Document:

REGISTRATION RIGHTS AGREEMENT AMOUNG LIONBRDIGE AND THE INVESTORS

 
Exhibit 10.2

 
REGISTRATION RIGHTS AGREEMENT

 
This REGISTRATION RIGHTS AGREEMENT
(“Agreement”) is made as of April 29, 2003 by Lionbridge Technologies, Inc. (the “Company”) and the persons listed as the Investors on the signature pages hereto (the “Investors”), and each person or entity that
subsequently becomes a party to this Agreement pursuant to, and in accordance with, the provisions of Section 11 hereof (collectively, the “Permitted Transferees” and each individually a “Permitted Transferee”). 
 
WHEREAS, pursuant to a purchase agreement (the “Purchase
Agreement”), dated as of the date hereof, the Sellers have agreed to sell to the Investors, and each Investor has agreed to purchase from the Sellers, shares (the “Shares”) of the Company’s authorized and issued but unregistered
common stock, $0.01 par value per share (the “Common Stock”); 
 
WHEREAS, the terms of the Purchase Agreement provide that it shall be a condition precedent to the closing of the transactions thereunder for the Company, EGE and the Investors to execute and deliver this Agreement.

 
NOW, THEREFORE, in consideration of the premises
and mutual covenants contained herein, the parties hereto hereby agree as follows: 
 
1. DEFINITIONS. As used in this Agreement, the following terms shall have the following respective meanings: 
 
“Closing” shall mean the Initial Closing under the Purchase Agreement. 
 
“Exchange Act” shall mean the Securities Exchange
Act of 1934, as amended, and all of the rules and regulations promulgated thereunder. 
 
“Holder” shall mean, collectively, the Investors and the Permitted Transferees; provided, however, that the term “Holder” shall not include any of the foregoing that
ceases to own or hold any Registrable Securities. 
 
“Qualifying Holder” shall have the meaning ascribed thereto in Section 11 hereof. 
 
“Registrable Securities” shall mean (i) the Shares bought by the Investors pursuant to the Purchase Agreement, provided,
however, that all Registrable Securities shall cease to be Registrable Securities once they have been sold pursuant to a registration statement. 
 
“Rule 144” shall mean Rule 144 promulgated under the Securities Act and any successor or substitute rule, law or provision.

 
“SEC” shall mean the Securities and
Exchange Commission. 

 
“Securities Act” shall mean the Securities Act of 1933, as amended, and all of the rules and regulations promulgated there under. 
 
2. EFFECTIVENESS. This Agreement shall become effective and legally binding upon the Closing. 
 
3. MANDATORY REGISTRATION. 
 
(a) Within thirty (30) days after the Closing
(or, if the date that is thirty (30) days after the Closing is not a business day, the next business day immediately following such date), the Company will prepare and file with the SEC a registration statement on Form S-3 or any successor form
(except that if the Company is not then eligible to register for resale the Registrable Securities on Form S-3, then such registration shall be on Form S-l or any successor form) for the purpose of registering under the Securities Act all of the
Registrable Securities for resale by, and for the account of, the Holders as selling stockholders thereunder (the “Registration Statement”). The Registration Statement shall permit the Holders to offer and sell, on a delayed or continuous
basis pursuant to Rule 415 under the Securities Act, any or all of the Registrable Securities. The Company agrees to use commercially reasonable efforts to cause the Registration Statement to become effective as soon as practicable (which shall
include using commercially reasonable efforts to respond to any comments of the SEC in respect of the Registration Statement within ten (10) business days following receipt thereof). The Company shall be required to keep the Registration Statement
effective until such date that is the earlier of (i) the date when all of the Registrable Securities registered thereunder shall have been sold or (ii) two (2) years after the Closing, subject to extension as set forth below (such date is referred
to herein as the “Mandatory Registration Termination Date”). Thereafter, the Company shall be entitled to withdraw the Registration Statement and the Holders shall have no further right to offer or sell any of the Registrable Securities
pursuant to the Registration Statement (or any prospectus relating thereto). In the event the right of the selling Holders to use the Registration Statement (and the prospectus relating thereto) is delayed or suspended pursuant to Sections 4(c) or
10 hereof, if the events described in subsection (a)(i) or (ii) have not yet occurred, the Company shall be required to extend the Mandatory Registration Termination Date by the same number of days as such delay or Suspension Period (as defined in
Section 10 hereof), provided that such delay is not the result of the Holders’ failure or delay to furnish information required under Section 5 hereof. 
 
(b) Within three (3) business days after a Registration Statement that covers applicable Registrable Securities is
declared effective by the SEC, the Company shall deliver, or shall cause legal counsel to deliver, to the transfer agent for such Registrable Securities (with copies to the Holders whose Registrable Securities are included in such Registration
Statement) confirmation that such Registration Statement has been declared effective by the SEC in substantially the form attached hereto as Exhibit B. 
 
4. OBLIGATIONS OF THE COMPANY. In connection with the Company’s obligation under Section 3 hereof to file the Registration Statement
with the SEC and to use commercially reasonable efforts to cause the Registration Statement to become effective, the Company shall: 
 

2 

 
(a) Prepare and file with the SEC, as expeditiously as reasonably practicable, such amendments and supplements to the Registration Statement and the prospectus used in connection therewith as may be necessary to comply with the
provisions of the Securities Act with respect to the disposition of all Registrable Securities covered by the Registration Statement; 
 
(b) Promptly furnish to the selling Holders a copy of a prospectus, including a preliminary prospectus, in conformity with
the requirements of the Securities Act, and such other publicly available documents (including, without limitation, prospectus amendments and supplements as are prepared by the Company in accordance with Section 4(a) above) as the selling Holders
may reasonably request in order to facilitate the disposition of such selling Holder’s Registrable Securities; 
 
(c) Subject to Section 10 hereof, promptly notify the selling Holders, at any time when a prospectus relating to the
Registration Statement is required to be delivered under the Securities Act, of the occurrence of any event as a result of which the prospectus included in or relating to the Registration Statement contains an untrue statement of a material fact or
omits any fact necessary to make the statements therein not misleading in light of the circumstances in which they are made; and, thereafter, the Company will promptly prepare (and, when completed, give notice to each selling Holder) a supplement or
amendment to such prospectus so that, as thereafter delivered to the purchasers of such Registrable Securities, such prospectus will not contain an untrue statement of a material fact or omit to state any fact necessary to make the statements
therein not misleading in light of the circumstances in which they are made; provided that upon such notification by the Company, the selling Holders will not offer or sell Registrable Securities until the Company has notified the selling Holders
that it has prepared a supplement or amendment to such prospectus and delivered copies of such supplement or amendment to the selling Holders (it being understood and agreed by the Company that the foregoing proviso shall in no way diminish or
otherwise impair the Company’s obligation to promptly prepare a prospectus amendment or supplement as above provided in this Section 4(c) and deliver copies of same as above provided in Section 4(b) hereof); 
 
(d) Use commercially reasonable efforts to
register and qualify the Registrable Securities covered by the Registration Statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably appropriate in the opinion of the Company and the managing underwriters,
if any, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business, to file a general consent to service of process or to become subject to any material tax in any such states or
jurisdictions, and provided further that (notwithstanding anything in this Agreement to the contrary with respect to the bearing of expenses) if any jurisdiction in which any of such Registrable Securities shall be qualified shall require that
expenses incurred in connection with the qualification therein of any such Registrable Securities be borne by the selling Holder, then the selling Holders shall, to the extent required by such jurisdiction, pay their pro rata share of such
qualification expenses; and 
 
(e)
Promptly after a sale of Registrable Securities pursuant to the Registration Statement (assuming that no stop order is in effect with respect to the Registration Statement at the time of such sale), the Company shall cooperate with the selling
Holder and provide the 

 

3 

transfer agent for the Common Stock with such instructions and legal opinions as may be required in order to facilitate the issuance to the
purchaser (or the selling Holder’s broker) of new unlegended certificates for such Registrable Securities. 
 
5. FURNISH INFORMATION. It shall be a condition precedent to the obligations of the Company to take any action pursuant to this Agreement
that the selling Holders shall furnish to the Company such information regarding them and the securities held by them as the Company shall reasonably request and as shall be required in order to effect any registration by the Company pursuant to
this Agreement. 
 
6. EXPENSES OF REGISTRATION.
Expenses incurred in connection with the registration of the Registrable Securities pursuant to this Agreement (excluding underwriting, brokerage and other selling commissions and discounts), including without limitation all registration and
qualification and filing fees, printing, and fees and disbursements of counsel for the Company, shall be borne by the Company. 
 
7. DELAY OF REGISTRATION. The Holders shall not take any action to restrain, enjoin or otherwise delay any registration as the result of
any controversy which might arise with respect to the interpretation or implementation of this Agreement. 
 
8. INDEMNIFICATION AND CONTRIBUTION. 
 
(a) To the extent permitted by law, the Company will indemnify and hold harmless each selling Holder, any investment
banking firm acting as an underwriter for the selling Holder, any broker/dealer acting on behalf of any selling Holder and each officer and director of such selling Holder, such underwriter, such broker/dealer and each person, if any, who controls
such selling Holder, underwriter or broker/dealer within the meaning of the Securities Act, against any losses, claims, damages or liabilities, joint or several, to which they may become subject under the Securities Act or otherwise, insofar as such
losses, claims, damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue or alleged untrue statement of any material fact contained in the Registration Statement, in any preliminary prospectus or final
prospectus relating thereto or in any amendments or supplements to the Registration Statement or any such preliminary prospectus or final prospectus, or arise out of or are based upon the omission or alleged omission to state therein a material fact
required to be stated therein, or necessary to make the statements therein not misleading in light of the circumstances in which they are made; and will reimburse such selling Holder, such underwriter, broker/dealer or such officer, director or
controlling person for any legal or other expenses reasonably incurred by them in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however, that the liability of the Company to each
selling Holder hereunder shall be limited to the gross proceeds (net of underwriting discounts and commissions, if any) received by such selling Holder from the sale of Registrable Securities covered by the Registration Statement, provided,
further that the indemnity agreement contained in this Section 8(a) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is effected without the consent of the Company (which
consent shall not be unreasonably withheld), nor shall the Company be liable in any such case for any such loss, damage, liability or action to the extent that it arises out of or is based upon an untrue statement or alleged untrue statement or
omission or alleged omission made in connection 

 

4 

with the Registration Statement, any preliminary prospectus or final prospectus relating thereto or any amendments or supplements to the
Registration Statement or any such preliminary prospectus or final prospectus, in reliance upon and in conformity with written information furnished expressly for use in connection with the Registration Statement or any such preliminary prospectus
or final prospectus by the selling Holder, any underwriter for them or controlling person with respect to them. This Section 8(a) shall not inure to the benefit of any selling Holder with respect to any person asserting loss, damage, liability or
action as a result of a selling Holder selling Registrable Securities during a Suspension Period (as defined in Section 10 hereof) or selling in violation of Section 5(c) of the Securities Act. 
 
(b) To the extent permitted by law, each
selling Holder will severally and not jointly indemnify and hold harmless the Company, each of its officers and directors, each person, if any, who controls the Company within the meaning of the Securities Act, any investment banking firm acting as
underwriter for the Company or the selling Holder, or any broker/dealer acting on behalf of the Company or any other selling Holder, and all other selling Holders against any losses, claims, damages or liabilities to which the Company or any such
director, officer, controlling person, underwriter, or broker/dealer or other selling Holder may become subject to, under the Securities Act or otherwise, insofar as such losses, claims, damages or liabilities (or actions in respect thereto) arise
out of or are based upon any untrue or alleged untrue statement of any material fact contained in the Registration Statement or any preliminary prospectus or final prospectus, relating thereto or in any amendments or supplements to the Registration
Statement or any such preliminary prospectus or final prospectus, or arise out of or are based upon the omission or alleged omission to state therein a material fact required to be stated therein or necessary to make the statements therein not
misleading in light of the circumstances in which they are made, in each case to the extent and only to the extent that such untrue statement or alleged untrue statement or omission or alleged omission was made in the Registration Statement, in any
preliminary prospectus or final prospectus relating thereto or in any amendments or supplements to the Registration Statement or any such preliminary prospectus or final prospectus, in reliance upon and in conformity with written information
furnished by such selling Holder expressly for use in connection with the Registration Statement or any preliminary prospectus or final prospectus related thereto; and such selling Holders will reimburse any legal or other expenses reasonably
incurred by the Company or any such director, officer, controlling person, underwriter, broker/dealer or other selling Holder in connection with investigating or defending any such loss, claim, damage, liability or action; provided, however,
that the liability of each selling Holder hereunder shall be limited to the gross proceeds (net of underwriting discounts and commissions, if any) received by such selling Holder from the sale of Registrable Securities covered by the
Registration Statement; and provided, further, however, that the indemnity agreement contained in this Section 8(b) shall not apply to amounts paid in settlement of any such loss, claim, damage, liability or action if such settlement is
effected without the consent of those selling Holder(s) against which the request for indemnity is being made (which consent shall not be unreasonably withheld). 
 
(c) Promptly after receipt by an indemnified party under this Section 8 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against any indemnifying party under this Section 8, notify the indemnifying party in writing of the commencement thereof and the indemnifying party
shall have the right to participate in and, to the extent the indemnifying party desires, jointly with any 

 

5 

other indemnifying party similarly noticed, to assume at its expense the defense thereof with counsel mutually satisfactory to the
indemnifying parties with the consent of the indemnified party (which consent will not be unreasonably withheld, conditioned or delayed). In the event that the indemnifying party assumes any such defense, the indemnified party may participate in
such defense with its own counsel and at its own expense, provided, however, that the counsel for the indemnifying party shall act as lead counsel in all matters pertaining to such defense or settlement of such claim and the indemnifying
party shall only pay for such indemnified party’s expenses for the period prior to the date of its participation on such defense. The failure to notify an indemnifying party promptly of the commencement of any such action, if materially
prejudicial to his ability to defend such action, shall relieve such indemnifying party of any liability to the indemnified party under this Section 8 to the extent of such prejudice, but the omission so to notify the indemnifying party will not
relieve him of any liability which he may have to any indemnified party otherwise other than under this Section 8. 
 
(d) Notwithstanding anything to the contrary herein, without the prior written consent of the indemnified party, the
indemnifying party shall not be entitled to settle any claim, suit or proceeding unless in connection with such settlement the indemnified party receives an unconditional release with respect to the subject matter of such claim, suit or proceeding
and such settlement does not contain any admission of fault by the indemnified party. 
 
(e) In order to provide for just and equitable contribution under the Securities Act in any case in which (i) the
indemnified party makes a claim for indemnification pursuant to Section 8 hereof but is judicially determined (by the entry of a final judgment or decree by a court of competent jurisdiction and the expiration of time to appeal or the denial of the
last right of appeal) that such indemnification may not be enforced in such case notwithstanding the fact that the express provisions of Section 8 hereof provide for indemnification in such case, or (ii) contribution under the Securities Act may be
required on the part of any indemnified party, then the Company and the applicable selling Holder shall contribute to the aggregate losses, claims, damages or liabilities to which they may be subject (which shall, for all purposes of this Agreement,
include, but not be limited to, all reasonable costs of defense and investigation and all reasonable attorneys’ fees), in either such case (after contribution from others) on the basis of relative fault as well as any other relevant equitable
considerations. The relative fault shall be determined by reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission or alleged omission to state a material fact relates to information
supplied by the Company on the one hand or the applicable selling Holder on the other hand, and the parties’ relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. The Company and the
Holders agree that it would not be just and equitable if contribution pursuant to this Section 8(e) were determined by pro rata allocation or by any other method of allocation which does not take account of the equitable considerations referred to
in this Section 8(e). The amount paid or payable by an indemnified party as a result of the losses, claims, damages or liabilities (or actions in respect thereof) referred to above in this Section 8 shall be deemed to include any legal or other
expenses reasonably incurred by such indemnified party in connection with investigating or defending any such action or claim. No person guilty of fraudulent misrepresentation (within the meaning of Section 1 l(f) of the Securities Act) shall be
entitled to contribution from any person who was not guilty of such fraudulent misrepresentation. 
 

6 

 
Notwithstanding any other provision of this Section 8(e), in no event shall neither the Company nor any selling Holder be required to undertake liability to any person under this Section 8(e) for any amounts in excess of the dollar
amount of the gross proceeds to be received by the selling Holder from the sale of such selling Holder’s Registrable Securities (after deducting any fees, discounts and commissions applicable thereto) pursuant to any Registration Statement
under which such Registrable Securities are or were to be registered under the Securities Act. 
 
9. REPORTS UNDER THE EXCHANGE ACT. With respect to each Holder, from the date of Closing until the date on which all of the Registrable Securities that such Holder owns or has the right to acquire
become freely transferable under Rule 144(k) promulgated under the Securities Act, the Company agrees to use its best efforts: (i) to make and keep public information available, as those terms are understood and defined in the General Instructions
to Form S-3, or any successor or substitute form, and in Rule 144, (ii) to file with the SEC all reports and other documents required to be filed by an issuer of securities registered under Sections 13 or 15(d) of the Exchange Act, and (iii) if such
filings are not available via EDGAR, to furnish to such Holder as long as the Holder owns or has the right to acquire any Registrable Securities prior to the applicable termination date described above, a copy of the most recent annual or quarterly
report of the Company, and such other reports and documents so filed by the Company under Sections 13 or 15(d) of the Exchange Act as may be reasonably requested in availing such Holder of any rule or regulation of the SEC permitting the selling of
any such Registrable Securities without registration. 
 
10. DEFERRAL AND LOCK-UP. Notwithstanding anything in this Agreement to the contrary, if the Company shall furnish to the selling Holders a certificate signed by the President and Chief Executive Officer of the Company stating that
the Board has made the good faith determination (i) that continued use by the selling Holders of the Registration Statement for purposes of effecting offers or sales of Registrable Securities pursuant thereto would require, under the Securities Act,
disclosure in the Registration Statement (or the prospectus relating thereto) of material, nonpublic information concerning the Company, its business or prospects or any proposed transaction involving the Company, (ii) that such disclosure would be
premature and would be adverse to the Company, its business or prospects or any such proposed transaction or would make the successful consummation by the Company of any such transaction significantly less likely and (iii) that it is therefore
essential to suspend the use by the Holders of such Registration Statement (and the prospectus relating thereto) for purposes of effecting offers or sales of Registrable Securities pursuant thereto, then the right of the selling Holders to use the
Registration Statement (and the prospectus relating thereto) for purposes of effecting offers or sales of Registrable Securities pursuant thereto shall be suspended for a period (the “Suspension Period”) of not more than 15 days after
delivery by the Company of the certificate referred to above in this Section 10. During the Suspension Period, none of the Holders shall offer or sell any Registrable Securities pursuant to or in reliance upon the Registration Statement (or the
prospectus relating thereto). The Company may not exercise this right for more than ninety (90) days in aggregate during any 12-month period. 
 
11. TRANSFER OF REGISTRATION RIGHTS. None of the rights of any Holder under this Agreement shall be transferred or assigned to any person
unless (i) such person is a Qualifying Holder (as defined below), (ii) such person agrees to become a party to, and bound by 

 

7 

all of the terms and conditions of, this Agreement by duly executing and delivering to the Company an Instrument of Adherence in the form
attached as Exhibit A hereto, (iii) the transfer or assignment is made in accordance with the applicable requirements of the Purchase Agreement and (iv) following the transfer or assignment, the further disposition of the Registrable Securities by
such person is restricted under the Securities Act and applicable state securities laws. For purposes of this Section 11, the term “Qualifying Holder” shall mean, with respect to any Holder, (a) any corporation, partnership or other
affiliated entity controlling, controlled by, or under common control with, such Holder, or any partner or former partner, if such Holder is a partnership, or (b) any other direct transferee from such Holder of at least 50% of those Registrable
Securities held or that may be acquired by such Holder. None of the rights of any Holder under this Agreement shall be transferred or assigned to any person (including, without limitation, a Qualifying Holder) that acquires Registrable Securities in
the event that and to the extent that such Person is eligible to resell such Registrable Securities pursuant to Rule 144(k) of the Securities Act. 
 
12. ENTIRE AGREEMENT. This Agreement constitutes and contains the entire agreement and understanding of the parties with respect to the
subject matter hereof, and it also supersedes any and all prior negotiations, correspondence, agreements or understandings with respect to the subject matter hereof. 
 
13. MISCELLANEOUS. 
 
(a) This Agreement shall be governed by and construed and enforced in accordance with the laws of the State of Delaware,
and shall be binding upon and inure to the benefit of the parties hereto and their respective heirs, personal representatives, successors or assigns, provided that the terms and conditions of Section 11 hereof are satisfied. This Agreement shall
also be binding upon and inure to the benefit of any transferee of any of the Registrable Securities provided that the terms and conditions of Section 11 hereof are satisfied. Notwithstanding anything in this Agreement to the contrary, if at any
time any Holder shall cease to own all of its Registrable Securities, all of such Holder’s rights under this Agreement shall immediately terminate. 
 
(b) (i) Any notices, reports or other correspondence (hereinafter collectively referred to as “correspondence”)
required or permitted to be given hereunder shall be sent by courier (overnight or same day) or telecopy or delivered by hand to the party to whom such correspondence is required or permitted to be given hereunder. The date of giving any notice
shall be the date of its actual receipt. 
 
(ii) All correspondence to the Company shall be addressed as follows: 
 
Lionbridge Technologies, Inc. 
950 Winter Street 
Waltham, MA 02451 
Attention: Margaret A Shukur, General Counsel 
Telecopier: 781-434-6057 
 

8 

 
(iii) All correspondence to any Holder shall be sent to the address set forth on such Holder’s signature page hereto (or, in the case of a Permitted Transferee, such Permitted Transferee’s Instrument of Adherence hereto).

 
(iv) Any party may change the
address to which correspondence to it is to be addressed by notification as provided for herein. 
 
(c) The parties acknowledge and agree that in the event of any breach of this Agreement, remedies at law may be
inadequate, and each of the parties hereto shall be entitled to seek specific performance of the obligations of the other parties hereto and such appropriate injunctive relief as may be granted by a court of competent jurisdiction. 
 
(d) This Agreement may be executed in a
number of counterparts, each of which together shall for all purposes constitute one Agreement, binding on all the parties hereto notwithstanding that all such parties have not signed the same counterpart. 
 

9 

 
IN WITNESS
WHEREOF, the parties hereto have executed this Registration Rights Agreement as of the date and year first above written. 
 
LIONBRIDGE TECHNOLOGIES, INC. 
 

	
	 By:
	 	 /s/    
        

	 Name:
 Title:
	 	 Stephen J. Lifshatz
 Chief Financial Officer

 
INVESTOR: 
 
Print Name of Investor: 
 
 
 

	
	 /s/

 

	
	 By:
	 	

	 Name:
 Title:
	 	 

 
Investor’s Address, Email and Fax Number for Notice: 

	
	

	
	

	
	

 
[SIGNATURE PAGE TO REGISTRATION RIGHTS AGREEMENT] 
 

10 

 
EXHIBIT A

 
INSTRUMENT OF ADHERENCE 
 
Reference is hereby made to that certain Registration Rights Agreement, dated
as of             , 2003, among Lionbridge Technologies, Inc., a Delaware corporation (the “Company”), the Investors and the Permitted Transferees, as amended and in effect
from time to time (the “Registration Rights Agreement’). Capitalized terms used herein without definition shall have the respective meanings ascribed thereto in the Registration Rights Agreement. 
 
The undersigned, in order to become the owner or holder of, or have the right
to acquire,            shares of Registrable Securities, hereby agrees that, from and after the date hereof, the undersigned has become a party to the Registration Rights Agreement
in the capacity of a Permitted Transferee, and is entitled to all of the benefits under, and is subject to all of the obligations, restrictions and limitations set forth in, the Registration Rights Agreement that are applicable to Permitted
Transferees. This Instrument of Adherence shall take effect and shall become a part of the Registration Rights Agreement immediately upon execution. 
 
Print Name of Permitted Transferee: 
 

	
	

	
	 By:
	 	  

	 Name:
 Title:
	 	 

 
Permitted Transferee’s Address, Email and Fax Number for Notice: 
 

	
	

	
	

	
	

Accepted: 
 
Lionbridge Technologies, Inc. 
 

	
	 By:
	 	  

	 Name:
 Title:

  
 Date:
	 	

 
 
 

11 

 
EXHIBIT B

 
FORM OF NOTICE OF EFFECTIVENESS OF
REGISTRATION STATEMENT 
 
[Transfer Agent] 
 
Re: Lionbridge Technologies, Inc. 
 
Ladies and Gentlemen: 
 
We are counsel to Lionbridge Technologies, Inc., a Delaware corporation (the
“Company”), and have represented the Company in connection with: (i) that certain Purchase Agreement (the “Purchase Agreement”) entered into by and among the Company and the Purchasers named therein (the “Purchasers”)
pursuant to which the Seller sold to the Purchasers shares of the Company’s Common Stock, par value $0.01 per share. Pursuant to the Purchase Agreement, the Company has also entered into a Registration Rights Agreement with the Holders named
therein (the “Registration Rights Agreement”) pursuant to which the Company has agreed, among other things, to register the Registrable Securities (as defined in the Registration Rights Agreement), under the Securities Act of 1933, as
amended (the “1933 Act”). In connection with the Company’s obligations under the Registration Rights Agreement, on                 , 2003, the
Company filed a Registration Statement on Form [S-3/S-1] (File No. 333-            ) (the “Registration Statement”) with the Securities and Exchange Commission (the
“SEC”) relating to the Registrable Securities which names each of the Holders as a selling stockholder thereunder. 
 
In connection with the foregoing, we advise you that a member of the SEC’s staff has advised us by telephone that the SEC has entered an order
declaring the Registration Statement effective under the 1933 Act at [time of effectiveness] on [date of effectiveness] and we have no knowledge, after telephonic inquiry of a member of the SEC’s staff, that any stop order suspending its
effectiveness has been issued or that any proceedings for that purpose are pending before, or threatened by, the SEC and the Registrable Securities are available for resale under the 1933 Act pursuant to the Registration Statement. 
 
Very truly yours, 
 
cc: [Holders] 
 

12FORM INDEMNIFICATION AGREEMENT BETWEEN LIONBRIDGE AND ITS OFFICERS & DIRECTORS

Exhibit 10.3 
 
INDEMNITY AGREEMENT 
 
THIS INDEMNITY AGREEMENT (this “Agreement”) entered into, effective as of April 24, 2003, by
and between Lionbridge Technologies, Inc., a Delaware corporation (the “Company”), and the other undersigned persons and entities. 
 
W I T N E S S E T H     T H A T : 
 
WHEREAS, it is essential to the Company to attract and retain as investors and directors the most capable
organizations and individuals available; and 
 
WHEREAS, the Company and the Indemnitees (as defined below) recognize the risk of litigation and other claims currently being asserted against any of the Indemnitees; and 
 
WHEREAS, in recognition of the Indemnitees’ need for substantial protection against liability and in
order to enhance Indemnitees’ continued and effective service to the Company, the Company desires to provide for the indemnification of, and the advancing of expenses to, the Indemnitees to the fullest extent permitted by law and as set forth
in this Agreement; 
 
NOW, THEREFORE, in
consideration of the foregoing and intending to be legally bound hereby, the parties hereto agree as follows: 
 
1. Certain Definitions. As used in this Agreement, the capitalized terms listed below shall have the meanings ascribed to them as
follows: 
 
1.1 Affiliate.
With respect to any Person, any Person which, directly or indirectly, controls, is controlled by or is under common control with such Person, either prior to or after the execution of this Agreement, including any partner, officer, director, member
or employee of such Person and any venture capital fund now or hereafter existing which is controlled by or under common control with one or more general partners or shares the same management company with such Person. 
 
1.2 Board. The Board of Directors of
the Company. 
 
1.3 Expense
Advance. This term is defined in Section 3. 
 
1.4 Expenses. Any expense, liability, or loss, including attorneys’ and professionals’ fees, judgments, fines, ERISA excise taxes and penalties, amounts paid or to be paid in settlement, any interest,
assessments, or other charges imposed thereon, and any federal, state, local, or foreign taxes imposed as a result of the actual or deemed receipt of any payments under this Agreement, paid or incurred in connection with investigating, defending,
being a witness in, or participating in (including on appeal), or preparing for any of the foregoing in, any Proceeding relating to any Indemnifiable Event. 
 
1.5 Indemnifiable Event. Any event or occurrence that takes place either prior to or after the execution of this
Agreement: 

 
(a) related to the fact that Indemnitee was, is, or has agreed to serve as (i) a director, officer, employee, trustee, agent or fiduciary of the Company, (ii) any subsidiary of the Company, or (iii) at the request of the Company, a
director, officer, member, employee, trustee, agent, or fiduciary of any Person other than the Company, and 
 
(b) related to anything done or not done by Indemnitee in any such capacity, whether or not the basis of the Proceeding is
alleged action in an official capacity while serving as described in clause (a) above. 
 
1.6 Indemnitee. Any Person other than the Company that is a signatory to this Agreement, and any Affiliates of such
Person. 
 
1.7 Person. Any
individual, partnership, corporation, limited liability company, association, trust, joint venture, unincorporated organization or other entity or enterprise, and any government, governmental department or agency or political subdivision thereof.

 
1.8 Proceeding. Any
threatened, pending, or completed action, suit, or proceeding, or any inquiry, hearing, or investigation, whether conducted by the Company or any other party, that Indemnitee in good faith believes might lead to the institution of any such action,
suit, or proceeding, whether civil, criminal, administrative, investigative or other. 
 
2. Agreement to Indemnify. In the event Indemnitee is, or becomes a party to, or witness or other participant in, or is threatened to be made a party to, or witness or other participant in, a
Proceeding by reason of (or arising in part out of) an Indemnifiable Event, the Company shall indemnify Indemnitee from and against any and all Expenses to the fullest extent permitted by law, as the same exists or may hereafter be amended or
interpreted (but in the case of any such amendment or interpretation, only to the extent that such amendment or interpretation permits the Company to provide broader indemnification rights than were permitted prior thereto). The rights to receive
indemnification and the advancement of Expenses under this Agreement are not exclusive of any other rights which Indemnitee may be entitled or subsequently entitled under any statute, the Company’s Certificate of Incorporation or Bylaws, by
vote of the shareholders or the Board, or otherwise. To the extent that a change in applicable law (whether by statute or judicial decision) or the Bylaws permits greater indemnification than is currently provided for an Indemnifiable Event,
Indemnitee shall be entitled to such greater indemnification under this Agreement. 
 
2.1 Partial Indemnification. If Indemnitee is entitled under any provision of this Agreement to indemnification by
the Company for a portion of Expenses, but not, however, for the total amount thereof, the Company shall nevertheless indemnify Indemnitee for the portion of such Expenses to which Indemnitee is entitled. 
 
2.2 Prohibited Indemnification.
Subject only to Section 2.3 below, no indemnification nor Expense Advance pursuant to this Agreement shall be paid by the Company: 
 
(a) In connection with any Proceeding initiated by Indemnitee against the Company or any director or officer of the
Company unless the Company has joined in, or the 

 

2 

Board has consented to, the initiation of such Proceeding, or the Proceeding is one to enforce indemnification rights under Section 5
below; 
 
(b) To the extent
Indemnitee settles or otherwise disposes of a Proceeding or causes the settlement or disposal of a Proceeding without the Company’s express prior written consent (which shall not be unreasonably withheld or delayed) unless Indemnitee receives
court approval for such settlement or other disposition where the Company had the opportunity to oppose Indemnitee’s request for such court approval; 
 
(c) With regard to any judicial award if the Company was not given a reasonable and timely opportunity, at its expense, to
participate in the defense of such action unless the Company’s participation in such Proceeding was barred by this Agreement or the court in such Proceeding; or 
 
(d) For any acts, omissions, transactions or circumstances for which indemnification is
prohibited by applicable state or federal law or until any preconditions imposed upon, or agreed to by, the Company by or with any court or governmental agency are satisfied. 
 
2.3 Insurance. The Company and its Affiliates shall maintain directors and officers
liability insurance with coverages substantially equivalent to those currently in place at all times during which Indemnitee serves as a director or officer of the Company or any of its Affiliates. 
 
3. Advance of Expenses to Indemnitee. Expenses incurred
by Indemnitee in any Proceeding for which indemnification may be sought under this Agreement shall be advanced by the Company to Indemnitee within ten (10) days after receipt by the Company of a statement or statements from Indemnitee requesting
such advance and reasonably evidencing the Expenses incurred by Indemnitee (an “Expense Advance”). If it is ultimately determined by a final judicial decision (from which there is no right of appeal) that Indemnitee is not entitled
to be indemnified by the Company, Indemnitee hereby agrees to repay any amounts advanced by the Company under this Section 3. Indemnitee agrees to execute any further agreements evidencing the foregoing obligation of repayment of Expenses as
the Company may reasonably request prior to receiving any such advance. 
 
4. Notification and Defense of Proceeding. 
 
4.1 Notice of Claim. Indemnitee shall give written notice to the Company promptly after Indemnitee has actual
knowledge of any Proceeding as to which indemnification may be sought under this Agreement. The failure of Indemnitee to give notice, as provided in this Section 4.1 shall not relieve the Company of its obligations to provide indemnification
under this Agreement; however, the amounts to which Indemnitee may be indemnified shall be reduced to the extent that the Company has been prejudiced by such failure. 
 
4.2 Defense. With respect to any Proceeding, the Company shall be entitled to
participate in the Proceeding at its own expense and, except as otherwise provided below, to the 

 

3 

extent the Company so desires, the Company may assume the defense thereof with counsel reasonably satisfactory to Indemnitee. However, the
Company shall not be entitled to assume the defense of any Proceeding, (i) brought by the Company, or (ii) as to which Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in the defense of
the Proceeding and Indemnitee does in fact assume and conduct the defense. 
 
(a) If the Company assumes the defense, Indemnitee shall furnish such information regarding Indemnitee or the Proceeding in question, as the Company may reasonably request and as may be required in
connection with the defense or settlement of such Proceeding and shall fully cooperate with the Company in every other respect. Except as provided in Section 4.3 below, if the Company assumes the defense of the Proceeding, the Company shall
take all necessary steps in good faith to defend, settle or otherwise dispose of the Proceeding. 
 
(b) After notice from the Company to Indemnitee of its election to assume the defense of any Proceeding, the Company shall
not be liable to Indemnitee under this Agreement or otherwise for any Expenses in excess of US$25,000 subsequently incurred by Indemnitee in connection with the defense of such Proceeding other than reasonable costs of investigation or as otherwise
provided in clauses (b) through (b) below. Indemnitee shall have the right to employ Indemnitee’s own counsel in such Proceeding, but all Expenses related thereto incurred after notice from the Company of its assumption of the defense
shall be at Indemnitee’s expense, unless: (i) the employment of counsel by Indemnitee has been authorized by the Company; (ii) Indemnitee has reasonably determined that there may be a conflict of interest between Indemnitee and the Company in
the defense of the Proceeding, but Indemnitee does not, in fact, assume and conduct the defense; or (iii) the Company does not, in fact, assume and conduct the defense of such Proceeding. 
 
(c) Any Expenses incurred by the Company in defense of the Proceeding under this Section
4.2 (except in a situation described in clause (i), (iii) or (iii) of Section 4.2(b)) shall be considered Expenses advanced by the Company to Indemnitee under Section 3 above. 
 
4.3 Limitation on the Company’s
Disposition of any Proceeding. The Company may consent to a settlement or other disposition of all or any part of any Proceeding which the Company is defending under Section 4.2 above without first obtaining the written consent of
Indemnitee; provided that such settlement or other disposition would not cause Indemnitee to materially lose any right to indemnification under this Agreement. 
 
5. Enforcement. The Company expressly confirms and agrees that it has entered into this Agreement and assumed the obligations
imposed on it hereby in order to induce Indemnitee to become involved with the Company in one of the capacities specified in Section 1.5(a), and acknowledges that Indemnitee is relying upon this Agreement in serving in such capacity. Indemnitee
shall have the right to enforce his indemnification rights under this Agreement by commencing litigation in any court having subject matter jurisdiction thereof and in which venue is proper. Likewise, the Company may seek judicial determination of
its obligations under this Agreement. Company and Indemnitee each hereby consent to service of process and to appear in any such proceeding. 
 

4 

 
5.1 Defenses; Burden of Proof. It shall be a defense to any action brought by Indemnitee or the Company concerning enforceability of this Agreement that it is not permissible under applicable law for the Company to indemnity
Indemnitee for the amount claimed. In connection with any such action or any determination as to whether Indemnitee is entitled to be indemnified hereunder, the burden of proof shall be on the Company. 
 
5.2 Presumptions. Neither the failure
of the Company (including its Board or shareholders) to have made a determination prior to the commencement of such action that indemnification is proper under the circumstances because Indemnitee has met the standard of conduct set forth in
applicable law, nor an actual determination by the Company (including its Board or shareholders) that Indemnitee has not met such applicable standard of conduct, shall be a defense to the action or create a presumption that Indemnitee has not met
the applicable standard of conduct. For purposes of this Agreement, the termination of any claim, action, suit or proceeding, by judgment, order. settlement (whether with or without court approval), conviction, or upon a plea of nolo contendere, or
its equivalent, shall not create a presumption that Indemnitee did not meet any particular standard of conduct or have any particular belief or that a court has determined that indemnification is not permitted by applicable law. 
 
5.3 Equitable Relief. The Company
agrees that the Company’s failure to make indemnification payments or Expense Advances to Indemnitee shall cause irreparable damage to Indemnitee, the exact amount of which is impossible to ascertain, and for this reason agrees that Indemnitee
shall be entitled to such injunctive or other equitable relief as shall be necessary to adequately provide for payment or reasonably anticipated payments. 
 
5.4 Indemnification for Expenses Incurred in Enforcing Rights. The Company shall indemnify Indemnitee against any
and all Expenses and, if requested by Indemnitee, shall (within ten (10) days after such request), advance such Expenses to Indemnitee, that are incurred by Indemnitee in connection with any claim or action asserted against or brought by Indemnitee
for indemnification of Expenses or payment of Expense Advances by the Company under this Agreement or any other agreement or under applicable law or the Company’s Certificate of Incorporation or Bylaws now or hereafter in effect relating to
indemnification for Indemnifiable Events. Any Expenses so paid shall be considered Expense Advances under Section 3 above. 
 
6. Insurance; Subrogation. The Company shall not be liable under this Agreement to make any payment in connection with any claim
made against Indemnitee to the extent Indemnitee has otherwise received payment (under any insurance policy, Bylaw, or otherwise) of the amounts otherwise indemnifiable hereunder. In the event of payment under this Agreement, the Company shall be
subrogated to the extent of such payment to all of the rights of recovery of Indemnitee, who shall execute all papers required and shall do everything, that may be necessary to secure such rights, including the execution of such documents necessary
to enable the Company effectively to bring suit to enforce such rights. 
 
7. No Impairment. The Company shall not, through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the
observance or performance of any of the terms to be observed or performed hereunder by the Company but shall at all times in good faith assist in the carrying out 

 

5 

of all the provisions of this Agreement and in the taking of all such action as may be necessary or appropriate in order to provide
Indemnitee with his full rights hereunder. 
 
8.
General Provisions. 
 
8.1 Amendment of this Agreement. No supplement, modification. or amendment of this Agreement shall be binding unless executed in writing by all the parties hereto. No waiver of any of the provisions of this Agreement shall
operate as a waiver of any other provisions hereof (whether or not similar), nor shall such waiver constitute a continuing waiver. Except as specifically provided herein, no failure to exercise or any delay in exercising any right or remedy
hereunder shall constitute a waiver thereof. 
 
8.2 Binding Effect. This Agreement shall be binding upon and inure to the benefit of and be enforceable by the parties hereto and their respective successors, assigns, spouses, heirs, and personal and legal representatives.
The indemnification provided under this Agreement shall continue as to Indemnitee for any action taken or not taken while serving in an indemnified capacity pertaining to an Indemnifiable Event even though Indemnitee may have ceased to serve in such
capacity at the time of any Proceeding. 
 
8.3 Entire Agreement. This Agreement constitutes the entire agreement between the parties hereto with respect to the subject matter hereof. 
 
8.4 Remedies Cumulative. The rights and remedies provided in this Agreement and by law
shall be cumulative and the exercise of any particular right or remedy shall not preclude the exercise of any other right or remedy in addition to, or as an alternative to, such right or remedy. 
 
8.5 Notices. Any notice required or
permitted by this Agreement shall be given in writing and shall be deemed effectively given upon personal delivery or, if mailed, upon deposit with the United States Post Office by certified mail, return receipt requested, postage prepaid, to the
address for the recipient set forth on the signature page hereto or to such other address as the recipient shall hereafter have noticed the sending party in the manner set forth above. 
 
8.6 Headings. Descriptive headings contained herein are for convenience of reference
only and shall not affect the meaning or interpretation of this Agreement. 
 
8.7 References. Any reference in this Agreement to the indemnity provisions of the Company’s Certificate of Incorporation or Bylaws, or to any applicable law shall refer to such provisions
as they shall be amended from time to time or to any successor provision, except that any change in the Company’s Certificate of Incorporation or Bylaws shall only apply to the extent that such amendment permits the Company to provide broader
indemnification rights to Indemnitee than currently provided. 
 
8.8 Express Third-Party Beneficiaries. For purposes of this Agreement, any Affiliate of any undersigned Person hereunder shall be an express third-party beneficiary as an 

 

6 

Indemnitee hereunder for all purposes relating to this Agreement, and there shall be no other express or implied beneficiaries hereunder.

 
8.9 Nouns and Pronouns;
Certain Terms. Whenever the context may require, any pronouns used herein shall include the corresponding masculine, feminine or neuter forms, and the singular form of names and pronouns shall include the plural and vice-versa. As used in this
Agreement, “herein”, “hereunder” and “hereof” shall refer to this Agreement as a whole, and “including” shall mean “including but not limited to”. 
 
8.10 Severability. Any provision of
this Agreement, which is unenforceable in any jurisdiction, shall be ineffective in such jurisdiction to the extent of such unenforceability without invalidating the remaining provisions of this Agreement, and any unenforceability in any in
jurisdiction shall not invalidate or render unenforceable such provision in any other jurisdiction. 
 
8.11 Counterparts. This Agreement may be executed in two or more counterparts, each of which shall be deemed an
original, but all of which together shall constitute one and the same instrument. 
 
8.12 Applicable Law. The rights and obligations under this Agreement shall be governed by, and construed in
accordance with, the laws of the State of Delaware applicable to contracts between Delaware residents made and to be performed entirely within such State. 
 
IN WITNESS WHEREOF, the Company and the undersigned Persons have caused their duly authorized representatives to enter into this Agreement
effective as of the date first written above. 
 

	 LIONBRIDGE TECHNOLOGIES, INC.

	
	 By:
	 	  

	 Title:
	 	 Chief Financial Officer

	
	 Date:  April 24, 2003

	
	 INDEMNITEE

	
	 Signature:
	 	  

	
	 Date:  April 24, 2003

	 	 	 

 

7

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]