Document:

exv10w1

 

Exhibit
10.1

	 	 	 	 	 	 
	 	Confidential Materials omitted and filed separately with the Securities and Exchange
Commission. Asterisks denote omissions.

	 
	 

2006 EQUITY INCENTIVE PLAN OF SS&C TECHNOLOGIES HOLDINGS, INC.

STOCK OPTION GRANT NOTICE AND

STOCK OPTION AGREEMENT

STOCK OPTION GRANT NOTICE

Unless otherwise defined herein, the terms defined in the 2006 Equity Incentive Plan of SS&C
Technologies Holdings, Inc. (the “Plan”) shall have the same defined meanings in this Stock
Option Grant Notice and Stock Option Agreement.

You have been granted an Option to purchase Common Stock of the Company, subject to the terms and
conditions set forth in this Stock Option Grant Notice, the Stock Option Agreement attached hereto
as Appendix A, Appendix B (collectively, the “Agreement”) and the Plan, as follows:

	 	 	 	 	 	 	 	 	 	 	 
	Name of Optionee:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Total Number of Shares subject to the Option:	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Exercise Price per Share:

	 	 	 	$	 	 	 	 	 	 
	 

	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Total Exercise Price:

	 	 	 	$	 	 	 	 	 	 
	 

	 	 	 	 	 

	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Grant Date:
	 	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Type of Option:	 	 	 	Non-Qualified Stock Option	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Final Expiration Date:	 	 	 	[10 years from Grant Date]	 	 
	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	Vesting Schedule:	 	This Option will vest and become exercisable in accordance with
the vesting schedule set forth in Article II of the Stock Option
Agreement depending on the classification of the Option as
follows:	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Time Options:	 	                     Shares Subject to the Option	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Performance Options:	 	                     Shares Subject to the Option	 	 
	 
	 	 	 	 	 	 	 	 	 	 
	 	 	Superior Options:	 	                     Shares Subject to the Option	 	 

     Your signature below indicates your agreement and understanding that this Option is subject to
all of the terms and conditions contained in the Agreement and the Plan. ACCORDINGLY, PLEASE BE
SURE TO READ ALL OF THE AGREEMENT, WHICH CONTAINS THE SPECIFIC TERMS AND CONDITIONS OF THIS OPTION.
This Stock Option Grant Notice may be executed in any number of counterparts, each of which shall
be an original, but all of which together shall constitute one instrument. This Stock Option Grant
Notice may be executed by facsimile signatures.

OPTIONEE

	 	 	 
	 

[NAME]

	 	 

SS&C TECHNOLOGIES HOLDINGS, INC.

	 	 	 	 	 
	By

	 	 

Title:
	 	 

[Stock Option Grant Notice]

1

 

APPENDIX A

STOCK OPTION AGREEMENT

ARTICLE I

GRANT OF OPTION

     Section 1.1 Grant of Option. In consideration of the Optionee’s agreement to
remain a Service Provider of the Company or one of its Subsidiaries and for other good and valuable
consideration, the Company hereby grants to the Optionee the Option to purchase any part or all of
an aggregate of the Shares set forth in the Stock Option Grant Notice upon the terms and conditions
set forth in the Plan and the Agreement. The Optionee hereby agrees that except as required by
law, he or she will not disclose to any Person other than the Optionee’s spouse and/or tax, legal
and financial advisor (if any) the grant of the Option or any of the terms or provisions hereof
without the prior approval of the Administrator, and the Optionee agrees that, in the discretion of
the Administrator, the Option shall terminate and any unexercised portion of such Option (whether
or not then exercisable) shall be forfeited if the Optionee violates the non-disclosure provisions
of this Section 1.1.

     Section 1.2 Option Subject to Plan. The Option granted hereunder is subject
to the terms and provisions of the Plan, including without limitation, Article V and Article VIII
thereof.

     Section 1.3 Exercise Price. The purchase price of the Shares covered by the
Option shall be the Exercise Price per Share set forth in the Stock Option Grant Notice (without
commission or other charge).

ARTICLE II

VESTING SCHEDULE; EXERCISABILITY

     Section 2.1 Commencement of Vesting and Exercisability of Time Options

          (a) Vesting. Except as provided below, the Time Options shall become vested and exercisable,
so long as the Optionee remains continuously a Service Provider from the date hereof through each
applicable date set forth below, as follows:

               (i) 25% of the Time Options shall become vested and exercisable on [                    ]; and

               (ii) 1/36 of the remaining Time Options shall become vested and exercisable each month
thereafter until all of the Time Options are fully vested.

          (b) Liquidity Event Vesting. All Time Options shall become fully vested and exercisable
immediately prior to the effective date of a Liquidity Event.

     Section 2.2 Commencement of Vesting and Exercisability of Performance Options

          (a) Performance Acceleration. Subject to the provisions set forth below, the Performance
Options shall vest and become exercisable as follows:

 

 

               (i) 20% of the Performance Options shall vest and become exercisable on December 31 of each
Fiscal Year 2007 through 20111 (each, an “Applicable Year”) if, in each case, on
such date (or within 120 days thereafter), the Administrator determines that EBITDA for the
Applicable Year equals or exceeds the EBITDA Target for the Applicable Year (such acceleration, the
“Yearly Performance Based Acceleration”).

               (ii) For Fiscal Year 2007 and 20082, if the Administrator determines that EBITDA
for the Applicable Year is between (A) 95% of the EBITDA Target for such Applicable Year, and (B)
100% of the EBITDA Target for such Applicable Year, then the Administrator will use linear
interpolation to determine the portion of the Performance Options that shall vest and become
exercisable in each Applicable Year, which portion shall be between 10% and 20% of the Performance
Options.

               (iii) For Fiscal Year 2007 and 20082, if the Administrator determines that EBITDA
for the Applicable Year is 95% of the EBITDA Target for such Applicable Year, then 10% of the
Performance Options shall vest and become exercisable in each Applicable Year.

               (iv) For Fiscal Year 2007 and 20082, except as provided below, no portion of the
Performance Options will become vested or exercisable if the EBITDA for the Applicable Year is less
than 95% of the EBITDA Target for such Applicable Year.

               (v) For Fiscal Year 2009 through 20113, if the Administrator determines that EBITDA
for the Applicable Year is between (A) 90% of the EBITDA Target for such Applicable Year, and (B)
100% of the EBITDA Target for such Applicable Year, then the Administrator will use linear
interpolation to determine the portion of the Performance Options that shall vest and become
exercisable in each Applicable Year, which portion shall be between 10% and 20% of the Performance
Options.

               (vi) For Fiscal Year 2009 through 20113, if the Administrator determines that
EBITDA for the Applicable Year is 90% of the EBITDA Target for such Applicable Year, then 10% of
the Performance Options shall vest and become exercisable in each Applicable Year.

               (vii) For Fiscal Year 2009 through 20113, except as provided below, no portion of
the Performance Options will become vested or exercisable if the EBITDA for the Applicable Year is
less than 90% of the EBITDA Target for such Applicable Year.

          (b) Catch-up Vesting; Forward Vesting. Except as provided below, the Performance Options
which would otherwise fail to become vested and exercisable in accordance with Section 2.2(a) shall
be eligible for vesting in accordance with this Section 2.2(b).

 

			
	1	 	For Performance Options awarded in 2006, the
applicable fiscal years are “Fiscal Year 2006 through 2010”.
	 
	2	 	For Performance Options awarded in 2006, the
applicable fiscal years are “Fiscal Year 2006 and 2007”.
	 
	3	 	For Performance Options awarded in 2006, the
applicable fiscal years are “Fiscal Year 2008 through 2010”.

 

 

               (i) If EBITDA for the Applicable Year exceeds the EBITDA Target for such year, an amount equal
to the excess of EBITDA over the EBITDA Target (the “Excess Amount”) shall be applied to
EBITDA of any previous Applicable Year for which the Yearly Performance Based Acceleration was not
met in full. To the extent such Excess Amount causes a previous Applicable Year’s EBITDA Target to
be met in accordance with Section 2.2(a), the portion of the Performance Options that would have
vested in such Applicable Year shall vest and become exercisable on the date the applicable Excess
Amount that causes such Performance Options to vest is determined by the Administrator.

               (ii) In the event all EBITDA Targets of previous Applicable Years were met in full (including
as a result of this subsection), an amount equal to the Excess Amount that is not applied to EBITDA
of any previous Applicable Year shall be applied to the EBITDA for future years. However, any
Excess Amount applied to the EBITDA for a future year shall not accelerate the vesting and
exercisability of the applicable Performance Options to a date prior to the date in which the
applicable portion of the Performance Options was first eligible to become vested and exercisable
in accordance with Section 2.2(a).

               (iii) Notwithstanding anything to the contrary in this Section 2.2(b), in no event shall more
than 20% of the Performance Options vest and become exercisable with respect to any Applicable Year
as a result of to this Section 2.2(b).

          (c) Liquidity Event Vesting. Except as provided below, a percentage of Performance Options
shall vest and become exercisable immediately prior to the effective date of a Liquidity Event if
Liquidity Proceeds in a Liquidity Event equal or exceed a certain return on the Investment, as
follows:

               (i) If, in connection with a Liquidity Event, Liquidity Proceeds are equal to 2.5 times the
Investment, the Performance Options shall vest and become exercisable with respect to that
percentage of the Performance Options equal to the difference between (x) 25% of the Performance
Options, and (y) the percentage of Performance Options that vested pursuant to Section 2.2(a) or
2.2(b) prior to the date of the Liquidity Event;

               (ii) If, in connection with a Liquidity Event, Liquidity Proceeds are between 2.5 times the
Investment and 4.0 times the Investment, then the Administrator will use linear interpolation to
determine the portion of the Performance Options that will vest and become exercisable, which
portion shall be between 25% and 100% of the Performance Options less the percentage of
Performance Options that vested pursuant to Section 2.2(a) or 2.2(b) prior to the date of the
Liquidity Event; and

               (iii) If, in connection with a Liquidity Event, Liquidity Proceeds are equal to or greater
than 4.0 times the Investment, the Performance Options shall become fully vested and exercisable
immediately prior to the effective date of the Liquidity Event.

          (d) Additional Liquidity Event Vesting. The Performance Options that have not become eligible
for Yearly Performance Based Acceleration pursuant to Section 2.2(a) prior to the date of a
Liquidity Event, shall become fully vested and exercisable immediately prior to a Liquidity Event
if and only if EBITDA for the Fiscal Year in which the Liquidity Event occurs

 

 

(which EBITDA shall not be reduced by any expenses that the Administrator reasonably
determines are directly related to the Liquidity Event, including without limitation any investment
banking fees payable as a result of the Liquidity Event) equals or exceeds the EBITDA
Target (reduced on a pro-rata basis with respect to the portion of the EBITDA Target attributable
to the portion of the Fiscal Year remaining after the Liquidity Event occurs if the Liquidity Event
occurs on a date other than the last day of such Fiscal Year) for the Fiscal Year in which such
Liquidity Event occurs.

          (e) Internal Rate of Return Acceleration. If, in connection with a Liquidity Event, Liquidity
Proceeds are greater than or equal to the Internal Rate of Return for the Performance Options with
respect to all Investments, the Performance Options shall become fully vested and exercisable
immediately prior to the effective date of such Liquidity Event.

     Section 2.3 Commencement of Vesting and Exercisability of Superior Options.

          (a) Performance Acceleration. Except as provided below, a percentage of Superior Options
shall vest and become exercisable if Liquidity Proceeds in a Liquidity Event equal or exceed a
certain return on the Investment, as follows:

               (i) If, in connection with a Liquidity Event, Liquidity Proceeds are equal to or less than 4.0
times the Investment, the Superior Options shall not vest and shall not become exercisable;

               (ii) If, in connection with a Liquidity Event, Liquidity Proceeds are between 4.0 times the
Investment and 4.5 times the Investment, then the Administrator will use linear interpolation to
determine the portion of the Superior Options that shall vest and become exercisable, which portion
shall be between 0% and 100% of the Superior Options; and

               (iii) If, in connection with a Liquidity Event, Liquidity Proceeds are equal to or greater
than 4.5 times the Investment, the Superior Options shall vest and become exercisable with respect
to 100% of the Superior Options.

          (b) Internal Rate of Return Acceleration If, in connection with a Liquidity Event, Liquidity
Proceeds are greater than or equal to the Internal Rate of Return for the Superior Options with
respect to all Investments, the Superior Options shall become fully vested and exercisable
immediately prior to the effective date of such Liquidity Event.

     Section 2.4 Administrator Determination of Targets. The Administrator shall
make the determination as to whether the respective EBITDA Targets or Internal Rate of Return have
been met, and shall determine the extent, if any, to which the Options have become vested and
exercisable, on any such date as the Administrator in its sole discretion shall determine;
provided, however, that with respect to each Fiscal Year such date shall not be later than the
120th day following the end of such Fiscal Year.

     Section 2.5 No Vesting of Options. Any portion of the Options that have not
become vested or exercisable pursuant to Sections 2.1, 2.2 or 2.3 on or prior to the date of the
Optionee’s Termination of Service shall be forfeited and shall not thereafter become exercisable.

 

 

     Section 2.6 Duration of Exercisability. The installments of the Options that
become exercisable as provided for above are cumulative. Each such installment which becomes
exercisable shall remain exercisable until it becomes unexercisable under Section 2.7.

     Section 2.7 Expiration of Option

          (a) The Options may not be exercised to any extent by anyone after the first to occur of the
following events:

               (i) The Final Expiration Date;

               (ii) Except as the Administrator may otherwise approve, thirty (30) days following the date of
the Optionee’s Termination of Service for any reason other than Cause, death or Disability;

               (iii) Except as the Administrator may otherwise approve, the date of the Optionee’s
Termination of Service for Cause;

               (iv) Except as the Administrator may otherwise approve, twelve months following the Optionee’s
Termination of Service by reason of the Optionee’s death or Disability; or

               (v) Pursuant to the terms of the Stockholders Agreement.

          (b) If, pursuant to the terms of the Stockholders Agreement, the Company has a right to
repurchase the Optionee’s Shares, the Company may exercise such call right regardless of whether
the Optionee continues to have a right to exercise the Options under Section 2.7.

          (c) For the purposes of the Plan and this Agreement, the date of the Termination of Service
shall be the last day of the Optionee’s service as a Service Provider, whether such day is selected
by agreement with the Optionee or unilaterally by the Company or its Subsidiary and whether with or
without advance notice. For the avoidance of doubt, no period of notice that is given or that
ought to have been given under applicable law in respect of such Termination of Service will be
utilized in determining entitlement under the Plan, the Stockholders Agreement or this Agreement.
Any action by the Company or its Subsidiary taken in accordance with the terms of the Plan and this
Agreement as set out aforesaid shall be deemed to fully and completely satisfy any liability or
obligation of the Company or its Subsidiary to the Optionee in respect of the Plan or this
Agreement arising from or in connection with such Termination of Service, including in respect of
any period of notice given or that ought to have been given under applicable law in respect of such
Termination of Service.

     Section 2.8 Partial Exercise. Any exercisable portion of the Options or all
the Options, if then wholly exercisable, may be exercised in whole or in part at any time prior to
the time when the Options or portion thereof becomes unexercisable.

     Section 2.9 Exercise of Options. The exercise of the Options shall be
governed by the terms of this Agreement and the terms of the Plan, including, without limitation,
the provisions of Article V of the Plan. Unless otherwise determined by the Administrator, the
Optionee must

 

 

provide the Company with 30 days notice prior to his or her intent to exercise the options (in
such form as the Company will determine) or such other amount of time as the Administrator
determines necessary in order for the Company to comply with applicable securities law. After this
notice period, to exercise an option, the Participant must provide written notice of exercise to
the Company in accordance with the Plan and this Agreement.

     Section 2.10 Manner of Exercise; Tax Withholding

          (a) To the extent permitted by law or the applicable listing rules, if any, the Optionee may
pay for the Shares with respect to which such Option or portion of such Option is exercised through
(i) payment in cash; (ii) with the consent of the Administrator, the delivery of Shares which have
been owned by the Optionee for at least six months, duly endorsed for transfer to the Company with
a Fair Market Value on the date of delivery equal to the aggregate Exercise Price of the exercised
portion of the Option (provided such Common Stock is not subject to any repurchase, forfeiture,
unfulfilled vesting or other similar requirements), (iii) with the consent of the Administrator,
through the surrender of Shares then issuable upon exercise of the Option having a Fair Market
Value on the date of the exercise of the Option equal to the aggregate Exercise Price of the
exercised portion of the Option (in which case the Optionee will be deemed the legal owner of such
surrendered Shares at the time of the exercise of the Option), or (iv) through a cashless exercise
program (effectuated through a broker) approved by the Administrator.

          (b) The Optionee shall pay to the Company or any applicable Subsidiary, or make provision
satisfactory to the Company or such Subsidiary, for payment of, any taxes required by law to be
withheld in connection with the grant, vesting, assignment, and/or exercise of any portion of the
Option, as applicable. With respect to any portion of the Option that is exercised (i) prior to an
IPO, (ii) prior to a Change in Control, and (iii) within the period beginning on the date ninety
(90) days prior to the date the Option is scheduled to expire pursuant to Section 2.7(a)(ii) or
Section 2.7(a)(iv) and ending on the date such option is scheduled to expire pursuant to Section
2.7(a)(ii) or Section 2.7(a)(iv), as applicable, and subject to any applicable legal conditions or
restrictions, the Company shall, upon the Optionee’s request, withhold from the shares of Common
Stock otherwise issuable to the Optionee upon the exercise of the Option or any portion thereof a
number of whole Shares having a Fair Market Value, determined as of the date of exercise, not in
excess of the minimum of tax required to be withheld by law (or such lower amount as may be
necessary to avoid variable award accounting); provided that the foregoing is at such time
permitted under the terms of the agreements governing any indebtedness to which the Company or any
of its Subsidiaries may be a party; and provided, further that no fractional shares of Common Stock
will be retained to satisfy any portion of the withholding tax and the Optionee hereby agrees to
satisfy any additional amount of withholding taxes that are not satisfied through the retention of
shares of Common Stock by the Company. Any shares of Common Stock retained by the Company pursuant
to this Section shall be deducted from the underlying shares to be received by such Optionee upon
exercise of the Option. Any adverse consequences to the Optionee arising in connection with the
Share withholding procedure set forth in the preceding sentence shall be the sole responsibility of
the Optionee.

 

 

ARTICLE III

OTHER PROVISIONS

     Section 3.1 Optionee Representation; Not a Contract of Service. The Optionee
hereby represents that the Optionee’s execution of this Agreement and participation in the Plan is
voluntary and that the Optionee has in no way been induced to enter into this Agreement in exchange
for or as a requirement of the expectation of service with the Company or any of its Subsidiaries.
Nothing in this Agreement or in the Plan shall confer upon the Optionee any right to continue as a
Service Provider or shall interfere with or restrict in any way the rights of the Company or its
Subsidiaries, which are hereby expressly reserved, to discharge the Optionee at any time for any
reason whatsoever, with or without Cause except pursuant to an employment or consulting agreement
executed by and between the Company and the Optionee and approved by the Board.

     Section 3.2 Shares Subject to Plan and Stockholders Agreement; Restrictions on the
Transfer of Options and Common Stock. The Optionee acknowledges that this Option and any
shares acquired upon exercise of the Option are subject to the terms of the Plan and the
Stockholders Agreement including, without limitation, the restrictions set forth in Sections 5.6
and 5.7 of the Plan.

     Section 3.3 Construction. This Agreement shall be administered, interpreted
and enforced under the laws of the state of Delaware.

     Section 3.4 Adjustments in EBITDA. The EBITDA Targets specified in Appendix B
(collectively the “Financial Targets”) are based upon (i) certain revenue and expense
assumptions about the future business of the Company; (ii) a management model prepared by the
Company for the projected financial performance of the Company, which incorporates the desired
internal rate of return on the investment by the Principal Stockholders in debt and equity
securities or instruments of the Company and its Subsidiaries and (iii) the continued application
of accounting policies used by the Company as of the date the Option is granted. Accordingly, in
the event that, after such date, the Administrator determines, in its sole discretion, that any
acquisition or disposition of any business by the Company, any dividend or other distribution
(whether in the form of cash, Common Stock, other securities, or other property), recapitalization,
reclassification, stock split, reverse stock split, reorganization, merger, consolidation,
split-up, spin-off, combination, repurchase, or exchange of Common Stock or other securities of the
Company, issuance of warrants or other rights to purchase Common Stock or other securities of the
Company, any unusual or nonrecurring transactions or events affecting the Company, or the financial
statements of the Company, or change in applicable laws, regulations, or changes in generally
accepted accounting principles applicable to, or the accounting policies used by, the Company
occurs such that an adjustment is determined by the Administrator to be appropriate in order to
prevent dilution or enlargement of the benefits or potential benefits intended to be made available
with respect to the Option, then the Administrator shall, subject to Section 8.1 of the Plan, in
good faith and in such manner as it may deem equitable, adjust the Financial Targets to reflect the
projected effect of such transaction(s) or event(s) on the Financial Targets.

 

 

     Section 3.5 Conformity to Securities Laws. The Optionee acknowledges that the
Plan is intended to conform to the extent necessary with all provisions of the Securities Act and
the Exchange Act and any and all regulations and rules promulgated thereunder by the Securities and
Exchange Commission, including without limitation Rule 16b-3. Notwithstanding anything herein to
the contrary, the Plan, the Stockholders Agreement and this Agreement shall be administered, and
the Option is granted and may be exercised, only in such a manner as to conform to such laws, rules
and regulations. To the extent permitted by applicable law, the Plan and this Agreement shall be
deemed amended to the extent necessary to conform to such laws, rules and regulations.

     Section 3.6 Amendment, Suspension and Termination. The Option may be wholly
or partially amended or otherwise modified, suspended or terminated at any time or from time to
time by the Administrator or the Board, provided that, except as provided by Section 8.1 of the
Plan, neither the amendment, suspension nor termination of this Agreement shall, without the
consent of the Optionee, alter or impair any rights or obligations under the Option.

ARTICLE IV

DEFINITIONS

     Whenever the following terms are used in this Agreement, they shall have the meaning specified
below unless the context clearly indicates to the contrary. Capitalized terms used in this
Agreement and not defined below shall have the meaning given such terms in the Plan. The singular
pronoun shall include the plural, where the context so indicates.

     Section 4.1 [Intentionally omitted.]

     Section 4.2 Agreement. “Agreement” shall have the meaning set forth in the
Stock Option Grant Notice.

     Section 4.3 Applicable Year. “Applicable Year” shall have the meaning set
forth in Section 2.2(a).

     Section 4.4 Cause. “Cause” shall mean,

          (a) the Board’s determination that the Optionee failed to substantially perform his or her
duties (other than any such failure resulting from the Optionee’s disability) which is not remedied
within ten days after receipt of written notice from the Company or one of its Subsidiaries, as
applicable, specifying such failure;

          (b) the Board’s determination that the Optionee failed to carry out, or comply with any lawful
and reasonable directive of the Board or the Optionee’s immediate supervisor, which is not remedied
within ten days after receipt of written notice from the Company or one of its Subsidiaries, as
applicable, specifying such failure;

          (c) the Optionee’s conviction, plea of no contest, plea of nolo contendere, or imposition of
unadjudicated probation for any felony or a crime involving moral turpitude;

 

 

          (d) the Optionee’s unlawful use (including being under the influence) or possession of illegal
drugs on the Company’s or one of its Subsidiaries’, as applicable, premises or while performing the
Optionee’s duties and responsibilities; or

          (e) the Optionee’s commission of a material act of fraud, embezzlement, misappropriation,
willful misconduct, or breach of fiduciary duty against the Company or one of its Subsidiaries, as
applicable.

Notwithstanding the foregoing, if the Optionee is a party to a written employment or consulting
agreement with the Company (or one of its Subsidiaries), then “Cause” shall be as such term is
defined in the applicable written employment or consulting agreement.

     Section 4.5 Company. “Company” shall mean Sunshine Acquisition Corporation.

     Section 4.6 EBITDA. “EBITDA” for a given Fiscal Year shall mean consolidated
earnings before interest, taxes, depreciation, and amortization of the Company and its consolidated
Subsidiaries, adjusted for management fees paid to the Principal Stockholders, or its Affiliates,
less all annual bonuses payable with respect to the applicable Fiscal Year to the extent not
deducted, as reflected on the Company’s audited consolidated financial statements for such Fiscal
Year, but excluding certain extraordinary and non-recurring items as determined by the
Administrator. EBITDA shall include earnings from any company acquired by the Company on or before
March 31, 2006.

     Section 4.7 EBITDA Target. “EBITDA Target” for a given year shall be as set
forth in Appendix B of this Agreement, subject to the provisions of Section 3.4.

     Section 4.8 Exercise Price. “Exercise Price” shall mean the per share price
set forth in the Stock Option Grant Notice.

     Section 4.9 Final Expiration Date. “Final Expiration Date” shall mean the
date set forth in the Stock Option Grant Notice.

     Section 4.10 Financial Targets. “Financial Targets” shall have the meaning
set forth in Section 3.4.

     Section 4.11 Fiscal Year. “Fiscal Year” shall mean the fiscal year of the
Company, as in effect from time to time.

     Section 4.12 Grant Date. “Grant Date” shall be the date set forth in the
Stock Option Grant Notice.

     Section 4.13 “IPO” means a public offering of Common Stock pursuant to a
registration statement filed in accordance with the Securities Act.

     Section 4.14 Internal Rate of Return. “Internal Rate of Return” shall mean,
with respect to any Investment, a dollar amount representing:

          (a) Performance Options, a 40% Investor Return on such Investment, and

 

 

          (b) For Superior Options, a 50% Investor Return on such Investment.

     For purposes of calculating the Internal Rate of Return:

     (x) The amount of an Investment shall be the amount paid by such Principal Stockholder to any
Person (including, without limitation, the Company, any Subsidiary, or any underwriter) for the
purchase of equity securities; provided that if such Principal Stockholder shall have acquired such
equity securities directly from another Principal Stockholder or through an uninterrupted series of
Principal Stockholders, the amount of such Investment shall be the amount initially paid to
purchase such equity securities from a Person other than a Principal Stockholder; and

     (y) The initial date of an Investment shall be the date such Principal Stockholder purchased
such equity securities from any Person (including, without limitation, the Company, any Subsidiary,
or any underwriter); provided that if such Principal Stockholder acquired such equity securities
directly from another Principal Stockholder or through an uninterrupted series of Principal
Stockholders, the initial date of such Investment shall be the date such equity securities were
initially acquired from a Person other than a Principal Stockholder.

     Section 4.15 Investment. “Investment” shall mean any investment of funds by
the Principal Stockholders in equity securities of the Company and its Subsidiaries.

     Section 4.16 Investor Return. “Investor Return” shall mean the annual
compounded pre-tax internal rate of return on a given Investment determined with respect to the
period beginning on the initial date of such Investment and ending on the effective date of a
Liquidity Event.

     Section 4.17 Liquidity Event. “Liquidity Event” shall mean either (a) the
consummation of the sale, transfer, conveyance or other disposition in one or a series of related
transactions, of the equity securities of the Company or its successor held, directly or
indirectly, by all of the Principal Stockholders in exchange for currency, such that immediately
following such transaction (or series of related transactions), the total number of all equity
securities held, directly or indirectly, by all of the Principal Stockholders and any Affiliate of
any Principal Stockholder(s) is, in the aggregate, less than 50% of the total number of equity
securities (as adjusted for the occurrence of a Corporate Event) held, directly or indirectly, by
all of the Principal Stockholders as of November 23, 2005; or (b) the consummation of the sale,
lease, transfer, conveyance or other disposition (other than by way of merger or consolidation), in
one or a series of related transactions, of all or substantially all of the assets of the Company,
or the Company and its Subsidiaries taken as a whole, to any “person” (as such term is defined in
Section 13(d)(3) of the Exchange Act) other than to any Principal Stockholder(s) or an Affiliate of
any Principal Stockholder(s).

     Section 4.18 Liquidity Proceeds. “Liquidity Proceeds” shall mean the sum of
(a) the aggregate fair-market value of the consideration actually received (excluding any
management or similar fees) by the Principal Stockholders on their Investment in connection with a
Liquidity Event, after taking into account all post closing adjustments and after deducting all
transaction costs and expenses, and assuming exercise of all options and warrants to purchase
equity

 

 

securities of the Company outstanding as of the effective date of such Liquidity Event (after
giving effect to different dates of investment, if any, and after giving effect to any dilution of
securities or instruments arising in connection with such Liquidity Event); provided however, that
if the Principal Stockholders retain any Investment or portion thereof following such Liquidity
Event, the fair market value of such Investment (or portion) immediately following such Liquidity
Event shall be deemed “consideration received” for purposes of calculating the Liquidity Proceeds,
and provided further that the fair market value of any non-cash consideration (including stock)
shall be determined by the Board in its sole discretion as of the date of such Liquidity Event and
(b) the amount of cash dividends the Principal Stockholders receive on the Investment from time to
time.

     Section 4.19 Option(s). “Option(s)” shall mean the option(s) to purchase
Common Stock granted under this Agreement.

     Section 4.20 Performance Options. “Performance Option(s)” shall mean the
portion of the Options designated as Performance Options in the Stock Option Grant Notice.

     Section 4.21 Plan. “Plan” shall mean the 2006 Equity Incentive Plan of SS&C
Technologies Holdings, Inc..

     Section 4.22 Share. “Share” shall mean a share of Common Stock

     Section 4.23 Stock Option Grant Notice. “Stock Option Grant Notice” shall
mean the first page of this Agreement.

     Section 4.24 Superior Options. “Superior Options” shall mean the portion of
the Options designated as Superior Options in the Stock Option Grant Notice.

     Section 4.25 Time Options. “Time Options” shall mean the portion of the
Options designated as Time Options in the Stock Option Grant Notice.

     Section 4.26 Vesting Commencement Date. “Vesting Commencement Date” shall
have the meaning set forth in the Stock Option Grant Notice.

     Section 4.27 Yearly Performance Based Acceleration. “Yearly Performance Based
Acceleration” shall have the meaning set forth in Section 2.2(a).

***

 

 

APPENDIX B

EBITDA TARGETS

($ Millions)

As of the end of the fiscal year

	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 	 
	Performance Measure	 	2006*	 	2007*	 	2008	 	2009	 	2010	 	2011
	EBITDA Target
	 	$	[**]	 	 	$	[**]	 	 	$	[**]	 	 	$	[**]	 	 	$	[**]	 	 	$	[**]	 

	 	 	 
	 	 	Performance Options awarded in 2006 relate to EBITDA Targets from fiscal years 2006 to 2010.

 

			
	*	 	On April 18, 2007, the Board of Directors approved (i) the vesting, as of April 18, 2007, of 50%
of the Performance Options granted to the employees of SS&C Technologies, Inc. through March 31,
2007 (the “2006 Performance Options”) under the Plan that would have vested if the Company had
equaled or exceeded the EBITDA Target for Fiscal Year 2006 ; (ii) the vesting, conditioned upon the
meeting of the EBITDA Target for Fiscal Year 2007, of the other 50% of the 2006 Performance
Options; and (iii) the reduction of the EBITDA Target for fiscal year 2007 from $[**] million to
$[**] million for options granted after April 18, 2007.exv10w1

 

Exhibit 10.1

SECOND AMENDMENT TO LEASE

     THIS SECOND AMENDMENT TO LEASE (hereinafter referred to as the “Amendment”) dated as of June
6, 2006 by and among Danbury Buildings, Inc., a Florida corporation acting as agent for Danbury
Buildings Co., L.P., a Delaware limited partnership having offices c/o Sunbelt Investment Holdings,
Inc., 220 Congress Park Drive, Delray Beach, FL 33445 (hereinafter referred to as “Overlandlord”),
Union Carbide Corporation, a New York corporation having offices at 400 West Sam Houston Parkway
South, Houston, TX 77042 (hereinafter referred to as the “Landlord”), and Penwest Pharmaceuticals
Co., a Washington corporation having offices at 39 Old Ridgebury Road, Danbury, CT 06810
(hereinafter referred to as the “Tenant”).

WITNESSETH

     Whereas, Overlandlord’s predecessor corporations and Landlord executed that certain Lease
Agreement dated as of December 29, 1986, as amended thereafter, for the building now known as
Corporate Center (hereinafter referred to as the “Prime Lease”); and

     Whereas, Landlord and Tenant executed that certain Lease Agreement dated as of February 3,
2003, which Lease Agreement was amended by Lease Amendment and Attornment Agreement dated as of
March 15, 2004, (said Lease Agreement as so amended is hereinafter referred to as the “Lease”) to
sublease office space at the building commonly known as Corporate Center in Danbury Connecticut;
and

     Whereas, the Lease provides Tenant with certain Renewal Options, as therein defined, to extend
the Term of the Lease and by Letter dated March 17, 2006 from Tenant to Overlandlord, the Tenant
has elected to exercise its first Renewal Option to extend the term of the Lease for one (1) year;
and

     Whereas, the parties wish to amend the Lease accordingly;

     Now, Therefore, in consideration of the mutual covenants and obligations contained herein,
Landlord and Tenant hereby amend the Lease as follows:

     1.      Incorporation and Definitions. The foregoing Recitals are hereby incorporated
into and made an integral part of this Amendment as if fully set forth herein. Capitalized terms
used in this Amendment which are not defined herein shall have the meanings ascribed to such terms
in the Lease.

     2.      Term. The Lease shall be amended to provide that the Term of the Lease
(hereinafter referred to as the “Term”) shall be extended to and including December 31, 2007 and
the termination date of the Lease (hereinafter referred to as the “Termination Date”) shall be
December 31, 2007.

 

 

     3.      Base Rent. During the period commencing on December 31, 2006 through December 31,
2007 Tenant shall pay Base Rent (hereinafter referred to as the “Base Rent”) in the amount of Five
Hundred Thirty Seven Thousand One Hundred Seventy Five Dollars and No Cents ($537,175.00), payable
in equal monthly installments in the amount of Forty Four Thousand Seven Hundred Sixty Four Dollars
and Fifty Eight Cents ($44,764.58) which Base Rent monthly installments shall be paid in advance on
the first day of January, 2007 and on the first day of each and every month thereafter during the
Term. All Rent is payable without notice, set-off or demand.

     4.      Condition of Premises. Tenant hereby acknowledges and agrees as of the date hereof
that it is in full possession of the Premises, that Tenant is satisfied with and accepts the
condition of the Premises existing as of the date hereof, that Landlord has performed all of its
obligations under the Lease and that Landlord has no obligation to improve or repair the Premises,
or to pay for or reimburse Tenant for any such improvements or repairs.

     5.      Broker. Landlord, Overlandlord and Tenant each represent and warrant that there
were no real estate brokers or agents involved in connection with the Lease, as amended hereby,
except for Cushman & Wakefield Inc. who represented the Tenant and Grubb & Ellis Company who
represented the Landlord and Overlandlord. Overlandlord agrees to pay any fee or commission owed
to Grubb & Ellis Company and to Cushman & Wakefield, Inc. in connection with the Lease as amended
hereby. Landlord and Overlandlord, on the one hand, and Tenant, on the other hand, each indemnify
and hold harmless the other against any and all claims for real estate commissions or finder’s fees
due to their respective brokers and from any other brokers incurred as a result of the acts of the
indemnifying party.

     6.      Continuing Effect. Except as expressly modified and amended by this instrument,
the terms, covenants and conditions of the Lease are hereby ratified and confirmed, and remain in
full force and effect. In the event of any conflict between the terms of the Lease and of this
Amendment, the terms of this Amendment shall control.

     7.      Estoppel. As an inducement to Landlord and Overlandlord to enter into this
Amendment the Tenant hereby warrants and represents to Landlord and Overlandlord that: (i) the
Lease as amended hereby, has not been assigned or any of the Premises sublet; (ii) the Lease as
amended hereby, is in full force and effect and has not been modified, supplemented, or amended;
(iii) to the knowledge of Tenant, Landlord is not in default under the Lease and Tenant has no
defenses, setoffs, claims or counterclaims against Landlord arising out of the Lease, as amended
hereby, or in any way relating thereto; (iv) Tenant has not paid any rentals more than one (1)
month in advance; (v) Tenant has accepted and is in full and complete occupancy and possession of
all of the Premises demised pursuant to the Lease, as amended hereby, and the improvements and
space required to be furnished according to the Lease have been satisfactorily completed in all
respects and Landlord has fulfilled all of its duties of an inducement nature required to have been
fulfilled to date; (vi) to the knowledge of Tenant, no payments, reimbursements, credits or offsets
are due from Landlord to Tenant under the Lease, as amended hereby, and no work is required to be
done by Landlord to any of the premises demised under

2

 

said Lease. As an inducement to Tenant to enter into this Amendment the Landlord and Overlandlord
hereby warrant and represent to Tenant that: (i) the Lease as amended hereby, is in full force and
effect and has not been modified, supplemented, or amended; (ii) to the knowledge of Landlord and
Overlandlord, Tenant is not in default under the Lease.

     8.      Binding Effect. The terms, conditions and covenants of the Lease, as modified
hereby, shall be binding upon and inure to the benefit of Landlord, Tenant and their respective
successors and permitted assigns.

     9.      Headings. The paragraph headings herein contained are for convenience and shall not
be deemed to govern or control the substance hereof.

     10.    Governing Law. This Amendment shall be governed and construed under the laws of
the State of Connecticut.

     11.    Authority. Landlord, Overlandlord and Tenant represent, each for themselves and
with respect only to themselves, that; (i) they have full authority to enter into this Amendment,
are validly formed and in good standing under the laws of the state in which they were formed and
the State of Illinois; (ii) that this Amendment has been duly approved by all necessary corporate
action and that the person or persons signing on their behalf are duly authorized to execute this
Amendment with binding effect upon Landlord, Overlandlord and Tenant; (iii) this Amendment
constitutes the legal, valid and binding obligations of Landlord, Overlandlord and Tenant,
enforceable in accordance with its terms; (iv) the execution and delivery of this Amendment does
not and will not: (a) contravene any provision of the organizational documents comprising Landlord,
Overlandlord or Tenant; or (b) require consent by a third party or such consent has, as of the
date hereof, been obtained; and the consummation by Landlord, Overlandlord and Tenant of this
Amendment will not result in a breach of any of the terms of any agreement or instrument to which
Landlord, Overlandlord or Tenant are a party or by which such entities are bound.

     12.    Counterparts. This Amendment may be executed in two or more counterparts, all of
which, when taken together, shall constitute a single instrument.

     IN WITNESS WHEREOF, the parties hereto have signed and delivered this Amendment as of the date
first above written.

	 	 	 	 	 	 	 
	LANDLORD:	 	 	 	UNION CARBIDE CORPORATION, 
a New York corporation
	 
	 	 	 	 	 	 
	WITNESSES:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Charles B. Kendall
	 

	 	 	 	 	 	 
	/s/ [Illegible]

	 	 	 	Name:
	 	Charles B. Kendall
	 

	 	 	 	 	 	 
	 

	 	 	 	Title:
	 	Authorized Representative
	 

	 	 	 	 	 	 
	/s/ [Illegible]

	 	 	 	 	 	 
	 

	 	 	 	 	 	 

3

 

	 	 	 	 	 	 	 
	TENANT:	 	 	 	PENWEST PHARMACEUTICALS CO.,
a Washington corporation
	 
	 	 	 	 	 	 
	WITNESSES:
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ Pamela A. Masella

	 	 	 	By:
	 	/s/ Frank Muscolo
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Frank Muscolo
	 

	 	 	 	 	 	 
	/s/
Kara Winters

	 	 	 	Title:
	 	Controller
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	OVERLANDLORD:	 	 	 	DANBURY BUILDINGS CO. L.P., 
a Delaware limited partnership
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	DANBURY BUILDINGS, INC.
	 

	 	 	 	Its:
	 	General Partner
	 
	 	 	 	 	 	 
	WITNESSES
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ [Illegible]

	 	 	 	By:
	 	/s/ Richard Reeves
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Richard Reeves
	/s/ [Illegible]

	 	 	 	Title:
	 	Authorized Signatory
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Raymond Gardner
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Raymond Gardner
	 

	 	 	 	Title:
	 	Authorized Signatory
	 
	 	 	 	 	 	 
	 	 	 	 	DANBURY BUILDINGS, INC., 
a Florida corporation
	 
	 	 	 	 	 	 
	WITNESSES
	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	/s/ [Illegible]

	 	 	 	By:
	 	/s/ Richard Reeves
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Richard Reeves
	/s/ [Illegible]

	 	 	 	Title:
	 	Authorized Signatory
	 

	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	 	 	By:
	 	/s/ Raymond Gardner
	 

	 	 	 	 	 	 
	 

	 	 	 	Name:
	 	Raymond Gardner
	 

	 	 	 	Title:
	 	Authorized Signatory

4

 

THIRD AMENDMENT TO LEASE

     THIS THIRD AMENDMENT TO LEASE (hereinafter referred to as the “Amendment”) dated as of April
13, 2007 by and among Danbury Buildings Co., L.P., a Delaware limited partnership having offices
c/o Sunbelt Investment Holdings, Inc., 220 Congress Park Drive, Delray Beach, FL 33445 (hereinafter
referred to as “Landlord”), and Penwest Pharmaceuticals Co., a Washington corporation having
offices at 39 Old Ridgebury Road, Danbury, CT 06810 (hereinafter referred to as the “Tenant”).

WITNESSETH

     Whereas, Union Carbide Corporation, a New York corporation (hereinafter referred to as the
“UCC”), and Tenant executed that certain Lease Agreement dated as of February 3, 2003, (hereinafter
referred to as the “Original Lease “) which Original Lease was amended by Lease Amendment and
Attornment Agreement dated as of March 15, 2004, (hereinafter referred to as the “First
Amendment”) and by Second Amendment to Lease dated as of June 6, 2006 by and among Landlord, Tenant
and UCC (hereinafter referred to as the “Second Amendment”, the Original Lease as amended by the
First Amendment and the Second Amendment are hereinafter collectively referred to as the “Lease”)
with respect to certain office space at the building commonly known as Corporate Center in Danbury
Connecticut; and

     Whereas, Landlord has succeeded to the interest of Dow under the Lease; and

     Whereas, the parties wish to further amend the Lease as herein set forth

     Now, Therefore, in consideration of the mutual covenants and obligations contained herein,
Landlord and Tenant hereby amend the Lease as follows:

     1. Incorporation and Definitions. The foregoing Recitals are hereby incorporated
into and made an integral part of this Amendment as if fully set forth herein. Capitalized terms
used in this Amendment which are not defined herein shall have the meanings ascribed to such terms
in the Lease.

     2. Term. The Lease shall be amended to provide that the Term of the Lease shall be
extended for a two (2) year period commencing on January 1, 2008 and ending on December 31, 2009
(said period is hereinafter referred to as the “Extended Term”) and the termination date of the
Lease (hereinafter referred to as the “Termination Date “) shall be December 31, 2009.

     3. Base Rent. During the Extended Term pay Base Rent (hereinafter referred to as the
“Base Rent”) in the amount of One Million One Hundred Seventeen Thousand Three Hundred Twenty Four
Dollars and No Cents ($1,117,324.00), payable in equal monthly installments in the amount of Forty
Six Thousand Five Hundred Fifty Five Dollars and Seventeen Cents ($46,555.17) which Base Rent
monthly installments shall be paid in advance on the first day of January, 2008 and on the first
day of each and every month thereafter during the Extended Term. All Rent is payable without
notice, set-off or demand.

     4. Electricity Rent. In addition to all other sums required to be paid under
the Lease, Tenant shall pay Landlord Electricity Charges with in the monthly amount of Two Thousand
Six Hundred Eighty Five Dollars and Eighty Eight Cents ($2,685.88) payable on the first day of each
and every month during the term hereof. Such Electricity Charges shall be increased from time to
time upon notice from Landlord to Tenant by an amount equal to the percentage increase in the cost
per kilowatt hour charged Landlord by the utility

 

 

company providing electricity to the Building over the cost per kilowatt hour charged Landlord
during the month of April, 2007.

     5. Renewal. Landlord hereby grants to Tenant the conditional right, exercisable at
Tenant’s option, (hereinafter referred to as the “Renewal Option”) to renew the term of this Lease
for two (2) terms of six (6) months each (each such term is hereinafter referred to as the
“Renewal Term”). If exercised, and if the conditions applicable thereto have been satisfied, each
Renewal Term shall commence immediately following the end of the Term, as so extended. The rights
of renewal herein granted shall be applicable only to the entire Premises then leased by Tenant and
shall be subject to all of the terms and conditions contained in this Lease, except this Paragraph
5 and except that the Base Rent for each six (6) month Renewal Term shall be Two Hundred Eighty
Four Thousand Seven Hundred Two Dollars and Seventy Five Cents ($284,702.75) payable in equal
monthly installments in the amount of Forty Seven Thousand Four Hundred Fifty Dollars and Five
Cents ($47,450.05) on the first day of each Renewal Term and on the first day of each and every
month thereafter in each applicable Renewal Term. The rights of renewal herein granted are in lieu
of any rights of renewal, extension and expansion contained in the Lease, and except as set forth
in this Paragraph 5, Tenant agrees that it shall have no other rights to extend the Term or lease
additional premises. The rights of renewal herein granted to Tenant shall be subject to, and shall
be exercised in accordance with, the following terms and conditions:

	 	A.	 	Tenant shall exercise its right of renewal with respect to the Renewal Term by
giving Landlord written notice (hereinafter referred to as the
“Renewal Notice ”)
thereof not later than three (3) months prior to the expiration of the then-current
Term of this Lease.
	 
	 	B.	 	The Renewal Option herein granted shall automatically terminate upon the
earliest to occur of: (i) the expiration or termination of this Lease; (ii) the
termination of Tenant’s right to possession of the premises; (iii) the assignment of
this Lease or subletting by Tenant of any portion of the Premises; or (iv) the failure
of Tenant to timely or properly exercise the Renewal Option.
	 
	 	C.	 	If an Event of Default exists under this Lease on the date Tenant sends a
renewal notice or any time thereafter until the applicable Renewal Term is to commence,
then, at Landlord’s election, the Renewal Term shall not commence and the term of this
Lease shall expire at the expiration of the then-current term of this Lease.
	 
	 	D.	 	Tenant agrees to accept the premises to be covered by this Lease during the
Renewal Term in an “as is” physical condition and Tenant shall not be entitled to
receive any allowance, credit, concession or payment from Landlord for the improvement
thereof.

     6. Broker. Landlord and Tenant each represent and warrant that there were no real
estate brokers or agents involved in connection with the Lease, as amended hereby, except for
Cushman & Wakefield Inc. who represented the Tenant and Grubb & Ellis Company who represented the
Landlord. Landlord agrees to pay any fee or commission owed to Grubb & Ellis Company and to
Cushman & Wakefield, Inc. in connection with this Amendment. Landlord and Tenant, indemnify and
hold harmless the other against any and all claims for real estate commissions or finder’s fees due
to their respective brokers and from any other brokers incurred as a result of the acts of the
indemnifying party.

2

 

     7. Continuing Effect. Except as expressly modified and amended by this instrument,
the terms, covenants and conditions of the Lease are hereby ratified and confirmed, and remain in
full force and effect. In the event of any conflict between the terms of the Lease and of this
Amendment, the terms of this Amendment shall control.

     8. Estoppel. Tenant hereby warrants and represents to Landlord that: (i) the Lease as
amended hereby, has not been assigned or any of the Premises sublet; (ii) the Lease as amended
hereby, is in full force and effect and has not been modified, supplemented, or amended; (iii) to
the knowledge of Tenant, Landlord is not in default under the Lease and Tenant has no defenses,
setoffs, claims or counterclaims against Landlord arising out of the Lease, as amended hereby, or
in any way relating thereto; (iv) Tenant has not paid any rentals more than one (1) month in
advance; (v) Tenant has accepted and is in full and complete occupancy and possession of all of the
Premises demised pursuant to the Lease, as amended hereby, and the improvements and space required
to be furnished according to the Lease have been satisfactorily completed in all respects and
Landlord has fulfilled all of its duties of an inducement nature required to have been fulfilled to
date; (vi) to the knowledge of Tenant, no payments, reimbursements, credits or offsets are due from
Landlord to Tenant under the Lease, as amended hereby, and no work is required to be done by
Landlord to any of the premises demised under said Lease. As an inducement to Tenant to enter into
this Amendment the Landlord hereby warrant and represent to Tenant that: (i) the Lease as amended
hereby, is in full force and effect and has not been modified, supplemented, or amended; (ii) to
the knowledge of Landlord Tenant is not in default under the Lease.

     9. Binding Effect. The terms, conditions and covenants of the Lease, as modified
hereby, shall be binding upon and inure to the benefit of Landlord, Tenant and their respective
successors and permitted assigns.

     10. Headings. The paragraph headings herein contained are for convenience and shall
not be deemed to govern or control the substance hereof.

     11. Governing Law. This Amendment shall be governed and construed under the laws of
the State of Connecticut.

     12. Authority. Landlord and Tenant represent, each for themselves and with respect
only to themselves, that; (i) they have full authority to enter into this Amendment, are validly
formed and in good standing under the laws of the state in which they were formed and the State of
Connecticut; (ii) that this Amendment has been duly approved by all necessary corporate action and
that the person or persons signing on their behalf are duly authorized to execute this Amendment
with binding effect upon Landlord and Tenant; (iii) this Amendment constitutes the legal, valid
and binding obligations of Landlord and Tenant, enforceable in accordance with its terms; (iv) the
execution and delivery of this Amendment does not and will not: (a) contravene any provision of the
organizational documents comprising Landlord or or Tenant; or (b) require consent by a third party
or such consent has, as of the date hereof, been obtained; and the consummation by Landlord and
Tenant of this Amendment will not result in a breach of any of the terms of any agreement or
instrument to which Landlord or Tenant are a party or by which such entities are bound.

     13. Counterparts. This Amendment may be executed in two or more counterparts, all of
which, when taken together, shall constitute a single instrument.

     IN WITNESS WHEREOF, the parties hereto have signed and delivered this Amendment as of the date
first above written.

3

 

	 	 	 	 	 
	TENANT:	 	PENWEST PHARMACEUTICALS CO., a Washington corporation
	 
	 	 	 	 
	WITNESSES:
	 	 	 	 
	/s/ Richard Meyer

	 	By:
	 	/s/ Jennifer L. Good
	 

	 	 	 	 
	 

	 	Name:
	 	Jennifer L. Good
	 

	 	 	 	 
	/s/ Pamela A. Masella

	 	Title:
	 	President & CEO
	 

	 	 	 	 

	 	 	 
	LANDLORD:

	 	DANBURY BUILDINGS CO. L.P., a Delaware limited partnership
	 
	 	 
	 

	 	By: DANBURY BUILDINGS, INC.
	 

	 	Its: General Partner

	 	 	 	 	 
	WITNESSES
	 	 	 	 
	 
	 	 	 	 
	/s/ [Illegible]

	 	By:
	 	/s/ Richard Reeves
	 

	 	 	 	 
	 

	 	 	 	Name: Richard Reeves
	/s/ [Illegible]

	 	Title:
	 	Authorized Signatory
	 

	 	 	 	 
	 
	 	 	 	 
	 

	 	By:
	 	/s/ William J. Ghory
	 

	 	 	 	 
	 

	 	Name:
	 	William J. Ghory
	 

	 	Title:
	 	Authorized Signatory

4

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