Document:

EX-10.1

Exhibit 10.1

Form of Executive Retention Agreement Between the Company

and each of Timothy C. O’Brien, Eugene J. DiDonato and Roy Banks

1

Executive Retention Agreement

This Executive Retention Agreement (this “Agreement”) is made as of the 23rd day of May, 2005
(the “Effective Date”) by and between Lightbridge, Inc., a Delaware corporation (the “Company”),
and _     _     _     _ (the
“Executive”).

WHEREAS, the Company currently employs the Executive as its Chief Financial Officer;

WHEREAS, the Company recognizes that, as is the case with many publicly-held corporations, the
possibility of a change of control of the Company exists and that such possibility, and the
uncertainty and questions that it may raise among key personnel, may result in the departure or
distraction of key personnel to the detriment of the Company and its stockholders; and

WHEREAS, the board of directors of the Company has determined that appropriate steps should be
taken to reinforce and encourage the continued employment and dedication of the Executive without
distraction from the possibility of a change of control of the Company and related events and
circumstances.

NOW, THEREFORE, in consideration of the premises and the mutual promises hereinafter set
forth, the Company and the Executive agree as follows:

1. Definition of Terms. As used herein, the following terms shall have the following
respective meanings:

(a) “Cause” shall mean (a) the Executive’s commission of acts or omissions constituting
a felony, fraud or theft of Company property; (b) the Executive’s commission of acts or
omissions constituting a material breach of this Agreement, any other agreement between the
Executive and the Company or Company policies and procedures; or (c) the Executive’s willful
refusal or failure to perform the reasonable and customary duties assigned to him by the
Company, which, in the case of clauses (b) and (c) are not cured by the Executive within 10
days of receipt by the Executive of notice from the Company alleging the existence of Cause.

(b) “Change of Control” shall have the meaning set forth in Section 15(b) of the
Company’s 2004 Stock Incentive Plan as in effect on the date hereof.

(c) “Good Reason” shall mean (x) a significant reduction in the nature or scope of the
Employee’s duties, responsibilities, authority and powers exercised by the Employee
immediately prior to the Change in Control Event; (y) a reduction in the Executive’s annual
base salary in effect on the date of the Change of Control, except for across-the-board
salary reductions similarly affecting all management personnel of the Company (or its
successor); or (z) the relocation of the primary office where the Executive is to perform
his duties by more than 35 miles from its location prior to the Change of Control; provided,
however, that the Executive’s duties, responsibilities, authority and powers shall not be
deemed to have been significantly reduced solely because the Company (or its successor) is
no longer an independently operated public entity or because of a change in the Executive’s
title.

(d) “Release” shall mean a release by the Executive in favor of the Company, in the
form attached hereto as Exhibit A.

(e) “Severance Agreement” shall mean a severance agreement between the Company and the
Executive, drafted by and satisfactory to counsel for the Company.

(f) “Term” shall mean the period commencing as of the Effective Date and continuing in
effect through December 31, 2006; provided, however, that commencing on January 1, 2007 and
each January 1 thereafter, the Term shall be automatically extended for one additional year
unless, not later than 180 days prior to the scheduled expiration of the Term (or any
extension thereof), the Company shall have given the Executive written notice that the Term
will not be extended.

2. Term. This Agreement, and all rights and obligations of the parties hereunder,
shall take effect upon the Effective Date and shall expire upon (a) the expiration of the Term if a
Change in Control has not occurred during the Term or (b) the fulfillment by the Company of all of
its obligations hereunder if a Change in Control has occurred during the Term. It is understood
that the Executive is not being promised employment for a definite period of time and that either
the Executive or the Company may terminate the Executive’s employment at any time and for any
reason.

3. Termination Following Change of Control.

(a) In the event that, within two (2) years following a Change of Control, either (i)
the Company (or its successor) terminates the Executive’s employment without Cause or (ii)
the Executive terminates his employment for Good Reason, then (A) any unvested Company stock
options then held by the Executive shall immediately vest in full and shall remain
exercisable for 90 days following such termination, (B) subject to the Executive’s execution
of the Release and the Severance Agreement and to the provisions of Section 3(c) below, the
Company shall pay the Executive in one lump sum payment an amount equal to one times his
then-current Annual Base Salary plus one times the bonus earned by the Executive in respect
of the immediately preceding calendar year (or, if the Company’s Compensation Committee has
not yet made a determination regarding the amount of such bonus, one times 60% of the
Executive’s target bonus for such year), and (C) the Executive and his family members will
be eligible to continue his group health insurance coverage in accordance with the federal
COBRA law.

(b) Should the Executive or any of his family members elect COBRA continuation coverage
during the twelve-month period immediately following the Executive’s termination pursuant to
Section 3(a) hereof, the Company shall be responsible for paying the difference between the
cost of COBRA continuation coverage and the premium contribution amount applicable to the
Executive as of the date of such termination of employment, subject to any applicable
carrier and Company rate adjustments. After such twelve-month period ends, if Executive or
any of his family members elect to continue COBRA coverage, he will be responsible for all
of the premium payments. Information about Executive’s rights under COBRA and forms for
electing continuation coverage will be provided to Executive by a separate letter on or
about the date of such termination of employment.

(c) Notwithstanding anything herein to the contrary, (i) in the event that the
compensation payable to the Executive hereunder would constitute an excess parachute payment
as defined in Section 280G of the Internal Revenue Code, the Executive shall have the right
to reduce such compensation to an amount that would avoid the application of said Section
280G and (ii) to the extent that the Company in good faith determines that amounts that are
or may become payable to the Executive upon termination of employment hereunder are required
to be suspended or delayed for a period of six months in order to satisfy the requirements
of Internal Revenue Code Section 409A, then the Company shall so advise the Executive, and
any such payments shall be suspended and accrued for six months, whereupon said payments
shall be paid to the Executive in a lump sum.

(d) All payments to the Executive shall be made after deduction of any taxes which are
required to be withheld with respect thereto under applicable federal and state laws.

4. Other Agreements. This Agreement constitutes the entire agreement of the parties
with respect to the subject matter hereof. Nothing in this Agreement shall supersede or modify the
Executive’s obligations under any employee confidentiality and non-competition agreement that the
Executive has previously entered into with the Company.

5. Notices. All notices, requests, demands and other communications required by or
permitted under this Agreement shall be in writing and shall be sufficiently delivered if delivered
by hand or sent by registered or certified mail, postage prepaid, to the parties at their
respective addresses listed below:

(a) if to the Executive:

_     _     _     _

_     _     _     _

_     _     _     _

(b) if to the Company:

Lightbridge, Inc.

30 Corporate Drive

Burlington, MA 01803

Attn: Chief Executive Officer

Any party may change such party’s address by such notice to the other party.

6. Governing Law. This Agreement shall be governed by, and construed and enforced in
accordance with, the laws of The Commonwealth of Massachusetts, without regard to its principles of
conflicts of laws.

7. Binding Upon Successors. This Agreement shall be binding upon, and shall inure to
the benefit of, the parties hereto and their respective heirs, legal representatives, successors
and assigns.

8. Miscellaneous. Any dispute or controversy between the Executive and the Company
arising out of or relating to this Agreement shall be settled by arbitration in Boston,
Massachusetts, administered by the American Arbitration Association, with any such dispute or
controversy arising under this Agreement being so administered in accordance with its Commercial
Rules then in effect, and judgment on the award rendered by the arbitrator may be entered in any
court having jurisdiction thereof. The arbitrator shall have the authority to award any remedy or
relief that a court of competent jurisdiction could order or grant, including, without limitation,
the issuance of an injunction. However, either party may, without inconsistency with this
arbitration provision, apply to any court having jurisdiction over such dispute or controversy and
seek interim provisional, injunctive or other equitable relief until the arbitration award is
rendered or the controversy is otherwise resolved. In particular, nothing in this provision is
intended to or shall abrogate the right of the Company to enforce its rights under any employee
confidentiality and non-competition agreement. Notwithstanding any choice of law provision
included in this Agreement, the United States Federal Arbitration Act shall govern the
interpretation and enforcement of this arbitration provision. The Executive is not required to
seek other employment or to attempt in any way to reduce the compensation payable to the Executive
by the Company pursuant to Section 3. The amount of any payment or benefit provided for in this
Agreement shall not be reduced by any compensation earned by the Executive as the result of
employment by another employer or by retirement benefits, but the Company shall not be obligated to
provide any benefit that Executive is entitled to receive from another employer.

9. Waivers and Amendments.

(a) This Agreement may be amended, modified or supplemented, and any obligation
hereunder may be waived, only by a written instrument executed by the parties hereto. The
waiver by any party hereto of a breach of any provision of this Agreement shall not operate
as a waiver of any subsequent breach.

(b) No failure on the part of any party to exercise, and no delay in exercising, any
right or remedy hereunder shall operate as a waiver thereof, nor shall any single or partial
exercise of any such right or remedy by such party preclude any other or further exercise
thereof or the exercise of any other right or remedy. All rights and remedies hereunder are
cumulative and are in addition to all other rights and remedies provided by law, agreement
or otherwise.

2

IN WITNESS WHEREOF, the Company and the Executive have executed this Agreement as of the
Effective Date.

LIGHTBRIDGE, INC.

By: _     _     _     _

 Its:

_     _     _     _

Employee

3

Exhibit A

RELEASE

In exchange for the consideration from Lightbridge, Inc. (“Lightbridge”) described in Section
3 the Executive Retention Agreement between you and Lightbridge dated May      , 2005 (the “Retention
Agreement”), the sufficiency of which is hereby acknowledged, you, on your own behalf and on behalf
of your heirs, personal representatives, and assigns, hereby voluntarily and irrevocably release,
acquit and forever discharge Lightbridge, and all of Lightbridge’s affiliated and related entities
and their respective past, present and future officers, directors, agents, representatives,
attorneys, servants, employees, predecessors, successors, and assigns (hereinafter the
“Releasees”), from any and all claims, demands, liabilities, debts, judgments, damages, expenses
(including attorneys’ fees and costs), actions, causes of action or suits of any kind whatsoever
which you, your heirs, personal representatives and assigns, and each of them, may have had or may
now have, whether known or unknown, including, but not limited to, common law claims, statutory
claims, claims for wages, commissions, bonuses or earnings or benefits, claims for overtime, claims
or causes of action under the Civil Rights Act, the Employee Retirement Income Security Act, the
Fair Labor Standards Act, the Worker Adjustment and Retraining Notification Act (29 U.S.C. Section
2101 et seq.), the Americans with Disabilities Act, the Older Workers Benefit
Protection Act, the Family and Medical Leave Act, the Age Discrimination in Employment Act, the
Equal Pay Act, the Massachusetts Fair Employment Practices Act, M.G.L. c.151B, §l et seq., tort
law, contract law, law of wrongful discharge, discrimination, harassment, fraud, misrepresentation,
defamation, libel, emotional distress, breach of the implied covenant of good faith and fair
dealing, any other federal, state or municipal statute or ordinance, and claims or causes of action
under any other theory, which arise out of or are related in any way, directly or indirectly, to
your employment by Lightbridge or the termination of such employment.

You further agree that you will not bring any lawsuits, file any charges or complaints, or
make any other demands against Lightbridge, or further pursue any lawsuits, cases or complaints
already brought, based on your employment by Lightbridge. You further represent that you have no
current or pending actions, charges, lawsuits, or complaints against Lightbridge. You acknowledge
and understand that the consideration provided for in the Retention Agreement constitutes a full,
fair and complete payment for the release and waiver of all of your possible claims. You
acknowledge and understand that Lightbridge does not owe you anything for your employment in
addition to the consideration set forth in the Retention Agreement.

THIS MEANS YOU MAY NOT SUE LIGHTBRIDGE FOR ANY CURRENT OR PRIOR CLAIMS ARISING OUT OF YOUR
EMPLOYMENT WITH OR TERMINATION FROM LIGHTBRIDGE.

In signing this Release and Waiver, you acknowledge that you understand its provisions, that
your agreement is knowing and voluntary, that you have been afforded a full and reasonable
opportunity of at least 21 days to consider its terms and to consult with or seek advice from an
attorney or any other person of your choosing, and that you have been advised by the Company to
consult with an attorney prior to executing this Release and Waiver.

For a period of seven (7) days following your execution of this Release and Waiver, you may
revoke your agreement, and this Release and Waiver shall not become effective or enforceable until
this seven (7) day revocation period has expired. No payments or benefits under Section 3 of the
Retention Agreement will be made or provided until after this seven-day period has expired without
your revoking your agreement. You understand and acknowledge that the terms of your employment and
the Company’s usual severance policies or practices would have provided you less severance pay and
benefits than those provided to you under the Retention Agreement.

AGREED: _     _     _
DATED:_     _     _

4EX-10.2

Exhibit 10.2

SETTLEMENT AGREEMENT

THIS SETTLEMENT AGREEMENT (hereinafter “Agreement”), is made by and between (i) Lightbridge,
Inc. (“Lightbridge”), corporate successor to Coral Systems, Inc. (“Coral”), and (ii) Lucent
Technologies Inc. (“Lucent”).

RECITALS

This Agreement is entered into with reference to the following facts:

A. Coral and Lucent entered into a certain Software Acceptance and Distribution Agreement,
effective September 30, 1996, and amended June 5, 1997, pursuant to which Lucent was granted a
license to distribute and sub-license a software product commonly known as Fraudbuster (“Software
Agreement”).

B. In accordance with the terms of the Software Agreement, Lucent sub-licensed Fraudbuster to
Cox, Sprint PCS and others.

C. A dispute arose between Coral and Lucent as to the amount of license and other fees, if
any, due under the Software Agreement (“License Fees”).

D. Coral commenced an action in the Massachusetts Superior Court, Coral Systems, Inc. v.
Lucent Technologies Inc., Middlesex County, CA. 2001-01914 (“Litigation”).

E. The parties, and each of them, now wish to settle the Litigation and any and all claims
relating to or arising out of the Software Agreement, including without limitation all claims for
payment of License Fees.

AGREEMENT

NOW, THEREFORE, in consideration of the mutual promises contained in this Agreement, the
parties agree as follows:

1. Recitals. Recitals A through E are incorporated as part of this Agreement.

2. Payment. Lucent shall pay to Lightbridge the sum of One Million, Four Hundred
Thousand dollars ($1,400,000.00) (“Payment”). Such Payment shall be made within thirty days of the
execution of this Agreement by both parties and the delivery by Lightbridge to Lucent of a
completed IRS Form W -9 specifying the recipient of the Payment.

3. Stipulation of Dismissal. Upon receipt of the Payment, the parties shall file a
Stipulation of Dismissal, in the form attached hereto and marked “A,” dismissing the Litigation
with prejudice and without costs.

4. Release. Except with respect to the obligations created under the terms of this
Agreement and in consideration of the promises and covenants herein contained, Lightbridge shall
and hereby does relieve, release, exonerate and forever discharge Lucent, its affiliates, and its
and their present and former officers, directors, employees, indemnitees, indemnitors,
representatives, agents, attorneys, nominees, lenders, and each of them, from any and all claims,
debts, liabilities, obligations, damages, actions and causes of action, whether now known or
unknown, suspected or unsuspected, relating to or arising out of either (1) the Software Agreement
or (2) the software product commonly known as Fraudbuster.

5. Partial Invalidity. In the event that any provision of this Agreement should be
held to be void, voidable, or unenforceable, the remaining portions hereof shall remain in full
force and effect.

6. Governing Law. This Agreement shall be construed in accordance with the laws of
the Commonwealth of Massachusetts.

7. Entire Agreement. This Agreement constitutes a single integrated written contract
expressing the entire Agreement of the parties hereto relative to the subject matter hereof. No
covenants, agreements, representations, or warranties of any kind whatsoever have been made by any
party hereto, except as specifically set forth in this Agreement.

8. Counterparts of Agreement. The signature of any party to this Agreement, appearing
hereunder, if done by facsimile, shall be as binding as an original, and this Agreement may be
executed in counterparts.

IN WITNESS WHEREOF, the undersigned have executed this Settlement Agreement including its
mutual release of all claims, as of the dates hereinafter appearing.

	 	 	 	 	 
	DATED:

	 	May 12, 2005
	 	Coral Systems, Inc.
	 
	 	 	 	 
	
 
	 	 	 	BY:
	 
	 	 	 	 
	
 
	 	 	 	/s/ Robert E. Donahue
	
 
	 	 	 	 
	 
	 	 	 	 
	DATED:

	 	May 19, 2005
	 	Lucent Technologies Inc.
	 
	 	 	 	 
	
 
	 	 	 	BY:
	 
	 	 	 	 
	
 
	 	 	 	/s/ Arthur H. Saiewitz
	
 
	 	 	 	 
	 
	 	 	 	 

1

COMMONWEALTH OF MASSACHUSETTS

	 	 	 
	MIDDLESEX, SS

	 	SUPERIOR COURT DEPARTMENT

CIVIL ACTION NO. MICV2001-0l914-A

     

	 	 	 	 	 
	 
	 	 	)	 
	CORAL SYSTEMS, INC.,
	 	 	)	 
	 
	 	 	)	 
	Plaintiff,
	 	 	)	 
	 
	 	 	)	 

v. )

	 	 	 	 	 
	 
	 	 	)	 
	LUCENT TECHNOLOGIES INC.,
	 	 	)	 
	 
	 	 	)	 
	Defendant.
	 	 	)	 

     )

STIPULATION OF DISMISSAL

Pursuant to Rule 41(a)(I)(ii), the parties stipulate that this action shall be dismissed with
prejudice and without costs.

	 	 	 
	CORAL SYSTEMS, INC., by its corporate

successor LIGHTBRIDGE, INC.

	 	LUCENT TECHNOLOGIES, INC.

	 
	 	 
	By its attorneys,

	 	By its attorneys,

     

John G. Fabiano (BBO #157140) James W. Matthews (BBO #560560)

	 	 	 
	Amanda P. Masselam (BBO #641108)

Wilmer Cutler Pickering Hale and Dorr LLP

60 State Street

Boston, MA 02109

Telephone: (617) 526-6000

	 	Margaret H. Paget (BBO #567679)

Sherin and Lodgen LLP

101 Federal Street

Boston, MA 02110

Telephone: (617) 646-2000
	 
	 	 
	Dated: April      , 2005

	 	Dated: April      , 2005

“A”

2

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