Document:

Exhibit 10.19

 

KANBAY INTERNATIONAL, INC.

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

	
  Participant:                                                    

  	
   

  	
  Number of Shares subject to this Option:                           

  
	
   

  	
   

  	
   

  
	
  Date of Grant: 
  [                          ],
  2004

  	
   

  	
  Exercise Price:  $                           

  

 

THIS NON-QUALIFIED STOCK OPTION AGREEMENT (“Agreement”),
effective as of the Date of Grant set forth above, is entered into by and
between Kanbay International, Inc., a Delaware corporation (the “Company”) and
the Participant set forth above.

 

RECITALS

 

WHEREAS, the Company has adopted the Kanbay
International, Inc. Stock Incentive Plan (as amended from time to time, the “Plan”),
which provides for the grant of non-statutory stock options (the “Options”) to
Service Providers (as defined in the Plan) of the Company, as selected by the
Company’s Compensation Committee (the “Committee”), to purchase Shares of the
Company;

 

WHEREAS, the Participant has been selected by the
Committee to receive an Option in accordance with the provisions of the Plan;
and

 

WHEREAS, the parties hereto desire to evidence in
writing the terms and conditions of the Option.

 

NOW, THEREFORE, in consideration of the foregoing and
of the mutual covenants and agreements herein contained and other good and
valuable consideration, the receipt, sufficiency and adequacy of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Definitions

 

All capitalized
terms used in this Agreement shall have the same meanings as are ascribed to
them in the Plan, unless expressly provided otherwise in this Agreement.

 

2.             Grant of Option; Exercise Price

 

The
Company hereby awards to the Participant this Option to purchase all or any
part of the number of shares of Common Stock set forth above (the “Option
Shares”) at the Exercise Price set forth above on the terms and conditions set
forth herein and subject in all respects to the terms and provisions of the
Plan, which is incorporated herein by reference. This Option is not intended to
be treated as an Incentive Stock Option.

 

3.             Vesting of Option

 

This Option is exercisable only upon and after vesting.
The Options granted herein shall vest ratably on each day that the Participant’s
Service continues over the first four years following the Grant Date. Except as
provided in Section 4 below, or as the Committee may

 

 

determine in its sole discretion on a case by case basis, no Option
shall continue to vest after the date the Participant has terminated Service
for any reason and any unvested portion of this Option theretofore held by the
Participant shall be forfeited as of that date.

 

4.             Special Vesting Provisions.

 

(a)           Notwithstanding anything to the contrary in Section 3
above, if a Participant dies or suffers a Disability during the vesting period
described in Section 3 above while in Service, the unvested portion of this
Option held by such Participant or any Transferee thereof shall automatically
vest on the date of death or Disability.

 

(b)           Notwithstanding anything to the contrary in Section 3
above, the vesting period described in Section 3 above will be suspended during
the pendency of any bona fide leave of absence approved by the Company and the
vesting period will be increased by the length of time of such leave of absence.
Notwithstanding the foregoing or anything in the Plan to the contrary, if this
Option would, by the operation of this paragraph, vest after the tenth
anniversary of its original Date of Grant, then this Option shall terminate on
the tenth anniversary of its original Date of Grant and in no event shall a
Participant or Transferee be permitted to exercise this Option after the tenth
anniversary of the original Date of Grant. This paragraph shall have no effect
on this Option, or portions hereof, which, by its terms, is vested prior to the
first day of an Employee’s leave of absence.

 

(c)           If a Change in Control occurs, the unvested portion of
this Option will become fully vested on the closing date of the Change in
Control, if the Participant has remained in Service continuously until that
date.

 

5.             Exercise of Option

 

(a)           Except as otherwise provided herein, a portion of the
Option granted hereunder shall expire on the date that is five (5) years from
the date of the first, second, third and fourth anniversary of the Date of
Grant, as follows: 

 

	
   

  	
   

  	
  Anniversary of Grant Date

  	
   

  	
  Option Expires if not Exercised

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [100] Shares

  	
   

  	
  May     ,
  2005

  	
   

  	
  May     ,
  2010

  
	
  [100] Shares

  	
   

  	
  May     ,
  2006

  	
   

  	
  May     ,
  2011

  
	
  [100] Shares

  	
   

  	
  May     ,
  2007

  	
   

  	
  May     ,
  2012

  
	
  [100] Shares

  	
   

  	
  May     ,
  2008

  	
   

  	
  May     ,
  2013

  

 

The Participant will be
deemed to exercise portions of this Option in the order in which each portion
of this Option vests. If the Participant does not exercise any portion of the
Option within five (5) years from the date of the first, second, third and
fourth anniversary of the Date of Grant, as applicable, that portion of the
Option will expire and be forfeited.

 

(b)           If Participant’s Service terminates due to Disability,
voluntary termination by Participant, or involuntary termination by the Company
without Cause, the vested portion of this Option (including any portion subject
to accelerated vesting pursuant to Section 4) held by such Participant or any
Transferee thereof shall be exercisable only to the extent that it was

 

2

 

exercisable on the date of such termination of Service and shall expire
three (3) months after such termination of Service or on its stated expiration
date, whichever occurs first.

 

(c)           If Participant’s Service terminates due to death, the
vested portion of this Option (including any portion subject to accelerated
vesting pursuant to Section 4 and any held by a Transferee thereof) shall
expire on the first anniversary of the date of such Participant’s death,
regardless of the stated expiration date of this Option.

 

(d)           If Participant’s Service terminates due to involuntary
termination by the Company with Cause, the Participant shall forfeit the vested
and unvested portion of this Option on the date of such termination of Service.

 

(e)           Subject to the Plan, this Option may be exercised by
submitting to the Company: (i) written notice of exercise (in accordance with,
and referencing, this Agreement) from the person entitled to exercise this
Option, stating the whole number of Option Shares as to which this Option is
being exercised, the manner of payment for the Option Shares, the name and
address to which the share certificates are to be delivered with respect to the
Option Shares granted upon exercise of the Option, and such other information
as the Committee may require, and (ii) full payment for the Exercise Price of
Option Shares with respect to which this Option is exercised and any
withholding tax relating to the exercise of this Option.

 

(f)            Full payment may consist of any of the following methods:
(i) in cash, or its equivalent, in United States dollars; (ii) by tendering
Shares owned by the Participant for at least six months and duly endorsed for
transfer to the Company, (iii) Option Shares issuable to the Participant upon
exercise of the Option, or (iv) any combination of cash, certified or cashier’s
check and Shares. Shares issued upon exercise of this Option shall be issued in
the name of the Participant or, if requested by the Participant, in the name of
the Participant and his or her spouse. Until the Shares are issued (as
evidenced by the appropriate entry on the books of the Company or of a duly
authorized transfer agent of the Company), no right to vote or receive
dividends or any other rights as a stockholder shall exist with respect to the
Option Shares, notwithstanding the exercise of this Option. The Company shall
issue (or cause to be issued) such Shares promptly after this Option is
exercised. No adjustment will be made for a dividend or other right for which
the record date is prior to the date the Shares are issued, except as provided
in Section 7 below. Exercising this Option in any manner shall decrease
the number of Shares thereafter available for sale under this Option by the number
of Shares as to which this Option is exercised.

 

(g)           Upon receipt of the Notice of Exercise, the Company shall
issue (or cause to be issued) a new certificate to the Participant for the
Option Shares, registered in the name of the Participant and delivered to
Participant.

 

6.             Restrictions on Transfer

 

(a)           Unless determined otherwise by the Committee, this Option
may not be sold, transferred, pledged, assigned or otherwise alienated or
hypothecated, except by will or by the laws of descent or distribution or pursuant to a domestic relations order
(as defined in Code Section 414(p)), and may be exercised, during the
lifetime of the Participant, only by the Participant or his or her guardian or
legal representative. If the Committee permits this Option to

 

3

 

be transferable, the Committee may impose additional terms and conditions
as the Committee deems appropriate.

 

(b)           Notwithstanding the prohibitions set forth below in
subsection (a) above, the Participant shall be permitted at all times to
transfer any or all of this Option to certain trusts designated by the
Participant as long as such transfer or issuance is made as a gift (i.e., a transfer for no consideration,
with donative intent), whether during the Participant’s lifetime or to take
effect upon (or as a consequence of) the Participant’s death, to the
Participant’s spouse or children. Gifts in trust shall be deemed gifts to every
beneficiary and contingent beneficiary, and so shall not be permitted under
this Section if the beneficiaries or contingent beneficiaries shall include
anyone other than such spouse or children. Transfers to a spouse or child for
consideration, regardless of the amount, shall not be permitted under this
Section. Options transferred in accordance with this subsection (b) may be
exercised by the transferee.

 

7.             Adjustments

 

(a)           The number of Option Shares subject to this Option shall
be proportionately adjusted for any increase or decrease in the number of
issued Shares resulting from a stock split, reverse stock split, stock
dividend, combination or reclassification of the Shares, or any other increase
or decrease in the number of issued Shares effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been “effected
without receipt of consideration.”  Such
adjustments shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive.

 

(b)           In the event of the proposed dissolution or liquidation of
the Company, the Committee shall notify Participant as soon as practicable
prior to the effective date of such proposed transaction. The Committee in its
discretion may provide for Participant to have the right to exercise the vested
portion of this Option until ten (10) days prior to such transaction. To the
extent it has not been previously exercised, this Option will terminate
immediately prior to the consummation of such proposed action.

 

(c)           In the event of Change in Control that is a merger,
consolidation, or similar reorganization of the Company with any other entity
pursuant to which the holders of Shares surrender Shares (or the Shares are
deemed converted) in exchange for other shares of capital stock or securities
of the Company or another entity, then an equitable adjustment shall be made in
this Option and Participant’s Shares subject to the Plan. Such equitable
adjustment may be (i) the substitution of the number and kind of shares of capital
stock or other securities that the holders of Shares are entitled to receive
for each Share surrendered pursuant to the transaction and/or the proportionate
adjustment to the Exercise Price or (ii) any other adjustment that the Board
determines to be equitable. Such adjustment shall be made by the Board, whose
determination in that respect shall be final, binding and conclusive.

 

(d)           Except as provided in this Section 7, Participant shall
have no rights by reason of (i) any subdivision or consolidation of shares of
stock of any class, (ii) the payment of any dividend or (iii) any other
increase or decrease in the number of shares of stock of any class. Any
issuance by the Company of shares of stock of any class, or securities
convertible into

 

4

 

shares of stock of any class, shall not affect, and no adjustment by
reason thereof shall be made with respect to, the number or Exercise Price of
Shares subject to this Option. The grant of this Option shall not affect in any
way the right or power of the Company to make adjustments, reclassifications,
reorganizations or changes of its capital or business structure, to merge or
consolidate or to dissolve, liquidate, sell or transfer all or any part of its
business or assets.

 

8.             Restrictive Covenants

 

(a)           Nondisclosure and Nonuse of Trade Secrets. The Participant
acknowledges that he has had and will have access to confidential information
of the Company and its Affiliates (including, but not limited to, current and
prospective confidential know-how, specialized training, customer lists,
marketing plans, business plans, financial and pricing information, and
information regarding acquisitions, mergers and/or joint ventures) concerning
the business, customers, clients, contacts, prospects, and assets of the
Company and its Affiliates that is unique, valuable and not generally known
outside the Company and its Affiliates, and that was obtained from the Company
or an Affiliate or which was learned as a result of the performance of services
by the Participant on behalf of the Company or an Affiliate (“Trade Secrets”). Trade
Secrets shall not include any information that: (i) is now, or hereafter
becomes, through no act or failure to act on the part of the Participant that
constitutes a breach of this Section 8, generally known or available to the
public; (ii) is known to the Participant at the time such information was
obtained from the Company or an Affiliate; (iii) is hereafter furnished without
restriction on disclosure to the Participant by a third party, other than an
employee or agent of the Company or an Affiliate, who is not under any
obligation of confidentiality to the Company or an Affiliate; (iv) is disclosed
with the written approval of the Company or an Affiliate; or (v) is required to
be disclosed or provided by law, court order, or similar compulsion, including
pursuant to or in connection with any legal proceeding involving the parties
hereto; provided however, that such disclosure shall be limited to the extent
so required or compelled; and provided further, however, that if the
Participant is required to disclose such confidential information, he shall
give the Company notice of such disclosure and cooperate in seeking suitable
protections. Other than in the course of performing services for the Company
and its Affiliates, the Participant will not, at any time, directly or
indirectly use, divulge, furnish or make accessible to any person any Trade
Secrets, but instead will keep all Trade Secrets strictly and absolutely
confidential. The Participant will deliver promptly to the Company or the
Affiliate that employed the Participant, at the termination of his employment
or at any other time at the request of the Company or an Affiliate, without
retaining any copies, all documents and other materials in his possession
relating, directly or indirectly, to any Trade Secrets.

 

(b)           Non-Competition. The Participant
acknowledges and agrees that (i) in the course of the Participant’s Service the
Participant shall become familiar with the Trade Secrets of the Company and its
Affiliates, (ii) the Participant’s services to the Company and its Affiliates
are unique in nature and of an extraordinary value to the Company and its
Affiliates, and (iii) the Company and its Affiliates could be irreparably
damaged if the Participant were to provide similar services to any person or
entity competing with the Company or any Affiliate or engaged in a similar
business. In connection with the issuance to the Participant of the Option hereunder,
and in consideration for and as an inducement to the Company to enter into this
Agreement, the Participant covenants and agrees that during the period
beginning on the Grant Date and ending on the second anniversary of the date of
the termination of the Participant’s Service (the

 

5

 

“Restricted Period”), the Participant shall not directly or indirectly
own any interest in, operate, control or participate as a partner, director,
principal, officer, or agent of, enter into the employment of, act as a
consultant to, or perform any services for, any company, person, or entity
engaged in a “Competitive Business” (as defined herein). A Competitive Business
shall include any company, person or entity that is involved in or seeks to
become involved in providing information technology services and solutions to
the financial services industry, including business process and technology
advice, software package selection and integration, application development, maintenance
and support, network and system security and specialized services, in any
country in which the Company or an Affiliate is doing business at the time of
termination of the Participant’s employment.

 

(c)           Nonsolicitation. During the
Restricted Period, the Participant shall not, directly or indirectly solicit or
induce, or attempt to solicit or induce, any current employee of the Company or
an Affiliate, or any individual who becomes an employee during the Restricted
Period, to leave his or her employment with the Company or an Affiliate or join
or become affiliated with any other business or entity, hire any employee of
the Company or an Affiliate or in any way interfere with the relationship
between any employee and the Company or an Affiliate. During the Restricted
Period, the Participant shall not, directly or indirectly, solicit or induce,
or attempt to solicit or induce, any customer, supplier, licensee, licensor or
other business relation of the Company or an Affiliate to terminate its
relationship or contract with the Company or an Affiliate, to cease doing
business with the Company or an Affiliate, or in any way interfere with the
relationship between any such customer, supplier, licensee or business relation
and the Company or an Affiliate (including making any negative statements or
communications concerning the Company or an Affiliate or their employees).

 

(d)           Judicial Modification. If the final
judgment of a court of competent jurisdiction declares that any term or
provision of this Section 8 is invalid or unenforceable, the parties agree that
(i) the court making the determination of invalidity or unenforceability shall
have the power to reduce the scope, duration, or geographic area of the term or
provision, to delete specific words or phrases, or to replace any invalid or
unenforceable term or provision with a term or provision that is valid and
enforceable and that comes closest to expressing the intention of the invalid
or unenforceable term or provision, (ii) the parties shall request that the
court exercise that power, and (iii) this Agreement shall be enforceable as so
modified after the expiration of the time within which the judgment or decision
may be appealed.

 

(e)           Remedy for Breach. The Participant
agrees that in the event of a breach or threatened breach of any of the
covenants contained in this Section 8, the Participant shall forfeit, upon
written notice to such effect from the Company:

 

(i)            Any and all Options granted to him
or her under the Plan and this Agreement, including vested Options;

 

(ii)           The profit the Participant has
realized on the exercise of any Options, which is the difference between (A)
the Exercise Price of any Options the Participant exercised between the
one-year period prior to the earlier of (x) the date of such breach or
threatened breach or (y) the date of Participant’s termination of Service, and
the end of the Restricted Period and (B) the Fair Market Value of the Shares
purchased under such Options (which difference the Participant shall be
required to repay to the Company).

 

6

 

In addition to the foregoing, in the event of a breach
or threatened breach of any of the covenants contained in this Section 8, the
Company shall also have the right to seek enforcement of any other penalties or
restrictions that may apply under any employment or other agreement between the
Participant and the Company (or an Affiliate), state law, or otherwise. The
forfeiture provisions of this Section shall continue to apply, in accordance
with their terms, after the provisions of any employment or other agreement
between the Company (or an Affiliate) and the Participant have lapsed.

 

9.             Notices

 

All notices by one party to the other under this
Agreement shall be in writing and personally delivered or sent via overnight
mail, registered or certified mail, or facsimile.

 

10.          Miscellaneous

 

(a)           This Agreement constitutes the entire understanding and
agreement among the parties with respect to the transactions contemplated
herein and supersedes any and all prior or contemporaneous oral or written
communication with respect to the subject matter hereof.

 

(b)           All of the terms, provisions and conditions of this
Agreement shall be binding upon and inure to the benefit of the parties hereto
and their successors and assigns.

 

(c)           The laws of the State of Illinois, without giving effect
to the conflict of laws provisions thereof, shall govern the formation,
interpretation and performance of this Agreement. Neither party may bring any
action involving this Agreement except in the Circuit Court of Cook County,
Illinois or the United States District Court for the Northern District of
Illinois, Eastern Division and the parties hereby acknowledge and submit to the
personal jurisdiction of either such court. Each party consents to service of
process by means of any of the methods for delivery of notice that are
specified in Section 9.

 

(d)           Participant hereby acknowledges receipt of a copy of the
Plan and agrees to the terms and conditions therein. In the event of any
conflict between the provisions of this Agreement and those of the Plan, the
provisions of the Plan shall govern only to the extent necessary to resolve
such conflict.

 

(e)           The parties may execute this Agreement in one or more
counterparts, all of which together shall constitute but one Agreement.

 

11.          No Right to Employment.

 

Nothing
contained in this Agreement or the Option granted pursuant thereto shall confer
upon any Participant any right to be continued in the Service or employment of
the Company, or interfere in any way with the right of the Company to terminate
any Participant’s Service or employment at any time.

 

12.          Specific Performance.

 

Participant
and the Company acknowledge that Participant and the Company will be entitled
to enforce their rights under this Agreement to recover damages and costs
(including

 

7

 

reasonable
attorneys’ fees) caused by any breach of any provision of this Agreement and to
exercise all other rights existing in their favor. Participant and the Company
further agree and acknowledge that money damages might not be an adequate
remedy for any breach of the provisions of this Agreement and that Participant
and the Company may, each in its sole discretion, apply to any court of law or
equity in accordance with Section 10(c) (without posting any bond or deposit)
for specific performance and/or other injunctive relief in order to enforce or
prevent any violations of the provisions of this Agreement.

 

13.          Resolution of Disputes.

 

Any
dispute or disagreement that shall arise under, as a result of, or pursuant to
this Agreement shall be determined by the Committee in its sole and absolute
discretion, and any such determination or any other determination by the
Committee under or pursuant to this Agreement and any interpretation by the
Committee of the terms of this Agreement shall be final, binding, and
conclusive on all persons affected thereby.

 

14.          Preemption by Applicable Laws or
Regulations.

 

Anything
in this Agreement to the contrary notwithstanding, if the Committee determines
that any law, regulation, or requirement of any governmental authority having
appropriate jurisdiction shall require either the Company or the Participant to
take any action prior to or in connection with the issuance or sale of Shares
attributable to the Option granted hereunder, the issue or sale of such Shares
shall be deferred until such action shall have been taken.

 

15.          Securities Law Requirements.

 

(a)           If required by the Company, the notice of exercise of the
Option shall be accompanied by the Participant’s written representations
covenants, and undertakings that the Company may prescribe pursuant to or to
satisfy securities laws and regulations or other requirements.

 

(b)           This Option shall not be exercisable in whole or in part,
nor shall the Company be obligated to sell any Shares subject to such Award, if
such exercise and sale may, in the opinion of counsel for the Company, violate
the Securities Act of 1933, as amended (or other federal or state statutes
having similar requirements), as it may be in effect at that time.

 

(c)           With respect to individuals subject to Section 16 of the
Exchange Act, transactions under this Agreement are intended to comply with all
applicable conditions of Rule 16b-3, or its successors under the Exchange Act. To
the extent any provision of the Agreement or action by the Committee fails to
so comply, the Committee may determine, to the extent permitted by law, that
such provision or action shall be null and void.

 

16.          Amendments.

 

The
Company and the Participant may amend this Agreement only by a written
instrument signed by both parties.

 

8

 

17.          Subject to Plan.

 

This Option and the grant and the exercise hereof are
subject to the terms and conditions of the Plan, which terms and conditions
include, but are not limited to, restrictions on the ability to exercise the
Option after termination of Service, restrictions on the transferability of the
Options, and termination of the Plan. The Plan is incorporated herein by
reference and made a part hereof, but the terms of the Plan shall not be
considered an enlargement of any benefits under this Agreement. Wherever a
conflict may arise between the terms of this Agreement and the terms of the
Plan, the terms of the Plan shall control solely to the extent necessary to
resolve such conflict. In addition, the Option granted hereunder is subject to
any rules and regulations promulgated by the Committee pursuant to the Plan,
now or hereafter in effect.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Non-Qualified Stock Option Agreement as of the Date of Grant set forth
above.

 

	
  PARTICIPANT

  	
   

  	
  KANBAY INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
   

  
						

 

 

Exhibit A

 

to

 

NON-QUALIFIED STOCK OPTION AGREEMENT PURSUANT

TO THE
STOCK INCENTIVE PLAN

 

Notice of
Exercise

 

(To be executed only upon
exercise of the option)

 

	
  Participant:

  	
   

  	
   

  	
  Number of Shares purchased hereunder:

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Exercise Price:  $

  	
   

  
	
   

  	
   

  	
  Date of Grant:

  	
   

  
	
  Date of Exercise:

  	
   

  	
   

  	
   

  
									

 

Reference is made to the Kanbay International, Inc.
Non-Qualified Stock Option Agreement, with the Date of Grant set forth above
(the “Agreement”), between Kanbay International, Inc. a Delaware corporation
(the “Company”), and the Participant set forth above. Capitalized terms used
herein and not otherwise defined have the meanings assigned to such terms in
the Agreement.

 

1.           Participant hereby irrevocably
exercises the Option for and purchases the number of shares of Common Stock of
the Company set forth above.

 

2.           The full purchase price for the
shares of Common Stock purchased hereunder, calculated in accordance with the Agreement,
is $                                .
The closing of the purchase of the Option Shares shall be in accordance with
the Agreement.

 

3.           Participant requests that
certificates for the shares of Common Stock purchased hereunder be issued in
the name of and delivered to the Participant at the following address:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

IN WITNESS WHEREOF, Participant has executed this Notice
of Exercise of the date of Exercise set forth above.

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature of Participant

  	
   

  
	
   

  
	
  Agreed and Acknowledged:

  
	
  Kanbay International, Inc.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:Exhibit 10.20

 

KANBAY INTERNATIONAL, INC.

 

NON-QUALIFIED STOCK OPTION AGREEMENT

 

	
  Participant:                                                    

  	
   

  	
  Number of Shares subject to this Option:                           

  
	
   

  	
   

  	
   

  
	
  Date of Grant: 
  [                          ],
  2004

  	
   

  	
  Exercise Price:  $                           

  

 

THIS NON-QUALIFIED STOCK OPTION AGREEMENT (“Agreement”),
effective as of the Date of Grant set forth above, is entered into by and
between Kanbay International, Inc., a Delaware corporation (the “Company”) and
the Participant set forth above.

 

RECITALS

 

WHEREAS, the Company has adopted the Kanbay
International, Inc. Stock Incentive Plan (as amended from time to time, the “Plan”),
which provides for the grant of non-statutory stock options (the “Options”) to
Service Providers (as defined in the Plan) of the Company, as selected by the
Company’s Compensation Committee (the “Committee”), to purchase Shares of the
Company;

 

WHEREAS, the Participant has been selected by the
Committee to receive an Option in accordance with the provisions of the Plan;
and

 

WHEREAS, the parties hereto desire to evidence in
writing the terms and conditions of the Option.

 

NOW, THEREFORE, in consideration of the foregoing and
of the mutual covenants and agreements herein contained and other good and
valuable consideration, the receipt, sufficiency and adequacy of which are
hereby acknowledged, the parties hereto hereby agree as follows:

 

1.             Definitions

 

All capitalized
terms used in this Agreement shall have the same meanings as are ascribed to
them in the Plan, unless expressly provided otherwise in this Agreement.

 

2.             Grant of Option; Exercise Price

 

The
Company hereby awards to the Participant this Option to purchase all or any
part of the number of shares of Common Stock set forth above (the “Option
Shares”) at the Exercise Price set forth above on the terms and conditions set
forth herein and subject in all respects to the terms and provisions of the
Plan, which is incorporated herein by reference. This Option is not intended to
be treated as an Incentive Stock Option.

 

3.             Vesting of Option

 

This Option is exercisable only upon and after vesting.
The Options granted herein shall vest according to the following schedule:

 

 

 

(a)           one-third
on the first anniversary of the Date of Grant, if the Participant has remained
in Service continuously until that date;

 

(b)           an
additional one-third on the second anniversary of the Date of Grant, if the
Participant has remained in Service continuously until that date;

 

(c)           an
additional one-third on the third anniversary of the Date of Grant, if the
Participant has remained in Service continuously until that date; and

 

Except as provided in Section 4 below, or as the
Committee may determine in its sole discretion on a case by case basis, no
Option shall continue to vest after the date the Participant has terminated
Service for any reason and any unvested portion of this Option theretofore held
by the Participant shall be forfeited as of that date.

 

4.             Special Vesting Provisions.

 

(a)           Notwithstanding
anything to the contrary in Section 3 above, if a Participant dies or suffers a
Disability during the vesting period described in Section 3 above while in
Service, the unvested portion of this Option held by such Participant or any
Transferee thereof shall automatically vest on the date of death or Disability.

 

(b)           Notwithstanding
anything to the contrary in Section 3 above, the vesting period described in
Section 3 above will be suspended during the pendency of any bona fide leave of
absence approved by the Company and the vesting period will be increased by the
length of time of such leave of absence. Notwithstanding the foregoing or
anything in the Plan to the contrary, if this Option would, by the operation of
this paragraph, vest after the tenth anniversary of its original Date of Grant,
then this Option shall terminate on the tenth anniversary of its original Date
of Grant and in no event shall a Participant or Transferee be permitted to
exercise this Option after the tenth anniversary of the original Date of Grant.
This paragraph shall have no effect on this Option, or portions hereof, which,
by its terms, is vested prior to the first day of an Employee’s leave of
absence.

 

(c)           If a Change in Control occurs, the
unvested portion of this Option will become fully vested on the closing date of
the Change in Control, if the Participant has remained in Service continuously
until that date.

 

5.             Exercise of Option

 

(a)           Except
as otherwise provided herein, each portion of the Option granted hereunder
shall expire on the date that is five (5) years from the date that portion of
the Option becomes vested and exercisable in accordance with Section 3. The
Participant will be deemed to exercise portions of this Option in the order in
which each portion of this Option vests. If the Participant does not exercise
any portion of the Option within five (5) years from the date that portion of
the Option became vested and exercisable, that portion of the Option will
expire and be forfeited. The following chart illustrates the Vesting and
exercisability of the Option:

 

	
   

  	
   

  	
  Option
  Vested and Exercisable

  	
   

  	
  Option
  Expires if not Exercised

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  [100] Shares

  	
   

  	
  May     ,
  2005

  	
   

  	
  May     ,
  2010

  
	
  [100] Shares

  	
   

  	
  May     ,
  2006

  	
   

  	
  May     ,
  2011

  
	
  [100] Shares

  	
   

  	
  May     ,
  2007

  	
   

  	
  May     ,
  2012

  

 

2

 

(b)           If
Participant’s Service terminates due to Disability, voluntary termination by
Participant, or involuntary termination by the Company without Cause, the
vested portion of this Option (including any portion subject to accelerated
vesting pursuant to Section 4) held by such Participant or any Transferee
thereof shall be exercisable only to the extent that it was exercisable on the
date of such termination of Service and shall expire three (3) months after
such termination of Service or on its stated expiration date, whichever occurs
first.

 

(c)           If
Participant’s Service terminates due to death, the vested portion of this
Option (including any portion subject to accelerated vesting pursuant to
Section 4 and any held by a Transferee thereof) shall expire on the first
anniversary of the date of such Participant’s death, regardless of the stated
expiration date of this Option.

 

(d)           If
Participant’s Service terminates due to involuntary termination by the Company
with Cause, the Participant shall forfeit the vested and unvested portion of
this Option on the date of such termination of Service.

 

(e)           Subject
to the Plan, this Option may be exercised by submitting to the Company: (i)
written notice of exercise (in accordance with, and referencing, this
Agreement) from the person entitled to exercise this Option, stating the whole
number of Option Shares as to which this Option is being exercised, the manner
of payment for the Option Shares, the name and address to which the share
certificates are to be delivered with respect to the Option Shares granted upon
exercise of the Option, and such other information as the Committee may
require, and (ii) full payment for the Exercise Price of Option Shares with respect
to which this Option is exercised and any withholding tax relating to the
exercise of this Option.

 

(f)            Full
payment may consist of any of the following methods: (i) in cash, or its
equivalent, in United States dollars; (ii) by tendering Shares owned by the
Participant for at least six months and duly endorsed for transfer to the
Company, (iii) Option Shares issuable to the Participant upon exercise of the
Option, or (iv) any combination of cash, certified or cashier’s check and
Shares. Shares issued upon exercise of this Option shall be issued in the name
of the Participant or, if requested by the Participant, in the name of the
Participant and his or her spouse. Until the Shares are issued (as evidenced by
the appropriate entry on the books of the Company or of a duly authorized
transfer agent of the Company), no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Option Shares,
notwithstanding the exercise of this Option. The Company shall issue (or cause
to be issued) such Shares promptly after this Option is exercised. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the Shares are issued, except as provided in
Section 7 below. Exercising this Option in any manner shall decrease the
number of Shares thereafter available for sale under this Option by the number
of Shares as to which this Option is exercised.

 

(g)           Upon
receipt of the Notice of Exercise, the Company shall issue (or cause to be issued)
a new certificate to the Participant for the Option Shares, registered in the
name of the Participant and delivered to Participant.

 

3

 

6.             Restrictions on Transfer

 

(a)           Unless
determined otherwise by the Committee, this Option may not be sold,
transferred, pledged, assigned or otherwise alienated or hypothecated, except
by will or by the laws of descent or distribution or pursuant to a domestic relations order (as defined in Code Section
414(p)), and may be exercised, during the lifetime of the Participant,
only by the Participant or his or her guardian or legal representative. If the
Committee permits this Option to be transferable, the Committee may impose
additional terms and conditions as the Committee deems appropriate.

 

(b)           Notwithstanding
the prohibitions set forth below in subsection (a) above, the Participant shall
be permitted at all times to transfer any or all of this Option to certain
trusts designated by the Participant as long as such transfer or issuance is
made as a gift (i.e., a transfer
for no consideration, with donative intent), whether during the Participant’s
lifetime or to take effect upon (or as a consequence of) the Participant’s
death, to the Participant’s spouse or children. Gifts in trust shall be deemed
gifts to every beneficiary and contingent beneficiary, and so shall not be
permitted under this Section if the beneficiaries or contingent beneficiaries
shall include anyone other than such spouse or children. Transfers to a spouse
or child for consideration, regardless of the amount, shall not be permitted
under this Section. Options transferred in accordance with this subsection (b)
may be exercised by the transferee.

 

7.             Adjustments

 

(a)           The
number of Option Shares subject to this Option shall be proportionately
adjusted for any increase or decrease in the number of issued Shares resulting
from a stock split, reverse stock split, stock dividend, combination or
reclassification of the Shares, or any other increase or decrease in the number
of issued Shares effected without receipt of consideration by the Company;
provided, however, that conversion of any convertible securities of the Company
shall not be deemed to have been “effected without receipt of consideration.”  Such adjustments shall be made by the Board,
whose determination in that respect shall be final, binding and conclusive.

 

(b)           In
the event of the proposed dissolution or liquidation of the Company, the
Committee shall notify Participant as soon as practicable prior to the
effective date of such proposed transaction. The Committee in its discretion
may provide for Participant to have the right to exercise the vested portion of
this Option until ten (10) days prior to such transaction. To the extent it has
not been previously exercised, this Option will terminate immediately prior to
the consummation of such proposed action.

 

(c)           In
the event of Change in Control that is a merger, consolidation, or similar
reorganization of the Company with any other entity pursuant to which the
holders of Shares surrender Shares (or the Shares are deemed converted) in
exchange for other shares of capital stock or securities of the Company or
another entity, then an equitable adjustment shall be made in this Option and
Participant’s Shares subject to the Plan. Such equitable adjustment may be (i)
the substitution of the number and kind of shares of capital stock or other
securities that the holders of Shares are entitled to receive for each Share
surrendered pursuant to the transaction and/or the proportionate adjustment to
the Exercise Price or (ii) any other adjustment that the

 

4

 

Board determines to be equitable. Such
adjustment shall be made by the Board, whose determination in that respect
shall be final, binding and conclusive.

 

(d)           Except
as provided in this Section 7, Participant shall have no rights by reason of
(i) any subdivision or consolidation of shares of stock of any class, (ii) the
payment of any dividend or (iii) any other increase or decrease in the number
of shares of stock of any class. Any issuance by the Company of shares of stock
of any class, or securities convertible into shares of stock of any class,
shall not affect, and no adjustment by reason thereof shall be made with
respect to, the number or Exercise Price of Shares subject to this Option. The
grant of this Option shall not affect in any way the right or power of the
Company to make adjustments, reclassifications, reorganizations or changes of
its capital or business structure, to merge or consolidate or to dissolve,
liquidate, sell or transfer all or any part of its business or assets.

 

8.             Notices

 

All notices by one party to the other under this
Agreement shall be in writing and personally delivered or sent via overnight
mail, registered or certified mail, or facsimile.

 

9.             Miscellaneous

 

(a)           This
Agreement constitutes the entire understanding and agreement among the parties
with respect to the transactions contemplated herein and supersedes any and all
prior or contemporaneous oral or written communication with respect to the
subject matter hereof.

 

(b)           All
of the terms, provisions and conditions of this Agreement shall be binding upon
and inure to the benefit of the parties hereto and their successors and assigns.

 

(c)           The
laws of the State of Illinois, without giving effect to the conflict of laws
provisions thereof, shall govern the formation, interpretation and performance
of this Agreement. Neither party may bring any action involving this Agreement
except in the Circuit Court of Cook County, Illinois or the United States
District Court for the Northern District of Illinois, Eastern Division and the
parties hereby acknowledge and submit to the personal jurisdiction of either
such court. Each party consents to service of process by means of any of the
methods for delivery of notice that are specified in Section 8.

 

(d)           Participant
hereby acknowledges receipt of a copy of the Plan and agrees to the terms and
conditions therein. In the event of any conflict between the provisions of this
Agreement and those of the Plan, the provisions of the Plan shall govern only
to the extent necessary to resolve such conflict.

 

(e)           The
parties may execute this Agreement in one or more counterparts, all of which
together shall constitute but one Agreement.

 

10.          No Right to Employment.

 

Nothing
contained in this Agreement or the Option granted pursuant thereto shall confer
upon any Participant any right to be continued in the Service or employment of
the Company, or interfere in any way with the right of the Company to terminate
any Participant’s Service or employment at any time.

 

5

 

11.          Specific Performance.

 

Participant
and the Company acknowledge that Participant and the Company will be entitled
to enforce their rights under this Agreement to recover damages and costs
(including reasonable attorneys’ fees) caused by any breach of any provision of
this Agreement and to exercise all other rights existing in their favor. Participant
and the Company further agree and acknowledge that money damages might not be
an adequate remedy for any breach of the provisions of this Agreement and that
Participant and the Company may, each in its sole discretion, apply to any
court of law or equity in accordance with Section 9(c) (without posting any
bond or deposit) for specific performance and/or other injunctive relief in
order to enforce or prevent any violations of the provisions of this Agreement.

 

12.          Resolution of Disputes.

 

Any
dispute or disagreement that shall arise under, as a result of, or pursuant to
this Agreement shall be determined by the Committee in its sole and absolute
discretion, and any such determination or any other determination by the
Committee under or pursuant to this Agreement and any interpretation by the
Committee of the terms of this Agreement shall be final, binding, and
conclusive on all persons affected thereby.

 

13.          Preemption by Applicable Laws or
Regulations.

 

Anything
in this Agreement to the contrary notwithstanding, if the Committee determines
that any law, regulation, or requirement of any governmental authority having
appropriate jurisdiction shall require either the Company or the Participant to
take any action prior to or in connection with the issuance or sale of Shares
attributable to the Option granted hereunder, the issue or sale of such Shares
shall be deferred until such action shall have been taken.

 

14.          Securities Law Requirements.

 

(a)           If required by the Company, the
notice of exercise of the Option shall be accompanied by the Participant’s
written representations covenants, and undertakings that the Company may
prescribe pursuant to or to satisfy securities laws and regulations or other
requirements.

 

(b)           This Option shall not be exercisable
in whole or in part, nor shall the Company be obligated to sell any Shares
subject to such Award, if such exercise and sale may, in the opinion of counsel
for the Company, violate the Securities Act of 1933, as amended (or other
federal or state statutes having similar requirements), as it may be in effect
at that time.

 

(c)           With respect to individuals subject
to Section 16 of the Exchange Act, transactions under this Agreement are
intended to comply with all applicable conditions of Rule 16b-3, or its
successors under the Exchange Act. To the extent any provision of the Agreement
or action by the Committee fails to so comply, the Committee may determine, to
the extent permitted by law, that such provision or action shall be null and
void.

 

15.          Amendments.

 

The
Company and the Participant may amend this Agreement only by a written
instrument signed by both parties.

 

6

 

16.          Subject to Plan.

 

This Option and the grant and the exercise hereof are
subject to the terms and conditions of the Plan, which terms and conditions
include, but are not limited to, restrictions on the ability to exercise the
Option after termination of Service, restrictions on the transferability of the
Options, and termination of the Plan. The Plan is incorporated herein by
reference and made a part hereof, but the terms of the Plan shall not be
considered an enlargement of any benefits under this Agreement. Wherever a
conflict may arise between the terms of this Agreement and the terms of the
Plan, the terms of the Plan shall control solely to the extent necessary to
resolve such conflict. In addition, the Option granted hereunder is subject to
any rules and regulations promulgated by the Committee pursuant to the Plan,
now or hereafter in effect.

 

IN WITNESS WHEREOF, the parties hereto have executed
this Non-Qualified Stock Option Agreement as of the Date of Grant set forth
above.

 

	
  PARTICIPANT

  	
   

  	
  KANBAY INTERNATIONAL, INC.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Its:

  	
   

  
						

 

7

 

Exhibit A

 

to

 

NON-QUALIFIED STOCK OPTION AGREEMENT PURSUANT

TO THE
STOCK INCENTIVE PLAN

 

Notice of
Exercise

 

(To be executed only upon
exercise of the option)

 

	
  Participant:

  	
   

  	
   

  	
  Number of Shares purchased hereunder:

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Exercise Price:  $

  	
   

  
	
   

  	
   

  	
  Date of Grant:

  	
   

  
	
  Date of Exercise:

  	
   

  	
   

  	
   

  
									

 

Reference is made to the Kanbay International, Inc.
Non-Qualified Stock Option Agreement, with the Date of Grant set forth above
(the “Agreement”), between Kanbay International, Inc. a Delaware corporation
(the “Company”), and the Participant set forth above. Capitalized terms used
herein and not otherwise defined have the meanings assigned to such terms in
the Agreement.

 

1.               Participant hereby irrevocably
exercises the Option for and purchases the number of shares of Common Stock of
the Company set forth above.

 

2.               The
full purchase price for the shares of Common Stock purchased hereunder,
calculated in accordance with the Agreement, is $                                 .
The closing of the purchase of the Option Shares shall be in accordance with
the Agreement.

 

3.               Participant
requests that certificates for the shares of Common Stock purchased hereunder
be issued in the name of and delivered to the Participant at the following
address:

 

	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  

 

IN WITNESS WHEREOF, Participant has executed this
Notice of Exercise of the date of Exercise set forth above.

 

	
   

  	
   

  	
   

  
	
   

  	
  Signature of Participant

  	
   

  
	
   

  
	
  Agreed and Acknowledged:

  
	
  Kanbay International, Inc.

  
	
   

  
	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Its:

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