Cambridge Display Technology Limited, a subsidiary of Cambridge Display Technology, Inc. (collectively, the "Company"), and Jim Veninger entered into an employment agreement appointing him as Vice-President, Technology Development. Mr Veninger will join the Company on November 1, 2006. Pursuant to this agreement, Mr. Veninger will receive an annual salary of GBP 150,000 (or $283,500 at an exchange rate of 1.89 dollars to 1 pound sterling as published in the Financial Times of London for October 30, 2006). Mr. Veninger is also eligible (1) to receive an annual bonus of up to 35 percent of his base salary, (2) to participate in our stock incentive plans, our benefits program, including pension contributions, private health insurance and life insurance, and (3) for the Company's relocation benefits. Mr. Veninger will be awarded 80,000 restricted stock units pursuant to the Company's stock incentive plan.

        Mr. Veninger's employment agreement is for an indeterminate period of time, but may be terminated by either party with six months' notice or by the Company without notice for gross misconduct and will automatically terminate upon reaching the normal retirement age. During any notice period, Mr. Veninger may not work for any other employer without the Company's permission and upon termination will be subject to customary six-month non-compete and non-solicitation provisions.

        The employment agreement with Mr. Veninger is filed as Exhibit 10.1 to this Current Report on Form 8-K. The Company and Mr. Veninger have also entered into an indemnification agreement in the form previously filed as Exhibit 10.46 to the Company's Annual Report on Form 10-K for its fiscal year ended December 31, 2005.

STEPHEN CHANDLER

        On October 27, 2006, the Company and Stephen Chandler, the Company's Vice President, Legal and Intellectual Property, entered into an agreement in connection with his resignation described under Item 5.02 below, effective on March 31, 2007. Pursuant to this agreement, Mr. Chandler is entitled to, among other things, a payment of GBP 50,000 (or $94,500 at the exchange rate described above), which is payable within 14 days after the effective date of his resignation. Mr. Chandler will not be required to attend the Company's office during the period from January 1, 2007 through the effective date of his resignation, but he has agreed to make himself available to deal with and use his reasonable endeavors to help with such work-related matters as may be reasonably requested by the Company. During this period, the Company will continue to provide to Mr. Chandler all benefits to which he was entitled under his employment agreement with the Company, which is filed as Exhibit 10.31 to the Company's Annual Report on Form 10-K for its fiscal year ended December 31, 2005. In addition, all of the shares granted to Mr. Chandler pursuant to the Company's special bonus plan will vest upon the effective date of his resignation.

        The agreement with Mr. Chandler is filed as Exhibit 10.2 to this Current Report on Form 8-K.

DAVID FYFE

        On October 27, 2006, the Company entered into a new employment agreement with Dr. David Fyfe, the Company's Chief Executive Officer. Pursuant to this agreement, Dr. Fyfe's employment with the Company will be extended to December 31, 2008 and amendments have been made to Dr. Fyfe's pension payments as required by Section 409A of the Internal Revenue Code.

Pursuant to these new arrangements, Dr. Fyfe's Overseas Benefit Agreement (filed at Exhibit 10.30 to the Company's Annual Report on Form 10-K for its fiscal year ended December 31, 2005) has been terminated and he is no longer required by the Company to be resident in the United Kingdom. This change reflects the growing requirement for Dr. Fyfe to be present in the United States in order to be close to the Company's investor base. As a result of this change, Dr. Fyfe will no longer receive ex-patriate allowances and benefits but will still be required to travel extensively throughout the world in his role as Chief Executive Officer. Dr. Fyfe's maximum annual bonus payment has increased from 45 percent to 65 percent of his annual base salary. The Company will continue to provide personal tax compliance advice to assist Dr. Fyfe in fulfilling his legal obligation to file tax returns in multiple tax jurisdictions, an obligation which results from his role as Chief Executive Officer. The other terms of the new employment agreement are otherwise consistent with the prior agreement.

        The new employment agreement with Dr. Fyfe is filed as Exhibit 10.3 to this Current Report on Form 8-K.

RETIREMENT AGE

        The Company has appointed Jim Veninger as Vice-President of Technology Development, effective November 1, 2006. Mr. Veninger, 45, previously served in various senior management and executive roles at Philips. Most recently, he served as Vice President of Operational Excellence for Philips Semiconductors Division. During his tenure at Philips, Mr. Veninger also served as Vice President and General Manager of its Emerging Display Technologies division from 2002 to 2005, the Philips entity responsible for the OLED and E-Ink displays businesses, which commercialised the Company's technology in the form of shaver screens and cell-phone sub-displays. There was no arrangement or understanding between Mr. Veninger and any other persons pursuant to which Mr. Veninger was appointed Vice-President of Technology Development and there are no related party transactions between Mr. Veninger and the Company. Mr. Veninger's employment agreement with the Company is described in Item 1.01 above.

Mr. Veninger will oversee the Company's product and technology development and will also assume responsibility for the management of the Company's legal and intellectual property activities.

STEPHEN CHANDLER

        Stephen Chandler has resigned from the position of Vice-President Legal and Intellectual Property, effective on March 31, 2007, to pursue an employment opportunity involving less time away from home. Mr. Chandler has been a long-distance commuter since joining the Company in 2003.