Cambridge Display Technology Limited 181a Huntingdon Road Cambridge CB3 0DJ England

Exhibit 10.1

Cambridge Display Technology Limited

181a Huntingdon Road

Cambridge CB3 0DJ

England

July 27, 1999

Kelso & Company, L.P.

320 Park Avenue

New York, New York 10022

USA

Ladies and Gentlemen:

Cambridge Display Technology Limited (the “Company”) hereby agrees to retain you, Kelso & Company, L.P. (“Kelso”), to provide consulting and advisory services to the Company commencing on the date hereof for a term ending on the date on which Kelso and its affiliates cease to own any shares of common stock of the Company. Such services may include such consulting and advisory services in the ordinary course of business as the Company may reasonably request.

If Kelso or any of its affiliates or designees (the “Kelso Group”) provides consulting or advisory services specifically requested by the Company out of the ordinary course of business to the Company or any of its affiliates on one or more occasions after the date hereof, then, in each such case, the Company and Kelso will negotiate in good faith to effect a mutually acceptable advisory fee. The Company will also reimburse Kelso promptly for the Kelso Group’s out-of-pocket costs and expenses incurred in connection with the investment by the Kelso Group in CDT Acquisition Corp. (“CDT Acquisition”) and the performance of Kelso’s duties hereunder, but excluding in any case the fees, costs or expenses of any consultants to the Kelso Group. Any arrangements for the payment of such fees, costs or expenses of consultants will be handled under separate agreements between the Company and Kelso.

The Company will indemnify Kelso and its affiliates, and their respective officers, directors, employees, agents and control persons (as such term is used in the Securities Act of 1933, as amended, and the rules and regulations thereunder) to the full extent lawful against any and all claims, losses and expenses as incurred (including all reasonable fees and disbursements of any such indemnitee’s counsel and other out-of-pocket expenses incurred in connection with the investigation of and preparation for any such pending or threatened claims and any litigation or other proceedings arising therefrom) arising in connection with such indemnitee’s investment in CDT Acquisition or

out of any services rendered by Kelso hereunder or any such indemnitee being a controlling person of the Company or any of its subsidiaries, provided, however, there shall be excluded from such indemnification any such claim, loss or expense that is based upon any action or failure to act by such indemnitee that is found in a final judicial determination to constitute gross negligence or intentional misconduct on such indemnitee’s part. The Company will advance costs and expenses, including attorney’s fees, incurred by any such indemnitee in defending any such claim in advance of the final disposition of such claim upon receipt of an undertaking by or on behalf of such indemnitee to repay amounts so advanced if it shall ultimately be determined that such indemnitee is not entitled to be indemnified by the Company pursuant to this Agreement.

The Company’s obligations set forth in this Agreement shall survive the termination of Kelso’s services pursuant to the first paragraph of this Agreement.

This agreement shall be governed by the laws of the State of New York.

If you are in agreement with the foregoing, kindly so indicate by signing a counterpart of this letter, whereupon it will become a binding agreement between us.