EX-10.3






Between




Lionbridge Holdings Luxembourg S.à r.l.

As Pledgor




and




Wachovia Bank, National Association

As Pledgee




SHARE PLEDGE AGREEMENT




over the shares of Lionbridge Luxembourg S.à r.l.








1






SHARE PLEDGE AGREEMENT DATED AUGUST 4, 2006



BETWEEN:



Lionbridge Holdings Luxembourg S.à r.l., a société à responsabilité limitée (private limited
liability company) duly incorporated and validly existing under the law of the Grand-Duchy of
Luxembourg, with registered office at 1, rue des Glacis, L-1628 Luxembourg, having a share capital
of 1,750,925 (One million seven hundred fifty thousand nine hundred twenty-five) in process of
registration with the Luxembourg Registre de Commerce et des Sociétés (Trade and Companies
Register), (the “Pledgor”),



And



Wachovia Bank, National Association, in its capacity as Administrative Agent for the benefit of the
Lenders as defined in the Credit Agreement, which expression includes all the Lenders, pursuant to
article 2.4 of the law of August 5, 2005 on financial collateral arrangements (loi du 5 août 2005
sur les contrats de garantie financière)), a national banking association under the law of the
United States of America, having its registered office at 201 South College Street, Charlotte, NC
28288, (the “Pledgee”)



In the presence of Lionbridge Luxembourg S.à r.l., a société à responsabilité limitée (private
limited liability company) duly incorporated and validly existing under the law of the Grand-Duchy
of Luxembourg, with registered office at 1, rue des Glacis, L-1628 Luxembourg, having a share
capital of 1,750,925 (One million seven hundred fifty thousand nine hundred twenty-five) in process
of registration with the Luxembourg Registre de Commerce et des Sociétés (Trade and Companies
Register) (the “Company”).



	 	 	 
	PRELIMINARY	 	 
	A

	 	The Pledgor is the sole legal owner of 70,037

(Seventy thousand thirty-seven) shares of the

Company representing all the issued share

capital of the Company having a nominal value

of EUR 25 (twenty-five euros) each and fully

paid-up.
	 
	 	 
	B

	 	In accordance with that certain credit

agreement dated September 1, 2005, (as

amended, restated, supplemented or otherwise

modified, the “Credit Agreement”) by and among

Lionbridge Technologies, Inc. (“USCo”),

Lionbridge International f/k/a Lionbridge

Technologies Ireland (the “Irish Borrower”),

Lionbridge Technologies Holdings BV (the

“Dutch Borrower I”), Lionbridge Global

Solutions Holdings (Netherlands) B.V., (the

“Dutch Borrower II” and together with the

Dutch Borrower I, the “Dutch Borrowers”), the

Material Domestic Subsidiaries of the USCo

from time to time party thereto, the

Subsidiaries of the Irish Borrower and the

Dutch Borrowers from time to time party

thereto, the Lenders from time to time party

thereto and the Pledgee, the Pledgor has

undertaken to secure the payment and the

performance of its obligations to the benefit

of the Pledgee notably by granting a pledge

over 100% of the issued shares it holds and

will hold in the Foreign Guarantor(s), as

defined in the Credit Agreement.
	 
	 	 
	C

	 	By a joinder agreement dated August 4, 2006 by

and among the Company, USCo, the Irish

Borrower, the Dutch Borrowers, the Material

Domestic Subsidiaries of USCo party thereto,

the Subsidiaries of the Irish Borrower and the

Dutch Borrowers party thereto and Wachovia

Bank, National Association, in its capacity as

Administrative Agent as defined therein, the

Company is deemed to be a party to and a

Foreign Guarantor under the Credit Agreement.

Consequently, the Pledgor agrees to grant to

the Pledgee a pledge over the Shares (as

further defined below) and the Pledgee accepts

the pledge.
	 
	 	 
	IT IS AGREED AS FOLLOWS:

	 	

	 
	 	 
	ARTICLE 1 -Definitions and Interpretation

	 
	 	 
	1.1.

	 	Definitions






Terms defined in the Credit Agreement shall have the same meaning herein, unless expressly provided
to the contrary. In addition, the following terms shall have the meanings assigned to them in this
Section.



	 	 	 
	Business Day

	 	means any day that is not a Saturday, Sunday or a day on which banking institutions in the city of

Luxembourg are authorized or required by law or regulation to close.
	 
	 	 
	Dividends

	 	means, in relation to any Share, all present and future:







	 	(a)	 	dividends and distributions of any kind
and any other sum received or receivable in respect to that Share;






	 	(b)	 	rights, shares, money or other assets
accruing offered by way of redemption, substitution, exchange,
bonus, option, preference or otherwise in respect of that Share;






	 	(c)	 	allotments, offers and rights accruing
or offered in respect of that Share; and






	 	(d)	 	other rights and assets attaching to,
deriving from or exercisable by virtue of the ownership of, that
Share.





	 	 	 	 	 
	Pledge Agreement

	 	 	 	means this instrument as

originally executed or as it

may from time to time be

supplemented or amended

pursuant to the applicable

provisions hereof.
	 
	 	 	 	 
	Pledge

	 	 	 	means the first ranking pledge

over the Shares and security

interest created pursuant to

this Pledge Agreement granted

by the Pledgor to the Pledgee,

for the benefit of the Lenders.
	 
	 	 	 	 
	Secured Obligations

	 	 	 	means all present and future

liabilities and obligations

(whether actual or contingent

and whether owed jointly or

severally or in any other

capacity whatsoever) which now

or hereafter may be or become

due and owing by the Foreign

Credit Parties to the Pledgee

and the Lenders under the

Credit Documents and to the

Hedging Agreement Providers

under the Secured Hedging

Agreements (including all

Foreign Credit Party

Obligations, as defined in the

Credit Agreement), and

references to “Secured

Obligation” includes references

to any of them.
	 
	 	 	 	 
	Shares

	 	 	 	means all the issued shares

(“parts sociales”) of the

Company held by the Pledgor and

representing 100% of the share

capital of the Company at the

date of this Pledge Agreement

and any further share which

shall be issued, transferred,

distributed or allocated to,

the Pledgor, from time to time,

that shall immediately be and

become subject to the Pledge so

that in the aggregate the

Shares shall always represent

all (100%) of the issued shares

of the Company at any time.
	 
	 	 	 	 
	Winding-Up

	 	 	 	means winding-up, amalgamation,

reconstruction, administration,

dissolution, liquidation,

merger or consolidation or any

analogous procedure or step in

any jurisdiction.
	 
	 	 	 	 
	1.2.

	 	Interpretation
	 	







In this Pledge Agreement, the following rules of interpretation shall apply:




	(a)	 	Headings in this Pledge Agreement are for convenience of reference only;






	(b)	 	Each gender shall include all genders, and the singular shall include the plural, and the
plural the singular, as the context shall require;






	(c)	 	References to any document or agreement in this Pledge Agreement are references to such
document or agreement as the same may from time to time be amended, modified, novated or
supplemented;





	 	 	 
	ARTICLE 2 -Pledge of the Shares
	2.1.

	 	Pledge of the Shares






For the full payment and discharge of the Secured Obligations, the Pledgor hereby grants to the
Pledgee irrevocably and unconditionally a pledge over the Shares and over all proceeds thereof
including all Dividends, cash, instruments, warrants, options and other rights, title, property or
proceeds, benefits and products from time to time received, receivable or otherwise distributed in
respect of or in exchange for the Shares as security for the prompt and complete payment when due
of the Secured Obligations. The Pledgor moreover undertakes to pledge any shares (if any) in the
Company which will be issued in the future by the Company and subscribed by the Pledgor, as
security for the prompt and complete payment when due of the Secured Obligations so that in the
aggregate the Shares shall always represent 100% of the issued shares of the Company at any time.




	2.2.	 	Perfection of the Pledge





The Pledgor and the Pledgee instruct the Company, and by executing this Pledge Agreement, the
Company acknowledges and accepts the Pledge over the Shares and undertakes to duly register the
Pledge in the register of shareholders of the Company in accordance with article 5.(2) c) of the
law of August 5, 2005 on financial collateral arrangements (loi du 5 août 2005 sur les contrats de
garantie financière) using a wording along the following lines:


“Pursuant to a Share Pledge Agreement dated on or around August 4, 2006 between
Lionbridge Holdings Luxembourg S.à r.l. and Wachovia Bank, National Association, in the presence of
Lionbridge Luxembourg S.à r.l., as may be amended, supplemented, restated or novated from time to
time (the “Share Pledge Agreement”), the Shares (as defined in the Share Pledge Agreement),
including all the shares in Lionbridge Luxembourg S.à r.l. referred to in this page of the register
of shares are pledged by Lionbridge Holdings Luxembourg S.à r.l. in favour of Wachovia Bank,
National Association as security for all Secured Obligations (as defined in the Share Pledge
Agreement).”


The Pledgor undertakes to perfect the Pledge, at its own costs and expenses, by the fulfilment of
any further or additional requirement under any applicable law (if any).


The Pledgor and the Company instruct and appoint M. Olivier Dorier as their proxy to register the
Pledge in the register of shareholders of the Company.”



A certified copy of the register of shareholders evidencing the registration shall be delivered by
the Company to the Pledgee promptly after the execution of this Pledge Agreement.




	2.3.	 	Supplemental Pledge





The Pledge created under this Pledge Agreement is in addition and supplemental to and not in
substitution for any other securities held by the Pledgee.




	2.4.	 	Release of the Pledge






	2.4.1.	 	Final redemption






Subject to Clause 2.4.2 (Retention), if the Pledgee is satisfied that all the Secured
Obligations have been irrevocably paid in full and that all facilities which might give rise
to Secured Obligations have terminated, the Pledgee shall at the request and cost of the
Pledgor release and discharge (as appropriate) the Shares from the Pledge.




	2.4.2.	 	Retention






If the Pledgee considers that any amount paid or credited to any Lender under the Credit
agreement is capable of being avoided or otherwise set aside on the Winding-Up of the
Pledgor or any other person, or otherwise, that amount shall not be considered to have been
paid for the purposes of determining whether all the Secured Obligations have been
irrevocably paid.



	 	 	 
	ARTICLE 3 -Allocation of Dividends and exercise of voting rights
	3.1.

	 	Allocation of Dividends






The Pledgor shall be entitled to receive any Dividends, distributions, reimbursed capital or
liquidation bonus, or any amount received in relation to the Shares until the occurrence of an
Event of Default.



At any time after occurrence and during the continuance of an Event of Default, the Pledgee shall
receive and retain any Dividends or other payments in respect of the Shares, which payments shall
be applied against the Secured Obligations in accordance with article 6 (5) of the law of August 5,
2005 on financial collateral arrangements.




	3.2.	 	Exercise of voting rights





The Pledgor shall be entitled to exercise all voting rights attached to the Shares, subject to the
covenants provided for in Section 4.2. hereafter until the occurrence of an Event of Default.



	 	 	 
	ARTICLE 4 -Representations, Warranties and Covenants
	4.1.

	 	Representations and warranties






The Pledgor represents and warrants that:




	(a)	 	It is the sole owner of the Shares and the Pledgor has not sold or disposed of any or all of
the Shares or its rights, titles and interests in the Shares,






	(b)	 	the Shares represent 100% of the share capital of the Company at the execution date of this
Pledge Agreement,






	(c)	 	it has the capacity and the powers to execute this Pledge Agreement and to perform its
obligations pursuant to this Pledge Agreement,






	(d)	 	this Pledge Agreement constitutes legal, valid and binding obligations and as soon as the
Pledge is perfected as stated in Section 2.2., the Pledge creates an effective first ranking
security over the Shares,






	(e)	 	the Shares are free from any encumbrance, except as created in favour of the Pledgee under
this Pledge Agreement.





4.2. Covenants




	(a)	 	Except with the Pledgee’s prior written consent, the Pledgor shall not:






	 	(i)	 	assign or dispose of any or all of its Shares, rights, title or interest in the
Shares,






	 	(ii)	 	create, grant or authorise any encumbrance over the Shares or any restriction
on the ability to transfer or realise any or all of the Shares except as provided in
this Pledge Agreement,






	 	(iii)	 	exercise the voting rights to which the Shares entitle to, in any manner which
would have a material adverse effect over the security constituted by this Pledge
Agreement (including, without limitation, decisions to wind-up or liquidate the
Company, to decrease or to increase its share capital as well as any decision which
could impact on the percentage of shares of the Company pledged by the Pledgor to the
benefit of the Pledgee) or would be inconsistent with the Credit Agreement.






	(b)	 	the Pledgor shall immediately notify the Pledgee of the issuance of any shares or any other
interest in the capital of the Company;






	(c)	 	the Pledgor shall from time to time do all such acts and things and execute and deliver such
deeds, transfers, assignments and documents as the Pledgee may require for perfecting,
protecting or permitting the realisation of the Pledge.





4.3. Negative Covenants



The Pledgor shall not create or permit to subsist any security over the Shares, nor do anything
else prohibited by Article VI (Negative Covenants) of the Credit Agreement except as permitted by
this Pledge Agreement.



	 	 	 
	ARTICLE 5 -Enforcement of the Pledge of the Shares
	5.1.

	 	Realisation of the Pledge






Upon the occurrence of an Event of Default as defined in the Credit Agreement, the Pledgee, without
any demand or notice of any kind, other than the notice specified in the Credit Agreement, may, if
any of the Secured Obligations have become due and payable and have not been paid, realise the
Shares or any part thereof, with the right for the Pledgee:




	 	(i)	 	to appropriate any Shares at the fair market value of such Shares as determined
by the Pledgee in its absolute discretion, whose determinations and valuations shall be
made in good faith and shall be binding absent manifest error; and/or






	 	(ii)	 	to sell any Shares that constitute financial instruments (including, without
limitation, transferable securities) listed on a stock exchange or dealt in one of the
markets defined by article 11 (1) (e) of the Law of 5 August 2005 on financial
collateral arrangements or to cause the sale thereof on the stock exchange or on the
aforesaid market through the intermediary of a person whom the Pledgee may designate,
or to appropriate such Shares at the prevailing market value; and/or






	 	(iii)	 	to sell or cause the sale of any Shares by private contract at arm’s length or
by public auction or through a stock exchange; and/or






	 	(iv)	 	in respect of any Shares consisting of claims for sums of money, to exercise
any set-off rights pursuant to the terms of article 18 of the Law of 5 August 2005 on
financial collateral arrangements; and/or






	 	(v)	 	to apply to court to be authorized to make an appropriation of the Shares at a
price to be determined by independent experts; and/or






	 	(vi)	 	in respect of any Shares, to realise in any other manner provided for by
applicable law.





For the implementation of any of the above enforcement methods, it is hereby acknowledged and
agreed by the parties that the Company shall abide by the instructions of the Pledgee, with no
obligation for the Pledgee or the Company to seek the Pledgor’s approval or to inform it, as soon
as the Pledgee shall have notified the Company in writing (by e-mail, fax or hand delivery) of the
enforcement of the Pledge in accordance with the terms hereof, including without limitation, those
instructions relating to the appropriation of the Shares and the payment of any cash proceeds in
the hands of the Pledgee. Without affecting the rights of the Pledgor or the obligations hereby
imposed on the Company, the Pledgee shall as soon as practicable forward to the Pledgor any such
notification made in accordance with the preceding sentence.



To the extent necessary, in case of realisation of the Pledge, the Pledgor hereby expressly and
irrevocably waives any right, claim or objection deriving from any restriction applicable to the
transfer of the Shares, including any restriction provided in the articles of incorporation of the
Company and/or in any shareholders’ agreement relating to the Company.




	5.2.	 	Application of proceeds





The Pledgee shall apply the proceeds of the realisation of the Pledge in accordance with Section
2.13 (b) of the Credit Agreement.




	5.3.	 	Indemnity





The Pledgee shall not be bound to realize the Pledge and the Pledgee shall not be responsible for
any loss or damage suffered by the Pledgor by reason of any sale or other dealing with all or any
part of the Shares permitted by and made in accordance with Luxembourg law or by the abstention of
the Pledgee to exercise its rights, powers or remedies under this Pledge Agreement or by virtue of
Luxembourg law, except in the case of gross negligence or wilful misconduct of the Pledgee.



	 	 	 
	ARTICLE 6 -Right of recourse
	6.1.

	 	Immediate recourse






The Pledgor waives any right it may have of first requiring any Lender (or any trustee or agent on
its behalf) to proceed against or enforce any other rights or security or claim payment from any
person before claiming from that Pledgor under this Pledge Agreement, except as shall be required
by applicable statute and cannot be waived.




	6.2.	 	Deferral of Pledgor’s rights





Until all the Secured Obligations have been irrevocably paid in full and all facilities which might
give rise to Secured Liabilities have terminated and unless the Pledgee otherwise directs, the
Pledgor will not exercise any rights which it may have by reason of performance by it of its
obligations under the Credit Agreement:




	(a)	 	to be indemnified by any Borrower, US Guarantor or Foreign Guarantor;






	(b)	 	to claim any contribution from any other Pledgor or any other guarantor of any Borrower’s, US
Guarantor’s or Foreign Guarantors’ obligations under the Credit Agreement; and/or






	(c)	 	to take the benefit (in whole or in part and whether by way of subrogation, pursuant to
notably Articles 1251-3°, 2029 and 2037 of the Luxembourg Civil Code, or otherwise) of any
rights of the Lenders under the Credit Agreement or of any guarantee or other security taken
pursuant to, or in connection with, the Credit Agreement by any Lender.





	 	 	 
	ARTICLE 7 -Miscellaneous
	7.1.

	 	No waiver – cumulative remedies






No failure on the part of the Pledgee to exercise and no delay in exercising any right, power or
remedy under this Pledge Agreement shall operate as a waiver thereof, nor shall any single or
partial exercise of any right, power or remedy preclude any other or further exercise of that
right, power or remedy. The rights and remedies herein provided are cumulative and may be exercised
singly or concurrently, and are not exclusive of any rights or remedies provided by law.




	7.2.	 	Notices





Except as otherwise provided in this Pledge Agreement:




	(a)	 	all notices and communications shall be given or made in writing and shall be personally
delivered by mail or sent by fax to the intended recipient at the address for notices
specified below or, or as to any party, at such other address as shall be designated by such
party in a notice to the other parties.






	(b)	 	All such notices and communications shall be deemed to have been duly given on the day upon
which they were delivered or received by fax if delivered or received on a Business Day prior
to [4:00 pm] local time or on the next Business Day if received after [4:00 pm] or on a day
that is not a Business Day.





if to the Pledgor:


1, rue des Glacis


L-1628 Luxembourg



if to the Pledgee:



Wachovia Bank, National Association, as Administrative Agent


201 South College Street,


Charlotte, North Carolina 28288


Fax: (704) 374-2698



if to the Company:


1, rue des Glacis


L-1628 Luxembourg




	7.3.	 	Amendment





Any and all amendments to this Pledge Agreement shall be made in writing.




	7.4.	 	Successors and permitted assigns





This Pledge Agreement shall be binding upon the Pledgor and its successors and assigns and shall
inure to the benefit of the Pledgee and its successors and permitted assigns.




	7.5.	 	Severability





If any provision of this Pledge Agreement is declared invalid and unenforceable in any
jurisdiction, then, to the fullest extent permitted by law, (i) the other provisions shall remain
in full force and effect in such jurisdiction and shall be construed in order to carry out the
intentions of the parties as nearly as may be possible and (ii) the invalidity or unenforceability
of such provision in such jurisdiction shall not affect the validity or enforceability of that
provision in any other jurisdiction.




	7.6.	 	Costs and expenses





The Pledgor agrees to reimburse the Pledgee for all reasonable out-of-pocket costs and expenses
(including, without limitation, the reasonable legal fees and expenses) in connection with the
execution of this Pledge Agreement, the perfection and the enforcement of the Pledge.




	7.7.	 	Governing law and jurisdiction





This Pledge Agreement shall be governed by and construed in accordance with Luxembourg laws. The
Courts of the city of Luxembourg shall have exclusive jurisdiction to settle any dispute arising
out of or in relation to this Pledge Agreement.



IN WITNESS WHEREOF, the parties hereto have caused this Pledge Agreement to be duly executed in 3
(three) copies by their respective authorized officers as of the day and year first written above.



     



	 	 	 	 	 
	Lionbridge Holdings Luxembourg S.à r.l.
	By:
	 	 	—	 
	Title:
	 	Manager







     



	 	 	 	 	 
	Wachovia Bank, National Association
	By:
	 	 	—	 
	Title:
	 	 	—	 






By signing, the Company acknowledges and accepts the existence of the Pledge over the Shares
created under this Pledge Agreement for the purpose of the registration in the register of
shareholders of the Company.



     



	 	 	 	 	 
	Lionbridge Luxembourg S.à r.l.
	By:
	 	 	—	 
	Title:
	 	Manager








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