Document:

Exhibit 10.4

RETENTION
AGREEMENT

THIS AGREEMENT (“Agreement”) is entered
into as of June 14, 2006, by and between Keane, Inc., a Massachusetts
corporation with its principal place of business at 100 City Square, Boston,
Massachusetts 02129 (“Keane” or the “Company”), and Laurence D. Shaw (the “Executive”).
Keane and the Executive are referred to together herein as the “Parties.”

WHEREAS, the Company, through its subsidiary
and/or affiliate Keane Australia Micropayment Consortium Pty Ltd CAN (“KAMCO”),
has contracted with the Public Transport Ticketing Body, (known as the “Transport
Ticketing Authority” or “TTA”) of Melbourne, Victoria, Australia, to provide a
public transport ticketing system for the State of Victoria, Australia (the “TTA
Contract”);

WHEREAS, to ensure clear leadership and
continuity as the Company performs under the TTA Contract, the Compensation
Committee of the Board of Directors of the Company has authorized certain
payments and benefits to the Executive, in order to assist in his retention as
certain TTA Contract-related milestones are reached;

NOW, THEREFORE, for good and valuable consideration,
the receipt and adequacy of which is hereby acknowledged, the Company and the
Executive agree as follows:

1.                           Term
of Employment. Subject to
the benefits described in paragraph 4, the Company retains the right to
terminate the employment of the Executive at any time, including, without
limitation, with or without notice and with or without Cause.

2.                           Milestones

a.                           Milestone 1. Milestone 1 will be deemed
achieved when the NTS Solution Requirements document referenced in Section 11
of the TTA Contract (titled NTS Solution Requirements Phase) has been submitted
to TTA, approved by TTA, and all associated payments made.

b.                          Milestone 2. By way of background, Section 404
of the Sarbanes-Oxley act of 2002 (SOX 404) requires that each annual report of
publicly traded companies include a report by management on the company’s
internal control over financial reporting. Management’s report, among other
items, must include management’s assessment as to the adequacy of internal
controls over financial reporting as of year-end and disclosure of any material
control weaknesses.  As part of this
process, the Company is required to review the internal control over financial
reporting within KAMCO. Milestone 2 will be deemed achieved when the Company
determines that KAMCO’s internal controls over financial reporting are adequate
and that any deficiencies are remediated to the satisfaction of the Company’s
Internal Audit department and Chief Financial Officer.

c.                           Milestone 3. Milestone 3 will be deemed
achieved when the NTS Regional and Metropolitan Implementation Phase of the TTA
Contract (Phase Date set forth in Schedule 1 [Phases] to the TTA Contract) has
been completed, approved and accepted by TTA, and all associated payments made.

3.                           Restricted Stock. Within 30 days of the effective date of this Agreement, the Executive
will be awarded 30,000 shares of restricted stock (the “Shares”), subject to
the terms and conditions of the applicable stock option plan and restricted
stock agreement.

 

a.                           In the event that the Executive ceases to be
employed by the Company for any reason or for no reason, with or without cause
(the “Employment Termination”), prior to June 15, 2011, the Company shall
have the right and option (the “Purchase Option”) to purchase from the
Executive, for the amount paid by the Executive per share (the “Option Price”),
as follows:

(i)             If the Employment Termination is effective
before Milestone 1 is achieved, the Company may exercise the Purchase Option
for 100% of the total number of Shares;

(ii)          If the Employment Termination is effective
after both Milestone 1 and Milestone 2 are achieved, but before Milestone 3 is
achieved, the Company may exercise the Purchase Option for 50% of the total
number of Shares;

(iii)       The Company’s Purchase Option shall expire
upon the earlier of either the achievement of Milestones 1, 2 and 3 or June 15,
2011.

b.                          Notwithstanding the above paragraphs 2(a) and
2(b), if the Company is subject to a Change-In-Control, as defined in the
Change-In-Control Agreement by and between the Executive and the Company, the
Company agrees to waive its Purchase Option with respect to 50% of the
then-unvested portion of the Shares.

4.                           Retention.
If, after achieving Milestone 1, the Executive’s employment is terminated by
the Company without Cause, (the effective date of any such termination being
hereinafter referred to as the “Termination Date”) the Company shall continue
to pay the Executive the base salary and targeted annual bonus (monthly on a
pro rata basis) for one year, both at the rate in effect immediately before the
Termination Date. Neither the Executive nor the Company
shall have the right to accelerate or to defer the delivery of the payments to
be made under this paragraph 4; provided, however, that if the
Executive is a “specified employee” as defined in Section 409A(a)(2)(B)(i) of
the Internal Revenue Code of 1986, as amended (the “Code”), and any of the
payments to be made to the Executive under this paragraph 4 constitute “nonqualified
deferred compensation” within the meaning of Section 409A of the Code,
then the commencement of the delivery of any such payments will be delayed to
the date that is six months after the Termination Date.

5.                            Effect
of Agreement on Change-In-Control Agreement.

a.                           Other than as set forth in paragraph 5(b) and
paragraph 5(c) below, this Agreement is not intended to modify or
supersede the Change-In-Control Agreement by and between the Executive and the
Company, which Change-In-Control Agreement shall remain in full force and
effect.

b.                          The provision in paragraph 2 of the
Change-In-Control Agreement which provides that the Executive shall be entitled
to no severance benefits other than those set forth therein is modified and
superseded to the extent additional benefits are provided to the Executive
pursuant to this Agreement.

c.                           The provision in Section 4 of the
Change-In-Control Agreement which provides for the payment of a Gross-Up
Payment (as defined therein) under certain conditions shall not apply to
payments made under this Agreement, notwithstanding the provision in Section 4(a) of
the Change-In-Control Agreement to the contrary.

6.                           Notices

a.                           Each notice, demand, consent or communication
(hereinafter “Notice”) which is or may be required to be given by any party to
the other party in connection with this Agreement shall be in writing and given
by facsimile, personal delivery, receipted delivery services, or by certified
mail, return receipt requested, prepaid and properly addressed to the other
party as shown below.

b.                          Notices shall be effective on the date sent
via facsimile, the date delivered personally or by receipted delivery service,
or three (3) days after the date mailed:

(i)             To the Company:

Legal Department

Attn: Corporate Counsel

Keane, Inc.

100 City Square

Charlestown, MA  02129

 2
 

 

(ii)          To the Executive:

At the residence address
most recently filed with the Company.

7.                           Succession
and Assignment. This
Agreement shall be binding upon and inure to the benefit of the Parties named
herein and their respective successors and permitted assigns. No Party may
assign either this Agreement or any of its rights, interests or obligations
hereunder without the prior written approval of the other Party; provided, that
Keane may assign its rights, interests or obligations hereunder to: (a) a
subsidiary, subdivision or affiliate, provided that Keane shall remain
responsible to the Executive for such obligations in the event they are not met
by such assignee; or (b) to a person, corporation, organization or other
entity that acquires (whether by stock purchase or merger or otherwise) all or
substantially all of the business or assets of Keane.

8.                           Miscellaneous.

a.                            This Agreement may be amended or modified
only by a written instrument executed by Keane and the Executive.

b.                           This Agreement shall be governed by and
construed in accordance with the internal laws (and not the laws of conflicts)
of the Commonwealth of Massachusetts.

c.                            Except in the case of Section 7 above,
the term “Keane” or the “Company” shall include Keane, Inc. and any of its
subsidiaries, subdivisions and affiliates. The captions of the sections of this
Agreement are for convenience of reference only and in no way define, limit or
affect the scope or substance of any section of this Agreement.

d.                           This Agreement may be executed in
counterparts, each of which shall be deemed to be an original but both of which
together shall constitute one and the same instrument.

e.                            The invalidity or unenforceability of any
provision of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement. If any provision of this Agreement shall
be held invalid or unenforceable in part, the remaining portion of such
provision, together with all other provisions of this Agreement, shall remain
valid and enforceable and continue in full force and effect to the fullest
extent consistent with law.

f.                             The Executive’s or the Company’s failure to
insist upon strict compliance with any provision of, or to assert any right
under, this Agreement shall not be deemed to be a waiver of such provision or
right or of any other provision of or right under this Agreement.

g.                          Keane shall have the right to withhold all
applicable income and employment taxes due with respect to any payment made to
the Executive under this Agreement.

Executed this 23rd day of June, 2006.

	
  

  	
  By:

  	
  /s/ Laurence D. Shaw

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Laurence D. Shaw

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Keane, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Phillip Harkins

  
	
   

  	
   

  	
  Phillip Harkins, Chair of the Compensation

  Committee of the Board of Directors of Keane, Inc.

  

 

 3Exhibit 10.1

 

MAXIMUS

RESTRICTED
STOCK UNITS — TERMS AND CONDITIONS

1.             Relationship
to Plan.

The award represented by this certificate has been
granted pursuant to the MAXIMUS, Inc. (“Company”) 1997 Equity Incentive
Plan, as amended (“Plan”), and is in all respects subject to the terms,
conditions and definitions of the Plan. The Employee hereby accepts this award
subject to all the terms and provisions of the Plan and agrees that all
decisions under and interpretations of the Plan by the Compensation Committee
of the Board of Directors of the Company (“Committee”), shall be final, binding
and conclusive upon the Employee and his or her heirs.

2.             Restricted
Stock Units.

Restricted Stock Units (“RSUs”) represent value
equivalent to shares of common stock of the Company (“Shares”) that are subject
to vesting restrictions. No Shares are issued with respect to unvested RSUs. As
the RSUs vest, the Employee is entitled to receive that number of Shares equal
to the number of vested RSUs.

3.             Vesting.

The RSUs hereby awarded shall vest in accordance with
the schedule set forth on the front of this certificate. The Company shall
deliver Shares to the Employee as the RSUs vest. At the sole discretion of the
Company, the vesting schedule may be subject to acceleration based on
achievement of performance criteria.

4.             Changes to Capital Structure.

At the sole discretion of the Company, appropriate
adjustments may be made in the number of RSUs covered by this award to give
effect to any stock dividends, stock splits, stock combinations,
recapitalizations and other similar changes in the capital structure of the
Company after the Grant Date.

5.             Change in Control.

Notwithstanding any provision of the Plan or these
terms and conditions to the contrary, upon a Change in Control, the
outstanding, unvested RSUs shall become fully vested. For these purposes, “Change
in Control” means the occurrence of any one or more of the following:

(a)  The “beneficial
ownership” (as defined in Rule 13d-3 of the Securities Exchange Act
of 1934 (the “Exchange Act”)) of securities representing more than twenty-five
percent (25%) of the combined voting power of the then outstanding voting
securities of the Company entitled to vote generally in the election of
directors (the “Company Voting Securities”) is accumulated, held or acquired by
a Person (as defined in Section 3(a)(9) of the Exchange Act, as
modified, and used in Sections 13(d) and 14(d) thereof) (other than
the Company, any trustee or other fiduciary holding securities under an
employee benefit plan of the Company or an Affiliate thereof, or any
corporation owned, directly or indirectly, by the Company’s stockholders in
substantially the same proportions as their ownership of stock of the Company);
provided, however, that any acquisition from the Company or any acquisition
pursuant to a transaction that complies with clauses (i), (ii) and (iii) of
subparagraph (c) of this definition will not be a Change in Control under
this subparagraph (a), and provided further, that immediately prior to such accumulation,
holding or acquisition, such Person was not a direct or indirect beneficial
owner of 25% or more of the Company Voting Securities; or

(b)  Individuals
who, as of the Award Date, constitute the Board of Directors (the “Incumbent
Board”) cease for any reason to constitute at least a majority of the Board;
provided, however, that an individual becoming a director subsequent to the
date hereof whose election, or nomination for election by the Company’s
stockholders, was approved by a vote of at least a majority of the directors
then comprising the Incumbent Board will be considered as though such
individual were a member of the Incumbent Board, but excluding, for this
purpose, any such individual whose initial assumption of office occurs as a
result of an actual or threatened election contest with respect to the election
or removal of directors or other actual or threatened solicitation of proxies
or consents by or on behalf of a Person other than the Board; or

(c)  Consummation
by the Company of a reorganization, merger or consolidation, or sale or other
disposition of all or substantially all of the assets of the Company or the
acquisition of assets or stock of another entity (a “Business Combination”), in
each case, unless immediately following such Business Combination: (i) more
than 60% of the combined voting power of then outstanding voting securities
entitled to vote generally in the election of directors of (A) the
corporation resulting from such

 

 

Business Combination (the “Surviving Corporation”), or
(B) if applicable, a corporation that as a result of such transaction owns
the Company or all or substantially all of the Company’s assets either directly
or through one or more subsidiaries (the “Parent Corporation”), is represented,
directly or indirectly, by Company Voting Securities outstanding immediately
prior to such Business Combination (or, if applicable, is represented by shares
into which such Company Voting Securities were converted pursuant to such
Business Combination), and such voting power among the holders thereof is in
substantially the same proportions as their ownership, immediately prior to
such Business Combination, of the Company Voting Securities, (ii) no
Person (excluding any employee benefit plan (or related trust) of the Company
or such corporation resulting from such Business Combination) beneficially
owns, directly or indirectly, 25% or more of the combined voting power of the
then outstanding voting securities eligible to elect directors of the Parent
Corporation (or, if there is no Parent Corporation, the Surviving Corporation)
except to the extent that such ownership of the Company existed prior to the
Business Combination, and (iii) at least a majority of the members of the
board of directors of the Parent Corporation (or, if there is no Parent
Corporation, the Surviving Corporation) were members of the Incumbent Board at
the time of the execution of the initial agreement, or of the action of the
Board, providing for such Business Combination; or

(d)  Approval by
the Company’s stockholders of a complete liquidation or dissolution of the
Company.

However, in no event will a Change in Control be
deemed to have occurred, with respect to an individual’s RSUs, if that
individual is part of a purchasing group that consummates the Change in Control
transaction. An individual will be deemed “part of a purchasing group” for
purposes of the preceding sentence if the individual is an equity participant
in the purchasing company or group (except: (i) passive ownership of less
than 2% of the stock of the purchasing company; or (ii) ownership of
equity participation in the purchasing company or group that is otherwise not
significant, as determined prior to the Change in Control by a majority of the
nonemployee continuing directors).

6.             Termination of RSUs.

If the Employee ceases
for any reason to be an employee of the Company or a subsidiary of the Company,
at any time prior to the full vesting of the RSUs hereby awarded, the unvested
RSUs shall terminate as of the Employee’s last day of employment and shall not
be subject to further vesting, and no Shares shall be issued in respect of such
terminated RSUs.

7.             Miscellaneous.

The Employee shall have no rights as a stockholder
with respect to the RSUs subject to this award until the vesting of the RSUs
and the issuance of a stock certificate for the Shares with respect to such
vested RSUs. Nothing herein contained shall impose any obligation on the
Company or any of its subsidiaries or the Employee with respect to the Employee’s
continued employment by the Company or any of its subsidiaries. The Employee
assumes full responsibility for familiarizing himself or herself with the tax
consequences of the receipt and vesting of the RSUs.

8.             Governing Law.

This award shall be subject to and construed in
accordance with the law of the Commonwealth of Virginia.

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