Document:

exv10w14

 

Exhibit 10.14

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 the Company, subject to the terms and
conditions set forth in this Stock Option Grant Notice, the Stock Option Agreement attached hereto
as Appendix A, Appendix B (collectively, the “Agreement”) and the Plan, as follows:

	 	 	 	 	 
	Name of Optionee:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Total Number of Shares subject to the Option:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Exercise Price per Share:

	 	$
 

	 	 
	 
	 	 	 	 
	Total Exercise Price:

	 	$
 

	 	 
	 
	 	 	 	 
	Grant Date:
	 	 	 	 
	 

	 	 

	 	 
	 
	 	 	 	 
	Type of Option:

	 	Non-Qualified Stock Option	 	 
	 
	 	 	 	 
	Final Expiration Date:

	 	[10 years from Grant Date]	 	 

	 	 	 
	Vesting Schedule:

	 	This Option will vest and become exercisable in accordance with
the vesting schedule set forth in Article II of the Stock Option
Agreement depending on the classification of the Option as
follows:

	 	 	 	 	 	 	 
	 

	 	Time Options:
	 	 	 	                     Shares Subject to the Option
	 
	 	 	 	 	 	 
	 

	 	Performance Options:
	 	 	 	                     Shares Subject to the Option
	 
	 	 	 	 	 	 
	 

	 	Superior Options:
	 	 	 	                     Shares Subject to the Option

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

 

 

OPTIONEE

                                                            

[NAME]

[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;
EXERCISABILITY1

     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 five groups: the 2006
Options, the 2007 Options, the 2008 Options, the 2009 Options and the 2010 Options. The number of
Performance Options in each group shall be determined as follows:

               (i) Each of the 2006 Options and the 2007 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 2008 Options, the 2009 Options and 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) 33 1/3 % 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 and the 2007 Options shall be fully vested as of the closing of the IPO.

               (ii) 100% of the 2008 Options shall vest and become exercisable on December 31, 2008 if, on
such date (or within 120 days thereafter), the Administrator determines that EBITDA for 2008 equals
or exceeds the high end of the EBITDA Range for 2008. If the Administrator determines that the
EBITDA for 2008 is below the low end of the EBITDA Range for 2008, none of the 2008 Options shall
vest and if the Administrator determines that the 2008 EBITDA is within the 2008 EBITDA Range, then
the Administrator will use linear interpolation to determine the percentage of the 2008 Options
that shall vest and become exercisable, which percentage shall be between 50% and 100% of the 2008
Options. Any 2008 Options that do not vest shall be added to the 2009 Options, except as otherwise
provided by the Board.

               (iii) The 2009 Options shall vest and become exercisable as provided in clause (ii), but with
“2009” substituted for “2008” and “2010” substituted for “2009”.

               (iv) The 2010 Options shall vest and become exercisable as provided in clause (ii), but with
“2010” substituted for “2008”, except that any 2010 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;

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               (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 exercised (i) prior to an
IPO, (ii) prior to a Change in Control, and (iii) within the period

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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 investment by the
Principal Stockholders in debt and equity securities or instruments of the

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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 and the Securities Exchange Act of 1934 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.]

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     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 of 1933, as
amended.

     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

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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 Securities Exchange Act of 1934) other
than to any Principal Stockholder(s) or an Affiliate of any Principal Stockholder(s).

     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
	2008
	 	To be determined by the Board
	 
	 	 	 	 
	2009
	 	To be determined by the Board
	 
	 	 	 	 
	2010
	 	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 the Company, subject to the terms and
conditions set forth in this Stock Option Grant Notice, the Stock Option Agreement attached hereto
as Appendix A, Appendix B (collectively, the “Agreement”) and the Plan, as follows:

	 	 	 
	Name of Optionee:
	 	 
	 
	 	 
	 
	 	 
	Total Number of Shares subject to the Option:
	 	 
	 
	 	 
	 
	 	 
	Exercise Price per Share:
	$	 
	 
	 	 
	 
	 	 
	Total Exercise Price:
	$	 
	 
	 	 
	 
	 	 
	Grant Date:
	 	 
	 
	 	 
	 
	 	 
	Type of Option:
	 	Non-Qualified Stock Option
	 
	 	 
	Final Expiration Date:
	 	[10 years from Grant Date]

	 	 	 	 	 
	Vesting Schedule:	 	This Option will vest and become exercisable in accordance with
the vesting schedule set forth in Article II of the Stock Option
Agreement depending on the classification of the Option as
follows:
	 
	 	 	 	 
	 

	 	Time Options:
	 	                     Shares Subject to the Option
	 
	 	 	 	 
	 

	 	Performance Options:
	 	                     Shares Subject to the Option
	 
	 	 	 	 
	 

	 	Superior Options:
	 	                     Shares Subject to the Option

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

 

 

	 	 	 
	OPTIONEE
	 	 
	 
	 	 
	 

[NAME]

	 	 

[Stock Option Grant Notice]

 - 2 - 

 

	 	 	 	 	 
	SS&C TECHNOLOGIES HOLDINGS, INC.	 	 
	 
	 	 	 	 
	By
	 	 	 	 
	 

	 	 

Title:
	 	 

[Stock Option Grant Notice]

 - 3 - 

 

APPENDIX A

AMENDED AND RESTATED STOCK OPTION AGREEMENT

ARTICLE V

GRANT OF OPTION

     Section 5.1 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 5.2 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 5.3 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 VI

VESTING SCHEDULE; EXERCISABILITY

     Section 6.1 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 6.2 Commencement of Vesting and Exercisability of Performance Options

- 1 -

 

          (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 and the 2008 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 2009 Options, 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) 33 1/3 % 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 shall be fully vested as of the closing of the IPO.

               (ii) 100% of the 2008 Options shall vest and become exercisable on December 31, 2008 if, on
such date (or within 120 days thereafter), the Administrator determines that EBITDA for 2008 equals
or exceeds the high end of the EBITDA Range for 2008. If the Administrator determines that the
EBITDA for 2008 is below the low end of the EBITDA Range for 2008, none of the 2008 Options shall
vest and if the Administrator determines that the 2008 EBITDA is within the 2008 EBITDA Range, then
the Administrator will use linear interpolation to determine the percentage of the 2008 Options
that shall vest and become exercisable, which percentage shall be between 50% and 100% of the 2008
Options. Any 2008 Options that do not vest shall be added to the 2009 Options, except as otherwise
provided by the Board.

               (iii) The 2009 Options shall vest and become exercisable as provided in clause (ii), but with
“2009” substituted for “2008” and “2010” substituted for “2009”.

               (iv) The 2010 Options shall vest and become exercisable as provided in clause (ii), but with
“2010” substituted for “2008”, except that any 2010 options that do not vest shall remain unvested
but may become vested and exercisable pursuant to Section 2.2(c) or (d).

               (v) The 2011 Options shall vest and become exercisable as provided in clause (ii), but with
“2011” substituted for “2008”, 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

- 2 -

 

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 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 6.3 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 6.4 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 6.5 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 6.6 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;

- 3 -

 

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

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

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

          (b) 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 6.7 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 6.8 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 6.9 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

 - 4 - 

 

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
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 VII

OTHER PROVISIONS

     Section 7.1 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 7.2 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 7.3 Construction. This Agreement shall be administered, interpreted
and enforced under the laws of the state of Delaware.

     Section 7.4 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

 - 5 - 

 

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

     Section 7.5 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 and the Securities Exchange Act of 1934 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 7.6 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 VIII

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 8.1 [Intentionally omitted.]

 - 6 - 

 

     Section 8.2 Agreement. “Agreement” shall have the meaning set forth in the
Stock Option Grant Notice.

     Section 8.3 [Intentionally omitted.]

     Section 8.4 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 8.5 Company. “Company” shall mean SS&C Technologies Holdings, Inc.

     Section 8.6 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 8.7 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 8.8 Exercise Price. “Exercise Price” shall mean the per share price
set forth in the Stock Option Grant Notice.

 - 7 - 

 

     Section 8.9 Final Expiration Date. “Final Expiration Date” shall mean the
date set forth in the Stock Option Grant Notice.

     Section 8.10 Fiscal Year. “Fiscal Year” shall mean the fiscal year of the
Company, as in effect from time to time.

     Section 8.11 Grant Date. “Grant Date” shall be the date set forth in the Stock
Option Grant Notice.

     Section 8.12 “IPO” means the Company’s initial public offering of Common Stock
pursuant to a registration statement filed in accordance with the Securities Act of 1933, as
amended.

     Section 8.13 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 8.14 Investment. “Investment” shall mean any investment of funds by
the Principal Stockholders in equity securities of the Company and its Subsidiaries.

     Section 8.15 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 8.16 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

 - 8 - 

 

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 Securities Exchange Act of 1934) other than to any
Principal Stockholder(s) or an Affiliate of any Principal Stockholder(s).

     Section 8.17 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 8.18 Option(s). “Option(s)” shall mean the option(s) to purchase
Common Stock granted under this Agreement.

     Section 8.19 Performance Options. “Performance Option(s)” shall mean the
portion of the Options designated as Performance Options in the Stock Option Grant Notice.

     Section 8.20 Plan. “Plan” shall mean the 2006 Equity Incentive Plan of SS&C
Technologies Holdings, Inc.

     Section 8.21 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 8.22 Share. “Share” shall mean a share of Common Stock.

     Section 8.23 Stock Option Grant Notice. “Stock Option Grant Notice” shall
mean the first page of this Agreement.

     Section 8.24 Superior Options. “Superior Options” shall mean the portion of
the Options designated as Superior Options in the Stock Option Grant Notice.

 - 9 - 

 

     Section 8.25 Time Options. “Time Options” shall mean the portion of the
Options designated as Time Options in the Stock Option Grant Notice.

     Section 8.26 Vesting Commencement Date. “Vesting Commencement Date” shall
have the meaning set forth in the Stock Option Grant Notice.

***

 - 10 - 

 

APPENDIX
B

EBITDA RANGES

($ Millions)

As of the end of the fiscal year

	 	 	 	 	 
	Fiscal Year	 	EBITDA Range
	2008
	 	To be determined by the Board
	 
	 	 	 	 
	2009
	 	To be determined by the Board
	 
	 	 	 	 
	2010
	 	To be determined by the Board
	 
	 	 	 	 
	2011
	 	To be determined by the Board

 - 11 -exv10w26

 

Exhibit 10.26

SS&C TECHNOLOGIES HOLDINGS, INC.

2008 STOCK INCENTIVE PLAN

1. Purpose

     The purpose of this 2008 Stock Incentive Plan (the “Plan”) of SS&C Technologies Holdings,
Inc., a Delaware corporation (the “Company”), is to advance the interests of the Company’s
stockholders by enhancing the Company’s ability to attract, retain and motivate persons who are
expected to make important contributions to the Company and by providing such persons with equity
ownership opportunities and performance-based incentives that are intended to better align the
interests of such persons with those of the Company’s stockholders. Except where the context
otherwise requires, the term “Company” shall include any of the Company’s present or future parent
or subsidiary corporations as defined in Sections 424(e) or (f) of the Internal Revenue Code of
1986, as amended, and any regulations promulgated thereunder (the “Code”), and any other business
venture (including, without limitation, joint venture or limited liability company) in which the
Company has a controlling interest, as determined by the Board of Directors of the Company (the
“Board”).

2. Eligibility

     All of the Company’s employees, officers, directors, consultants and advisors are eligible to
be granted options, stock appreciation rights (“SARs”), restricted stock, restricted stock units
(“RSUs”) and other stock-based awards (each, an “Award”) under the Plan. Each person who receives
an Award under the Plan is deemed a “Participant.”

3. Administration and Delegation

     (a) Administration by Board of Directors. The Plan will be administered by the Board.
The Board shall have authority to grant Awards and to adopt, amend and repeal such administrative
rules, guidelines and practices relating to the Plan as it shall deem advisable. The Board may
construe and interpret the terms of the Plan and any Award agreements entered into under the Plan.
The Board may correct any defect, supply any omission or reconcile any inconsistency in the Plan or
any Award in the manner and to the extent it shall deem expedient to carry the Plan into effect and
it shall be the sole and final judge of such expediency. All decisions by the Board shall be made
in the Board’s sole discretion and shall be final and binding on all persons having or claiming any
interest in the Plan or in any Award. No director or person
acting pursuant to the authority delegated by the Board shall be liable for any action or
determination relating to or under the Plan made in good faith.

     (b) Appointment of Committees. To the extent permitted by applicable law, the Board
may delegate any or all of its powers under the Plan to one or more committees or subcommittees of
the Board (a “Committee”). All references in the Plan to the “Board” shall

 

 

mean the Board or a
Committee of the Board or the officers referred to in Section 3(c) to the extent that the Board’s
powers or authority under the Plan have been delegated to such Committee or officers.

     (c) Delegation to Officers. To the extent permitted by applicable law, the Board may
delegate to one or more officers of the Company the power to grant Awards (subject to any
limitations under the Plan) to employees or officers of the Company or any of its present or future
subsidiary corporations and to exercise such other powers under the Plan as the Board may
determine, provided that the Board shall fix the terms of the Awards to be granted by such officers
(including the exercise price of such Awards, which may include a formula by which the exercise
price will be determined) and the maximum number of shares subject to Awards that the officers may
grant; provided further, however, that no officer shall be authorized to grant Awards to any
“executive officer” of the Company (as defined by Rule 3b-7 under the Securities Exchange Act of
1934, as amended (the “Exchange Act”)) or to any “officer” of the Company (as defined by Rule 16a-1
under the Exchange Act).

4. Stock Available for Awards

     (a) Number of Shares. Subject to adjustment under Section 9, Awards may be made under
the Plan for up to the number of shares of common stock, par value $0.01 per share, of the Company
(the “Common Stock”) that is equal to the sum of:

          (1) 1,250,000 shares of Common Stock (after giving effect to the Company’s seven and one
half-for-one stock split in the form of a stock dividend, effective
as of April 23, 2008 (the
“Stock Split”)); plus

          (2) an annual increase to be added on the first day of each of the Company’s fiscal years
during the term of the Plan beginning in fiscal year 2009 equal to the least of (i) 1,250,000
shares of Common Stock, (ii) 2 % of the outstanding shares on such date or (iii) an amount
determined by the Board.

     If any Award expires or is terminated, surrendered or canceled without having been fully
exercised, is forfeited in whole or in part (including as the result of shares of Common Stock
subject to such Award being repurchased by the Company at the original issuance price pursuant to a
contractual repurchase right), is settled in cash or otherwise results in any Common Stock not
being issued, the unused Common Stock covered by such Award shall again be available for the grant
of Awards under the Plan. Further, shares of Common Stock tendered to the Company by a Participant
to exercise an Award shall be added to the number of shares of Common Stock available for the grant
of Awards under the Plan. However, in the case of Incentive Stock Options, the foregoing
provisions shall be subject to any limitations under the
 Code. Shares issued under the Plan may consist in whole or in part of authorized but unissued
shares or treasury shares.

     (b) Per-Participant Limit. Subject to adjustment under Section 9, the maximum number
of shares of Common Stock with respect to which Awards may be granted to any Participant under the
Plan shall be 500,000 per calendar year (after giving effect to the Stock

-2-

 

Split). For purposes of
the foregoing limit, the combination of an Option in tandem with a SAR (as each is hereafter
defined) shall be treated as a single Award. The per-Participant limit described in this Section
4(b) shall be construed and applied consistently with Section 162(m) of the Code or any successor
provision thereto, and the regulations thereunder (“Section 162(m)”).

     (c) Substitute Awards. In connection with a merger or consolidation of an entity with
the Company or the acquisition by the Company of property or stock of an entity, the Board may
grant Awards in substitution for any options or other stock or stock-based awards granted by such
entity or an affiliate thereof. Substitute Awards may be granted on such terms as the Board deems
appropriate in the circumstances, notwithstanding any limitations on Awards contained in the Plan.
Substitute Awards shall not count against the overall share limit set forth in Section 4(a), except
as may be required by reason of Section 422 and related provisions of the Code.

5. Stock Options

     (a) General. The Board may grant options to purchase Common Stock (each, an “Option”)
and determine the number of shares of Common Stock to be covered by each Option, the exercise price
of each Option and the conditions and limitations applicable to the exercise of each Option,
including conditions relating to applicable federal or state securities laws, as it considers
necessary or advisable. An Option that is not intended to be an Incentive Stock Option (as
hereinafter defined) shall be designated a “Nonstatutory Stock Option.” 

     (b) Incentive Stock Options. An Option that the Board intends to be an “incentive
stock option” as defined in Section 422 of the Code (an “Incentive Stock Option”) shall only be
granted to employees of SS&C Technologies Holdings, Inc., any of SS&C Technologies Holdings, Inc.’s
present or future parent or subsidiary corporations as defined in Sections 424(e) or (f) of the
Code, and any other entities the employees of which are eligible to receive Incentive Stock Options
under the Code, and shall be subject to and shall be construed consistently with the requirements
of Section 422 of the Code. The Company shall have no liability to a Participant, or any other
party, if an Option (or any part thereof) that is intended to be an Incentive Stock Option is not
an Incentive Stock Option or for any action taken by the Board, including without limitation the
conversion of an Incentive Stock Option to a Nonstatutory Stock Option.

     (c) Exercise Price. The Board shall establish the exercise price of each Option and
specify the exercise price in the applicable option agreement. The exercise price shall be not
less than 100% of the Fair Market Value (as defined below) on the date the Option is granted;
provided that if the Board approves the grant of an Option with an exercise price to be determined
on a future date, the exercise price shall be not less than 100% of the Fair Market Value on such
future date.

     (d) Duration of Options. Each Option shall be exercisable at such times and subject
to such terms and conditions as the Board may specify in the applicable option agreement.

     (e) Exercise of Option. Options may be exercised by delivery to the Company of a
written notice of exercise signed by the proper person or by any other form of notice (including

-3-

 

electronic notice) approved by the Board together with payment in full as specified in Section 5(f)
for the number of shares for which the Option is exercised. Shares of Common Stock subject to the
Option will be delivered by the Company as soon as practicable following exercise.

     (f) Payment Upon Exercise. Common Stock purchased upon the exercise of an Option
granted under the Plan shall be paid for as follows:

          (1) in cash or by check, payable to the order of the Company;

          (2) except as may otherwise be provided in the applicable option agreement, by (i) delivery of
an irrevocable and unconditional undertaking by a creditworthy broker to deliver promptly to the
Company sufficient funds to pay the exercise price and any required tax withholding or (ii)
delivery by the Participant to the Company of a copy of irrevocable and unconditional instructions
to a creditworthy broker to deliver promptly to the Company cash or a check sufficient to pay the
exercise price and any required tax withholding;

          (3) to the extent provided for in the applicable option agreement or approved by the Board, in
its sole discretion, by delivery (either by actual delivery or attestation) of shares of Common
Stock owned by the Participant valued at their Fair Market Value, provided (i) such method of
payment is then permitted under applicable law, (ii) such Common Stock, if acquired directly from
the Company, was owned by the Participant for such minimum period of time, if any, as may be
established by the Board in its discretion and (iii) such Common Stock is not subject to any
repurchase, forfeiture, unfulfilled vesting or other similar requirements;

          (4) to the extent permitted by applicable law and provided for in the applicable option
agreement or approved by the Board, in its sole discretion, by (i) delivery of a promissory note of
the Participant to the Company on terms determined by the Board, or (ii) payment of such other
lawful consideration as the Board may determine; or

          (5) by any combination of the above permitted forms of payment.

     (g) “Fair Market Value” of a share of Common Stock for purposes of the Plan will be determined
as follows:

          (1) if the Common Stock trades on a national securities exchange, the closing sale
price (for the primary trading session) on the date of           grant; or

          (2) if the Common Stock does not trade on any such exchange, the average of the
closing bid and asked prices as reported by an           authorized OTCBB market data vendor
as listed on the OTCBB website (otcbb.com) on the date of grant; or

          (3) if the Common Stock is not publicly traded, the Board will determine the Fair
Market Value for purposes of the Plan using any           measure of value it determines to be
appropriate (including, as it considers appropriate, relying on

-4-

 

appraisals) in a
manner consistent with the valuation principles under Code Section 409A, except as
the Board may expressly determine otherwise.

     For any date that is not a trading day, the Fair Market Value of a share of Common Stock for
such date will be determined by using the closing sale price or average of the bid and asked
prices, as appropriate, for the immediately preceding trading day and with the timing in the
formulas above adjusted accordingly. The Board can substitute a particular time of day or other
measure of “closing sale price” or “bid and asked prices” if appropriate because of exchange or
market procedures or can, in its sole discretion, use weighted averages either on a daily basis or
such longer period as complies with Code Section 409A.

     The Board has sole discretion to determine the Fair Market Value for purposes of the Plan, and
all Awards are conditioned on the Participants’ agreement that the Board’s determination is
conclusive and binding even though others might make a different determination.

6. Stock Appreciation Rights.

     (a) General. The Board may grant Awards consisting of SARs entitling the holder, upon
exercise, to receive an amount of Common Stock or cash or a combination thereof (such form to be
determined by the Board) determined in whole or in part by reference to appreciation, from and
after the date of grant, in the fair market value of a share of Common Stock over the exercise
price established pursuant to Section 6(c). The date as of which such appreciation is determined
shall be the exercise date.

     (b) Grants. SARs may be granted in tandem with, or independently of, Options granted
under the Plan.

          (1) Tandem Awards. When SARs are expressly granted in tandem with Options, (i) the
SAR will be exercisable only at such time or times, and to the extent, that the related Option is
exercisable (except to the extent designated by the Board in connection with a Corporate Event) and
will be exercisable in accordance with the procedure required for exercise of the related Option;
(ii) the SAR will terminate and no longer be exercisable upon the termination or exercise of the
related Option, except to the extent designated by the Board in connection with a Corporate Event
and except that a SAR granted with respect to less than the full number of shares covered by an
Option will not be reduced until the number of shares as to which the related Option has been
exercised or has terminated exceeds the number of shares not covered by the SAR; (iii) the Option
will terminate and no longer be exercisable upon the exercise of the related SAR; and (iv) the SAR
will be transferable only with the related Option.

          (2) Independent SARs. A SAR not expressly granted in tandem with an Option will
become exercisable at such time or times, and on such conditions, as the Board may specify in the
SAR Award.

     (c) Exercise Price. The Board shall establish the exercise price of each SAR and
specify it in the applicable SAR agreement. The exercise price shall not be less than 100% of the

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Fair Market Value on the date the SAR is granted; provided that if the Board approves the grant of
a SAR with an exercise price to be determined on a future date, the exercise price shall be not
less than 100% of the Fair Market Value on such future date. 

     (d) Duration of SARs. Each SAR shall be exercisable at such times and subject to such
terms and conditions as the Board may specify in the applicable SAR agreement.

     (e) Exercise of SARs. SARs may be exercised by delivery to the Company of a written
notice of exercise signed by the proper person or by any other form of notice (including electronic
notice) approved by the Board, together with any other documents required by the Board.

7. Restricted Stock; Restricted Stock Units.

     (a) General. The Board may grant Awards entitling recipients to acquire shares of
Common Stock (“Restricted Stock”), subject to the right of the Company to repurchase all or part of
such shares at their issue price or other stated or formula price (or to require forfeiture of such
shares if issued at no cost) from the recipient in the event that conditions specified by the Board
in the applicable Award are not satisfied prior to the end of the applicable restriction period or
periods established by the Board for such Award. Instead of granting Awards for Restricted Stock,
the Board may grant Awards entitling the recipient to receive shares of Common Stock or cash to be
delivered at the time such Award vests (“Restricted Stock Units”) (Restricted Stock and Restricted
Stock Units are each referred to herein as a “Restricted Stock Award”).

     (b) Terms and Conditions for All Restricted Stock Awards. The Board shall determine
the terms and conditions of a Restricted Stock Award, including the conditions for vesting and
repurchase (or forfeiture) and the issue price, if any.

     (c) Additional Provisions Relating to Restricted Stock.

          (1) Dividends. Participants holding shares of Restricted Stock will be entitled to
all ordinary cash dividends paid with respect to such shares, unless otherwise provided by the
Board. Unless otherwise provided by the Board, if any dividends or distributions are paid in
shares, or consist of a dividend or distribution to holders of Common Stock other than an ordinary
cash dividend, the shares, cash or other property will be subject to the same restrictions on
transferability and forfeitability as the shares of Restricted Stock with respect to which they
were paid. Each dividend payment will be made no later than the end of the calendar year in which
the dividends are paid to stockholders of that class of stock or, if later, the 15th day of the
third month following the date the dividends are paid to stockholders of that class of stock.

          (2) Stock Certificates. The Company may require that any stock certificates issued in
respect of shares of Restricted Stock shall be deposited in escrow by the Participant, together
with a stock power endorsed in blank, with the Company (or its designee). At the
expiration of the applicable restriction periods, the Company (or such designee) shall deliver
the certificates no longer subject to such restrictions to the Participant or if the Participant
has died,

-6-

 

to the beneficiary designated, in a manner determined by the Board, by a Participant to
receive amounts due or exercise rights of the Participant in the event of the Participant’s death
(the “Designated Beneficiary”). In the absence of an effective designation by a Participant,
“Designated Beneficiary” shall mean the Participant’s estate.

     (d) Additional Provisions Relating to Restricted Stock Units.

          (1) Settlement. Upon the vesting of and/or lapsing of any other restrictions (i.e.,
settlement) with respect to each Restricted Stock Unit, the Participant shall be entitled to
receive from the Company one share of Common Stock or an amount of cash equal to the Fair Market
Value of one share of Common Stock, as provided in the applicable Award agreement. The Board may,
in its discretion, provide that settlement of Restricted Stock Units shall be deferred, on a
mandatory basis or at the election of the Participant.

          (2) Voting Rights. A Participant shall have no voting rights with respect to any
Restricted Stock Units.

          (3) Dividend Equivalents. To the extent provided by the Board, in its sole
discretion, a grant of Restricted Stock Units may provide Participants with the right to receive an
amount equal to any dividends or other distributions declared and paid on an equal number of
outstanding shares of Common Stock (“Dividend Equivalents”). Dividend Equivalents may be paid
currently or credited to an account for the Participants, may be settled in cash and/or shares of
Common Stock and may be subject to the same restrictions on transfer and forfeitability as the
Restricted Stock Units with respect to which paid, as determined by the Board in its sole
discretion, subject in each case to such terms and conditions as the Board shall establish, in each
case to be set forth in the applicable Award agreement.

8. Other Stock-Based Awards

     Other Awards of shares of Common Stock, and other Awards that are valued in whole or in part
by reference to, or are otherwise based on, shares of Common Stock or other property, may be
granted hereunder to Participants (“Other Stock-Based Awards”), including without limitation Awards
entitling recipients to receive shares of Common Stock to be delivered in the future. Such Other
Stock-Based Awards shall also be available as a form of payment in the settlement of other Awards
granted under the Plan or as payment in lieu of compensation to which a Participant is otherwise
entitled. Other Stock-Based Awards may be paid in shares of Common Stock or cash, as the Board
shall determine. Subject to the provisions of the Plan, the Board shall determine the terms and
conditions of each Other Stock-Based Award, including any purchase price applicable thereto.

9. Adjustments for Changes in Common Stock and Certain Other Events.

     (a) Changes in Capitalization. In the event of any stock split, reverse stock split,
stock dividend, recapitalization, combination of shares, reclassification of shares, spin-off or
other similar change in capitalization or event, or any dividend or distribution to holders of
Common Stock other than an ordinary cash dividend, (i) the number and class of securities

-7-

 

available
under the Plan, (ii) the per-Participant limit set forth in Section 4(b), (iii) the number and
class of securities and exercise price per share of each outstanding Option, (iv) the share and
per-share provisions and the exercise price of each SAR, (v) the number of shares subject to and
the repurchase price per share subject to each outstanding Restricted Stock Award, and (vi) the
share- and per-share-related provisions and the purchase price, if any, of each outstanding Other
Stock-Based Award, shall be equitably adjusted by the Company (or substituted Awards may be made,
if applicable) in the manner determined by the Board. Without limiting the generality of the
foregoing, in the event the Company effects a split of the Common Stock by means of a stock
dividend and the exercise price of and the number of shares subject to an outstanding Option are
adjusted as of the date of the distribution of the dividend (rather than as of the record date for
such dividend), then an optionee who exercises an Option between the record date and the
distribution date for such stock dividend shall be entitled to receive, on the distribution date,
the stock dividend with respect to the shares of Common Stock acquired upon such Option exercise,
notwithstanding the fact that such shares were not outstanding as of the close of business on the
record date for such stock dividend.

     (b) Corporate Events.

          (1) Definition. A “Corporate Event” shall mean any reorganization, merger,
consolidation, liquidation, dissolution or sale, transfer, exchange or other disposition of all or
substantially all of the capital stock or assets of the Company, 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, the acquisition or disposition of any material assets or business or
other similar corporate transaction or event (other than the changes in capitalization referred to
in Section 9(a)).

          (2) Consequences of a Corporate Event on Awards Other than Restricted Stock Awards.
In connection with a Corporate Event, the Board may take any one or more of the following actions
as to all or any (or any portion of) outstanding Awards other than Restricted Stock Awards on such
terms as the Board determines: (i) provide that Awards shall be assumed, or substantially
equivalent Awards shall be substituted, by the acquiring or succeeding corporation (or an affiliate
thereof), (ii) upon written notice to a Participant, provide that the Participant’s unexercised
Awards will terminate immediately prior to the consummation of such Corporate Event unless
exercised by the Participant within a specified period following the date of such notice,
(iii) provide that outstanding Awards shall become exercisable, realizable or deliverable, or
restrictions applicable to an Award shall lapse, in whole or in part prior to or upon such
Corporate Event, (iv) in the event of a Corporate Event under the terms of which holders of Common
Stock will receive upon consummation thereof a cash payment for each share surrendered in the
Corporate Event (the “Acquisition Price”), make or provide for a cash payment to a Participant
equal to the excess, if any, of (A) the Acquisition Price times the number of shares of Common
Stock subject to the Participant’s Awards (to the extent the exercise price does not exceed the
Acquisition Price) over (B) the aggregate exercise price of all such outstanding Awards and any
applicable tax withholdings, in exchange for the termination of
such Awards, (v) provide that, in connection with a liquidation or dissolution of the Company,
Awards shall convert into the right to receive liquidation proceeds (if applicable, net of the

-8-

 

exercise price thereof and any applicable tax withholdings) and (vi) any combination of the
foregoing. In taking any of the actions permitted under this Section 9(b), the Board shall not be
obligated by the Plan to treat all Awards, all Awards held by a Participant, or all Awards of the
same type, identically.

          For purposes of clause (i) above, an Option shall be considered assumed if, following
consummation of the Corporate Event, the Option confers the right to purchase, for each share of
Common Stock subject to the Option immediately prior to the consummation of the Corporate Event,
the consideration (whether cash, securities or other property) received as a result of the
Corporate Event by holders of Common Stock for each share of Common Stock held immediately prior to
the consummation of the Corporate Event (and if holders were offered a choice of consideration, the
type of consideration chosen by the holders of a majority of the outstanding shares of Common
Stock); provided, however, that if the consideration received as a result of the Corporate Event is
not solely common stock of the acquiring or succeeding corporation (or an affiliate thereof), the
Company may, with the consent of the acquiring or succeeding corporation, provide for the
consideration to be received upon the exercise of Options to consist solely of common stock of the
acquiring or succeeding corporation (or an affiliate thereof) equivalent in value (as determined by
the Board) to the per share consideration received by holders of outstanding shares of Common Stock
as a result of the Corporate Event.

          (3) Consequences of a Corporate Event on Restricted Stock Awards. Upon the occurrence
of a Corporate Event other than a liquidation or dissolution of the Company, the repurchase and
other rights of the Company under each outstanding Restricted Stock Award shall inure to the
benefit of the Company’s successor and shall, unless the Board determines otherwise, apply to the
cash, securities or other property which the Common Stock was converted into or exchanged for
pursuant to such Corporate Event in the same manner and to the same extent as they applied to the
Common Stock subject to such Restricted Stock Award. Upon the occurrence of a Corporate Event
involving the liquidation or dissolution of the Company, except to the extent specifically provided
to the contrary in the instrument evidencing any Restricted Stock Award or any other agreement
between a Participant and the Company, all restrictions and conditions on all Restricted Stock
Awards then outstanding shall automatically be deemed terminated or satisfied.

10. General Provisions Applicable to Awards

     (a) Transferability of Awards. Except as the Board may otherwise determine or provide
in an Award, Awards shall not be sold, assigned, transferred, pledged or otherwise encumbered by
the person to whom they are granted, either voluntarily or by operation of law, except by will or
the laws of descent and distribution or, other than in the case of an Incentive Stock Option,
pursuant to a qualified domestic relations order, and, during the life of the Participant, shall be
exercisable only by the Participant. References to a Participant, to the extent relevant in the
context, shall include references to authorized transferees.

     (b) Documentation. Each Award shall be evidenced in such form (written, electronic or
otherwise) as the Board shall determine. Such form may include an instrument signed or accepted by
the Company and the Participant or a confirmatory memorandum to the Participant

-9-

 

from the Company.
Each Award may contain terms and conditions in addition to those set forth in the Plan.

     (c) Board Discretion. Except as otherwise provided by the Plan, each Award may be
made alone or in addition or in relation to any other Award. The terms of each Award need not be
identical, and the Board need not treat Participants uniformly.

     (d) Termination of Status. The Board shall determine the effect on an Award of the
disability, death, termination or other cessation of employment, authorized leave of absence or
other change in the employment or other status of a Participant and the extent to which, and the
period during which, the Participant, or the Participant’s legal representative, conservator,
guardian or Designated Beneficiary, may exercise rights under the Award. 

     (e) Withholding. The Participant must satisfy all applicable federal, state and local
or other income and employment tax withholding obligations before the Company will deliver stock
certificates or otherwise recognize ownership of Common Stock under an Award. The Company may
decide to satisfy the withholding obligations through additional withholding on salary or wages.
If the Company elects not to or cannot withhold from other compensation, the Participant must pay
the Company the full amount, if any, required for withholding or have a broker tender to the
Company cash equal to the withholding obligations. Payment of withholding obligations is due
before the Company will issue any shares on exercise or release from forfeiture of an Award or, if
the Company so requires, at the same time as is payment of the exercise price unless the Company
determines otherwise. If provided for in an Award or approved by the Board in its sole discretion,
a Participant may satisfy such tax obligations in whole or in part by delivery of shares of Common
Stock, including shares retained from the Award creating the tax obligation, valued at their Fair
Market Value; provided, however, except as otherwise provided by the Board, that the total tax
withholding where stock is being used to satisfy such tax obligations cannot exceed the Company’s
minimum statutory withholding obligations (based on minimum statutory withholding rates for federal
and state tax purposes, including payroll taxes, that are applicable to such supplemental taxable
income). Shares surrendered to satisfy tax withholding requirements cannot be subject to any
repurchase, forfeiture, unfulfilled vesting or other similar requirements.

     (f) Amendment of Award.

          (1) The Board may amend, modify or terminate any outstanding Award, including but not limited
to, substituting therefor another Award of the same or a different type, changing the date of
exercise or realization, and converting an Incentive Stock Option to a Nonstatutory Stock Option.
The Participant’s consent to such action shall be required unless (i) the Board determines that the
action, taking into account any related action, would not materially and adversely affect the
Participant’s rights under the Plan or (ii) the change is permitted under Section 9 hereof.

          (2) The Board may, without stockholder approval, amend any outstanding Award granted under the
Plan to provide an exercise price per share that is lower than the then-current exercise price per
share of such outstanding Award. The Board may also, without

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stockholder approval, cancel any
outstanding award (whether or not granted under the Plan) and grant in substitution therefor new
Awards under the Plan covering the same or a different number of shares of Common Stock and having
an exercise price per share lower than the then-current exercise price per share of the cancelled
award.

     (g) Conditions on Delivery of Stock. The Company will not be obligated to deliver any
shares of Common Stock pursuant to the Plan or to remove restrictions from shares previously
delivered under the Plan until (i) all conditions of the Award have been met or removed to the
satisfaction of the Company, (ii) in the opinion of the Company’s counsel, all other legal matters
in connection with the issuance and delivery of such shares have been satisfied, including any
applicable securities laws and any applicable stock exchange or stock market rules and regulations,
and (iii) the Participant has executed and delivered to the Company such representations or
agreements as the Company may consider appropriate to satisfy the requirements of any applicable
laws, rules or regulations.

     (h) Acceleration. The Board may at any time provide that any Award shall become
immediately exercisable in full or in part, free of some or all restrictions or conditions, or
otherwise realizable in full or in part, as the case may be.

11. Miscellaneous

     (a) No Right To Employment or Other Status. No person shall have any claim or right
to be granted an Award, and the grant of an Award shall not be construed as giving a Participant
the right to continued employment or any other relationship with the Company. The Company
expressly reserves the right at any time to dismiss or otherwise terminate its relationship with a
Participant free from any liability or claim under the Plan, except as expressly provided in the
applicable Award.

     (b) No Rights As Stockholder. Subject to the provisions of the applicable Award, no
Participant or Designated Beneficiary shall have any rights as a stockholder with respect to any
shares of Common Stock to be distributed with respect to an Award until becoming the record holder
of such shares.

     (c) Effective Date and Term of Plan. The Plan shall become effective on the date on
which it is adopted by the Board. No Awards shall be granted under the Plan after the expiration
of 10 years from the earlier of (i) the date on which the Plan was adopted by the Board or (ii) the
date the Plan was approved by the Company’s stockholders, but Awards previously granted may extend
beyond that date.

     (d) Amendment of Plan. The Board may amend, suspend or terminate the Plan or any
portion thereof at any time provided that (i) to the extent required by Section 162(m), no Award
granted to a Participant that is intended to comply with Section 162(m) after the date of such
amendment shall become exercisable, realizable or vested, as applicable to such Award,
unless and until such amendment shall have been approved by the Company’s stockholders if
required by Section 162(m) (including the vote required under Section 162(m)); and (ii) no
amendment that would require stockholder approval under the rules of the NASDAQ Stock

-11-

 

Market may be
made effective unless and until such amendment shall have been approved by the Company’s
stockholders. In addition, if at any time the approval of the Company’s stockholders is required
as to any other modification or amendment under Section 422 of the Code or any successor provision
with respect to Incentive Stock Options, the Board may not effect such modification or amendment
without such approval. Unless otherwise specified in the amendment, any amendment to the Plan
adopted in accordance with this Section 11(d) shall apply to, and be binding on the holders of, all
Awards outstanding under the Plan at the time the amendment is adopted. No Award shall be made
that is conditioned upon stockholder approval of any amendment to the Plan.

     (e) Provisions for Foreign Participants. The Board may modify Awards granted to
Participants who are foreign nationals or employed outside the United States or establish subplans
or procedures under the Plan to recognize differences in laws, rules, regulations or customs of
such foreign jurisdictions with respect to tax, securities, currency, employee benefit or other
matters.

     (f) Compliance with Code Section 409A. No Award shall provide for deferral of
compensation that does not comply with Section 409A of the Code, unless the Board, at the time of
grant, specifically provides that the Award is not intended to comply with Section 409A of the
Code. The Company shall have no liability to a Participant, or any other party, if an Award that
is intended to be exempt from, or compliant with, Section 409A is not so exempt or compliant or for
any action taken by the Board.

     (g) Governing Law. The provisions of the Plan and all Awards made hereunder shall be
governed by and interpreted in accordance with the laws of the State of Delaware, excluding
choice-of-law principles of the law of such state that would require the application of the laws of
a jurisdiction other than such state.

-12-

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