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EXHIBIT 10.24

EXECUTION COPY

AMENDED AND RESTATED EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this Agreement), dated as of September 23, 2002, and effective as of January 1, 2002 (the Effective Date), is made by
and between LodgeNet Entertainment Corporation, a Delaware corporation (the
Corporation), and Scott C. Petersen (Executive) with reference to the
following circumstances, namely:

RECITALS



|A. |  | Executive is employed by Corporation as its Chairman of the Board,
President and Chief Executive Officer, and as such is, and will be,
making an important contribution to the development and operation of
Corporations business.             
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|  
|B. |  | On July 22, 1998, Executive and the Corporation entered into an
Employment Agreement (the Employment Agreement).                                                                                                                              
|  
|C. |  | The Corporation and Executive desire to amend and restate the
Employment Agreement and to replace and supersede the Executive
Severance Agreement, dated as of July 25, 1995 (the Severance
Agreement), between the Corporation and Executive.

AGREEMENT

NOW, THEREFORE, in consideration of the provisions of this Agreement,
and other good and valuable consideration, the receipt and sufficiency of which
are hereby acknowledged, the Corporation agrees to continue to employ Executive,
and Executive agrees to continue such employment, upon the following terms and
conditions:

1.     PERIOD OF EMPLOYMENT. The employment of Executive by the
Corporation pursuant to this Agreement shall be for a period (sometimes referred
to herein as the period of employment) beginning on the Effective Date and
continuing, unless sooner terminated as provided in Section 6 herein, through
December 31, 2004; provided, however, that on each succeeding December 31,
commencing December 31,2003, such period of employment shall automatically be
extended for an additional year (to result thereafter in a rolling two year term
of employment hereunder) unless sixty (60) days prior thereto either party
hereto has given written notice to the other that such party does not wish to
extend the period of employment.

2.     DUTIES. During the period of employment, Executive shall serve as
Chairman of the Board, President and Chief Executive Officer of the Corporation,
and in such other additional office or offices to which he shall be elected by
the Board of Directors of the Corporation (Board) with his approval,
performing the duties of such office or offices held at the time and such other
duties not inconsistent with his position as such an officer or director as are
assigned to him by the Board or committees of the Board. During the period of
employment, Executive shall devote his full time and attention to the business
of the Corporation and the discharge of the aforementioned duties, except for
permitted vacations, absences due to illness, and reasonable time for attention
to personal affairs and charitable activities, including without





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limitation
serving as a director on the boards of directors of Avera McKennan Hospital and
the South Dakota Symphony Orchestra.

3.     OFFICE FACILITIES. During the period of employment, Executive shall
have his office where the Corporations principal executive offices are located
from time to time, which currently are at 3900 West Innovation Street, Sioux
Falls, South Dakota, and the Corporation shall furnish Executive with office
facilities reasonably suitable to his position at such location.

4.     COMPENSATION. As compensation for his services performed hereunder,
the Corporation shall pay or provide to Executive the following:



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| | (a) Base Salary. The Corporation shall pay Executive a base
salary (the Base Salary), calculated at the rate of Four Hundred
Twenty Five Thousand Dollars ($425,000.00) per annum (which Base
Salary may be increased, but not reduced, by the Board at any time and
from time to time in its discretion), payable monthly, semi-monthly or
weekly according to the Corporations general practice for its
executives, for the period of employment under this Agreement.
Executives Base Salary shall be reviewed by the Board and shall be
subject to increase each year by an amount determined by the Board.
Such Base Salary, including any such annual increases (which shall be
considered part of the Base Salary), shall not be reduced during the
period of employment hereunder.



| |           
| | ----------
| | (b) Bonus.



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| | (i) Executive shall be eligible to receive in cash
an annual performance bonus (the Bonus) of up to 105% of
Executives then current Base Salary at the end of each such
calendar year in which he remains employed. With respect to
calendar years 2002, 2003 and 2004, Executive shall be
eligible for a Bonus based upon meeting a performance target
set by the Board as follows:

| |  |                         |  |   |  |                   
| |  | ----------------------- |  | - |  | ------------------
| |  | Less than 75% of target |  | = |  | no bonus          
| |  |                         |  |   |  |                   
| |  | 75% of target           |  | = |  | 35% of Base Salary
| |  |                         |  |   |  |                   
| |  | 100% of target          |  | = |  | 70% of Base Salary



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| | If Executive achieves between 75% and 100%, or in
excess of 100%, of such target, Executives Bonus shall
increase incrementally in proportion to the percentage
achievement of such target For example, if Executive
achieves 80% of such target, Executives Bonus would be
equal to 42% of Base Salary. For each of calendar years
2002, 2003 and 2004, the Board, in consultation with
Executive, shall determine the targets referred to above and
the criteria for determining whether such targets have been
achieved.



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| | -------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) For calendar year 2005 and subsequent years,
Executive shall be eligible for a Bonus at the end of such
calendar year. The Board shall develop the

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| | bonus formula, targets and criteria for determining
achievement of such targets in consultation with Executive.



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| | (iii) The Bonus targets and criteria for
determining achievement of such targets, as well as the
bonus formula for calendar years 2005 and subsequent, shall
be referred to herein as the Bonus Plan. The Bonus Plan
for 2002 is attached to this Agreement as Exhibit A hereto.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                     
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) Other Bonus and Incentive Plans. During the period of
employment, Executive shall be allowed to participate in such bonus
and other incentive compensation programs in accordance with their
terms as the Corporation may have in effect from time to time for its
executive personnel, other than any annual cash bonus plan (which is
dealt with in Section 4(b) hereof), and all compensation and other
entitlements earned thereunder shall be in addition to, and shall not
in any way reduce, the amount payable as Base Salary and Bonus.



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| | (d) Health, Welfare and Retirement Plans: Vacation. During
the period of employment, Executive shall be entitled to:



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| | (i) participate in such retirement, deferred
compensation, investment, health (medical, hospital and/or
dental) insurance, life insurance, disability insurance,
flexible benefits arrangements and accident insurance plans
and programs as are maintained in effect from time to time
by the Corporation for its executive employees;



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| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) participate in other non-duplicative benefit
programs which the Corporation may from time to time offer
generally to executive personnel of the Corporation;



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| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) cash payments in addition to Base Salary,
Bonus, or any other benefits hereunder, in an annual amount
equal to 7.5% of Executives Base Salary in effect in the
year in which such amount is paid, to enable the Executive
to buy such other benefits as Executive deems necessary or
advisable; such amount shall be paid annually in twelve
equal monthly installments on or about the 20th day of each
month, and to the extent permitted by law shall be paid on a
pre-tax basis; and



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| | -----------------------------------------------------------------------------------------------------------------------------------------
| | (iv) take vacations and be entitled to sick leave
in accordance with the Corporations policy for executive
personnel of the Corporation.



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| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (e) Equity Incentive Awards. Executive shall receive annual
awards of options to purchase the Corporations common stock, with the
number and exercise price of such options to be determined by the
Board. In making such determination, the Board shall take into account
Executives individual performance and performance of the Corporation
as a whole, including Executives performance against the then
applicable Bonus Plan targets. Such options shall vest in four equal
installments on the first through fourth anniversaries of grant.

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| | (f) Car Allowance. During the period of employment, the
Corporation shall provide Executive with a monetary allowance in an
amount acceptable to Executive which is approved by the Board for the
lease of a suitable automobile and insurance therefor; provided, that
such amount shall not be less than $1,100 per month.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                    
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| | (g) Expenses. Executive shall be reimbursed for reasonable
business expenses incurred in connection with the performance of his
duties hereunder consistent with the Companys policy regarding
reimbursement of such expenses. In addition, Executive shall be
reimbursed by the Corporation for Executives reasonable and
documented legal and accounting fees incurred in connection with
entering into this Agreement. With respect to any benefits or payments
received or owed to Executive hereunder, Executive shall cooperate in
good faith with the Corporation to structure such benefits or payments
in the most tax efficient manner to the Corporation; provided, that
Executive shall have no obligation to take any action that is
reasonably determined by Executive to be adverse to Executive,
including without limitation agreeing to alter Executives rights
under Section 7(b)(iv) hereof.

5.     EFFECT OF DISABILITY AND CERTAIN HAZARDS. Executive shall not be
obligated to perform the services required of him by this Agreement during any
period in which he is disabled or his health is impaired to an extent which
would render his performance of such services hazardous to his health or life,
and relief from such obligation shall not in any way affect his rights hereunder
except to the extent that such disability may result in termination of his
employment by the Corporation pursuant to Section 6 herein.

6.     TERMINATION OF EMPLOYMENT. The employment of Executive by the
Corporation pursuant to this Agreement may be terminated by the Corporation or
the Executive at any time, as follows:



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| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) Death. In the event of Executives death prior to the
expiration of the period of employment hereunder, such employment
shall terminate on the date of death.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) Permanent Disability. Such employment may be terminated
by the Corporation prior to the expiration of the period of employment
hereunder due to Executives physical or mental disability which
prevents the effective performance by Executive of his duties
hereunder on a full time basis, with such termination to occur on or
after (i) the date on which Executive becomes entitled to disability
compensation benefits under Executives long term disability benefit
policy then in effect, or (ii) in the event that no such policy is in
effect, the date of the determination of an impartial physician in the
manner set forth in the next sentence that Executive is permanently
disabled. Any dispute as to Executives physical or mental disability
shall be settled by the opinion of an impartial physician selected by
the parties or their representatives or, in the event of failure to
make a joint selection after request therefor by either party to the
other, a physician selected by the Corporation, with the fees and
expenses of any such physician to be borne by the Corporation.



| |                                                                                                                                                           
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) Cause. The Corporation, by giving written notice of
termination to Executive, may terminate such employment at any time
prior to the expiration of the

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                              
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| | period of employment hereunder for Cause, which means that such
termination must be due to (1) acts during the term of this Agreement
(A) resulting in a felony conviction under any Federal or state
statute (B) substantial non-performance of Executive of his employment
duties required by this Agreement or (2) Executive willfully engaging
in dishonesty or gross misconduct injurious to the Corporation during
the term of this Agreement, with Cause to be determined in any case
by the Board after reasonable written notice to Executive and an
opportunity for Executive to be heard at a meeting of the Board and
with reasonable opportunity (of not less than 30 days) in the case of
clause (l)(B) to cease substantial non-performance.



| |                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (d) Without Cause. The Corporation may terminate such
employment at any time prior to said date without Cause (which shall
be for any reason not covered by preceding subsections (a) through
(c)) upon 60 days prior written notice to Executive.



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| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (e) By Executive. Executive may terminate such employment at
any time for an applicable Good Reason (subject to Section 6(f)) or
otherwise upon written notice thereof to the Corporation.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (f) Notice of Good Reason. If Executive believes that he is
entitled to terminate his employment with the Corporation for an
applicable Good Reason, he may apply in writing to the Corporation for
confirmation of such entitlement prior to the Executives actual
separation from employment, by following the claims procedure set
forth in Section 11 hereof. The submission of such a request by an
Executive shall not constitute Cause for the Corporation to
terminate Executive under Section 6(c) hereof; and Executive shall
continue to receive all compensation and benefits he was receiving at
the time of such submission throughout the resolution of the matter
pursuant to the procedures set forth in Section 11 hereof. If the
Executives request for a termination of employment for Good Reason is
denied under both the request and appeal procedures set forth in
Sections 11(a) and (b) hereof, then the parties shall promptly submit
the claim to binding arbitration pursuant to Section 11(c) and use
their best efforts to conclude the arbitration within ninety (90) days
after the claim is submitted.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (g) Notice of Termination. Any termination of the
Executives employment by the Corporation or by the Executive (other
than termination based on the Executives death) shall be communicated
by a written Notice of Termination to the other party hereto. For
purposes of this Agreement, a Notice of Termination shall mean a
notice which shall indicate the specific termination provision in this
Agreement relied upon and shall set forth in reasonable detail the
facts and circumstances claimed to provide a basis for termination of
the Executives employment under the provision so indicated. For
purposes of this Agreement, no purported termination shall be
effective without the delivery of such Notice of Termination.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (h) Date of Termination. The date of termination of
Executives employment shall mean (i) if the Executive is terminated
by his death, the date of his death, (ii) if the Executives
employment is terminated due to a permanent disability, thirty (30)
days after the Notice of Termination is given (provided that the
Executive shall not have returned to the performance of his duties on
a full-time basis during such period), (iii) if

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                   
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | the Executives employment is terminated pursuant to a termination for
Cause, the date specified in the Notice of Termination, and (iv) if
the Executives employment is terminated for any other reason, the
date of termination shall be the later of thirty (30) days after
termination as provided by the Notice of Termination or the date of
the final resolution of the arbitration and claims procedures set
forth in Section 11 hereof, unless otherwise agreed by the Executive
and Corporation or otherwise provided in this Agreement.

7.     PAYMENTS UPON TERMINATION.



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| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) Except as otherwise provided in subsection (b) of this
Section 7, upon termination of Executives employment by the
Corporation, all compensation due Executive under this Agreement and
under each plan or program of the Corporation in which he may be
participating at the time shall cease to accrue as of the date of such
termination (except, in the case of any such plan or program, if and
to the extent otherwise provided in the terms of such plan or program
or by applicable law), and all such compensation accrued as of the
date of such termination but not previously paid shall be paid to
Executive at the time such payment otherwise would be due. If the
termination of Executives employment is by the Corporation not for
Cause, or by the Executive for Good Reason, Executive shall be
entitled to a payment equal to the greater of (i) Executives actual
bonus for the preceding year, pro rata based on the portion of the
year ended on the date of the termination, or (ii) the amount which
would have been earned by Executive under his then current Bonus Plan,
pro rata based on the portion of the year ended on the date of
termination, and computed based on actual results for such year. Any
such payment shall be paid to the Executive at the time the Bonus
would otherwise be due.



| |                                                                                                                                                                                                                                                                                                                                                                                                                
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) if Executives employment pursuant to this Agreement is
terminated pursuant to subsection (d) of Section 6 herein, the
Corporation elects at any time not to renew or extend this Agreement
pursuant to Section 1 or Executive terminates this Agreement for Good
Reason, then, in addition to the payments required by subsection (a)
of this Section 7, Executive shall be entitled to and shall receive:



| |                                                                                                                                                                                                                                                                                                                                                 
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) Severance Payment. Executive shall receive a
lump sum cash payment (the Severance Payment) from the
Corporation. The amount of the Severance Payment shall be an
amount equal to the sum of Executives annual Base Salary
and Bonus, multiplied by the Applicable Multiplier (as
hereinafter defined). For purposes of this Section 7(b),



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| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (A) Executives Base Salary shall be the
higher of Executives annual Base Salary in effect
immediately prior to such termination or
Executives annual Base Salary determined pursuant
to Section 4(a), and



| |                                                                                                                                                                                                                                                                                         
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (B) Executives Bonus shall be an amount
equal to the greater of (1) Executives bonus for
the preceding year or (2) an amount (i) for years
2002, 2003 and 2004, determined assuming that
87.5% of the target for such Bonus has been met,
and (ii) for year 2005 and subsequent years,

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| | determined using a formula that results in a Bonus
that is equal to the same percentage of annual
Base Salary as the percentage of annual Base
Salary determined pursuant to Section
7(b)(i)(B)(2)(i) for year 2004.



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| | -------------------------------------------------------------------------------------------------------------------------------------------------
| | The Severance Payment shall be due and payable within 14
days after the date of termination of employment and is
subject to required withholding.



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| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) Acceleration of Vestina. All options to
purchase the Corporations common stock held by Executive at
the time of such termination but still subject to vesting,
shall be fully and immediately vested. All other benefits or
interests of Executive in any of the Corporations plans or
arrangements which are subject to vesting shall be fully and
immediately vested.



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| | (iii) Benefits. During the Severance Period
Executive shall be entitled to the continuation of the same
or equivalent life, health, hospitalization, dental and
disability insurance coverage and other employee insurance
or welfare benefits that he had received (including
equivalent coverage for his spouse and dependent children)
immediately prior to termination of employment, as if he had
continued to be an executive employee of the Corporation. In
the event that Executive is ineligible under the terms of
such insurance to continue to be so covered, the Corporation
shall provide the Executive with substantially equivalent
coverage through other sources or will provide Executive
with a lump sum payment equal to the cost of obtaining such
coverage for the payment period. If Executive prior to
termination of employment hereunder was receiving any
cash-in-lieu payments designed to enable Executive to obtain
insurance coverage of his choosing (including without
limitation the amount referred to in Section 4(d)(iii)), the
Corporation shall, in addition to any other benefits to be
provided under this Section 7(b)(ill), provide Executive
with a lump-sum payment equal to the amount of such in-lieu
payments that Executive would have been entitled to receive
over the payment period. Following the Severance Period,
Executive shall be entitled to receive continuation coverage
under the Consolidated Omnibus Budget Reconciliation Act of
1985, as amended, treating the end of the Severance Period
as a termination of the Executives employment.



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| | (iv) Tax Gross-Up. If any payments received by
Executive pursuant to this Agreement will be subject to the
excise tax (the Excise Tax) imposed by Section 4999 of the
Internal Revenue Code of 1986, as amended (the Code), or
any successor or similar provision of the Code, the
Corporation shall pay to the Executive additional
compensation such that the net amount received by the
Executive after deduction of any Excise Tax (and taking
into account any federal, state and local income taxes
payable by the Executive as a result of the receipt of such
gross-up compensation), shall be equal to the total payments
he would have received had no such Excise Tax (or any
interest or penalties thereon) been paid or incurred. The
Corporation shall pay such additional compensation at the
time when the Corporation withholds such Excise Tax from any
payments to the Executive (or otherwise makes a parachute
payment to Executive). The calculation of the tax gross-up
payment shall be approved by the Corporations

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| |                                                                                               
| | ----------------------------------------------------------------------------------------------
| | independent certified public accounting firm and the
Executives designated financial adviser.

8.     CONFIDENTIAL INFORMATION. Executive shall not at any time during
the period of employment and thereafter disclose to others or use any trade
secrets or any other confidential information belonging to the Corporation or
any of its subsidiaries, including, without limitation, drawings, plans,
programs, specifications and non-public information relating to customers of the
Corporation or its subsidiaries, except as may be required to perform his duties
hereunder. The provisions of this Section 8 shall survive the termination of
Executives employment with the Corporation, provided that after the termination
of Executives employment with the Corporation, the restrictions contained in
this Section 8 shall not apply to any such trade secret or confidential
information which becomes generally known in the trade.

9.     PATENTS AND OTHER INTELLECTUAL PROPERTY. The Corporation shall be
entitled to any and all ideas, know-how and inventions, whether patentable or
not, which Executive shall conceive, make or develop during the period of his
employment with the Corporation, relating to the business of the Corporation or
any of his subsidiaries. Executive shall, from time to time, at the request of
the Corporation, execute and deliver such instruments or documents, and shall
perform or do such acts or things, as reasonably may be requested in order that
the Corporation may have the benefit of such ideas, know-how and inventions and,
in particular, so that patent applications may be prepared and filed in the
United States Patent Office, or in appropriate places in foreign countries,
covering any of the patentable ideas on inventions covered by this Agreement as
aforesaid, including appropriate assignments vesting in the Corporation or any
of its subsidiaries (or any successor to the Corporation or any of its
subsidiaries) full title to any and all such ideas, inventions and applications.

Further, Executive will cooperate and assist the Corporation in the
prosecution of any such applications in order that patents may issue thereon.

10.     NON-COMPETITION; NON-MITIGATION; LITIGATION EXPENSES.



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| | (a) Executive shall not be required to mitigate the amount
of any termination benefits due him under Section 7 herein, by seeking
employment with others, or otherwise, nor shall the amount of such
benefits be reduced or offset in any way by any income or benefits
eamed by Executive from another employer or other source.



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| | (b) For a period of twenty-four months after Executives
termination of employment hereunder, Executive shall not enter into
endeavors that are competitive with the business or operations of the
Corporation in the lodging pay-per-view/guest services market, and
shall not own an interest in, manage, operate, join, control, lend
money or render financial or other assistance to or participate in or
be connected with, as an officer, employee, director, partner,
stockholder (expect for passive investments of not more than a one
percent interest in the securities of a publicly held corporation
regularly traded on a national securities exchange or in an
over-the-counter securities market), consultant or otherwise, any
individual, partnership, firm, corporation or other business
organization or entity that engages in a business which competes with
the Company in the lodging pay-per-view/guest services market. For
these purposes, employment with a vendor of cable

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| | television services shall not be treated as competitive with the
business or operations of the Corporation in the lodging
per-view/guest services market.



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| | (c) For
a period of twenty-four (24) months after
Executives termination of employment hereunder, Executive shall not
hire or attempt to hire any employee of the Corporation, assist in
such hiring by any person or encourage any employee to terminate his
or her employment relationship with the Corporation; provided,
however,
that it shall not be a breach of this Section 10(c) if Executive or
Executives employer hires persons that are at the time employees of
the Corporation as a result of (i) Executive or Executives employer
conducting generalized solicitations by way of advertisements,
engaging firms to conduct searches or by other means that are not
focused on employees of the Corporation, or (ii) Executive or
Executives employer responding to unsolicited requests or contacts by
employees of the Corporation.



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| | (d) The Corporation shall pay Executives out-of-pocket
expenses, including attorneys fees, but not to exceed a total of
$25,000 for any proceeding or group of related proceedings to enforce,
construe or determine the validity of the provisions for termination
benefits in Section 7 herein; provided, however, that if any
arbitration or litigation results in a finding in favor of the
Executive, then Executive will be reimbursed for all reasonable legal
and related costs regardless of the limitation set forth above; and
further provided that in no event will Executive be held liable for
the legal and related costs of the Corporation in an event of a
finding in favor of the Corporation. Executive acknowledges that any
breach of Sections 8, 9 or 10(b) or (c) would damage the Corporation
irreparably and consequently, the Corporation, in addition to any
other remedies available to it, shall be entitled to preliminary and
permanent injunctions, without having to post any bond or other
security.

11.     ADMINISTRATOR AND CLAIMS PROCEDURE.



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| | (a) The Executive, or other person claiming through the
Executive, must file a written claim with the Board as a prerequisite
to the payment of any such claim under this Agreement. The Board shall
make all determinations as to the right of any person to receive
payment of claims under subsections (a) and (b) of this Section 11.
Any denial by the Board of a claim by the Executive, his heirs or
personal representative (the claimant) shall be stated in writing by
the Board and delivered or mailed to the claimant within 10 days after
receipt of the claim, unless special circumstances require an
extension of time for processing the claim. If such an extension is
required, written notice of the extension shall be furnished to the
claimant prior to the termination of the initial 10-day period. In no
event shall such extension exceed a period of 10 days from the end of
the initial period. Any notice of denial shall set forth the specific
reasons for the denial, specific reference to pertinent provisions of
this Agreement upon which the denial is based, a description of any
additional material or information necessary for the claimant to
perfect his claim, with an explanation of why such material or
information is necessary, and any explanation of claim review
procedures, written to the best of the Boards ability in a manner
that may be understood without legal or actuarial counsel.

9



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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) A claimant whose claim has been wholly or partially
denied by the Board may request, within 10 days following the date of
such denial, in a writing addressed to the Board, a review of such
denial. The claimant shall be entitled to submit such issues or
comments in writing or otherwise as he shall consider relevant to a
determination of his claim, and he may include a request for a hearing
in person before the Board. Prior to submitting his request, the
claimant shall be entitled to review such documents as the Board shall
agree are pertinent to his claim. The claimant may, at all stages of
review, be represented by counsel, legal or otherwise, of his choice,
provided that only the first $25,000 of such fees and expenses shall
be borne by the Corporation, unless the claimant is successful, in
which case, all such fees and expenses shall be borne by the
Corporation. All requests for review shall be promptly resolved. The
Boards decision with respect to any such review shall be set forth in
writing and shall be mailed to the claimant not later than 10 days
following receipt by the Board of the claimants request unless
special circumstances, such as the need to hold a hearing, require an
extension of time for processing, in which case the Boards decision
shall be so mailed not later than 20 days alter receipt of such
request.



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) A claimant who has followed the procedure in subsections
(a) and (b) of this section, but who has not obtained full relief on
his claim, may submit such claim for expedited and binding arbitration
of his claim before an arbitrator in Minnehaha County, South Dakota,
in accordance with the commercial arbitration rules of the American
Arbitration Association, as then in effect, or pursuant to such other
form of alternative dispute resolution as the parties may agree
(collectively, the arbitration). The Corporation shall advance the
filing fees, arbitrator fees and other costs required to conduct the
arbitration, as well as up to $25,000 for Executives initial attorney
fees (which fees and costs shall not be recoverable by the
Corporation). The Corporation shall reimburse all of Executives
remaining reasonable fees and expenses if Executive prevails in his
claim, as determined by such arbitrator. The arbitrators sole
authority shall be to interpret and apply the provisions of this
Agreement; the arbitrator shall not change, add to, or subtract from,
any of its provisions. The arbitrator shall have the power to compel
attendance of witnesses at the hearing. Any court having competent
jurisdiction may enter a judgment based upon such arbitration. The
arbitrator shall be appointed by mutual agreement of the Corporation
and the claimant pursuant to the applicable commercial arbitration
rules. The arbitrator shall be a professional person with a national
reputation for expertise in employee benefit matters and who is
unrelated to the claimant and any employees of the Corporation. All
decisions of the arbitrator shall be final and binding on the claimant
and the Corporation.

12.     MISCELLANEOUS.



| |                                                                                                                                                                                                                                                               
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (a) This Agreement shall inure to the benefit of and shall
be binding upon the successors and assigns of the Corporation,
including any party with which the Corporation may merge or
consolidate or to which it may transfer substantially all of its
assets.



| |                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------
| | (b) The rights and obligations of Executive under this
Agreement are expressly declared and agreed to be personal,
nonassignable and nontransferable during

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| |                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------
| | his life, but upon his death this Agreement shall inure to the benefit
of his heirs, legatees and legal representatives of his estate.



| |                                                                                                                                                                                                                                
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (c) The waiver by either party hereto of its rights with
respect to a breach of any provision of this Agreement by the other
shall not operate or be construed as a waiver of any rights with
respect to any subsequent breach.



| |                                                                                                                                                                                                                 
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (d) No modification, amendment, addition, alteration or
waiver of any of the terms, covenants or conditions hereof shall be
effective unless made in writing and duly executed by the Corporation
and Executive.



| |                                                                                                                                                                                       
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (e) This Agreement may be executed in any number of
counterparts, each of which shall be deemed an original, but all of
which together will constitute but one and the same agreement.



| |                                                                                                                                                                           
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (f) This Agreement shall be governed by and construed in
accordance with the laws of the State of South Dakota, without regard
to the conflicts of law principles thereof.



| |                                                                                                                                                                                                                                                          
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (g) if any provision of this Agreement is determined to be
invalid or unenforceable under any applicable statute or rule of law,
it is to that extent to be deemed omitted and it shall not affect the
validity or enforceability of any other provision.



| |                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (h) Any notice required or permitted to be given under this
Agreement shall be in writing, and shall be deemed given when sent by
registered or certified mail, postage prepaid, addressed as follows:

| |  |                        |  |                                                                                                         
| |  | ---------------------- |  | --------------------------------------------------------------------------------------------------------
| |  | If to Executive:       |  | Scott C. Petersen
26 Riverview Heights
Sioux Falls, SD 57105                                            
| |  |                        |  |                                                                                                         
| |  | If to the Corporation: |  | LodgeNet
Entertainment Corporation3900 West Innovation Street
Sioux Falls, SD 57107
Ann: General Counsel

or mailed to such
other person and/or address as the party to be
notified may hereafter have designated by notice given to the other party in a
similar manner.



| |                                                                            
| | ---------------------------------------------------------------------------
| | (i) As used in this Agreement, the following terms have the
meanings given:



| |                                                                                                                                                                                                                                             
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Applicable Multipliershall mean 2, unless
Executives employment is terminated by the Corporation, or
by Executive for Good Reason, within twenty four months of a
Change in Control in which case Applicable Multiplier
shall mean 2.5.



| |                                                                                         
| | ----------------------------------------------------------------------------------------
| | Change in Controlof the Corporation shall mean
the occurrence of any of the following:

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) any person (as such term is used in Sections
13(d) and 14(d) of the Securities Exchange Act of 1934, as
amended (the Exchange Act) in effect on the Effective
Date) or group of persons acting in concert (other than
Corporation or any subsidiary thereof or any employee
benefit plan of Corporation or any subsidiary thereof, or
any underwriter in connection with a firm commitment
public offering of Corporations capital stock) becomes the
beneficial owner (as such term is defined in Rule 13d-3 of
the Exchange Act, except that a person shall also be deemed
the beneficial owner of all securities which such person may
have a right to acquire, whether or not such right is
presently exercisable), directly or indirectly, of
securities of Corporation representing thirty percent (30%)
or more of the combined voting power of Corporations then
outstanding securities ordinarily having the right to vote
in the election of directors (voting stock); or



| |                                                                                                                                                                                                                                                                                                                                                            
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ii) during any period subsequent to the Effective
Date, a majority of the members of the Board shall for any
reason not be (i) the individuals who at the beginning of
such period constitute the Board or (ii) those persons who
are nominated as new directors by a majority of the current
directors or their successors who have been so nominated; or



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) there shall be consummated any merger,
consolidation (including a series of mergers or
consolidations), or any sale, lease, exchange or other
transfer (in one transaction or a series of related
transactions) of all, or substantially all, of the assets of
Corporation (meaning assets representing thirty percent
(30%) or more of the net tangible assets of Corporation or
generating thirty percent (30%) or more of Corporations
operating cash flow, in each case measured over
Corporations last four full fiscal quarters), or any other
similar business combination or transaction, but excluding
any business combination or transaction which: (i) would
result in the voting stock of Corporation immediately prior
thereto continuing to represent (either by remaining
outstanding or by being converted into voting stock of the
surviving entity) more than 70% of the combined voting power
of the voting stock of Corporation (or such surviving entity)
outstanding immediately after giving effect to such
business combination or transaction; or (ii) would be
effected to implement a recapitalization (or similar
transaction) of Corporation in which no person (as defined
in subsection 1 hereof) or group of persons acting in
concert becomes the beneficial owner (as defined in
subsection 1 hereof) of thirty percent (30%) or more of the
combined voting power of the then outstanding voting stock
of Corporation; or



| |                                                                                                
| | -----------------------------------------------------------------------------------------------
| | (iv) the adoption of any plan or proposal for the
liquidation or dissolution of Corporation; or



| |                                                                                                                                                                                            
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (v) the occurrence of any other event that would
be required to be reported in response to Item 6(e) of
Schedule 14A of Regulation 14A of the Exchange Act in effect
on the Effective Date.

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| |                                                                                                       
| | ------------------------------------------------------------------------------------------------------
| | Good Reason, in the event of a Change in
Control, shall mean the occurrence of any of the following:



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                       
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (i) the assignment to Executive of any duties
inconsistent with Executives authorities, positions,
duties, responsibilities and status with Corporation, or any
adverse alteration in the nature of Executives reporting
responsibilities, titles, or offices, or any removal of
Executive from, or any failure to reelect Executive to, any
such positions, except in connection with a termination of
the employment of Executive for Cause, permanent disability,
or as a result of Executives death or by Executive other
than for Good Reason;



| |                                                                           
| | --------------------------------------------------------------------------
| | (ii) a reduction by Corporation in Executives
Base Salary then in effect;



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                         
| | --------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (iii) failure by Corporation to continue in effect
(without substitution of a substantially equivalent plan)
any compensation plan, bonus or incentive plan, stock
purchase plan, stock option plan, life insurance plan,
health plan, disability plan or other benefit plan or
arrangement in which Executive is participating, or the
taking of any action by Corporation which would adversely
affect Executives participation in or materially reduce
Executives benefits under any of such plans;



| |                                                                                       
| | --------------------------------------------------------------------------------------
| | (iv) any material breach by Corporation of any
provisions of the Employment Agreement;



| |                                                                                                                                                                                                                                                                            
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (v) Executive is excluded (without substitution of
a substantially equivalent plan) from participation in any
incentive, compensation, stock option, health, dental,
insurance, pension or other benefit plan generally made
available to senior executives in Corporation;



| |                                                                                                                                                                                                              
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (vi) without Executives express written consent,
the requirement by Corporation that Executives principal
place of employment be relocated more than twenty-five (25)
miles from Sioux Falls, South Dakota;



| |                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                                  
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (vii) Executive determines in good faith that a
change in circumstances has occurred following a Change in
Control which has rendered Executive substantially unable to
carry out, has substantially hindered Executives
performance of, or has caused Executive to suffer a
substantial reduction in, any of the authorities, positions,
duties, responsibilities or status attached to the position
held by Executive immediately prior to the Change in Control
excluding the reasonable sharing of authority with a Chief
Operating Officer;



| |                                                                                                                                                                               
| | ------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (viii) Corporations failure to obtain a
satisfactory agreement from any successor to assume and
agree to perform Corporations obligations under the
Employment Agreement; or



| |                                                                                                                                                                                   
| | ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (ix) Corporation purports to terminate Executives
employment other than in accordance with a Notice of
Termination in accordance with the provisions of the
Employment Agreement.

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| |                                                                                                                                                                                                                                                                                                                                                                                                                                                        
| | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | Good Reason,in the absence of a Change in
Control, shall only mean subsections (i), (ii), (iii), (iv),
(v), (vi), (viii) and (ix) of the immediately preceding
definition; provided, however, that with respect to such
subsection (iii), a termination or adverse change in a plan
is not Good Reason in the absence of a Change in Control if
such termination or adverse change is applied generally to
all executive officers of the Corporation.
|
| | Severance Periodmeans twenty four (24) months,
unless Executives employment is terminated by the
Corporation, or by Executive for Good Reason, within twenty
four months of a Change in Control in which case Severance
Period shall mean thirty (30) months.                                                                                                                                                                                     



| |                                                                                                                                                                                        
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (j) There shall be no right of set-off or counterclaim in
respect of any claim, debt or obligation against any payment to or
benefit from the Executive provided for in this Agreement.



| |                                                                                                                                                                                                                                  
| | ---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
| | (k) Any dispute or controversy arising under or in
connection with this Agreement, other than claims administered under
Section 11, shall be settled exclusively by binding arbitration in the
manner set forth in Section 11(c).

13.     SEVERANCE AGREEMENT SUPERSEDED. This Agreement supersedes all
prior agreements between the parties hereto with respect to the subject matter
hereof, including without limitation the Severance Agreement;
provided, however,
that this Agreement shall not supersede any agreements between the Corporation
and Executive regarding currently outstanding options held by Executive to
purchase the Corporations common stock.

14.     NO INTERRUPTION OF BENEFITS. This Agreement constitutes an
amendment and restatement of the Employment Agreement, and nothing in this
Agreement shall be deemed an interruption of Executives years of service for
vesting of the Corporations benefit plans, vesting of options to purchase the
Corporations common stock, or otherwise.

15.     INDEMNIFICATION. The Corporation shall indemnify, defend, and hold
Executive harmless, to the fullest extent allowed by law, from and against any
liability, damages, costs, or expenses (including attorneys fees) in connection
with any claim, cause of action, investigation, litigation, or proceeding
involving him by reason of his having been an officer, director, employee, or
agent of the Corporation or its affiliates, unless it is judicially determined,
in a final, nonappealable order that Executive was guilty of gross negligence or
willful misconduct. The Corporation also agrees to maintain adequate directors
and officers liability insurance for the benefit of Executive for the term of
this Agreement and for at least three years thereafter. Notwithstanding the
foregoing, the Corporation shall not have an obligation to purchase such
directors and officers liability insurance if the Board determines in good faith
that the premiums for such coverage are prohibitively expensive.

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IN WITNESS WHEREOF, the parties have caused this Agreement to be
executed on the date and year first above written.

| |                                    |  |                        
| | ---------------------------------- |  | -----------------------
| |                                    | 
| | LODGENET ENTERTAINMENT CORPORATION
| |                                    | 
| | By:                                |  | /s/ GARY H. RITONDARO  
| |                                    |  |                        
| | Name:                              |  | Gary H. Ritondaro      
| |                                    |  |                        
| | Title:                             |  | Senior Vice President/ 
| |                                    |  | Chief Financial Officer
| |                                    |  |                        

| |                       |  | 
| | --------------------- |  | 
| |                       | 
| |                       | 
| | EXECUTIVE             | 
| |                       | 
| | /s/ SCOTT C. PETERSEN
| |                      
| | Scott C. Petersen    

15