Document:

Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of October 20, 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 Aurora M. Coya (the “Executive”). 
Keane and the Executive are referred to together herein as the “Parties.”

WHEREAS,
Keane has offered employment to the Executive in the position of Senior Vice
President, Global Practices, and the Executive has accepted, both Parties
desire to set forth in a written agreement the terms and conditions of the
Executive’s employment by and services to the Company;

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.               Effective Date. The Effective Date of this Agreement is October
2, 2006.

2.               Employment Period. 
Subject to the benefits described in Section 6, 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.

3.               Position and Duties.

a.                                       During her employment with Keane, the
Executive shall serve as with the duties and responsibilities customarily
assigned to the position of Senior Vice President, Global Practices, and such
other duties and responsibilities as the Board of Directors (the “Board”) or
the Chief Executive Officer of the Company shall from time to time assign to
the Executive.  The Executive shall
report directly to the Chief Executive Officer of the Company.

b.                                      During her employment with Keane, and
excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive shall devote her full business attention and time to
the business and affairs of Keane and shall use her best efforts to carry out
such responsibilities faithfully and efficiently, and in accordance with Keane
policy and procedures. Subject to Company approval where required by applicable
policy, it shall not be considered a violation of the foregoing for the
Executive to (a) serve on corporate, civic or charitable boards or committees,
(b) deliver lectures, fulfill speaking engagements or teach at educational
institutions and (c) manage personal investments, so long as such activities do
not materially interfere with the performance of the Executive’s
responsibilities as an employee of Keane in accordance with this Agreement.

 

 

c.                                       The Executive shall be considered an officer
of the Company.  As such, she shall be
entitled to indemnification and other related protections, as described in
Article VI of the Company’s Restated Articles of Organization.  These protections include, but are not
limited to, coverage under Keane’s Directors & Officers Liability insurance
policy.

 

4.               Compensation and Benefits 

a.                                       Base Salary. As compensation for the Executive’s services hereunder during the
Employment Period, the Company shall pay to the Executive an annual salary (the
“Base Salary”) of not less than $350,000.

b.                                      Annual Bonus.

(i)                                     For each fiscal year, beginning in fiscal
year 2007, the Executive shall be eligible for an annual bonus (the “Annual
Bonus”).  The target amount of the Annual
Bonus (“Bonus Target”) will be 70% of the annual Base Salary.  The actual amount of each year’s Annual Bonus
may be less than the Bonus Target or up to 150% of the Bonus Target, depending
upon certain performance measures.  The
precise amount of the Annual Bonus shall be determined by the Chief Executive
Officer subject to approval by the Compensation Committee of the Board. Annual
Bonuses are not earned until the close of business on the last business day of
Keane’s fiscal year, are based on fiscal year performance and are generally
paid in March or April of the following year, subject to the condition
precedent that the Executive is employed on the date the Annual Bonus is paid.

(ii)                                  For 2006, the Executive shall receive an Annual
Bonus, subject to the condition precedent described in Section 4.b(i), as follows:

(1)                                  75% of the annual bonus earned under the
Incentive Compensation Plan in effect immediately before the Executive accepted
her new position, subject to the terms and conditions of that Plan; and

(2)                                  No less than $61,250, which amount reflects a
guaranteed payment of the 2007 Bonus Target, prorated to reflect the amount of
time the Executive is employed by Keane as Senior Vice President, Global
Practices.

c.                                       Stock.

(i)                                     Within thirty (30) days of the Effective
Date, the Executive will be awarded 50,000 shares of restricted stock, subject
to the terms and conditions of the applicable stock option plan and restricted
stock agreement (the “Shares”).

(ii)                                  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 October 3, 2008, 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:

 

(1)                                  If the Employment Termination is effective
before October 3, 2007, the Company may exercise the Purchase Option for 100%
of the Shares;

(2)                                  If the Employment Termination is effective on
or after October 3, 2007, but before October 3, 2008, the Company may exercise
the Purchase Option for 50% of the Shares; and

(3)                                  The Company’s Purchase Option shall expire on
October 3, 2008.

(iii)                               Notwithstanding the above Section 4.c.ii, if
the Executive is terminated without Cause (as defined in Section 5.a, below)
prior to October 3, 2008, the Company agrees to waive its Purchase Option with
respect to the Shares.

(iv)                              Notwithstanding the above Section 4.c.ii, if
the Company is subject to a Change-In-Control, as defined in Exhibit A to this
Agreement, the Company agrees to waive its Purchase Option with respect to 50%
of the then-unvested portion of the Shares.

d.                                      Benefits. During her employment with Keane, the Executive shall be entitled to
receive employee benefits (including without limitation medical, life insurance
and other welfare benefits and benefits under retirement and savings plans),
Company-provided parking and paid vacation, in each case to the same extent as,
and on the same terms and conditions as, other similarly situated senior
executives of the Company from time to time.

e.                                       Expenses. The Executive shall be entitled to receive prompt reimbursement for
all reasonable expenses incurred by the Executive during her employment with
Keane in carrying out her duties under this Agreement, provided that the
Executive complies with the policies, practices and procedures of the Company
for submission of expense reports, receipts, or similar documentation of such
expenses.

5.               Employment Termination.  The
Executive’s employment pursuant to this Agreement may be terminated as follows:

a.                                       For Cause. 
At the election of Keane, for “Cause”, immediately upon written notice
by Keane to the Executive.  For the
purposes of this Agreement, “Cause” for termination shall mean and shall be limited
to:

 

(i)                                     Wrongful
misappropriation of the funds or property of the Company;

(ii)                                  Use of alcohol or illegal drugs interfering
with the performance of the Executive’s obligations, continuing after written
warning of such actions;

(iii)                               Commission of a felony, or of any crime
involving moral turpitude, dishonesty, theft or unethical conduct;

(iv)                              Commission of any willful, intentional or
grossly negligent act which would reasonably be expected to materially injure
the reputation, business or business relationships of the Company or which
would bring the Executive or the Company into disrepute, or the willful
commission of any act which is a breach of the Executive’s fiduciary duties to
the Company;

(v)                                 The deliberate or willful failure by the
Executive (other than by reason of the Executive’s physical or mental illness,
incapacity or disability) to substantially perform her duties with the Company
and the continuation of such failure for a period of 30 days after delivery by
the Company to the Executive of Notice specifying the scope and nature of such
failure and the Company’s intention to terminate the Executive for Cause;

(vi)                              Commission of any act which constitutes a
material breach of the policies of the Company, including but not limited to
the disclosure of any confidential information or trade secrets pertaining to
the Company or any of its clients; or

(vii)                           Commission of any dishonest act or the making
of any dishonest or intentionally misleading statement relating to the business
of the Company.

b.                                      Following a Change-In-Control.  At the election of Keane, without Cause or at
the election of the Executive, for “Good Reason,” following a Change In Control
(as defined in Exhibit A to this Agreement).  
For purposes of this Agreement, Good Reason shall mean and be limited
to:

(i)                                     The Executive’s title, duties, status,
reporting relationship, authority or responsibilities have been materially and
adversely affected; or

(ii)                                  The Executive’s compensation, including Base
Salary and Bonus Target, has been reduced by 10% or greater; or

(iii)                               If the Executive’s principal place of employment immediately prior to
the Change in Control is relocated to a location more than 25 miles from such
place of employment.

 

c.                                       In the Event of
Death or Disability.  As used in this
Agreement, the term “disability” shall mean the inability of the Executive, due
to a physical or mental disability, for a period of 180 days, whether or not
consecutive, during any 360-day period to perform the services contemplated
under this Agreement.  A determination of
disability shall be made by a physician satisfactory to both the Executive and
Keane, provided that if the Executive and Keane do not agree on a physician,
the Executive and Keane shall each select a physician and these two together shall
select a third physician, whose determination as to disability shall be binding
on all parties;

d.                                      At the election of Keane without Cause, upon
not less than 90 days’ prior written notice of termination; or

e.                                       At the election of the Executive upon not
less than 90 days’ prior written notice of termination.

6.               Effect of Employment Termination 

a.                                       For Cause. 
If the Executive’s employment is terminated by Keane for Cause pursuant
to Section 5.a, Keane shall pay to the Executive the compensation and benefits
otherwise payable to her through the last day of her actual employment by
Keane.

b.                                      Following a Change in Control.  If the Executive’s employment is terminated
by the Company without Cause, as defined in Section 5.a, or by the Executive
for Good Reason, as defined in Section 5.b, within one year following a Change
in Control (the effective date of any such termination being hereinafter
referred to as the “CIC Termination Date”), the Executive shall be entitled to
the following severance benefits (and no others):

(i)                                     For a period of twelve (12) months following
the CIC Termination Date (the “Salary Continuation Period”), the Company shall
continue to pay the Executive the base salary and targeted annual bonus
(monthly on a pro rata basis), both at the rate in effect immediately before
the CIC Termination Date, except that in the case of a termination by the
Executive for Good Reason, disregarding any reduction thereof that was the
basis for such termination.

(ii)                                  The CIC Termination Date shall be treated as
a qualifying event under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”).   Under COBRA, if the Executive is covered by
the group medical and/or dental plan offered by Keane, the Executive and her
spouse and dependents are entitled to elect a temporary extension of health
and/or dental coverage at group rates in certain instances where coverage under
the plan would otherwise end (“Continuation Coverage”).  If the Executive elects Continuation Coverage
under COBRA, during the period of such Continuation Coverage, the Executive
will be responsible for any

 

contribution required
from active employees of the Company under the applicable group medical and/or
dental plan.

 

(iii)                               During the Salary Continuation Period, the
Executive shall be entitled to continue participation in the executive
financial planning benefit in effect as of the CIC Termination Date.

The
Executive shall give the Company Notice of termination specifying which of the
foregoing provisions is applicable and the factual basis therefor, and if the
Company fails to remedy such material failure, the Executive’s last day of
actual employment with Keane shall be the 30th business day after such Notice
is given or such other date as the Company and the Executive shall agree.

c.                                       In the Event of Death or Disability.  If the Executive’s employment is terminated
by death or because of disability pursuant to Section 5.c, Keane shall pay to
the estate of the Executive or to the Executive, as the case may be, the
compensation which would otherwise be payable to the Executive up to the end of
the month in which the termination of her employment because of death or
disability occurs.

d.                                      At the Election of Keane without Cause.  If the Executive’s employment is terminated
by Keane without Cause (as defined in Section 5.a) pursuant to Section 5.d:

(i)                                     Keane shall continue to pay the Executive her
Base Salary, for twelve (12) months, plus any portion of the 90-day notice
period described in Section 5.d that is not provided to the Executive; and

(ii)                                  The last day of the Executive’s actual
employment with Keane shall be treated as a qualifying event under the
Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”), and the Executive
will receive COBRA information under separate cover.  If the Executive elects Continuation Coverage
under COBRA, during the period the Executive is receiving base salary
continuation payments under this Section 6, she will be responsible for any
contribution required from active employees of the Company under said health
insurance program.

e.                                       Receipt of severance benefits is conditioned
on Executive’s execution and delivery of a separation agreement including a
general release of claims, in a form acceptable to the Company, and on
Executive’s strict compliance with the provisions of any agreement between the
Executive and Keane pertaining to trade secrets, confidential information,
works made for hire and inventions, competition, solicitation, hiring, and the
return of Company property.

 

f.                                         At the Election of the Executive.  If the Executive elects to terminate her
employment other than for Good Reason following a Change In Control, in
accordance with Section 5.e, Keane shall pay to the Executive the compensation
and benefits otherwise payable to her through the last day of his actual
employment by Keane.

7.               Limitations on Payment of Benefits.

a.                                       Neither the Executive nor Keane shall have
the right to accelerate or to defer the delivery of the payments to be made
under this Agreement; 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 Agreement 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 last day of the Executive’s actual employment with Keane.

b.                                      Gross-Up Payment.

(i)                                     Anything in this or any other Agreement to
the contrary notwithstanding, in the event an Executive becomes entitled to any
benefits or payments under this Agreement or under any other agreement, plan or
arrangement to which the Company and the Executive are parties, including any
non-cash benefit or deferred payment or benefit (the “Total Benefits”), which
will be subject to a tax imposed by Section 4999 of the Code (the “Excise Tax”)
due to classification as an excess parachute payment in accordance with Section
280G of the Code, the Company shall pay to her an additional amount (the “Gross-Up
Payment”) such that the net amount retained by him, after reduction of any
Excise Tax on the Total Benefits and any federal, state and local income tax,
Excise Tax and FICA and Medicare withholding taxes upon the payment provided
for by this Section, shall be equal to the Total Benefits.  For purposes of this Gross-Up Payment, the
amount of the Excise Tax (if any) imposed on any non-cash benefits or any
deferred payment or benefit shall be reasonably determined by the Company,
after consultation with its legal and tax advisors.

(ii)                                  For purposes of determining the amount of the
Gross-Up Payment, an Executive shall be deemed to pay federal income taxes at
the highest marginal rate of federal income taxation in the calendar year in
which the Gross-Up Payment is to be made and state and local income taxes at
the highest marginal rate of taxation in the state and locality of her
residence on the Termination Date, net of the reduction in federal income taxes
which could be obtained from deduction of such state and local taxes
(calculated by assuming that any reduction under Section 68 of the Code in the
amount of itemized deductions allowable to

 

her applies first to
reduce the amount of such state and local income taxes that would otherwise be
deductible by her).

 

(iii)                               In the event that the Excise Tax is
subsequently determined to be less than the amount taken into account for
purposes of calculating the Gross-Up Payment, the Executive shall promptly
repay to the Company the portion of the Gross-Up Payment attributable to such
reduction (plus that portion of the Gross-Up Payment attributable to the Excise
Tax, federal, state and local income taxes and FICA and Medicare withholding
taxes imposed on the portion of the Gross-Up Payment being repaid by her to the
extent that such repayment results in a reduction in Excise Tax, FICA and
Medicare withholding taxes and/or federal, state or local income taxes) plus
interest on the amount of such repayment at the rate provided in Section
1274(b)(2)(B) of the Code.

(iv)                              In the event that the Excise Tax is
determined to exceed the amount taken into account hereunder, the Company shall
make an additional Gross-Up Payment to him in respect of such excess (plus any
interest, penalties or additions payable by her with respect to such excess) at
the time that the amount of such excess is finally determined.

(v)                                 The Gross Up Payment shall be made within two
and a half months after the last day of the Executive’s actual employment with
Keane; provided, however, that if the Executive is a “specified employee” as
defined in Section 409A(a)(2)(B)(i) of Code and any of the payments to be made
to the Executive under this Section 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 by six months.

(vi)                              The intent of this Section 7.b is to make the
Executive whole, to the extent allowed under applicable laws and regulations,
such that she is not detrimentally impacted by the imposition of a tax over and
above the marginal rate applicable to her Keane-related earnings as a result of
a Change In Control.

8.               Obligations and Restrictive Covenants.

All obligations and
restrictive covenants as set forth in any existing or future employment
agreements, stock option agreements, codes of conduct, or the like, shall
remain in full force and effect notwithstanding this Agreement, including but
not limited to, provisions and/or restrictions relating to trade secrets,
confidential information, works made for hire and inventions, competition,
solicitation, hiring, Company property, et cetera, except that any and all such
obligations and restrictive covenants shall remain in full force and effect for
the entire Salary Continuation Period notwithstanding any shorter period set
forth therein.

 

9.               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

(ii)
                               To the Executive:

At
the residence address most recently filed with the Company.

10.         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.

11.         Miscellaneous.

a.                                       This Agreement may be amended or modified
only by a written instrument executed by Keane and the Executive.  Notwithstanding anything herein to the
contrary, to the extent that the Executive or Keane reasonably believe that
Section 409A of the Code will result in adverse tax consequences to the
Executive as a result of this Agreement, then the Executive and Keane shall
renegotiate this Agreement in good faith in order to minimize or eliminate such
tax consequences and retain the basic after-tax economics of this Agreement for
the Executive to the extent possible.

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 10, 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 19th day of October, 2006.

 

	
  

  	
  By:

  
	
   

  	
   

  
	
   

  	
    /s/
  Aurora M. Coya

  	
   

  
	
   

  	
    Aurora
  M. Coya

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Keane, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Russell J.
  Campanello

  	
   

  
	
   

  	
   

  
	
   

  	
    Russell
  J. Campanello, Sr. Vice President,

  
	
   

  	
   Human
  ResourcesExhibit 10.2

EMPLOYMENT AGREEMENT

THIS
EMPLOYMENT AGREEMENT (“Agreement”) is entered into as of October 20, 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 M. Glenn Giles (the “Executive”). 
Keane and the Executive are referred to together herein as the “Parties.”

WHEREAS,
Keane has offered employment to the Executive in the position of Senior Vice
President, North American Regions and Verticals, and the Executive has
accepted, both Parties desire to set forth in a written agreement the terms and
conditions of the Executive’s employment by and services to the Company;

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.               Effective Date. The Effective Date of this Agreement is October
2, 2006.

2.               Employment Period. 
Subject to the benefits described in Section 6, 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.

3.               Position and Duties.

a.                                       During his employment with Keane, the
Executive shall serve as with the duties and responsibilities customarily
assigned to the position of Senior Vice President, North American Regions and
Verticals, and such other duties and responsibilities as the Board of Directors
(the “Board”) or the Chief Executive Officer of the Company shall from time to
time assign to the Executive.  The
Executive shall report directly to the Chief Executive Officer of the Company.

b.                                      During his employment with Keane, and
excluding any periods of vacation and sick leave to which the Executive is
entitled, the Executive shall devote his full business attention and time to
the business and affairs of Keane and shall use his best efforts to carry out
such responsibilities faithfully and efficiently, and in accordance with Keane
policy and procedures. Subject to Company approval where required by applicable
policy, it shall not be considered a violation of the foregoing for the
Executive to (a) serve on corporate, civic or charitable boards or committees,
(b) deliver lectures, fulfill speaking engagements or teach at educational
institutions and (c) manage personal investments, so long as such activities do
not materially interfere with the performance of the Executive’s
responsibilities as an employee of Keane in accordance with this Agreement.

 

c.                                       The Executive
shall be considered an officer of the Company. 
As such, he shall be entitled to indemnification and other related
protections, as described in Article VI of the Company’s Restated Articles of
Organization.  These protections include,
but are not limited to, coverage under Keane’s Directors & Officers
Liability insurance policy.

4.               Compensation and Benefits 

a.                                       Base Salary. As compensation for the Executive’s services hereunder during the
Employment Period, the Company shall pay to the Executive an annual salary (the
“Base Salary”) of not less than $350,000.

b.                                      Annual Bonus.

(i)                                     For each fiscal year, beginning in fiscal
year 2007, the Executive shall be eligible for an annual bonus (the “Annual
Bonus”).  The target amount of the Annual
Bonus (“Bonus Target”) will be 70% of the annual Base Salary.  The actual amount of each year’s Annual Bonus
may be less than the Bonus Target or up to 150% of the Bonus Target, depending
upon certain performance measures.  The
precise amount of the Annual Bonus shall be determined by the Chief Executive
Officer subject to approval by the Compensation Committee of the Board. Annual
Bonuses are not earned until the close of business on the last business day of
Keane’s fiscal year, are based on fiscal year performance and are generally
paid in March or April of the following year, subject to the condition
precedent that the Executive is employed on the date the Annual Bonus is paid.

(ii)                                  For 2006, the Executive shall receive an Annual
Bonus, subject to the condition precedent described in Section 4.b(i), as
follows:

(1)                                  75% of the annual bonus earned under the
Incentive Compensation Plan in effect immediately before the Executive accepted
his new position, subject to the terms and conditions of that Plan; and

(2)                                  No less than $61,250, which amount reflects a
guaranteed payment of the 2007 Bonus Target, prorated to reflect the amount of
time the Executive is employed by Keane as Senior Vice President, North
American Regions and Verticals.

c.                                       Stock.

(i)                                     Within thirty (30) days of the Effective
Date, the Executive will be awarded 50,000 shares of restricted stock, subject
to the terms and conditions of the applicable stock option plan and restricted
stock agreement (the “Shares”).

 

(ii)                                  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 October 3, 2008, 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:

(1)                                  If the Employment Termination is effective
before October 3, 2007, the Company may exercise the Purchase Option for 100%
of the Shares;

(2)                                  If the Employment Termination is effective on
or after October 3, 2007, but before October 3, 2008, the Company may exercise
the Purchase Option for 50% of the Shares; and

(3)                                  The Company’s Purchase Option shall expire on
October 3, 2008.

(iii)                               Notwithstanding the above Section 4.c.ii, if
the Executive is terminated without Cause (as defined in Section 5.a, below)
prior to October 3, 2008, the Company agrees to waive its Purchase Option with
respect to the Shares.

(iv)                              Notwithstanding the above Section 4.c.ii, if
the Company is subject to a Change-In-Control, as defined in Exhibit A to this
Agreement, the Company agrees to waive its Purchase Option with respect to 50%
of the then-unvested portion of the Shares.

d.                                      Benefits. During his employment with Keane, the Executive shall be entitled to
receive employee benefits (including without limitation medical, life insurance
and other welfare benefits and benefits under retirement and savings plans),
Company-provided parking and paid vacation, in each case to the same extent as,
and on the same terms and conditions as, other similarly situated senior
executives of the Company from time to time.

e.                                       Expenses. The Executive shall be entitled to receive prompt reimbursement for
all reasonable expenses incurred by the Executive during his employment with
Keane in carrying out his duties under this Agreement, provided that the
Executive complies with the policies, practices and procedures of the Company
for submission of expense reports, receipts, or similar documentation of such
expenses.

5.               Employment Termination.  The
Executive’s employment pursuant to this Agreement may be terminated as follows:

a.                                       For Cause. 
At the election of Keane, for “Cause”, immediately upon written notice
by Keane to the Executive.  For the
purposes of this Agreement, “Cause” for termination shall mean and shall be
limited to:

 

(i)                                     Wrongful
misappropriation of the funds or property of the Company;

(ii)                                  Use of alcohol or illegal drugs interfering
with the performance of the Executive’s obligations, continuing after written
warning of such actions;

(iii)                               Commission of a felony, or of any crime
involving moral turpitude, dishonesty, theft or unethical conduct;

(iv)                              Commission of any willful, intentional or
grossly negligent act which would reasonably be expected to materially injure
the reputation, business or business relationships of the Company or which
would bring the Executive or the Company into disrepute, or the willful
commission of any act which is a breach of the Executive’s fiduciary duties to
the Company;

(v)                                 The deliberate or willful failure by the
Executive (other than by reason of the Executive’s physical or mental illness,
incapacity or disability) to substantially perform his duties with the Company
and the continuation of such failure for a period of 30 days after delivery by
the Company to the Executive of Notice specifying the scope and nature of such
failure and the Company’s intention to terminate the Executive for Cause;

(vi)                              Commission of any act which constitutes a
material breach of the policies of the Company, including but not limited to
the disclosure of any confidential information or trade secrets pertaining to
the Company or any of its clients; or

(vii)                           Commission of any dishonest act or the making
of any dishonest or intentionally misleading statement relating to the business
of the Company.

b.                                      Following a Change-In-Control.  At the election of Keane, without Cause or at
the election of the Executive, for “Good Reason,” following a Change In Control
(as defined in Exhibit A to this Agreement).  
For purposes of this Agreement, Good Reason shall mean and be limited
to:

(i)                                     The Executive’s title, duties, status,
reporting relationship, authority or responsibilities have been materially and
adversely affected; or

(ii)                                  The Executive’s compensation, including Base
Salary and Bonus Target, has been reduced by 10% or greater; or

(iii)                               If the Executive’s principal place of employment immediately prior to
the Change in Control is relocated to a location more than 25 miles from such
place of employment.

 

c.                                       In the Event of
Death or Disability.  As used in this
Agreement, the term “disability” shall mean the inability of the Executive, due
to a physical or mental disability, for a period of 180 days, whether or not
consecutive, during any 360-day period to perform the services contemplated
under this Agreement.  A determination of
disability shall be made by a physician satisfactory to both the Executive and
Keane, provided that if the Executive and Keane do not agree on a physician,
the Executive and Keane shall each select a physician and these two together
shall select a third physician, whose determination as to disability shall be
binding on all parties;

d.                                      At the election of Keane without Cause, upon
not less than 90 days’ prior written notice of termination; or

e.                                       At the election of the Executive upon not
less than 90 days’ prior written notice of termination.

6.               Effect of Employment Termination 

a.                                       For Cause. 
If the Executive’s employment is terminated by Keane for Cause pursuant
to Section 5.a, Keane shall pay to the Executive the compensation and benefits
otherwise payable to him through the last day of his actual employment by
Keane.

b.                                      Following a Change in Control.  If the Executive’s employment is terminated
by the Company without Cause, as defined in Section 5.a, or by the Executive
for Good Reason, as defined in Section 5.b, within one year following a Change
in Control (the effective date of any such termination being hereinafter
referred to as the “CIC Termination Date”), the Executive shall be entitled to
the following severance benefits (and no others):

(i)                                     For a period of twelve (12) months following
the CIC Termination Date (the “Salary Continuation Period”), the Company shall
continue to pay the Executive the base salary and targeted annual bonus
(monthly on a pro rata basis), both at the rate in effect immediately before
the CIC Termination Date, except that in the case of a termination by the
Executive for Good Reason, disregarding any reduction thereof that was the
basis for such termination.

(ii)                                  The CIC Termination Date shall be treated as
a qualifying event under the Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”).   Under COBRA, if the Executive is covered by
the group medical and/or dental plan offered by Keane, the Executive and his
spouse and dependents are entitled to elect a temporary extension of health
and/or dental coverage at group rates in certain instances where coverage under
the plan would otherwise end (“Continuation Coverage”).  If the Executive elects Continuation Coverage
under COBRA, during the period of such Continuation Coverage, the Executive
will be responsible for any

 

contribution required from active employees of the
Company under the applicable group medical and/or dental plan.

(iii)                               During the Salary Continuation Period, the
Executive shall be entitled to continue participation in the executive
financial planning benefit in effect as of the CIC Termination Date.

The
Executive shall give the Company Notice of termination specifying which of the
foregoing provisions is applicable and the factual basis therefor, and if the
Company fails to remedy such material failure, the Executive’s last day of
actual employment with Keane shall be the 30th business day after such Notice
is given or such other date as the Company and the Executive shall agree.

c.                                       In the Event of Death or Disability.  If the Executive’s employment is terminated
by death or because of disability pursuant to Section 5.c, Keane shall pay to
the estate of the Executive or to the Executive, as the case may be, the
compensation which would otherwise be payable to the Executive up to the end of
the month in which the termination of his employment because of death or
disability occurs.

d.                                      At the Election of Keane without Cause.  If the Executive’s employment is terminated
by Keane without Cause (as defined in Section 5.a) pursuant to Section 5.d:

(i)                                     Keane shall continue to pay the Executive his
Base Salary, for twelve (12) months, plus any portion of the 90-day notice
period described in Section 5.d that is not provided to the Executive; and

(ii)                                  The last day of the Executive’s actual
employment with Keane shall be treated as a qualifying event under the
Consolidated Omnibus Reconciliation Act of 1985 (“COBRA”), and the Executive
will receive COBRA information under separate cover.  If the Executive elects Continuation Coverage
under COBRA, during the period the Executive is receiving base salary
continuation payments under this Section 6, he will be responsible for any
contribution required from active employees of the Company under said health
insurance program.

e.                                       Receipt of severance benefits is conditioned
on Executive’s execution and delivery of a separation agreement including a
general release of claims, in a form acceptable to the Company, and on
Executive’s strict compliance with the provisions of any agreement between the
Executive and Keane pertaining to trade secrets, confidential information,
works made for hire and inventions, competition, solicitation, hiring, and the
return of Company property.

 

f.                                         At the
Election of the Executive.  If the
Executive elects to terminate his employment other than for Good Reason
following a Change In Control, in accordance with Section 5.e, Keane shall pay
to the Executive the compensation and benefits otherwise payable to him through
the last day of his actual employment by Keane.

7.               Limitations on Payment of Benefits.

a.                                       Neither the Executive nor Keane shall have
the right to accelerate or to defer the delivery of the payments to be made
under this Agreement; 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 Agreement 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 last day of the Executive’s actual employment with Keane.

b.                                      Gross-Up Payment.

(i)                                     Anything in this or any other Agreement to
the contrary notwithstanding, in the event an Executive becomes entitled to any
benefits or payments under this Agreement or under any other agreement, plan or
arrangement to which the Company and the Executive are parties, including any
non-cash benefit or deferred payment or benefit (the “Total Benefits”), which
will be subject to a tax imposed by Section 4999 of the Code (the “Excise Tax”)
due to classification as an excess parachute payment in accordance with Section
280G of the Code, the Company shall pay to him an additional amount (the “Gross-Up
Payment”) such that the net amount retained by him, after reduction of any
Excise Tax on the Total Benefits and any federal, state and local income tax,
Excise Tax and FICA and Medicare withholding taxes upon the payment provided
for by this Section, shall be equal to the Total Benefits.  For purposes of this Gross-Up Payment, the
amount of the Excise Tax (if any) imposed on any non-cash benefits or any
deferred payment or benefit shall be reasonably determined by the Company,
after consultation with its legal and tax advisors.

(ii)                                  For purposes of determining the amount of the
Gross-Up Payment, an Executive shall be deemed to pay federal income taxes at
the highest marginal rate of federal income taxation in the calendar year in
which the Gross-Up Payment is to be made and state and local income taxes at
the highest marginal rate of taxation in the state and locality of his
residence on the Termination Date, net of the reduction in federal income taxes
which could be obtained from deduction of such state and local taxes
(calculated by assuming that any reduction under Section 68 of the Code in the
amount of itemized deductions allowable to

 

him
applies first to reduce the amount of such state and local income taxes that
would otherwise be deductible by him).

(iii)                               In the event that the Excise Tax is
subsequently determined to be less than the amount taken into account for
purposes of calculating the Gross-Up Payment, the Executive shall promptly
repay to the Company the portion of the Gross-Up Payment attributable to such
reduction (plus that portion of the Gross-Up Payment attributable to the Excise
Tax, federal, state and local income taxes and FICA and Medicare withholding
taxes imposed on the portion of the Gross-Up Payment being repaid by him to the
extent that such repayment results in a reduction in Excise Tax, FICA and
Medicare withholding taxes and/or federal, state or local income taxes) plus
interest on the amount of such repayment at the rate provided in Section
1274(b)(2)(B) of the Code.

(iv)                              In the event that the Excise Tax is
determined to exceed the amount taken into account hereunder, the Company shall
make an additional Gross-Up Payment to him in respect of such excess (plus any
interest, penalties or additions payable by him with respect to such excess) at
the time that the amount of such excess is finally determined.

(v)                                 The Gross Up Payment shall be made within two
and a half months after the last day of the Executive’s actual employment with
Keane; provided, however, that if the Executive is a “specified employee” as
defined in Section 409A(a)(2)(B)(i) of Code and any of the payments to be made
to the Executive under this Section 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 by six
months.

(vi)                              The intent of this Section 7.b is to make the
Executive whole, to the extent allowed under applicable laws and regulations,
such that he is not detrimentally impacted by the imposition of a tax over and
above the marginal rate applicable to his Keane-related earnings as a result of
a Change In Control.

8.               Obligations and Restrictive Covenants.

All obligations and
restrictive covenants as set forth in any existing or future employment
agreements, stock option agreements, codes of conduct, or the like, shall
remain in full force and effect notwithstanding this Agreement, including but
not limited to, provisions and/or restrictions relating to trade secrets,
confidential information, works made for hire and inventions, competition,
solicitation, hiring, Company property, et cetera, except that any and all such
obligations and restrictive covenants shall remain in full force and effect for
the entire Salary Continuation Period notwithstanding any shorter period set
forth therein.

 

9.            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

(ii)
                               To the Executive:

At
the residence address most recently filed with the Company.

10.         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.

11.         Miscellaneous.

a.                                       This Agreement may be amended or modified
only by a written instrument executed by Keane and the Executive.  Notwithstanding anything herein to the
contrary, to the extent that the Executive or Keane reasonably believe that
Section 409A of the Code will result in adverse tax consequences to the
Executive as a result of this Agreement, then the Executive and Keane shall
renegotiate this Agreement in good faith in order to minimize or eliminate such
tax consequences and retain the basic after-tax economics of this Agreement for
the Executive to the extent possible.

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 10, 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 20th day of October, 2006.

	
  

  	
  By:

  
	
   

  	
   

  
	
   

  	
   /s/ M. Glenn Giles

  	
   

  
	
   

  	
   

  
	
   

  	
   M. Glenn Giles

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  Keane, Inc.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Russell J.
  Campanello

  	
   

  
	
   

  	
   

  
	
   

  	
   Russell J.
  Campanello, Sr. Vice President,

  
	
   

  	
   Human
  Resources

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