Document:

<PAGE>

                                                                    Exhibit 10.8

                              EMPLOYMENT AGREEMENT

THIS AGREEMENT, dated as of September 2,1997, between Applied Language
Technologies, a Delaware corporation ("ALTech" or the "Company"), and Stuart
Patterson (hereinafter referred to as "Employee").

WITNESSETH:

WHEREAS, the Board of Directors of ALTech believes that the services of Employee
would be of value to ALTech and is desirous of retaining his services; and

WHEREAS, Employee is willing to accept employment by ALTech upon the terms and
conditions hereinafter set forth;

NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained and of the mutual benefits herein provided, ALTech and Employee hereby
agree as follows:

1.    TERM OF EMPLOYMENT

Subject to termination as provided in Section 5 hereof, the Company shall employ
Employee, and Employee accepts employment by the Company, on the terms and
conditions herein contained, for a period commencing as of September 2, 1997
(the "Employment Date") and ending on the third anniversary thereof (the period
from the date hereof through such third anniversary being hereinafter referred
to as the "Employment Period").

2.    DUTIES

2.1. General Duties. During the Employment Period, Employee shall serve the
Company as President. In this capacity Employee shall be generally responsible
for marketing and sales, and shall, with the CEO, participate in the Company's
financial planning and decision making. Employee shall also participate with
senior management in setting strategic goals and operating plans for the
Company. The Company agrees that it shall not substantially and materially
lessen these general duties and responsibilities without the consent of
Employee.

2.2. Primary Activity. During the Employment Period, Employee shall devote
substantially all of his working time and energy to the interests and business
of the Company provided, however, that Employee shall be excused from performing
any services for the Company or its subsidiaries hereunder during periods of
temporary illness or incapacity and during reasonable vacations. During the
Employment Period, Employee shall, to the best of his skill and ability, use his
best efforts and endeavors to the extension and promotion of the business of the
Company and its subsidiaries, to the proper servicing of such business and to
the protection of the goodwill of such business, both as now enjoyed and
hereafter acquired.

3.    COMPENSATION

As full compensation to Employee for performance of his services hereunder, the
Company agrees to pay Employee and Employee agrees to accept the following
salary and other benefits during the Employment Period:

      (a)   Salary: Until January 1,1998, the Company shall pay the Employee a
            salary at an annual rate of $125,000. Thereafter the Company shall
            pay the Employee a salary at an annual rate of $150,000 (the "Base
            Salary").
<PAGE>

      (b)   Performance Bonus: Beginning January 1,1998, Employee shall be
            eligible to earn an annual performance bonus (the "Performance
            Bonus"), targeted at $50,000. The Performance Bonus shall be based
            upon Employee and the Company attaining certain goals which shall be
            decided upon by management at the beginning of each calendar year,
            acceptable to Employee, and approved by ALTech's Board of Directors.

      (c)   Health Insurance: The Company shall, during the Employment Period,
            pay 80% of the premium for the Employee and 50% for all dependents
            of the health insurance plan carried by the Company.

      (d)   Incentive Stock Options: The Company shall grant Employee 475,000
            qualified incentive stock options to purchase shares of the
            Company's common stock, 1/5 of which shall vest upon the first
            anniversary of the Employee's Employment date. The remainder shall
            vest in 48 equal monthly increments. The stock options shall have an
            exercise price of $.50. During the Employment Period, in the event
            of an acquisition or merger in which ALTech is not the surviving
            entity (a "Corporate Transaction"), Employee shall have the right to
            exercise 50% of all unvested options as of the effective date of the
            Corporate Transaction. The other terms and conditions of the options
            shall be in accordance with the Company's 1995 Stock Option Plan, as
            amended, and the related stock option grants and agreements.

      (e)   Other Benefits: Employee shall be entitled to one vacation day per
            each month employed and three personal days each calendar year.
            ALTech shall pay for term life insurance up to $1,000,000 in
            coverage and long-term disability insurance, or, at Employee's
            option, reimburse Employee's out-of-pocket costs for life and
            disability insurance up to an amount approximately equivalent to
            that expended by the Company to provide similar benefits to ALTech's
            other senior management. Employee shall also fully participate in
            any present or future insurance, pension, retirement, profit-sharing
            or other compensation or incentive plans adopted by the Company, for
            the general overall benefit of senior management of the Company, the
            extent and manner of participation to be determined by the Board of
            Directors of the Company.

4.    CERTAIN COVENANTS

In order to induce the Company to enter into this Agreement Employee hereby has
executed an Employee Confidentiality and Intellectual Property Assignment and
Agreement, attached as Exhibit A, which is made a part hereof, and an Employee
Non-Competition Agreement, attached as Exhibit B, which is made a part hereof.

5.    TERMINATION OF EMPLOYMENT

The Employment Period shall cease and terminate upon the earliest date on which
one of the events specified below occurs (the Date of Termination):

      (a)   The close of business on the last day of the Employment Period;

      (b)   The death of Employee;

      (c)   A material breach by Employee (if the Company elects to terminate
            this Agreement) or the Company (if the Employee elects to terminate
            this Agreement) of this Agreement;
<PAGE>

      (d)   Termination of Employee's employment by the Company for Good Cause,
            which shall be defined as any of the following:

            (i) Material misrepresentations knowingly made by Employee to the
            Company or the Company's partners, affiliates or customers;

            (ii) Chronic absenteeism not caused by disability;

            (iii) Mental or physical disability rendering employee substantially
            incapable of performing his duties for a continuous period greater
            than six months;

            (iv) Conviction for a criminal offense;

            (v) Drug or alcohol abuse;

            (vi) Conduct constituting sexual harrassment or bias based on race,
            creed or gender;

            (vii) Repeated and documented failure or refusal to perform the
            duties and responsibilities of Employee's post.

      (e)   Employee's voluntary serverance of employment with the Company for
            any reason.

6.    SEVERANCE PAYMENT

6.1. Termination by the Board of Directors. The Board of Directors may at any
time, in its sole discretion, terminate Employee for any cause, including, but
not limited to failure to perform adequately his responsibilities as President.
In the event of any such termination, provided such termination is not due to
reason specificied in Section 5 hereof, the Company shall, within 15 days
following the effective date of such termination, pay Employee a severance
payment of $75,000 (the "Severance Payment").

6.2. Appointment of Third Party as Chief Executive Officer. In the event that
the Board of Directors appoints a third party other than Employee as Chief
Executive Officer to replace William O'Farrell the Employee may, within one year
of such appointment, voluntarily terminate his employment with the Company and
the Company shall pay Employee the Severance Payment within 15 days following
the effective date of termination; provided, however, that the Company shall be
under no obligation to make the Severance Payment if such voluntarily
termination occurs within less than one year of the Employment Date.

6.3. Termination as Chief Executive Officer. The Company shall also pay the
Severance Payment in the event that Employee is appointed Chief Executive
Officer to replace William O'Farrell, but is terminated by the Board of
Directors in less than six months following such appointment (other than
termination for a reason specified in Section 5 hereof. The Severance Payment
shall be paid within 15 days of such termination.

6.4. Expiration of this Agreement. The Company shall also pay the Severance
Payment in the event this Agreement expires at the close of the Employment
Period, as defined in Section One hereof, and there exists no other employment
agreement between Employee and the Company.

7.    ASSIGNMENT

This Agreement shall not be assigned by the Employee. The Company shall have the
right to assign its rights hereunder pursuant to any merger, acquisition,
consolidation or other event in which the Company is not the surviving entity,
provided that the surviving entity is bound by the terms hereof.
<PAGE>

8.    MISCELLANEOUS

8.1. Entire Agreement. This Agreement supersedes any prior agreements and
embodies the entire understanding between the parties hereto respecting the
subject matter hereof and no change, alteration or modification hereof may be
made except in writing signed by both parties hereto.

8.2. Headings. The headings in this Agreement are for convenience of reference
only and shall not be considered as part of this Agreement or to limit or
otherwise affect the meaning hereof.

8.3. Severability. If any provision of this Agreement shall be held invalid,
illegal or unenforceable in whole or in part, neither the validity of the
remaining part of such provision nor the validity of any other provision of this
Agreement shall in any way be affected thereby. Additionally, any and all
covenants not to compete shall be construed as separate and independent
covenants so that, in case any one or more of the covenants or any part of a
covenant shall for any reason be held to be invalid, illegal or unenforceable in
any respect in any jurisdiction, such invalidity, illegality or unenforceability
shall be deemed not to affect any other jurisdiction or any other covenant or
part of a covenant, but any and all such covenants not to compete shall be
reformed and construed in such jurisdiction as if such covenant or part of a
covenant held to be invalid or illegal or unenforceable had never been contained
herein and such covenant or part shall be reformed so that, it would be valid,
legal and enforceable in such jurisdiction to the maximum extent possible.

8.4. Governing Law. This Agreement shall in all respects be governed by and
construed in accordance with the laws of the Commonwealth of Massachusetts
without regard to principles of conflicts of laws.

8.5. Additional Assurances. Each party shall execute, acknowledge and deliver
such additional documents, writing or assurances as the other may periodically
require so as to give full force and effect to the provisions of this Agreement.

IN WITNESS WHEREOF, The parties have hereto executed this Agreement as of the
date first above written.

Employee                        Applied Language Technologies

/s/ Stuart R. Patterson         /s/ W. J. O'Farrell
--------------------------      ------------------------------

By: STUART R. PATTERSON         By: W. J. O'FARRELL
--------------------------      ------------------------------

                                Title: CEO
                                ------------------------------
<PAGE>

                       APPLIED LANGUAGE TECHNOLOGIES, INC.
                                695 Atlantic Ave.
                           Boston, Massachusetts 02111

EMPLOYEE CONFIDENTIALITY AND INTELLECTUAL PROPERTY ASSIGNMENT AGREEMENT

Name: Stuart R. Patterson     Employment Date: 9/2/97     (Type or Print)
      -------------------                      ------

      In consideration of my employment, continued employment and the
salary/wages paid to me by Applied Language Technologies, Inc. or any of its
parent, subsidiary or affiliate companies (all hereafter collectively called
"ALTech") and other good and valuable consideration, I understand and agree to
the following provisions for the protection of the property rights of ALTech and
for the protection of the rights of others who have entrusted ALTech with
confidential proprietary information:

      1. Disclosure to ALTech. I agree to disclose fully and promptly to ALTech
all Proprietary Information which is developed, conceived, reduced to practice
or learned by me solely or jointly with others, at any time during the term of
my employment I agree to make and maintain written records of the aforesaid
Proprietary Information and to submit promptly the same, and to make
supplemental oral disclosure, to ALTech. The term "Proprietary Information"
means all intellectual and physical work product having actual or potential
value to ALTech including inventions, whether or not patentable and whether or
not tested or reduced to practice, discoveries, ideas, conceptions, processes,
developments, designs, business plans, trade secrets, mask works, and tangible
expressions, whether or not copyrightable, computer software, systems, programs
or procedures, which are developed, conceived, reduced to practice or learned by
employees or consultants of ALTech solely or jointly with others, which
Proprietary Information (a) relates to the current business activities of
ALTech, (b) results from, or is suggested by, work which is performed for ALTech
or which is funded in whole or in part by ALTech, or (c) results from any use of
premises, equipment or property (tangible or intangible) owned, leased, licensed
or contracted for by ALTech.

      2. Ownership and Assignment of Rights to ALTech. I agree to assign and
hereby do assign to ALTech as its exclusive property the entire right, title and
interest in and to all Proprietary Information embraced by Paragraph 1 above,
including without limitation, all patents, patent applications and copyrights. I
further agree to execute all papers, and otherwise to provide all requested
assistance, at the expense of ALTech, during and subsequent to my employment, to
enable ALTech or its nominees to obtain such patents, copyrights and other legal
protection as it may desire in any country. All copyrightable work ("Work")
created by me in connection with my employment is intended to be a "work made
for hire" as that term is defined in Section 101 of the Copyright Act of 1976,
as amended (the "Copyright Act"), and shall be the property of ALTech and ALTech
shall be the sole author of such work within the meaning of the Copyright Act.
All such Works, as well as copies of such Works in whatever medium fixed or
embodied, shall be owned exclusively by ALTech and I expressly disclaim any
interest in them. If the copyright to any such Works shall not be the property
of ALTech by operation of law, I hereby assign and will assign to ALTech,
without further consideration, all right, title and interest in such Work and
will assist ALTech, at its expense, to secure, maintain and defend for the
benefit of ALTech all copyrights, registrations, extensions and renewals on any
and all such Work, including translations thereof in any and all countries, such
Work to be and remain the property of ALTech whether copyrighted or not.
<PAGE>

      I hereby waive all moral rights and all inalienable rights that I may have
in any Work, including without limitation, any right to identification of
authorship, any right of approval on modifications or limitation on subsequent
modifications. To the extent that this waiver is deemed unenforceable under
applicable law, I acknowledge and agree that I will not exercise any such
inalienable right without the specific prior written consent of ALTech.

      In the event that ALTech is unable, after reasonable effort, to secure my
signature on letters, patent, copyright or other documents relating to any
Proprietary Information, whether because of my physical or mental incapacity or
for any other reason whatsoever, I hereby irrevocably designate and appoint
ALTech and its duly authorized officers and agents as my agent and
attorney-in-fact, to act for and in my behalf and stead to execute and file any
such application(s) and to take all other lawfully permitted acts to further the
prosecution and issuance of letters patent, copyright or other documents with
the same legal force and effect as if executed by me.

      The assignment provisions of this Agreement shall not apply to Proprietary
Information which is exempt from assignment under the applicable laws of the
state of employment. I agree, however, that ALTech shall have a non-exclusive,
fully paid license to use for all purposes any Proprietary Information within
the scope of the actual or anticipated business of ALTech but not assigned to
ALTech under this Agreement unless such a license is prohibited by statute or by
a court of last resort and final jurisdiction.

      I understand and agree that ALTech shall determine, in its sole and
absolute discretion, whether an application for or registration of any patent,
copyright or other intellectual property right shall be filed on any development
assigned to ALTech under this Agreement, and whether such an application shall
be prosecuted or abandoned prior to issuance or registration.

      3. Confidentiality. I agree to preserve in confidence, and not to use, to
publish, or to otherwise disclose, either during or subsequent to my employment,
without the written permission of ALTech, any Confidential Information. The term
"Confidential Information" means any Proprietary Information or any knowledge,
information or materials about the products, services, know-how, research and
development, customers, or business plans of ALTech or any confidential
information about financial matters, marketing, pricing, compensation or any
other confidential information of ALTech, its customers, or others from whom
ALTech has received information under obligations of confidence.

      The conditions of Paragraph 3 hereof shall not apply to information which:

      (a)   was in the public domain or generally available to the public prior
            to my receipt thereof, or which subsequently becomes part of the
            public domain or generally available to the public except by my
            wrongful act; or

      (b)   was in my possession prior to receipt from ALTech; or

      (c)   is received by me from a third party, unless I know or have reason
            to know of an obligation of secrecy of the third party to ALTech
            with respect to such information; or

      (d)   is required by law to be disclosed.

      4. Confidential Information of Others. I agree not to disclose to ALTech,
or to use in my work at ALTech (a) any confidential information belonging to
others, or (b) any prior inventions made by me which ALTech is not entitled to
learn of or use.

      5. Return of Materials. Upon the request of ALTech at any time and in the
event of the termination of my employment at ALTech, whether or not such
termination is voluntary, I will deliver promptly to my superior at ALTech all
documents which relate to the business activities of
<PAGE>

ALTech, and all materials and things which belong to ALTech or have been given
to me by ALTech or others during the course of my employment.

      6. Prior Agreements. I represent that I have attached hereto a copy of any
agreement (such as a prior employment agreement) which affects my ability to
comply with the terms of this agreement. If there is no such agreement, I have
written my initials here: /s/ SRP

      7. Enforcement. I agree that ALTech would not be fairly compensated by
money damages for any breach of this Agreement by me and therefore in the event
of a breach or threatened breach of this Agreement ALTech shall be entitled to
specific performance, an injunction and other equitable relief in addition to
money damages and other legal remedies. I hereby waive any requirement that
ALTech post a bond or surety in connection with its attempts to enforce this
Agreement.

      8. Miscellaneous. This Agreement shall be binding on my executors,
administrators, heirs, legal representatives or assigns, and may not be modified
except in writing with the approval of an officer of ALTech. If any provision of
this Agreement is determined to be illegal or unenforceable, because of the
duration thereof or the area or scope covered, I hereby request any court making
such determination to reduce the duration, area and/or scope so that in its
reduced form such covenant shall be enforceable and I agree that in such event
all remaining provisions shall remain in full force and effect. This Agreement
shall be governed by and construed in accordance with the internal laws of The
Commonwealth of Massachusetts. This document sets forth the entire agreement
between ALTech and me with respect to the matters set forth herein.

WITNESS                                 EMPLOYEE

/s/ W.J. Farrell                        /s/ Stuart R. Patterson
------------------------                ---------------------------

Date: 12/1/97                           Date: 12/1/97
      ------------------                      ---------------------

                                        Social Security No. ###-##-####
                                                            -----------
<PAGE>

                       APPLIED LANGUAGE TECHNOLOGIES, INC.
                                695 Atlantic Ave.
                           Boston, Massachusetts 02111

                       EMPLOYEE NON-COMPETITION AGREEMENT

Name: Stuart R. Patterson     Employment Date: 9/2/97
      -------------------                      ------
      (Type or Print)

      In consideration of my employment, continued employment and the
salary/wages paid to me by Applied Language Technologies, Inc. or any of its
parent, subsidiary or affiliate companies (all hereafter collectively called
"ALTech") and other good and valuable consideration, I understand and agree to
the following provisions:

      1. Non-Competition. To the extent I was personally involved in or
substantively knowledgeable of confidential ALTech developments, I will not
during my employment and for a period of twelve (12) months after termination of
my employment accept a consulting engagement or employment with a Competitor (as
hereinafter defined), client or customer of ALTech without written permission
from ALTech, which permission will not be unreasonably withheld in those
instances where such engagement or employment does not involve risk of use or
disclosure of Confidential Information. Competitor shall mean any company
engaged in using speech recognition technology to create systems for
telephone-based sales of goods or services. Notwithstanding the foregoing, I
agree that the companies listed in Appendix 1 are competitors of ALTech for whom
I shall not work as provided above. The listing of these specific companies is
not intended to be a complete listing of all current or future competitors of
ALTech.

      2. Definition of Confidential Information. The term "Confidential
Information" means any Proprietary Information or any knowledge, information or
materials about the products, services, know-how, research and development,
customers, or business plans of ALTech or any confidential information about
financial matters, marketing, pricing, compensation or any other confidential
information of ALTech, its customers, or others from whom ALTech has received
information under obligations of confidence.

      Confidential Information shall not include information which:

      (a)   was in the public domain or generally available to the public prior
            to my receipt thereof, or which subsequently becomes part of the
            public domain or generally available to the public except by my
            wrongful act; or

      (b)   was in my possession prior to receipt from ALTech; or

      (c)   is received by me from a third party, unless I know or have reason
            to know of an obligation of secrecy of the third party to ALTech
            with respect to such information; or

      (d)   is required by law to be disclosed.

      3. Definition of Proprietary Information. The term "Proprietary
Information" means all intellectual and physical work product having actual or
potential value to ALTech including inventions, whether or not patentable and
whether or not tested or reduced to practice, discoveries, ideas, conceptions,
processes, developments, designs, business plans, trade secrets, mask works and
tangible expressions, whether or not copyrightable, computer software, systems,
programs or procedures, which are developed, conceived, reduced to practice or
learned by employees or consultants of ALTech solely or jointly with others,
which Proprietary
<PAGE>

Information (a) relates to the actual or anticipated business activities of
ALTech, (b) results from, or is suggested by, work which is performed for ALTech
or which is funded in whole or in part by ALTech, or (c) results from any use of
premises, equipment or property (tangible or intangible) owned, leased, licensed
or contracted for by ALTech.

      4. Enforcement I agree that ALTech would not be fairly compensated by
money damages for any breach of this Agreement by me and therefore in the event
of a breach or threatened breach of this Agreement ALTech shall be entitled to
specific performance, an injunction and other equitable relief in addition to
money damages and other legal remedies. I hereby waive any requirement that
ALTech post a bond or surety in connection with its attempts to enforce this
Agreement.

      5. Miscellaneous. This Agreement shall be binding on my executors,
administrators, heirs, legal representatives or assigns, and may not be modified
except in writing with the approval of an officer of ALTech. If any provision of
this Agreement is determined to be illegal or unenforceable, because of the
duration thereof or the area or scope covered, I hereby request any court making
such determination to reduce the duration, area and/or scope so that in its
reduced form such covenant shall be enforceable and I agree that in such event
all remaining provisions shall remain in full force and effect. This Agreement
shall be governed by and construed in accordance with the internal laws of The
Commonwealth of Massachusetts. This document sets forth the entire agreement
between ALTech and me with respect to the matters set forth herein.

WITNESS                                 EMPLOYEE

/s/ W.J. Farrell                        /s/ Stuart R. Patterson
------------------------                ---------------------------

Date: 12-1-97                           Date: 12/1/97
      ------------------                      ---------------------

                                        Social Security No. ###-##-####
                                                            -----------
<PAGE>

                                   Appendix I
               Competitors of Applied Language Technologies, Inc.

The following entities are deemed to be competitors of Applied Language
Technologies, Inc. as of the date of this Agreement:

Voice Control Systems
BBN- Bolt Beraneck and Newman
Nuance
Pure Speech
Lucent
Northern Telecom

The listing of these specific companies is not intended to be a complete listing
of all current or future competitors of ALTech.<PAGE>

                                                                    EXHIBIT 10.9

                        SPEECHWORKS INTERNATIONAL, INC.

                       Incentive Stock Option Agreement

Terms and Conditions

     WHEREAS, the Board of Directors (the "Board") has authorized the grant of
                                           -----
stock options upon certain terms and conditions set forth herein; and

     WHEREAS, the Board has authorized the grant of this stock option pursuant
and subject to the terms of the Plan, a copy of which is available from the
Company and is hereby incorporated herein;

     NOW, THEREFORE, in consideration of the premises and the mutual covenants
and agreements herein contained, the Company and the Optionee agree as set
forth above and as follows:

     1. Grant. Pursuant and subject to the Plan, the Company does hereby grant
        -----
to the Optionee a stock option (the "Option") to purchase from the Company the
                                     ------
number of shares of its Common Stock set forth in Section 3 upon the terms and
conditions set forth in the Plan and upon the additional terms and conditions
contained herein. This Option is intended to qualify for special federal income
tax treatment as an "incentive stock option" pursuant to Section 422A of the
Internal Revenue Code of 1986, as amended (the "Code").
                                                ----

     2. Option Price. This Option may be exercised at the option price per share
        ------------
of Stock set forth in Section 4 hereof, subject to adjustment as provided herein
and in the Plan.

     3. Term and Exercisability of Option. This Option shall expire on the date
        ---------------------------------
determined pursuant to Section 5 hereof and shall be exercisable prior to that
date in accordance with and subject to the conditions set forth in the Plan and
those conditions, if any, set forth in Section 6 hereof. In addition, in the
event that before this Option has been exercised in full the Optionee ceases to
be an employee of the Company for any reason other than death or a termination
for dishonesty or other "cause" as provided in Section 16 of the Plan, the
Optionee may exercise this Option to the extent that he might have exercised it
on the date of termination of his employment, during the period ending on the
earlier of (i) the date on which the Option expires in accordance with Section
5 of this Agreement or (ii) 30 days after the date of termination of the
Optionee's employment by the Company. In the event of the death of the Optionee
before this Option has been exercised in full, the personal representative of
the Optionee may exercise this Option to the extent that the Optionee might have
exercised it on the date of his death, during the period ending on the earlier
of (i) the date on which the Option expires in accordance with Section 5 of this
Agreement or (ii) the first anniversary of the date of the Optionee's death.

     4. Method of Exercise. To the extent that the right to purchase shares of
        ------------------
Stock has accrued hereunder, this Option may be exercised from time to time by
written notice to the Company substantially in the form attached hereto as
Exhibit A, stating the number of shares with respect to which this Option is
being exercised, and accompanied by payment in full of the option price for the
number of shares to be delivered, by means of payment acceptable to the Company
in accordance with Section 10 of the Plan. As soon as practicable after its
receipt of such notice, the Company shall, without transfer or issue tax to the
Optionee (or other person entitled to exercise this Option), deliver to the
Optionee (or other person entitled to exercise this Option), at the principal
executive offices of the Company or such other place as shall be mutually
acceptable, a certificate or certificates for such shares out of theretofore
authorized but unissued shares or reacquired shares of its Stock as the Company
may elect; provided, however, that the time of such delivery may be postponed
by the Company for such period as may be required for it with reasonable
diligence to comply with any applicable requirements of law. Payment of the
option price may be made in cash or cash equivalents, or, in accordance with the
terms and conditions Section 10 of the Plan, in whole or in part in shares of
Common Stock of the Company; provided however, that the

<PAGE>

SpeechWorks International, Inc.
Incentive Stock Option Agreement
Page 2

Board reserves the right upon receipt of any written notice of exercise from the
Optionee to require payment in cash with respect to the shares contemplated in
such notice. If the Optionee (or other person entitled to exercise this Option)
fails to pay for and accept delivery of all of the shares specified in such
notice upon tender of delivery thereof, his right to exercise this Option with
respect to such shares not paid for may be terminated by the Company.

     5.  Non-assignability of Option Rights.  This Option shall not be
         ----------------------------------
assignable or transferable by the Optionee except by will or by the laws of
descent and distribution. During the life of the Optionee, this Option shall be
exercisable only by him.

     6.  Compliance with Securities Act.  The Company shall not be obligated to
         ------------------------------
sell or issue any shares of Stock or other securities pursuant to the exercise
of this Option unless the shares of Stock or other securities with respect to
which this Option is being exercised are at that time effectively registered or
exempt from registration under the Securities Act of 1933, as amended, and
applicable state securities laws. In the event shares or other securities shall
be issued which shall not be so registered, the Optionee hereby represents,
warrants and agrees that he will receive such shares or other securities for
investment and not with a view to their resale or distribution, and will execute
an appropriate investment letter satisfactory to the Company and its counsel.

     7.  Legends.  The Optionee hereby acknowledges that the stock certificate
         -------
or certificates evidencing shares of Stock or other securities issued pursuant
to any exercise of this Option will bear a legend setting forth the restrictions
on their transferability described in Section 12 hereof and, if applicable to
this Option, in Section 19 of the Plan.

     8.  Rights as Stockholder.  The Optionee shall have no rights as a
         ---------------------
stockholder with respect to any shares of Stock or other securities covered by
this Option until the date of issuance of a certificate to him for such shares
or other securities. No adjustment shall be made for dividends or other rights
for which the record date is prior to the date such stock certificate is issued.

     9.  Notice to Company of Disqualifying Disposition.  The Optionee hereby
         ----------------------------------------------
agrees that he will promptly give notice to the Company in the event that he
sells, transfers, exchanges or otherwise disposes of any shares of Stock or
other securities obtained pursuant to any exercise of this Option before the day
after the later of (a) the second anniversary of the date of grant set forth at
the conclusion of this Agreement and (b) the first anniversary of the date on
which the shares of Stock or other securities were transferred to him pursuant
to his exercise of this Option.

     10.  Termination or Amendment of Plan.  The Board may in its sole and
          --------------------------------
absolute discretion at any time terminate or from time to time modify and amend
the Plan, but no such termination or amendment will affect rights and
obligations under this Option.

     11.  Effect Upon Employment.  Nothing in this Option or the Plan shall be
          ----------------------
construed to impose any obligation upon the Company to employ the Optionee or to
retain the Optionee in its employ, or continue its involvement with, the
Optionee.

     12.  Time for Acceptance.  Unless the Optionee shall evidence his
          -------------------
acceptance of this Option by execution of this Agreement within (7) days after
its delivery to him, the Option and this Agreement shall be null and void.

     13.  Stockholders Agreement.  Optionee hereby agrees, upon the request of
         -----------------------
the Company, to become a party to that certain Second Amended and Restated
Stockholders Agreement, dated May 8, 1998, among the Company and certain
stockholders of the Company party thereto, as the same may be amended,
supplemented, or modified, from time to time, or any similar agreement which is
entered into by the Company and its stockholders, by executing
<PAGE>
SpeechWorks International, Inc.
Incentive Stock Option Agreement
Page 3

               an instrument of adherence substantially in the form of Exhibit B
                                                                       ---------
               hereto or such other documents as the Company may reasonably
               request.

          14. Accelerated Vesting
              -------------------

     Notwithstanding the foregoing vesting schedule, immediately prior to the
     consummation of an Applicable Event (as defined in Section 17 of the Plan)
     the Option shall become exercisable with respect to 50% of the unvested
     shares subject to the Option at such time, if any; and if the Board of
     Directors in its sole and absolute discretion deems it appropriate for the
     provisions of clause (c) of the fourth paragraph of Section 17 to apply in
     connection with such Applicable Event, this paragraph shall be deemed to
     apply to the Option as of the effective date of such Applicable Event in
     accordance with clause (c) of the fourth paragraph of Section 17 and the
     Optionee shall be deemed vested as set forth in this paragraph.

          15. General Provisions.
              ------------------

          a. Amendment Waivers. This Agreement, including the Plan, contains the
             -----------------
full and complete understanding and agreement of the parties hereto as to the
subject matter hereof and may not be modified or amended, nor may any provision
hereof be waived, except by a further written agreement duly signed by each of
the parties. The waiver by either of the parties hereto of any provision hereof
in any instance shall not operate as a waiver of any other provision hereof or
in any other instance.

          b. Binding Effect. This Agreement shall inure to the benefit of and be
             --------------
binding upon the parties hereto and their respective heirs, executors,
administrators, representatives, successors and assigns.

          c. Construction. This Agreement is to be construed in accordance with
             ------------
the terms of the Plan. In case of any conflict between the Plan and this
Agreement, the Plan shall control. The titles of the sections of this Agreement
and of the Plan are included for the convenience only and shall not be construed
as modifying or affecting their provisions. The masculine gender shall include
both sexes; the singular shall include the plural and the plural the singular
unless the context otherwise requires.

          d. Notices. Any notice in connection with this Agreement shall be
             -------
deemed to have been properly delivered if it is in writing and is delivered
in hand or sent by registered mail to the party addressed as follows, unless
another address has been substituted by notice so given:

       To the Optionee:   To his address as listed on the books of the Company.

       To the Company:    SpeechWorks International, Inc.
                          695 Atlantic Avenue
                          Boston, MA 02111

                          Copy to:

                          Mintz Levin Cohn Ferris Glovsky and Popeo PC
                          One Financial Center
                          Boston, MA 02111
                          Attention: John R. Pomerance, Esq.

<PAGE>

SpeechWorks International, Inc.
Incentive Stock Option Agreement
Page 4

                                   EXHIBIT A
                                      to
                            Incentive Stock Option

                 [FORM FOR EXERCISE OF INCENTIVE STOCK OPTION]

Dated:                 ,
      -----------------  -----

SpeechWorks International, Inc.
695 Atlantic Avenue
Boston, MA 02111

     Re: Exercise of Incentive Stock Options

Ladies and Gentlemen:

Please take notice that the undersigned hereby elects to exercise the stock
option granted to                      on                   by and to the extent
                  --------------------    -----------------
of purchasing              shares of the Common Stock of SpeechWorks
              ------------
International, Inc. for the option price of $            per share, subject to
                                             -----------
the terms and conditions of the Incentive Stock Option Agreement between
               and SpeechWorks International, Inc. dated as of                 .
--------------                                                 ----------------

The undersigned encloses herewith payment, in cash or in such other property as
is permitted under the Plan, of the purchase price for said shares. If the
undersigned is making payment of any part of the purchase price by delivery of
shares of Common Stock of Applied Language Technologies, Inc., he hereby
confirms that he has investigated and considered the possible income tax
consequences to him of making such payments in that form.

The undersigned hereby specifically confirms to SpeechWorks International, Inc.
that he is acquiring said shares for investment and not with a view to their
sale or distribution, and that said shares shall be held subject to all of the
terms and conditions of said Incentive Stock Option Agreement.

Very truly yours,

-----------------------------

<PAGE>

SpeechWorks International, Inc.
Incentive Stock Option Agreement
Page 5

                                   EXHIBIT B
                                   ---------

                            INSTRUMENT OF ADHERENCE
                                ("Stockholder")

     The undersigned, a holder of shares of Common Stock, $.001 par value, of
SpeechWorks International, Inc., a Delaware corporation (the "Company"), hereby
joins in and agrees to be bound by all the terms and provisions of that certain
Second Amended and Restated Stockholders Agreement dated as of the 8th day of
May, 1998, as amended, and shall for all purposes be deemed to be a Stockholder
thereunder, subject to the obligations of a Stockholder set forth therein, and
hereby agrees that all shares of Common Stock now or hereafter held by the
undersigned shall be subject to the restrictions on transfer, rights of purchase
and co-sale and other provision of said Agreement.

     EXECUTED on this ____ day of _____________, ___.

                                  ________________________________________

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