Document:

Exhibit
10.1

HSBC HOLDINGS plc

AND

KANBAY
EUROPE LTD.

APRIL
2005

CONSULTANCY SERVICES

GLOBAL
SUPPLY AGREEMENT

 

CONTENTS

	
  1

  	
   

  	
  DEFINITIONS
  AND INTERPRETATION

  	
   

  	
  3

  	
   

  
	
  2

  	
   

  	
  ENGAGEMENT

  	
   

  	
  9

  	
   

  
	
  3

  	
   

  	
  THE
  CONSULTANT’S OBLIGATIONS

  	
   

  	
  9

  	
   

  
	
  4

  	
   

  	
  WARRANTIES

  	
   

  	
  10

  	
   

  
	
  5

  	
   

  	
  HSBC’S OBLIGATIONS

  	
   

  	
  12

  	
   

  
	
  6

  	
   

  	
  ACCEPTANCE

  	
   

  	
  13

  	
   

  
	
  7

  	
   

  	
  CHARGES

  	
   

  	
  15

  	
   

  
	
  8

  	
   

  	
  HSBC GROUP CHANGES

  	
   

  	
  16

  	
   

  
	
  9

  	
   

  	
  CONSULTANT’S IT
  OBLIGATIONS

  	
   

  	
  17

  	
   

  
	
  10

  	
   

  	
  CHANGE CONTROL

  	
   

  	
  18

  	
   

  
	
  11

  	
   

  	
  NON SOLICITATION

  	
   

  	
  19

  	
   

  
	
  12

  	
   

  	
  TRAINING

  	
   

  	
  19

  	
   

  
	
  13

  	
   

  	
  INTELLECTUAL PROPERTY
  RIGHTS

  	
   

  	
  19

  	
   

  
	
  14

  	
   

  	
  LIABILITY

  	
   

  	
  22

  	
   

  
	
  15

  	
   

  	
  CONFIDENTIALITY

  	
   

  	
  24

  	
   

  
	
  16

  	
   

  	
  PUBLICITY

  	
   

  	
  24

  	
   

  
	
  17

  	
   

  	
  DATA PROTECTION

  	
   

  	
  25

  	
   

  
	
  18

  	
   

  	
  BREACH AND TERMINATION

  	
   

  	
  25

  	
   

  
	
  19

  	
   

  	
  FORCE MAJEURE

  	
   

  	
  27

  	
   

  
	
  20

  	
   

  	
  ESCALATION

  	
   

  	
  28

  	
   

  
	
  21

  	
   

  	
  DISPUTES

  	
   

  	
  28

  	
   

  
	
  22

  	
   

  	
  ADMINISTRATION AND
  MANAGEMENT OF AGREEMENT

  	
   

  	
  29

  	
   

  
	
  23

  	
   

  	
  ASSIGNMENT

  	
   

  	
  29

  	
   

  
	
  24

  	
   

  	
  VARIATION

  	
   

  	
  30

  	
   

  
	
  25

  	
   

  	
  NOTICES

  	
   

  	
  30

  	
   

  
	
  26

  	
   

  	
  SET-OFF

  	
   

  	
  31

  	
   

  
	
  27

  	
   

  	
  FURTHER ASSURANCE

  	
   

  	
  31

  	
   

  
	
  28

  	
   

  	
  COUNTERPARTS

  	
   

  	
  32

  	
   

  
	
  29

  	
   

  	
  INSURANCE

  	
   

  	
  32

  	
   

  
	
  30

  	
   

  	
  INTERNAL AND EXTERNAL
  AUDIT

  	
   

  	
  32

  	
   

  
	
  31

  	
   

  	
  RELATIONSHIP OF THE
  PARTIES

  	
   

  	
  33

  	
   

  
	
  32

  	
   

  	
  GENERAL

  	
   

  	
  33

  	
   

  
	
  ATTACHMENT A — Annex 1 - UK Declaration of Conformity

  	
   

  	
  36

  	
   

  
	
  ATTACHMENT A — Annex 2 - Declaration of Confidentiality

  	
   

  	
  38

  	
   

  
	
  ATTACHMENT B — ADDITIONAL PARTIES ENTITLED TO THE BENEFIT

  	
   

  	
  39

  	
   

  
	
  ATTACHMENT C — PROFORMA STATEMENT OF WORK

  	
   

  	
  40

  	
   

  
	
  ATTACHMENT D — DATA PROTECTION PROVISIONS

  	
   

  	
  41

  	
   

  

 

 2
 

 

 

THIS AGREEMENT IS MADE THIS 19TH DAY OF APRIL 2005

Between:

HSBC Holdings plc whose
registered office is 8 Canada Square, London, E14 5HQ (Registered Number
617987) which shall hereinafter be referred to as “HSBC”; and:

Kanbay Europe Ltd. of
Compass House, Vision Park, Histon Cambridge, CB4 9AD UK (Registered Number
3282049) which shall hereinafter be referred to as “Consultant”.

WHEREAS

A.                                   Consultant
has developed skill and expertise in various types of consulting services of
interest to HSBC and to any one or more of the HSBC Group Members (as defined
below).

B.                                     HSBC
and any one or more of the HSBC Group Members wish to engage the Consultant to
provide certain services and the parties have agreed that the Consultant will
supply or procure the supply of such services to HSBC and the relevant HSBC
Group Members on the terms of this Agreement.

1                                         DEFINITIONS AND INTERPRETATION

1.1          Interpretation

The interpretation and construction of the Agreement shall be subject to
the following:

Headings are for convenience only, and do not
affect interpretation.  The following
rules also apply in interpreting this Agreement, except where the context makes
it clear that a rule is not intended to apply:

(a)           reference to:

(i)                                     subject to Clause 4.1.9, legislation (including
subordinate legislation) is to that English legislation as amended, re-enacted
or replaced, and includes any subordinate legislation issued under it;

(ii)                                  a document or agreement, or a provision of a
document or agreement, is to that document, agreement or provision as amended,
supplemented, replaced or novated;

(iii)                               a party to this Agreement or to any other
document or agreement includes a permitted substitute or a permitted assign of
that party; and

 3
 

 

(iv)                              a person includes any type of entity or body of
persons, whether or not it is incorporated or has a separate legal identity,
and any executor, administrator or successor in law of the person;

(b)           a singular word
includes the plural, and vice versa;

(c)           a word which suggests
one gender includes the other genders;

(d)                                 if an example is given of anything (including a
right, obligation or concept), such as by saying it includes something else,
the example does not limit the scope of that thing;

(e)                                  the words “subsidiary” and “holding company” have
the same meaning set out at section 736 of the Companies Act 1985, and “management
control” shall be demonstrated by the ability to exercise significant influence
over an entity or its management;

(f)                                    the headings to clauses are for reference
purposes only and shall not affect the interpretation or construction of the
clauses;

(g)                                 subject to clauses 1.1(h) and 1.1(i), in the
event of conflict, the provisions of this Agreement are to be read in the
following order of precedence in relation to that conflict:

(i)            the
Terms and Conditions;

(ii)           the Attachments;

(iii)          the SoWs (and their Appendices); and

(iv)          any document incorporated by reference;

if a conflict occurs between the documents listed
above then the document higher in the order of precedence will prevail to
resolve that conflict;

(h)                                 subject to clause 1.1(i), in the event of
conflict between a provision in the Terms and Conditions and a provision in a
SoW, the provisions in clause 1.1(g) shall not apply and the provision in the
SoW shall take precedence over the conflicting provision in the Terms and
Conditions to the extent of the conflict, provided that the SoW expressly makes
reference to the specific conflicting provision in the Terms and Conditions and
expressly states that the provision in the SoW shall take precedence;

(i)                                     nothing in a SoW shall be read to take precedence
over clauses 4, 13 and 14 in the Terms and Conditions and clause 1.1(h) shall
not apply to such provisions, except where HSBC and the Consultant have
expressly agreed otherwise in a specific SoW 

 4
 

 

between HSBC or a HSBC Group
Member and the Consultant or a Consultant Affiliate; and

(j)                                     capitalised terms in this Agreement shall have
the meanings set out in clause 1.2.

1.2          Definitions

“Acceptance”
means the time at which the Deliverables pass the Acceptance Tests and HSBC or
the relevant HSBC Group Member signs a certificate to that effect in accordance
with clause 6 (Acceptance);

“Acceptance Tests”
means the tests for acceptance of the Deliverables set out in the relevant SoW
(and “Acceptance Testing” shall be construed
accordingly);

“Agreement”
means these Terms and Conditions together with the Attachments and all the SoWs
(whether executed between HSBC or a HSBC Group Member and Consultant or a
Consultant Affiliate), together with their Appendices, and any document
incorporated by reference, as amended from time to time in writing and agreed
by HSBC and the Consultant. For the avoidance of doubt, any such terms and
conditions submitted by the Consultant or any Consultant Affiliate in the
course of ordering and/or supplying the Services shall not replace, alter or
amend these Terms and Conditions unless HSBC shall have agreed to the contrary
in writing;

“Best Endeavours” means to take every
step necessary to achieve the desired result including taking such action and
making available such resources to the extent necessary to achieve the desired
objective;

“Business Day” means any day on
which banks are ordinarily open for business in the country in which the
Services are being provided and if such matter cannot be determined for any
reason, then any day on which banks are ordinarily open for business in London;

“Charges” means the fees set out in the relevant SoW;

“Commencement Date(s)”
means as the context permits the
date on which the provision of the Services shall commence under the relevant
SoW;

“Confidential Information” means (1) in
relation to HSBC or any HSBC Group Member, any information or know how of HSBC
or any HSBC Group Member (including information relating to their facilities,
premises, systems, security, procedures, products, business strategy (including
the existence of, the terms of and its position in any dispute in relation to
this Agreement), employees, officers, contractors and agents, customers and
contacts, and any other information of HSBC or any HSBC Group Member) that is
supplied during any audit or is marked confidential or that the recipient ought
reasonably to have known was confidential, imparted to Consultant or any
Consultant Affiliate or its employees, agents or contractors pursuant to this
Agreement and (2) in relation to Consultant or any Consultant 

 5
 

 

Affiliate, any information relating to its systems and security
procedures, its business strategy (including the existence of, the terms of and
its position in any dispute in relation to this Agreement), and any other
information of Consultant that is marked confidential or that the recipient
ought reasonably to have known was confidential, imparted to HSBC or any HSBC
Group Member pursuant to this Agreement. 
Confidential Information shall exclude information (1) that is or comes
into the public domain or is publicly known or available, or (2) is disclosed
by a third party (except where such third party discloses such information in
breach of obligations of confidence), or (3) that is independently developed by
a party without recourse to the Confidential Information of the other (or HSBC
Group Members or Consultant Affiliates (as applicable));

“Consultant Affiliate” means all world wide companies that are
controlled by or under the common control of Kanbay and including for the
avoidance of doubt, Kanbay.  A company is
controlled by Kanbay if Kanbay  owns at
least fifty percent (50%) or more of the shares or over which it (or one of its
holding or subsidiary companies) exercises management control, even though it
may own less than fifty percent (50%) of the shares and is prevented by law
from owning a greater shareholding;

“Consultant Personnel” means all
personnel, Key Personnel or other representatives of Consultant and/or relevant
Consultant Affiliates involved in the provision of the Services;

“Consultant Properties”  shall have the meaning as defined in clause 13.3;

“Deliverable(s)” means any
information, data, document, report, software, design, plan, strategy,
graphics, artworks or other product or material developed by the Consultant or
any Consultant Affiliate and delivered to HSBC or any HSBC Group Member in the
performance of this Agreement including any deliverable set out in the SoW;

“Event of Force Majeure” means any of the following circumstances which occur which are beyond
the reasonable control of a party and directly prevent that party from
performing its obligation(s) under this Agreement, being war, civil commotion,
armed conflict, riot, act of terrorism, fire, flood or other act of God
(excluding for the avoidance of doubt any labour dispute, labour shortages,
strikes or lock-outs) or as otherwise referred to in this Agreement;

 “Fixed-price
Engagement” means any engagement where all of the Services
relating to that engagement will be provided by the Consultant or the relevant
Consultant Affiliate at a fixed and agreed price as set out in the relevant
SoW;

“HSBC Group Member”
means a legal entity from time to
time (1) in which HSBC (or one or more of its holding or subsidiary companies,
or subsequent holding or subsidiary companies of such entity) owns at least
fifty percent (50%) or more of the voting shares or (2) over which HSBC (or one
of its holding or subsidiary companies, or a subsequent holding or subsidiary company
of such entity) either directly or indirectly exercises management control,
even though it may own less than fifty percent (50%) of the shares and is
prevented 

 6
 

 

by law from owning a greater shareholding or (3) the additional parties
listed in Attachment B or otherwise notified by HSBC from time to time;

“Implementation Plan” means the plan and
timetable for the provision of the Services and delivery and Acceptance of the
Deliverables, all of which are set out in the relevant SoW;

“Intellectual Property
Rights” means all present and future rights conferred by
statute, common law or equity in any territory in or in relation to copyright,
trade marks, designs, patents, database rights, circuit layouts, business and
domain names, inventions and Confidential Information, whether or not
registrable, registered or patentable and all applications therefor;

“Invoice Date”
means date(s) on which the invoice will be rendered, as specified in the
relevant SoW;

“Kanbay”
means  the Consultant’s parent
company, Kanbay International, Inc.;

“Key Personnel”
shall mean the Consultant’s or the relevant Consultant Affiliate’s
personnel appointed to perform the Services and/or any personnel of HSBC or the
relevant HSBC Group Member who are identified as key and named in the relevant
SoW from time to time;

“Lost Time” shall have the meaning as defined in clause 5.3;

“Not-to-exceed Engagement” means any engagement where the total price for
the provision of the Services relating to that engagement by the Consultant or
the relevant Consultant Affiliate shall not exceed an agreed capped amount;

“Project Manager” means the
person identified as the project manager of each relevant party in the relevant
SoW (or any other person notified by the party from time to time);

“Reasonable Endeavours”
means making every effort that the
party concerned reasonably can, consistent with the objective to be achieved
(and taking into account any timescale within which it is aimed to achieve the
objective concerned), including the following:

(a)                                  the
allocation and use of a reasonable amount of resources (including manpower,
financial and other appropriate terms) to achieve the relevant objective within
any applicable timescale; and

(b)                                 obtaining
any further information necessary to enable the achievement of the objective;
and

(c)                                  co-operating
with the other party or with others to the extent necessary to achieve the
objective;

“Replacement
Personnel” shall have the meaning as set out in Clause 18.6;

 7
 

 

“Residuals”
shall have the meaning as defined in clause
13.4;

“Services” means the services to be provided by the
Consultant or the relevant Consultant Affiliate as set out in this Agreement;

“Signature Date” means the date of
execution of these Terms and Conditions, as set out at the beginning of this
Agreement;

“Specification” of any Services or
Deliverable means the specification
agreed in writing by the Consultant or any Consultant Affiliate and HSBC or any
HSBC Group Member and set out in the SoW;

“Statement of Work(s)”
or “SoW(s)” means a statement of work
based on the pro forma set out in Attachment C and signed by Consultant (or any
Consultant Affiliate) and HSBC (or any HSBC Group Member) and which
incorporates these Terms and Conditions as set out in the SoW, or any statement
of work that has been agreed in writing between Consultant (or any Consultant
Affiliate) and HSBC (or any HSBC Group Member) which are to be construed in
accordance with these Terms and Conditions.
Each SoW relates to a particular engagement for the provision of Services and
constitutes a separate and independent agreement regarding such Services
between Consultant (or the Consultant Affiliate that signed the SoW) and HSBC (or
the HSBC Group Member that signed the SoW);

“Term” means
in relation to a SoW or these Terms and Conditions, the period from the
commencement until expiry or termination of that SoW or these Terms and
Conditions (as applicable);

“Terms and Conditions” means the terms
and conditions set out in clauses 1 to 32 (inclusive) and Attachments A, B and
D herein.

1.3                               Statement of Work

Consultant hereby agrees
that:

1.3.1                           in relation to any SoW executed by HSBC or a HSBC
Group Member and a Consultant Affiliate whether on or after the Signature Date,
the Consultant shall be jointly and severally liable with that Consultant
Affiliate to perform the obligations under that SoW; and

1.3.2        the
provisions in this Agreement shall apply to the Services set out in each SoW:

(a) executed by HSBC or a HSBC Group Member and
the Consultant; and

(b) executed by HSBC or a HSBC
Group Member and a Consultant Affiliate, notwithstanding that the Consultant is
not a party to that SoW.

 8
 

 

1.3.3                        it shall procure the agreement of and compliance by each Consultant
Affiliate (who is a party to a SoW) to these Terms and Conditions, as if they
were a party to these Terms and Conditions.

2                                         ENGAGEMENT

2.1                                 Consultant
agrees and shall procure that HSBC or any HSBC Group Member may order Services
or Deliverables from Consultant or Consultant Affiliates pursuant to these
Terms and Conditions by executing a Statement of Work. The pre-printed terms
appearing on any purchase order form and any documentation which:

2.1.1                        Consultant or
Consultant Affiliates (as applicable) generally issue to its customers for the
supply of services or deliverables; or

2.1.2                        HSBC or the
relevant HSBC Group Member generally issues to its suppliers for the supply of
services or deliverables,

shall not apply and shall not add to or vary
the terms of this Agreement or the relevant SoW.

2.2                                 These
Terms and Conditions shall commence on the date of execution of such Terms and
Conditions by the parties and shall continue until terminated in accordance
with clause 18 (Breach and Termination).

2.3                                 Each
SoW shall commence on the Commencement Date of such SoW and shall continue
until terminated in accordance with clause 18 (Breach and Termination) or until
the Services are completed, whichever is the earlier.

3                                         THE CONSULTANT’S OBLIGATIONS

3.1                                 The
Consultant or the relevant Consultant Affiliate will supply their Key Personnel
(or other Consultant Personnel who shall have appropriate qualifications in
accordance with clause 3.3) to perform and complete the Services in accordance
with this Agreement.

3.2                                 The
Consultant or the relevant Consultant Affiliate shall use Reasonable Endeavours
to ensure the Consultant’s or the relevant Consultant Affiliate’s Key Personnel
engaged to provide Services under a SoW continue to provide such Services for
the full Term of the SoW. If (despite the use of such Reasonable Endeavours) it
becomes necessary to remove one of the Consultant’s or the relevant Consultant
Affiliate’s Key Personnel, the Consultant or the relevant Consultant Affiliate
shall notify HSBC or the relevant HSBC Group Member as soon as reasonably
practicable and shall substitute such personnel with other personnel of at
least equal calibre, qualification and experience, and the relevant SoW should
be amended accordingly.

3.3                                 The
engagement of all Consultant Personnel to provide Services shall be subject to
the approval of HSBC or the relevant HSBC Group Member.  HSBC or the relevant HSBC 

 9
 

 

Group Member is entitled to withhold its approval or require the
replacement of such Consultant Personnel if in the reasonable opinion of HSBC
or the relevant HSBC Group Member such Consultant Personnel in question has
failed or is likely to fail to meet the requirements set out in this Agreement
or is otherwise inappropriate.  HSBC may
terminate this Agreement or the Terms and Conditions and HSBC or the relevant
HSBC Group Member may terminate a SoW if the Consultant or the relevant
Consultant Affiliate persistently provides Key Personnel who in the reasonable
opinion of HSBC or the relevant HSBC Group Member fail or are likely to fail to
meet the requirements set out in these Terms and Conditions or the SoW or are otherwise
inappropriate.

3.4                                 Unless
otherwise agreed, the replacement of any Consultant Personnel shall be at no
additional charge to HSBC (or the relevant HSBC Group Member) other than the
agreed Charges for provision of the relevant Consultant Personnel, and the
Consultant or Consultant Affiliate (as applicable) shall bear the cost of any
time required by the replacement Consultant Personnel to familiarise themselves
with the relevant Services and requirements of HSBC or the relevant HSBC Group
Member.  The Consultant or Consultant
Affiliate (as applicable) shall ensure or procure that any transition
arrangements to replace Consultant Personnel shall be without disruption to
HSBC or the relevant HSBC Group Member and shall not delay the performance of
the Services, or completion date of any SoW.

3.5                                 All
Consultant Personnel shall remain under the direct control of the Consultant or
the relevant Consultant Affiliate, but whilst such Consultant Personnel are on
any HSBC’s or any HSBC Group Member’s premises or the premises of any other
party as necessary for the provision of the Services, the Consultant or
Consultant Affiliate (as applicable) will use its Best Endeavours to ensure or
procure that the Consultant Personnel:

3.5.1                                         comply with
the security and health and safety regulations, and other policies in force at
the site from time to time; and

3.5.2                                         obey the
reasonable instructions and requirements of HSBC or the relevant HSBC Group
Member and other party (as applicable).

3.6                                 The
Consultant or Consultant Affiliate (as applicable) shall procure that none of
the Consultant Personnel makes or purports to make any representation, warranty
or undertaking or otherwise acts or purports to act in any manner that might be
interpreted as binding or committing HSBC or any HSBC Group Member to any
obligation to any third party.

3.7                                 Time
shall be of the essence in relation to all obligations of the Consultant (and
relevant Consultant Affiliates) to perform the Services and supply the
Deliverables pursuant to this Agreement except that this clause 3.7 shall not
apply in the case of timeframes or timescales which are expressly stated in a
SoW to be estimates only.

4                                         WARRANTIES

4.1                                 The
Consultant warrants, represents and undertakes to HSBC and the HSBC Group
Members that it will, and will ensure that the Consultant Affiliates and all
Consultant Personnel will:

 10
 

 

4.1.1                        have for the Term of this
Agreement, full authority (1) to enter this Agreement and perform all
obligations under this Agreement and (2) to 
procure that all Consultant Affiliates perform the relevant obligations
as set out in this Agreement;

4.1.2                        unless otherwise agreed between
the Consultant Affiliate and the relevant HSBC Group Member in writing, procure
on behalf of HSBC and the HSBC Group Members all rights, licences, consents and
permits necessary to provide the Services and supply the Deliverables in
accordance with this Agreement;

4.1.3                        ensure that the Services are
performed with due diligence, reasonable skill and care and in accordance with
best industry practice at all times;

4.1.4                        ensure the Services are
provided in accordance with the Specification to the reasonable satisfaction of
the relevant HSBC Group Member and in accordance with the Implementation Plan
and this Agreement;

4.1.5                        ensure that no software data or
other materials, other than those provided or approved by the relevant HSBC
Group Member are to be loaded or used on any HSBC Group Member’s computer
system by the Consultant Personnel;

4.1.6                        ensure that all Consultant
Personnel will, when present at an HSBC’s or a HSBC Group Member’s site, comply
with the applicable site security, health and safety and other procedures in
force from time to time and will at all times behave in a courteous,
professional and appropriate manner;

4.1.7                        ensure that no Consultant
Personnel will act or make any statement or otherwise behave in any manner that
is reasonably likely to result in any prejudice to HSBC or any HSBC Group
Member (including to its reputation);

4.1.8                        ensure that any Deliverable
will fulfil the requirements set out in the SoW, Specification or otherwise
specified in writing by Consultant or a Consultant Affiliate and HSBC or an
HSBC Group Member;

4.1.9                        for the Term of this Agreement,
comply with all applicable laws and other governmental, statutory or regulatory
requirements which may from time to time be applicable to the Consultant or
Consultant Affiliates (as applicable) in providing the Services and
Deliverables to HSBC and HSBC Group Members; and

4.1.10                  ensure that the Services and
Deliverables, will where required and acknowledged in the applicable SoW,
recognise and (where applicable) process any applicable currency (including any
currency of any member state of the European Union).

4.2                                 Consultant
shall indemnify and keep indemnified HSBC and HSBC Group Members against any
loss suffered as a result of any breach of any warranty in clause 4.1 above.

 11
 

 

4.3                                 Without
prejudice to its obligations under clause 4.1 or to any  rights or remedies of HSBC or HSBC Group
Members, in the event of breach of any warranty, Consultant undertakes,
promptly to remedy the breach without charge. Any claim for breach of the
warranties hereunder must be made, by written notice to the Consultant within,
one hundred and eighty (180) days after
delivery of the Deliverable to HSBC or the relevant HSBC Group Member or ninety
(90) days following the date that the Deliverable to which the claim relates is
used in a live production environment, whichever is the earlier.  However, if the SoW expressly states that the
Deliverable will not be used in a live production environment then any claim
for breach of the warranties hereunder for that Deliverable must be made within
ninety (90) days after delivery of such Deliverable.

4.4                                 Consultant
shall, where permitted by applicable law, deliver prior written notice to HSBC
of any change of control (as defined in clause 1.1(e) above) of Consultant or
any Consultant Affiliate performing Services, in favour of a third party that
is not a Consultant Affiliate.

4.5                                 EXCEPT
AS PROVIDED IN THIS CLAUSE 4, CONSULTANT AND CONSULTANT AFFILIATES MAKE NO
OTHER REPRESENTATIONS OR WARRANTIES OF ANY KIND, WHETHER EXPRESS OR IMPLIED,
FROM A COURSE OF PERFORMANCE OR DEALING, TRADE USAGE, OR OF UNINTERRUPTED OPERATION
WITHOUT ERROR, INCLUDING, BUT NOT LIMITED TO, THE IMPLIED WARRANTIES OF
MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE.  EXCEPT AS MAY BE EXPRESSLY STATED IN A SoW,
CONSULTANT AND CONSULTANT AFFILIATES MAKE NO WARRANTIES REGARDING THE BUSINESS
BENEFITS OR RESULTS THAT ARE TO BE OBTAINED BY HSBC OR THE HSBC GROUP MEMBER
(AS APPLICABLE) FROM USE OF THE SERVICES OR DELIVERABLES. THE LIMITED
WARRANTIES SET FORTH IN THIS AGREEMENT ARE MADE FOR THE BENEFIT OF HSBC AND/OR
THE RELEVANT HSBC GROUP MEMBER ONLY.

5                                         HSBC’S OBLIGATIONS

5.1           HSBC or the relevant HSBC Group
Member shall:

5.1.1                        on reasonable notice provide
the Consultant or the relevant Consultant Affiliate with such information,
data, documents and co-operation as is reasonably required by the Consultant or
the relevant Consultant Affiliate to perform the Services and supply the
Deliverables;

5.1.2                        ensure the reasonable
availability and stability of the relevant computing environment to support the
Services and acceptance testing set forth in this Agreement, if and to the
extent required in connection with any SoW;

5.1.3                        provide such reasonable access
to HSBC’s or the relevant HSBC Group Member’s premises, personnel, equipment,
databases, software, and other resources at pre-agreed times as is reasonably
necessary for the Consultant or the relevant Consultant Affiliate to perform
its obligations under this Agreement.

 12
 

 

5.2                                 The
Consultant and the relevant Consultant Affiliate shall not be liable for any
failure in performing any obligations under this Agreement to the extent that
such failure is due to the failure by HSBC or the relevant HSBC Group Member to
perform an obligation under this Agreement.

5.3                                 With
respect to Fixed-price Engagements and Not-to-exceed Engagements only, in the
event that HSBC or the relevant HSBC Group Member fails to meet its obligations
as stated in this Agreement (and the Consultant or the relevant Consultant
Affiliate has previously notified HSBC or the relevant HSBC Group Member in
writing of HSBC’s or the relevant HSBC Group Member’s failure to perform such
obligations and the Consultant’s or the relevant Consultant Affiliate’s
entitlement to claim for Lost Time in accordance with this clause 5.3 if HSBC’s
or the relevant HSBC Group Member’s failure to perform continues), and
Consultant or the relevant Consultant Affiliate incurs additional time, effort
or expense in the course of delivering the Services due solely to such failure
by HSBC or the relevant HSBC Group Member (“Lost
Time”), then Consultant or the relevant Consultant Affiliate
shall inform HSBC or the relevant HSBC Group Member in writing of the amount of
the Lost Time and provide sufficient evidence to justify its claim under this
clause 5.3 and any further evidence requested by HSBC or the relevant HSBC
Group Member, and on HSBC’s or the relevant HSBC Group Member’s satisfaction of
Consultant’s or the relevant Consultant Affiliate’s entitlement to claim for
the amount of Lost Time under this clause 5.3, HSBC or the relevant HSBC Group
Member shall reimburse Consultant or the relevant Consultant Affiliate an
equitable amount at the standard rates which apply to the relevant SoW for such
Lost Time.

5.4                                 HSBC
hereby represents and warrants that it or the relevant HSBC Group Member has
(i) all rights, titles, or interests in the software, hardware, systems, facilities,
and other resources supplied to Consultant or the relevant Consultant Affiliate
or required for the performance of HSBC’s or the relevant HSBC Group Member’s
obligations hereunder, and (ii) the authority and the legal right to permit
Consultant or the relevant Consultant Affiliate to perform the Services.

6                                         ACCEPTANCE

6.1                                 HSBC
or the relevant HSBC Group Member shall be entitled to subject any Deliverable
to Acceptance Testing.  HSBC or the
relevant HSBC Group Member shall conduct the Acceptance Tests, where
applicable, in accordance with the Implementation Plan, with the support of the
relevant resources of the Consultant and/or Consultant Affiliate as reasonably
required by HSBC or the relevant HSBC Group Member.

6.2                                 As
soon as reasonably possible after the satisfactory completion of the Acceptance
Tests, HSBC or the relevant HSBC Group Member shall issue a written certificate
(where applicable in the form specified in the Implementation Plan) certifying
that the Deliverable has passed the Acceptance Tests.  Satisfactory completion of the Acceptance
Tests shall occur when the Deliverable achieves the results specified in the
Acceptance Tests.  If HSBC or the
relevant HSBC Group Member does not issue the written acceptance certificate
(or a notice of rejection pursuant to clause 6.3 below) to Consultant or the
relevant Consultant 

 13
 

 

Affiliate within fifteen (15) Business Days following completion of the
period specified for Acceptance Testing, then the Deliverable shall be deemed
to have passed the Acceptance Tests.

6.3                                 If
any Deliverable fails to satisfy the Acceptance Tests, HSBC or the relevant
HSBC Group Member shall give the Consultant or the relevant Consultant
Affiliate prompt written details of the failure, and if it does:

6.3.1                        the Consultant or the relevant
Consultant Affiliate must, at its own cost, and within two (2) days, commence
use of Best Endeavours to correct the Deliverable so that the Acceptance Tests
can be repeated and shall complete such correction within seven (7) days or
otherwise within such reasonable period agreed between the parties;

6.3.2                        the Consultant or the relevant
Consultant Affiliate must promptly give HSBC or the relevant HSBC Group Member
written notice when it has corrected the Deliverable and the Acceptance Tests
can be repeated; and

6.3.3                        the parties must conduct the
repeated Acceptance Tests as soon as reasonably practicable, or, if applicable,
in accordance with the Implementation Plan for repeated Acceptance Tests.

6.4                                 If
the repeated Acceptance Tests are not successfully completed within a
reasonable time, or, if applicable, the period specified in the Implementation
Plan (other than directly and solely because of any act or omission of HSBC or
the relevant HSBC Group Member) HSBC or the relevant HSBC Group Member may
elect:

6.4.1                        to reject the Deliverable and
terminate the relevant SoW (in full or in part) on notice with immediate
effect, in which case the Consultant or the relevant Consultant Affiliate shall
refund to HSBC or the relevant HSBC Group Member all Charges paid by HSBC or
the relevant HSBC Group Member in relation to such Deliverable and HSBC or the
relevant HSBC Group Member shall return to Consultant or the relevant
Consultant Affiliate the applicable Deliverable and all related materials
supplied by Consultant or the relevant Consultant Affiliate; or

6.4.2                        to accept the Deliverable
subject to a reasonable deduction of Charges (which amount of deduction has
been agreed between the parties) to reflect the delays caused by its failure to
meet the Acceptance Tests, and/or the reduced level of functionality and
performance (or other aspects) of the Deliverable; or

6.4.3                        to require the Consultant or
the relevant Consultant Affiliate to continue to use Best Endeavours to remedy
the defect and re-present the Deliverable for further Acceptance Testing.

6.5                                 If
any Acceptance Test is repeated because a Deliverable failed to pass the
Acceptance Test when previously tested and to the extent that such failure
arose due to the Consultant’s or the 

 14
 

 

relevant Consultant Affiliate’s default in not developing the
Deliverable to fulfil the requirements set out in the relevant SoW and/or
Specification, the  Consultant or the
relevant Consultant Affiliate shall promptly pay on demand HSBC’s or the
relevant HSBC Group Member’s additional expenses (including any internal
expenses relating to wasted time, as well as third party expenses) in repeating
the Acceptance Tests.

6.6                                 Nothing
in this clause 6 shall affect any rights or remedies of HSBC or any HSBC Group
Member under clause 4.

7                                         CHARGES

7.1                                 Charges
for the provision of Services are either set out in the relevant SoW or will be
calculated on a time and materials basis at the rates specified in the
applicable SoW.  If HSBC or the relevant
HSBC Group Member agrees in a SoW to reimburse the Consultant or the relevant
Consultant Affiliate for any expenses reasonably incurred in the provision of
the Services, reimbursement will be made on the basis set out in the relevant
SoW.  Subject to clause 7.2, no other or
additional sums shall be payable by HSBC or any HSBC Group Member to the
Consultant or any Consultant Affiliate in relation to the relevant Services or
any Deliverables.

7.2                                 If
the Consultant or the relevant Consultant Affiliate is asked by the Project
Manager of HSBC or the relevant HSBC Group Member to perform any services which
it reasonably considers are outside the scope of the Services, then the
Consultant or the relevant Consultant Affiliate shall notify HSBC or the
relevant HSBC Group Member and provide a quote for any additional Charges for
the performance of the additional services. 
If HSBC or the relevant HSBC Group Member wishes the Consultant or the
relevant Consultant Affiliate to proceed to provide the additional Services, it
shall notify the Consultant or the relevant Consultant Affiliate in writing and
the relevant SoW shall be amended accordingly. 
For the avoidance of doubt, HSBC or the relevant HSBC Group Member shall
not be liable to make any payment to the Consultant or the relevant Consultant
Affiliate in relation to such additional services unless the Project Manager of
HSBC or the relevant HSBC Group Member has agreed to receive such additional
services detailed in a signed SoW. 
Unless the parties agree otherwise, the provisions of these Terms and
Conditions shall apply to those additional services (which shall become
Services for the purposes of this Agreement) and if neither a Fixed-price
Engagement nor a Not-to-exceed Engagement has been agreed in writing for such
Services, then the Consultant or the relevant Consultant Affiliate shall be
paid on a time and materials basis at the rates specified in the applicable
SoW.

7.3                                 Invoices
which contain sufficient detail concerning the Services to which it relates,
shall be rendered to HSBC or at its option to any one or more HSBC Group
Members on the Invoice Date(s) specified in the relevant SoW and subject to
clause 7.4, if correct and undisputed shall fall due and payable to Consultant
(or where agreed Consultant Affiliate(s)) no later than forty-two (42) days thereafter or such other period as
specified in the SoW.   All Charges payable under this Agreement
shall be expressed, invoiced and payable in the 

 15
 

 

currency(ies) and on the date(s) specified in the relevant SoW.
Invoices shall be in a form specified by HSBC.

7.4                                 In
the event of disputed items in the invoice rendered by the Consultant or the
relevant Consultant Affiliate, HSBC or the relevant HSBC Group Member shall be
entitled to withhold payment on any such disputed items.  Complete details concerning any disputed
items will be provided by HSBC or the relevant HSBC Group Member to the
Consultant or the relevant Consultant Affiliate.  Notwithstanding the foregoing, the Consultant
agrees that HSBC or the relevant HSBC Group Member shall have no liability in
respect of any Charges due hereunder which are not invoiced to HSBC or the
relevant HSBC Group Member within twelve (12) months of the date when such
invoice had properly become presentable in accordance with clause 7.3.

7.5                                 In
the event of late payment by HSBC or an HSBC Group Member (as applicable) of
any undisputed sums due and payable under this Agreement (and provided HSBC or
the relevant HSBC Group Member has been given at least fifteen (15) days
written notice to cure such late payment), the Consultant reserves the right to
charge HSBC or the relevant HSBC Group Members interest in respect of the
undisputed late payment at the rate of one percent (1%) per annum above the
base rate from time to time of the relevant HSBC Group Member making payment (or
if that entity does not have a base rate then the base rate of the central bank
in the territory in which that HSBC Group Member is located) from the due date
thereof until judgement (or if no judgement the date on which payment is
received by Consultant).  In relation to
HSBC, the base rate of the central bank in the territory in which HSBC is
located, shall prevail.

7.6                                 In
addition, HSBC or the relevant HSBC Group Member shall be responsible for
paying any applicable sales, use, excise, value added, or similar taxes,
duties, or assessments imposed upon the Services rendered or Deliverables
provided hereunder by any federal, state, local, or foreign government
authority, exclusive of any taxes based upon Consultant’s income or payroll.

7.7                                 The
Consultant shall and shall procure the Consultant Affiliates who provide any
Services, upon request and reasonable prior notice, provide to HSBC or the
relevant HSBC Group Member, or internal or external auditors or examiners of
HSBC or the relevant HSBC Group Member, copies of their respective books and
records including but not limited to their annual audited, unconsolidated
financial statements, timesheets, project plans, expense reports, and related
billing justifications pertaining to the Services provided and Charges invoiced
under any SoW.

8                                         HSBC GROUP CHANGES

8.1                                In
the event of any new entity becoming an HSBC Group Member after the Signature
Date, the new entity shall be entitled (at HSBC’s option) to all rights
conferred on HSBC Group Members under this Agreement.  In no event shall such new entity be obliged
by reason of its becoming an HSBC Group Member to purchase any Services from
the Consultant or any Consultant Affiliate.

 16

 

8.2                                If
the Consultant acquires a company, business or division or any entity otherwise
becomes a (or part of a) Consultant Affiliate, then HSBC and the HSBC Group
Members shall be entitled to order Services or Deliverables from that entity,
business or division pursuant to this Agreement.

8.3                                In the event that any part of the Services is
planned by Consultant to be withdrawn from general availability for any reason
whatsoever, Consultant must use Reasonable Endeavours to give at least twelve
(12) months’ written notice to HSBC and must use Best Endeavours to procure the
supply of appropriate alternative services at no additional cost to HSBC or any
HSBC Group Members.

8.4                                 A
“Divestment Unit” shall mean any subsidiary,
division or department of HSBC or an HSBC Group Member, which was immediately
prior to a particular date (the “Divestment Date”),
properly entitled to receive Services or Deliverable(s), and would not, on or
after the Divestment Date, be a (or part of a) HSBC Group Member and therefore
not entitled (other than by virtue of this provision) to receive Services or
Deliverable(s).

8.5                                 Any
SoW relating to a Divestment Unit shall terminate on the Divestment Date unless
the Consultant shall be required by HSBC to continue to supply or procure that
a Consultant Affiliate provides any Services which it would otherwise be
required to provide or procure that a Consultant Affiliate provides to the
Divestment Unit under that SoW. For the avoidance of doubt neither HSBC nor any
HSBC Group Member shall be responsible for the acts or omissions of the
Divestment Unit nor its compliance with requirements under this Agreement.

8.6                                 For the avoidance of doubt, nothing in this clause 8 (HSBC Group Changes) shall prejudice HSBC’s or
any HSBC Group Member’s right of termination or any right to claim damages in
relation to the failure of the Consultant to provide or procure that a
Consultant Affiliate provides Services or Deliverables under this Agreement.

8.7                                 For
the avoidance of doubt, in the event of any dispute and during any termination
notice period hereunder Consultant will continue to provide or procure the
Services fully in accordance with its obligations hereunder.

9                                         CONSULTANT’S
IT OBLIGATIONS

9.1                                 The
Consultant or the relevant Consultant Affiliate shall, where applicable, test
any Deliverable prior to delivery to prevent the introduction of a computer
virus onto HSBC’s and/or HSBC Group Members’ computer equipment or
systems.  Consultant and the relevant
Consultant Affiliate shall use Best Endeavours to ensure that no computer virus
is introduced on to HSBC’s or HSBC Group Members’ computer equipment or systems
by any act, omission or negligence of Consultant, any Consultant Affiliates or
either of their employees agents or contractors.

9.2                                 Without
prejudice to HSBC’s or HSBC Group Members’ other rights, in the event that a
computer virus is introduced on to HSBC’s or HSBC Group Members’ computer
systems 

 17
 

 

caused by any act, omission or negligence of Consultant, any Consultant
Affiliates or either of their employees, agents or contractors, Consultant and
the relevant Consultant Affiliate shall use all Reasonable Endeavours at HSBC’s
or the relevant HSBC Group Member’s request promptly to restore HSBC’s or the
relevant HSBC Group Members’ system to normal operational readiness.

9.3                                 HSBC
shall use all Reasonable Endeavours to ensure that appropriate anti virus
measures relating to the computer environment are implemented within HSBC and
HSBC Group Members.

9.4                                 Consultant
and the relevant Consultant Affiliate warrants, represents and undertakes to
HSBC and HSBC Group Members that any Deliverables constituting software or data
will upon delivery, be free from any code or function designed to or having the
effect of inhibiting the operation of the relevant Deliverable.

10                                  CHANGE CONTROL

10.1                           If
HSBC or the relevant HSBC Group Member wishes to change any Service or
Deliverable provided hereunder it shall notify the Consultant or the relevant
Consultant Affiliate in writing.  If the
parties agree that the proposed change is minor, they shall agree an
appropriate amendment to the relevant SoW. 
If the change is not agreed to be minor, the remainder of this clause 10
(Change Control) shall apply.

10.2                           HSBC’s
or the relevant HSBC Group Member’s Project Manager (the “Initiator”) shall
submit to the Consultant’s or the relevant Consultant Affiliate’s Project
Manager a written request for such change, together with particulars thereof
and such further information as the Consultant or the relevant Consultant
Affiliate may reasonably require (“Change Request”).

10.3                           Until
such time as (if at all) the Change Request is finalised pursuant to clause
10.5, the Consultant or the relevant Consultant Affiliate shall, unless
otherwise agreed in writing, continue to perform the Services notwithstanding
the Change Request.

10.4                           The
Consultant’s or the relevant Consultant Affiliate’s Project Manager shall
respond in writing to the Change Request within a reasonable period (and in any
event within ten (10) Business Days) specifying the likely resource, time and
cost required to implement the change. 
The Consultant’s or the relevant Consultant Affiliate’s Project Manager
shall provide the Initiator with such other reasonable information as is
reasonably requested relating to the Consultant’s or the relevant Consultant
Affiliate’s response.

10.5                           The
Initiator shall advise Consultant’s or the relevant Consultant Affiliate’s
Project Manager in writing of their decision either to progress or not with the
Change Request.  No change shall be made
to the Services or Deliverables unless HSBC or the relevant HSBC Group Member
and Consultant or the relevant Consultant Affiliate have agreed to the change
in writing signed by the Initiator or other authorized representative.

 18
 

 

11                                  NON
SOLICITATION

While a SoW is in force, and for a period of twelve (12) months from
its termination for any reason, neither party will (and the Consultant will
ensure no Consultant Affiliates will) whether alone or jointly, directly or
indirectly employ or offer employment the same or similar to or substantially
relating to the Services to any employee of the other if that employee was
directly and actively involved with the performance or receipt of Services
under that SoW, other than as may be agreed by the parties in writing.  This clause 11 (Non Solicitation) shall not
prevent HSBC or any HSBC Group Member soliciting or offering employment to any
employee of the Consultant or any Consultant Affiliate if this Agreement has
terminated (or notice to terminate is served) pursuant to clause 18.2(b) or
18.1 (a).  For the avoidance of doubt,
the restrictions set out in this clause 11 (Non Solicitation) shall not prevent
either party from considering or employing the other’s personnel pursuant to a
response to a publicly advertised vacancy. 
For purposes of this clause 11, the terms “employment” and “employee”
shall include any form of employment, consulting, contract relationship, or
other arrangement pursuant to which such individual will, directly or
indirectly, perform services for the new employer.

12                                  TRAINING

12.1                           Unless
the applicable SoW specifically requires the Consultant or Consultant Affiliate
to provide training as a Service under that SoW in consideration of the Charges
listed in that SoW, the Consultant shall or shall procure that Consultant
Affiliates shall provide at no extra charge to HSBC and/or the HSBC Group
Members, such initial training and a reasonable number (as requested by HSBC
and/or the HSBC Group Member) of copies of a set of operating manuals
containing sufficient information to allow the correct installation and use of
any Deliverable and as is specified in the relevant SoW.   Such manuals shall be supplied in the
language requested by HSBC or the relevant HSBC Group Member.  If the personnel of the Consultant or the Consultant
Affiliates who have provided the Services are unable due to their lack of
skills in the requested language, to perform the translation, then the
Consultant shall obtain or shall procure the Consultant Affiliate to obtain,
and provide to HSBC a quote for the cost of the translation. HSBC may elect for
the Consultant or Consultant Affiliate (as applicable) to perform the
translation and shall provide notice of its acceptance of the quoted cost for
such translation.  Upon HSBC’s receipt of
such translation, HSBC shall pay the quoted cost for such translation.

12.2                           If
specified in the applicable SoW, the Consultant shall or shall procure that
Consultant Affiliates shall provide HSBC and/or the HSBC Group Members with
such supplementary training as is required by HSBC and/or HSBC Group Members on
reasonable prior written notice from time to time at the daily rate or other
Charge specified in such SoW.

13                                  INTELLECTUAL
PROPERTY RIGHTS

13.1                           Unless
the parties otherwise specify in a SoW, the Intellectual Property Rights in any
Deliverables shall belong to HSBC or an HSBC Group Member nominated by HSBC.

 19
 

 

13.2                           Subject
to any other agreement between the parties set out in any SoW and relating to
that SoW, the Consultant or the relevant Consultant Affiliate hereby assigns
(or will procure relevant Consultant Affiliates assigns) on creation all
Intellectual Property Rights created in the performance of the Services and all
Deliverables to HSBC or the nominated HSBC Group Member and will procure the
waiver of all moral rights (or similar rights) therein and will take all steps
necessary to ensure HSBC and all HSBC Group Members and their licensees and
transferees may use the Deliverables and receive the Services without
restriction of any kind.  The Consultant
(or Consultant Affiliates, as appropriate) may only use the Deliverables as
strictly necessary to provide the Services to HSBC or any relevant HSBC Group
Members in accordance with this Agreement and the relevant SoW. Should HSBC not
pay an undisputed invoice, then the Intellectual Property Rights vesting in the
associated Deliverable shall pass to Consultant (or relevant Consultant
Affiliate) until such payment is made. 
Furthermore, nothing herein shall cause or imply any sale, licence, or
other transfer of proprietary rights of or in any third party software or
products from one party to this Agreement to the other party.

13.3                           Proprietary
computer software, methodologies, techniques, software libraries, tools,
algorithms, materials, products, ideas, designs, and know-how used by
Consultant or the relevant Consultant Affiliate in providing Services
(including all copies, enhancements, modifications, revisions, and derivative
works of any of the foregoing) that:  (a)
existed prior to the commencement of such Services, or (b) are developed
independently of providing the Services hereunder shall be the property of
Consultant or the relevant Consultant Affiliate (“Consultant
Properties”).  As between
Consultant or the relevant Consultant Affiliate and HSBC or the relevant HSBC
Group Member, Consultant or the relevant Consultant Affiliate shall at all
times be and remain the sole and exclusive owner of the Consultant
Properties.  Subject to payment for the
relevant Deliverable, Consultant or the relevant Consultant Affiliate hereby
grants to HSBC or the relevant HSBC Group Member a perpetual, world-wide,
royalty-free, non-exclusive licence to use, execute, reproduce, transmit,
display, perform, enhance, modify and create derivative works from any
Consultant Properties incorporated into or made a part of the Deliverables only
in connection with the use, sale, licensing, modification, enhancement, or
further development of such Deliverables.

13.4                           Notwithstanding anything to the contrary herein,
Consultant, Consultant Affiliates, and their respective personnel shall be free
to use and employ their skills, knowledge, ideas, methodologies, materials or
techniques gained or learned during the provision of any Services, provided
that such items (“Residuals”) (i) are acquired
and applied without disclosure of any Confidential Information of HSBC or the
relevant HSBC Group Member, and (ii) are acquired and applied without
unauthorised use or disclosure of any Deliverables delivered under the
applicable SOW.

13.5                           Consultant
or the relevant Consultant Affiliate defends and indemnifies, and shall
continue to defend and indemnify, HSBC and all HSBC Group Members from and
against, and agrees to pay, any losses, liabilities, damages and expenses
(including legal fees on a full indemnity basis) incurred by or awarded against
HSBC and/or any HSBC Group Members as a result 

 20
 

 

of, or in connection with, any claim by a third party for an
infringement of any Intellectual Property Rights and/or Consultant Properties
and/or Residuals relating to any Deliverable or any supply of Services provided
by or on behalf of the Consultant or any Consultant Affiliate under this
Agreement. For the avoidance of doubt, in the event of any likely damage to
HSBC’s and/or any HSBC Group Member’s goodwill or reputation, or in the event
of an injunction or any other interim relief (or threat of such relief) HSBC
shall be entitled to instruct senior legal counsel or take such other steps as
it deems appropriate, the reasonable costs of which shall be included in this indemnity.
Without prejudice to the other obligations in this clause 13.5 the Consultant
or the relevant Consultant Affiliate agrees promptly to assume sole and
exclusive control of the defense of any such claim and all negotiations for
settlement.  Without prejudice to the
other obligations in this clause 13.5, the Consultant or the relevant
Consultant Affiliate agrees promptly to pay to HSBC and/or the relevant HSBC
Group Member, any expenses or other amounts howsoever incurred or suffered by
HSBC and/or the relevant HSBC Group Member for the initial handling of any
claim upon the presentation by HSBC and/or the relevant HSBC Group Member of
invoices or receipts which evidence that such expenses or other amounts have
been incurred.

13.6                          HSBC shall and if HSBC has not done so
HSBC shall use reasonable endeavours to procure that the relevant HSBC Group Member shall:

13.6.1                  not unreasonably delay in giving notice in
writing to Consultant or the relevant Consultant Affiliate of any claim referred to in clause 13.5, where
such delay will result in Consultant or the relevant Consultant
Affiliate failing to meet any statutory
deadline relating to the defence of such claim;

13.6.2                  not make any admission of liability or agree to
any settlement or compromise of any such claim without the prior written
consent of Consultant or the relevant Consultant Affiliate which shall not be unreasonably withheld or
delayed; and

13.6.3                  not unreasonably decline to provide
Consultant or the relevant Consultant Affiliate at Consultant’s or the
relevant Consultant Affiliate’s request and
expense, reasonable assistance in connection with those negotiations and
litigation.

Consultant or the relevant
Consultant Affiliate shall not be responsible to indemnify HSBC or the relevant
HSBC Group Member for any losses, liabilities, damages or expenses to the extent that they are caused by the failure
of HSBC or the relevant HSBC Group Member to meet the obligations stated above.

13.7                           Without
prejudice to the above, Consultant or the relevant Consultant Affiliate will
pay promptly, any legal damages, costs and expenses suffered by HSBC and/or any
HSBC Group Members including any financial awards against HSBC and/or such HSBC
Group Members in such action which are attributable to such claim, provided that
HSBC or the relevant HSBC Group Member gives Consultant or the relevant
Consultant Affiliate reasonable notice in writing of the claim.

 21
 

 

13.8                           Should
a Deliverable or the supply of Services become, or in HSBC’s opinion be
reasonably likely to become the subject of a claim of infringement of an
Intellectual Property Right, Consultant shall, after consultation with HSBC,
promptly either:

13.8.1                  procure for HSBC and all HSBC Group Members the right to
continue using the Deliverable or receiving the Services; or

13.8.2                  replace or modify the Deliverable or
Services to make it non-infringing without affecting the performance,
functionality or specification.

13.9                           If
Consultant is unable to achieve the purpose in clauses 13.8.1 or 13.8.2 within
three (3) months from the first date of prevention or disturbance of the
Deliverable’s use occurs then, without prejudice to HSBC’s or the relevant HSBC
Group Member’s other rights and remedies, Consultant will return or procure the
return to HSBC and the HSBC Group Members all Charges paid in respect of the
Deliverable whose use is prevented or disturbed, and HSBC or the relevant HSBC
Group Member will (to the extent that such Deliverable is still within its
control and shall not cause loss or damage of any sort to HSBC or relevant HSBC
Group Member to return such affected Deliverable) return the affected
Deliverable to Consultant or the relevant Consultant Affiliate.

14                                  LIABILITY

14.1                           Neither
HSBC nor any HSBC Group Member shall be liable to Consultant or any Consultant
Affiliate, nor shall Consultant or any Consultant Affiliate be liable to HSBC
or any HSBC Group Member, in negligence, breach of contract, breach of
statutory duty or otherwise due to, under and/or arising out of or in
connection with this Agreement to the extent such loss or damage is
consequential, indirect, special or punitive, whether or not that party had
been advised of the likelihood of any such loss or damage.  In no event shall either party be liable for
lost profits or lost business of the other party whether or not that party had
been advised of the likelihood of any such loss or damage.

14.2                           The
liability of HSBC and any HSBC Group Members (together in aggregate) to
Consultant and any Consultant Affiliate in negligence, breach of contract,
breach of statutory duty or otherwise due to, under and/or arising out of or in
connection with this Agreement, in respect of any claim, or series of connected
claims arising out of the same cause in any calendar year, shall not exceed the
greater of: (a) US$5,000,000 (five 
million US dollars); or (b) the amounts paid and payable under the
Statement of Work that gave rise to the claim. 
Consultant or any Consultant Affiliate is responsible for obtaining if
it considers appropriate insurance in respect of any loss excluded by this
Agreement or exceeding the above limit. 
The limitation stated in this clause 14.2 shall not apply to any claim
against HSBC or any HSBC Group Member for non-payment of Charges.  Notwithstanding the foregoing, in no event
shall the liability of HSBC and all HSBC Group Members in aggregate for all
claims that have arisen in each calendar year under this Agreement, exceed the
sum of US$30,000,000 (thirty million US dollars).

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14.3                           The
liability of Consultant and any Consultant Affiliate (together in aggregate) to
HSBC or any HSBC Group Member, in negligence, breach of contract, breach of
statutory duty, breach of warranty or otherwise due to, under and/or arising
out of or in connection with this Agreement, in respect of any claim, or series
of connected claims arising out of the same cause, shall not exceed the greater
of: (a) US$15,000,000 (fifteen million US dollars); or (b) the amounts paid and
payable under the Statement of Work that gave rise to the claim.  Notwithstanding the foregoing, in no event
shall the liability of Consultant and all Consultant Affiliates in aggregate
for all claims that have arisen in each calendar  year under this Agreement, exceed the sum of
US$100,000,000 (one hundred million US dollars).

14.4                           Neither
HSBC nor any HSBC Group Member shall be liable to Consultant or any Consultant
Affiliate, in negligence, breach of contract, breach of statutory duty or
otherwise due to, under and/or arising out of or in connection with this
Agreement to the extent that such loss or damage is:

14.4.1      a loss of profits; or

14.4.2      a loss of business; or

14.4.3      a loss of data

whether or not HSBC or the relevant HSBC Group Members, had been
advised of the possibility of such loss or damage.

14.5                           In
the event that the Consultant or a Consultant Affiliate has a claim against
HSBC or an HSBC Group Member arising out of or relating to a SoW, the
Consultant or the Consultant Affiliate shall bring such claim against HSBC or
the relevant HSBC Group Member with whom that Consultant or Consultant Affiliate
has entered into the SoW and performed the Services for. The Consultant or the
Consultant Affiliate (as applicable) shall not institute legal proceedings or
make any claim against both HSBC and the relevant HSBC Group Member in relation
to the same loss or damage that the Consultant or the Consultant Affiliate (as
applicable) has incurred.  Except in the
case of any breach of a provision relating to Confidential Information, the
parties agree that they will use their Reasonable Endeavours to resolve all
disputes and issues in good faith at the local level before commencing any
litigation or formal claims.

14.6                           HSBC
shall be entitled to recover from Consultant damages in respect of any
liability of Consultant or a Consultant Affiliate to any HSBC Group Member
arising out of or relating to this Agreement as though the relevant loss or
damage had been suffered by HSBC.  HSBC
and/or HSBC Group Members shall not be entitled to recover from Consultant
and/or Consultant Affiliate twice in respect of the same loss or damage.

14.7                           No
limit on liability shall apply to claims for death and personal injury,
fraudulent statements, wilful misconduct, breach of confidentiality under
clause 15 (Confidentiality), or any third party claim for infringement of
Intellectual Property Rights and/or Consultant 

 23
 

 

Properties and/or Residuals under clause 13 (Intellectual Property
Rights) or any claims relating to a breach of clause 17 (Data Protection).

15                                  CONFIDENTIALITY

15.1                           Consultant
shall and shall procure that all Consultant Affiliates require their
respective  employees, agents and
contractors engaged in relation to the Services to enter into and observe the
terms of a Non Disclosure Agreement substantially in the form set out at Attachment
A and (if applicable) a Declaration of Conformity Agreement substantially in
the form set out at Attachment A with HSBC or the relevant HSBC Group Member
prior to commencing the performance of any Service.

15.2                               HSBC and the
relevant HSBC Group Member and Consultant and the relevant Consultant Affiliate
shall:

15.2.1                                                      keep
confidential: (a) in the case of HSBC and the relevant HSBC Group Member, the
Confidential Information of Consultant and the relevant Consultant Affiliate
respectively; and (b) in the case of the Consultant and the relevant Consultant
Affiliate, the Confidential Information of HSBC and the relevant HSBC Group
Member respectively;

15.2.2                                                      do not disclose
or transfer to any third party (other than as permitted hereunder) any such
Confidential Information; and

15.2.3                                                      do not use
(including by making unnecessary copies) other than as strictly necessary for
the performance of this Agreement any such Confidential Information.

15.3                               HSBC, the
relevant HSBC Group Member, Consultant or the relevant Consultant Affiliate
shall be permitted to disclose another entity’s Confidential Information where
such disclosure is required by applicable law or regulation (including by the
Financial Services Authority), subject to that entity required to make the
disclosure giving the entity whose Confidential Information is to be disclosed
notice of the disclosure (where it is not prevented from doing so by law or
applicable regulation), and reasonable assistance if that entity wishes to
challenge the requirement to make the disclosure.

15.4                               HSBC and the
relevant HSBC Group Members and Consultant and the relevant Consultant
Affiliates shall be permitted to provide another entity’s Confidential
Information to any other entity, provided such disclosure is strictly necessary
for the purposes of or in connection with this Agreement and provided that HSBC
and Consultant shall each ensure that HSBC Group Members and Consultant
Affiliates respectively comply with the confidentiality requirements of this
Agreement as if they were parties.

15.5                               Each party
acknowledges that damages will not be an adequate remedy for any breach of this
Clause 15 and shall not seek to resist an application for an injunction in
respect of any breach or threatened breach of Clause 15 on the grounds that
there is an alternative adequate remedy in damages.

16                                  PUBLICITY

 24
 

 

16.1         Consultant shall not
and shall procure that all Consultant Affiliates do not disclose the making of
this Agreement or any SoW in any journal magazine or publication or any other
medium or otherwise use HSBC’s or any HSBC Group Member’s names or logos
(including any trade marks) in any of its advertising or publicity material
without HSBC’s prior written consent which may be withheld or given in HSBC’s
absolute discretion.

16.2         Notwithstanding
clause 16.1, Consultant and Consultant Affiliates may include a reference to
the name of HSBC Holdings plc and/or the specific legal entity name of any HSBC
Group Member which uses their Services (and not, for the avoidance of doubt,
any of HSBC’s logos or trade marks or any reference to other HSBC Group
Members) on their lists of clients.

17                                  DATA
PROTECTION

17.1                           The
parties agree to comply with the provisions relating to data protection as
contained in Attachment D.

18                                  BREACH
AND TERMINATION

18.1         HSBC may terminate
this Agreement, these Terms and Conditions (in which case for the avoidance of
doubt, the SoWs issued hereunder shall continue until expired or terminated) or
any one or more of the SoWs (in which case for the avoidance of doubt, the
remaining SoWs issued hereunder shall continue until expired or terminated):

(a)                                  immediately
on written notice if it becomes apparent that the Consultant or Kanbay has
become insolvent or has had a receiver appointed or has called a meeting of
creditors or resolved  to go into
liquidation (except for bona fide amalgamation or reconstruction while solvent)
or has had a petition lodged against it in relation to any potential
insolvency, and whichever of the foregoing that occurs is not successfully
opposed within thirty (30) days of being lodged;

(b)                                 immediately
if there is a change of control (as defined in clause 1.1(e) above) of the
Consultant or Kanbay; or

(c)                                  immediately
on written notice if the Consultant fails to cure any material or persistent
default of these Terms and Conditions within thirty (30) days of written notice
requiring the default to be remedied.

For the purposes of this clause 18.1, the
Consultant and HSBC each acknowledge and agree and shall procure the
acknowledgement and agreement of the relevant Consultant Affiliates and HSBC
Group Members that HSBC shall be entitled to terminate SoWs pursuant to this
clause 18.1 notwithstanding that it is not a party to that SoW.

18.2                           HSBC or
the relevant HSBC Group Member may terminate in whole or in part any supply of
Services or Deliverables under any relevant SoW or any relevant SoW:

 25
 

 

(a)                                  at
any time for any reason whatsoever without the imposition of any penalty in
relation to all or any part of any Services or Deliverables on written notice
of three (3) months or any shorter period set out in the relevant SoW;

(b)                                 immediately
on written notice if it becomes apparent that the Consultant or any Consultant
Affiliate has become insolvent or has had a receiver appointed or has called a
meeting of creditors or resolved to go into liquidation (except for bona fide
amalgamation or reconstruction while solvent) or has had a petition lodged
against it in relation to any potential insolvency, and whichever of the
foregoing that occurs is not successfully opposed within thirty (30) days of
being lodged;

(c)                                  immediately
if there is a change of control (as defined in clause 1.1(e) above) of the
Consultant, or any Consultant Affiliate performing Services hereunder, in
favour of a third party that is not a Consultant Affiliate; or

(d)                                 immediately
on written notice if the Consultant or any Consultant Affiliate fails to cure
any material or persistent default within thirty (30) days of written notice
requiring the default to be remedied.

18.3                           Consultant
may terminate these Terms and Conditions or the relevant SoW in the event that
HSBC fails to cure any material or persistent default that is capable of being
remedied, within thirty (30) days of receipt of written notice requiring the
default to be remedied, save that if the default is caused by any act or omission
of an HSBC Group Member or otherwise relates to the activities of an HSBC Group
Member, Consultant shall only be entitled to terminate this Agreement in
accordance with the procedure set out at clause 20 (Escalation).

18.4                           In the
event of any termination of this Agreement, these Terms and Conditions or any
SoW (in full or in part) for whatever reason, the Consultant shall remove and
return to HSBC or the relevant HSBC Group Member or, at HSBC’s or the relevant
HSBC Group Member’s option certify destruction of all copies of all
Deliverables (or in the case of partial termination, Deliverables relevant to
the Services that have been terminated), along with any documentation,
information or materials produced during the performance of the Agreement and all
materials, documents, equipment, software, data or other materials provided by
HSBC (or an HSBC Group Member) in relation to the Services in its control or
possession.  Without prejudice to the
above, in the event of termination of this Agreement for any reason whatsoever,
(i) HSBC and HSBC Group Members may keep copies of any Consultant Confidential
Information or other materials or documentation for archival and/or regulatory
purposes as stipulated by any governing regulatory body of HSBC or any HSBC Group
Member (eg FSA), and Consultant shall procure such party is entitled to retain
any such materials of any Consultant Affiliate for such purposes.

18.5                           Except
for termination by HSBC under clause 18.2(a) or clause 19 (Force Majeure), HSBC
shall be entitled to a pro rata refund of pre-paid Charges in respect of any
terminated Service 

 26
 

 

or Deliverable that relate to any period after the relevant termination
date unless otherwise specified in the applicable SoW.

18.6                           Unless
otherwise stated by HSBC in its notice to terminate, termination of these Terms
and Conditions shall be without prejudice to any on-going Services being
performed under any SoW issued hereunder, the performance of which shall
continue subject to these Terms and Conditions until completion or earlier
termination.  For the avoidance of doubt,
notice to terminate a SoW issued by either party shall terminate all Services
being provided under that SoW upon expiry of the notice.

18.7                           Except
for all SoWs which are Fixed-price Engagements, HSBC or the relevant HSBC Group
Member shall have the right at any time to postpone, suspend or cancel a SoW
immediately (but subject always to clause 18.10) upon giving written
notice.  HSBC or the relevant HSBC Group
Member acknowledges that Consultant or the applicable Consultant Affiliate may
re-assign its affected personnel to other projects and clients during any such
postponement or suspension, and that such personnel may no longer be available
to perform Services if/when HSBC or the relevant HSBC Group Member desires to
re-commence the Services.  Consultant and
Consultant Affiliates shall have no liability for the unavailability of
personnel as a result of any SoW postponement or suspension hereunder except
that when the Services are re-commenced on prior reasonable notice from HSBC,
Consultant and Consultant Affiliates shall provide personnel (“Replacement Personnel”) to replace
the affected personnel and such Replacement Personnel shall have at least the
same level of skills and qualifications as the personnel that they have
replaced.

18.8                           Unless
otherwise agreed in writing, any such suspension of a SoW shall be for a
maximum period of six (6) months whereupon the Services shall be re-commenced
or the SoW shall be terminated immediately on notice by HSBC or the relevant
HSBC Group Member.

18.9                           HSBC
acknowledges that where the Consultant has undergone its annual fee review
during the period of suspension, then any re-instatement of that SoW shall,
subject to negotiation, be subject to a revision of the previously agreed
Charges to take into account the increase in fees.

18.10                     On receipt of the HSBC’s or the
relevant HSBC Group Member’s instructions under clause 18.7, the Consultant or
the relevant Consultant Affiliate shall be entitled to payment for Services completed
to the reasonable satisfaction of HSBC or the relevant HSBC Group Member’s up
to the time that the notice takes effect and in respect of any costs and
expenses reasonably and properly incurred by the Consultant or the relevant
Consultant Affiliate relating to the equipment, materials, personnel or
services obtained or ordered wholly or substantially in connection with
performing the Services which cannot reasonably be defrayed elsewhere.

18.11                     Termination of any part of this
Agreement shall not affect rights accrued prior to termination.

19                                  FORCE
MAJEURE

 27
 

 

Neither party and no HSBC Group Member or Consultant Affiliate shall be
liable to the other for any delays or failures attributable to any Event of
Force Majeure (other than delays or failures caused by a party’s contractors or
agents, for which the delaying party shall be responsible), save that the
delaying party shall use its Best Endeavours to resume performance as quickly
as possible and shall promptly give the other party full particulars of the
failure or delay and consult with the other party concerning the failure or
delay from time to time as appropriate. 
If any such failure or delay continues for a period of three (3) months
or any sixty (60) days in a one hundred and twenty (120) day period the
non-delaying party shall be entitled to terminate this Agreement immediately on
giving to the other written notice.

20                                  ESCALATION

20.1                           If any relevant HSBC Group Member commits any act
that would constitute a material breach by HSBC of the terms of the Agreement,
then Consultant (or at Consultant’s discretion Kanbay) will notify HSBC and the relevant HSBC Group
Member in writing of such breach.

20.2                           If the breach is not remedied within fifteen (15)
Business Days following receipt of such notification by HSBC and the relevant
HSBC Group Member (whichever is later), then Consultant (or at
Consultant’s discretion Kanbay) shall be
entitled to demand a meeting with a senior representative of HSBC (and, at HSBC’s
option, the relevant HSBC Group Member) at which the parties will in good faith
attempt to resolve any outstanding breach.

20.3                           If the breach has not been remedied following a
further period of thirty (30) days after the conclusion of the meeting,
Consultant shall be entitled to serve written notice, together with the reasons
for the termination, on HSBC (with a copy to the relevant HSBC Group Member) to
terminate the SoW in relation to the HSBC Group Member in breach in forty-five
(45) days (such termination only to take effect if the breach has not been
remedied within that forty-five (45) day period).

21                                  DISPUTES

21.1                           If
at any time a dispute arises out of or in connection with this Agreement HSBC
and the Consultant (or at Consultant’s discretion Kanbay) (together the “Parties”)
shall in the first instance meet in good faith with a view to resolving the
dispute within a period of ten (10) Business Days from the day the dispute
first arises.

21.2                           Should
the Parties not be able to resolve the dispute within the ten (10) Business
Days, then both Parties shall refer the matter to their own appropriate level
of senior management respectively for resolution.

21.3                           If
the relevant senior managers are unable to resolve the dispute within a further
ten (10) Business Days, then the Parties will attempt to settle the dispute by
mediation in accordance with the Centre for Dispute Resolution (CEDR) Model
Mediation Procedure. To initiate a 

 28
 

 

mediation the initiating party must give notice in writing to the other
party and send a copy of the notice to CEDR. 
The mediation will start not later than ten (10) Business Days after the
notice.  Subject to clause 21.5, the
Parties agree not to commence any court proceedings in relation to the dispute
until they have attempted to settle the dispute by mediation and that mediation
has either terminated or failed.

21.4                           Unless
otherwise agreed in writing, the costs of any mediation carried out pursuant to
this clause shall be shared equally between the parties.

21.5                           Nothing
in this Agreement shall prevent either Party from taking such action as it
deems appropriate (including any application to a relevant court) for
injunctive or other emergency or interim relief in relation to its Intellectual
Property Rights or Confidential Information (or the Intellectual Property
Rights or Confidential Information of, in the case of HSBC any HSBC Group
Member or the Intellectual Property Rights or Confidential Information of, in
the case of Consultant, any Consultant Affiliate).

22                                  ADMINISTRATION
AND MANAGEMENT OF AGREEMENT

22.1                           Consultant
recognises the importance of both parties effectively utilising this Agreement
and will procure the dedication of  a
central team of Kanbay’s representatives to manage the account commercially and
technically and to report centrally on global activities and who are
appropriately authorised to make decisions concerning this Agreement. In
addition, unless otherwise agreed appropriate Consultant shall procure senior
personnel from Kanbay to meet quarterly with senior personnel from HSBC on a
central basis, to review the execution and management of this Agreement.

22.2                           Except
where HSBC expressly instructs otherwise, each party shall be entitled to
assume that instructions (whether or not in writing and howsoever communicated)
have been properly authorised by the other if they are given by the Project
Manager (in the case of HSBC) or the Senior Client Engagement Manager or Senior
Delivery Manager (in the case of Consultant).

22.3                           Consultant
(or at Consultant’s discretion Kanbay) shall monitor the performance of the
Services and any Deliverables and shall inform HSBC and HSBC Group Members in
writing of any material problems, errors or defects as soon as known.

23                                  ASSIGNMENT

23.1                           The
Consultant shall not without the prior written consent of HSBC assign,
sub-contract, transfer or part with any right or obligation under this
Agreement nor any part thereof nor delegate any of its responsibilities or
obligations hereunder.  However,
Consultant or any Consultant Affiliate shall have the right to subcontract, in
its own discretion and without HSBC’s prior written consent, all or any portion
of the Services to be provided hereunder to any Consultant Affiliate and
Consultant acknowledges and agrees that it shall be liable for all acts and/or
omissions of the Consultant Affiliate.

 

 29

 

23.2                           Where
HSBC permits the Consultant to sub-contract any of its obligations under this
Agreement, the Consultant shall be liable for the acts and omissions of the
sub-contractor. The Consultant hereby indemnifies HSBC and the HSBC Group
Members against any damage, liability or other loss that HSBC and the HSBC
Group Members sustain as a result of the acts and omissions of such
sub-contractors.

23.3                           HSBC
may assign, transfer, part with or sub-contract any of its rights,
responsibilities or obligations under this Agreement without the prior consent
of the Consultant. In the case of any assignment or sub-contracting by HSBC of
any of its obligations under this Agreement, HSBC agrees that it shall be
liable for all acts and/or omissions of its assignee or sub-contractor.

24                                    VARIATION

24.1                              No
variation to these Terms and Conditions shall be effective unless in writing
signed by a duly authorised officer of each of HSBC and Consultant. For the
avoidance of doubt, no document, letter or any other correspondence issued or
executed by any of HSBC’s or Consultant’s personnel respectively shall be
effective unless such individuals are duly authorised officers of the entity
they are executing on behalf of.

24.2                           Unless otherwise
permitted in a SoW, no variation to a SoW shall be effective unless in writing
signed by a duly authorised officer of each of the entities that enter into
that SoW. For the avoidance of doubt, no document, letter or any other
correspondence issued or executed by an entity’s personnel shall be effective
unless such individuals are duly authorised officers of the entity they are
executing on behalf of.

25                                    NOTICES

25.1                           All
notices shall be given in writing (including where agreed by email) and shall
be sent to the following:-

HSBC:

for the attention of:

Head of IT Planning & Finance

Group IT

HSBC Holdings plc

8 Canada Square

London E14 5HQ

Fax: 44(0)207 991 4704

 30
 

 

With a copy to:

Head of Group Purchasing

HSBC Holdings plc

8 Canada Square

London E14 5HQ

Fax: 44(0)207 992 4818

Consultant:

for the attention of:

President

Kanbay Europe Ltd.

Compass House, Vision Park

Histon

Cambridge, CB4 9AD UK

Fax: 44 1223 257 786

With a copy to:

Kanbay International, Inc.

6400 Shafer Court

Rosemont, Illinois 60018

Attention: Vice President and General Counsel

Fax: (847) 384-0500

25.2                           Notices
relating to the activities of any relevant HSBC Group Member shall be copied to
the relationship manager or other senior representatives of that HSBC Group
Member.

25.3                           A
notice sent by post or courier shall be deemed (in the absence of evidence of
earlier receipt) to have been delivered forty-eight (48) hours after despatch.
A notice sent by electronic means shall be deemed to have been received on the
first working day following its despatch provided (in the case of fax)
notification of a successful and complete transmission is obtained.

26                                  SET-OFF

Where the Consultant or Consultant Affiliates have incurred any
undisputed liability to HSBC or any HSBC Group Member under this Agreement HSBC
or any HSBC Group Member may set-off the undisputed amount of such liability
against any sum that would otherwise be due to Consultant or Consultant
Affiliate under this Agreement or otherwise.

27                                  FURTHER
ASSURANCE

The Consultant shall and shall procure that any relevant Consultant
Affiliate shall at their sole cost and expense use all Reasonable Endeavours to
do or procure to be done all such further acts and things and execute or
procure the execution of all such other documents as 

 31
 

 

HSBC and the relevant HSBC Group Member may from time to time reasonably
require for the purpose of giving HSBC and the HSBC Group Members the full
benefit of the provisions of this Agreement and for the fulfilment of their
respective obligations under this Agreement.

28                                  COUNTERPARTS

These Terms and Conditions (or any SoW) may be executed in any number
of counterparts, each of which, when executed and delivered, shall be an
original, and all the counterparts together shall constitute one and the same
instrument.

29                                  INSURANCE

Consultant shall maintain throughout the Term of this Agreement and any
SoW and for six years thereafter adequate reasonable insurance cover with a
reputable insurer acceptable to HSBC in relation to Consultant’s and Consultant
Affiliates’ risks under this Agreement. Consultant shall at HSBC’s request from
time to time furnish such evidence as HSBC may reasonably request to
demonstrate that such insurance cover has been maintained in force with such
insurer, and copies of any policy documentation requested by HSBC.

30                                  INTERNAL
AND EXTERNAL AUDIT

30.1                           Consultant
shall and shall procure that Consultant Affiliates shall provide access to the
Deliverables and all other materials relating to the provision of the Services
to any internal or external auditors or examiners of HSBC or the HSBC Group
Members.

30.2                           HSBC
and the HSBC Group Members are subject to certain regulatory requirements
(including from the Financial Services Authority, the Bank of England and other
competent regulatory bodies in other jurisdictions) and as a result, in
addition to the Consultant’s obligations under Clause 30.1 Consultant shall,
upon request and reasonable prior notice, provide to or procure for HSBC, HSBC
Group Members or internal or external auditors or examiners of HSBC or HSBC
Group Members, copies of Consultant’s or any relevant Consultant Affiliate’s
records pertaining to Consultant’s and Consultant Affiliates’ compliance with
their obligations regarding the transactions contemplated hereunder and/or a
statement attesting to Consultant’s or the relevant Consultant Affiliate’s
ongoing financial viability in the opinion of, and issued by, Consultant’s or
the relevant Consultant Affiliate’s independent third party accounting firm.

30.3                           HSBC
or a relevant HSBC Group Member may by itself or by engaging a reputable third
party auditor(s), audit the Consultant’s performance of this Agreement, or
Consultant shall procure such right in relation to any Consultant Affiliate
requested by HSBC or any HSBC Group Member. HSBC or the relevant HSBC Group
Member shall give the Consultant (or the Consultant Affiliate) reasonable prior
notice of any intended audit. The Consultant shall use its Reasonable
Endeavours to provide or procure for the HSBC Group Member or relevant auditor
access to all information, facilities, materials, installations, premises,
procedures or other resources (including staff) as it shall reasonably require
to undertake the audit, subject to HSBC or the relevant HSBC Group Member
requiring the auditor to enter 

 32
 

 

into a reasonable confidentiality agreement with the Consultant (or
Consultant Affiliate) restricting disclosure of the Consultant’s (or Consultant
Affiliate’s) Confidential Information to a reasonable extent. Notwithstanding
the foregoing, Consultant shall and shall procure that Consultant Affiliates
shall provide all information, access and assistance as is required to enable
HSBC or a HSBC Group Member to comply with any applicable laws, regulations or
regulatory requests.

30.4                           Consultant shall (and shall procure that
Consultant Affiliates shall) comply with any request of HSBC or any HSBC Group
Member for information relating to the Services or any SoW that may be required
by HSBC or any HSBC Group Member to enable them to comply with the US
Sarbanes-Oxley Act of 2002 (and any resultant, similar or replacement legislation,
rules or guidance).

31                                  RELATIONSHIP
OF THE PARTIES

31.1                           The
relationship of HSBC and the HSBC Group Members, and Consultant, Consultant
Affiliates and Consultant Personnel shall be that of an independent contractor
and not employer-employee. No Consultant Personnel or other employee, agent,
contractor or representative of Consultant or Consultant Affiliates shall make
any representations on behalf of HSBC or the HSBC Group Members nor may bind
the same to any obligation, purchase or liability. Consultant will be
responsible for the acts and omissions of its (or any Consultant Affiliates’)
Consultant Personnel or other employees, agents, contractors or representatives
in respect to HSBC’s and HSBC Group Member’s security requirements and business
policies in performing obligations under this Agreement (including while on the
premises of HSBC and HSBC Group Members).

31.2                           Consultant (or
Consultant Affiliates, as applicable) will have sole authority and independent
control over the means by which the Services are performed. Consultant shall
retain the right to perform services for others during the term of this
Agreement. Consultant is not an agent of HSBC or any HSBC Group Member and has
no authority whatsoever to bind HSBC or any HSBC Group Member by representations,
contract or agreement of any kind.

32                                  GENERAL

32.1                           Entire Agreement

The provisions of this Agreement, as amended, and the applicable SoW
shall constitute the entire Agreement between the parties with respect to the
Services and Deliverables, and, unless otherwise expressly provided, supersede
all prior agreements, representations, statements, negotiations and
undertakings (other than representations made fraudulently).

 33
 

 

32.2                           Severability

If any provision of this Agreement is held by a court to be invalid or
unenforceable and can be deleted without altering the essence of the Agreement,
the unlawful provision will be severed and the remaining provisions will remain
in full force or effect.

32.3                           Survival

Clauses 1 (Definitions and Interpretation), 13 (Intellectual Property
Rights), 14 (Liability), 15 (Confidentiality), 16 (Publicity), 17 (Data
Protection), 18 (Breach and Termination), 26 (Set-Off), 29 (Insurance) and 30
(Internal and External Audit), this clause 32 (General) and all other provisions
of these Terms and Conditions or as they are incorporated and apply to a SoW
intended to survive termination shall survive termination as the context
requires.

32.4                           Waiver

No relaxation forbearance delay or negligence by either party in
enforcing any of the terms and conditions of this Agreement or the granting of
time by either party to the other shall prejudice affect or restrict the rights
and powers of that party. No waiver of any terms or conditions of this
Agreement shall be effective unless made in writing and signed by the party
against which enforcement of the waiver is sought. The waiver of any breach of
any term or condition of this Agreement shall not be construed as a waiver of
any subsequent breach or condition whether of the same or different nature. Except
where otherwise explicitly agreed all remedies in this Agreement are cumulative
and not exclusive of any other remedy or right in this Agreement or at law.

32.5                           Foreign Laws

The supply of Services or Deliverables in certain territories may be
subject to certain amended or additional terms set out in a SoW, which shall
apply in relation to any such supply in any relevant territory.

32.6                           Third Parties

Except as set forth in these Terms and Conditions or a SoW and
throughout these Terms and Conditions or a SoW in relation to HSBC Group
Members and Consultant Affiliates, nothing in these Terms and Conditions or a
SoW is intended to, nor shall create any right enforceable by any third party
or person not a party to these Terms and Conditions or a SoW and the Contracts
(Rights of Third Parties) Act 1999 shall not otherwise apply to these Terms and
Conditions or a SoW. The consent of a third party (including a HSBC Group
Member or a Consultant Affiliate) shall not be required for the amendment, variation
or termination of these Terms and Conditions or a SoW (subject to Clause 1.1(i)
as such provision is incorporated in the SoW).

32.7                           No Partnership

No part of this Agreement is intended to create or record any
employment, partnership, joint venture, agency or other such relationship
between HSBC, HSBC Group Members and the Consultant or Consultant Affiliates
(or their personnel). For the avoidance of doubt all personnel of the
Consultant or the Consultant Affiliates shall remain employees or suppliers 

 34
 

 

to the Consultant or Consultant Affiliates, and shall not be regarded
as employees, agents, contractors or representatives of HSBC or any HSBC Group
Member.

32.8                           Governing Law

This Agreement shall be governed in all respects by
the Laws of England and Wales and the parties submit to the exclusive
jurisdiction of the English Courts

Agreed for and on behalf
of :

	
  KANBAY EUROPE LIMITED

  	
   

  	
  HSBC HOLDINGS plc

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signed

  	
  /s/ William Weissman

  	
   

  	
  Signed

  	
  /s/ S K Green

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
  William Weissman

  	
   

  	
  Name

  	
  S K Green

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title

  	
  CFO

  	
   

  	
  Title

  	
  Group Chief Executive

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date

  	
  27/04/05

  	
   

  	
  Date

  	
  22 April 2005

  

 35
 

 

ATTACHMENT A — Annex 1 - UK Declaration of
Conformity

DECLARATION OF CONFORMITY

1.                                      I
hereby confirm that I have read and will conform during the period of my
temporary assignment to the HSBC rules as may be amended from time to time in
respect of the following :

a)                                     Specific
policies and standards concerning Information Technology and Information Technology
Security Guidelines. I understand that the loading or use of deliverables not
provided and authorised by the HSBC on HSBC computer systems and/or the loading
or use of deliverables authorised by HSBC on any personal or non HSBC equipment
is strictly forbidden;

b)                                    UK
Staff Dealing Rules in relation to securities dated April 1994;

c)                                     The
Data Protection Act 1998;

d)                                    HSBC’s
Equal Opportunities policy;

e)                                     Emergency
and Evacuation Procedures and the Guide to Health and Safety and Fire;

f)                                       Security
rules specific to the building where I am to carry out my temporary assignment;

g)                                    Standards
of dress;

h)                                    Specific
rules relating to the HSBC’s “No Smoking” policy;

i)                                        Any
specific rules and standards to be adhered to in the course of my temporary
assignment advised to me by HSBC Holdings plc.

2.                                      And
confirm that:

a)                                     I
have never been convicted of a criminal offence involving fraud or dishonesty;

b)                                    I
have never been summarily dismissed in connection with or convicted of any
offence under the legislation relating to banking, building societies,
companies, consumer credit, credit unions, friendly societies, industrial or
provident societies, insolvency, insurance or other financial services;

c)                                     I
have never been involved in any complaint concerning an alleged breach of the
rules of a regulatory authority in respect of unsolicited calls.

 36
 

 

 

	
  Signed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witnessed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Department

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  

 

 37
 

 

ATTACHMENT A — Annex 2 - Declaration of
Confidentiality

HSBC Holdings plc

(and other HSBC Group Companies)

Declaration of Confidentiality

I, the undersigned, hereby and solemnly undertake that I will at all
times maintain strict confidentiality with regard to, and will not for my own
or anyone else’s use (whether for profit or not) make copies of or notes about,
any and all matters of a confidential nature concerning HSBC Holdings plc and
any company in the HSBC Group (Group having the definition given in Section 53
of the Companies Act, 1989) their customers, the state of their accounts and
any other matter relating to the HSBC Holdings plc and other HSBC Group
companies business except where required by law to disclose such information or
with the prior consent of HSBC Holdings plc, the HSBC Group Company or the
person to whom any duty of confidence is owed. Should I be by law, required to
make such a disclosure I shall so far as lawful promptly inform the relevant
HSBC Group Company of such a requirement.

I undertake to deliver up to HSBC Holdings plc or to such other HSBC
Group Company as is appropriate all and any records in any medium which I may
hold at the end of my assignment with any such company.

I acknowledge that damages will not be an adequate remedy for any
breach of this obligation and I shall not seek to resist an application for an
injunction in respect of any breach or threatened breach of this obligation on
the grounds that there is an alternative adequate remedy in damages.

	
  Signed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Witnessed

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Department

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  Date

  	
   

  	
   

  

 

 38
 

 

ATTACHMENT B — ADDITIONAL PARTIES ENTITLED TO
THE BENEFIT OF THIS AGREEMENT

None as at the date of
execution of these Terms and Conditions.

 39
 

 

ATTACHMENT C —  PRO FORMA STATEMENT OF WORK

SoW Number:

	
  Project Name:

  	
   

  
	
  Consultant
  - Project Manager Signature:

  	
  Date:

  
	
  Customer
  - Project Manager Signature:

  	
  Date:

  

 

THIS STATEMENT OF WORK IS
MADE THIS _________ DAY OF _________ [200  ]

Between:

[          ]
whose registered office is [          ]
(Registered Number [          ])
which shall hereinafter be referred to as “Customer”; and:

[          ]
whose registered office is [          ]
(Registered Number [          ])
which shall hereinafter be referred to as “Consultant”.

Whereas:

A.           HSBC Holdings plc and
Kanbay Europe Ltd have entered into a Global Supply Agreement dated 19th April 2005 (“Global
Supply Agreement”) which sets out the terms and conditions under
which Kanbay Europe Ltd and/or its affiliates may provide consulting services
to HSBC Holdings plc and/or its affiliates. Such services shall be detailed in
an agreed Statement of Work.

B.             The parties agree
that the Consultant shall provide the services set out in this Statement of
Work to the Customer in accordance with the terms and conditions set out
herein.

Now it is agreed as
follows:

The parties agree that
the terms and conditions of the Global Supply Agreement shall apply to and be
incorporated into this Statement of Work. For the avoidance of doubt, the parties
agree that in the event of any conflict between a provision of the Global
Supply Agreement and a provision of this Statement of Work, clauses 1.1(g),(h)
and (i) of the Global Supply Agreement shall apply to resolve any such
conflict.

Customer and Consultant
each acknowledge and agree that it will comply with the provisions of the
Global Supply Agreement as if it were a party to that agreement.

1.              Commencement Date

This Statement of Work
shall commence on [          ]
(“Effective Date”).

2.              Services/Tasks

For the purposes of this
Statement of Work, the “Services” shall consist of the following:

 40
 

 

The Deliverables
[will/will not] be used in a live production environment (see clause 4.3 of the
Global Supply Agreement).

3.              Specification /
Requirements

 

4.              Implementation
Plan/Timetable for completion of Services

 

5.              Acceptance Tests

 

6.     Charges

[First Year]

 

[Subsequent
Years]

7.              Invoice date(s)

 

8.              Consultant Key
Personnel

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
  Title

  	
   

  	
   

  	
  Start — Expiration

  	
   

  	
   

  	
  Local or Offshore

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

9.              Other Consultant
Personnel

	
  

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name

  	
   

  	
   

  	
  Title

  	
   

  	
   

  	
  Start — Expiration

  	
   

  	
   

  	
  Local or Offshore

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  	
   

  

 

10.       Consultant Project Manager

 

11.       Customer Project Manager

 41
 

 

12.       Reporting and Meetings

 

13.       Scope of any training to be
provided

[Detail
scope of the training]

The training will be
provided [at no charge]/[at a charge of [insert]].

14.       Acceptance Certificate

Is an Acceptance
Certificate required to be issued for each Deliverable? Yes/No (See clause 6.2)

 42

 

This
form statement of work was used for engagements entered into under the
Consulting Agreement, dated November 14, 1994, between Kanbay Incorporated and
HSBC Technology & Services (USA) Inc. (the “Old Agreement”).  The Old Agreement was terminated as of April
19, 2005 and this statement of work is now governed by the terms of the
Consultancy Services Global Supply Agreement, dated April 27, 2005, between
Kanbay Europe Ltd. and HSBC Holdings plc (the “New Agreement”).  Pursuant to the terms of the New Agreement,
this form statement of work may also be used for engagements entered into under
the New Agreement.

 

	
    For Internal Kanbay Purposes
  Only: 

  	
   

  	
  CA No. 

  
	
    S.O. No.                           

  	
   

  	
  Statement
  of Work No.       

  
	
  New Client  

  	
   

  	
  Household
  P.O. No.                                              

  
	
  Extension

  	
   

  	
   

  
	
  Correction 

  	
   

  	
   

  
	
  Add-On Sale

  	
   

  	
   

  

 

STATEMENT
OF WORK

(PURCHASE
ORDER)

TO

MASTER
SERVICES AGREEMENT

	
  (“Kanbay”)

  	
   

  	
  (“Household”)

  
	
  Name:

  	
   

  	
  Name:

  
	
  6400 Shafer Court, Suite 100

  	
   

  	
  Address:

  
	
  Rosemont, IL 60018

  	
   

  	
   

  
	
  (847) 384-6100

  	
   

  	
  Telephone Number:                                                          

  
	
   

  	
   

  	
   

  
	
  By:                                                                                  

  	
   

  	
  By:                                                                                    

  
	
  Print Name:                                                                    

  	
   

  	
  Print Name:                                                                      

  
	
  Title:                                                                               

  	
   

  	
  Title:                                                                                 

  
	
  Date:                                                                               

  	
   

  	
  Date:                                                                                 

  

 

By signing above, the
parties agree to the terms and conditions of this Statement of Work (a.k.a.
Purchase Order) and to the terms and conditions of the Consulting Agreement
between [                      ] (“Household”
or “HI”) and [                          
] (“Kanbay”), effective _______, which by this reference is incorporated
herein.

1.                                       Services

[List Services.]

The Services will be provided by the Kanbay resources identified below
on a ________________ basis, at the following rates:

 43
 

 

[List Rates.]

All changes to the scope of the Services provided under this Statement
of Work must be in writing and signed by authorized representatives of the
parties.  Upon Household’s request, Kanbay
shall provide a good faith estimate of any additional time or charges
associated with any requested change.

2.                                       Household’s
Responsibilities — Prior to and during the term of this Statement of Work,
Household shall perform the following tasks:

[List Household Responsibilities.]

3.                                       Estimated
Timetable for Commencement and Completion of Services (including Phases, if
applicable) — Provided there are no changes to the project assumptions or
the current plans as provided in Section 1, and the parties perform their
respective responsibilities as provided herein, Kanbay currently estimates that
the Services shall be completed approximately _____ after commencement of the
Services, which is currently scheduled for _______________.

4.                                       Conditions
of Acceptance (if any) by Household — All Services provided hereunder will
be deemed accepted by Household _______________ after performance thereof
unless Household notifies Kanbay, in writing and with a written list of
discrepancies, that the Services are non-compliant with the terms of the
Statement of Work.  Household will
promptly provide to Kanbay defect reports with documentation to support and
assist in the correction process if any non-compliance is claimed by Household.  Household will also provide reasonable assistance
in remedying the defect, including, without limit, providing additional
computer runs to duplicate the conditions at the time of error and allowing
access to code and data files (if applicable). 
Kanbay will investigate and/or address any alleged non-compliance, and
Household shall diligently review any fixes provided by Kanbay in response to
Household’s written list of non-compliant items.  Unless Household notifies Kanbay in writing
that said items are still non-compliant, said fixes shall be deemed accepted by
Household ________ after the delivery of a fix for any non-compliant item or
_______ following Household’s receipt of written notification from Kanbay
stating that the non-compliant item(s) are compliant.

5.                                       Location
of Performance of Work — [List Location of Performance of Work.]

6.                                       Fees
— Household shall pay Kanbay on a __________________ basis at the rates set
forth in Section 1.  The Services fees,
as well as all expenses, shall be invoiced by Kanbay on a _______ basis for the
immediately preceding invoice period. 
Each invoice shall be due and payable in _________ within _____ calendar
days after receipt of such invoice.

7.                                       Assumptions
— Kanbay and Household have worked cooperatively to define the scope of this
project.  In defining the foregoing, the
parties assumed that certain elements or assumptions would be in effect
throughout the term of the Statement of Work. 
The parties agree that, to the best of their knowledge, all relevant
assumptions have been set forth below:

[List Assumptions.]

Any changed, incorrect or additional elements or assumptions may result
in an increased cost to both of the parties.

 44
 

 

This
form statement of work was used for engagements entered into under the
Consulting Agreement, dated November 14, 1994, between Kanbay Incorporated and
HSBC Technology & Services (USA) Inc. (the “Old Agreement”).  The Old Agreement was terminated as of April
19, 2005 and this statement of work is now governed by the terms of the
Consultancy Services Global Supply Agreement, dated April 27, 2005, between
Kanbay Europe Ltd. and HSBC Holdings plc (the “New Agreement”).  Pursuant to the terms of the New Agreement,
this form statement of work may also be used for engagements entered into under
the New Agreement.

STATEMENT
OF WORK

SOW NO. ___________

ISSUED
TO KANBAY INCORPORATED

Pursuant to the Consulting Agreement (the “Agreement”)
between
[                    ]
(“Kanbay”) and
[                     ]
(“Household”), containing an Effective Date of _______________, as extended by
subsequent agreements, (which Agreement is incorporated herein by this
reference), Household hereby orders from Kanbay the following:

1.                                       Term.  The initial term of this Statement of Work
shall be _____________ commencing on ________ (the “Effective Date”) and shall
expire on the ____________, unless earlier terminated or extended in accordance
with the Agreement, as modified herein.

2.                                       Services.  [List Services]

 

 

 

3.                                       Definitions.  [List Definitions]

 

 

 

4.                                       Services/Fees
— First Year.  [List Services/Fees]

 

 

 

5.                                       Services/Fees
— Subsequent Years.  [List
Services/Fees]

 

 

 

6.                                       Special
Projects.  Kanbay and Household agree
that the fees set forth herein shall not apply to Kanbay’s performance of
special projects requested by Household that: (i) are outside the scope of the
Services; (ii) require Kanbay to provide personnel possessing special skills
distinct from those skills generally possessed by Kanbay personnel providing
the Services under this Agreement; or (iii) require an increase in the number
of either Onsite or Offshore Kanbay personnel (collectively, “Special Projects”).  Special Projects performed on a ________________
basis will be paid on ________ rates which shall be agreed upon
_______________.  Household and Kanbay
may also agree to perform Special Projects on a 

 45
 

 

_____________________
basis.  Unless otherwise agreed by the
parties, Household shall pay Kanbay for the performance of Special Projects on
a ______________________ basis.

7.                                       Invoicing.  Kanbay shall invoice Household on
_________________________ for the fees set forth above for: Services to be
performed during that period; ________________________.

8.                                       Project
Managers.

(a) Kanbay shall
assign a senior project manager (the “Kanbay Senior Client Engagement Manager”)
who shall, among other things, [list responsibilities].  The Kanbay Senior Client Engagement Manager
shall work with the Household Project Manager on a frequent and informal basis.

(b) Household
shall assign a project manager (“Household Project Manager”) to assist the
Kanbay Client Engagement Manager in connection with the delivery of the
Services.  The Household Project Manager
shall [list responsibilities].

9.                                       Status
Reports and Meetings.  ______________
following the Effective Date, and every ________ thereafter, Kanbay shall
provide Household with a written report setting forth the number of hours
utilized by Household for the preceding ________ (the “Utilization Report”).  In addition to the Utilization Report, Kanbay
shall deliver to Household on a ________ basis a written report (“Status Report”)
summarizing Household’s utilization of Kanbay resources, personnel assignments,
and the status of various projects. 
Kanbay senior management and Household representatives shall hold
meetings on a ________ basis to review the Status Report and Utilization
Report, if applicable, and discuss ongoing performance and utilization issues,
and planned or anticipated projects or changes. 
If any Utilization Report or Status Report reveals excessive under- or
over-utilization of Kanbay personnel, the parties will negotiate in good faith
an appropriate adjustment to the schedule of Services to be performed, number
of FTE’s to be utilized, and/or fees to be paid Kanbay for the Services.

10.                                 Notwithstanding
any terms in the Agreement to the contrary, this Statement of Work may be
terminated by Household for its convenience
____________________________________________________.

11.                                 Kanbay
shall not make any unauthorized disclosure of or use any personal information
of individual consumers which it receives from the other party or on the other
party’s behalf other than to carry out the purposes for which such information
is received, Kanbay shall comply, to the extent applicable, with the
requirements of the implementing regulations of Title V of the Gramm-Leach Bliley
Act of 1999.

12.                                 The
parties hereto reaffirm the terms of Section 11 of the Agreement.

This Statement of Work shall not be effective or
binding on either party until accepted and executed by both parties.

	
  [                                                  ]

  	
   

  	
  [                                                    ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:                                                                              

  	
   

  	
  By:                                                                                

  
	
  Name:                                                                         

  	
   

  	
  Name:                                                                           

  
	
  Title:                                                                           

  	
   

  	
  Title:                                                                             

  
	
  Dated:                                                                         

  	
   

  	
  Dated:                                                                           

  

 

 46
 

 

 

ADDENDUM TO STATEMENT OF WORK

ISSUED TO KANBAY INCORPORATED

This Addendum amends and
modifies a certain Statement of Work, with an Effective Date of _______________
and having a _____________, by and between [                   ] (“Kanbay”) and [                                   ] (“Household”).

Unless otherwise defined
herein, all capitalized terms shall have the meanings ascribed to them in the
Statement of Work.

                                                                                                                                                                                                  

Except as amended above,
all terms and conditions of the Statement of Work shall remain in full force
and effect.  

	
  [                                                  ]

  	
   

  	
  [                                                    ]

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  By:                                                                              

  	
   

  	
  By:                                                                                

  
	
  Name:                                                                         

  	
   

  	
  Name:                                                                           

  
	
  Title:                                                                           

  	
   

  	
  Title:                                                                             

  
	
  Dated:                                                                         

  	
   

  	
  Dated:                                                                           

  

 

 47

 

 

HSBC/
CONSULTANCY SERVICES GLOBAL SUPPLY AGREEMENT APRIL 2005

This
form statement of work was used for engagements entered into under the
Consulting Agreement, dated November 14, 1994, between Kanbay Incorporated and
HSBC Technology & Services (USA) Inc. (the “Old Agreement”).  The Old Agreement was terminated as of April
19, 2005 and this statement of work is now governed by the terms of the
Consultancy Services Global Supply Agreement, dated April 27, 2005, between
Kanbay Europe Ltd. and HSBC Holdings plc (the “New Agreement”).  Pursuant to the terms of the New Agreement,
this form statement of work may also be used for engagements entered into under
the New Agreement.

 

	
  For Internal Kanbay Purposes Only:

  	
   

  	
  MSA No.

  
	
   

  	
   

  
	
  S.O. No.

  	
   

  	
   

  	
   

  	
  SOW No.

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   ̈

  	
  New Client

  	
   

  	
  P.O. No.

  	
   

  
	
   

  	
   

  	
   

  
	
   ̈

  	
  Extension

  	
   

  
	
   

  	
   

  	
   

  
	
   ̈

  	
  Correction

  	
   

  
	
   

  	
   

  	
   

  
	
   ̈

  	
  Add-On Sale

  	
   

  
								

 

STATEMENT
OF WORK

TO

THE CONSULTING AGREEMENT

	
  (

  	
   

  	
  )

  	
  (

  	
   

  	
  )

  
	
  Name:

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  Address:

  	
   

  	
   

  	
  Address:

  	
   

  	
   

  
	
  City, State Zip:

  	
   

  	
   

  	
  City, State Zip:

  	
   

  	
   

  
	
  Telephone Number:

  	
   

  	
   

  	
  Telephone Number:

  	
   

  	
   

  
	
   

  	
   

  
	
   

  	
   

  
	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
  Print Name:

  	
   

  	
   

  	
  Print Name:

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  
																							

 

By signing above, the
parties agree to the terms and conditions of this Statement of Work (a.k.a.
Purchase Order) and to the terms and conditions of the Consulting Agreement
between [               ].
(as well as its subsidiaries) and [               ],
dated November 14, 1994 (the “Agreement), which by this reference is
incorporated herein.  For the convenience
of contracting, the parties to this Statement of Work hereby acknowledge and
agree to the terms and conditions of the Agreement, as subject to the express
terms and conditions of this Statement of Work, as if each party to this
Statement of Work executed the Agreement in the place of, and without reference
to, their respective affiliated companies.

1.                                       Services
—

[List Services.]

All changes to the scope of the Services provided under this Statement
of Work must be in writing and approved by both parties.

 48
 

 

2.                                       Location
of Performance of Work —

[List Location of Performance of Work.]

3.                                       Fees
—

[List Fees.]

4.                                       Conditions
of Acceptance (if any) by __________________ — All Services performed hereunder
will be deemed accepted by ____________________ after performance thereof
unless __________________ notifies Kanbay in writing, and with a written list
of discrepancies, that the Services are non-compliant with the terms of this
Purchase Order.

 49
 

 

This form
statement of work was used for engagements entered into under the Consulting
Agreement, dated November 14, 1994, between Kanbay Incorporated and HSBC
Technology & Services (USA) Inc. (the “Old Agreement”).  The Old Agreement was terminated as of April
19, 2005 and this statement of work is now governed by the terms of the
Consultancy Services Global Supply Agreement, dated April 27, 2005, between
Kanbay Europe Ltd. and HSBC Holdings plc (the “New Agreement”).  Pursuant to the terms of the New Agreement,
this form statement of work may also be used for engagements entered into under
the New Agreement.

	
   

  	
   

  	
  Statement of Work

  	
   

  	
   

  

This statement of Work references Consulting Agreement between [               ]
and [               ]
on behalf of its subsidiaries and affiliates.

	
  Last Name

  	
  First Name

  	
  Middle Name

  	
  VEN ID

  	
  Start Date

  	
  End Date

  	
  VP

  	
  Location

  	
  Rate

  
	
   

  
	
  [List names]

  

 

 

 

 

Consultants will only be paid for the time period listed on
this form

Compensation will be
based on the number of hours worked and renumerated on the basis of an hourly
rate or negotiated amount to be determined for each individual assigned.  No compensation is available for vacation,
sick time, personal business, holidays, or any other non-project related time.

 50
 

 

SERVICES TO BE PERFORMED

Consultant agrees
to exercise reasonable diligence to perform the following services as required
to complete the assigned task(s) in the agreed upon schedule.  Consultant will be working under the
direction of Household management.

	
  [                            ]

  	
  [                            ]

  

 

	
  By:

  	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Signature:

  	
   

  	
   

  	
  Signature:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title:

  	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date:

  	
   

  	
   

  	
  Date:

  	
   

  

 

 

	
  Page 1 of 1  

  
	
   

  	
                                        

  
	
   

  
	
  Form Data for

  

 

	
  Close

  	
  Edit

  	
  Delete

  	
   

  	
   

  

 

	
  Form Name:

  	
   

  	
   

  	
  Submitted By:

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Log Number:

  	
   

  	
   

  	
  Status:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Date Created:

  	
   

  	
   

  	
   

  

 

 51
 

 

Comment
History:

WorkFlow
History:

	
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 52

 

 

ATTACHMENT
D — DATA PROTECTION PROVISIONS

1.                                                                   DEFINITIONS

1.1                          For the purposes of this Attachment D, the following
terms shall have the following meaning:

(a)                                                      “Company
Representative” means in the case of each of HSBC or the relevant HSBC Group
Member and the Consultant or the relevant Consultant Affiliate, the officer or
person nominated (or such other officer or person as each party may designate
in writing from time to time) to be responsible for day-to-day liaison between
the parties and for monitoring the performance of the Services by the
Consultant or the relevant Consultant Affiliate;

(b)                                                     “Data
Protection Legislation” means the UK Data Protection Act 1998;

(c)                                                      “Personal
Data” means any data from which a living individual can be identified that may
be transferred by HSBC or other HSBC Group Members, or their respective agents
and/or customers to the Consultant and processed by the Consultant in
accordance with the terms of this Agreement;

(d)                                                     “Premises”
means any premises from which the Consultant or the Consultant Affiliate (as
applicable) provides the Services;

(e)                                                      “Processing”
means in relation to Personal Data, obtaining, recording or holding the
Personal Data or carrying out any operation or set of operations on Personal
Data, including:

-                                  organisation,
adaptation or alteration of the Personal Data; or

-                                  retrieval,
compilation or use of the Personal Data; or

-                                  disclosure
of the Personal Data by transmission, dissemination or otherwise making
available; or

-                                  alignment,
combination, blocking, erasure or destruction of the Personal Data;

(f)                                                        “Security
Measures” means the standard security procedures and requirements set out, or
referred to, in Schedule 1 (or in any substitute schedule agreed by the parties
from time to time);

(g)                                                     “System”
means the computer hardware and software programmes (if any) utilised from time
to time to provide the Services to HSBC or the HSBC Group Member;

 53
 

 

HSBC/ CONSULTANCY
SERVICES GLOBAL SUPPLY AGREEMENT APRIL 2005

2.                                                                   PROVISION
OF SERVICES

2.1                                                             Each
of the parties acknowledge that, to the extent that the provision of Services
involve the Consultant or Consultant Affiliate (as applicable) in the
processing of Personal Data, the respective rights of data subjects and/or any
data protection commissioner or national information commissioner (or any
functionary with similar responsibilities) under any relevant Data Protection
Legislation shall not be prejudiced in any way by the terms of this Agreement.

2.2                                                             The
Consultant or Consultant Affiliate (as applicable) undertakes that at all times
during the term of this Agreement:

(i)                                                         it
will provide the Services in accordance with the provisions of this Agreement
and the Security Measures;

(ii)                                                      it
will respect the principles set out in the relevant Data Protection Legislation
in performing the Services;

(iii)                                                   it
shall promptly notify the Company Representative of HSBC in writing on becoming
aware of the occurrence of any material development or occurrence which may
inhibit the Consultant or Consultant Affiliate (as applicable) in its ability
to perform its obligations hereunder;

2.3                                                             The
Consultant or Consultant Affiliate (as applicable) shall promptly take all
necessary steps within its power to comply with any instructions received from
HSBC the relevant HSBC Group Member in respect of the Processing of Personal
Data. In particular, if at any time HSBC or the relevant HSBC Group Member
requests the Consultant or Consultant Affiliate (as applicable) to refrain or
desist from Processing any specific Personal Data the Consultant or Consultant
Affiliate (as applicable) shall immediately take all necessary steps within its
power to comply with HSBC’s or the relevant HSBC Group Member’s request.

2.4                                                             The
Consultant or Consultant Affiliate (as applicable) shall maintain a written
contingency plan, containing procedures for the continued performance of the
Services in the event of a disaster or other failure that results in a
significant interruption of the Services at the Premises and shall provide a
copy to HSBC or the relevant HSBC Group Member at their request.

3.                                                                   HUMAN
RESOURCES

3.1                                                             The
Company Representatives shall have responsibility for liaison with each other
to ensure:

(i)                                                         general
compliance by the Consultant or Consultant Affiliate (as applicable) with the
terms of this Attachment D; and

(ii)                                                      any
Processing of Personal Data by the Consultant or Consultant Affiliate (as
applicable) in relation to the provision of the Services is 

 54
 

 

being undertaken
in compliance with the relevant Data Protection Legislation.

4.                                                                   SECURITY

4.1                                                             The
Consultant or Consultant Affiliate (as applicable) shall provide and maintain
the following facilities and services to the Premises under control of the
Consultant or Consultant Affiliate (as applicable) (or any Premises controlled
by a third party providing the Services and from which the Services are
performed) at all times during the term of this Agreement:

(i)                                                         an
electronic access control system, to ensure that access to the Premises is
restricted as provided by paragraph 3 of Schedule 1;

(ii)                                                      24-hour
manned security of the Premises;

(iii)                                                   a
modern functioning intruder, smoke and fire detection systems; and

(iv)                                                  standby
electricity generating capacity, sufficient to support all the electrical
equipment (including computer hardware and lighting) utilised within the
Premises.

5.                                                                   INTEGRITY
OF DATA

5.1                                                             All Personal Data
shall be and remain the sole and exclusive property of HSBC or the relevant
HSBC Group Member.  On the termination of
this Agreement or at any time at the request of HSBC or the relevant HSBC Group
Member, any Personal Data then in the possession of the Consultant or
Consultant Affiliate (as applicable) shall be immediately returned to HSBC or
the relevant HSBC Group Member (as HSBC or the relevant HSBC Group Member
directs).  Personal Data shall not be
used by the Consultant or Consultant Affiliate (as applicable) for any purpose
other than to provide the Services, and shall not be disclosed to any third
party, except as provided by Attachment A.

5.2                                                             The Consultant or
Consultant Affiliate (as applicable) shall implement strict security procedures
in respect of the integrity and confidentiality of the Personal Data whilst in
its possession to ensure that the Personal Data will not be recorded,
disclosed, processed, deleted, altered, used or otherwise tampered with in an
unauthorised or accidental manner.

5.3                                                             Without prejudice
to paragraph 5.2 above, the Consultant or Consultant Affiliate (as applicable)
shall ensure that adequate security measures and precautions will at all times
be in place during its possession or use of the Personal Data to protect the
Personal Data in accordance with the relevant Data Protection Legislation.

5.4                                                             Except to the
extent necessary for the provision of the Services, none of the Personal Data
shall be mechanically or electronically copied or otherwise reproduced by the
Consultant or Consultant Affiliate (as applicable), and shall not be altered or
supplemented with other data, without the express written 

 55
 

 

permission or at the specific written direction of HSBC or the relevant
HSBC Group Member.

5.5                                                             Any such Personal
Data in any medium external to the System (including without limitation paper
copies, discs, CD Roms, magnetic tapes) shall be stored in secure locked
cabinets in a secure locked area.

5.6                                                             Any breach or
potential breach of the provisions of this Clause 5 shall be immediately
notified in writing by the Consultant or Consultant Affiliate (as applicable)
to HSBC or the relevant HSBC Group Member.

SCHEDULE 1

STANDARD SECURITY MEASURES

1.                      BASIC PROCEDURES

(a)                                                              The
Consultant or Consultant Affiliate (as applicable) shall, and shall procure
that the Consultant Personnel shall, at all times during the term of this
Agreement comply with the procedures and requirements as to data security and
data protection set out in proprietary materials provided by HSBC or the
relevant HSBC Group Member (as up-dated) from time to time.

(b)                                                             In
addition, the Consultant or Consultant Affiliate (as applicable) shall also
implement the under-mentioned further security and data protection measures at
the Premises under control of the Consultant or Consultant Affiliate (as
applicable) (or any Premises controlled by a third party providing the Services
and from which the Services are performed):

-                                                                an
emergency procedure for the termination of data transfer;

-                                                                increased
checks of the data accesses made by staff;

-                                                                all
printouts containing customer data will be tightly controlled; and

-                                                                installation
of an access control system.

2.                      CONTROL OF PRINTED MATERIAL

Prior to the end of each
day, the Consultant or Consultant Affiliate (as applicable) will ensure that
all printed material containing customer data, which is not to be held securely
overnight is shredded.

The Consultant or
Consultant Affiliate (as applicable) will also ensure that no material in any
medium external to the System containing customer data, or HSBC’s or the
relevant HSBC Group Member’s proprietary materials (e.g. procedures manuals or
videos) is removed from the secure processing areas in the Premises.

3.                      ACCESS CONTROL SYSTEM

 56
 

 

An access control system
shall be implemented where appropriate for the purpose of restricting operators’
access to data so that an operator may only access data appropriate to the
tasks he is performing.

 57Exhibit
10.2

***Text
Omitted and Filed Separately

with the Securities and Exchange Commission.

Confidential Treatment Requested

Under 17 C.F.R. Sections 200.80(b)(4)

and 240.24b-2.

RATE
SCHEDULE

THIS RATE SCHEDULE IS
MADE THIS 19th DAY OF APRIL 2005

Between:

HSBC Holdings plc whose
registered office is 8 Canada Square, London, E14 5HQ (Registered Number
617987) which shall hereinafter be referred to as “HSBC”; and:

Kanbay Europe Ltd. of
Compass House, Vision Park, Histon Cambridge, CB4 9AD UK (Registered Number
3282049) which shall hereinafter be referred to as “Consultant”.

WHEREAS

This Rate Schedule
establishes the rates applicable to the Services to be delivered by Consultant
and/or Consultant Affiliates to HSBC and/or HSBC Group Members during the Term hereof.

1              Introduction

1.1             Unless
otherwise mutually agreed by the parties in writing, the Services affected by
this Rate Schedule shall be delivered under the Consultancy Services Global
Supply Agreement dated April 19th, 2005 between the parties (the “Terms and
Conditions”).  Unless otherwise stated
herein, all capitalized terms appearing in this Rate Schedule shall have the
meanings ascribed to them in the Terms and Conditions.

1.2             For the on-going
management of this Rate Schedule, Consultant shall procure that Kanbay
Incorporated Inc. (“Kanbay”) will undertake the responsibilities assigned to
Kanbay hereunder.

1.3             The interpretation and construction of this Rate
Schedule shall be subject to the following:

(a)              reference to:

(i)                  a document or agreement, or a provision of a
document or agreement, is to that document, agreement or provision as amended,
supplemented, replaced or novated; and

(ii)               a party to this Rate Schedule or to any other
document or agreement includes a permitted substitute or a permitted assign of
that party;

(b)              a singular word includes the plural, and vice
versa;

(c)               if an example is given of anything (including a
right, obligation or concept), such as by saying it includes something else,
the example does not limit the scope of that thing; and

(d)              the headings to clauses are for reference
purposes only and shall not affect the interpretation or construction of the
clauses.

 

 

2              Term

2.1             The term of this Rate
Schedule (the “Term”) shall commence on April 1, 2005 (the “Effective Date”)
and expire on December 31, 2007 (the “Expiration Date”).

2.2             HSBC and Kanbay shall
commence good faith negotiations regarding the renewal or replacement of this
Rate Schedule no later than six months before the Expiration Date.  Consultant shall procure that Kanbay will
commence such negotiations.

3              Commercial Terms

3.1             All
Charges shall be as specified in the applicable SoW.  Unless otherwise mutually agreed the Charges
for any Services to be performed by Consultant Personnel on a time and materials
basis shall be determined using the rates and terms specified in this Rate
Schedule and in particular, those rates and terms set out in Exhibit A to this
Rate Schedule.

3.2             HSBC
and Consultant shall procure that when HSBC and/or HSBC Group Members and
Consultant and/or Consultant Affiliates enter into SoWs, such SoWs shall be
made in accordance with the rates and terms specified in this Rate Schedule.

4              Confidentiality

4.1             The signatories of this Rate Schedule shall and
shall procure that their employees, agents and contractors and in the case of
Consultant, the Consultant Affiliates and in the case of HSBC, the HSBC Group
Members to, at all times, maintain strict confidentiality of the provisions
of this Rate Schedule except (a) where required by law or regulation (including
by the Financial Services Authority) to disclose such information; or (b) with
the prior written consent of the other party. 
If a party should be required by law or regulation to make a disclosure
of this Rate Schedule as referred to in clause 4.1(a), the disclosing party shall so far as lawful
promptly inform the other party in writing of such a requirement and provide reasonable
assistance if that other party wishes to challenge the requirement to make the
disclosure.

4.2             HSBC
and Consultant shall be permitted to disclose this Rate Schedule to HSBC Group
Members and Consultant Affiliates provided such disclosure is strictly
necessary for the purposes of or in connection with this Rate Schedule and/or
the Terms and Conditions and/or a SoW and provided that HSBC and Consultant
shall each ensure that HSBC Group Members and Consultant Affiliates
respectively comply with the confidentiality
requirements of this Rate Schedule as if they were parties to it.

4.3             Each
party acknowledges that damages will not be an adequate remedy for any breach
of Clause 4 and shall not seek to resist an application for an injunction in
respect of any breach or threatened breach of Clause 4 on the grounds that
there is an alternative adequate remedy in damages.

5              Termination

5.1             This
Rate Schedule shall terminate:

 2
 

 

 

5.1.1 immediately on the exercise by HSBC of any right
in Clause 18.1 of the Terms and Conditions;

5.1.2 subject to Clause 5.1.3, immediately on written
notice by HSBC to Consultant if Consultant fails to cure any material or
persistent default of any provision of this Rate Schedule within thirty (30)
days of written notice requiring the default to be remedied;

5.1.3 immediately on written notice by HSBC to
Consultant if Consultant commits a breach of Clauses 4, 6 or 8 of this Rate
Schedule; or

5.1.4  upon HSBC
providing to Consultant at least one hundred and eighty days (180) prior
written notice of the termination of this Rate Schedule for any reason
whatsoever (including for HSBC’s convenience).

5.2             For
the avoidance of doubt, termination of this Rate Schedule shall subject to
Clause 11.3, terminate the obligations in this Rate Schedule of Consultant and
HSBC respectively.  Notwithstanding the
foregoing, in the event that HSBC terminates this Rate Schedule pursuant to
Clause 5.1.4 above, HSBC’s payment obligations (if any) under Attachment 1
shall survive such termination, and HSBC shall make any such payments as
described therein.

6              Publicity

6.1             Consultant
shall not and shall procure that all Consultant Affiliates and Consultant
Personnel do not, disclose the making of this Rate Schedule in any journal
magazine or publication or any other medium or otherwise use HSBC’s or the HSBC
Group Members’ names or logos (including any trade marks) in any of its
advertising or publicity material without HSBC’s prior written consent which
may be withheld or given in HSBC’s absolute discretion.

6.2             Notwithstanding
Clause 6.1 however, Consultant and Consultant Affiliates may include a
reference to the name of HSBC Holdings plc and/or the specific legal entity
name of any HSBC Group Member which uses their Services (and not, for the
avoidance of doubt, any of HSBC’s logos or trade marks or any reference to
other HSBC Group Members) on their lists of clients.

7             Disputes

7.1             If
at any time a dispute arises out of or in connection with this Rate Schedule,
HSBC and the Consultant shall in the first instance meet in good faith with a
view to resolving the dispute within a period of ten (10) Business Days from
the day the dispute first arises.

7.2             Should
the parties not be able to resolve the dispute within the ten (10) Business
Days, then both parties shall refer the matter to their own appropriate level
of senior management respectively for resolution.

7.3             If
the relevant senior management are unable to resolve the dispute within a
further ten (10) Business Days, then the parties will attempt to settle the
dispute by mediation in accordance with the Centre for Dispute Resolution
(CEDR) Model Mediation Procedure. To initiate mediation the initiating party
must give notice in writing to the other party and send a copy of 

 3
 

 

 

the notice to CEDR. 
The mediation will start not later than ten (10) Business Days after the
notice.  Subject to clause 7.5, the
parties agree not to commence any court proceedings in relation to the dispute
until they have attempted to settle the dispute by mediation and that mediation
has either terminated or failed.

7.4             Unless
otherwise agreed in writing, the costs of any mediation carried out pursuant to
this clause 7 shall be shared equally between the parties.

7.5             Nothing
in this Rate Schedule shall prevent either party from taking such action as it
deems appropriate (including any application to a relevant court) for
injunctive or other emergency or interim relief.

8              Assignment

8.1             Consultant
shall not without the prior written consent of HSBC assign, sub-contract,
transfer or part with any right or obligation under this Rate Schedule nor any
part thereof nor delegate any of its responsibilities or obligations hereunder.

8.2             HSBC
may assign, transfer, part with or sub-contract any of its rights,
responsibilities or obligations under this Rate Schedule without the prior
consent of the Consultant.

9              Variation

No variation to this Rate Schedule shall be effective unless in writing
and signed by a duly authorised officer of each of HSBC and Consultant.

10        Counterparts

This Rate Schedule may be executed in any number of counterparts, each
of which, when executed and delivered, shall be an original, and all the counterparts
together shall constitute one and the same instrument.

11       General

11.1                  Entire
Rate Schedule

The provisions of this Rate Schedule, as amended,
shall constitute the entire agreement and understanding between the parties
with respect to its subject matter and, unless otherwise expressly provided,
supersede all prior agreements, representations, statements, negotiations and
undertakings (other than representations made fraudulently).

11.2                  Severability

If any provision of this Rate Schedule is held by a
court to be invalid or unenforceable and can be deleted without altering the
essence of the Rate Schedule, the unlawful provision will be severed and the
remaining provisions will remain in full force or effect.

11.3                  Survival

Clauses 4, 5, 6, 7, 8, and 11 and all other provisions
of this Rate Schedule intended to survive termination shall survive termination
as the context requires.

11.4                  Waiver

No relaxation, forbearance, delay or negligence by
either party in enforcing any of the 

 4
 

 

 

terms and conditions of this Rate Schedule or the
granting of time by either party to the other shall prejudice affect or
restrict the rights and powers of that party. 
No waiver of any terms or conditions of this Rate Schedule shall be
effective unless made in writing and signed by the party against which
enforcement of the waiver is sought.  The
waiver of any breach of any term or condition of this Rate Schedule shall not
be construed as a waiver of any subsequent breach of any term or condition
whether of the same or different nature. 
Except where otherwise explicitly agreed all remedies in this Rate
Schedule are cumulative and not exclusive of any other remedy or right in this
Rate Schedule or at law.

11.5                  Third
Parties

Except as set forth in this Rate Schedule and
throughout the Rate Schedule in relation to HSBC Group Members and Consultant
Affiliates, nothing in this Rate Schedule is intended to, nor shall create any
right enforceable by any third party or person not a party to this Rate
Schedule and the Contracts (Rights of Third Parties) Act 1999 shall not
otherwise apply to this Rate Schedule. 
The consent of a third party (including an HSBC Group Member or a
Consultant Affiliate other than Kanbay) shall not be required for the
amendment, variation or termination of this Rate Schedule.

11.6                  No
Partnership

No part of this Rate Schedule is intended to create or
record any employment, partnership, joint venture, agency or other such
relationship between HSBC, HSBC Group Members and the Consultant or Consultant
Affiliates or Consultant Personnel).  For
the avoidance of doubt all Consultant Personnel shall remain employees or
suppliers to the Consultant or Consultant Affiliates, and shall not be regarded
as employees, agents, contractors or representatives of any HSBC or HSBC Group
Member.

11.7                  Governing
Law

This Rate Schedule shall be governed in all respects
by the Laws of England and Wales and the parties submit to the exclusive
jurisdiction of the English Courts

IN WITNESS WHEREOF, the parties have executed this
Rate Schedule as of the dates accompanying the signatures of their respective
authorized representatives below.

	
  KANBAY EUROPE LIMITED

  	
   

  	
  HSBC HOLDINGS plc

  

 

	
  

  	
   

  	
   

  	
   

  	
   

  
	
  Signed 

  	
  /s/ William Weissman

  	
   

  	
  Signed

  	
   /s/ S K Green

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Name 

  	
  William Weissman

  	
   

  	
  Name

  	
   S K Green

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Title 

  	
  CFO

  	
   

  	
  Title

  	
   Group Chief
  Executive

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
  Date 

  	
  27/04/05

  	
   

  	
  Date

  	
  22 April 2005

  

 

 5
 

 

 

ATTACHMENT 1

1.                   FTE and
Contract Year Definitions.

For purposes of this Rate Schedule, a Full Time
Equivalent (“FTE”) means a minimum of 1950 hours of billable Services provided
by Consultant Personnel during a Contract Year (defined below).

Consultant Personnel working onsite at HSBC’s and/or
HSBC Group Member’s facilities outside of India are referred to herein as “Onsite
FTEs”.  Consultant Personnel working
offshore at the Kanbay’s India facilities or HSBC’s and/or HSBC Group Member’s
India facilities are referred to herein as “Offshore FTEs”, provided however
that if such Consultant Personnel are non-residents of India and travel to
India specifically to provide the Services, they shall be considered to be
Onsite FTEs with rates based on their applicable country of residence.

FTEs, which shall be assigned to provide Services
under SoWs, shall include personnel possessing a mix of experience and skill
levels as required to provide the Services. 
HSBC and/or HSBC Group Members shall advise Consultant and/or any
Consultant Affiliate of their need for Services, and Kanbay shall manage all
staffing of the FTEs in consultation and agreement with HSBC or the relevant
HSBC Group Member.

No FTE will be billed annually for more than 2040
hours of Services, regardless of the actual number of days/hours worked by that
individual, calculated on a monthly basis based on the HSBC US working day’s
calendar.   For 2005 the following are
the maximum billable hours per month:

 

	
  2005 Working Hours per Month

  
	
  Jan = 168

  	
   

  	
  Apr = 168

  	
   

  	
  Jul = 160

  	
   

  	
  Oct = 168

  
	
  Feb = 160

  	
   

  	
  May = 168

  	
   

  	
  Aug = 184

  	
   

  	
  Nov = 168

  
	
  Mar = 184

  	
   

  	
  Jun = 176

  	
   

  	
  Sep = 168

  	
   

  	
  Dec = 168

  

 

A “Contract Year” shall mean a period of twelve months
between the 1st of January and the 31st December for any year.  In relation to this Rate Schedule, the
following specific Contract Years shall refer to each of the three following
periods:

Contract Year 1 shall mean the period from April 1,
2005 through December 31, 2005;

Contract Year 2 shall mean the period from January 1,
2006 through December 31, 2006; and Contract Year 3 shall mean the period from
January 1, 2007 through December 31, 2007.

2.                   Rates and
Conditions.

Subject to the conditions set forth in this Rate
Schedule, Consultant and/or any Consultant Affiliate shall provide Offshore
FTEs and Onsite FTEs to HSBC and or the relevant HSBC Group Members at the
hourly rates set forth on Exhibit A, which is attached hereto and incorporated
herein. Rates for locations or designations other than as stated in Exhibit A
will be negotiated on a case-by-case basis, at which time the parties will also
classify the applicable positions as either Offshore FTEs or Onsite FTEs (based
on the principles stated in Section 1 above) for purposes of this Rate
Schedule.

 6
 

 

 

In consideration of the rate stated on Exhibit A for
Offshore Development FTEs [***], HSBC and/or HSBC Group Members intend to
acquire, via qualifying SoWs, an aggregate of Services from Consultant and/or
any Consultant Affiliate totaling [***] or more FTEs (comprising either Onsite
or Offshore) during Contract Years 1, 2 and 3 of this Rate Schedule, subject to
the following provisions:

a)                  The [***] FTE
covered by the Existing SoWs (stated in Section 3 below) shall be paid by HSBC
Technology & Services (USA) Inc. (HTSU) irrespective of the FTE utilized by
HSBC and the HSBC Group Members during Contract Years 1, 2 and 3.

b)                 If HSBC and/or
HSBC Group Members do not acquire, via qualifying SoWs, a total of [***] or
more FTEs  (including the [***] FTE
provided to HTSU via the Existing SoWs) by the end of Contract Year 3, then
Kanbay may invoice HSBC (or at HSBC’s direction, any one or more of the HSBC
Group Members) at the end of Contract Year 3 for an amount equal to [***]
multiplied by the difference (shortfall) in hours between the [***] provided to
HTSU by the Existing SoWs and the number of all Onsite and Offshore FTE hours
actually invoiced under qualifying SoWs for Contract Years 1, 2 and 3 (referred
to as “A” in Formula 1 below).  Such
invoice shall be based on [***] hours per Contract Year per FTE.

Formula 1: Invoice amount = [***]

c)                  If HSBC and/or
HSBC Group Members acquire, via qualifying SoWs, [***] or more FTEs (including
the [***] FTE provided to HTSU via the Existing SoWs ), but less than [***]
FTEs, by the end of Contract Year 3, then Kanbay may invoice HSBC (or at HSBC’s
direction, any one or more of the HSBC Group Members) at the end of Contract
Year 3 for an amount equal to [***] multiplied by the number of Offshore
Development FTE hours actually invoiced for Contract Years 1, 2 and 3 (referred
to as “B” in Formula 2 below).  This
additional payment shall not apply to the [***] FTE provided to HTSU via the Existing
SoWs.

Formula 2: Invoice amount = [***]

However, if the amount of any invoice resulting from
Formula 2 exceeds the amount that would have paid for the incremental Services
needed to reach a total of [***] FTEs by the end of Contract Year 3 (using the
Offshore Development FTE rate of [***]), then HSBC (or at HSBC’s direction any
one or more of the HSBC Group Members) shall have the option to pay this lesser
amount instead (i.e. “buy-out” the commitment) rather than pay the amount
determined from the calculation using Formula 2. For the purposes of Formula 3,
the [***] FTE provided to HTSU via the Existing SoWs will be immediately
deducted from the [***] FTE and not counted as part of “C” below.

Invoice amount = [***]

Where “C” = Total number of FTE (both Onsite and
Offshore) hours actually invoiced by Consultant and Consultant Affiliates under
qualifying SoWs during Contract Years 1, 2 and 3.

d)                 It is the parties’ intent to achieve an average
leverage ratio of [***] by the end of the Term of this Rate Schedule. The
parties will review leverage ratios (both to date and forecast) during the
quarterly reviews described in Clause 7 below, and if it appears that the
minimum leverage ratio will not be achieved by the end of the Term of this Rate
Schedule, the parties will conduct 

 7
 

 

good faith discussions regarding
a rate increase for future Services or another mutually acceptable resolution.

e)                  If during a
Contract Year any particular SoW is cancelled, then the parties will promptly
meet and conduct good faith discussions regarding the inclusion of the FTE
within the SoW towards the aggregate total of [***] FTE or a reduction in the
aggregate total of [***] FTE.

f)                    If an
aggregate of [***] or more FTEs has been acquired through qualifying SoWs
during Contract Years 1, 2 and 3, then the parties will promptly meet and
conduct good faith discussions regarding a new rate schedule for future
Services upon mutually acceptable terms. 
For the avoidance of doubt, the rates established herein shall continue
to apply during the Term until the parties agree otherwise.

3.                   Existing SoWs.

The parties specifically agree that, as of January 1,
2005, the FTEs currently being provided by Kanbay to HTSU (f/k/a Household
International, Inc.) under the five existing SoWs specified below (the “Existing
SoWs”) shall count toward the FTE utilization commitment.  The five Existing SoWs that count toward the
FTE commitment are as follows:

 

1.                 SoW
with Effective Date of February 1, 2003 and having a Three (3) Year Initial
Term (as amended) covering [***] FTE per annum.

2.                 SoW
with Effective Date of February 1, 2003 and having a Four (4) Year Initial Term
(as amended) covering [***] FTE per annum.

3.                 SoW
No. 2004-2YR (Effective Date of January 1, 2004) covering [***] FTE per annum.

4.                 SoW
No. 2004-3YR (Effective Date of January 1, 2004) covering [***] FTE per annum.

5.                 SoW
No. 2004-4YR (Effective Date of January 1, 2004) covering [***] FTE per annum.

For purposes of calculating FTE utilization during the
Term the above Existing SoWs shall account for [***] FTE comprising:

Contract Year 1 - [***]; Contract Year 2 - [***]; and
Contract Year 3 - [***].

For purposes of calculating FTE utilization during
Contract Year 1, all Services acquired during the period from January 1, 2005
through March 31, 2005 under the Existing SoWs (as defined above) shall be
included in the numbers of FTEs utilized during Contract Year 1, except that
the rates stated in the Existing SoWs shall remain unaltered.  For purposes of these FTE commitments, (i)
all hours of billable Services from Onsite FTEs shall be aggregated and divided
by 1950 to determine the number of Onsite FTEs utilized during the applicable
Contract Year, and (ii) all hours of billable Services from Offshore FTEs shall
be aggregated and divided by 1950 to determine the number of Offshore FTEs
utilized during the applicable Contract Year.

The parties specifically agree that any statement of
work in existence between Consultant and/or any Consultant Affiliate and HSBC
and/or any HSBC Group Member as at the Effective Date of this Rate Schedule
shall also qualify to be counted towards the FTE utilization commitment
pursuant to this Rate Schedule.  However,
only the FTE provided on or after 1 

 8
 

 

 

January 2005, pursuant to any such statement of work,
shall qualify to be counted towards the FTE utilization commitment pursuant to
this Rate Schedule.  .  Any statement of work entered into subsequent
to the Effective Date and not subject to the Terms and Conditions shall also
qualify to be counted towards the FTE utilization commitment pursuant to this
Rate Schedule.

4.                   Annual
Management Fee.

An annual fee (“Annual Management Fee”) of
US$400,000.00 shall be payable at the end of each Contract Year to cover
expenses associated with Consultant’s and/or any Consultant Affiliates general
management activities (including all ordinary travel related expenses) under
this Rate Schedule.  This Annual
Management Fee shall be reduced by the amount of any fees for the general
management activities (including associated ordinary travel related expenses)
paid to Kanbay by HSBC Technology & Services (USA) Inc. under the Existing
SoWs referenced in Section 3 above during the Contract Year.  The balance of the Annual Management Fee
shall be invoiced by Kanbay to, and paid by, any one or more HSBC Group Members
in the manner directed by HSBC, based on the level of Services acquired by each
HSBC Group Member during the Contract Year. 
Kanbay shall provide HSBC with all information requested in order to
properly apportion the Annual Management Fee among HSBC Group Members.  The unanticipated or irregular travel related
expenses of Consultant’s Personnel for specific project activities, as well as
all other travel related expenses related to specific SoWs, provided that they
are reasonable and approved in advanced, shall be invoiced to HSBC or the
applicable HSBC Group Member separately as stated in the relevant SoW.

5.                   Early
Payment Discount Option.

Consultant and/or any Consultant Affiliate shall
provide HSBC and/or HSBC Group Members with a two percent (2%) early payment
discount option on all fees for Onsite FTE time and materials Services
only.  Consultant and/or any Consultant
Affiliate will provide such discount, provided that the invoice containing such
fees (less the discount and any associated taxes) is paid by HSBC or the
relevant HSBC Group Member within thirty (30) days after the date of
invoice.  Consultant and/or any
Consultant Affiliate will, on each invoice that includes fees for Onsite FTE,
state the amount of the early payment discount for that invoice and give HSBC
or the relevant HSBC Group Member the option to either (i) accept the discount
by paying the invoice early as stated herein, or (ii) not accept the discount
and pay the full invoice amount as stated.

6.                   Special Projects.

Kanbay and HSBC agree that the rates and commitments
set forth herein shall not apply to Consultant’s and/or any Consultant
Affiliate’s performance of special projects requested by HSBC and/or HSBC Group
Members that require Consultant and/or any Consultant Affiliate to provide
personnel possessing special skills distinct from those skills generally
possessed by Consultant’s Personnel providing the Services under this Rate
Schedule (“Special Projects”).  Special
Projects must be designated as such on the applicable SoWs.  Special Projects performed on a time and
materials basis will be paid based on hourly rates which shall be agreed upon
by the parties.  HSBC and/or any HSBC
Group Member and Consultant and/or any Consultant Affiliate may also agree to
perform Special Projects as Fixed-price Engagements or Not-to-exceed
Engagements.

 9
 

 

 

In the event that the parties enter into any SoWs for
a Special Project, the applicable SoW will indicate whether the parties have
agreed to a “FTE equivalent” number for such project which will qualify to be
counted towards the commitments set forth in Section 3 above.

7.                   Project
Managers, Status Reports and Quarterly Reviews.

HSBC and Kanbay will each designate one Project
Manager to monitor and manage the activities of the parties under this Rate
Schedule who shall meet quarterly to review and discuss current utilization,
leverage ratio and future forecasts in order to evaluate the status of the
total commitment and take any action necessary.

The Kanbay Project Manager shall deliver to the HSBC
Project Manager a Quarterly Status Report detailing the number of Offshore FTEs
and Onsite FTEs utilized by over the preceding months along with the respective
leverage ratios.  If any Status Report
reveals excessive under- or over-utilization of Consultant Personnel, the
parties will negotiate in good faith regarding an appropriate adjustment to the
schedule of Services to be performed, the number of FTEs to be utilized, and/or
the fees to be paid for the Services.

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Rates for
locations or designations other than as stated above will be negotiated on a
case-by-case basis, at which time the parties will also classify the applicable
positions as either Offshore FTEs or Onsite FTEs for purposes of this Rate
Schedule.

The parties agree
and Consultant shall procure Kanbay to agree that in respect of the UK rates
for Offshore FTE, and any future countries where it is necessary to invoice in
a currency other than US Dollars, the invoice amount shall be converted to the
specified currency using the conversion rate as at the close of business for
such currency from U.S. Dollars as published in the last U.S. edition of the
Wall Street Journal of the month for which the invoices are applicable.

The parties agree
and Consultant shall procure Kanbay to agree that the above rates will be
increased or decreased by a reasonable percentage, as agreed to by the parties
before the beginning of each new Contract Year, based upon reliable national
salary data for the U.S., India and any other relevant location, i.e. Hong
Kong, United Kingdom, etc.  The parties
shall mutually agree as to the survey, index or method to be used for the
purpose of calculating yearly adjustments to the rates.

 

 11

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