Document:

exv10w2

Exhibit 10.2

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

AMENDED AND RESTATED STOCK OPTION GRANT NOTICE

AND AMENDED AND RESTATED STOCK OPTION AGREEMENT

AMENDED AND RESTATED STOCK OPTION GRANT NOTICE

This Amended and Restated Stock Option Grant Notice and the attached Amended and Restated Stock
Option Agreement amend and restate the Stock Option Grant Notice and Stock Option Agreement between
the Company and the Optionee dated ______________ and shall be effective upon the closing of an
IPO (as defined in the Amended and Restated Stock Option Agreement).

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
Amended and Restated Stock Option Grant Notice (“Stock Option Grant Notice”) and Amended
and Restated Stock Option Agreement (“Stock Option Agreement”).

You have been granted an Option to purchase Common Stock of SS&C Technologies Holdings, Inc. (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 (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]

[Stock Option Grant Notice]

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SS&C TECHNOLOGIES HOLDINGS, INC.

By 

    Title:

[Stock Option Grant Notice]

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APPENDIX A

AMENDED AND RESTATED 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 1

     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 on the day of the
month of the Grant Date 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

 

			
	1	 	William A. Etherington received an option that was fully vested as of the grant date.

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          (a) Classification of Performance Options and Superior Options. The Superior Options shall
become Performance Options. The Performance Options shall be divided into six groups: the 2006
Options, the 2007 Options, the 2008 Options, the 2009 Options, the 2010 Options and 2011 Options.
The number of Performance Options in each group shall be determined as follows:

               (i) Each of the 2006 Options, 2007 Options, 2008 Options and 2009 Options shall have a number
of Performance Options equal to 20% of the original number of Performance Options set forth in the
Stock Option Grant Notice.

               (ii) The 2010 Options shall have a number of Performance Options equal to the sum of (A) 20%
of the original number of Performance Options set forth in the Stock Option Grant Notice and (B)
50% of the original number of Superior Options set forth in the Stock Option Grant Notice.

               (iii) The 2011 Options shall have a number of Performance Options equal to 50% of the original
number of Superior Options set forth in the Stock Option Grant Notice.

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

               (i) The 2006 Options, 2007 Options, 2008 Options and 2009 Options are all fully vested, as
previously determined by the Administrator.

               (ii) 100% of the 2010 Options shall vest and become exercisable on December 31, 2010 if, on
such date (or within 120 days thereafter), the Administrator determines that EBITDA for 2010 equals
or exceeds the high end of the EBITDA Range for 2010. If the Administrator determines that the
EBITDA for 2010 is below the low end of the EBITDA Range for 2010, none of the 2010 Options shall
vest and if the Administrator determines that the 2010 EBITDA is within the 2010 EBITDA Range, then
the Administrator will use linear interpolation to determine the percentage of the 2010 Options
that shall vest and become exercisable, which percentage shall be between 50% and 100% of the 2010
Options. Any 2010 Options that do not vest shall be added to the 2011 Options, except as otherwise
provided by the Board.

               (iii) The 2011 Options shall vest and become exercisable as provided in clause (ii), but with
“2011” substituted for “2010”, except that any 2011 Options that do not vest shall remain unvested
but may become vested and exercisable pursuant to Section 2.2(c) or (d).

          (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)

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50% of the Performance Options, and (y) the percentage of Performance Options that vested
pursuant to Section 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 3.0 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) a
portion of the Performance Options that is between 50% and 100% of the Performance Options as
determined by the Administrator using linear interpolation and (y) the percentage of Performance
Options that vested pursuant to Section 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 3.0 times the Investment, the Performance Options shall become fully vested and exercisable
immediately prior to the effective date of the Liquidity Event.

          (d) 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 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 2.4 No Vesting of Options. Any portion of the Options that have not
become vested or exercisable pursuant to Sections 2.1 or 2.2 on or prior to the date of the
Optionee’s Termination of Service shall be forfeited and shall not thereafter become exercisable.

     Section 2.5 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 2.6.

     Section 2.6 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, ninety (90) 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;

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               (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) 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 2.7 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 2.8 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. In order to exercise an option, the Participant must
provide written notice of exercise to the Company in accordance with the Plan and this Agreement.

     Section 2.9 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

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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 2.6(a)(ii) or Section 2.6(a)(iv) and ending on the date such option is scheduled to
expire pursuant to Section 2.6(a)(ii) or Section 2.6(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 Ranges specified in Appendix B
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

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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 EBITDA Ranges to reflect the projected effect of such
transaction(s) or event(s) on the EBITDA Ranges.

     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 of
1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (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.

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     Section 4.3 [Intentionally omitted.]

     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 SS&C Technologies Holdings, Inc.

     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 Range. “EBITDA Range” 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.

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     Section 4.10 Fiscal Year. “Fiscal Year” shall mean the fiscal year of the
Company, as in effect from time to time.

     Section 4.11 Grant Date. “Grant Date” shall be the date set forth in the
Stock Option Grant Notice.

     Section 4.12 “IPO” means the Company’s initial public offering of Common Stock
pursuant to a registration statement filed in accordance with the Securities Act.

     Section 4.13 Internal Rate of Return. “Internal Rate of Return” shall mean,
with respect to any Investment, a dollar amount representing a 40% 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 4.14 Investment. “Investment” shall mean any investment of funds by
the Principal Stockholders in equity securities of the Company and its Subsidiaries.

     Section 4.15 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 4.16 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 immediately following the consummation of the IPO; or (b) the
consummation of the sale, lease, transfer, conveyance or other disposition (other than by way of

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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). For the avoidance of
doubt, the IPO shall not constitute a “Liquidity Event.”

     Section 4.17 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 4.18 Option(s). “Option(s)” shall mean the option(s) to purchase
Common Stock granted under this Agreement.

     Section 4.19 Performance Options. “Performance Option(s)” shall mean the
portion of the Options designated as Performance Options in the Stock Option Grant Notice.

     Section 4.20 Plan. “Plan” shall mean the 2006 Equity Incentive Plan of SS&C
Technologies Holdings, Inc.

     Section 4.21 Principal Stockholders. “Principal Stockholders” shall mean (i)
Carlyle Partners IV, L.P., a Delaware limited partnership, and CP IV Coinvestment, L.P. a Delaware
limited partnership, and (ii) any of their Affiliates to which (X) any of the Principal
Stockholders or any other Person transfers Common Stock or (Y) the Company issues Common Stock.

     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.

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

***

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APPENDIX B

EBITDA RANGES

($ Millions)

As of the end of the fiscal year

	 	 	 	 	 	 
	 
	 	Fiscal Year	 	 	EBITDA Range	 
	 	2010

	 	 	To be determined by the Board	 
	 	2011

	 	 	To be determined by the Board	 
	 

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

AMENDED AND RESTATED STOCK OPTION GRANT NOTICE

AND AMENDED AND RESTATED STOCK OPTION AGREEMENT

AMENDED AND RESTATED STOCK OPTION GRANT NOTICE

This Amended and Restated Stock Option Grant Notice and the attached Amended and Restated Stock
Option Agreement amend and restate the Stock Option Grant Notice and Stock Option Agreement between
the Company and the Optionee dated _________ and shall be effective upon the closing of an
IPO (as defined in the Amended and Restated Stock Option Agreement).

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
Amended and Restated Stock Option Grant Notice (“Stock Option Grant Notice”) and Amended
and Restated Stock Option Agreement (“Stock Option Agreement”).

You have been granted an Option to purchase Common Stock of SS&C Technologies Holdings, Inc. (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 (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]

[Stock Option Grant Notice]

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     SS&C TECHNOLOGIES HOLDINGS, INC.

	By

Title:

	 

[Stock Option Grant Notice]

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APPENDIX A

AMENDED AND RESTATED 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 on the day of the
month of the Grant Date 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

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          (a) Classification of Performance Options and Superior Options. The Superior Options shall
become Performance Options. The Performance Options shall be divided into five groups: the 2007
Options, the 2008 Options, the 2009 Options, the 2010 Options and the 2011 Options. The number of
Performance Options in each group shall be determined as follows:

               (i) Each of the 2007 Options, 2008 Options and 2009 Options shall have a number of Performance
Options equal to 20% of the original number of Performance Options set forth in the Stock Option
Grant Notice.

               (ii) Each of the 2010 Options and the 2011 Options shall have a number of Performance Options
equal to the sum of (A) 20% of the original number of Performance Options set forth in the Stock
Option Grant Notice and (B) 50% of the original number of Superior Options set forth in the Stock
Option Grant Notice.

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

               (i) The 2007 Options, 2008 Options and 2009 Options are all fully vested, as previously
determined by the Administrator.

               (ii) 100% of the 2010 Options shall vest and become exercisable on December 31, 2010 if, on
such date (or within 120 days thereafter), the Administrator determines that EBITDA for 2010 equals
or exceeds the high end of the EBITDA Range for 2010. If the Administrator determines that the
EBITDA for 2010 is below the low end of the EBITDA Range for 2010, none of the 2010 Options shall
vest and if the Administrator determines that the 2010 EBITDA is within the 2010 EBITDA Range, then
the Administrator will use linear interpolation to determine the percentage of the 2010 Options
that shall vest and become exercisable, which percentage shall be between 50% and 100% of the 2010
Options. Any 2010 Options that do not vest shall be added to the 2011 Options, except as otherwise
provided by the Board.

               (iii) The 2011 Options shall vest and become exercisable as provided in clause (ii), but with
“2011” substituted for “2010”, except that any 2011 Options that do not vest shall remain unvested
but may become vested and exercisable pursuant to Section 2.2(c) or (d).

          (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) 50% of the Performance
Options, and (y) the percentage of Performance Options that vested pursuant to Section 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 3.0 times the Investment, the Performance Options shall

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vest and become exercisable with respect to that percentage of the Performance Options equal
to the difference between (x) a portion of the Performance Options that is between 50% and 100% of
the Performance Options as determined by the Administrator using linear interpolation and (y) the
percentage of Performance Options that vested pursuant to Section 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 3.0 times the Investment, the Performance Options shall become fully vested and exercisable
immediately prior to the effective date of the Liquidity Event.

          (d) 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 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 2.4 No Vesting of Options. Any portion of the Options that have not
become vested or exercisable pursuant to Sections 2.1 or 2.2 on or prior to the date of the
Optionee’s Termination of Service shall be forfeited and shall not thereafter become exercisable.

     Section 2.5 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 2.6.

     Section 2.6 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, ninety (90) 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.

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          (b) 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 2.7 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 2.8 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. In order to exercise an option, the Participant must
provide written notice of exercise to the Company in accordance with the Plan and this Agreement.

     Section 2.9 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 2.6(a)(ii) or
Section 2.6(a)(iv) and ending on the date such option is scheduled to expire pursuant to Section
2.6(a)(ii) or Section 2.6(a)(iv), as applicable, and subject to any applicable legal conditions or
restrictions, the Company shall, upon the Optionee’s

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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 Ranges specified in Appendix B
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,

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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 EBITDA Ranges to reflect the projected effect of such
transaction(s) or event(s) on the EBITDA Ranges.

     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 of
1933, as amended (the “Securities Act”), and the Securities Exchange Act of 1934, as amended (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 [Intentionally omitted.]

     Section 4.4 Cause. “Cause” shall mean,

          (a) the Board’s determination that the Optionee failed to substantially perform

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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 SS&C Technologies Holdings, Inc.

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

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     Section 4.11 Grant Date. “Grant Date” shall be the date set forth in the
Stock Option Grant Notice.

     Section 4.12 “IPO” means the Company’s initial public offering of Common Stock
pursuant to a registration statement filed in accordance with the Securities Act.

     Section 4.13 Internal Rate of Return. “Internal Rate of Return” shall mean,
with respect to any Investment, a dollar amount representing a 40% 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 4.14 Investment. “Investment” shall mean any investment of funds by
the Principal Stockholders in equity securities of the Company and its Subsidiaries.

     Section 4.15 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 4.16 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 immediately following the consummation of the IPO; 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

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Principal Stockholder(s) or an Affiliate of any Principal Stockholder(s). For the avoidance
of doubt, the IPO shall not constitute a “Liquidity Event.”

     Section 4.17 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 4.18 Option(s). “Option(s)” shall mean the option(s) to purchase
Common Stock granted under this Agreement.

     Section 4.19 Performance Options. “Performance Option(s)” shall mean the
portion of the Options designated as Performance Options in the Stock Option Grant Notice.

     Section 4.20 Plan. “Plan” shall mean the 2006 Equity Incentive Plan of SS&C
Technologies Holdings, Inc.

     Section 4.21 Principal Stockholders. “Principal Stockholders” shall mean (i)
Carlyle Partners IV, L.P., a Delaware limited partnership, and CP IV Coinvestment, L.P. a Delaware
limited partnership, and (ii) any of their Affiliates to which (X) any of the Principal
Stockholders or any other Person transfers Common Stock or (Y) the Company issues Common Stock.

     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.

***

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APPENDIX B

EBITDA RANGES

($ Millions)

As of the end of the fiscal year

	 	 	 	 	 	 
	 
	 	Fiscal Year	 	 	EBITDA Range	 
	 	2010

	 	 	To be determined by the Board	 
	 	2011

	 	 	To be determined by the Board	 
	 

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Exhibit 10.1

LODGENET INTERACTIVE CORPORATION

EXECUTIVE EMPLOYMENT AGREEMENT

     AGREEMENT, dated as of February 25, 2010 by and between LodgeNet Interactive Corporation, a
Delaware corporation located at 3900 West Innovation Street, Sioux Falls, South Dakota 57107
(“Corporation”), and Frank Elsenbast (“Executive”).

     WHEREAS, the Executive is being offered employment by the Corporation in the capacity and with
the title set forth on Appendix A hereto:

     WHEREAS, the Board of Directors (“Board”) has determined that it would be in the best interest
of the Corporation and its shareholders to provide for the employment of Executive on the terms set
forth herein; and

     WHEREAS, the Executive is willing to serve the Corporation in accordance with the provisions
of this Agreement.

     NOW, THEREFORE, in consideration of the foregoing premises and the mutual covenants and
obligations hereinafter set forth, the parties hereto hereby agree as follows:

     1. Definitions. Capitalized terms used herein shall have the meanings set forth in
Appendix B, which is attached hereto and incorporated herein by reference.

     2. Term of Employment. The employment of Executive by the Corporation pursuant to
this Agreement shall be for a period (the “Term”) beginning on the date hereof and continuing,
unless sooner terminated as provided in Section 7 herein, through December 31, 2010; provided,
however, that on each December 31, commencing with 2010, such period of employment shall
automatically be extended for an additional year, (in which case the Term shall be deemed to have
been extended through December 31 of the next succeeding year), unless sixty (60) days prior to the
expiration of the then-current Term either party hereto has given written notice to the other that
such party does not wish to extend the period of employment.

     3. Duties. During the Term, Executive shall serve as in the capacities and with the
title(s) set forth in Appendix A, or in such other office or offices to which he shall be elected
by the Board of Directors of the Corporation (“Board”) with Executive’s approval, performing the
duties of such office or offices as are assigned to Executive by the Board or committees of the
Board or the Chief Executive Officer of the Corporation. During the Term, Executive shall devote
his full time and attention to the business of the Corporation and the discharge of the
aforementioned duties, except for permitted vacations, absences due to illness, and reasonable time
for attention to personal affairs.

     4. Work Location. During the Term, Executive shall have an office at the facility
specified on Appendix A.

 

 

     5. Compensation. As compensation for the services performed hereunder, the
Corporation shall pay or provide to Executive the following:

	 	(a)	 	The Corporation shall pay Executive a salary (the “Base Salary”), calculated
at the rate per annum set forth on Appendix A (which Base Salary may be increased by
the Corporation at any time and from time to time in its discretion). The Base Salary
shall be payable monthly, semi-monthly or weekly according to the Corporation’s
general practice for its executives, for the Term of this Agreement.
	 
	 	(b)	 	During the Term, Executive shall be allowed to participate in such bonus and
other incentive compensation programs in accordance with their terms as the
Corporation may have in effect from time to time for its executive personnel, and all
compensation and other entitlements earned pursuant to such programs shall be in
addition to, and shall not in any way reduce, the amount payable as Base Salary. A
minimum bonus for calendar year 2010 shall be payable as set forth on Appendix A
hereto.
	 
	 	(c)	 	During the Term, Executive shall be entitled to:

	 	(i)	 	participate in such retirement, investment, health (medical, hospital
and/or dental) insurance, life insurance, disability insurance and accident
insurance plans and programs as are maintained in effect from time to time by
the Corporation for its executive employees;
	 
	 	(ii)	 	participate in other non-duplicative benefit programs which the
Corporation may from time to time offer generally to executive personnel of
the Corporation; and
	 
	 	(iii)	 	accrue vacation time, sick leave, or other forms of paid time off
in accordance with the Corporation’s policy for executive personnel, subject
to any minimum accrual amounts specified in Appendix A hereto.

	 	(d)	 	During the Term, the Board from time to time in its discretion may grant to
Executive stock options, restricted stock and other rights related to shares of the
Corporation’s common stock, and may designate the terms on which such rights vest.

     6. Effect of Disability and Certain Hazards. Executive shall not be obligated to
perform the services set forth in this Agreement during any period of Disability, and relief from
such obligation shall not in any way affect his rights hereunder except to the extent that such
Disability may result in termination of his employment by the Corporation pursuant to Section 7
herein.

 

 

     7. Termination of Employment. The employment of Executive by the Corporation
pursuant to this Agreement may be terminated on or prior to the expiration of the then current Term
as follows:

	 	(a)	 	Termination in the Event of Death. In the event of Executive’s death
prior to the expiration of the Term, such employment shall automatically terminate on
the date of Executive’s death.
	 
	 	(b)	 	Termination in the Event of Disability. The Corporation may
terminate this Agreement due to Executive’s Disability prior to the expiration of the
Term on not less than thirty (30) days prior written notice, unless prior to the
expiration of said 30 day period, Executive shall have returned to the effective
performance of Executive’s duties on a full-time basis. Any dispute as to the
existence of a Disability shall be settled by the opinion of an impartial physician
selected by the parties or their representatives or, in the event of failure to make a
joint selection after request therefore by either party to the other, a physician
selected by the Corporation, with the fees and expenses of any such physician to be
borne by the Corporation.
	 
	 	(c)	 	Termination for Cause. The Corporation, by giving written notice of
termination to Executive, may terminate Executive’s employment at any time prior to
the expiration of the Term for Cause, with Cause to be determined by the Board after
reasonable notice to the Executive and an opportunity for Executive to be heard at a
meeting of the Board and with reasonable opportunity (of not less than 30 days) in the
case of willful neglect of material duties to cease such neglect. For purposes of
this Section 7(c), no act or failure to act on the Executive’s part shall be
considered “willful” unless done or omitted to be done by Executive not in good faith
and without reasonable belief that his action or omission was in the best interest of
the Corporation.
	 
	 	(d)	 	Termination Without Cause. The Corporation may terminate such
employment at any time prior to the expiration of the Term without Cause (which shall
be for any reason not covered by preceding subsections (a) through (c)) upon 60 days
prior written notice to Executive.
	 
	 	(e)	 	Date of Termination. Unless otherwise agreed by the Executive and
Corporation or otherwise provided in this Agreement, the effective date of termination
shall be determined as follows:

	 	(i)	 	if this Agreement is terminated by death, the effective date
of shall be the date of Executive’s death,
	 
	 	(ii)	 	if the Executive’s employment is terminated due to a
Disability, the effective date of termination shall be thirty (30) days after
the Notice of Termination is given (provided that the Executive shall not have

 

 

	 	 	 	returned to the effective performance of his duties on a full-time basis
during such period),
	 
	 	(iii)	 	if the Executive’s employment is terminated for Cause, the
effective date of termination shall be the date specified in the Notice of
Termination, and
	 
	 	(iv)	 	if the Executive’s employment is terminated for any other
reason, the effective date of termination shall be sixty (60) days after the
Notice of Termination.

	 	8.	 	Payments Upon Termination.
	 
	 	(a)	 	Except as otherwise provided in subsections (b) or (c) of this Section 8,
upon termination of Executive’s employment by the Corporation, all compensation due
Executive under this Agreement and under each plan or program of the Corporation in
which Executive may be participating at the time shall cease to accrue as of the date
of such termination (except, in the case of any such plan or program, if and to the
extent otherwise provided in the terms of such plan or program), and all such
compensation accrued as of the date of such termination but not previously paid shall
be paid to Executive at the time such payment otherwise would be due, and in any event
no later than the Last Payment Date. Unless otherwise expressly provided in the terms
of the bonus plan or program of the Corporation in which the Executive is a
participant at the time of his termination, if the termination of Executive’s
employment is for any reason other than a termination for Cause in accordance with
Section 7(c) above, then a pro rata portion of the “target” full year’s bonus shall be
deemed to have accrued for the Executive under such bonus plan or program for the
portion of the year ended on the date of the termination, which shall be paid to the
Executive within 10 days of the date of termination and no later than the Last Payment
Date.
	 
	 	(b)	 	If Executive’s employment pursuant to this Agreement is terminated by the
Corporation without Cause pursuant to Section 7(d) above, or if the Corporation elects
at any time not to renew or extend this Agreement at the expiration of the then
current Term, and provided that subsection (c) below does not apply, then Executive
shall receive, subject to the mitigation provisions of subsection (d) below, in a
single sum payable at the time of termination, and no later than the Last Payment
Date, a cash severance payment (the “Severance Payment”) from the Corporation. The
amount of the Severance Payment shall be equal to the Executive’s then monthly Base
Salary increased by a factor of twenty percent (20%) to account for the Executive’s
loss of benefits, multiplied by the number of months in the Severance Period as set
forth in Appendix A hereof. Executive shall have the right to purchase health and
dental coverage under the Company’s group policies then in effect for the Severance
Period. The Severance Payment is

 

 

	 	 	 	subject to required withholding. The Executive shall not be entitled to Severance
Payments in any event if he is terminated for Cause as permitted by Section 7(c).
	 
	 	(c)	 	Termination Following Change in Control.

	 	(i)	 	If a Change in Control of the Corporation occurs during the Term
of this Agreement, or if Executive’s employment with the Corporation is
terminated by the Corporation without Cause prior to but in connection with a
Change in Control (meaning that at the time of such termination the Company had
entered into an agreement, the consummation of which would result in a Change in
Control, or any person had publicly announced its intent to take or consider
actions that would constitute a Change in Control, or the Board adopts a
resolution to the effect that a potential Change in Control for purposes of this
Agreement has occurred), then the Executive shall be entitled to the
compensation provided in Section 8(c)(ii) below upon the termination of the
Executive’s employment by the Corporation or by the Executive, unless
the Corporation elects to terminate this Agreement pursuant to the provisions of
Section 7 (a), (b) or (c) above or because the Executive terminates this
Agreement other than for Good Reason.
	 
	 	(ii)	 	If the Executive shall be terminated from employment with the
Corporation following the occurrence of a Change of Control such that Executive
is entitled to the compensation set forth in this Section 8(c)(ii), then the
Executive shall be entitled to receive the following severance benefits in lieu
of any other benefits the Executive would otherwise be entitled to pursuant to
this Agreement:

	 	(a)	 	Severance Payment. The Corporation
shall pay as severance pay to the Executive an amount equal to the
Base Salary that Executive would have received for an eighteen (18)
month period (the “Payment Period”) at an annualized rate equal to
the higher of the rate in effect immediately prior to the Change in
Control or the rate in effect on the date of the Notice of
Termination. Such cash payment shall be payable in a single sum,
within 10 days following the Executive’s Date of Termination and no
later than the Last Payment Date.
	 
	 	(b)	 	Incentive Awards. The Executive
shall receive a cash payment in a single sum, within 10 days
following the Executive’s Date of Termination, and no later than the
Last Payment Date, in the amount equal a pro rata portion of the
“target” full year’s bonus for the Executive under such bonus plan or
program for the portion of the year ending on the date of the
termination, with a partial month counted as a completed month.

 

 

	 	(c)	 	Acceleration of Equity Grants. Any
non-vested stock options, restricted stock or other equity award
granted to the Executive by the Corporation shall become 100% vested
and all restrictions or conditions to the receipt of such securities,
included but not limited to any applicable performance criteria,
shall be waived, up to 100% of the “target” shares that were to have
been delivered to the executive under any performance-based plan, or
100% of the total shares under a time-based vesting plan. In
addition, (i) any stock options shall be exercisable until the first
to occur of (y) the expiration date of the applicable option or (z)
one (1) year following the date of termination and (ii) shares of
restricted stock or other equity awards shall be delivered free of
all restrictions within 30 days of the date of termination. If any
plan pursuant to which stock options, restricted stock or other
equity awards have been issued is not assumed by the successor
entity, all such rights will immediately accelerate and be
exercisable on the date of the Change of Control.
	 
	 	(d)	 	Insurance and Welfare Benefits.
During the shorter of (i) the Payment Period or (ii) 18 months
following the date of termination (the “Coverage Period”) the
Executive shall be entitled to the continuation of the same or
equivalent life, health, hospitalization, dental and disability
insurance coverage and other employee insurance or welfare benefits
that he had received (including equivalent coverage for his spouse
and dependent children) immediately prior to the Change in Control.
In the event that Executive is ineligible under the terms of such
insurance to continue to be so covered, the Corporation shall provide
the Executive with substantially equivalent coverage through other
sources. If the Executive prior to a Change in Control was receiving
any cash-in-lieu payments designed to enable the Executive to obtain
insurance coverage of his choosing, the Corporation shall, in
addition to any other benefits to be provided under this Section
8(c)(ii)(d), provide Executive with a lump-sum payment equal to the
amount of such in-lieu payments that the Executive would have been
entitled to receive over the Coverage Period, no later than the Last
Payment Date. The benefits to be provided under this Section
8(c)(ii)(d) shall be reduced to the extent of the receipt of
substantially equivalent coverage by the Executive from any successor
employer.
	 
	 	(e)	 	Tax Gross-Up. If any payments
received by Executive pursuant to this Agreement will be subject to
the excise tax (the

 

 

	 	 	 	“Excise Tax”) imposed by Section 4999 of the Internal Revenue Code of
1986, as amended (the “Code”), or any successor or similar provision
of the Code, the Corporation shall pay to the Executive additional
compensation such that the net amount received by the Executive after
deduction of any Excise Tax (and taking into account any federal,
state and local income taxes payable by the Executive as a result of
the receipt of such gross-up compensation), shall be equal to the
total payments he would have received had no such Excise Tax (or any
interest or penalties thereon) been paid or incurred. The Corporation
shall pay such additional compensation no later than the Last Payment
Date. The calculation of the tax gross-up payment shall be approved
by the Corporation’s independent certified public accounting firm and
the Executive’s designated financial adviser.

	 	(iii)	 	Notice of Good Reason. If Executive believes that
Executive is entitled to terminate employment with the Corporation for Good
Reason, the Executive may apply in writing to the Corporation for confirmation
of such entitlement prior to the Executive’s actual separation from
employment, by following the claims procedure set forth in Section 14 hereof.
The submission of such a request by Executive shall not constitute Cause for
the Corporation to terminate an Executive, and Executive shall continue to
receive all compensation and benefits otherwise payable pursuant to this
Agreement at the time of such submission throughout the resolution of the
matter pursuant to the procedures set forth in Section 14 hereof. If the
Executive’s request for a termination of employment for Good Reason is denied
under both the request and appeal procedures set forth in Section 14(b) and
(c) hereof, then the parties shall use their best efforts to resolve the claim
within ninety (90) days after the claim is submitted to binding arbitration
pursuant to Section 14(d).
	 
	 	(iv)	 	All rights of the Executive pursuant to this Section 8(c)
shall terminate on the second anniversary following the occurrence of a Change
in Control.

	 	(d)	 	No Mitigation. The Executive shall not be required to mitigate the
amount of any payments provided for by this Agreement by seeking employment or
otherwise, nor shall the amount of any cash payments or benefit provided under this
Agreement be reduced by any compensation or benefit earned by the Executive after his
Date of Termination (except as provided in Section 8(c)(ii)(d) above).

 

 

	 	(e)	 	Additional Requirement for Severance Compensation. The amounts
payable pursuant to this Section 8 shall be paid only upon an Executive’s execution
and delivery to the Corporation of an agreement and general release in such form as is
acceptable to the Corporation, in its sole discretion, under which, among other
things, the Executive shall release and discharge the Corporation and related persons
from all claims and liabilities relating to the Executive’s employment with the
Corporation and/or the termination of the Executive’s employment, including without
limitation, claims under the Age Discrimination in Employment Act and the Older
Workers Benefit Protection Act, where applicable. Notwithstanding anything to the
contrary contained herein, payment of the amounts payable pursuant to this Section 8
will be paid only after the Release Effective Date and expiration of all periods of
permitted rescission under federal or state law for such releases.

     9. Confidential Information. Executive shall not at any time during the period of
employment and thereafter disclose to others or use any trade secrets or any other confidential
information belonging to the Corporation or any of its subsidiaries or Affiliates, including,
without limitation, drawings, plans, programs, specifications, code, algorithms, methods,
techniques, systems, processes, designs and diagrams and non-public information relating to (i)
customers of the Corporation or its subsidiaries or Affiliates, (ii) the business plans and
budgets of the Corporation, its subsidiaries or Affiliates, and (iii) the financial information,
including projections, plans and budgets of the Corporation, its subsidiaries or Affiliates, except
as may be required to perform his duties hereunder. The provisions of this Section 9 shall survive
the termination of Executive’s employment with the Corporation, provided that after the termination
of Executive’s employment with the Corporation, the restrictions contained in this Section 9 shall
not apply to any such trade secret or confidential information which becomes generally known in the
trade from a source other than Executive.

     10. Patents, Etc. The Corporation shall be entitled to any and all ideas, know-how
and inventions, whether patentable or not, which Executive shall conceive, make or develop during
the Executive’s period of employment with the Corporation, which relates to the business of the
Corporation or any of its subsidiaries or Affiliates. Executive shall, from time to time, at the
request of the Corporation, execute and deliver such instruments or documents, and shall perform or
do such acts or things, as reasonably may be requested in order that the Corporation may have the
benefit of such ideas, know-how and inventions and, in particular, so that patent applications may
be prepared and filed in the United States Patent Office, or in appropriate places in foreign
countries, covering any of the patentable ideas or inventions covered by this Agreement as
aforesaid, including appropriate assignments vesting in the Corporation or any of its subsidiaries
or Affiliates (or any successor to the Corporation or any of its subsidiaries or Affiliates) full
title to any and all such ideas, inventions and applications. Further, Executive will cooperate
and assist the Corporation in the prosecution of any such applications in order that patents may
issue thereon.

     11. Non-Competition.

 

 

	 	(a)	 	If Executive receives severance compensation pursuant to Section 8 above,
or if Executive is terminated for Cause, Executive agrees that Executive will not,
without the prior written consent of the Corporation, directly or indirectly, during
the eighteen (18) month period following the Date of Termination, engage in any
business or employment or provide any consulting service to any person or
organization, or to a division or operating unit of any organization which is involved
principally in the provision of video or broadband services to lodging or healthcare
facilities in the United States (a “Competing Business”); provided, however, that the
parties acknowledge and agree an entity involved in the cable, satellite or other pay
television business generally shall not be deemed to be a Competing Business if (i)
the provision of video or broadband services to lodging or healthcare facilities
comprises less than twenty (20%) percent of the revenues of such business and (ii)
Executive’s principal duties do not involve operation or oversight of that portion of
the enterprise involved in the provision of video or broadband services to lodging or
healthcare facilities). In the event that Executive violates the provisions of this
subparagraph (a), the Corporation shall have the right, in addition to such other
remedies as the Corporation may have available to it, to recover that portion of the
amounts payable to Executive pursuant to the provisions of Sections 8(b) or 8(c)(ii)
of this Agreement which relate to the period of time Executive is found to have been
in violation of the terms of this subparagraph.
	 
	 	(b)	 	During the Term, Executive shall not enter into endeavors that are
competitive with the business or operations of the Corporation, and shall not own an
interest in, manage, operate, join, control, lend money or render financial or other
assistance to or participate in or be connected with, as an officer, employee,
director, partner, stockholder, member, venturer, advisor, consultant or otherwise
(except for passive investments of not more than a one percent interest in the
securities of a publicly held corporation regularly traded on a national securities
exchange or in an over-the-counter securities market) any Competing Business.

     12. Successors.

	 	(a)	 	The Corporation shall require any successor (whether direct or indirect, by
purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Corporation, by agreement in form and substance
reasonably satisfactory to the Executive, to expressly assume and agree to perform the
obligations of the Corporation under this Agreement in the same manner and to the same
extent that the Corporation would be required to perform this Agreement if no such
succession had taken place. Failure of the Corporation to obtain such agreement prior
to the effective date of any such succession shall be a breach of this Agreement and
shall entitle the Executive to compensation from the Corporation in the same amount
and on the same

 

 

	 	 	 	terms as he would be entitled to receive hereunder if he terminated his employment for
Good Reason, except that for purposes of implementing the foregoing, the date on which
any such succession becomes effective shall be deemed the Date of Termination. As used
in this Agreement, “Corporation” shall mean the Corporation as hereinbefore defined and
any successor to its business and/or assets as aforesaid, which successor executes and
delivers the agreement provided for in this Section 12(a) or which otherwise becomes
bound by the terms and provisions of this Agreement by operation of law.
	 
	 	(b)	 	This Agreement and all rights of the Executive hereunder shall inure to the
benefit of and be enforceable by the Executive’s personal or legal representatives,
executors, administrators, successors, heirs, distributees, devisees and legatees. If
the Executive should die after his termination while any amounts would still be
payable to him hereunder if he had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the Executive’s devisee, legatee, or other designee or, if there be no
such designee, to the Executive’s estate.

     13. Notices. Any notice required or permitted by this Agreement shall be in
writing, sent by registered or certified mail, return receipt requested, or by recognized courier
service (regularly providing proof of delivery), addressed to the Corporation at the Corporation’s
then principal office, or to the Executive at the address set forth under the Executive’s signature
below, as the case may be, or to such other address or addresses as any party hereto may from time
to time specify in writing for the purpose in a notice given to the other parties in compliance
with this Section 13. Notices shall be deemed given when received.

     14. Administrator and Claims Procedure.

	 	(a)	 	In the event the Executive believes he or she has been wrongfully denied the
payment of benefits, the Executive shall follow the procedures set forth in this
Section 14. If the Executive is claiming benefits as a result of a termination of
employment pursuant to Section 7(c), the Executive shall disregard subsections (b) and
(c) hereof and shall proceed directly to arbitration pursuant to subsection (d)
hereof. The Administrator for purposes of this Agreement shall be the Corporation.
The Corporation shall have the right to designate one or more Corporation employees as
the Administrator at any time. The Corporation shall give the Executive written
notice of any change in the Administrator, or in the address or telephone number of
the same.
	 
	 	(b)	 	The Executive, or other person claiming through the Executive, must file a
written claim for benefits with the Administrator as a prerequisite to the payment of
benefits under this Agreement. The Administrator shall make all determinations as to
the right of any person to receive benefits under subsections (b) and (c) of this
Section 14. Any denial by the Administrator of

 

 

	 	 	 	a claim for benefits by the Executive, his heirs or personal representative (“the
claimant”) shall be stated in writing by the Administrator and delivered or mailed to
the claimant within 30 days after receipt of the claim, unless special circumstances
require an extension of time for processing the claim. If such an extension is
required, written notice of the extension shall be furnished to the claimant prior to
the termination of the initial 30-day period. In no event shall such extension exceed
a period of 30 days from the end of the initial period. Any notice of denial shall set
forth the specific reasons for the denial, specific reference to pertinent provisions
of this Agreement upon which the denial is based, a description of any additional
material or information necessary for the claimant to perfect his claim, with an
explanation of why such material or information is necessary, and any explanation of
claim review procedures, written to the best of the Administrator’s ability in a manner
that may be understood without legal or actuarial counsel.
	 
	 	(c)	 	A claimant whose claim for benefits has been wholly or partially denied by
the Administrator may request, within 30 days following the date of such denial, in a
writing addressed to the Administrator, a review of such denial. The claimant shall
be entitled to submit such issues or comments in writing or otherwise as he shall
consider relevant to a determination of his claim, and he may include a request for a
hearing in person before the Administrator. Prior to submitting his request, the
claimant shall be entitled to review such documents as the Administrator shall agree
are pertinent to his claim. The claimant may, at all stages of review, be represented
by counsel, legal or otherwise, of his choice, provided that the fees and expenses of
such counsel shall be borne by the claimant, unless the claimant is successful, in
which case, such costs shall be borne by the Corporation. All requests for review
shall be promptly resolved. The Administrator’s decision with respect to any such
review shall be set forth in writing and shall be mailed to the claimant not later
than 30 days following receipt by the Administrator of the claimant’s request unless
special circumstances, such as the need to hold a hearing, require an extension of
time for processing, in which case the Administrator’s decision shall be so mailed not
later than 60 days after receipt of such request.
	 
	 	(d)	 	A claimant who has followed the procedure in subsections (b) and (c) of this
section, or has been terminated pursuant to Section 7(c) after having been given the
opportunity to be heard by the Board, and who has not obtained full relief on his
claim for benefits, may, within 60 days following his receipt of the Administrator’s
written decision on review, or the Board’s decision, as the case may be, apply in
writing to the Administrator for expedited and binding arbitration of his claim before
an arbitrator in Sioux Falls, South Dakota, in accordance with the commercial
arbitration rules of the American Arbitration Association, as then in effect, or
pursuant to such other form of alternative dispute resolution as the parties may agree
(collectively, the “arbitration”). The Corporation shall advance filing fees and
other costs required to initiate the arbitration, as well as up to $2,500 for
Executive’s initial attorney fees

 

 

	 	 	 	(which fees and costs shall not be recoverable by the Corporation). The arbitrator’s
sole authority shall be to interpret and apply the provisions of this Agreement; he
shall not change, add to, or subtract from, any of its provisions. The arbitrator
shall have the authority to award compensatory damages, but shall not have the
authority to award punitive, consequential or exemplary damages. The arbitrator shall
have the power to compel attendance of witnesses at the hearing. Any court having
jurisdiction may enter a judgment based upon such arbitration. The arbitrator shall be
appointed by mutual agreement of the Corporation and the claimant pursuant to the
applicable commercial arbitration rules. The arbitrator shall be a professional person
with a reputation in the community for expertise in employee benefit matters and who is
unrelated to the claimant and any employees of the Corporation. All decisions of the
arbitrator shall be final and binding on the claimant and the Corporation.

     15. Legal Fees and Expense. The Corporation shall pay Executive’s out-of-pocket
expenses, including attorneys’ fees, but not to exceed a total of $10,000 for any proceeding or
group of related proceedings to enforce, construe or determine the validity of the provisions for
termination benefits in accordance with this Agreement, provided, however, that if any arbitration
or litigation results in a finding in favor of Executive contrary to the position of the
Corporation, then Executive will be reimbursed for all reasonable legal and related costs
regardless of the limitation set forth above; and further provided that in no event will Executive
be held liable for the legal and related costs of the Corporation in an event of a finding in favor
of the Corporation. Amounts, if any, paid to the Executive pursuant to this Section 15 shall be in
addition to all other amounts due to executive pursuant to this Agreement.

     16. Non-Alienation of Benefits. Except in so far as this provision may be contrary
to applicable law, no sale, transfer, alienation, assignment, pledge, collateralization or
attachment of any benefits under this Agreement shall be valid or recognized by the Corporation.

     17. Miscellaneous.

	 	(a)	 	This Agreement contains the entire agreement of the parties relating to the
subject matter hereof and supersedes any prior written or oral agreements or
understandings relating to the subject matter hereof. No modification or amendment of
this Agreement shall be valid unless in writing and signed by or on behalf of the
parties hereto. A waiver of the breach of any term or condition of this Agreement
shall not be deemed to constitute a waiver of any subsequent breach of the same or any
other term or condition. This Agreement is intended to be performed in accordance
with, and only to the extent permitted by, all applicable laws, ordinances, rules and
regulations. If any provisions of this Agreement, or the application thereof to any
person or circumstance, shall, for any reason and to any extent, be held invalid or
unenforceable, such invalidity and unenforceability shall not affect the

 

 

	 	 	 	remaining provisions hereof and the application of such provisions to other persons or
circumstances, all of which shall be enforced to the greatest extent permitted by law.
Subject to the provisions of Section 8(c)(ii)(e), the compensation provided to the
Executive pursuant to this Agreement shall be subject to any withholdings and
deductions required by any applicable tax laws. Any amounts payable to the Executive
hereunder after the death of the Executive shall be paid to the Executive’s estate or
legal representative. The headings in this Agreement are inserted for convenience of
reference only and shall not be a part of or control or affect the meaning of any
provision hereof. For purposes hereof, the masculine gender shall be deemed to include
the feminine gender, as appropriate. This Agreement may be executed in one or more
counterparts and each counterpart shall be deemed an original but all counterparts
together shall constitute one instrument.
	 
	 	(b)	 	This Agreement shall inure to the benefit of and shall be binding upon the
successors and assigns of the Corporation, including any party with which the
Corporation may merge or consolidate or to which it may transfer substantially all of
its assets.
	 
	 	(c)	 	The rights and obligations of Executive under this Agreement are expressly
declared and agreed to be personal, nonassignable and nontransferable during his life,
but upon his death this Agreement shall inure to the benefit of his heirs, legatees
and legal representatives of his estate, but only to the extent of any remaining
financial obligations of the Corporation.
	 
	 	(d)	 	The waiver by either party hereto of its rights with respect to a breach of
any provision of this Agreement by the other shall not operate or be construed as a
waiver of any rights with respect to any subsequent breach.
	 
	 	(e)	 	No modification, amendment, addition, alteration or waiver of any of the
terms, covenants or conditions hereof shall be effective unless made in writing and
duly executed by the Corporation and Executive.
	 
	 	(f)	 	This Agreement may be executed in any number of counterparts, each of which
shall be deemed an original, but all of which together will constitute but one and the
same agreement.
	 
	 	(g)	 	If any provision of this Agreement is determined to be invalid or
unenforceable under any applicable statute or rule of law, it is to that extent to be
deemed omitted and it shall not affect the validity or enforceability of any other
provision.
	 
	 	(h)	 	Any notice required or permitted to be given under this Agreement shall be in
writing, and shall be deemed given when sent by registered or certified mail, postage
prepaid, addressed as follows:

 

 

	 	 	 	 	 
	 

	 	If to Executive:
	 	to the address set forth on
Appendix B hereto
	 
	 	 	 	 
	 

	 	If to the Corporation:
	 	LodgeNet Interactive Corporation.

3900 West Innovation Street

Sioux Falls, SD 57107

Attn: General Counsel

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

     18. Prior
Agreements Superseded.  This Agreement supersedes all prior agreements, if
any, between the parties hereto with respect to the subject matter hereof. In addition, the
definitions of “Cause,” “Good Reason” and “Change in Control” contained herein supersede and
replace any conflicting provisions in any option grant agreement or any restricted stock agreement
between the Corporation and the Executive (in any such case, an “Equity Agreement”) and the
Executive, by executing this Agreement, hereby agrees that all his or her existing Equity
Agreements, and all Equity Agreements to which he or she may become subject or party to during the
Term, are and shall be hereby amended to supersede and replace such provisions.

     19. Survival of Certain Provisions. The provisions of sections 9, 10 and 11(a) of
this Agreement shall survive the termination of this Agreement, provided that any claims pursuant
to such sections must be brought within one year of the date of the termination of this agreement.

     20. Compliance with Section 409A of Internal Revenue Code (“Section 409A). The
provisions of this Agreement regarding amounts that are determined to be subject to Section 409A
shall be interpreted and administered in accordance with Section 409A and the regulations and
guidance issued thereunder. Notwithstanding anything to the contrary contained herein, no payment
of an amount subject to Section 409A on account of the Executive’s “separation from service” (as
defined in Section 409A and the regulations and guidance issued thereunder) shall be made to the
Executive if the Executive is determined to be a “specified employee” within the meaning of Section
409A at the time of the Executive’s separation from service. Any such amounts to which the
Executive would otherwise be entitled under this Agreement during the first six months following a
separation from service shall be accumulated and paid on the first day of the seventh month
following the Executive’s separation from service.

     21. 
Governing Law. This Agreement shall be governed and construed in accordance with
the internal laws of the State of South Dakota. The parties agree that any suit or proceeding
arising out of this Agreement shall be brought and maintained exclusively in the federal or state
courts located in such state, and each of the parties hereby irrevocably submits to the exclusive
jurisdiction and venue of such courts.

 

 

     IN WITNESS WHEREOF, the parties have duly executed and delivered this Agreement as of the day
and year first above written.

	 	 	 	 	 	 	 	 	 
	EXECUTIVE:	 	 	 	LODGENET INTERACTIVE	 	 
	 	 	 	 	CORPORATION:	 	 
	 
	 	 	 	 	 	 	 	 
	/s/ Frank Elsenbast

	 	 	 	By:
	 	/s/ Scott Petersen	 	 
	 

	 	 	 	 	 	 

	 	 

			
	Address:	 	4740 Emerson Avenue

South Minneapolis, MN 55419

 

 

Appendix A

Employee Name: Frank Elsenbast

			
	Employee Address:	 	4740 Emerson Avenue

South Minneapolis, MN 55419

Position/Title:
Senior Vice President, Chief Financial Officer

Work Location: Sioux Falls, South Dakota.

Base Salary: $340,000 per annum.

Benefits Stipend: $1,500 per month.

Bonus Parameters: Executive will have right to participate in any bonus plan generally applicable
to Senior Vice Presidents of the Company, with 2010 bonus prorated based on nine months of
employment, subject to a minimum bonus for calendar year 2010 of $75,000.

Vacation Accrual: Four weeks per year, plus Company-recognized holidays

Severance Period: Eighteen (18) months

Time-Based Restricted Stock (separate agreement): 20,000 shares, 50% of which (10,000 shares) will
vest on the third anniversary of employment, and 50% of which (10,000 shares) will vest on the
fourth anniversary of employment

Stock Options (separate agreement): Option to purchase 30,000 shares of LodgeNet common stock at a
purchase price equal to the closing stock price on the first day of employment, which option will
vest as follows: 25% (7,500 shares) on each of the first, second, third and fourth anniversaries of
employment.

 

 

Appendix B

DEFINITIONS

For the purpose of this Agreement, the following terms have the meanings indicated:

“Affiliate” means any person or entity that directly or indirectly controls, is controlled by, or
is under common control with the Corporation.

“Cause” means one or more of the following:

(a) acts committed during the Term of this Agreement resulting in a felony
conviction under any federal or state statute;

(b) willfully engaging in dishonest or fraudulent action or omission resulting or
intended to result in any demonstrable and material financial or economic harm to
the Corporation, or which materially damages the Corporation’s reputation; or

(c) willful breach of this Agreement, willful neglect of the material duties of
the Executive under this Agreement, gross and willful misconduct, or willful and
material violation of (x) the Corporation’s Code of Business Conduct and Ethics or
(y) the Corporation’s Employee Handbook (as amended from time to time) which
results or is reasonably likely to result in any demonstrable and material
financial or economic harm to the Corporation, or to materially damage the
Corporation’s reputation.

“Change in Control” means the occurrence of any of the following:

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

 

 

	 	(b)	 	during any period subsequent to the date of this Agreement, a
majority of the members of the Board shall not for any reason be the
individuals who at the beginning of such period constitute the Board or those
persons who are nominated as new directors by a majority of the current
directors or their successors who have been so nominated; or
	 
	 	(c)	 	there shall be consummated any merger, consolidation (including a
series of mergers or consolidations), or any sale, lease, exchange or other
transfer (in one transaction or a series of related transactions) of all, or
substantially all, of the assets of the Corporation (meaning assets
representing thirty percent (30%) or more of the net tangible assets of the
Corporation or generating thirty percent (30%) or more of the Corporation’s
operating cash flow), or any other similar business combination or
transaction, but excluding any business combination or transaction
which: (i) would result in the voting stock of the Corporation immediately
prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting stock of the surviving entity) more than 70% of
the combined voting power of the voting stock of the Corporation (or such
surviving entity) outstanding immediately after giving effect to such
business combination or transaction; or (ii) would be effected to implement a
recapitalization (or similar transaction) of the Corporation in which no
“person” (as defined in subsection 3(a) hereof) or group of persons acting in
concert becomes the beneficial owner (as defined in subsection 3(a) hereof)
of thirty percent (30%) or more of the combined voting power of the then
outstanding voting stock of the Corporation; or
	 
	 	(d)	 	the adoption of any plan or proposal for the liquidation or
dissolution of the Corporation; or
	 
	 	(e)	 	the occurrence of any other event that would be required to be
reported in response to Item 6(e) of Schedule 14A of Regulation 14A of the
Exchange Act in effect on the date hereof.

“Disability” means any physical or mental condition which prevents the effective performance on a
full time basis by Executive of the duties set forth in this Agreement or otherwise assigned to
Executive as contemplated by this Agreement for a period of more than 180 days.

“Good Reason” means any of the following which occur following a Change of Control:

	 	(a)	 	the assignment to the Executive of any duties materially
inconsistent with the Executive’s positions, duties, responsibilities and
status with the Corporation immediately prior to a Change in Control, or a

 

 

	 	 	 	significant adverse alteration in the nature of the Executive’s reporting
responsibilities, titles, or offices as in effect immediately prior to a
Change in Control, or any removal of the Executive from, or any failure to
reelect the Executive to, any such positions, except in connection with a
termination of the employment of the Executive for Cause, Permanent
Disability, or as a result of the Executive’s death or by the Executive other
than for Good Reason;
	 
	 	(b)	 	a reduction by the Corporation in the Executive’s base salary or in
the percentage of base salary used in computing Executive’s bonus in effect
immediately prior to a Change in Control;
	 
	 	(c)	 	any material breach by the Corporation of any provision of this Agreement;
	 
	 	(d)	 	following a Change in Control, the Executive is excluded (without
substitution of a substantially equivalent plan) from participation in any
benefit, incentive, stock option, health, dental, insurance or pension plan
generally made available to persons at Executive’s level of responsibility in
the Corporation;
	 
	 	(e)	 	without the Executive’s express written consent, the requirement by
the Corporation that the Executive’s principal place of employment be
relocated more than fifty (50) miles from his place of employment prior to
the Change in Control, or travel on the Corporation’s business to an extent
materially greater than the Executive’s customary business travel
obligations;
	 
	 	(f)	 	the Corporation’s failure to obtain a satisfactory agreement from
any successor to assume and agree to perform the Corporation’s obligations
under this Agreement, as contemplated in Section 7(a) hereof.
	 
	 	“Last Payment Date” means the date that is two and one-half months after
the close of the taxable year in which the Executive incurs a separation from
service.

 

 

GENERAL RELEASE OF ALL CLAIMS

     This General Release of All Claims (“Agreement”) is entered into by and between the
undersigned,                                         (“Employee”) LODGENET INTERACTIVE CORPORATION (the “Company”). Employee
and the Company are collectively referred to as “Parties.”

     In exchange for the payments made pursuant to the severance provisions of the Employment
Agreement between Employee and the Company, Employee hereby acknowledges full and complete
satisfaction and hereby releases and forever discharges the Company and each of its affiliates,
subsidiaries, agents, directors, officers, shareholders, employees, attorneys, successors, and
assigns, from any and all claims arising from or connected with Employee’s employment by, or
separation from the Company, including but not limited to, any actions brought in tort or for
breach of contract, or claims arising under Title VII of the Civil Rights Act of 1964, the Age
Discrimination in Employment Act (“ADEA”), the Older Worker Benefits Protection Act (“OWBPA”), the
Fair Labor Standards Act, the Equal Pay Act, the Employee Retirement Income Security Act of 1974,
and any other federal or state statute, law or regulation relating to employment.

     In order to conform this release agreement with the rights provided by the Older Workers
Benefit Protection Act of 1990, Employee is aware of the following with respect to release of any
claims under the ADEA:

	 	(1)	 	the right to consult with an attorney before
signing this Release.
	 
	 	(2)	 	Forty-five (45) days, in which to consider
this Release and any ADEA claim; and
	 
	 	(3)	 	Seven (7) days after signing this Release to
revoke this release to any ADEA claim.

This Agreement shall not be effective until the expiration of seven (7) days following its
execution by Employee. In addition, Employee acknowledges that the Company has provided Employee
with a list of all employees eligible for and offered benefits under the ETA Plan, with their ages
and job titles in compliance with the OWBPA. Employee acknowledges that the names could change as
the Plan is implemented and that a current list will be available upon request at the Human
Resource office of the Company.

     Employee agrees not to use any confidential information or trade secrets acquired during
employment with the Company for any other business or employment without the prior written consent
of the Company. Employee hereby assigns to the Company all rights to any invention(s) developed or
will develop relating at the time of conception or reduction to practice to the Company’s business,
or resulting from work performed for the Company.

 

 

     Employee further agrees that this Agreement, the terms and conditions of this Agreement, and
any and all actions by the Parties in accordance therewith, are strictly confidential and Employee
agrees not to disclose, discuss or reveal said information to any other persons, entities or
organizations, except that Employee may disclose this information to immediate family members,
counsel, personal tax advisor, or as may be required by applicable law. However, a violation of
this confidentiality agreement by any third party referenced-above will constitute a breach of this
Agreement.

     The Parties hereby agree to submit any and all disputes regarding any aspect of this Agreement
or any act that allegedly has or would violate any provision of this Agreement, to final and
binding and confidential arbitration by a single neutral arbitrator as the exclusive remedy for
such claim or dispute. Subject to the terms of this paragraph, the arbitration proceedings shall
be conducted and administered by the American Arbitration Association (“AAA”) under its National
Rules for the Resolution of Employment Disputes then in effect. The arbitrator shall be
experienced in labor and employment matters and shall be appointed by agreement of the Parties
hereto or, if no agreement can be reached, pursuant to the AAA Rules. In addition, should any
party to this Agreement hereafter institute any legal action or administrative proceeding against
the other with respect to any claim waived by this Agreement or pursue any arbitrable dispute by
any method other than said arbitration, the prevailing party shall be entitled to recover from the
other party all damages, costs, expenses, and attorney’s fees incurred as a result of such action.

     This Agreement represents and contains the entire agreement between Employee and the Company
relating to the matters described herein, and supersedes all prior discussions and agreements,
whether oral or written.

     Employee affirms and represents that he is entering into this Agreement freely and
voluntarily, and that Employee is acting under no other inducement, or under any coercion, threat
or duress. Employee acknowledges that the contents of this document have been explained to Employee
and Employee understands the meaning and legal effect of this Agreement.

	 	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	 	 	 
	 	 	 	 	Employee Signature	 	 
	 
	 	 	 	 	 	 	 	 
	Dated:

	 	 	 	By:	 	 	 	 
	 

	 	 

	 	 	 	 

	 	 

 

 

Mr. Scott C. Petersen

Chief Executive Officer

LodgeNet Interactive Corporation

3900 West innovation Street

Sioux Falls, SD 57107

			
	Re:	 	Employment Agreement dated as of February 25, 2010

Dear Scott:

This will confirm our mutual understanding that, notwithstanding the Effective Date set forth in
the Employment Agreement between LodgeNet Interactive Corporation and the undersigned, our mutual
understanding is that my employment with LodgeNet will commence on April 19, 2010.

Very truly yours,

/s/ Frank Elsenbast

Frank P. Elsenbast

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