SEC Contract Filing

Filing Date: 2018-02-15

Document Content:
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<TYPE>EX-10.23
<SEQUENCE>3
<FILENAME>cray-12312017xex1023.htm
<DESCRIPTION>EXHIBIT 10.23
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<div><a name="s1f733f2a68694ec893903de52154b33e"></a></div><div><div style="line-height:120%;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div></div><div><br></div><div style="line-height:120%;padding-top:12px;text-align:right;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;font-weight:bold;">Exhibit 10.23 </font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">November 11, 2016</font></div><div style="line-height:120%;padding-top:12px;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Stathis Papaefstathiou</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">xxxxxxxx</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">xxxxxx, WA xxxxx</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">Dear Stathis,</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">We are very pleased to extend this offer to join Cray lnc. as our SVP of Research and Development, reporting to Peter Ungaro, President and CEO. Your start date is January 9, 2017. Your starting base salary will be $350,000 annually (base salary is payable bi-weekly and is referred to in annual terms as a convenience and does not constitute a commitment of continued employment).</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">You are eligible to participate in the Cray Executive Bonus Plan. Our 2017 plan has not yet been developed and approved by our Board of Directors but you will be eligible for whatever it is set at for the SVP level. Your annual bonus target for 2017 will be 65% of salary, and provided that you remain employed by Cray through December 31 of 2017, Cray will guarantee a payout of at least 50% of that target for 2017. Since your hire date is after January 3, 2017, the bonus will also be prorated to reflect the actual part of the year you are employed by Cray.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">The Company will also pay you a signing bonus in the gross amount of $50,000 (minus applicable taxes and withholdings) as soon as practicable following your start date. In the event you voluntarily leave the Company or are terminated for &#8220;Cause&#8221; (as defined in the Executive Severance Policy) (1) within the first 12 months of employment you must repay the gross value of the signing bonus and (2) between 12 and 24 months you must repay 50% of the gross value of the signing bonus, in each case within 14 days of your termination date. You hereby agree that Cray may withhold as much of this repayment obligation as is feasible from any final payments to you (including, but not limited to, unpaid salary or unreimbursed expenses), and that you will reimburse any remainder within 14 days of your termination date.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">ln connection with your hire and subject to approval of the Compensation Committee of Cray's Board of Directors (the &#8220;Compensation Committee"), you will receive an initial equity grant of 36,000 time-vesting restricted stock units (vesting 25% after each year subject to continuous service requirements). You will also receive 26,000 shares of performance vesting restricted stock units (the &#8220;Performance Equity&#8221;) with terms comparable to that given to other executive recipients. </font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">All grants, including the initial grants and the Performance Equity, will be pursuant to the terms of the 2013 Cray Equity Plan and contingent upon approval of each grant by the Compensation Committee. Obviously, we all hope that Cray prospers and that the Company's stock reflects that success.</font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;"><br></font></div><div style="line-height:120%;text-align:left;font-size:10pt;"><font style="font-family:inherit;font-size:10pt;">As an employee of the Company, you will have access to certain confidential information of the Company and you may, during the course of your employment