Document:

EX-10.3

LIONBRIDGE TECHNOLOGIES, INC.

 

Stock Option Agreement 

 

Lionbridge Technologies, Inc. a Delaware corporation (the “Company”), hereby grants as of
September 19 , 2006 to Rory J. Cowan (the “Optionee”) an option to purchase a maximum of
100,000 shares (the “Option Shares”) of its Common Stock, $.01 par value per share (“Common
Stock”), at the price equal to the fair market value of the Company’s stock on the date of grant,
on the following terms and conditions:

 

1. Grant Under 2005 Stock Incentive Plan. This option is granted pursuant to and is
governed by the Company’s 2005 Stock Incentive Plan (the “Plan”) and, unless the context otherwise
requires, terms used herein shall have the same meaning as in the Plan. Determinations made in
connection with this option pursuant to the Plan shall be governed by the Plan as it exists on this
date. Reference is also made to the Employment Agreement between the Company and the Optionee of
even date hereof, as it may be from time to time amended (the “Employment Agreement”).

 

2. Grant as Non-Qualified Option; Other Options. This option shall be treated for
United States income tax purposes as a Non-Qualified Option (rather than an incentive stock
option). This option is in addition to any other options heretofore or hereafter granted to the
Optionee by the Company or any Related Corporation (as defined in the Plan), but a duplicate
original of this instrument shall not effect the grant of another option.

 

3. Vesting of Option if Business Relationship Continues. If the Optionee has continued
to serve the Company or any Related Corporation in the capacity of Chief Executive Officer (such
service is described herein as maintaining or being involved in a “Business Relationship” with the
Company), then on the following dates, this option will become exercisable (“vest”) as to all of
the original number of Option Shares on the last day of any 30 consecutive calendar day period
beginning after the date hereof (a “Measurement Period”) during which the Company’s average closing
stock price in a thirty day period was greater than or equal to $10.00.

 

Notwithstanding the foregoing, in accordance with and subject to the provisions of the Plan, the
Committee may, in its discretion, accelerate the date that any installment of this Option becomes
exercisable. The foregoing rights are cumulative and (subject to Sections 4 or 5 hereof if the
Business Relationship between the Optionee and the Company or any Related Corporation terminates)
may be exercised up to and including the date that is five years from the date this option is
granted.

 

	 	4.	 	Vesting of Option upon Termination of Business Relationship.

	 	(a)	 	Termination Other than for Cause. If the Optionee’s Business
Relationship with the Company and all Related Corporations is terminated, other
than by reason of (i) termination for Cause as defined in Section 5.3 of the
Employment Agreement, (ii) termination by Executive without Good Reason as
defined in Section 5.5 or (iii) Change of Control (as defined in the
Employment Agreement), this option shall be exercisable (“vest”) as to the
following number of Option Shares for a period of three years following the
Executive’s last day of employment (“Termination Date”) as follows and in each
case, reduced by the number of Option Shares that had already vested based on
achievement of the performance criteria set forth in Section 3:

	 	(a)	 	100% of all Option Shares that vest under Section 3 on or before one
year after Termination Date.

	 	(b)	 	2/3 of all Option Shares that vest under Section 3 on or before two
years after the Termination Date and after one year after Termination Date; and

	 	(c)	 	1/3 of all Option Shares that vest under Section 3 on or before three
years after the Termination Date and after two years after the Termination Date.

	 	(b)	 	Termination for Cause or by Optionee without Good Reason. If the
Optionee’s Business Relationship with the Company is terminated for Cause (as
defined in Section 5.3 of the Employment Agreement or by the Optionee without Good
Reason (as defined in Section 5.5 of the Employment Agreement), this option shall
terminate upon the Optionee’s receipt of written notice of such termination if
terminated by the Company for Cause or on the Termination Date, if terminated by
the Executive without Good Reason and shall thereafter not be exercisable to
any extent whatsoever.

	 	(c)	 	Change of Control. Upon a Change of Control, this option shall
be exercisable (“vest”) as to all of the Option Shares. If the Optionee’s Business
Relationship with the Company is terminated by reason of a Change of Control,
within the six month period preceding the Change of Control , this Option shall be
exercisable (“vest”) as to all of the Option Shares.

	 	(d)	 	Expiration following Termination. Notwithstanding the
foregoing and except as provided in Section 5 below, the option shall expire (and
may no longer be exercised) after the passage of three years plus sixty (60) days
from Termination, but in no event later than the scheduled expiration date. In such
a case, the Optionee’s only rights hereunder shall be those which are properly
exercised before the termination of this option.

 

5. Death; Disability. If the Optionee is a natural person who dies while involved in a
Business Relationship with the Company, this option may be exercised, to the extent otherwise
exercisable on the date of his or her death, by the Optionee’s estate, personal representative or
beneficiary to whom this option has been assigned pursuant to Section 10, at any time within
180 days after the date of death, but not later than the scheduled expiration date. If the Optionee
is a natural person whose Business Relationship with the Company is terminated by reason of his or
her disability (as defined in the Plan), this option may be exercised, to the extent otherwise
exercisable on the date the Business Relationship was terminated, at any time within 180 days after
such termination, but not later than the scheduled expiration date. At the expiration of such
180-day period or the scheduled expiration date, whichever is the earlier, this option shall
terminate and the only rights hereunder shall be those as to which the option was properly
exercised before such termination, subject to the provisions of Section 4(a) above.

        .
 

6. Partial Exercise. This option may be exercised in part at any time and from time to
time within the above limits, except that this option may not be exercised for a fraction of a
share unless such exercise is with respect to the final installment of stock subject to this option
and cash in lieu of a fractional share must be paid, in accordance with Paragraph 10 of the Plan,
to permit the Optionee to exercise completely such final installment. Any fractional share with
respect to which an installment of this option cannot be exercised because of the limitation
contained in the preceding sentence shall remain subject to this option and shall be available for
later purchase by the Optionee in accordance with the terms hereof.

7. Payment of Price.

 

(a) Form of Payment. The option price shall be paid in the following manner:

 

(i) in cash or by check;

 

(ii) subject to Section 7(b) below, by delivery of shares of the Company’s Common Stock
having a Fair Market Value (as defined in the Plan) equal as of the date of exercise to
the option price;

 

(iii) by delivery of an assignment satisfactory in form and substance to the Company of
a sufficient amount of the proceeds from the sale of the shares underlying this option
(the “Option Shares”) and an instruction to the broker or selling agent to pay that
amount to the Company; or

 

(iv) by any combination of the foregoing.

 

(b) Limitations on Payment by Delivery of Common Stock. If the Optionee delivers
Common Stock held by the Optionee (“Old Stock”) to the Company in full or partial payment of
the option price, and the Old Stock so delivered is subject to restrictions or limitations
imposed by agreement between the Optionee and the Company, an equivalent number of Option
Shares shall be subject to all restrictions and limitations applicable to the Old Stock to the
extent that the Optionee paid for the Option Shares by delivery of Old Stock, in addition to
any restrictions or limitations imposed by this Agreement. Notwithstanding the foregoing, the
Optionee may not pay any part of the exercise price hereof by transferring Common Stock to the
Company unless such Common Stock has been owned by the Optionee free of any substantial risk
of forfeiture for at least six months.

 
 

8. No Obligation to Exercise Option. The grant and acceptance of this option imposes
no obligation on the Optionee to exercise it.

 

9. No Obligation to Continue Business Relationship. Neither the Plan, this Agreement,
nor the grant of this option imposes any obligation on the Company or any Related Corporation to
continue to maintain a Business Relationship with the Optionee.

 

10. No Rights as Stockholder until Exercise. The Optionee shall have no rights as a
stockholder with respect to the Option Shares until such time as the Optionee has exercised this
option by delivering a notice of exercise and has paid in full the purchase price for the number of
shares for which this option is to be so exercised in accordance with Section 9. Except as is
expressly provided in the Plan with respect to certain changes in the capitalization of the
Company, no adjustment shall be made for dividends or similar rights for which the record date is
prior to such date of exercise.

 

11. Capital Changes and Business Successions. It is the purpose of this option to
encourage the Optionee to work for the best interests of the Company or any Related Corporation and
its stockholders. Since, for example, that might require the issuance of a stock dividend or a
merger with another corporation, the purpose of this option would not be served if such a stock
dividend, merger or similar occurrence would cause the Optionee’s rights hereunder to be diluted or
terminated and thus be contrary to the Optionee’s interest. The Plan contains extensive provisions
designed to preserve options at full value in a number of contingencies. Therefore, provisions in
the Plan for adjustment with respect to stock subject to options and the related provisions with
respect to successors to the business of the Company are hereby made applicable hereunder and are
incorporated herein by reference. In particular, without affecting the generality of the foregoing,
it is understood that for the purposes of Sections 3 through 5 hereof, both inclusive, employment
by the Company includes employment by a Related Corporation.

 

12. Withholding Taxes. If the Company or any Related Corporation in its discretion
determines that it is obligated to withhold any tax in connection with the exercise of this option,
or in connection with the transfer of, or the lapse of restrictions on, any Common Stock or other
property acquired pursuant to this option, the Optionee hereby agrees that the Company or any
Related Corporation may withhold from the Optionee’s wages or other remuneration the appropriate
amount of tax. At the discretion of the Company or Related Corporation, the amount required to be
withheld may be withheld in cash from such wages or other remuneration or in kind from the Common
Stock or other property otherwise deliverable to the Optionee on exercise of this option. The
Optionee further agrees that, if the Company or Related Corporation does not withhold an amount
from the Optionee’s wages or other remuneration sufficient to satisfy the withholding obligation of
the Company or Related Corporation, the Optionee will make reimbursement on demand, in cash, for
the amount underwithheld.

 

13. Provision of Documentation to Employee. By signing this Agreement the Optionee
acknowledges receipt of a copy of this Agreement and a copy of the Plan.

 

14. Miscellaneous.

 

(a) Governing Law. This Agreement shall be governed by and interpreted in
accordance with the internal laws of the Commonwealth of Massachusetts.

 

(b) Notices. All notices hereunder shall be in writing and shall be deemed given
when sent by certified or registered mail, postage prepaid, return receipt requested, to the
address set forth below. The addresses for such notices may be changed from time to time by
written notice given in the manner provided for herein.

 

(c) Entire Agreement; Modification. This Agreement constitutes the entire
agreement between the parties relative to the subject matter hereof, and supersedes all
proposals, written or oral, and all other communications between the parties relating to the
subject matter of this Agreement. This Agreement may be modified, amended or rescinded only by
a written agreement executed by both parties.

 

(d) Severability. The invalidity, illegality or unenforceability of any provision
of this Agreement shall in no way affect the validity, legality or enforceability of any other
provision.

 

(e) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns, subject to the
limitations set forth in Section 10 hereof.

 

(f) Pronouns. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular forms of nouns and pronouns shall include the plural, and vice versa.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

1

IN WITNESS WHEREOF, the Company and the Optionee have caused this instrument to be executed as
of the date first above written.

OPTIONEE:

/s/ Rory J. Cowan

LIONBRIDGE TECHNOLOGIES, INC.

/s/ Eileen Sweeney

Senior Vice President, Human Resources

2

LIONBRIDGE TECHNOLOGIES, INC.

 

Stock Option Agreement 

 

Lionbridge Technologies, Inc. a Delaware corporation (the “Company”), hereby grants as of
September 19, 2006 to Rory J. Cowan (the “Optionee”) an option to purchase a maximum of
100,000 shares (the “Option Shares”) of its Common Stock, $.01 par value per share (“Common
Stock”), at the price equal to the fair market value of the Company’s stock on the date of grant,
on the following terms and conditions:

 

1. Grant Under 2005 Stock Incentive Plan. This option is granted pursuant to and is
governed by the Company’s 2005 Stock Incentive Plan (the “Plan”) and, unless the context otherwise
requires, terms used herein shall have the same meaning as in the Plan. Determinations made in
connection with this option pursuant to the Plan shall be governed by the Plan as it exists on this
date. Reference is also made to the Employment Agreement between the Company and the Optionee of
even date hereof, as it may be from time to time amended (the “Employment Agreement”).

 

2. Grant as Non-Qualified Option; Other Options. This option shall be treated for
United States income tax purposes as a Non-Qualified Option (rather than an incentive stock
option). This option is in addition to any other options heretofore or hereafter granted to the
Optionee by the Company or any Related Corporation (as defined in the Plan), but a duplicate
original of this instrument shall not effect the grant of another option.

 

3. Vesting of Option if Business Relationship Continues. If the Optionee has continued
to serve the Company or any Related Corporation in the capacity of Chief Executive Officer (such
service is described herein as maintaining or being involved in a “Business Relationship” with the
Company), then on the following dates, this option will become exercisable (“vest”) as to all of
the original number of Option Shares on the last day of any 30 consecutive calendar day period
beginning after the date hereof (a “Measurement Period”) during which the Company’s average closing
stock price in a thirty day period was greater than or equal to $13.50.

 

Notwithstanding the foregoing, in accordance with and subject to the provisions of the Plan, the
Committee may, in its discretion, accelerate the date that any installment of this Option becomes
exercisable. The foregoing rights are cumulative and (subject to Sections 4 or 5 hereof if the
Business Relationship between the Optionee and the Company or any Related Corporation terminates)
may be exercised up to and including the date that is seven years from the date this option is
granted.

 

	 	5.	 	Vesting of Option upon Termination of Business Relationship.

	 	(e)	 	Termination Other than for Cause. If the Optionee’s Business
Relationship with the Company and all Related Corporations is terminated, other
than by reason of (i) termination for Cause as defined in Section 5.3 of the
Employment Agreement, (ii) termination by Executive without Good Reason as defined
in Section 5.5 or (iii) Change of Control (as defined in the Employment Agreement),
this option shall be exercisable (“vest”) as to the following number of Option
Shares for a period of three years following the Executive’s last day of employment
(“Termination Date”) as follows and in each case, reduced by the number of Option
Shares that had already vested based on achievement of the performance criteria set
forth in Section 3:

	 	(d)	 	100% of all Option Shares that vest under Section 3 on or before one
year after Termination Date.

	 	(e)	 	2/3 of all Option Shares that vest under Section 3 on or before two
years after the Termination Date and after one year after Termination Date; and

	 	(f)	 	1/3 of all Option Shares that vest under Section 3 on or before three
years after the Termination Date and after two years after the Termination Date.

	 	(f)	 	Termination for Cause or by Optionee without Good Reason. If
the Optionee’s Business Relationship with the Company is terminated for Cause (as
defined in Section 5.3 of the Employment Agreement or by the Optionee without Good
Reason (as defined in Section 5.5 of the Employment Agreement), this option shall
terminate upon the Optionee’s receipt of written notice of such termination if
terminated by the Company for Cause or on the Termination Date, if terminated by
the Executive without Good Reason and shall thereafter not be exercisable to any
extent whatsoever.

	 	(g)	 	Change of Control. Upon a Change of Control, this option shall
be exercisable (“vest”) as to all of the Option Shares. If the Optionee’s Business
Relationship with the Company is terminated by reason of a Change of Control,
within the six month period preceding the Change of Control , this Option shall be
exercisable (“vest”) as to all of the Option Shares.

	 	(h)	 	Expiration following Termination. Notwithstanding the
foregoing and except as provided in Section 5 below, the option shall expire (and
may no longer be exercised) after the passage of three years plus sixty (60) days
from Termination, but in no event later than the scheduled expiration date. In such
a case, the Optionee’s only rights hereunder shall be those which are properly
exercised before the termination of this option.

 

5. Death; Disability. If the Optionee is a natural person who dies while involved in a
Business Relationship with the Company, this option may be exercised, to the extent otherwise
exercisable on the date of his or her death, by the Optionee’s estate, personal representative or
beneficiary to whom this option has been assigned pursuant to Section 10, at any time within
180 days after the date of death, but not later than the scheduled expiration date. If the Optionee
is a natural person whose Business Relationship with the Company is terminated by reason of his or
her disability (as defined in the Plan), this option may be exercised, to the extent otherwise
exercisable on the date the Business Relationship was terminated, at any time within 180 days after
such termination, but not later than the scheduled expiration date. At the expiration of such
180-day period or the scheduled expiration date, whichever is the earlier, this option shall
terminate and the only rights hereunder shall be those as to which the option was properly
exercised before such termination, subject to the provisions of Section 4(a) above.

        .
 

6. Partial Exercise. This option may be exercised in part at any time and from time to
time within the above limits, except that this option may not be exercised for a fraction of a
share unless such exercise is with respect to the final installment of stock subject to this option
and cash in lieu of a fractional share must be paid, in accordance with Paragraph 10 of the Plan,
to permit the Optionee to exercise completely such final installment. Any fractional share with
respect to which an installment of this option cannot be exercised because of the limitation
contained in the preceding sentence shall remain subject to this option and shall be available for
later purchase by the Optionee in accordance with the terms hereof.

7. Payment of Price.

 

(a) Form of Payment. The option price shall be paid in the following manner:

 

(i) in cash or by check;

 

(ii) subject to Section 7(b) below, by delivery of shares of the Company’s Common Stock
having a Fair Market Value (as defined in the Plan) equal as of the date of exercise to
the option price;

 

(iii) by delivery of an assignment satisfactory in form and substance to the Company of
a sufficient amount of the proceeds from the sale of the shares underlying this option
(the “Option Shares”) and an instruction to the broker or selling agent to pay that
amount to the Company; or

 

(iv) by any combination of the foregoing.

 

(b) Limitations on Payment by Delivery of Common Stock. If the Optionee delivers
Common Stock held by the Optionee (“Old Stock”) to the Company in full or partial payment of
the option price, and the Old Stock so delivered is subject to restrictions or limitations
imposed by agreement between the Optionee and the Company, an equivalent number of Option
Shares shall be subject to all restrictions and limitations applicable to the Old Stock to the
extent that the Optionee paid for the Option Shares by delivery of Old Stock, in addition to
any restrictions or limitations imposed by this Agreement. Notwithstanding the foregoing, the
Optionee may not pay any part of the exercise price hereof by transferring Common Stock to the
Company unless such Common Stock has been owned by the Optionee free of any substantial risk
of forfeiture for at least six months.

 
 

8. No Obligation to Exercise Option. The grant and acceptance of this option imposes
no obligation on the Optionee to exercise it.

 

9. No Obligation to Continue Business Relationship. Neither the Plan, this Agreement,
nor the grant of this option imposes any obligation on the Company or any Related Corporation to
continue to maintain a Business Relationship with the Optionee.

 

10. No Rights as Stockholder until Exercise. The Optionee shall have no rights as a
stockholder with respect to the Option Shares until such time as the Optionee has exercised this
option by delivering a notice of exercise and has paid in full the purchase price for the number of
shares for which this option is to be so exercised in accordance with Section 9. Except as is
expressly provided in the Plan with respect to certain changes in the capitalization of the
Company, no adjustment shall be made for dividends or similar rights for which the record date is
prior to such date of exercise.

 

11. Capital Changes and Business Successions. It is the purpose of this option to
encourage the Optionee to work for the best interests of the Company or any Related Corporation and
its stockholders. Since, for example, that might require the issuance of a stock dividend or a
merger with another corporation, the purpose of this option would not be served if such a stock
dividend, merger or similar occurrence would cause the Optionee’s rights hereunder to be diluted or
terminated and thus be contrary to the Optionee’s interest. The Plan contains extensive provisions
designed to preserve options at full value in a number of contingencies. Therefore, provisions in
the Plan for adjustment with respect to stock subject to options and the related provisions with
respect to successors to the business of the Company are hereby made applicable hereunder and are
incorporated herein by reference. In particular, without affecting the generality of the foregoing,
it is understood that for the purposes of Sections 3 through 5 hereof, both inclusive, employment
by the Company includes employment by a Related Corporation.

 

12. Withholding Taxes. If the Company or any Related Corporation in its discretion
determines that it is obligated to withhold any tax in connection with the exercise of this option,
or in connection with the transfer of, or the lapse of restrictions on, any Common Stock or other
property acquired pursuant to this option, the Optionee hereby agrees that the Company or any
Related Corporation may withhold from the Optionee’s wages or other remuneration the appropriate
amount of tax. At the discretion of the Company or Related Corporation, the amount required to be
withheld may be withheld in cash from such wages or other remuneration or in kind from the Common
Stock or other property otherwise deliverable to the Optionee on exercise of this option. The
Optionee further agrees that, if the Company or Related Corporation does not withhold an amount
from the Optionee’s wages or other remuneration sufficient to satisfy the withholding obligation of
the Company or Related Corporation, the Optionee will make reimbursement on demand, in cash, for
the amount underwithheld.

 

13. Provision of Documentation to Employee. By signing this Agreement the Optionee
acknowledges receipt of a copy of this Agreement and a copy of the Plan.

 

14. Miscellaneous.

 

(a) Governing Law. This Agreement shall be governed by and interpreted in
accordance with the internal laws of the Commonwealth of Massachusetts.

 

(b) Notices. All notices hereunder shall be in writing and shall be deemed given
when sent by certified or registered mail, postage prepaid, return receipt requested, to the
address set forth below. The addresses for such notices may be changed from time to time by
written notice given in the manner provided for herein.

 

(c) Entire Agreement; Modification. This Agreement constitutes the entire
agreement between the parties relative to the subject matter hereof, and supersedes all
proposals, written or oral, and all other communications between the parties relating to the
subject matter of this Agreement. This Agreement may be modified, amended or rescinded only by
a written agreement executed by both parties.

 

(d) Severability. The invalidity, illegality or unenforceability of any provision
of this Agreement shall in no way affect the validity, legality or enforceability of any other
provision.

 

(e) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns, subject to the
limitations set forth in Section 10 hereof.

 

(f) Pronouns. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular forms of nouns and pronouns shall include the plural, and vice versa.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

3

IN WITNESS WHEREOF, the Company and the Optionee have caused this instrument to be executed as
of the date first above written.

 

OPTIONEE:

/s/ Rory J. Cowan

LIONBRIDGE TECHNOLOGIES, INC.

/s/ Eileen Sweeney

Senior Vice President, Human Resources

4

LIONBRIDGE TECHNOLOGIES, INC.

 

Stock Option Agreement 

 

Lionbridge Technologies, Inc. a Delaware corporation (the “Company”), hereby grants as of
September 19 , 2006 to Rory J. Cowan (the “Optionee”) an option to purchase a maximum of
100,000 shares (the “Option Shares”) of its Common Stock, $.01 par value per share (“Common
Stock”), at the price equal to the fair market value of the Company’s stock on the date of grant,
on the following terms and conditions:

 

1. Grant Under 2005 Stock Incentive Plan. This option is granted pursuant to and is
governed by the Company’s 2005 Stock Incentive Plan (the “Plan”) and, unless the context otherwise
requires, terms used herein shall have the same meaning as in the Plan. Determinations made in
connection with this option pursuant to the Plan shall be governed by the Plan as it exists on this
date. Reference is also made to the Employment Agreement between the Company and the Optionee of
even date hereof, as it may be from time to time amended (the “Employment Agreement”).

 

2. Grant as Non-Qualified Option; Other Options. This option shall be treated for
United States income tax purposes as a Non-Qualified Option (rather than an incentive stock
option). This option is in addition to any other options heretofore or hereafter granted to the
Optionee by the Company or any Related Corporation (as defined in the Plan), but a duplicate
original of this instrument shall not effect the grant of another option.

 

3. Vesting of Option if Business Relationship Continues. If the Optionee has continued
to serve the Company or any Related Corporation in the capacity of Chief Executive Officer (such
service is described herein as maintaining or being involved in a “Business Relationship” with the
Company), then on the following dates, this option will become exercisable (“vest”) as to all of
the original number of Option Shares on the last day of any 30 consecutive calendar day period
beginning after the date hereof (a “Measurement Period”) during which the Company’s average closing
stock price in a thirty day period was greater than or equal to $17.00.

 

Notwithstanding the foregoing, in accordance with and subject to the provisions of the Plan, the
Committee may, in its discretion, accelerate the date that any installment of this Option becomes
exercisable. The foregoing rights are cumulative and (subject to Sections 4 or 5 hereof if the
Business Relationship between the Optionee and the Company or any Related Corporation terminates)
may be exercised up to and including the date that is nine years from the date this option is
granted.

	 	4.	 	Vesting of Option upon Termination of Business Relationship.

	 	(i)	 	Termination Other than for Cause. If the Optionee’s Business
Relationship with the Company and all Related Corporations is terminated, other
than by reason of (i) termination for Cause as defined in Section 5.3 of the
Employment Agreement, (ii) termination by Executive without Good Reason as defined
in Section 5.5 or (iii) Change of Control (as defined in the Employment Agreement),
this option shall be exercisable (“vest”) as to the following number of Option
Shares for a period of three years following the Executive’s last day of employment
(“Termination Date”) as follows and in each case, reduced by the number of Option
Shares that had already vested based on achievement of the performance criteria set
forth in Section 3:

	 	(g)	 	100% of all Option Shares that vest under Section 3 on or before one
year after Termination Date.

	 	(h)	 	2/3 of all Option Shares that vest under Section 3 on or before two
years after the Termination Date and after one year after Termination Date; and

	 	(i)	 	1/3 of all Option Shares that vest under Section 3 on or before three
years after the Termination Date and after two years after the Termination Date.

	 	(j)	 	Termination for Cause or by Optionee without Good Reason. If
the Optionee’s Business Relationship with the Company is terminated for Cause (as
defined in Section 5.3 of the Employment Agreement or by the Optionee without Good
Reason (as defined in Section 5.5 of the Employment Agreement), this option shall
terminate upon the Optionee’s receipt of written notice of such termination if
terminated by the Company for Cause or on the Termination Date, if terminated by
the Executive without Good Reason and shall thereafter not be exercisable to any
extent whatsoever.

	 	(k)	 	Change of Control. Upon a Change of Control, this option shall
be exercisable (“vest”) as to all of the Option Shares. If the Optionee’s Business
Relationship with the Company is terminated by reason of a Change of Control,
within the six month period preceding the Change of Control , this Option shall be
exercisable (“vest”) as to all of the Option Shares.

	 	(l)	 	Expiration following Termination. Notwithstanding the
foregoing and except as provided in Section 5 below, the option shall expire (and
may no longer be exercised) after the passage of three years plus sixty (60) days
from Termination, but in no event later than the scheduled expiration date. In such
a case, the Optionee’s only rights hereunder shall be those which are properly
exercised before the termination of this option.

 

5. Death; Disability. If the Optionee is a natural person who dies while involved in a
Business Relationship with the Company, this option may be exercised, to the extent otherwise
exercisable on the date of his or her death, by the Optionee’s estate, personal representative or
beneficiary to whom this option has been assigned pursuant to Section 10, at any time within
180 days after the date of death, but not later than the scheduled expiration date. If the Optionee
is a natural person whose Business Relationship with the Company is terminated by reason of his or
her disability (as defined in the Plan), this option may be exercised, to the extent otherwise
exercisable on the date the Business Relationship was terminated, at any time within 180 days after
such termination, but not later than the scheduled expiration date. At the expiration of such
180-day period or the scheduled expiration date, whichever is the earlier, this option shall
terminate and the only rights hereunder shall be those as to which the option was properly
exercised before such termination, subject to the provisions of Section 4(a) above.

        .
 

6. Partial Exercise. This option may be exercised in part at any time and from time to
time within the above limits, except that this option may not be exercised for a fraction of a
share unless such exercise is with respect to the final installment of stock subject to this option
and cash in lieu of a fractional share must be paid, in accordance with Paragraph 10 of the Plan,
to permit the Optionee to exercise completely such final installment. Any fractional share with
respect to which an installment of this option cannot be exercised because of the limitation
contained in the preceding sentence shall remain subject to this option and shall be available for
later purchase by the Optionee in accordance with the terms hereof.

7. Payment of Price.

 

(a) Form of Payment. The option price shall be paid in the following manner:

 

(i) in cash or by check;

 

(ii) subject to Section 7(b) below, by delivery of shares of the Company’s Common Stock
having a Fair Market Value (as defined in the Plan) equal as of the date of exercise to
the option price;

 

(iii) by delivery of an assignment satisfactory in form and substance to the Company of
a sufficient amount of the proceeds from the sale of the shares underlying this option
(the “Option Shares”) and an instruction to the broker or selling agent to pay that
amount to the Company; or

 

(iv) by any combination of the foregoing.

 

(b) Limitations on Payment by Delivery of Common Stock. If the Optionee delivers
Common Stock held by the Optionee (“Old Stock”) to the Company in full or partial payment of
the option price, and the Old Stock so delivered is subject to restrictions or limitations
imposed by agreement between the Optionee and the Company, an equivalent number of Option
Shares shall be subject to all restrictions and limitations applicable to the Old Stock to the
extent that the Optionee paid for the Option Shares by delivery of Old Stock, in addition to
any restrictions or limitations imposed by this Agreement. Notwithstanding the foregoing, the
Optionee may not pay any part of the exercise price hereof by transferring Common Stock to the
Company unless such Common Stock has been owned by the Optionee free of any substantial risk
of forfeiture for at least six months.

 
 

8. No Obligation to Exercise Option. The grant and acceptance of this option imposes
no obligation on the Optionee to exercise it.

 

9. No Obligation to Continue Business Relationship. Neither the Plan, this Agreement,
nor the grant of this option imposes any obligation on the Company or any Related Corporation to
continue to maintain a Business Relationship with the Optionee.

 

10. No Rights as Stockholder until Exercise. The Optionee shall have no rights as a
stockholder with respect to the Option Shares until such time as the Optionee has exercised this
option by delivering a notice of exercise and has paid in full the purchase price for the number of
shares for which this option is to be so exercised in accordance with Section 9. Except as is
expressly provided in the Plan with respect to certain changes in the capitalization of the
Company, no adjustment shall be made for dividends or similar rights for which the record date is
prior to such date of exercise.

 

11. Capital Changes and Business Successions. It is the purpose of this option to
encourage the Optionee to work for the best interests of the Company or any Related Corporation and
its stockholders. Since, for example, that might require the issuance of a stock dividend or a
merger with another corporation, the purpose of this option would not be served if such a stock
dividend, merger or similar occurrence would cause the Optionee’s rights hereunder to be diluted or
terminated and thus be contrary to the Optionee’s interest. The Plan contains extensive provisions
designed to preserve options at full value in a number of contingencies. Therefore, provisions in
the Plan for adjustment with respect to stock subject to options and the related provisions with
respect to successors to the business of the Company are hereby made applicable hereunder and are
incorporated herein by reference. In particular, without affecting the generality of the foregoing,
it is understood that for the purposes of Sections 3 through 5 hereof, both inclusive, employment
by the Company includes employment by a Related Corporation.

 

12. Withholding Taxes. If the Company or any Related Corporation in its discretion
determines that it is obligated to withhold any tax in connection with the exercise of this option,
or in connection with the transfer of, or the lapse of restrictions on, any Common Stock or other
property acquired pursuant to this option, the Optionee hereby agrees that the Company or any
Related Corporation may withhold from the Optionee’s wages or other remuneration the appropriate
amount of tax. At the discretion of the Company or Related Corporation, the amount required to be
withheld may be withheld in cash from such wages or other remuneration or in kind from the Common
Stock or other property otherwise deliverable to the Optionee on exercise of this option. The
Optionee further agrees that, if the Company or Related Corporation does not withhold an amount
from the Optionee’s wages or other remuneration sufficient to satisfy the withholding obligation of
the Company or Related Corporation, the Optionee will make reimbursement on demand, in cash, for
the amount underwithheld.

 

13. Provision of Documentation to Employee. By signing this Agreement the Optionee
acknowledges receipt of a copy of this Agreement and a copy of the Plan.

 

14. Miscellaneous.

 

(a) Governing Law. This Agreement shall be governed by and interpreted in
accordance with the internal laws of the Commonwealth of Massachusetts.

 

(b) Notices. All notices hereunder shall be in writing and shall be deemed given
when sent by certified or registered mail, postage prepaid, return receipt requested, to the
address set forth below. The addresses for such notices may be changed from time to time by
written notice given in the manner provided for herein.

 

(c) Entire Agreement; Modification. This Agreement constitutes the entire
agreement between the parties relative to the subject matter hereof, and supersedes all
proposals, written or oral, and all other communications between the parties relating to the
subject matter of this Agreement. This Agreement may be modified, amended or rescinded only by
a written agreement executed by both parties.

 

(d) Severability. The invalidity, illegality or unenforceability of any provision
of this Agreement shall in no way affect the validity, legality or enforceability of any other
provision.

 

(e) Successors and Assigns. This Agreement shall be binding upon and inure to the
benefit of the parties hereto and their respective successors and assigns, subject to the
limitations set forth in Section 10 hereof.

 

(f) Pronouns. Whenever the context may require, any pronouns used in this
Agreement shall include the corresponding masculine, feminine or neuter forms, and the
singular forms of nouns and pronouns shall include the plural, and vice versa.

 

[REMAINDER OF PAGE INTENTIONALLY LEFT BLANK]

5

IN WITNESS WHEREOF, the Company and the Optionee have caused this instrument to be executed as
of the date first above written.

 

OPTIONEE:

/s/ Rory J. Cowan

LIONBRIDGE TECHNOLOGIES, INC.

/s/ Eileen Sweeney

Senior Vice President, Human Resources

6Exhibit 10.4

THIS  NOTE HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED,
AND  IS  TRANSFERABLE  ONLY  UPON  THE  CONDITIONS  SPECIFIED  HEREIN.

                                 PROMISSORY NOTE

US  $5,000                                                      August 21,  2006

     FOR  VALUE  RECEIVED,  the  undersigned, NANO HOLDINGS INTERNATIONAL, INC.,
which  has  a  business  address  of 1640 Terrace Way, Walnut Creek, California
94597  ("Maker"),  hereby  promises  to  pay  to  the order of JENADOSA HOLDINGS
LIMITED,  P.O.  Box  HM  279,  The  Armoury Building, 2nd Floor, 37 Reid Street,
Hamilton  HM  AX, Bermuda ("Payee"), the principal sum of Five  Thousand Dollars
($5,000),  in  lawful  money  in United States of America,  which shall be legal
tender,  bearing  interest and payable as provided herein.  This Promissory Note
("Note")  memorializes  the  terms of a loan originally made by the Payee to the
Maker  on  August 21,  2006,  and  as such this Note has an  effective  date  of
August 21,  2006  (the  "Effective  Date").

     Interest  on the unpaid balance of this Note from the Effective Date of the
Note,  until  such  Note is paid in full, shall bear interest at the rate of 10%
per  annum.  Interest  will  be  computed  on  the  basis of a 360-day year. All
principal  and accrued interest payable under this Note shall be due and payable
on July 31, 2007.

     Any repayment amounts not paid within fifteen (15) business days of Payee's
demand  for  repayment  shall  bear  interest at the rate of 15% per annum until
paid.

     If  any payment of principal or interest on this Note shall become due on a
Saturday,  Sunday  or  any  other  day  on which national banks are not open for
business,  such  payment  shall  be  made  on  the next succeeding business day.

     This Note shall be binding upon and inure to the benefit of the Payee named
herein and Payee's respective successors and assigns.  Each holder of this Note,
by  accepting the same, agrees to and shall be bound by all of the provisions of
this  Note.  Payee  may  assign  this  Note  or  any of its rights, interests or
obligations  to  this  Note  without  the  prior  written  approval  of  Maker.

     No  provision of this Note shall alter or impair the obligation of Maker to
pay  the  principal of and interest on this Note at the times, places and rates,
and  in the coin or currency, herein prescribed.  This Note may be repaid by the
Maker  at  any  time.

<PAGE>

     Notwithstanding  anything  to  the  contrary  in  this  Note  or  any other
agreement entered into in connection herewith, whether now existing or hereafter
arising  and  whether  written  or  oral, it is agreed that the aggregate of all
interest  and  any  other  charges  constituting  interest,  or  adjudicated  as
constituting  interest,  and contracted for, chargeable or receivable under this
Note  or  otherwise  in  connection  with  this loan transaction, shall under no
circumstances  exceed  the  Maximum  Rate  provided  by  law.

     In the event the maturity of this Note is accelerated by reason of an Event
of  Default  under  this  Note,  any  other agreement entered into in connection
herewith  or  therewith,  or by voluntary prepayment by Maker or otherwise, then
earned  interest may never include more than the Maximum Rate, computed from the
dates  of  each advance of the loan proceeds outstanding until payment.  If from
any  circumstance  any  holder  of  this Note shall ever receive interest or any
other  charges  constituting  interest, or adjudicated as constituting interest,
the  amount, if any, which would exceed the Maximum Rate shall be applied to the
reduction  of the principal amount owing on this Note, and not to the payment of
interest;  or if such excessive interest exceeds the unpaid balance of principal
hereof, the amount of such excessive interest that exceeds the unpaid balance of
principal  hereof shall be refunded to Maker.  In determining whether or not the
interest  paid  or  payable exceeds the Maximum Rate, to the extent permitted by
applicable  law  (i)  any  nonprincipal  payment  shall  be  characterized as an
expense,  fee  or  premium rather than as interest; and (ii) all interest at any
time contracted for, charged, received or preserved in connection herewith shall
be amortized, prorated, allocated and spread in equal parts during the period of
the  full  stated  term  of  this  Note.  The term "Maximum Rate" shall mean the
maximum  rate  of  interest  allowed  by  applicable  federal  or  state  law.

     Except as provided herein, Maker and any sureties, guarantors and endorsers
of  this  Note  jointly  and  severally  waive  demand,  presentment,  notice of
nonpayment  or dishonor, notice of intent to accelerate, notice of acceleration,
diligence  in  collecting,  grace,  notice  and  protest,  and  consent  to  all
extensions  without  notice  for  any  period  or  periods  of  time and partial
payments, before or after maturity, without prejudice to the holder.  The holder
shall similarly have the right to deal in any way, at any time, with one or more
of  the  foregoing  parties  without notice to any other party, and to grant any

<PAGE>

such party any extensions of time for payment of any of said indebtedness, or to
grant  any  other  indulgences  or forbearance whatsoever, without notice to any
other party and without in any way affecting the personal liability of any party
hereunder.  If  any  efforts  are  made  to  collect or enforce this Note or any
installment  due  hereunder,  the undersigned agrees to pay all collection costs
and  fees,  including  reasonable  attorney's  fees.

     This  Note shall be construed and enforced under and in accordance with the
laws  of  the  State  of  Texas.

     No  failure on the part of any party to enforce any provisions of this Note
will  act  as  a  waiver of the right to enforce that provision.  A photocopy of
this  Note  shall  be  effective  as  an  original  for  all  purposes.

     IN  WITNESS  WHEREOF,  Maker  has duly executed this Note as of the day and
year  first  above  written,  with  an  Effective  Date  as  provided  above.

                         NANO  HOLDINGS  INTERNATIONAL,  INC.
                         ------------------------------------

                         /s/ David Rector
                         -----------------------------------------
                         David  Rector
                         Chief  Executive  Officer  and  President

<PAGE>

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