Document:

Exhibit 10.2

RETENTION AGREEMENT

THIS AGREEMENT (“Agreement”) is entered into on June 13, 2006, a
Massachusetts corporation with its principal place of business at 100 City
Square, Boston, Massachusetts 02129 (“Keane” or the “Company”), and Richard S.
Garnick (the “Executive”). Keane and the Executive are referred to together
herein as the “Parties.”

WHEREAS,
Brian T. Keane resigned as President and Chief Executive Officer, effective May 10,
2006;

WHEREAS,
to ensure clear leadership and continuity during the period of transition, the
Company’s Board of Directors formed an Office of the President, consisting of
John J. Leahy, Russell J. Campanello and the Executive;

WHEREAS,
in accordance with the Company’s existing succession plan, John J. Leahy has
been appointed by the Board as interim President and CEO, while it conducts a
search for a permanent CEO;

WHEREAS,
in light of these events and to assist in the Executive’s retention, the
Compensation Committee of the Board of Directors of the Company has authorized
certain payments and benefits to the Executive, in order to compensate him for
his additional duties and to assist in his retention during this transition
period.

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.                           Restricted Stock. Within 30 days of the
effective date of this Agreement, the Executive will be awarded 75,000 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 14,
2007, 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”), all or a portion of the Shares as follows:

(i)                         If the Employment Termination is effective
before December 14, 2006, the Company may exercise the Purchase Option for
100% of the total number of the then-unvested Shares;

(ii)                      If the Employment Termination is effective on
or after December 14, 2006 but before March 14, 2007, the Company may
exercise the Purchase Option for 50% of the total number of the then-unvested
Shares;

(iii)                   If the Employment Termination is effective on
or after March 14, 2007 but before June 14, 2007, the Company may
exercise the Purchase Option for 25% of the total number of the then-unvested
Shares; and

(iv)                  The Company’s Purchase Option shall expire on
June 14, 2007.

 

b.              Notwithstanding the above paragraph 2(a), if the
Executive is terminated without Cause prior to June 14, 2007, the Company
agrees to waive its Purchase Option with respect to the unvested portion of the
Shares. For the purpose of this paragraph 2(a), “Cause” shall have the same
meaning as set forth in the Employment Agreement by and between the Executive
and the Company.

c.               Notwithstanding
the above paragraphs 2(a) and 2(b), if the Company is subject to a
Change-In-Control, as defined in the Employment 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.

3.                           Compensation. From May 10,
2006 until such time as a permanent CEO is appointed and begins employment with
the Company, the Executive shall receive $30,000 per month over and above all
other compensation to which the Executive is entitled. The additional
compensation described in this paragraph 3 shall not constitute, nor should it
be construed as, an adjustment to the Executive’s base salary.   

4.                           Retention. If, prior to
the later of (i) nine months of the date of this Agreement or (ii) the
ninetieth day following the appointment and employment of a permanent CEO other
than the Executive (the “Transition Period”), the Executive’s employment is
terminated by the Company without Cause, or within the 30 day period following
the last day of the Transition Period by the Executive for any reason, (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. Notwithstanding the foregoing, if the Executive (during the  term of this agreement and prior to the
Termination Date) fails to (a)  work in good faith with the Board of Directors
or any committee thereof, (b)  perform his reasonably assigned duties for
the Company in any material respect, or (c) cooperate with  the other members of the Office of the
President in the performance of the duties of such office or otherwise, and the
Board of Directors notifies the Executive in writing promptly after the
occurrence of such failure and in no event 
more than 30 days after the Termination Date that the Company intends to
deny the executive the benefits of this paragraph 4 in reliance on such
failure, then, the Executive shall not be entitled to the  benefits of this paragraph 4. For the
avoidance of doubt, the Executive shall not be entitled to any payments under
this paragraph 4 in the event that the Executive is the person appointed as
permanent CEO of the Company. 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 Employment 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 Employment Agreement by and between the Executive and the
Company, which Employment Agreement shall remain in full force and effect.

b.                          The provision in Section 7(b) of
the Employment 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 8(b) of
the Employment 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 8(b)(i) of
the Employment 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.

 2
 

 

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

(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.

 3
 

 

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/ RICHARD S.
  GARNICK

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  Richard S. Garnick

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  Keane, Inc.

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ PHILLIP
  HARKINS

  
	
   

  	
   

  	
  Phillip Harkins, Chair of the Compensation

  Committee of the Board of Directors of Keane, Inc.

  

 

 4Exhibit 10.3

RETENTION AGREEMENT

THIS AGREEMENT (“Agreement”) is entered into on June 13, 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 John J. Leahy (the “Executive”). Keane and the Executive
are referred to together herein as the “Parties.”

WHEREAS,
Brian T. Keane resigned as President and Chief Executive Officer, effective May 10,
2006;

WHEREAS,
to ensure clear leadership and continuity during the period of transition, the
Company’s Board of Directors formed an Office of the President, consisting of
Richard S. Garnick, Russell J. Campanello and the Executive;

WHEREAS,
in accordance with the Company’s existing succession plan, the Executive has
been appointed by the Board as interim President and CEO, while it conducts a
search for a permanent CEO;

WHEREAS,
in light of these events and to assist in the Executive’s retention, the
Compensation Committee of the Board of Directors of the Company has authorized
certain payments and benefits to the Executive, in order to compensate him for
his additional duties and to assist in his retention during this transition
period.

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.                           Restricted Stock. Within 30 days of the
effective date of this Agreement, the Executive will be awarded 75,000 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 14,
2007, 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”), all or a portion of the Shares as follows:

(i)                         If the Employment Termination is effective
before December 14, 2006, the Company may exercise the Purchase Option for
100% of the total number of the then-unvested Shares;

(ii)                      If the Employment Termination is effective on
or after December 14, 2006 but before March 14, 2007, the Company may
exercise the Purchase Option for 50% of the total number of the then-unvested
Shares;

(iii)                   If the Employment Termination is effective on
or after March 14, 2007 but before June 14, 2007, the Company may
exercise the Purchase Option for 25% of the total number of the then-unvested
Shares; and

(iv)                  The Company’s Purchase Option shall expire on
June 14, 2007.

b.              Notwithstanding
the above paragraph 2(a), if the Executive is terminated without Cause prior to
June 14, 2007, the Company agrees to waive its Purchase Option with
respect to the unvested portion of the Shares. For the purpose of this
paragraph 2(a), “Cause” shall have the same meaning as set forth in the
Change-In-Control Agreement by and between the Executive and the Company.

c.               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.

3.                            Compensation.

a.               From May 10,
2006 until such time as a permanent CEO is appointed and begins employment with
the Company, the Executive shall receive $30,000 per month over and above all
other compensation to which the Executive is entitled. The additional
compensation described in this

 

paragraph
3.a shall not constitute, nor should it be construed as, an adjustment to the
Executive’s base salary. 

b.              In addition,
from May 10, 2006 and through the period in which the Executive is acting
as Interim President and CEO, the Executive’s base salary shall be increased to
$525,000 and his target annual bonus shall be increased to 100% of base salary.
The additional compensation described in this paragraph 3.b shall constitute an
adjustment to the Executive’s base salary for purposes of paragraph 4.

4.                           Retention. If, prior to
the later of (i) nine months of the date of this Agreement or (ii) the
ninetieth day following the appointment and employment of a permanent CEO other
than the Executive (the “Transition Period”), the Executive’s employment is
terminated by the Company without Cause, or within the 30 day period following
the last day of the Transition Period by the Executive for any reason, (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. Notwithstanding the foregoing, if the Executive (during the  term of this Agreement and prior to the
Termination Date) fails to (a)  work in good faith with the Board of
Directors or any committee thereof, (b)  perform his reasonably assigned
duties for the Company in any material respect, or (c) cooperate with  the other members of the Office of the
President in the performance of the duties of such office or otherwise, and the
Board of Directors notifies the Executive in writing promptly after the
occurrence of such failure and in no event 
more than 30 days after the Termination Date that the Company intends to
deny the executive the benefits of this paragraph 4 in reliance on such
failure, then, the Executive shall not be entitled to the  benefits of this paragraph 4. For the
avoidance of doubt, the Executive shall not be entitled to any payments under
this paragraph 4 in the event that the Executive is the person appointed as
permanent CEO of the Company. 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.

 2
 

 

100 City Square

Charlestown, MA  02129

(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/ John J. Leahy

  
	
   

  	
   

  	
  John J. Leahy

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Keane, Inc.

  
	
   

  
	
   

  
	
   

  	
  By:

  	
  /s/ Phillip Harkins

  
	
   

  	
   

  	
  Phillip Harkins, Chair of the Compensation

  Committee of the Board of Directors of Keane, Inc.

  

 

 3

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