State of Nevada, without
regard to principles of conflict of laws.

          6.2 Amendments. No amendment or modification of this Agreement shall be deemed effective
unless made in writing and signed by all of the parties hereto.

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          6.3 No Waiver. No term or condition of this Agreement shall be deemed to have been waived,
nor shall there be any estoppel to enforce any provisions of this Agreement, except by a statement
in writing signed by the party against whom enforcement of the waiver or estoppel is sought. Any
written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate
only as to the specific term or condition waived and shall not constitute a waiver of such term or
condition for the future or as to any act other than that specifically waived.

          6.4 Severability. To the extent any provision of this Agreement shall be invalid or
unenforceable, it shall be considered deleted herefrom and the remainder of such provision and of
this Agreement shall be unaffected and shall continue in full force and effect.

          6.5 Assignment. This Agreement shall not be assignable, in whole or in part, by either party
without the written consent of the other party.

          6.6 Injunctive Relief. The Executive agrees that it would be difficult to compensate the
Company fully for damages for any violation of the provisions of this Agreement, including without
limitation the provisions referenced in Section 5 above. Accordingly, the Executive specifically
agrees that the Company shall be entitled to temporary and permanent injunctive relief to enforce
the provisions of this Agreement and that such relief may be granted without the necessity of
proving actual damages. This provision with respect to injunctive relief shall not, however,
diminish the right of the Company to claim and recover damages in addition to injunctive relief.

          6.7 Arbitration. Any controversy or claim arising out of or relating to this Agreement or
breach thereof, shall be settled by arbitration in the State of Nevada in accordance with the
Voluntary Labor Arbitration Rules of the American Arbitration Association, and judgment upon the
award rendered by the arbitrator may be entered in any court having jurisdiction thereof. In
reaching his or her decision, the arbitrator shall have no authority to change or modify any
provision of this Agreement.

          6.8 Entire Agreement. This Agreement, together with the Employment Agreement, embodies the
entire agreement of the parties hereto respecting the matters within its scope. This Agreement,
together with the Employment Agreement, supersedes all prior or contemporaneous agreements of the
parties hereto and that directly or indirectly bear upon the subject matter hereof. Any
negotiations, correspondence, agreements, proposals or understandings prior to the Effective Date
relating to the subject matter hereof shall be deemed to have been merged into this Agreement and
the Employment Agreement, and to the extent inconsistent with such agreements, such negotiations,
correspondence, agreements, proposals, or understandings shall be deemed to be of no force or
effect. There are no representations, warranties, or agreements, whether express or implied, or
oral or written, with respect to the subject matter hereof, except as expressly set forth herein or
in the Employment Agreement. This Agreement, together with the Employment Agreement, is an
integrated agreement. This Agreement amends the Employment Agreement and, to the extent of any
inconsistency between this Agreement and the Employment Agreement, this Agreement shall control.

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     Any written agreement evidencing a stock option or other equity-based incentive previously
granted by the Company to the Executive and any existing Indemnity Agreement is outside of the
scope of the integration provisions of the preceding paragraph as to the terms and conditions of
the award evidenced by such agreement.

     IN WITNESS WHEREOF, the Executive and the Company have executed this Agreement as of the
Effective Date first set forth above.

	 	 	 	 	 
	 	“EXECUTIVE”
 	 
	 	 	 
	 	Maureen Mullarkey	 
	 	 	 
	 

	 	 	 	 	 
	 	“COMPANY”

International Game Technology,
a Nevada corporation

 	 
	 	By:  	 	 
	 	 	Thomas J. Matthews 	 
	 	 	President, Chief Executive Officer and

Chief Operating Officer 	 
	 

4exv10wxby

 

Exhibit 10-B

Federal Signal Corporation

Management Incentive Plan—Detailed Specifications

The following Management Incentive Plan specifications provide a detailed description of a
new annual incentive bonus arrangement for Federal Signal Corporation executives. The plan will
provide key corporate and business unit executives an opportunity to earn an annual cash award
based on the level of achievement of specific “Economic Value” (“EV”) based goals over a 12-month
period and beyond.

	 	 	 
	Effective Date

	 	The effective date of the plan will
be January 1, 2005, and will replace
the annual bonus opportunity offered
under the existing Management
Incentive Plan.
	 
	 	 
	Performance Period

	 	The measurement period, for earning
an award under this Plan, will be 12
months in length, which will
correspond to the calendar year.
	 
	 	 
	General Plan Concept

	 	Specific EV goals will be
established for each 12-month
performance period (i.e., 3-year
goals stated in annual increments).
The level of achievement of the
preestablished EV goals by the end
of each year will determine the size
of the corresponding bonus earned by
each participant for that year. A
“carry-forward” feature will exist,
such that bonus dollars at or above
target not earned in any year can be
re-earned over the next two years
(50% in the first year, and the
remaining 50% in the second year).
	 
	 	 
	Eligibility

	 	Top executives and key contributors
at both the corporate and business
unit levels (i.e., approximately 240
incumbents) will be eligible to
participate in this Plan for 2005.
This includes corporate officers and
direct reports, and Group and
Business Unit Heads, Vice
Presidents, and specified managers.
	 
	 	 
	Award Opportunities

	 	Minimum, target, and maximum award
opportunities will be established
for each participant based upon a
target percentage of base salary or
midpoint salary data.
	 
	 	 
	 

	 	The minimum opportunity will be 50
percent of target and maximum will
be 200 percent of target (with
target being 100%).

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	Carry-Forward Opportunity

	 	If, in any 12-month bonus plan year,
the maximum bonus opportunity is not
earned, the difference between the
maximum opportunity and the actual
bonus earned, or the “unearned
spread” (“US”) can be re-earned over
the next two years. To achieve this,
performance in the subsequent year
must be at or above target and EV
performance must exceed that of year
1 for any amount to be earned. Fifty
percent of the US can be earned in
the immediately proceeding year,
with the remaining 50 percent being
re-earnable in the year thereafter.
If not re-earned in the specified
year, the opportunity expires.
	 
	 	 
	 

	 	Overlapping unearned spread
opportunities can exist if the
maximum bonus is not earned in
consecutive years.
	 
	 	 
	Performance Metrics/Goals

	 	EV will be the exclusive performance
measure and, thereby, the level of
achievement of the EV goal will
determine 100 percent of each
participant’s bonus.
	 
	 	 
	 

	 	Every three years EV goals will be
established for a three-year period.
These
three-year goals should be
considered fixed, absent the
occurrence of any significant
unforeseeable events. The three-year
goal will be communicated to
participants in terms of three
annual goals. The level of
achievement of the annual goal will
determine the value of the earned
award each year.
	 
	 	 
	Weighting

	 	The level of achievement of the EV
goal will be weighted for corporate,
versus group, versus business unit
performance, dependent upon where
each participant is employed within
the organization.

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	Termination of Employment

	 	If a participant’s employment is
terminated due to normal retirement
(as defined under the Company’s
qualified retirement plan), death,
or permanent disability, at any time
prior to the end of the plan year in
which any annual bonus is otherwise
earned, the participant will receive
a pro rata payout of the actual
bonus earned, based on the number of
days actively employed during the
bonus plan year. This pro rata bonus
will be paid after the end of the
corresponding plan year, at the same
time active participants receive
their bonus payouts. If a
participant’s employment is
terminated for any other reason,
prior to the end of the plan year in
which any annual bonus is otherwise
earned, the participant shall not be
eligible to receive a payout for
that year.
	 
	 	 
	 

	 	Notwithstanding the above, upon a
Change in Control and for two years
thereafter, if a participant’s
employment is terminated
involuntarily by the Company without
Cause, or voluntarily by the
participant for Good Reason, then
the participant shall receive a pro
rata portion of their target bonus
for the year of termination, within
ten calendar days of termination.
“Cause” and “Good Reason” shall have
definitions identical to those
contained in the Executive
Change-in-Control Agreements.
	 
	 	 
	“Umbrella” Pool Plan Design

	 	The plan will be structured so that
payouts will be exempt from the
Internal Revenue Code Section 162(m)
“$1 million” nondeductibility rules.
To accomplish this exemption,
separate and distinct from the EV
plan design, a bonus pool will be
established annually (for the proxy
reported executives) based on a
single, fixed financial metric
(e.g., 1.5% of net income). The
Committee will then use “negative
discretion” to award bonuses based
on the EV performance criteria using
the actual minimum, target, and
maximum award opportunities by
position. As long as the actual
bonuses paid (using the EV criteria)
are less than the amount as
determined by the umbrella pool
approach, all payouts should be
exempt as being “performance based”
under Section 162(m).
	 
	 	 
	 

	 	Note: This approach will require
shareholder approval of the umbrella
pool formula and maximum
opportunities for each proxy
reported participant, among other
details. These provisions will be
made a part of the long-term
incentive plan document (which also
will require shareholder approval
via the next proxy statement).
	 
	 	 
	Deferral of Bonus Dollars

	 	Executives who otherwise participate
in the Company’s voluntarily
deferral plan will be allowed to
voluntary defer all or any portion
of amounts earned under this bonus
plan, subject to properly executed
deferral elections.

Revised – December, 2006

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