Document:

Exhibit 10.2

 

ADJOINED
CONSULTING LLC INCENTIVE COMPENSATION PLAN

 

Kanbay
International, Inc. (“Kanbay”) has adopted the Adjoined Consulting LLC
Incentive Compensation Plan (the “Plan”) to provide for the payment of
performance bonuses to certain executives and management employees of Adjoined
Consulting LLC (the “Company”) and other Affiliates in consideration of their
efforts during the 2006, 2007 and 2008 fiscal years of Kanbay. The purpose of
the Plan is to align the goals of those Executives participating in the Plan
with the business goals and objectives of Kanbay and the Company, to provide
these Executives with financial incentives to attain those goals and objectives
and to reward these Executives for meeting their Performance Targets.

 

1.                                      DEFINITIONS

 

For purposes of the Plan,
the following terms shall have the following definitions:

 

1.1                                 “Affiliate”
means any corporation or other business entity, or predecessor of such entity,
if any, that is a parent or subsidiary of Kanbay, including ownership of 50% or
more of the voting or profits interests of the corporation or other business
entity.

 

1.2                                 “Board”
means the Board of Directors of Kanbay.

 

1.3                                 “Bonus
Schedule” means the bonus acknowledgement schedule provided to an Executive
that sets forth the Performance Bonus that the Executive is eligible to earn
under the Plan and the Performance Targets applicable to such Performance
Bonus.

 

1.4                                 “Cause” means the Executive’s:

 

(a)                                  willful
neglect of or continued failure to substantially perform, in any material
respect, his or her duties (as assigned to the Executive from time to time) or
obligations (including a violation of policy) to Kanbay, the Company or other
Affiliate other than any such failure resulting from his or her incapacity due
to physical or mental illness;

 

(b)                                 commission
of a willful act (including, without limitation, a dishonest or fraudulent act)
or a grossly negligent act, or the willful or grossly negligent omission to act
that is intended to cause, causes or is reasonably likely to cause material
harm to Kanbay, the Company or other Affiliate, monetarily, reputationally or
otherwise;

 

(c)                                  commission
or conviction of, or plea of nolo contendere
to, any felony or any crime or offense involving dishonesty or fraud or that is
significantly injurious to Kanbay, the Company or other Affiliate, monetarily,
reputationally or otherwise; or

 

(d)                                 abuse
of illegal drugs or other controlled substances or habitual intoxication.

 

An act or omission is “willful”
for this purpose if it was knowingly done, or knowingly omitted to be done, by
the Executive not in good faith and without reasonable belief that the act or
omission was in the best interest of Kanbay or the Company. The Committee has
the discretion, in other circumstances, to determine in good faith, from all
the facts and

 

 

circumstances reasonably available to it, whether an Executive who is
under investigation for, or has been charged with, a crime will be deemed to
have committed it for purposes of this Plan.

 

1.5                                 “Change
in Control” means the occurrence of any one or more of the following:

 

(a)                                  Any
“person” (as such term is defined in Section 3(a)(9) of the Securities Exchange
Act of 1934, as amended (the “Exchange Act”) and as used in Sections 13(d)(3)
and 14(d)(2) of the Exchange Act), including a “group” (as defined in Section
13(d)(3) of the Exchange Act), other than (i) Kanbay, (ii) any wholly-owned
subsidiary of Kanbay, or (iii) any employee benefit plan (or related trust)
sponsored or maintained by Kanbay, the Company or other Affiliate, becomes a “beneficial
owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of Kanbay having fifty percent (50%) or more of the
combined voting power of the then-outstanding securities of Kanbay that may be
cast for the election of directors of Kanbay (other than as a result of an
issuance of securities initiated by Kanbay in the ordinary course of business)
(the “Company Voting Securities”); provided, however, that the event described
in this Section 1.6(a) shall not be deemed to be a Change in Control by virtue
of any underwriter temporarily holding securities pursuant to an offering of
such securities;

 

(b)                                 During
any period of two consecutive years, individuals who at the beginning of any
such period constitute the Board (the “Incumbent Directors”) cease for any
reason to constitute at least a majority of the Board, unless the election, or
the nomination for election by the stockholders of Kanbay, of each new director
of Kanbay during such period was approved by a vote of at least two-thirds of
the Incumbent Directors then still in office;

 

(c)                                  As
the result of, or in connection with, any cash tender or exchange offer, merger
or other business combination, sale of all or substantially all of the assets
or contested election, or any combination of the foregoing transactions, less
than a majority of the combined voting power of the then-outstanding securities
of Kanbay or any successor corporation or entity entitled to vote generally in
the election of the directors of Kanbay or such other corporation or entity
after such transaction is held in the aggregate by the holders of the
securities of Kanbay entitled to vote generally in the election of directors of
Kanbay immediately prior to such transaction; or

 

(d)                                 The
stockholders of Kanbay approve a plan of complete liquidation of Kanbay.

 

Notwithstanding the
foregoing, a Change in Control shall not be deemed to occur solely because any
person acquires beneficial ownership of more than fifty percent (50%) of the
Company Voting Securities as a result of the acquisition of Company Voting
Securities by Kanbay which reduces the number of Company Voting Securities
outstanding; provided, however, that if after such acquisition by Kanbay such
person becomes the beneficial owner of additional Company Voting Securities
that increases the percentage of outstanding Company Voting Securities
beneficially owned by such person, a Change in Control transaction shall then
occur.

 

Further notwithstanding the foregoing, unless a majority of the
Incumbent Directors determines otherwise, no Change in Control shall be deemed
to have occurred with respect to a

 

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particular Executive if the Change in Control
results from actions or events in which such Executive is a participant in a
capacity other than solely as an officer, employee or director of Kanbay,
the Company or an Affiliate.

 

1.6                                 “Closing
Date” has the same meaning set forth in Section 2.1 of the Merger Agreement
between Kanbay International, Inc., Kanbay Consulting, LLC, and Adjoined
Consulting, Inc., dated as of February 13, 2006.

 

1.7                                 “Committee”
means the Compensation Committee of the Board that is responsible for setting
Performance Targets, certifying that such targets have been met under the Plan
and the administration of the Plan.

 

1.8                                 “Company”
means Adjoined Consulting LLC (f/k/a Kanbay Consulting, LLC), a Delaware
limited liability company and wholly owned subsidiary of Kanbay, and any
successor thereto.

 

1.9                                 “Disability”
means (a) long-term disability as defined under the long-term disability plan
of Kanbay, the Company or other Affiliate that covers that Executive, (b) if
the Executive is not covered by such a long-term disability plan, disability as
defined for purposes of eligibility for a disability award under the U.S.
Social Security Act, or (c) if the Executive is not covered by a long-term
disability plan or the U.S. Social Security Act, the Committee shall determine
whether the Executive has incurred a Disability, in its sole discretion.

 

1.10                           “Executive” means an executive or
management employee of the Company or other Affiliate selected by the Committee
to participate in this Plan.

 

1.11                           “Kanbay”
means Kanbay International, Inc., a Delaware corporation, and any successor
thereto.

 

1.12                           “Performance
Bonus” means the additional cash remuneration payable to an Executive pursuant
to the Plan.

 

1.13                           “Performance
Period” means the applicable fiscal year of Kanbay, as set forth in the
applicable Bonus Schedule. The Plan will have three Performance Periods during
the term of the Plan, with the first being the 2006 fiscal year of Kanbay, the
second being the 2007 fiscal year of Kanbay and the third being the 2008 fiscal
year of Kanbay.

 

1.14                           “Performance
Target” means any quantitative objective or measurement (including any
individual, organizational or company-wide goal) that is appropriate and
relevant to the Executive for the Performance Period, as determined by the
Committee annually and set forth in the Bonus Schedule. Performance Targets
referring to global objectives will include performance metrics for Kanbay, the
Company and all other Affiliates. Performance Targets referring to regional or
territory objectives will include performance metrics for Kanbay, the Company
or its other Affiliates that operate in that region or territory. Performance
Targets may include, but are not limited to, the following, all as specified in
the Executive’s Bonus Schedule:

 

(a)                                  net
earnings;

 

(b)                                 operating
earnings or income;

 

(c)                                  earnings
growth;

 

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(d)                                 net
income (absolute or competitive growth rates comparative);

 

(e)                                  net
income applicable to common stock;

 

(f)                                    gross
revenue or revenue by pre-defined business segment (absolute or competitive
growth rates comparative);

 

(g)                                 revenue
backlog;

 

(h)                                 margins
realized on delivered services;

 

(i)                                     cash
flow, including operating cash flow, free cash flow, discounted cash flow
return on investment, and cash flow in excess of cost of capital;

 

(j)                                     earnings
per share of common stock;

 

(k)                                  return
on stockholders equity (absolute or peer-group comparative);

 

(l)                                     stock
price (absolute or peer-group comparative);

 

(m)                               absolute
and/or relative return on common stockholders equity;

 

(n)                                 absolute
and/or relative return on capital;

 

(o)                                 absolute
and/or relative return on assets;

 

(p)                                 economic
value added (income in excess of cost of capital);

 

(q)                                 customer
satisfaction;

 

(r)                                    expense
reduction;

 

(s)                                  associate
retention; and

 

(t)                                    ratio
of operating expenses to operating revenues.

 

2.                                      ELIGIBILITY

 

Each Executive who
participates in this Plan will receive a Bonus Schedule that sets forth the
maximum Performance Bonus, expressed as a flat dollar amount, that he or she
will be eligible to earn each Performance Period under the Plan. The Bonus
Schedule also will set forth the Performance Targets that have been established
by the Committee for the Performance Period (which may, in the Committee’s
discretion, differ in subsequent Performance Periods) and that must be satisfied
in order for the Executive to receive his or her Performance Bonus for that
Performance Period. An Executive is not eligible to receive any Performance
Bonus for a Performance Period under the Plan unless it is specifically
mentioned in the Bonus Schedule. Each Executive must return to the Committee or
its delegate an executed copy of the Bonus Schedule to be eligible for
Performance Bonuses under this Plan.

 

3.                                      PERFORMANCE
BONUSES

 

3.1                                 Amount
of Performance Bonus. The actual amount of the Performance Bonus that an
Executive receives will be based upon the attainment of the Performance Targets
set forth in the Bonus Schedule. If a Performance Target is not fully and
completely achieved during the relevant Performance Period, then the applicable
Performance Bonus shall not be earned or paid.

 

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3.2                                 Requirements
for Payment of Performance Bonus. Subject to the requirements of Section
3.1, an Executive will be entitled to receive payment of the Performance Bonus
(if any) for a Performance Period only if the Executive is employed by Kanbay, the Company or other Affiliate
on the date that the Performance Bonus (or such portion thereof) is paid for
that Performance Period, as set forth in Section 3.3 below. If an Executive’s
employment is terminated by the Company or other Affiliate for Cause, or if an
Executive voluntarily terminates his or her employment, prior to the date that
any Performance Bonus (or such portion thereof) for any Performance Period is
paid, he or she will not be entitled to, and will forfeit all rights to
receive, payment of such Performance Bonus.

 

Notwithstanding
the foregoing, and provided that all other terms and conditions of the Plan
have been satisfied, if the Executive’s employment is terminated after
completion of a Performance Period due to death, Disability or involuntary
termination by the Company or other Affiliate without Cause, the Executive will
be paid, to the extent not already paid, any Performance Bonus he or she would
have been paid had he or she been employed on the date that the Performance
Bonus (or such portion thereof) is paid for that completed Performance Period
as set forth in Section 3.3 below. Payment of the Executive’s Performance Bonus
under this Section 3.2 will be made within thirty days after the date of such
termination of Executive’s employment.

 

3.3                                 Time
and Medium of Payment. Subject to the requirements of Sections 3.1 and 3.2,
an Executive’s Performance Bonus will be paid as follows:

 

(a)                                  If
the Executive is designated by the Committee as a “Tier 1” associate on his or
her Bonus Schedule, Performance Bonuses (if any) for each Performance Period
during the term of the Plan will be paid in a lump sum no earlier than the
third anniversary of the Closing Date, but not later than thirty days
thereafter.

 

(b)                                 If
the Executive is designated by the Committee as a “Tier 2” associate on his or
her Bonus Schedule, 50% of the Performance Bonus (if any) for the first
Performance Period during the term of the Plan will be paid in a lump sum no
earlier than the first anniversary of the Closing Date, but not later than
thirty days thereafter, and 50% of the Performance Bonus (if any) for the
second Performance Period during the term of the Plan will be paid in a lump
sum no earlier than the second anniversary of the Closing Date, but not later
than thirty days thereafter. The remainder of any Performance Bonuses for the
first two Performance Periods and the Performance Bonus (if any) for the third
Performance Period will be paid in a lump sum no earlier than the third
anniversary of the Closing Date, but not later than thirty days thereafter.

 

(c)                                  If
the Executive is designated by the Committee as a “Tier 3” associate on his or
her Bonus Schedule, the Performance Bonus (if any) for any Performance Period
during the term of the Plan will be paid in a lump sum no earlier than the next
anniversary of the Closing Date immediately following the applicable
Performance Period, but not later than thirty days thereafter.

 

3.4                                 Committee
Certification. The Committee shall certify in writing, prior to payment of
any Performance Bonus hereunder to an Executive, that the Performance Targets
and any other material terms of the Plan were satisfied.

 

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3.5                                 Change
in Control. If a Change in Control occurs and thereafter the Executive’s
employment is involuntarily terminated without Cause by Kanbay, the Company or
other Affiliate, the Executive will be paid, to the extent not already paid,
any Performance Bonus he or she would have been paid for all Performance
Periods ending on or prior to the date his or her employment is terminated, as
if the Executive had been employed on the date that such Performance Bonus was
to be paid. Payment of the Executive’s Performance Bonus under this Section 3.5
will be made within thirty days after the date of such termination of the
Executive’s employment.

 

4.                                      GENERAL
TERMS AND CONDITIONS

 

4.1                                 Administration
by the Committee. The Committee will administer the Plan in accordance with
its terms, and will have all powers necessary to carry out the Plan’s
provisions. The Committee has full discretion to, and will, interpret the Plan
and determine all questions arising in its administration, interpretation and
application, including but not limited to questions of eligibility and the
status and rights of Executives and other persons. Any determination by the
Committee will be conclusive and binding on all persons. The Committee may
delegate to Kanbay’s Chief Executive Officer some or all of its authority under
the Plan, including the responsibility for setting Performance Targets (other
than with respect to himself), certifying whether such Performance Targets have
been met under the Plan, selecting eligible executives, and administering the
Plan.

 

4.2                                 No
Assurance of Employment or Payment. Participation in the Plan does not
guarantee or imply continued employment. Except as required by applicable law,
nothing in this Plan or any Executive’s Bonus Schedule is intended to create an
employment agreement with an Executive. By participating in this Plan, the
Executive agrees that his or her employment is “at-will”, and the Executive,
Kanbay or the Company (or any other Affiliate that employs the Executive) may
terminate the employment relationship at any time for any reason or no reason. Furthermore,
participation in the Plan does not guarantee payment of any Performance Bonus
amount.

 

4.3                                 Non-Payment
or Recovery. Kanbay, the Company or other Affiliate may refuse to pay a
Performance Bonus or may recover a Performance Bonus previously paid if an
error in the calculation of a Performance Bonus has resulted in an overpayment
to an Executive. If an erroneous Performance Bonus payment is to be recovered,
the Executive agrees to remit payment to Kanbay,
the Company or other Affiliate the full amount of the monies being recovered
within thirty (30) calendar days after the date of notice from Kanbay. Recovery may be made by Kanbay, the Company or other Affiliate
at any time during and after the Executive’s employment until the outstanding
balance is satisfied in full. This Section 4.3 shall continue to be in effect
after the expiration of this Plan and/or the expiration or termination of the
Executive’s employment with Kanbay,
the Company or any other Affiliate.

 

4.4                                 Amendment;
Term of Plan. The Company reserves the right to amend the Plan or any Bonus
Schedule at any time. Any amendment to the Plan will be made pursuant to a
resolution of the Board, and any amendment to a Bonus Schedule will be by
action of the Committee. The Plan will expire on December 31, 2008; provided,
however, that payment of

 

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any Performance Bonuses otherwise payable pursuant to Section 3 and not
paid by such date will occur in accordance with the terms of the Plan.

 

4.5                                 Complete
Agreement. The
terms and conditions this Plan, together with the applicable Executive’s Bonus
Schedule, constitute the complete and exclusive statement of the understanding
between Kanbay, the Company or any other
Affiliate, and each Executive, which supersedes and excludes all prior or
contemporaneous proposals, understandings, agreements or representations, oral
or written, between, Kanbay, the Company or any other
Affiliate, and each Executive, with respect to the subject matter hereof. If
there is any conflict between the terms of the applicable Bonus Schedule and
this Plan document, the terms of this Plan document will control. During the
term of this Plan, Executives will not be eligible to participate in any other
bonus or similar plan of Kanbay or other Affiliate.

 

4.6                                 Applicable
Law. Except to the extent preempted by federal law, the Plan will be
construed and administered under the laws of the State of Illinois, without
giving effect to its conflict of laws principles.

 

4.7                                 Withholding.
Kanbay, the Company or other Affiliate may withhold from any payment that it is
required to make under the Plan amounts sufficient to satisfy applicable
withholding requirements under any federal, state or local law.

 

7Exhibit 10.3

 

KANBAY
INTERNATIONAL, INC.

 

SEVERANCE
AGREEMENT

 

THIS SEVERANCE AGREEMENT
(this “Agreement”) is made and entered into by and among Kanbay International, Inc.,
a Delaware corporation (the “Company”), Kanbay Incorporated, an Illinois
corporation (“Kanbay”) and Kenneth Coppins (“Executive”) as of November 10,
2005 (the “Effective Date”).

 

WHEREAS, it is in the
best interests of Kanbay, the Company, and the Company’s stockholders to assure
Executive’s continued dedication to Kanbay and the Company; and

 

WHEREAS, any
consideration by Kanbay and the Company of strategic transactions such as
mergers and acquisitions would inevitably create personal uncertainties for
Executive, and therefore distract Executive from the business of Kanbay and the
Company; and

 

WHEREAS, it is in the
best interests of Kanbay, the Company and the Company’s stockholders to retain
Executive’s dedication and reduce distractions by providing Executive with
compensation arrangements in the event of certain terminations of Executive’s
employment, including terminations in connection with a strategic transaction,
as more fully provided herein.

 

NOW, THEREFORE, in
consideration of and reliance upon the foregoing background statement and the
covenants contained in this Agreement, and other good and valuable
consideration, the receipt and sufficiency of which is hereby acknowledged,
Kanbay, the Company and Executive agree as follows:

 

1.                                      DEFINITIONS

 

1.1           “Affiliate” shall mean any
corporation or other business entity that is a parent or subsidiary of the
Company, including ownership of 50% or more of the voting or profits interests
of the corporation or other business entity.

 

1.2           “Base Salary” shall mean the annual
Base Salary payable to Executive so long as the Company or an Affiliate employs
Executive.

 

1.3           “Board” shall mean the Board of
Directors of the Company.

 

1.4           “Cause” shall mean any of the
following: (i) Executive’s commission of a willful act (including, without
limitation, a dishonest or fraudulent act) or a grossly negligent act, or the
willful or grossly negligent omission to act by Executive, which is intended to
cause, causes or is reasonably likely to cause material harm to the Company or
an Affiliate, monetarily, reputationally or otherwise; (ii) Executive’s
commission or conviction of, or plea of nolo
contendere to, any felony or any crime or offense involving
dishonesty or fraud or that is significantly injurious to the Company or an
Affiliate, monetarily, reputationally or otherwise; (iii) Executive’s
willful neglect of or continued failure to substantially perform, in any
material respect, his duties (as assigned to Executive from time to time) or
obligations (including a violation of policy) to the Company or an Affiliate
other than any such failure resulting from his incapacity due to physical or
mental illness; or (iv) Executive’s abuse of illegal drugs or other
controlled substances or habitual intoxication. 
For purposes of this Section, an act or omission is “willful” if it was
knowingly done, or knowingly 

 

1

 

omitted to be done, by Executive not in good faith and without
reasonable belief that the act or omission was in the best interest of the
Company.  Any act, or failure to act,
based upon authority given pursuant to a resolution duly adopted by the Board
or based upon the advice of counsel for the Company shall be conclusively
presumed to be done, or omitted to be done, in good faith and in the best
interests of the Company.  The Company
has the discretion, in other circumstances, to determine in good faith, from
all the facts and circumstances reasonably available to it, whether Executive
who is under investigation for, or has been charged with, a crime will be
deemed to have committed it for purposes of this Agreement.

 

1.5           “Change
in Control” shall mean the occurrence of any one or more of the
following:

 

(a)           Any
“person” (as such term is defined in Section 3(a)(9) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) and as used in
Sections 13(d)(3) and 14(d)(2) of the Exchange Act), including a “group”
(as defined in Section 13(d)(3) of the Exchange Act), other than (i) the
Company, (ii) any wholly-owned subsidiary of the Company, or (iii) any
employee benefit plan (or related trust) sponsored or maintained by the Company
or any Affiliate, becomes a “beneficial owner” (as defined in Rule 13d-3
under the Exchange Act), directly or indirectly, of securities of the Company
having fifty percent (50%) or more of the combined voting power of the
then-outstanding securities of the Company that may be cast for the election of
directors of the Company (other than as a result of an issuance of securities
initiated by the Company in the ordinary course of business) (the “Company
Voting Securities”); provided,
however, that the event described in this Section 1.5(a) shall not be
deemed to be a Change in Control by virtue of any underwriter temporarily
holding securities pursuant to an offering of such securities;

 

(b)           During
any period of two consecutive years, individuals who at the beginning of any
such period constitute the Board (the “Incumbent Directors”) cease for any
reason to constitute at least a majority of the Board, unless the election, or
the nomination for election by the stockholders of the Company, of each new
director of the Company during such period was approved by a vote of at least
two-thirds of the Incumbent Directors then still in office;

 

(c)           As
the result of, or in connection with, any cash tender or exchange offer, merger
or other business combination, sale of all or substantially all of the assets
or contested election, or any combination of the foregoing transactions, less
than a majority of the combined voting power of the then-outstanding securities
of the Company or any successor corporation or entity entitled to vote
generally in the election of the directors of the Company or such other
corporation or entity after such transaction is held in the aggregate by the
holders of the securities of the Company entitled to vote generally in the
election of directors of the Company immediately prior to such transaction; or

 

(d)           The
stockholders of the Company approve a plan of complete liquidation of the
Company.

 

Notwithstanding
the foregoing, a Change in Control shall not be deemed to occur solely because
any person acquires beneficial ownership of more than fifty percent (50%) of
the Company Voting Securities as a result of the acquisition of Company Voting
Securities by the Company that reduces the number of Company Voting Securities
outstanding; provided, however, that if after 

 

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such acquisition by the Company such person becomes the beneficial
owner of additional Company Voting Securities that increases the percentage of
outstanding Company Voting Securities beneficially owned by such person, a
Change in Control transaction shall then occur.

 

Further
notwithstanding the
foregoing, unless a majority of the Incumbent Directors determines otherwise,
no Change in Control shall be deemed to have occurred with respect to a
particular Executive if the Change in Control results from actions or events in
which such Executive is a participant in a capacity other than solely as an
officer, employee or director of the Company or an Affiliate.

 

1.6           “Good Reason” shall mean any one of
the following events, without Executive’s written consent: (i) the
assignment to Executive of duties materially inconsistent with Executive’s
then-current level of authority or responsibilities, or any other action by the
Company or an Affiliate that results in a material diminution in Executive’s
position, compensation, authority, duties or responsibilities; (ii) a
breach by the Company or an Affiliate of any material term or covenant of any
agreement with Executive; (iii) a requirement that Executive be based at
any office or location that
is more than thirty-five (35) miles from the Executive’s principal office
location immediately preceding a Change in Control; or (iv) a
failure by any successor (whether direct or indirect by purchase, merger,
consolidation or otherwise) to all or substantially all of the business or
assets of the Company or the Affiliate employing Executive to assume expressly
and agree to perform this Agreement in the same manner and to the same extent
that the Company or an Affiliate would be required to perform it if no such
succession had taken place.  Executive must provide the Company written
notice of any claim of Good Reason within sixty (60) days after the occurrence
of any action/inaction giving rise to such claim, and the Company or its
Affiliate will have thirty (30) days to cure such claim.

 

2.                                      TERMINATIONS
OF EMPLOYMENT TRIGGERING SEVERANCE BENEFITS

 

2.1           Subject to Section 2.2, and
provided that Executive has executed a full and complete release of the Company
and its Affiliates (and their related parties) from any and all claims, in a
form prepared by the Company, the Company or an Affiliate will provide
Executive with the benefits set forth in Section 3 if Executive’s
employment is terminated for the following reasons (“Qualifying Terminations”):
(i) by the Company or an Affiliate without Cause at any time; or (ii) by
Executive for Good Reason within twelve (12) months after the effective date of
a Change in Control.

 

2.2           In no event will benefits be payable
to Executive under this Agreement in the event of termination due to Executive’s
death, disability, retirement, termination by the Company or an Affiliate for
Cause, or voluntary termination by Executive without Good Reason.

 

2.3           Notwithstanding the foregoing, the
following payments will be made upon Executive’s termination of employment for
any reason or no reason:  (i) earned
but unpaid Base Salary through the date of termination; (ii) any accrued
but unpaid vacation; (iii) any amounts payable under any employee pension
or welfare benefit plans of the Company or an Affiliate in accordance with the
terms of those plans; and (iv) unreimbursed business expenses incurred by
Executive on behalf of the Company or an Affiliate (in accordance with existing
expense reimbursement policies of the Company or an Affiliate).

 

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3.                                      TERMINATION
BENEFITS

 

3.1           Subject to the conditions set forth
in Section 2, and so long as Executive has not violated and does not
violate any of the terms of this Agreement, the following benefits shall be
paid or provided to Executive in the event Executive’s employment is terminated
in a Qualifying Termination:

 

(a)           Salary
Continuation.  The Company or an
Affiliate will pay Executive severance pay consisting of bi-weekly pay checks
in an amount based on Executive’s Base Salary on the date of termination (less
applicable deductions for federal and state taxes and FICA) for a period of six
(6) months following the date of termination.  The severance pay will be paid on regularly
scheduled pay dates.  Notwithstanding the
foregoing, no payments under this Section 3.1(a) shall commence prior
to the effective date of the release of claims being provided to the Company
and its Affiliates by Executive under Section 2.1 (including the
expiration of any revocation period required by law in connection with such
release).

 

(b)           Incentive
Plan Vesting.  All stock option
awards (“Stock Option Awards”) under the Kanbay International, Inc. Stock
Incentive Plan, or any similar or successor plan, held by Executive shall
immediately become exercisable in full, all restrictions applicable to such
Stock Option Awards shall lapse, and all performance measures with respect to
such awards shall be deemed satisfied in full.  Executive will have a period of
time following the date of termination, as stated in Kanbay
International, Inc. Stock Incentive Plan or the applicable Stock Option
Award Agreement issued thereunder, during
which Executive may exercise his Stock Option Awards, if any.  In the case of restricted stock awards (“Restricted
Stock Awards”) under the Kanbay International, Inc. Stock Incentive
Plan, or any similar or successor plan, the Executive’s next scheduled
installment of restricted stock (following the date of termination) shall
immediately vest, but all other subsequently scheduled unvested installments of
restricted stock under such Restricted Stock Award shall immediately be
forfeited and become void.  Except as specifically stated in this Section 3.1(b),
this Agreement
shall not be construed to amend, modify or supersede any of the provisions of the
Kanbay International, Inc. Stock Incentive Plan, or any similar or
successor plan, or any applicable Award Agreement issued thereunder.

 

3.2           Taxation and Withholding.  Neither the Company nor any Affiliate makes
any representations or warranties with respect to, and has no responsibility or
liability for, the personal tax consequences of this Agreement to Executive.  The Company and its Affiliates may make such
provisions and take such steps as they may deem necessary or appropriate for
the withholding of any taxes that the Company or any Affiliate is required by
any law or regulation of any governmental authority, whether federal, state or
local, domestic or foreign, to withhold in connection with this Agreement.

 

3.3           Executive’s Death.  If Executive dies before the completion of
any payments or benefits required under this Section 3, the Company or an
Affiliate will make or continue payments and benefits to Executive’s surviving
spouse, if any, or Executive’s estate in accordance with this Section.

 

4

 

4.                                      RESTRICTIVE
COVENANTS

 

4.1           Trade Secrets.  Executive acknowledges that he has had and/or
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 Executive 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 Executive
that constitutes a breach of this Section 4, generally known or available
to the public; (ii) is known to Executive at the time such information was
obtained from the Company or an Affiliate; (iii) is hereafter furnished
without restriction on disclosure to Executive 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 Executive 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, Executive
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. 
Executive will deliver promptly to the Company or the Affiliate that
employed Executive, 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.

 

4.2           Non-competition.  Beginning on the Effective Date and for a
period continuing through the later of (i) six (6) months following
termination of Executive’s employment with the Company and all Affiliates and (ii) the
period the Company or an Affiliate is making severance payments to Executive
under Section 3.1(a) (the “Restricted Period”), Executive 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 Executive’s employment.

 

4.3.          Employee Agreements.  As a condition of this Agreement and as a
condition of Executive’s employment with the Company or an Affiliate, Executive
is required to sign a separate Employee Non-Disclosure, Development and Non-Solicitation Agreement
and/or other similar agreement(s) (collectively, “Employee Agreements”).  Executive hereby reaffirms his commitment to
abide by all obligations set forth in all such Employee Agreements.  Executive further agrees that

 

5

 

any breach by Executive of any Employee Agreement shall be considered a
breach by Executive of this Agreement. 
This Agreement shall not be construed to amend, modify or terminate any
of Executive’s obligations under any Employee Agreement to the extent this
Agreement and the Employee Agreement are not inconsistent.  However, in the event of any direct conflict
between the terms of any Employee Agreement and the terms of this Agreement,
the terms of this Agreement shall govern and supersede any Employee Agreement.

 

4.4           Irreparable Harm.  Executive acknowledges that: (i) Executive’s
compliance with this Agreement is necessary to preserve and protect the
proprietary rights, Trade Secrets, and the goodwill of the Company or an
Affiliate as going concerns, and (ii) any failure by Executive to comply
with the provisions of this Agreement will result in irreparable and continuing
injury for which there will be no adequate remedy at law.  In the event that Executive fails to comply
with the terms and conditions of this Agreement, the obligations of the Company
and its Affiliates to pay the severance benefits set forth in Section 3
shall cease, and the Company or an Affiliate will be entitled, in addition to
other relief that may be proper, to all types of equitable relief (including,
but not limited to, the issuance of an injunction and/or temporary restraining
order) that may be necessary to cause Executive to comply with this Agreement,
to restore to the Company and its Affiliates their property, and to make the
Company and its Affiliates whole.

 

4.5           Survival.  The provisions set forth in this Section 4
shall survive termination of this Agreement.

 

4.6           Scope Limitations.  If the scope, period of time or area of
restriction specified in this Section 4 are or would be judged to be
unreasonable in any court proceeding, then the period of time, scope or area of
restriction will be reduced or limited in the manner and to the extent
necessary to make the restriction reasonable, so that the restriction may be
enforced in those areas, during the period of time and in the scope that are or
would be judged to be reasonable.

 

5.             MISCELLANEOUS

 

5.1           Employment Status.  Nothing herein shall be deemed to create any
term of employment, it being expressly understood and agreed between the
parties that Executive’s employment is at will and that either party may
terminate such employment at any time.

 

5.2           Governing Law.  All provisions of this Agreement will be
construed and governed by Illinois law without regard to its choice of law
principles or the laws of any other jurisdiction.  Any suit, claim or other legal proceeding
arising out of or relating to Executive’s employment, his termination from
employment, or this Agreement shall be brought exclusively in the federal or
state courts located in Cook County, Illinois, and Executive and the Company
and its Affiliates hereby submit to personal jurisdiction in the State of
Illinois and to venue in such courts. 
Notwithstanding the foregoing, the Company or an Affiliate may seek and
obtain injunctive relief against Executive in any court having jurisdiction
over Executive.

 

5.3           Severability.  Every provision of this Agreement is intended
to be severable. If any provision or portion of a provision is illegal or
invalid, then the remainder of this Agreement shall not be affected. Moreover,
any provision of this Agreement which is determined to be unreasonable,
arbitrary or against public policy shall be modified as necessary so that it is
not unreasonable, arbitrary or against public policy while maximizing the
intent of the parties.

 

6

 

5.4           Entire Agreement.  Except as provided in any non-disclosure,
non-solicitation, intellectual property or similar agreement signed by
Executive, with respect to its subject matter, this Agreement constitutes the
entire understanding of the parties superseding all prior agreements,
understandings, negotiations and discussions between them, whether written or
oral, and there are no other understandings, representations, warranties or
commitments with respect thereto. 
Notwithstanding any terms contained herein to the contrary, the Company
or its Affiliates, in addition to any rights set forth herein, shall have the
right to seek enforcement of any other penalties or restrictions that may apply
under any other non-disclosure, non-solicitation, intellectual property or
similar agreement between Executive and the Company or its Affiliates.

 

5.5           Successors and Assigns.  This Agreement may not be assigned by
Executive.  This Agreement shall be
binding upon and inure to the benefit of all successors and assigns (whether by
operation of law or otherwise) of the Company and its Affiliates.

 

5.6           Amendment. This Agreement may
only be amended or terminated by mutual written agreement between the Company
and Executive.

 

5.7.          No
Waiver.  No failure or delay by the
Company or an Affiliate or Executive in enforcing or exercising any right or
remedy hereunder shall operate as a waiver thereof.  No modification, amendment or waiver of this
Agreement nor consent to any departure by Executive from any of the terms or
conditions thereof, shall be effective unless in writing and signed by the
Chairman of the Board.  Any such waiver
or consent shall be effective only in the specific instance and for the purpose
for which given.

 

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

 

IN WITNESS WHEREOF, each
party has executed this Severance Agreement or caused this Severance Agreement
to be duly executed as of the Effective Date.

 

	
  KANBAY
  INTERNATIONAL, INC.

  	
  KENNETH
  COPPINS

  
	
   

  	
   

  
	
  By:

  	
  /s/ William F.
  Weissman

  	
   

  	
  /s/ Kenneth
  Coppins

  	
   

  
	
  Its:

  	
  Executive Vice
  President, Chief Financial

  Officer and Secretary

  	
   

  	
   

  

 

	
  KANBAY
  INCORPORATED

  
	
   

  
	
  By:

  	
  /s/ William F.
  Weissman

  	
   

  	
   

  	
   

  
	
  Its:

  	
  Executive Vice
  President, Chief Financial

  Officer and Secretary

  	
   

  	
   

  

 

7

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