Document:

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                                                                    Exhibit 10.2

              EXECUTIVE RETIREMENT AND SEVERANCE BENEFITS AGREEMENT

This Executive Retirement and Severance Benefits Agreement (this "Agreement") is
entered into on 22 April 2005 (the "Effective Date") between GSI Lumonics Inc.,
a New Brunswick, Canada Corporation with a registered office at c/o C. Paul W.
Smith, 44 Chipman Hill, 10th, P.O. Box 7289, Station "A", Saint John, New
Brunswick E2L 4S6, Canada (the "Company") and Kurt Pelsue with a residential
address of 55 Sherman Br. Rd., Wayland, MA ("Executive").

WHEREAS, Executive is employed by the Company as V.P., Technology, a position
that the Company has designated as a key managerial position; and

WHEREAS, the Company and Executive have agreed on certain benefits to be
provided to the Executive upon his/her retirement or severance under the
conditions described in this Agreement.

NOW, THEREFORE, in consideration of the mutual covenants contained herein, the
Company and the Executive agree as follows:

1.   Effective Date and Term: This Agreement shall become effective as of the
     date set forth in the opening paragraph. Subject to the provisions of
     Sections 3 and 5 below, this Agreement shall continue in effect for a
     period of five (5) years from the Effective Date and may only be extended
     or renewed by a written amendment, signed by the parties hereto. Subject to
     the provisions of Sections 3 and 5 below, the term of this Agreement will
     be automatically extended for an additional term of three (3) years unless,
     no later than one (1) year prior to the end of the initial five (5) year
     term, the Company delivers written notice of termination to the Executive.

2.   Definitions: For purposes of this Agreement, capitalized terms shall be
     defined as follows:

     "Base Salary" shall mean the Executive's annual salary, exclusive of
     benefits, stock options, bonuses, commissions, and incentive payments, in
     effect on the Date of Termination or the Date of Retirement.

     "Cause" shall mean: (i) any material breach by the Executive of any
     agreement between the Executive and the Company or the Company's
     subsidiaries, affiliates or divisions, including without limitation any
     employment, non-competition, non-disclosure, non-solicitation,
     confidentiality, trade secret or other such agreements; (ii) any voluntary
     termination of employment by the Executive (other than termination of
     employment for Good Reason); (iii) the Executive's willful engagement in
     illegal conduct or gross misconduct that is materially and demonstrably
     injurious to the Company or the Company's subsidiaries, affiliates or
     divisions (for purposes of this definition, no act or failure to act by the
     Executive shall be considered "willful" unless it is done, or omitted to be
     done, in bad faith and without reasonable belief

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     that the Executive's action or omission was in the best interests of the
     Company); (iv) the failure by the Executive to substantially perform the
     Executive's material duties; (iv) the use by the Executive of drugs or of
     alcohol in a manner which materially affects his/her ability to perform
     his/her employment duties; (v) the conviction of the Executive by a court
     of competent jurisdiction of any criminal offense involving dishonesty or
     breach of trust or any felony; or (vi) any material misconduct or material
     violation of the Company's policies by the Executive.

     "Change in Control" shall mean (i) any Person becomes a beneficial owner of
     thirty percent (30%) or more of the then outstanding shares of common stock
     of the Company or the combined voting power of the Company's then
     outstanding securities; (ii) the Company's stockholders approve a complete
     liquidation or dissolution of the Company, a merger or consolidation, or
     the sale or other disposition of all or substantially all of the Company's
     assets or stock; or (iii) there is consummated a merger or consolidation of
     the Company with another corporation. Notwithstanding the foregoing, a
     Change of Control shall not include (x) a consummated merger or
     consolidation effected to implement a recapitalization of the Company (or
     similar transaction) in which no Person is or becomes a beneficial owner of
     thirty percent (30%) or more of the then outstanding shares of common stock
     of the Company or the combined voting power of the Company's then
     outstanding securities; or (y) a consummated merger or consolidation of the
     Company resulting in the voting securities of the Company immediately prior
     to such merger or consolidation continuing to represent (by remaining
     outstanding or by being converted into voting securities of the surviving
     entity or any parent thereof) at least 60% of the combined voting power of
     the securities of the Company or such surviving entity or parent thereof
     outstanding immediately after such merger or consolidation; or (z) a
     shareholder approved sale or disposition of all or substantially all of the
     Company's assets or stock to an entity in which at least 60% of the
     combined voting power of the voting securities owned by shareholders are in
     substantially the same ownership proportions immediately before and after
     such sale or disposition.

     "Company" shall mean "GSI Lumonics Inc. and, except in determining whether
     or not a Change of Control of the Company has occurred, shall include its
     successor and assigns, and any corporation or other entity which is the
     surviving or continuing entity following a merger, consolidation, or sale
     of all or substantially all of the Company's assets or stock.

     "Date of Retirement" shall mean the date the Executive designates as the
     date the Executive intends to retire as a full-time employee of the Company
     or any of its subsidiaries or affiliates.

     "Date of Termination" shall mean the date the Company designates as the
     last day of Executive's employment with the Company.

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     "Disability" shall mean incapacity of the Executive due to physical or
     mental illness such that the Executive shall have been absent from the full
     time performance of his/her duties with the Company for a period of six (6)
     consecutive months or two-hundred and forty (240) days in any period of 365
     days but such term shall not include death.

     "Good Reason" shall mean means the occurrence, without the Executive's
     written consent, of any of the events or circumstances set forth in clauses
     (i) through (iv) below. Notwithstanding the occurrence of any such event or
     circumstance, such occurrence shall not be deemed to constitute Good Reason
     if, prior to the Date of Termination, such event or circumstance has been
     fully corrected and the Executive has been reasonably compensated for any
     losses or damages resulting therefrom:

          (i)  a substantial adverse change in the nature or scope of the
               Executive's responsibilities, authorities, powers, functions or
               duties except as indicated in Section 3;

          (ii) a reduction in the Executive's annual Base Salary or benefits,
               except for across-the-board reductions similarly affecting all or
               substantially all key managerial employees or as indicated in
               Section 3;

          (iii) the relocation of the office at which the Executive is
               principally employed to a location more than fifty (50) miles
               from such office; or

          (iv) the Company's failure to offer the Executive participation in any
               benefit plan(s) or include the Executive in any incentive plan(s)
               made available to all or substantially all other key managerial
               employees; provided however, that the Executive's failure to meet
               the participation requirements in such incentive plan or other
               benefit plan or the Executive's failure to meet the requirements
               for receipt of such incentive plan payment or benefit under any
               such other plan will not constitute "Good Reason" within the
               meaning of this Agreement.

          (v)  the failure of the Company to obtain the agreement from any
               successor to the Company to assume and agree to perform this
               Agreement, as required by Section 6 of this Agreement.

     "Notice of Retirement" shall mean a written letter from the Executive to
     the Company notifying the Company of the Executive's intention to retire as
     a full-time employee of the Company or any of its subsidiaries or
     affiliates.

     "Notice of Termination" shall mean a written letter from one party to the
     other party indicating in reasonable detail the facts and circumstances
     claimed to provide a

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     basis for termination of the Executive's employment and the specific
     provision in this Agreement relied upon.

     "Person" shall mean an individual, corporation, partnership, trust or other
     entity, other than (i) the Company, or its subsidiaries, affiliates or
     divisions, (ii) a trustee or fiduciary holding securities under an employee
     benefit plan of the Company or its subsidiaries or affiliates; (iii) an
     underwriter temporarily holding securities pursuant to an offering of such
     securities; and (iv) a corporation owned directly or indirectly by the
     stockholders of the Company in substantially the same proportions as their
     ownership of stock of the Company.

     "Service" shall mean continued employment on a full-time or par-time basis
     by the Company, any subsidiary or Affiliate of the Company, or any
     predecessor of the Company including any company acquired by the Company,
     whether such acquisition took the form of a purchase of stock or assets or
     a statutory merger or consolidation.

3.   Retirement Benefits. On or after the date the Executive has both (i)
     reached the age of sixty (60) years and (ii) has a minimum of fifteen (15)
     years' Service, the Executive may elect to retire as a full-time employee
     of the Company or any of its subsidiaries or affiliates by delivering a
     Retirement Notice to the Chief Executive Officer Such notice must be
     provided not less than one (1) year prior to the Date of Retirement. The
     Company shall provide the following benefits to the Executive upon his/her
     retirement in accordance with this Section 3:

     (a) Part-Time Employment: If the Executive so elects in his/her Retirement
     Notice, the Company will retain the Executive as a part-time employee
     following the Date of Retirement. The Executive shall set forth in his/her
     Retirement Notice the length of the Executive's part-time commitment, which
     shall not exceed a period of three (3) years following the Date of
     Retirement, and the extent of such commitment, shall not be more than 50%
     of full-time (the "Percentage Commitment"). While serving as a part-time
     employee, the Company will pay the Executive a salary equal to his/her Base
     Salary multiplied by his/her Percentage Commitment. As a part-time
     employee, the Executive shall make himself/herself available to perform
     such duties or undertake such projects as the Chief Executive Officer may
     request from time to time, provided that the duties or projects requested
     of the Executive shall be consistent with the duties previously performed
     by the Executive prior to his/her retirement.

     (b) Bonus: At such time as the Company would customarily pay bonuses, the
     Company shall pay the Executive an amount equal to the bonus Executive
     earned pursuant to the terms of the applicable bonus plan in effect on the
     Date of Retirement, prorated based on the number of days the Executive
     actually worked on a full-time basis in the calendar year in which the Date
     of Retirement occurs and the

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     bonus was earned. No additional bonus payment, other than that which was
     earned prior to the Date of Retirement, shall be paid to the Executive.

     (c) Benefits: During the period the Executive serves as a part-time
     employee of the Company, the Company shall continue to provide health and
     dental insurance group benefits to the Executive and the Executive's family
     comparable to those provided to the Executive and other key managerial
     employees as of the Date of Retirement;

     The Executive's COBRA period shall commence on the first day following the
     expiration of the Executive's health and dental insurance benefit
     continuation period. The Executive may elect to continue his/her medical
     and dental insurance under the Company's medical and dental group plans at
     his/her own expense for the remainder of the COBRA period.

     Except as otherwise provided in this Agreement, all other benefits,
     including but not limited to short and long term disability insurance and
     life insurance, shall cease as of the Date of Retirement.

     To the extent not previously paid or provided, the Company shall timely pay
     or provide to the Executive any other amounts or benefits required to be
     paid or provided or which the Executive is eligible to receive following
     the Date of Retirement under any plan, program, policy, practice, contract
     or agreement of the Company or any of its subsidiaries or affiliates.

     (d) Stock Options: All stock options held by the Executive shall continue
     to vest during the period the Executive continues as a part-time employee
     of the Company in accordance with be the terms of the Executive's
     applicable Stock Option Plan and Stock Option Agreement(s) (including any
     successor plan and agreement) under which the stock options were granted to
     the Executive.

     (e) Conditions: The Company's obligation to provide and the Executive's
     right to receive any of the retirement benefits described in this Section 3
     are conditioned on the Executive's continued compliance with any
     post-retirement obligations he/she may have to the Company arising from
     this Agreement or any other agreement the Executive has with the Company or
     any of its subsidiaries or affiliates, including but not limited to any
     non-competition, non-disclosure, non-solicitation, confidentiality, trade
     secret protection or other such obligations.

     (f) Taxes and Withholdings: All payments made by the Company to the
     Executive under this Agreement shall be net of any taxes (whether local,
     state, federal, provincial or otherwise) or other required or voluntary
     withholdings or deductions.

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     (g) Exclusion of Termination Benefits: If the Executive elects to receive
     any portion of the retirement benefits set forth in this Section 3, he/she
     shall no longer be eligible for the termination benefits set forth in
     Section 4 of this Agreement.

4.   Termination Benefits: The Company shall provide the following Termination
     Benefits to the Executive if his/her employment with the Company is
     terminated (i) by the Company for any reason other than for Death,
     Disability, or Cause, regardless of whether prior to, following or relating
     to a Change of Control; or (ii) by the Executive for Good Reason.

     (a) Base Salary: The Company shall continue to pay the Executive his/her
     Base Salary as of the Date of Termination for a period of eighteen (18)
     months. The Executive may elect, by written notice to the Company delivered
     no later than thirty (30) days following the Date of Termination, to
     receive in a single lump sum payment an amount equal to one and one-half
     (1-1/2) times his/her Base Salary. Such amount will be paid to the
     Executive no later than thirty (30) days following receipt by the Company
     of the written notice from the Executive to elect the lump sum payment.

     Under no circumstances shall the Employee receive more than a total of
     eighteen (18) months of Base Salary under this Agreement.

     (b) Bonus: At such time as the Company would customarily pay bonuses, the
     Company shall pay the Executive an amount equal to the bonus Executive
     earned pursuant to the terms of the applicable bonus plan in effect on the
     Date of Termination, prorated based on the number of days the Executive
     actually worked in the calendar year in which the Date of Termination
     occurs and the bonus was earned. No additional bonus payment, other than
     that which was earned prior to the Date of Termination, shall be paid to
     the Executive.

     (c) Benefits: For a period of two (2) years after the Date of Termination,
     the Company shall continue to provide health and dental insurance group
     benefits to the Executive and the Executive's family comparable to those
     provided to the Executive and other key managerial employees as of the Date
     of Termination; provided, however, that if the Executive becomes reemployed
     with another employer (subject to the limitations of Section 5 of this
     Agreement) and is eligible to receive health and dental insurance benefits
     from such employer, then the Company shall no longer be required to provide
     health and dental insurance benefits to the Executive and his/her family.
     If necessary to permit the Executive to remain qualified under the
     applicable health and dental insurance plan, the Company will retain the
     Executive as a consultant during the coverage period.

     The Executive's COBRA period shall commence on the first day following the
     expiration of the Executive's health and dental insurance benefit
     continuation period. The Executive may elect to continue his/her medical
     and dental insurance

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     under the Company's medical and dental group plans at his/her own expense
     for the remainder of the COBRA period.

     Except as otherwise provided in this Agreement, all other benefits,
     including but not limited to short and long term disability insurance and
     life insurance, shall cease as of the Date of Termination.

     To the extent not previously paid or provided, the Company shall timely pay
     or provide to the Executive any other amounts or benefits required to be
     paid or provided or which the Executive is eligible to receive following
     the Executive's termination of employment under any plan, program, policy,
     practice, contract or agreement of the Company or any of its subsidiaries
     or affiliates.

     (d) Stock Options: All stock options held by the Executive shall be
     governed exclusively by the terms of the applicable Stock Option Plan and
     Stock Option Agreement(s) (including any successor plan and agreement)
     under which the stock options were granted to the Executive.

     (e) Conditions: The Company's obligation to provide and the Executive's
     right to receive any of the Termination Benefits described in this Section
     3 are conditioned on the (i) Executive signing a release of any claims
     he/she may have against the Company in connection with his/her employment
     by and termination from employment with the Company in a form mutually
     agreed upon that is customary for such transactions; and (ii) Executive's
     continued compliance with any post-termination obligations he/she may have
     to the Company under this Agreement or arising from any other agreement the
     Executive has with the Company or any of its subsidiaries or affiliates,
     including but not limited to any non-competition, non-disclosure,
     non-solicitation, confidentiality, trade secret protection or other such
     obligations.

     (f) Taxes and Withholdings: All payments made by the Company to the
     Executive under this Agreement shall be net of any taxes (whether local,
     state, federal, provincial or otherwise) or other required or voluntary
     withholdings or deductions.

     Except as described above, the Executive shall not be eligible for or
     receive any Termination Benefits described above upon the Executive's
     resignation of or retirement from employment with the Company.

5.   Non-Competition and Non-Solicitation. During the period (i) the Executive
     serves as a part-time employee of the Company pursuant to Section 3(a) of
     this Agreement, or (ii) the Executive continues to receive compensation
     from the Company pursuant to Section 4(a) of this Agreement, and for a
     period of one year after the end of either such period, the Executive will
     not, without the Company's prior express written consent, (a) engage in,
     have an financial interest in (other than by virtue of the

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     ownership of less than 2% of the outstanding capital stock of any class of
     a publicly-traded company), be employed by, serve as a director, consultant
     or adviser to any business (which includes any product line, department,
     division or subsidiary) that is in direct competition with the Company or
     any of its subsidiaries or affiliates, (b) engage in any research,
     development or other activity relating to any products or services that
     competes or is intended to compete with those under research, or being
     developed, produced, provided, or marketed by the Company or any of its
     subsidiaries or affiliates during the periods described in subsections (i)
     and (ii) of this Section 5, or (c) hire, solicit, interfere with or
     endeavor to hire or entice away any employee of the Company or any of its
     subsidiaries or affiliates.

6.   Notices: All notices provided for in this Agreement as well as all
     correspondence pertaining to this Agreement shall be considered as properly
     given when (a) mailed by U.S. registered mail, return receipt requested,
     postage prepaid; (b) sent via facsimile with a confirmed facsimile
     transmission receipt; (c) hand delivered to the Executive or to the Chief
     Executive Officer; or (c) sent via overnight delivery with a confirmed
     receipt of delivery; in each instance addressed, if to the Executive or the
     Company, as the case may be at the address noted below or to such other
     address as either party may furnish to the other in writing in accordance
     herewith, except that notice of a change of address shall be effective only
     upon actual receipt.

     If to the Company:

          GSI Lumonics Inc.
          C/o GSI Lumonics Corporation
          39 Manning Road
          Billerica, MA 01821 USA
          Attention: Corporate Counsel

     If to the Executive:

          Kurt Pelsue
          55 Sherman Br. Rd.
          Wayland, MA

7.   At-Will Employment: Nothing in this Agreement shall be construed as an
     express or implied contract of employment between the Executive and the
     Company (or its subsidiaries, affiliates or divisions) or as a commitment
     on the part of the Company to retain Executive in any capacity for any
     period of time. Executive acknowledges and agrees that his/her employment
     with the Company is on an at-will basis and may be terminated at any time,
     with or without Cause or for any reason, at the option of either the
     Company or Executive, with notice, subject to the Company's obligation to
     provide the Termination Benefits as provided for herein.

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8.   Successors and Assigns/No Third Party Beneficiaries: This Agreement shall
     inure to the benefit of and be binding upon the successor and assigns of
     each of the parties; provided however, that neither party shall assign or
     delegate any of the obligations created under this Agreement without the
     prior written consent of the other party. Notwithstanding the foregoing (i)
     the Company shall have the unrestricted right to assign this Agreement and
     to delegate all or any part of its obligations hereunder to any of its
     subsidiaries, affiliates or divisions, but in such event such assignee
     shall expressly assume all obligations of the Company hereunder, and (ii)
     the Company may assign its rights and obligations hereunder to any Person
     who succeeds to all or substantially all of the Company's business, assets
     or stock, whether by merger, consolidation, or purchase of all or
     substantially all of the Company's assets, stock, or business. Nothing in
     this Agreement shall confer upon any Person not a party to this Agreement,
     or the legal representative, executor, administrator or heir of such
     Person, any rights or remedies of any nature or kind whatsoever under or by
     reason of this Agreement, except that (and notwithstanding anything in this
     Agreement to the contrary) if the Executive's employment is terminated with
     the Company as a result of Death, then the Executive's heirs shall be
     entitled to the benefits specified in Section 4 in addition to any
     applicable life insurance payments made to such heirs as beneficiaries
     under such life insurance policy, provided such heirs sign a release of any
     assigned claims described under Section 4(e)(i) of this Agreement.

9.   Waiver and Amendments: Any waiver, alteration, amendment or modification to
     any of the terms of this Agreement shall be valid only if made in writing
     and signed by the parties hereto. Any such waiver, alteration, amendment or
     modification of this Agreement by the Company shall require the prior
     approval of the Compensation Committee of the Board of Directors of the
     Company. No waiver by either of the parties hereto of their rights
     hereunder shall be deemed to constitute a waiver with respect to any
     subsequent occurrences or transactions hereunder unless such waiver is in
     writing and specifically states that it is to be construed as a continuing
     waiver.

10.  Severability and Governing Law: Executive acknowledges and agrees that the
     covenants set forth herein are reasonable and valid. If any of such
     covenants or such other provisions of this Agreement are found to be
     invalid or unenforceable by a final determination of a court of competent
     jurisdiction (i) the remaining terms and provisions hereof shall be
     unimpaired and (ii) the invalid or unenforceable term or provision shall be
     deemed replaced by a term or provision that is valid and enforceable and
     that comes closest to expressing the intention of the invalid and
     unenforceable term or provision. The validity, interpretation, construction
     and performance of this Agreement shall be governed by and the laws of the
     Commonwealth of Massachusetts without regard to its conflict of law
     principles.

11.  Dispute Resolution. All claims by the Executive for benefits under this
     Agreement shall be directed to and determined by the Board of Directors of
     the Company and shall be in writing. Any denial by the Board of Directors
     of a claim for benefits

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     under this Agreement shall be delivered to the Executive in writing and
     shall set forth the specific reasons for the denial and the specific
     provisions of this Agreement upon which the Board of Directors relied. The
     Board of Directors shall afford a reasonable opportunity to the Executive
     for a review of the decision denying a claim. Any further dispute or
     controversy arising under or in connection with this Agreement shall be
     settled exclusively by arbitration in Boston, Massachusetts utilizing the
     Expedited Procedures under the Commercial Arbitration Rules of the American
     Arbitration Association then in effect. The decision by the arbitrator
     shall be binding and conclusive upon the Company and the Executive and
     their respective successors, assigns and trustees, and they shall comply
     with such decision in good faith, and the Company and the Executive each
     hereby submits itself to the jurisdiction of the federal or state courts of
     the Commonwealth of Massachusetts, but only for the entry of judgment or
     for the enforcement of the decision of the arbitrator hereunder.

12.  Section Heading: The headings of the Sections and subsections of this
     Agreement are inserted for convenience only and shall not be deemed to
     constitute a part thereof, or affect the meaning or interpretation of this
     Agreement or of any term or provision hereof.

13.  Entire Agreement: Except as otherwise provided in this Agreement, this
     Agreement constitutes the entire understanding and agreement of the parties
     regarding the subject matter of this Agreement and supercedes all prior
     negotiations, discussions, correspondence, communications, understandings,
     representations and agreements between the parties, oral or otherwise,
     express or implied, relating to the subject matter of this Agreement.

14.  Counterparts: This Agreement may be executed in one or more counterparts,
     each of which shall be deemed an original and all of which together shall
     be considered one and the same agreement.

IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument by
the Company, by a duly authorized officer, and by the Executive.

GSI LUMONICS INC.                         EXECUTIVE:

--------------------------------------    --------------------------------------
Name:                                     Name:
Title:

                                       10<PAGE>

                                                                    EXHIBIT 10.1

                               OPEN SOLUTIONS INC.

                              EMPLOYMENT AGREEMENT

                                                                  April 21, 2005

Mr. Louis Hernandez, Jr.
140 Colton Road
Glastonbury, Connecticut 06033

      This Agreement is entered into between you and Open Solutions Inc., a
Delaware corporation (the "Company"), in consideration of the mutual promises
and covenants contained herein and for other good and valuable consideration,
including but not limited to the continued employment of you by the Company,
your access to the Company's confidential business and technological
information, your advancement at the Company, and any eligibility to receive
benefits from the Company.

      Accordingly, the Company agrees with you as follows:

      1. POSITION AND RESPONSIBILITIES.

            1.1 You shall serve in an executive capacity as Chief Executive
Officer or in a position substantially equivalent thereto and shall perform such
duties at such place or places as the Company shall designate subject to Section
2.5(e).

            1.2 You will, to the best of your ability, devote your full time and
best efforts to the performance of your job hereunder and to the business and
affairs of the Company. You agree to serve as a director, Chairman of the Board,
officer, or any combination of these, of the Company if elected by the
shareholders or the Company's Board of Directors (the "Board"), and to perform
such executive duties as may be assigned to you by the Board from time to time.

            1.3 You will duly, punctually and faithfully perform your job duties
and observe any and all rules and regulations, which the Company may now or
shall hereafter establish governing its employees and the conduct of its
business.

      2. TERM OF EMPLOYMENT.

            2.1 The term of your employment shall be three (3) years commencing
on the date hereof, provided, however, that your employment shall automatically
terminate upon your death and may be terminated at any time as provided in
Section 2.2. Subject to Section 2.2 below, at the end of the initial three (3)
year term, your term of employment shall renew automatically for an additional
one (1) year term unless either you or the Company provides written notice to
the other party of cancellation of such term at least sixty (60) days prior to
the expiration of the initial three-year term.

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            2.2 Your employment may be terminated as follows:

            (a) The Company shall have the right, by giving you written notice,
      to terminate your employment:

                  (i) immediately for Cause (as hereinafter defined); or

                  (ii) at any time without Cause; or

                  (iii) upon a Change of Control (as hereinafter defined).

            (b) You shall have the right, on written notice to the Company, to
      terminate your employment for Good Reason (as hereinafter defined).

            (c) You shall have the right, on written notice to the Company, to
      terminate your employment without Good Reason.

            2.3 If your employment is terminated (a) by the Company without
Cause pursuant to Section 2.2(a)(ii) above or (b) by you with Good Reason
pursuant to Section 2.2(b) above, the Company shall be obligated upon
termination to pay you the full amount of your target cash bonus, i.e. 75% of
your then Base Salary, for the year in which your termination occurs, and to
continue to pay you your Base Salary and to provide you with the other benefits
described in this Agreement for twelve (12) months following the termination of
your employment, in each case less applicable taxes and other required
withholdings and any amount you may owe to the Company. If your employment is
terminated by the Company upon a Change of Control pursuant to Section
2.2(a)(iii) above, you shall be paid and provided with (x) your benefits for two
(2) years after the date of termination as if you had remained actively
employed, (y) full vesting of any stock options previously granted to you, and
(z) on the date of termination, two times (i) your Base Salary then in effect
plus (ii) your target bonus for the year of termination.

            2.4 For purposes of this Agreement, the term "Cause" shall mean: (a)
habitual intoxication; (b) drug addiction; (c) conviction of a felony (or a plea
of guilty or nolo contendre to a felony charge); (d) adjudication by a court as
a mental incompetent; (e) insubordination, malfeasance, or willful misconduct;
or (f) material failure or inability to perform your agreements, duties, or
obligations as an employee of the Company or under this Agreement (including,
without limitation, as a result of your voluntary or involuntary termination of
employment).

            2.5 For purposes of this Agreement, the term "Good Reason" shall
mean, without your consent: (a) your removal from, or the failure to elect or
re-elect you to, the Board, except when such removal or failure to elect or
re-elect relates to your termination by the Company for Cause; (b) a significant
reduction in the nature or scope of the authorities, powers, functions or duties
attached to your position with the Company ("Reduction in Duties"); (c) the
failure of the Company to maintain its incentive compensation plan, or its
equivalent; (d) a Change in Control (as hereinafter defined) as a

                                       2
<PAGE>

result of which (i) you are in any way constrained in carrying out the
authorities, powers, functions or duties attached to the position stated in
Section 1.1 hereof or (ii) there is a Reduction in Duties and, in either case,
if after reasonable negotiation with the new control group, the situation is not
remedied within thirty (30) days following the Change in Control or (e)
requiring you to be permanently based at a location in excess of fifty (50)
miles from Glastonbury, CT.

            2.6 For purposes of this Agreement, a "Change in Control" shall mean
when: (a) the Company sells all or substantially all of its assets; or (b) any
person (as such term is defined in Sections 3(a)(9) and 13(d)(3) of the
Securities Exchange Act of 1934, each a "person"), other than (x) the current
shareholders of the Company, (y) one or more venture capital investors or (z) in
connection with an underwritten registered public offering of the securities of
the Company, any person or persons, becomes a beneficial owner, directly or
indirectly, of securities of the Company representing sufficient votes to elect
a majority of the Board.

      3. COMPENSATION.

            3.1 The Company shall pay to you a salary for your services to the
Company at the initial annual rate of $400,000, as may be increased periodically
by the Board, in its sole discretion, payable in installments in accordance with
the Company's prevailing practice, as modified from time to time (the "Base
Salary").

            3.2 In addition to the regular annual compensation to be paid to you
in accordance with Section 3.1 above, you will be eligible to receive an annual
cash bonus of a target of seventy-five percent (75%) of your then Base Salary,
and a maximum of one hundred fifty percent (150%) of your then Base Salary,
based on the Company's achievement of certain performance goals during each
fiscal year. The Board, with your consultation and active participation, shall
set by no later than December 31 of each year the standards for the Company's
expected performance in the following year and a mechanism to calculate the
amount of your bonus based on performance of such standards. The performance
goals which you will be required to attain to entitle you to payment of the
bonus may include, without limitation, the Company's market value, stock price,
profitability, sales, product research and development, customer installations,
management practices and such other areas as may be considered appropriate to
further corporate strategies.

            3.3 The Company will purchase and pay for a life insurance policy
having a death benefit of at least $5,000,000. The owner(s) and beneficiaries of
this policy will be as selected by you.

            3.4 The Company will provide you with the exclusive use of a
late-model car (Audi 8 Series or BMW 7 Series or comparable model as selected by
you), or a cash car allowance sufficient to fund (on an after-tax basis) the
lease of such a car.

                                       3
<PAGE>

            3.5 The Company will pay the cost of professional preparation of
your personal tax returns and related advice by Pricewaterhouse Coopers or
another mutually acceptable accounting firm.

      4. OTHER ACTIVITIES DURING EMPLOYMENT.

            4.1 Except with the prior written consent of the Company's Board,
you will not during the term of this Agreement undertake or engage in any other
employment, occupation or business enterprise other than one in which you are an
inactive investor as described in Section 4.3. This provision shall not be
deemed to preclude membership in professional societies, lecturing or the
acceptance of honorary positions, that are in any case incidental to your
employment by the Company and which are not adverse or in conflict with the
interests of the Company, its business or prospects, financial or otherwise.

            4.2 Except as permitted by Section 4.3, you will not acquire, assume
or participate in, directly or indirectly, any position, investment, or interest
adverse or in conflict with the interests of the Company, its business or
prospects, financial or otherwise, or take any action towards any of the
foregoing.

            4.3 During the term of your employment by the Company, except on
behalf of the Company or its subsidiaries, you will not, directly or indirectly,
whether as an officer, director, employee, stockholder, partner, proprietor,
associate, representative, or otherwise, become or be interested in any other
person, corporation, firm, partnership or other entity whatsoever which directly
competes with the Company, in any part of the world, in any line of business
engaged in (or which the Company has made plans to be engaged in) by the
Company; provided, however, that anything above to the contrary notwithstanding,
you may own, as an inactive investor, securities of any competitor corporation
or other business entity, so long as your holdings in any one such corporation
shall not in the aggregate constitute more than one percent (1%) of the voting
power of such corporation or other entity.

      5. CONFIDENTIALITY. You acknowledge that in the course of performing your
duties hereunder it will be necessary to disclose to you or you will be exposed
to, proprietary and other confidential information of the Company, including,
without limitation, the Company's product information, data, processes, methods,
inventions, discoveries, improvements, financial data, business product and
marketing plans, and customer information (collectively, "Confidential
Information"). You agree not to use or disclose the Confidential Information to
any third party (or cause such use or disclosure), except as necessary to
perform the duties assigned to you by the Company hereunder and in furtherance
of the best interests of the Company, or as may otherwise be authorized in
writing by the Company, Confidential Information shall not include information
which (i) is or hereafter becomes publicly known through no fault of yours or
(ii) is lawfully disclosed to you by a third party having a right to disclose
such information.

                                       4
<PAGE>

      6. PROPRIETARY INFORMATION AND INVENTIONS. You have previously executed,
and hereby acknowledge that you are bound by the provisions of, a Proprietary
Information and Inventions Agreement with the Company.

      7. POST-EMPLOYMENT ACTIVITIES.

            7.1 You acknowledge and agree that as a result of, among other
things, (i) your access to significant and valuable Confidential Information (as
defined in Section 5 above) of the Company and (ii) the lucrative world-wide
market for the Company's expertise, services, products and technology, the
restrictions contained in this Section 7 are reasonable in all respects and
necessary to protect the Company's investments in your training and in the
Company's good will and other business interests.

            7.2 Based on the foregoing and in consideration thereof and of the
payments to be made to you by the Company pursuant to this Agreement, for a
period of twelve (12) months after the termination of your employment with the
Company you will not directly or indirectly:

                  (a) engage in activities (similar or reasonably related to
            those in which you shall have engaged during the twelve (12) months
            immediately preceding the termination of your employment with the
            Company) for, nor render services (similar or reasonably related to
            those which you shall have rendered hereunder during such twelve
            (12) months) to, any firm or business organization which directly
            competes with the Company in any line of business engaged in by the
            Company (or which the Company's Board formally resolved during your
            employment to be engaged in), whether now existing or established
            during your employment, nor shall you engage in such activities nor
            render such services to any other person or entity engaged or about
            to become engaged in such activities to, for, or on behalf of; any
            such firm or business organization:

                        (i) in connection with the sale, marketing or promotion
                  to any customer of the Company upon whom you have called or in
                  whose account you participated or supervised on behalf of the
                  Company during the year prior to the termination of your
                  employment with the Company, or

                        (ii) with respect to any product, process, or service,
                  in existence or under development which substantially
                  resembles or competes with a product, process, or service of
                  the Company in existence or under development upon which you
                  worked or exercised supervisory responsibility at any time
                  during the year prior to the termination of your employment
                  with the Company;

                  (b) solicit employees of the Company to leave its employ;

                                       5
<PAGE>

                  (c) offer or cause to be offered employment to any person who
            is employed by the Company at any time during the six (6) months
            prior to the termination of your employment with the Company;

                  (d) entice, induce or encourage any of the Company's other
            employees to engage in any activity which, were it done by you,
            would violate any provision of Sections 5 or 6 or this Section 7; or

                  (e) otherwise attempt to interfere with or disrupt the
            business or activities of the Company.

            7.3 Upon your written request to the Company specifying the
activities proposed to be conducted by you, the Company may in its discretion
give you written approval(s) to personally engage in any activity or render
services referred to in Section 7.2 upon receipt of written assurances
(satisfactory to the Company and its counsel) from you and from your prospective
employer(s) that the integrity of the provisions of Sections 5, 6 and 7 will not
in any way be jeopardized or violated by such activities, provided the burden of
so establishing the foregoing to the satisfaction of the Company and said
counsel shall be upon you and your prospective employer(s).

      8. REMEDIES. Your duties under Sections 5, 6 and 7 shall survive
termination of your employment with the Company. You acknowledge that a remedy
at law for any breach or threatened breach by you of the provisions of the
Sections 5, 6 or 7 would be inadequate and you therefore agree that the Company
shall be entitled to injunctive relief in case of any such breach or threatened
breach.

      9. MISCELLANEOUS.

            9.1 ASSIGNMENT. This Agreement and the rights and obligations of the
parties hereto shall bind and inure to the benefit of any successor or
successors of the Company by reorganization, merger or consolidation and any
assignee of all or substantially all of its business and properties, but, except
as to any such successor or assignee of the Company, neither this Agreement nor
any rights or benefits hereunder may be assigned by the Company or you.

            9.2 INTERPRETATION. In case any one or more of the provisions
contained in this Agreement shall, for any reason, be held to be invalid,
illegal or unenforceable in any respect, such invalidity, illegality or
unenforceability shall not affect the other provisions of this Agreement, and
this Agreement shall be construed as if such invalid, illegal or unenforceable
provision had never been contained herein. If, moreover, any one or more of the
provisions contained in this Agreement shall for any reason be held to be
excessively broad as to duration, geographical scope, activity or subject, it
shall be construed by limiting and reducing it, so as to be enforceable to the
extent compatible with the applicable law as it shall then appear.

                                       6
<PAGE>

            9.3 NOTICES. Any notice which the Company is required or may desire
to give to you shall be given to you by personal delivery or registered or
certified mail, return receipt requested, addressed to you at the address of
record with the Company, or at such other place as you may from time to time
designate in writing. Any notice which you are required or may desire to give to
the Company hereunder shall be given by personal delivery or by registered or
certified mail, return receipt requested, addressed to the Company at its
principal office, or at such other office as the Company may from time to time
designate in writing. The date of personal delivery or the dates of mailing any
such notice shall be deemed to be the date of delivery thereof.

            9.4 WAIVERS. If either party shall waive any breach of any provision
of this Agreement, he or it shall not thereby be deemed to have waived any
preceding or succeeding breach of the same or any other provision of this
Agreement.

            9.5 HEADINGS. The headings of the sections hereof are inserted for
convenience only and shall not be deemed to constitute a part hereof nor to
affect the meaning hereof.

            9.6 GOVERNING LAW. This Agreement shall be governed by, and
construed and enforced in accordance with, the laws of the State of Connecticut.

            9.7 COMPLETE AGREEMENT: AMENDMENTS; PRIOR AGREEMENTS. The foregoing
is the entire agreement of the parties with respect to the subject matter hereof
and may not be amended, supplemented, cancelled or discharged except by written
instrument executed by both parties hereto. This Agreement supersedes any and
all prior agreements between the Company and you with respect to the matters
covered hereby, including without limitation the employment agreement dated May
6, 2002, by and between you and the Company.

            9.8 COUNTERPARTS. This Agreement may be executed in counterparts,
each of which when so executed and delivered shall constitute a complete and
original instrument but all of which together shall constitute one and the same
agreement, and it shall not be necessary when making proof of this Agreement or
any counterpart thereof to account for any other counterpart.

      If you are in agreement with the foregoing, please so indicate by signing
and returning the enclosed copy of this Agreement.

                                       7
<PAGE>

                                    OPEN SOLUTIONS INC.

                                    By: /s/ Samuel F. McKay
                                        -----------------------
                                            Samuel F. McKay
                                    Title: Chairman, Compensation Committee
                                           of the Board of Directors

Accepted and agreed:

/s/ Louis Hernandez, Jr.
----------------------------
Louis Hernandez, Jr.

                                       8

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