Document:

ex10_7.htm

     

    
      Exhibit
        10.7

       

      LICENSE
        AGREEMENT

      

      THIS
        AGREEMENT, effective as of the 7th
        day of September 2007, by and between SC COMMUNICATIONS (hereinafter called
        LICENSOR), a California partnership composed of Steven Casciola and Annie
        Casciola, having a business address at P.O. Box 2385, Beverly Hills, California
        90210 and SALON CITY, INC., (hereinafter called LICENSEE), organized and
        existing under the laws of the State of Nevada having a business address
        at P.O.
        Box 2385, Beverly Hills, California 90210.

      

      WHEREAS,
        LICENSOR is the LICENSOR of
        the trademarks and service marks SALON CITY;

      

      WHEREAS,
        LICENSOR has spent many years
        in developing relationships within the beauty and fashion industries associated
        with the mark SALON CITY;

      

      WHEREAS,
        LICENSEE is desirous of using
        the SALON CITY mark and name in connection with its business;

      

      Now
        therefore, and in consideration of
        the foregoing and mutual promises hereinafter set forth, the parties agree
        as
        follows:

      

      1.           GRANT
        OF LICENSE

      

      LICENSOR
        grants the LICENSEE a
        non-exclusive, non-transferable license to use the mark SALON CITY as its
        corporate name and in connection with publications, award shows, beauty salons,
        beauty relating industrial promotions and beauty related products and LICENSEE
        accepts the license subject to the following terms and conditions.

      

      2.           CONSIDERATION

      

      As
        and for consideration of the
        aforementioned license, LICENSEE agrees to pay LICENSOR three percent (3%)
        of
        its annual revenues but not less than a minimum of $15,000 a year.

      

      3.           OWNERSHIP
        OF MARKS

      

      LICENSEE
        acknowledges the ownership of
        the mark in LICENSOR and LICENSEE agrees it will do nothing inconsistent
        with
        such ownership and that all use of the mark SALON CITY by LICENSEE shall
        inure
        to the benefit of and be on behalf of LICENSOR, and agrees to assist LICENSOR
        in
        recording this agreement with appropriate governmental
        authorities.  LICENSEE agrees that nothing in this license shall give
        LICENSEE any right, title or interest in the mark SALON CITY other than the
        right to use the mark in accordance with this license and LICENSEE agrees
        that
        it will not attack the title of LICENSOR to the mark or attack the validity
        of
        this license.

       

      
        
           

        

        
          1

          
            

          

        

        
           

        

      

      

      4.           QUALITY
        STANDARDS

      

      LICENSEE
        agrees that the nature and
        quality of all services rendered by LICENSEE in connection with the mark
        SALON
        CITY, all goods and services sold by LICENSEE under the marks and all related
        advertising, promotional and other related uses of the marks by LICENSEE
        shall
        conform to the standard set by and being under the control of
        LICENSOR.

      

      5.           QUALITY
        MAINTENANCE

      

      LICENSEE
        agrees to cooperate with
        LICENSOR in facilitating LICENSOR’s control of such nature and quality, to
        permit reasonable inspection of LICENSEE’s operation and to supply LICENSOR with
        specimens of all uses of the marks upon request.  LICENSEE shall
        comply with all applicable laws and regulations and obtain all appropriate
        governmental approvals pertaining to the sale, distribution and advertising
        of
        goods and services covered by this license.

      

      6.           FORM
        OF USE

      

                   
        LICENSEE agrees to use the marks only in the form and manner and with the
        appropriate legends as prescribed from time-to-time by LICENSOR and to not
        use
        any other trademark or service mark in combination with the mark without
        prior
        approval of LICENSOR.

      

      7.           WARRANTY
        AND INDEMNIFICATION

      

                   LICENSEE
        agrees to warrant and indemnify SC COMMUNICATIONS and its partners against
        any
        claims resulting or asserted in connection with the use of the SALON CITY
        mark
        licensed under this agreement.

      

      8.           INSURANCE

      

                   LICENSEE
        agrees to maintain a comprehensive general liability policy including an
        advertising injury rider in connection its business.  The policy shall
        name LICENSOR and its partners as additional insureds.  The policy
        shall have minimum limits of coverage of $1,000,000/$3,000,000 aggregate,
        with a
        minimum deductible of $25,000.

      

      9.           INFRINGEMENT
        PROCEEDINGS

      

       LICENSEE
        agrees to notify
        LICENSOR of any unauthorized use of the mark by others promptly as it comes
        to
        LICENSEE’s attention.  LICENSOR shall have the sole right and
        discretion to bring infringement or unfair competition proceedings involving
        the
        mark.

       

      
        
           

        

        
          2

          
            

          

        

        
           

        

      

       

               
        10.         
TERM

      

      This
        agreement shall continue in force
        and effect for two years from the date of this agreement or unless sooner
        terminated as provided for herein.  This agreement shall terminate
        annually, unless a notice of renewal by LICENSOR is delivered to LICENSEE
        during
        December prior to the next year term of this license.  LICENSEE may
        terminate this agreement at least thirty (30) days prior to the anniversary
        date
        of this agreement (January 5).

      

               
        11.          TERMINATION
        FOR CAUSE

      

      LICENSOR
        shall have the right to
        terminate this agreement upon 30 days written notice to LICENSEE in the event
        of
        any affirmative act of insolvency by LICENSEE, or upon the appointment of
        any
        receiver or trustee to take possession of the properties of LICENSEE or upon
        the
        winding up, sale, consolidation, merger or any sequestration by governmental
        authority of LICENSEE or upon breach of any of the provision hereof by
        LICENSEE.

      

      12.        EFFECT
        OF TERMINATION

      

      Upon
        termination of this agreement,
        LICENSEE agrees to immediately discontinue all use of the marks SALON
        CITY  and any term confusingly similar thereto and to delete the same
        from its corporate or business name, to cooperate with LICENSOR or its appointed
        agent to apply to the appropriate authorities to cancel recording of this
        agreement from all government records, to destroy all printed materials bearing
        any of the marks, and that all rights in the marks and goodwill connected
        therewith, shall remain the property of LICENSOR.

      

      13.           MANAGEMENT
        OF LICENSEE

      

                    
        This license is granted on the premise that SALON CITY, INC. is managed by
        Steven Casciola and Annie Casciola.  In the event of a change of
        management, this license shall only continue so long as LICENSOR notifies
        LICENSEE that its LICENSE shall remain in place.

      

      14.        INTERPRETATION
        OF AGREEMENT

      

      It
        is agreed that this agreement may be
        interpreted according to the laws of the State of California, United States
        of
        America.

      

      IN
        WITNESS WHEREOF, the parties have
        caused this agreement to be executed as of the day and year first above
        written.

      

      SC
        COMMUNICATIONS

      

      

      /s/
        Annie
        Casciola                                                                           

      ANNIE
        CASCIOLA, Partner
        (LICENSOR)

      

      SALON
        CITY, INC.
        (Licensee)

      

      

      By:
/s/
        Steven
        Casciola                                                                                 

      STEVEN
        CASCIOLA, President,

      SALON
        CITY, INC., a Nevada corporation

      

      

      
        
           

        

        
          3EX-10.1

September 10, 2007

Donald Muir

53 Shore Road

Winchester, MA 01890

Dear Don,

On behalf of Lionbridge Technologies, Inc. (“the Company”) I am pleased to offer you the position
of Chief Financial Officer, based at our Waltham headquarters, reporting to Rory Cowan, Chairman,
CEO and President. This letter is provided to you to summarize the terms and conditions of your
“at will” employment, and is not intended to be, and should not be construed as, an employment
contract. The details of our offer are outlined below:

	 	 	 
	•

	 	Base Salary. Your starting gross base salary will at the rate of $300,000

per annum. Payroll payment periods are currently bi-weekly and are

subject to change at Company discretion.
	•

	 	Stock Options. Subject and conditioned on the approval by the Company’s

Board of Directors, Lionbridge will grant you stock options to purchase

160,000 shares of Lionbridge common stock at the then-current fair market

value on the date of grant. These options will be granted under, and be

subject to the terms of the Company’s 2005 Stock Incentive Plan. Such

options vest at the rate of 25% on the first anniversary of grant date,

and an additional 12.5% will vest each six-month period thereafter,

provided you are employed by Lionbridge on such dates. The specific

terms and conditions of such Stock Option grant will be set forth in, and

governed by, the Company’s standard form of Stock Option Agreement.
	•

	 	Restricted Stock. Subject to approval by the Company’s Board of

Directors, Lionbridge will grant you 60,000 shares of restricted stock

under the Company’s 2005 Stock Incentive Plan. Restrictions on these

shares will lapse at the rate of 25% on each anniversary of the date of

grant, provided you are employed by Lionbridge on such dates. The

specific terms and conditions of such Restricted Stock grant shall be set

forth in, and governed by, the Company’s standard form of Restricted

Stock Agreement.
	•

	 	Incentive Compensation: You are eligible to participate in the Management

Incentive Plan (MIP) with a target bonus for 2007 of 60% of your base

salary, pro-rated from your date of hire. Payment of any incentive

compensation under the MIP is dependent on achievement of company

performance targets relating to revenue and profitability, and

achievement of personal objectives, all as established and determined by

the Board of Directors. The Board of Directors will determine

achievement of these targets in its sole discretion. Notwithstanding the

foregoing, with respect to 2007 performance, you will receive a minimum

incentive compensation payment under the MIP of 50% of your pro-rated

target bonus. The MIP is subject to amendment, modification or

discontinuance in the sole discretion of the Board of Directors.
	•

	 	Confidentiality Agreement. You will be required to sign the enclosed

Business Protection Agreement (“BPA”) that sets forth your obligations of

confidentiality among other topics.

	•	 	Executive Benefits. Effective on the first day of the month after you begin employment,
you and eligible members of your immediate family will be able to participate in our
comprehensive executive benefits program that currently includes a medical and dental plan,
life and disability insurance, 401(k) plan, long term care insurance and pre-paid
legal/identity theft coverage. The coverage and protections afforded by these programs will
be discussed with you at your orientation meeting.

	 	 	 
	•

	 	Vacation. Your vacation eligibility will be four weeks per full calendar

year. Vacation time does not accrue and is not carried over into

subsequent years.
	•

	 	Separation from Employment: Although you will be employed on an “at will

basis,” should Lionbridge terminate your employment for reasons other

than those identified below, you will be eligible for base salary

continuation as follows:

	 	 	 
	Duration of Employment with Lionbridge	 	Base Salary Continuation
	0-3 months

	 	none
	 

	 	 
	Greater than 3 months to 6 months

	 	3 months
	 

	 	 
	Greater than 6 months to 12 months

	 	6 months
	 

	 	 
	Greater than 12 months

	 	12 months
	 

	 	 

Exceptions to Severance: If Lionbridge terminates your employment for any of the
following reasons, you will not be entitled to receive any severance or salary continuation:
gross misconduct; theft, fraud or breach of fiduciary duties to the Company; performance issues
that are not cured within 30 days of written notice; dishonesty, embezzlement or
misappropriation of Company assets; violations of federal or state securities laws; breach of
your BPA or any other unauthorized disclosure by you of confidential information of the Company;
or conviction of a felony; or misrepresentation of your credentials.

If you choose to terminate your employment for any reason, Lionbridge has no obligation to
provide you any severance or other benefits, other than any base salary and vacation earned but
unpaid and accrued through the date of termination.

All severance payments will be conditioned on your execution of a release of all claims in a
form acceptable to Company counsel.

	•	 	Change of Control. You initially will be eligible to participate in the Lionbridge Change
of Control Plan (the “COC Plan”) and will receive the Company’s standard Change of Control
Agreement under the terms of the Plan, subject to the following adjustments based on the
duration of your employment with Lionbridge prior to any occurrence of a Change of Control:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Continuation of Medical,
	Duration of	 	Employment	 	Cash Severance	 	Disability and Life
	Employment	 	Protection Period	 	Benefits	 	insurance coverage
	0-3 months

	 	3 months
	 	25% of base salary

plus

target bonus;

pro-rata

portion of target

bonus for

year of termination
	 	

3 months continued coverage
	 

	 	 
	 	 
	 	 
	Greater than 3

months to 6 months

	 	6 months
	 	50% of base salary

plus

target bonus;

pro-rata

portion of target

bonus for

year of termination
	 	

6 months continued coverage
	 

	 	 
	 	 
	 	 
	Greater than 6

months to 12 months

	 	9 months
	 	75% of base salary

plus

target bonus;

pro-rata

portion of target

bonus

for year of

termination
	 	

9 months continued coverage
	 

	 	 
	 	 
	 	 
	Greater than 12

months

	 	18 months
	 	150% of base salary

plus

target bonus;

pro-rata

portion of target

bonus for

year of termination
	 	

18 months continued coverage
	 

	 	 
	 	 
	 	 

	 	•	 	Your start date is scheduled to be September 17, 2007.

	 	 	 
	This offer is subject to completion of the following:

	 	•	 	Formal reference checks

	 	•	 	Criminal/credit background checks

	 	•	 	Fair credit reporting act documents

	 	•	 	Verification of authorization to work (as described below)

Due to the Immigration Reform and Control Act of 1986, employers need to verify authorization to
work in the United States. Enclosed is US Department of Justice Form I-9 that must be completed
and returned to Human Resources within three business days after your start date. Please come
prepared on your first day with verification documents as shown on page 2 of that form, under
“Lists of Acceptable Documents.”

Don, we believe you have a good understanding of the position as it was described to you in your
interviews and are truly optimistic about the potential represented by this opportunity, as well as
the contribution we feel you will make to the long term growth of Lionbridge. We would like to
remind you, however, that employment with the Company is at will, meaning that either the Company
or you may terminate the employment relationship at any time, for any lawful reason, with or
without prior notice.

To accept our offer, please sign your name in the designated space on the last page of the BPA, and
return the original to me. The BPA will be countersigned and a copy of the fully executed document
will be returned to you for your records.

If you have any questions, please contact me. We look forward to working with you and to your
contribution to the continued success of our company.

Welcome to the team!

Sincerely,

/s/ Rory Cowan

Rory Cowan

Chairman and Chief Executive Officer

ATTACHMENTS:

	 	 	 
	•

•

	 	Business Protection Agreement

Change of Control Agreement

1

EMPLOYMENT AND BUSINESS PROTECTION AGREEMENT

We, Lionbridge Technologies, Inc. (“Lionbridge” or “we”) and you, Donald Muir, (“you”) have
agreed to enter into the following Employment and Business Protection Agreement (“Agreement”). In
consideration of your employment as an employee with LIONBRIDGE, the opportunities for advancement
that such employment may provide you, the compensation paid to you by LIONBRIDGE and other good and
valuable consideration, you and we agree as follows:

AGREEMENT

1. Terms of Engagement. We agree to employ you and you agree to be employed for the terms
and on the conditions stated in this Agreement. Your employment will begin September 17, 2007 in
the position of Chief Financial Officer. This is a full time exempt position. You agree to
perform at all times, faithfully, industriously, and to the best of your ability, all duties and
functions consistent with your position that you may be called upon to perform and to abide by any
general employment guidelines or policies adopted by us as they may be implemented and/or amended
from time to time. We may from time to time in our discretion modify your position and/or job
title. You understand and agree that your employment relationship with us is an at-will
relationship and that either you or we may terminate the relationship with or without notice or
cause, at any time during the course of your employment with us. You further understand that at
all times when you are performing services under this Agreement, your sole employer is LIONBRIDGE,
even if you work closely with or take direction from another entity.

2. Compensation. Compensation for your services to LIONBRIDGE shall be $300,000 on an
annualized basis, minus lawful withholdings, payable according to our normal payroll practices. We
may from time to time at our discretion modify your compensation.

3. Employee Benefits. You shall be eligible for employee benefits provided to employees at
your level, including, if provided, medical, dental, and disability insurance and paid sick leave
and PTO according to the terms provided by us to other employees of your level. Such benefits may
be amended or discontinued by us at any time.

4. Confidential Information.

a. Definition. You understand that during the course of your employment with
LIONBRIDGE, you will have access to Confidential Information, the ownership and confidential status
of which are highly important to LIONBRIDGE. You further acknowledge and agree that the term
“Confidential Information” shall mean any information of LIONBRIDGE (including any parent,
subsidiary, predecessor, successor, or otherwise affiliated corporation, partnership or other
business enterprise), whether or not in written form, which has not been previously disclosed to
the general public by LIONBRIDGE and which is either designated or treated by LIONBRIDGE as
confidential or proprietary, or which LIONBRIDGE is obligated to keep confidential because it has
been provided by people or entities other than LIONBRIDGE. Consistent with the definition set
forth above, the term “Confidential Information” shall include, but is not limited to,
LIONBRIDGE’s: trade secrets; product, research and development information; inventions; methods of
conducting or obtaining business, including but not limited to, methods of marketing, client
acquisition and development, billing for services, and compensation; corporate documents, plans or
manuals; finances; legal affairs; labor reports; identified locations for new operations; actual or
prospective (if known to you) clients, customers, or investors (collectively “Corporate Contacts”);
and other information marked, designated and/or treated by LIONBRIDGE as confidential.

b. Protections. You agree to hold all Confidential Information in a fiduciary
capacity and to exercise the highest degree of care in safeguarding Confidential Information
against loss, theft, or other inadvertent disclosure, and shall take all steps reasonably necessary
to maintain the confidentiality thereof. You shall not, directly or indirectly, either during the
term of your employment (except as required in the normal course of the performance of your
duties), or at any time after your employment is terminated for any reason: (i) disclose or
furnish to any person, corporation or other entity, or use in your own or in any other person’s
business, any Confidential Information; (ii) utilize Confidential Information for the gain,
advantage, or profit of anyone other than LIONBRIDGE; (iii) remove any Confidential Information
from LIONBRIDGE’s premises; or (iv) take advantage of any business opportunity which, because of
Confidential Information obtained in your employment capacity or as a result of your employment,
you know LIONBRIDGE may or is likely to consider.

c. Subpoenas. If you are served with any subpoena or other compulsory judicial or
administrative process calling for production of Confidential Information, you agree to immediately
notify LIONBRIDGE in order that LIONBRIDGE may take such action as it deems necessary to protect
its interests.

5. Non-Solicitation of Clients and Corporate Contacts.

a. Employees. Unless you receive the prior express written consent of LIONBRIDGE, you
shall not during the term of your employment and for twelve (12) months after termination of your
employment, induce or attempt to induce, directly or by assisting others, any person who is in the
employment of LIONBRIDGE to leave such employment for the purpose of accepting other employment
with or providing services to a person or entity that provides products or services that are
competitive with LIONBRIDGE.

b. Corporate Contacts. Unless you receive the prior express, written consent of
LIONBRIDGE, you shall not, during the term of your employment and for twelve (12) months after
termination of your employment, for purposes of providing products or services that are competitive
with LIONBRIDGE, solicit or attempt to solicit, directly or by assisting others, any work,
services, goods, or other business from any of Corporate Contacts (as defined in Paragraph 4) of
LIONBRIDGE.

6. Need for and Scope of LIONBRIDGE Protections.

a. Need for LIONBRIDGE Protection. You recognize and acknowledge that: (i)
LIONBRIDGE’s Confidential Information is and shall continue to be the exclusive and permanent
property of LIONBRIDGE, whether or not prepared in whole or in part by you, and whether or not
disclosed or entrusted to you in connection with your duties for LIONBRIDGE; (ii) Confidential
Information shall not be deemed disclosed to the public due to its being disclosed to you, to any
past, present, or potential employees of LIONBRIDGE or to any Corporate contact; (iii) LIONBRIDGE
has a vital and substantial interest in maintaining the confidentiality of its Confidential
Information, in maintaining a stable work force, in continuing its relationships with its Corporate
Contacts, in remaining in business, and in avoiding or minimizing any disruption of, damage or
impairment to, or interference with its business; and (iv) the Confidential Information and
Corporate Contacts that you will obtain as a result of your employment with LIONBRIDGE are special
and unique to LIONBRIDGE, and any breach by you of any of the terms and covenants of this Agreement
will result in irreparable and continuing harm to LIONBRIDGE for which there will be no adequate
remedy at law.

b. Scope of LIONBRIDGE Protection. You understand that LIONBRIDGE is a multi-national
corporation that does business all over the world. In your employment with LIONBRIDGE, you may
perform services in more than one city, county, state or country, and may have access to
Confidential Information that pertains not only to the specific area in which you live and/or work
but also to other areas in which LIONBRIDGE does business. You agree that LIONBRIDGE protections
stated in this Agreement are intended to protect LIONBRIDGE to the fullest extent of the law in all
of the geographical areas in which LIONBRIDGE does business or is actively contemplating doing
business. You further expressly acknowledge and agree that each of LIONBRIDGE protections stated
herein is intended to be as broad as may be permitted under the provisions of applicable law. You
further acknowledge and agree that if any of the protections herein are deemed unenforceable, the
unenforceability of any one or more LIONBRIDGE protections stated herein (or any portion thereof),
shall not affect the enforceability of any other protection (or portion thereof) stated herein.

7. Inventions/Ownership of Intellectual Property.

a. You agree that LIONBRIDGE shall be the sole and exclusive owner of all material, concepts,
inventions, improvements and Confidential Information whether patentable or not that you prepare,
develop, work on or make (whether alone or jointly with others) during your employment with
LIONBRIDGE and for a period of six (6) months thereafter, and of all related rights (including but
not limited to copyrights, trademarks and patents) and proceeds. To the extent applicable, all
such material, concepts, inventions, improvements and Confidential Information will constitute
“works made for hire” under applicable copyright laws with all copyrights in the work owned by
LIONBRIDGE. You shall execute all necessary assignments to vest ownership of such materials,
concepts, inventions, improvements and confidential information in LIONBRIDGE to obtain applicable
copyright, trademark, patent or similar protection in its name.

b. Notice. As provided by RCW 49.44.140 and any other applicable law, you understand
that the provisions of this paragraph do not apply to any inventions, materials, concepts or
improvements created by you for which no equipment, supplies, facilities or trade secrets
information of LIONBRIDGE was used and which was developed entirely on your own time, unless: (i)
the invention, material, concept or improvement relates directly to the business of LIONBRIDGE, or
to LIONBRIDGE’s actual or demonstrably anticipated research and development:; or (ii) the
invention, material, concept or improvement results from any work performed by you for LIONBRIDGE.

c. Attached to this Agreement as Exhibit A is a list and description of all patented and
unpatented inventions (including those for which patent applications are pending), which you have
made, conceived, or first reduced to practice prior to your employment with LIONBRIDGE, which you
desire to remove from the operation of this Agreement. You acknowledge and agree that except for
those inventions included on Exhibit A, all other inventions you make, conceive or reduce to
practice while employed by LIONBRIDGE, including without limitation, any modifications or
improvements to inventions listed on Exhibit A, are subject to the terms of this Agreement. If
Exhibit A is blank, then you represent you have made no such inventions at the time of signing this
Agreement.

8. LIONBRIDGE Property. All records, files, manuals, lists of clients, forms, materials,
supplies, computer programs or other software, computer hardware, tapes, disks or other magnetic
media, documents, notes, video or audio tapes or recordings, Confidential Information and other
materials furnished to you by LIONBRIDGE, used on its behalf, or generated or obtained during the
course of your employment with LIONBRIDGE remain the property of LIONBRIDGE. You understand that
you are only a holder of this property for the sole use and benefit of LIONBRIDGE and will take all
reasonable precautions to safely keep and preserve such property, except as consumed in the normal
business operation of LIONBRIDGE. Upon termination of your employment with LIONBRIDGE, and at any
other time upon LIONBRIDGE’s request, you agree to deliver as soon as reasonably possible to
LIONBRIDGE, or its authorized representative, all of LIONBRIDGE’s property, including all copies
thereof, then in your possession or control. You agree, except for LIONBRIDGE’s use, not to make
or cause to be made any copies, duplicates, facsimiles or other reproductions, or abstracts or
summaries, of any such materials or objects, or remove any such materials or objects from
LIONBRIDGE’s possession. Any personal property of yours acquired prior to your employment with
LIONBRIDGE or subsequently purchased at your personal expense for your personal use, remains your
property.

2

9. Disclosure of Prior Restrictions. You understand that LIONBRIDGE is not employing you
in order to obtain any information which is the property of any previous employers or any other
person or entity for whom you have performed services and represent that you are not currently
subject to any restriction which would prevent or limit you from carrying out your duties for
LIONBRIDGE. You agree that you will not take any action on behalf of LIONBRIDGE that would violate
a prior restriction or agreement to which you are subject, you will notify LIONBRIDGE immediately
if any such restriction or situation should arise and you will fulfill all obligations to present
or former employers and others during your service to LIONBRIDGE.

10. Resolution of Claims.

a. Both you and we mutually consent to the resolution by arbitration, pursuant to the then
current applicable Model Employment or Commercial Arbitration Rules of the American Arbitration
Association of all claims or controversies (“Claims”), arising out of or related to this Agreement
and your employment (or termination of employment), that we may have against you or that you may
have against us (including any parent, subsidiary, or otherwise affiliated corporation, partnership
or other business enterprise and all of its or their officers, directors, assigns, predecessors,
subsidiaries, affiliates, employers, employees representatives and agents); including, but not
limited to, Claims for wages, other compensation, wrongful termination, other wrongful employment
actions, breach of contract, tort, discrimination, benefits, or violation of any federal, state, or
governmental law, statute, regulation or ordinance; provided that Claims that you may have
for workers’ compensation or unemployment compensation benefits, or any administrative charge of
discrimination you may file, and Claims we may have for violations of Paragraph 4-9 of this
Agreement shall not be subject to arbitration pursuant to this Paragraph.

b. Either of us may bring an action in any court of competent jurisdiction to compel
arbitration under this Agreement and to enforce an arbitration award. Both we and you agree that
neither shall initiate or prosecute any lawsuit or administrative action in any way related to any
Claim covered by this Paragraph.

c. All costs of arbitration shall be borne equally by both parties, except where an
arbitrator determines that applicable law requires otherwise to maintain the enforceability of this
Paragraph. In such a case, LIONBRIDGE shall have the option of either paying the proportion of the
costs designated by the arbitrator or determining that the matter shall be excepted from the
provisions of this Paragraph that require arbitration of Claims.

11. Choice of Law. Due to the location of LIONBRIDGE’s corporate headquarters in the
State of Massachusetts, the important role played by such corporate office in determining the terms
and conditions of employees’ employment and the need for predictability in the employment
relationship, you agree that this Agreement and all actions or suits hereunder shall be governed by
and construed in accordance with the substantive and procedural laws of the Commonwealth of
Massachusetts and this Agreement shall be considered to be a sealed instrument under Massachusetts
law. Any claims arising under this Agreement shall be instituted and commenced and venue shall be
exclusively in the Commonwealth of Massachusetts, or the United States District Court for the
District of Massachusetts. You waive the right to change such venue (except for by mutual consent)
and hereby consent to the jurisdiction of such courts for such Claims. You waive the right to
change such venue (except for by mutual consent) and hereby consent to the jurisdiction of such
courts for such Claims.

12. Assignability. You acknowledge that your contractual obligations under this Agreement
are personal and neither the rights nor obligations under this Agreement may be assigned or
transferred by you to any other person. You understand and agree that this Agreement will bind and
benefit any successor, subsidiary, parent or affiliate (collectively “successors”) of LIONBRIDGE,
whether by merger, sale of assets, reorganization, reassignment or other form of business
acquisition, disposition, reorganization or reassignment.

13. Enforcement of Agreement. You understand that LIONBRIDGE’s failure to insist upon
strict compliance with any term or condition of this Agreement shall not constitute a waiver of
such term or condition, nor shall any waiver or relinquishment of any right or power under this
Agreement at any one or more times be deemed a waiver or relinquishment of that right or power at
any other time. If any one or more of the provisions contained in this Agreement shall be held to
be invalid, illegal, or unenforceable in any respect under applicable law, the validity, legality
and enforceability of all remaining provisions shall not in any way be affected or impaired and all
provisions shall be enforceable to the fullest extent permitted under applicable law.

14. Headings. The paragraph headings in this Agreement are for convenience of reference
only and shall not be given any effect in the construction or interpretation hereof.

15. Entire Agreement. You understand that this Agreement contains your entire Agreement
with LIONBRIDGE with regard to the terms and conditions of employment and shall terminate and
supersede any prior written or oral Agreements or understandings between LIONBRIDGE and you
regarding the same. No waiver, amendment or modification of this Agreement or any portion thereof,
including any future representations that are inconsistent with the terms set forth herein, will be
valid unless made in writing and duly executed by you and the President and CEO of LIONBRIDGE.

16. Attorney Fees. The prevailing party in any suit or action to enforce this Agreement,
or any term hereof, shall be entitled to recover all its costs and expenses incurred in connection
with such suit or action, including without limitation reasonable attorney’s fees, and other fees
and costs incurred at all levels and proceedings.

17. Survival. Not withstanding any term or provision in this Agreement to the contrary,
you understand that the rights and obligations pursuant to this Agreement shall survive the
termination of your employment with LIONBRIDGE and shall inure to the benefit of any successor of
LIONBRIDGE.

18. Understanding. By signing below, you acknowledge that you have carefully read all of
the provisions of this Agreement and agree that they are reasonable and necessary for the
protection of LIONBRIDGE’s business, which has agreed to enter into and/or continue an employment
relationship with you based on your agreeing to enter into this Agreement. Your further understand
that your employment relationship with LIONBRIDGE is at will, and nothing in this Agreement
suggests or signifies otherwise.

IN WITNESS WHEREOF, each of the parties has duly executed this Agreement with the full
understanding of its meaning and significance, voluntarily and free of duress or any other
encumbrance.

LIONBRIDGE TECHNOLOGIES, INC.

Donald Muir

By: Rory Cowan

(Printed Name of Employee) (Date)

Its: CEO

/s/ Donald Muir

(Signature of Employee)

EXHIBIT A

As referenced in Paragraph 7(c) of this Agreement, the following inventions are those which I
created prior to my employment with LIONBRIDGE which I desire to remove from the operation of this
Agreement: NONE

1.

2.

3

LIONBRIDGE TECHNOLOGIES, INC.

AGREEMENT

This is an AGREEMENT entered into between Lionbridge Technologies, Inc. (the

“Company”) and Donald Muir (“Executive”) effective as of the 17th

day of September, 2007

WHEREAS, the Board of the Directors of the Company (the “Board”) considers it essential to the best
interests of the Company and its stockholders to foster the Company’s ability to retain key
management personnel; and

WHEREAS, the Board recognizes that, as is generally the case with publicly-held corporations, the
possibility of a Change of Control (as defined herein) exists and that such possibility, and the
uncertainty and questions which it may raise among management, may result in the departure or
distraction of management personnel to the detriment of the Company and its stockholders; and

WHEREAS, the Board intends for this Agreement to provide protection for its executive officers in
general, for so long as such officers remain in the employment of the Company, against the
exigencies of a Change of Control, but not to otherwise provide assurance of or rights to continued
employment; and

WHEREAS, should the possibility of a Change of Control arise, in addition to the Executive’s
regular duties, the Executive may be called upon to assist in the assessment of such possible
Change of Control, to advise management and the Board as to whether such Change of Control would be
in the best interests of the Company and to take such other actions as the Board might determine to
be appropriate; and

WHEREAS, this Agreement is not intended to alter the rights of the Executive in the absence of a
Change of Control with respect to his or her employment by the Company or his or her compensation
and benefits in connection with such employment and, accordingly, this Agreement, although taking
effect as provided below, will be operative only upon a Change of Control.

NOW, THEREFORE, in consideration of the mutual covenants herein contained, the parties hereto agree
as follows:

	 	1.	 	Term; Employment Protection Period; Transition Rules.

	 	(a)	 	The term during which this Agreement (the “Agreement”) (the “Term of the
Agreement”) will begin on September 17, 2007 (the “Effective Date”) and will remain
in effect until terminated by a vote of the majority of the Board of Directors. If
a Change of Control (as defined in Exhibit A) occurs during the Term of the
Agreement, the Agreement will remain in effect until all obligations hereunder have
been discharged. Subject to the Transition Rules set forth in Section 1(b) below,
the period starting on the date of such a Change of Control and ending on the 18
month anniversary of the Change of Control will be a “Employment Protection Period”
under the terms of this Agreement.

	 	(b)	 	Anything to the contrary herein or in the Plan notwithstanding, the
following transition rules (the “Transition Rules”) shall apply relative to the
duration of your employment as Chief Financial Officer of the Company, and where
used in this Agreement, the term “Employment Protection Period” shall be modified
to take into effect these Transition Rules and the Severance Benefits set forth in
this Agreement shall be adjusted to take into effect these Transition Rules:

	 	 	 	 	 	 	 
	 	 	 	 	 	 	Continuation of Medical,
	Duration of	 	Employment	 	Cash Severance	 	Disability and Life
	Employment as CFO	 	Protection Period	 	Benefits	 	insurance coverage
	0-3 months

	 	3 months
	 	25% of base salary

plus

target bonus;

pro-rata

portion of target

bonus for

year of termination
	 	

3 months continued coverage
	 

	 	 
	 	 
	 	 
	Greater than 3

months

to 6 months

	 	6 months
	 	50% of base salary

plus

target bonus;

pro-rata

portion of target

bonus for

year of termination
	 	

6 months continued coverage
	 

	 	 
	 	 
	 	 
	Greater than 6

months

to 12 months

	 	9 months
	 	75% of base salary

plus

target bonus; pro-rata

portion of target

bonus

for year of

termination
	 	

9 months continued coverage
	 

	 	 
	 	 
	 	 
	Greater than 12

months

	 	18 months
	 	150% of base salary

plus

target bonus;

pro-rata

portion of target

bonus for

year of termination
	 	

18 months continued coverage
	 

	 	 
	 	 
	 	 

	 	2.	 	Definition of a Change of Control. “Change of Control” has the meaning set
forth in Schedule A hereto.

3. Termination of Employment; Severance Benefits.

3.1 Terminability of Employment. If Executive’s employment terminates during the
Employment Protection Period set forth in this Agreement following a Change of Control, the parties
will be required to discharge the applicable obligations described in this Section 3 and elsewhere
in this Agreement. If Executive’s employment terminates at any time other than during the
applicable Employment Protection Period following a Change of Control, Executive will have no
rights under the Agreement.

3.2 Termination upon Death or Disability. If Executive ceases to be an

employee of the Company as a result of death or disability, the Company

will have no further obligation or liability to Executive hereunder other

than for Base Salary earned and unpaid at the date of termination and

compensation for accrued vacation, and the Term of the Agreement will end

when those amounts are paid. However, nothing in this Agreement is

intended to interfere with the rights of Executive and his family or

beneficiaries under other applicable plans, policies or arrangements of the

Company. For purposes of this Section 3.2, the Company may terminate

Executive’s employment for “disability” if, because of physical or mental

incapacity, Executive is unable for a period of 90 consecutive days to

perform the material duties of his position and it is determined by a

qualified physician chosen by the Company (and, if during a Employment Protection Period, approved
by the Executive or his conservator) to be probable that such

incapacity will continue for an additional 60 consecutive days.

3.3 Termination by the Company for Cause or by Executive Without Good 

Reason. If the Company terminates Executive’s employment for Cause (as

defined in this Section 3.3) or if Executive terminates his employment

other than for Good Reason (as defined in this Section 3.3), the Company will

have no further obligation or liability to Executive hereunder other than

for Base Salary earned and unpaid at the date of termination and

compensation for accrued vacation, and the Term of the Agreement will end

when those amounts are paid.

“Cause” means (a) willful malfeasance or gross negligence in the

performance by Executive of his duties, resulting in harm to the Company,

(b) fraud or dishonesty by Executive with respect to the Company, or (c)

Executive’s conviction of a felony.

“Good Reason” means (i) a material reduction in the Executive’s total compensation, including
but not limited to (a) a reduction of the Executive’s base salary below the

level in effect immediately prior to the Change of Control without the

Executive’s prior written consent, (b) a reduction in the Executive’s target annual bonus
opportunity below the level in effect immediately prior to the Change of Control without the
Executive’s prior written consent, (c) discontinuation of participation in any compensation plan
that is maintained following the Change in Control in which the Executive participated immediately
prior to the Change of Control without the Executive’s prior written consent, or (d) exclusion from
participating in compensation programs that are customarily offered to senior executives, (ii)
relocation of the Executive’s principal place of work to a location more than 50 miles from its
location

immediately prior to the Change of Control or (iii) change in title or responsibilities below the
level in effect immediately prior to the Change of Control without the Executive’s prior written
consent.

3.4 By the Company Without Cause or By Executive for Good Reason.

(a) Entitlement to Severance Benefits. If, during the Term of the

Agreement, the Company terminates Executive’s employment without Cause, or

if Executive terminates his employment for Good Reason, the Company will,

subject to Section 4 below, provide severance benefits to Executive as set

forth below in Section 3.4(b), subject to the Transition Rules.

(b) Severance Benefits Following a Change of Control. If the

termination occurs during a Employment Protection Period, the Company will provide severance
benefits (subject to the Transition Rules) to Executive as follows:

(i) The Company will pay to Executive within 30 days of the

termination a lump-sum cash amount equal to 150% of sum of the Executive’s annual Base Salary in
effect immediately prior to the termination (or, if his Base Salary has been reduced within 60 days
of the termination or at any time after the Change of Control, his Base Salary in effect prior to
the reduction) plus the Executive’s then current annual target bonus.

(ii) The Company will also pay to Executive within 30 days of the

termination a pro-rata portion of his target bonus for the year of termination.

(iii) The Company will continue for a period of 18 months from

the date of termination to provide Executive with family medical, disability and life insurance
coverage at the level in effect immediately prior to the Change of Control. To the extent the
Company is unable to provide such benefits to an Executive under its existing plans and
arrangements, it will either arrange to provide the Executive with substantially similar benefits
upon comparable terms or pay the Executive cash amounts equal to the Executive’s cost of obtaining
such benefits.

(c) Option Acceleration. Notwithstanding any contrary provision of the plans or

arrangements under which they are granted, upon a Change of Control and irrespective of a
termination of employment, (A) 50% of the options to purchase Company stock held by Executive will
immediately become exercisable and the remaining 50% of the options to purchase Company stock held
by Executive will become exercisable on the six month anniversary of the date of the Change of
Control, and (B) all restricted stock held by Executive under restricted stock plans and
arrangements

4. Limitations on Severance Benefits.

4.1 Section 280G. The payment to each Executive under Section 3 of this Agreement shall
be made without regard to whether the deductibility of such payment (or any other “parachute
payments,” as that term is defined in Section 280G of the Internal Revenue Code of 1986, as amended
(the “Code”), to or for the benefit of such Executive) would be limited or precluded by Section
280G and without regard to whether such payment (or any other “parachute payments” as so defined)
would subject the Executive to the federal excise tax levied on certain “excess parachute payments”
under Section 4999 of the Code; provided that if the total of all “parachute payments” to
or for the benefit of any Executive, after reduction for all federal, state and local taxes
(including the tax described in Section 4999 of the Code, if applicable) with respect to such
payments (the “Total After-Tax Payments”), would be increased by the limitation or elimination of
any payment under this Plan or any “parachute payments” under other agreements or arrangements
between the Executive and the Company, then the amount payable under this Plan (or the “parachute
payment” under such other agreement or arrangement as the Company and the Executive shall mutually
determine) shall be reduced to the extent, and only to the extent, necessary to maximize the Total
After-Tax Payments. The determination as to whether and to what extent each payment under this
Plan (or the “parachute payment” under such other agreement or arrangement) is required to be
reduced in accordance with the preceding sentence shall be made at the Company’s expense by its
independent certified public accounting firm. In the event of any underpayment or overpayment
under this Plan (or such other agreement or arrangement) as determined by the accounting firm, the
amount of such underpayment or overpayment shall forthwith be paid to the Executive or refunded to
the Company, as the case may be, with interest at the applicable federal rate provided for in
Section 7872(f)(2) of the Code.

4.2 Section 409A. No payment that may be made pursuant to this Agreement that constitutes
“nonqualified deferred compensation” within the meaning of Section 409A of the Code may be
accelerated or deferred by the Company or the Executive. Notwithstanding anything herein (or in
any other agreement or arrangement between the Executive and the Company) to the contrary, to the
extent that any of the payments to be made hereunder constitute nonqualified deferred compensation
within the meaning of Section 409A and the Executive is a “specified employee”, then upon his or
her termination (as defined in Section 409A), any such payment shall be delayed until the date that
is six months and one day following the Executive’s termination date if, absent such delay, such
payment would be subject to penalty under Section 409A. The Company makes no representation or
warranty and shall have no liability to the Executive or any other person if any payments under
this Plan are determined to constitute nonqualified deferred compensation subject to Section 409A
but do not satisfy the conditions of that Section.

5. Withholding. All payments required to be made by the Company to

Executive under this Agreement will be subject to the withholding of such

amounts, if any, relating to tax and other payroll deductions as may be

required by law.

6. Fees and Expenses. In the event of Executive’s termination of

employment during a Employment Protection Period, the Company will pay any and all fees and
expenses (including legal fees and other costs of arbitration or

litigation) that may be incurred by Executive in enforcing his rights under

this Agreement.

7. No Duty to Mitigate. Benefits payable under this Agreement as a result

of termination of Executive’s employment will be considered severance pay

in consideration of his past service and his continued service from the

Effective Date, and his entitlement thereto will neither be governed by any

duty to mitigate his damages by seeking further employment nor offset by

any compensation that he may receive from other employment.

8. Confidentiality and Exclusivity. Executive agrees to maintain the

confidentiality of the Company’s (and its related entities and projects)

books, records, financial information, technical information, business

plans and/or strategies, and other confidential matters unless required to

make disclosure in the performance of his duties for the Company or as a

result of a legal proceeding or other legally mandated cause. The parties recognize

and agree that should the Company be required to pursue a claim against

Executive under this Section 8, the Company will likely be required to seek

injunctive relief as well as damages at law. Accordingly, Section 10,

Arbitration, will not apply to any action by the Company against Executive

for violation of this Section 8. Executive agrees for purposes of any

disputes arising under this Section 8 to submit to the exclusive

jurisdiction of the federal and state courts in the Commonwealth of

Massachusetts.

9. Arbitration. Except as otherwise provided in Section 8, any dispute

or controversy between the parties involving the construction or

application of any terms, covenants or conditions of this Agreement, or any

claim arising out of or relating to this Agreement, or any claim arising

out of or relating to Executive’s employment by the Company that is not

resolved within ten days by the parties will be settled by arbitration in

Boston, Massachusetts, in accordance with the rules of the American

Arbitration Association then in effect, and judgment upon the award

rendered by the arbitrator(s) may be entered in any court having

jurisdiction thereof. The Company and Executive agree that the

arbitrator(s) will have no authority to award punitive or exemplary damages

or so-called consequential or remote damages such as damages for emotional

distress. Any decision of the arbitrator(s) will be final and binding upon

the parties. Upon request the arbitrator(s) shall submit written findings

of fact and conclusions of law. The parties agree and understand that they

hereby waive their rights to a jury trial of any dispute or controversy

relating to the matters specified above in this Section 9..

10. Rights of Survivors. If Executive dies after becoming entitled to

benefits under Section 3 following termination of employment but before all

such benefits have been provided, (a) all unpaid cash amounts will be paid

to the beneficiary that has been designated by Executive in writing (the

“beneficiary”), or if none, to Executive’s estate, (b) all applicable

insurance coverage will be provided to Executive’s family as though

Executive had continued to live, and (c) any stock options that become

exercisable under Section 3.4 will be exercisable by the beneficiary, or if none, the estate.

11. Successors. This Agreement will inure to and be binding upon the

Company’s successors. The Company will require any successor to all or

substantially all of the business and/or assets of the Company by sale,

merger or consolidation (where the Company is not the surviving

corporation), lease or otherwise, by agreement in form and substance

satisfactory to Executive, to assume this Agreement expressly. This

Agreement is not otherwise assignable by the Company.

12. Subsidiaries. For purposes of this Agreement, employment by a

corporation or other entity that is controlled directly or indirectly by

the Company will be deemed to be employment by the Company. Thus,

references in the Agreement to “Company” include such corporations or other

entities where appropriate in the context.

13. Amendment or Modification; Waiver. This Agreement may not be amended unless agreed to
in writing by Executive and the Company. No waiver by either party of any breach of this Agreement
will be deemed a waiver of a subsequent breach.

14. Severability. In the event that any provision of this Agreement is

determined to be invalid or unenforceable, the remaining provisions shall

remain in full force and effect to the fullest extent permitted by law.

15. Controlling Law. This Agreement will be controlled and interpreted

pursuant to Massachusetts law.

16. Notices. Any notices required or permitted to be sent under this

Agreement are to be delivered by hand or mailed by registered or certified

mail, return receipt requested, and addressed as follows:

If to the Company:

Lionbridge Technologies, Inc.

1050 Winter Street, Suite 2300

Waltham, MA 02451

If to Executive:

Donald Muir

53 Shore Road

Winchester, MA 01890

Either party may change its address for receiving notices by giving notice

to the other party.

In witness whereof, the parties hereto have executed this Agreement as of

the date first set forth above.

     

[Executive]

LIONBRIDGE TECHNOLOGIES, INC.

By:     

4

Exhibit A

“Change of Control” means the occurrence of any of the following events:

(1) any Person becomes the owner of 25% or more of the Company’s Common

Stock and a majority of the members of the Board of Directors make a determination that a change of
control has occurred; or

(2) individuals who, as of the Effective Date, constitute the Board of

Directors of the Company (the “Continuing Directors”) cease for any reason to

constitute at least a majority of such Board; provided, however, that any

individual becoming a director after the Effective Date whose election or

nomination for election by the Company’s shareholders, was approved by a vote

of at least a majority of the Continuing Directors will be deemed to be a

Continuing Director, but excluding for this purpose any such individual whose

initial assumption of office occurs as a result of either an actual or

threatened election contest (as such terms are used in Rule 14a-11 of

Regulation 14A promulgated under the Securities and Exchange Act of 1934 (the

“Exchange Act”)) or other actual or threatened solicitation of proxies or

consents by or on behalf of a Person other than the Board; or

(3) approval by the shareholders of the Company of a reorganization, merger,

consolidation or other transaction that will result in the transfer of

ownership of more than 50% of the Company’s Common Stock; or

(4) liquidation or dissolution of the Company or sale of substantially all of

the Company’s assets.

In addition, for purposes of this definition the following terms have the

meanings set forth below:

“Common Stock” means the then outstanding Common Stock of the Company plus,

for purposes of determining the stock ownership of any Person, the number of

unissued shares of Common Stock which such Person has the right to acquire

(whether such right is exercisable immediately or only after the passage of

time) upon the exercise of conversion rights, exchange rights, warrants or

options or otherwise. Notwithstanding the foregoing, the term Common Stock

does not include shares of preferred stock or convertible debt or options or

warrants to acquire shares of Common Stock (including any shares of Common

Stock issued or issuable upon the conversion or exercise thereof) to the

extent that the Board expressly so determines in any future transaction or

transactions.

A Person will be deemed to be the “owner” of any Common Stock of which such

Person would be the “beneficial owner,” as such term is defined in Rule 13d-3

promulgated by the Securities and Exchange Commission under the Exchange Act.

“Person” has the meaning used in Section 13(d) of the Exchange Act, except

that “Person” does not include (i) the Executive, an Executive Related Party,

or any group of which the Executive or Executive Related Party is a member, or

(ii) the Company or a wholly owned subsidiary of the Company or an employee

benefit plan (or related trust) of the Company or of a wholly owned

subsidiary.

An “Executive Related Party” means any affiliate or associate of the Executive

other than the Company or a subsidiary of the Company. The terms “affiliate”

and “associate” have the meanings given in Rule 12b-2 under the Exchange Act;

the term “registrant” in the definition of “associate” means, in this case,

the Company.

5

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00129-of-00352.parquet"}]]