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                                                                    Exhibit 10.1

                          LIONBRIDGE TECHNOLOGIES, INC.

                                 1998 STOCK PLAN

         1. Purpose. The purpose of the Lionbridge Technologies, Inc. 1998 Stock
Plan (the "Plan") is to encourage key employees of Lionbridge Technologies
Holdings, Inc. (the "Company") and of any present or future parent or subsidiary
of the Company (collectively, "Related Corporations") and other individuals who
render services to the Company or a Related Corporation, by providing
opportunities to participate in the ownership of the Company and its future
growth through (a) the grant of options which qualify as "incentive stock
options" ("ISOs") under Section 422(b) of the Internal Revenue Code of 1986, as
amended (the "Code"); (b) the grant of options which do not qualify as ISOs
("Non-Qualified Options"); (c) awards of stock in the Company ("Awards"); (d)
opportunities to make direct purchases of stock in the Company ("Purchases") and
(e) stock appreciation rights ("Stock Appreciation Rights"). Both ISOs and
Non-Qualified Options are referred to hereafter individually as an "Option" and
collectively as "Options." Options, Awards, authorizations to make Purchases and
Stock Appreciation Rights are referred to hereafter collectively as "Stock
Rights." As used herein, the terms "parent" and "subsidiary" mean "parent
corporation" and "subsidiary corporation," respectively, as those terms are
defined in Section 424 of the Code.

         2.    Administration of the Plan.

               A. Board or Committee Administration. The Plan shall be
          administered by the Board of Directors of the Company (the "Board")
          or, subject to paragraph 2(D) (relating to compliance with Section
          162(m) of the Code), by a committee appointed by the Board (the
          "Committee"). Hereinafter, all references in this Plan to the
          "Committee" shall mean the Board if no Committee has been appointed.
          Subject to ratification of the grant or authorization of each Stock
          Right by the Board (if so required by applicable state law), and
          subject to the terms of the Plan, the Committee shall have the
          authority to (i) determine to whom (from among the class of employees
          eligible under paragraph 3 to receive ISOs) ISOs shall be granted, and
          to whom (from among the class of individuals and entities eligible
          under paragraph 3 to receive Non-Qualified Options and Awards and to
          make Purchases) Non-Qualified Options, Awards and authorizations to
          make Purchases may be granted; (ii) determine the time or times at
          which Options or Awards shall be granted or Purchases made; (iii)
          determine the purchase price of shares subject to each Option or
          Purchase, which prices shall not be less than the minimum price
          specified in paragraph 6; (iv) determine whether each Option granted
          shall be an ISO or a Non-Qualified Option; (v) determine (subject to
          paragraph 7) the time or times when each Option shall become
          exercisable and the duration of the exercise period; (vi) extend the
          period during which outstanding Options may be exercised; (vii)
          determine whether restrictions such as repurchase options are to be
          imposed on shares subject to Options, Awards and Purchases and the
          nature of such restrictions, if any, (viii) interpret the Plan and
          prescribe and rescind rules and regulations relating to it and (ix)
          authorize a repricing

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          of any Stock Rights previously granted. If the Committee determines to
          issue a Non-Qualified Option, it shall take whatever actions it deems
          necessary, under Section 422 of the Code and the regulations
          promulgated thereunder, to ensure that such Option is not treated as
          an ISO. The interpretation and construction by the Committee of any
          provisions of the Plan or of any Stock Right granted under it shall be
          final unless otherwise determined by the Board. The Committee may from
          time to time adopt such rules and regulations for carrying out the
          Plan as it may deem advisable. No member of the Board or the Committee
          shall be liable for any action or determination made in good faith
          with respect to the Plan or any Stock Right granted under it.

               B. Committee Actions. The Committee may select one of its members
          as its chairman, and shall hold meetings at such time and places as it
          may determine. A majority of the Committee shall constitute a quorum
          and acts of a majority of the members of the Committee at a meeting at
          which a quorum is present, or acts reduced to or approved in writing
          by all the members of the Committee (if consistent with applicable
          state law), shall be the valid acts of the Committee. From time to
          time the Board may increase the size of the Committee and appoint
          additional members thereof, remove members (with or without cause) and
          appoint new members in substitution therefor, fill vacancies however
          caused, or remove all members of the Committee and thereafter directly
          administer the Plan.

               C. Grant of Stock Rights to Board Members. Stock Rights may be
          granted to members of the Board. All grants of Stock Rights to members
          of the Board shall in all respects be made in accordance with the
          provisions of this Plan applicable to other eligible persons. Members
          of the Board who either (i) are eligible to receive grants of Stock
          Rights pursuant to the Plan or (ii) have been granted Stock Rights may
          vote on any matters affecting the administration of the Plan or the
          grant of any Stock Rights pursuant to the Plan, except that no such
          member shall act upon the granting to himself or herself of Stock
          Rights, but any such member may be counted in determining the
          existence of a quorum at any meeting of the Board during which action
          is taken with respect to the granting to such member of Stock Rights.

               D. Performance-Based Compensation. The Board, in its discretion,
          may take such action as may be necessary to ensure that Stock Rights
          granted under the Plan qualify as "qualified performance-based
          compensation" within the meaning of Section 162(m) of the Code and
          applicable regulations promulgated thereunder ("Performance-Based
          Compensation"). Such action may include, in the Board's discretion,
          some or all of the following (i) if the Board determines that Stock
          Rights granted under the Plan generally shall constitute
          Performance-Based Compensation, the Plan shall be administered, to the
          extent required for such Stock Rights to constitute Performance-Based
          Compensation, by a Committee consisting solely of two or more "outside
          directors" (as defined in applicable regulations promulgated under
          Section 162(m) of the Code), (ii) if any Non-Qualified Options with an
          exercise price less than the fair market value per share of Common
          Stock are granted under the Plan and the Board determines that such
          Options should constitute Performance-Based Compensation, such options
          shall

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          be made exercisable only upon the attainment of a pre-established,
          objective performance goal established by the Committee, and such
          grant shall be submitted for, and shall be contingent upon shareholder
          approval and (iii) Stock Rights granted under the Plan may be subject
          to such other terms and conditions as are necessary for compensation
          recognized in connection with the exercise or disposition of such
          Stock Right or the disposition of Common Stock acquired pursuant to
          such Stock Right, to constitute Performance-Based Compensation.

          3. Eligible Employees and Others. ISOs may be granted only to
employees of the Company or any Related Corporation. Non-Qualified Options,
Awards and authorizations to make Purchases may be granted to any employee,
officer or director (whether or not also an employee) or consultant of the
Company or any Related Corporation. The Committee may take into consideration a
recipient's individual circumstances in determining whether to grant a Stock
Right. The granting of any Stock Right to any individual or entity shall neither
entitle that individual or entity to, nor disqualify such individual or entity
from, participation in any other grant of Stock Rights.

          4. Stock. The stock subject to Stock Rights shall be authorized but
unissued shares of Common Stock of the Company, par value $.01 per share (the
"Common Stock"), or shares of Common Stock reacquired by the Company in any
manner. The aggregate number of shares which may be issued pursuant to the Plan
is 9,722,032, subject to adjustment as provided in paragraph 13. If any Option
granted under the Plan shall expire or terminate for any reason without having
been exercised in full or shall cease for any reason to be exercisable in whole
or in part or shall be repurchased by the Company, the unpurchased shares of
Common Stock subject to such Option shall again be available for grants of Stock
Rights under the Plan. In addition, any shares of Common Stock received by the
Company pursuant to Section 14(d) or 19, or in connection with the exercise of a
Stock Appreciation Right, shall again be available for grants of Stock Rights
under the Plan.

          No employee of the Company or any Related Corporation may be granted
Options to acquire, in the aggregate, more than 2,333,334 shares of Common Stock
under the Plan during any fiscal year of the Company. If any Option granted
under the Plan shall expire or terminate for any reason without having been
exercised in full or shall cease for any reason to be exercisable in whole or in
part or shall be repurchased by the Company, the shares subject to such Option
shall be included in the determination of the aggregate number of shares of
Common Stock deemed to have been granted to such employee under the Plan.

          5. Granting of Stock Rights. Stock Rights may be granted under the
Plan at any time on or after January 27, 1998 and prior to January 26, 2008. The
date of grant of a Stock Right under the Plan will be the date specified by the
Committee at the time it grants the Stock Right; provided, however, that such
date shall not be prior to the date on which the Committee acts to approve the
grant.

          6. Minimum Option Price; ISO Limitations.

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                    A. Price for Non-Qualified Options, Awards and Purchases.
          Subject to paragraph 2(D) (relating to compliance with Section 162(m)
          of the Code), the exercise price per share specified in the agreement
          relating to each Non-Qualified Option granted, and the purchase price
          per share of stock granted in any Award or authorized as a Purchase,
          under the Plan may be less than the fair market value of the Common
          Stock of the Company on the date of grant; provided that, in no event
          shall such exercise price or such purchase price be less than the
          minimum legal consideration required therefor under the laws of any
          jurisdiction in which the Company or its successors in interest may be
          organized.

                    B. Price for ISOs. The exercise price per share specified in
          the agreement relating to each ISO granted under the Plan shall not be
          less than the fair market value per share of Common Stock on the date
          of such grant. In the case of an ISO to be granted to an employee
          owning stock possessing more than ten percent (10%) of the total
          combined voting power of all classes of stock of the Company or any
          Related Corporation, the price per share specified in the agreement
          relating to such ISO shall not be less than one hundred ten percent
          (110%) of the fair market value per share of Common Stock on the date
          of grant. For purposes of determining stock ownership under this
          paragraph, the rules of Section 424(d) of the Code shall apply.

                    C. $100,000 Annual Limitation on ISO Vesting. Each eligible
          employee may be granted Options treated as ISOs only to the extent
          that, in the aggregate under this Plan and all incentive stock option
          plans of the Company and any Related Corporation, ISOs do not become
          exercisable for the first time by such employee during any calendar
          year with respect to stock having a fair market value (determined at
          the time the ISOs were granted) in excess of $100,000. The Company
          intends to designate any Options granted in excess of such limitation
          as Non-Qualified Options, and the Company shall issue separate
          certificates to the optionee with respect to Options that are
          Non-Qualified Options and Options that are ISOs.

                    D. Determination of Fair Market Value. If, at the time an
          Option is granted under the Plan, the Company's Common Stock is
          publicly traded, "fair market value" shall be determined as of the
          date of grant or, if the prices or quotes discussed in this sentence
          are unavailable for such date, the last business day for which such
          prices or quotes are available prior to the date of grant and shall
          mean (i) the average (on that date) of the high and low prices of the
          Common Stock on the principal national securities exchange on which
          the Common Stock is traded, if the Common Stock is then traded on a
          national securities exchange; or (ii) the last reported sale price (on
          that date) of the Common Stock on the Nasdaq National Market, if the
          Common Stock is not then traded on a national securities exchange; or
          (iii) the closing bid price (or average of bid prices) last quoted (on
          that date) by an established quotation service for over-the-counter
          securities, if the Common Stock is not reported on the Nasdaq National
          Market. If the Common Stock is not publicly traded at the time an
          Option is granted under the Plan, "fair market value" shall mean the
          fair value of the Common Stock as determined by the Committee after
          taking into consideration all factors which it deems appropriate,

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          including, without limitation, recent sale and offer prices of the
          Common Stock in private transactions negotiated at arm's length.

          7. Option Duration. Subject to earlier termination as provided in
paragraphs 9 and 10 or in the agreement relating to such Option, each Option
shall expire on the date specified by the Committee, but not more than (i) ten
years from the date of grant in the case of Options generally and (ii) five
years from the date of grant in the case of ISOs granted to an employee owning
stock possessing more than ten percent (10%) of the total combined voting power
of all classes of stock of the Company or any Related Corporation, as determined
under paragraph 6(B). Subject to earlier termination as provided in paragraphs 9
and 10, the term of each ISO shall be the term set forth in the original
instrument granting such ISO, except with respect to any part of such ISO that
is converted into a Non-Qualified Option pursuant to paragraph 16.

          8. Exercise of Option. Subject to the provisions of paragraphs 9
through 12, each Option granted under the Plan shall be exercisable as follows:

                    A. Vesting. The Option shall either be fully exercisable on
          the date of grant or shall become exercisable thereafter in such
          installments as the Committee may specify.

                    B. Full Vesting of Installments. Once an installment becomes
          exercisable, it shall remain exercisable until expiration or
          termination of the Option, unless otherwise specified by the
          Committee.

                    C. Partial Exercise. Each Option or installment may be
          exercised at any time or from time to time, in whole or in part, for
          up to the total number of shares with respect to which it is then
          exercisable.

                    D. Acceleration of Vesting. The Committee shall have the
          right to accelerate the date that any installment of any Option
          becomes exercisable; provided that the Committee shall not, without
          the consent of an optionee, accelerate the permitted exercise date of
          any installment of any Option granted to any employee as an ISO (and
          not previously converted into a Non-Qualified Option pursuant to
          paragraph 16) if such acceleration would violate the annual vesting
          limitation contained in Section 422(d) of the Code, as described in
          paragraph 6(C).

          9. Termination of Employment. Unless otherwise specified in the
agreement relating to such ISO, if an ISO optionee ceases to be employed by the
Company and all Related Corporations other than by reason of death or disability
as defined in paragraph 10, no further installments of his or her ISOs shall
become exercisable, and his or her ISOs shall terminate on the earlier of (a)
three months after the date of termination of his or her employment, or (b)
their specified expiration dates, except to the extent that such ISOs (or
unexercised installments thereof) have been converted into Non-Qualified Options
pursuant to paragraph 16. For purposes of this paragraph 9, employment shall be
considered as continuing uninterrupted during any bona fide leave of absence
(such as those attributable to illness, military obligations or

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governmental service) provided that the period of such leave does not exceed 90
days or, if longer, any period during which such optionee's right to
reemployment is guaranteed by statute or by contract. A bona fide leave of
absence with the written approval of the Committee shall not be considered an
interruption of employment under this paragraph 9, provided that such written
approval contractually obligates the Company or any Related Corporation to
continue the employment of the optionee after the approved period of absence.
ISOs granted under the Plan shall not be affected by any change of employment
within or among the Company and Related Corporations, so long as the optionee
continues to be an employee of the Company or any Related Corporation. Nothing
in the Plan shall be deemed to give any grantee of any Stock Right the right to
be retained in employment or other service by the Company or any Related
Corporation for any period of time.

          10. Death; Disability.

                    A. Death. If an ISO optionee ceases to be employed by the
          Company and all Related Corporations by reason of his or her death,
          any ISO owned by such optionee may be exercised, to the extent
          otherwise exercisable on the date of death, by the estate, personal
          representative or beneficiary who has acquired the ISO by will or by
          the laws of descent and distribution, until the earlier of (i) the
          specified expiration date of the ISO or (ii) 180 days from the date of
          the optionee's death.

                    B. Disability. If an ISO optionee ceases to be employed by
          the Company and all Related Corporations by reason of his or her
          disability, such optionee shall have the right to exercise any ISO
          held by him or her on the date of termination of employment, for the
          number of shares for which he or she could have exercised it on that
          date, until the earlier of (i) the specified expiration date of the
          ISO or (ii) 180 days from the date of the termination of the
          optionee's employment. "Disability" means all disabilities which cause
          the employee to cease being employed.

          11. Assignability. No ISO shall be assignable or transferable by the
optionee except by will or by the laws of descent and distribution, and during
the lifetime of the optionee shall be exercisable only by such optionee. Stock
Rights other than ISOs shall be transferable to the extent set forth in the
agreement relating to such Stock Right.

          12. Terms and Conditions of Options. Options shall be evidenced by
instruments (which need not be identical) in such forms as the Committee may
from time to time approve. Such instruments shall conform to the terms and
conditions set forth in paragraphs 6 through 11 hereof and may contain such
other provisions as the Committee deems advisable which are not inconsistent
with the Plan, including restrictions applicable to shares of Common Stock
issuable upon exercise of Options. The Committee may specify that any
Non-Qualified Option shall be subject to the restrictions set forth herein with
respect to ISOs, or to such other termination and cancellation provisions as the
Committee may determine. The Committee may from time to time confer authority
and responsibility on one or more of its own members and/or one or more officers
of the Company to execute and deliver such instruments. The proper officers of
the

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Company are authorized and directed to take any and all action necessary or
advisable from time to time to carry out the terms of such instruments.

          13. Adjustments. Upon the occurrence of any of the following events,
an optionee's rights with respect to Options granted to such optionee hereunder
shall be adjusted as hereinafter provided, unless otherwise specifically
provided in the written agreement between the optionee and the Company relating
to such Option:

                    A. Stock Dividends and Stock Splits. If the shares of Common
          Stock shall be subdivided or combined into a greater or smaller number
          of shares or if the Company shall issue any shares of Common Stock as
          a stock dividend on its outstanding Common Stock, the number of shares
          of Common Stock deliverable upon the exercise of Options shall be
          appropriately increased or decreased proportionately, and appropriate
          adjustments shall be made in the purchase price per share to reflect
          such subdivision, combination or stock dividend.

                    B. Consolidations or Mergers. If the Company is to be
          consolidated with or acquired by another entity in a merger or other
          reorganization in which the holders of the outstanding voting stock of
          the Company immediately preceding the consummation of such event,
          shall, immediately following such event, hold, as a group, less than a
          majority of the voting securities of the surviving or successor
          entity, or in the event of a sale of all or substantially all of the
          Company's assets or otherwise (each, an "Acquisition"), the Committee
          or the board of directors of any entity assuming the obligations of
          the Company hereunder (the "Successor Board"), shall, as to
          outstanding Options, either (i) make appropriate provision for the
          continuation of such Options by substituting on an equitable basis for
          the shares then subject to such Options either (a) the consideration
          payable with respect to the outstanding shares of Common Stock in
          connection with the Acquisition, (b) shares of stock of the surviving
          or successor corporation or (c) such other securities as the Successor
          Board deems appropriate, the fair market value of which shall not
          materially exceed the fair market value of the shares of Common Stock
          subject to such Options immediately preceding the Acquisition; or (ii)
          upon written notice to the optionees, provide that all Options must be
          exercised, to the extent then exercisable or to be exercisable as a
          result of the Acquisition, within a specified number of days of the
          date of such notice, at the end of which period the Options shall
          terminate; or (iii) terminate all Options in exchange for a cash
          payment equal to the excess of the fair market value of the shares
          subject to such Options (to the extent then exercisable or to be
          exercisable as a result of the Acquisition) over the exercise price
          thereof.

                    C. Recapitalization or Reorganization. In the event of a
          recapitalization or reorganization of the Company (other than a
          transaction described in subparagraph B above) pursuant to which
          securities of the Company or of another corporation are issued with
          respect to the outstanding shares of Common Stock, an optionee upon
          exercising an Option shall be entitled to receive for the purchase
          price paid upon such exercise the securities he or she would have
          received if he or she had exercised such Option prior to such
          recapitalization or reorganization.

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                    D. Modification of ISOs. Notwithstanding the foregoing, any
          adjustments made pursuant to subparagraphs A, B or C with respect to
          ISOs shall be made only after the Committee, after consulting with
          counsel for the Company, determines whether such adjustments would
          constitute a "modification" of such ISOs (as that term is defined in
          Section 424 of the Code) or would cause any adverse tax consequences
          for the holders of such ISOs. If the Committee determines that such
          adjustments made with respect to ISOs would constitute a modification
          of such ISOs or would cause adverse tax consequences to the holders,
          it may refrain from making such adjustments.

                    E. Dissolution or Liquidation. In the event of the proposed
          dissolution or liquidation of the Company, each Option will terminate
          immediately prior to the consummation of such proposed action or at
          such other time and subject to such other conditions as shall be
          determined by the Committee.

                    F. Issuances of Securities. Except as expressly provided
          herein, no issuance by the Company of shares of stock of any class, or
          securities convertible into shares of stock of any class, shall
          affect, and no adjustment by reason thereof shall be made with respect
          to, the number or price of shares subject to Options. No adjustments
          shall be made for dividends paid in cash or in property other than
          securities of the Company.

                    G. Fractional Shares. No fractional shares shall be issued
          under the Plan and the optionee shall receive from the Company cash in
          lieu of such fractional shares.

                    H. Adjustments. Upon the happening of any of the events
          described in subparagraphs A, B or C above, the class and aggregate
          number of shares set forth in paragraph 4 hereof that are subject to
          Stock Rights which previously have been or subsequently may be granted
          under the Plan shall also be appropriately adjusted to reflect the
          events described in such subparagraphs. The Committee or the Successor
          Board shall determine the specific adjustments to be made under this
          paragraph 13 and, subject to paragraph 2, its determination shall be
          conclusive.

          14. Means of Exercising Options. An Option (or any part or installment
thereof) shall be exercised by giving written notice to the Company at its
principal office address, or to such transfer agent as the Company shall
designate. Such notice shall identify the Option being exercised and specify the
number of shares as to which such Option is being exercised, accompanied by full
payment of the purchase price therefor either (a) in United States dollars in
cash or by check, (b) at the discretion of the Committee, through delivery of
shares of Common Stock having a fair market value equal as of the date of the
exercise to the cash exercise price of the Option, (c) at the discretion of the
Committee, by delivery of the grantee's personal recourse note bearing interest
payable not less than annually at no less than 100% of the lowest applicable
Federal rate, as defined in Section 1274(d) of the Code, (d) at the discretion
of the Committee and consistent with applicable law, through the delivery of an
assignment to the Company of a sufficient amount of the proceeds from the sale
of the Common Stock acquired upon exercise of the Option and an authorization to
the broker or selling agent to pay that amount to the Company,

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which sale shall be at the participant's direction at the time of exercise, or
(e) at the discretion of the Committee, by any combination of (a), (b), (c) and
(d) above. If the Committee exercises its discretion to permit payment of the
exercise price of an ISO by means of the methods set forth in clauses (b), (c),
(d) or (e) of the preceding sentence, such discretion shall be exercised in
writing at the time of the grant of the ISO in question. The holder of an Option
shall not have the rights of a shareholder with respect to the shares covered by
such Option until the date of issuance of a stock certificate to such holder for
such shares. Except as expressly provided above in paragraph 13 with respect to
changes in capitalization and stock dividends, no adjustment shall be made for
dividends or similar rights for which the record date is before the date such
stock certificate is issued.

          15. Term and Amendment of Plan. This Plan was adopted by the Board on
January 27, 1998, subject, with respect to the validation of ISOs granted under
the Plan, to approval of the Plan by the stockholders of the Company at the next
Meeting of Stockholders or, in lieu thereof, by written consent. If the approval
of stockholders is not obtained prior to January 27, 1999, any grants of ISOs
under the Plan made prior to that date will be rescinded. The Plan shall expire
at the end of the day on January 26, 2008 (except as to Options outstanding on
that date). Subject to the provisions of paragraph 5 above, Options may be
granted under the Plan prior to the date of stockholder approval of the Plan.
The Board may terminate or amend the Plan in any respect at any time, except
that, without the approval of the stockholders obtained within 12 months before
or after the Board adopts a resolution authorizing any of the following actions:
(a) the total number of shares that may be issued under the Plan may not be
increased (except by adjustment pursuant to paragraph 13); (b) the provisions of
paragraph 3 regarding eligibility for grants of ISOs may not be modified; (c)
the provisions of paragraph 6(B) regarding the exercise price at which shares
may be offered pursuant to ISOs may not be modified (except by adjustment
pursuant to paragraph 13); and (d) the expiration date of the Plan may not be
extended. Except as otherwise provided in this paragraph 15, in no event may
action of the Board or stockholders alter or impair the rights of a grantee,
without such grantee's consent, under any Stock Right previously granted to such
grantee.

          16. Modifications of ISOs; Conversion of ISOs into Non-Qualified
Options. Subject to paragraph 13(D), without the prior written consent of the
holder of an ISO, the Committee shall not alter the terms of such ISO (including
the means of exercising such ISO) if such alteration would constitute a
modification (within the meaning of Section 424(h)(3) of the Code). The
Committee, at the written request or with the written consent of any optionee,
may in its discretion take such actions as may be necessary to convert such
optionee's ISOs (or any installments or portions of installments thereof) that
have not been exercised on the date of conversion into Non-Qualified Options at
any time prior to the expiration of such ISOs, regardless of whether the
optionee is an employee of the Company or a Related Corporation at the time of
such conversion. Such actions may include, but shall not be limited to,
extending the exercise period or reducing the exercise price of the appropriate
installments of such ISOs. At the time of such conversion, the Committee (with
the consent of the optionee) may impose such conditions on the exercise of the
resulting Non-Qualified Options as the Committee in its discretion may
determine, provided that such conditions shall not be inconsistent with this
Plan. Nothing in the Plan shall be deemed to give any optionee the right to have
such optionee's ISOs

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converted into Non-Qualified Options, and no such conversion shall occur until
and unless the Committee takes appropriate action. Upon the taking of such
action, the Company shall issue separate certificates to the optionee with
respect to Options that are Non-Qualified Options and Options that are ISOs.

          17. Application Of Funds. The proceeds received by the Company from
the sale of shares pursuant to Options granted and Purchases authorized under
the Plan shall be used for general corporate purposes.

          18. Notice to Company of Disqualifying Disposition. By accepting an
ISO granted under the Plan, each optionee agrees to notify the Company in
writing immediately after such optionee makes a Disqualifying Disposition (as
described in Sections 421, 422 and 424 of the Code and regulations thereunder)
of any stock acquired pursuant to the exercise of ISOs granted under the Plan. A
Disqualifying Disposition is generally any disposition occurring on or before
the later of (a) the date two years following the date the ISO was granted or
(b) the date one year following the date the ISO was exercised.

          19. Withholding of Additional Income Taxes. Upon the exercise of a
Non-Qualified Option, the transfer of a Non-Qualified Stock Option pursuant to
an arm's-length transaction, the grant of an Award, the making of a Purchase of
Common Stock for less than its fair market value, the making of a Disqualifying
Disposition (as defined in paragraph 18), the vesting or transfer of restricted
stock or securities acquired on the exercise of an Option hereunder, or the
making of a distribution or other payment with respect to such stock or
securities, the Company may withhold taxes in respect of amounts that constitute
compensation includible in gross income. The Committee in its discretion may
condition (i) the exercise of an Option, (ii) the transfer of a Non-Qualified
Stock Option, (iii) the grant of an Award, (iv) the making of a Purchase of
Common Stock for less than its fair market value, or (v) the vesting or
transferability of restricted stock or securities acquired by exercising an
Option, on the grantee's making satisfactory arrangement for such withholding.
Such arrangement may include payment by the grantee in cash or by check of the
amount of the withholding taxes or, at the discretion of the Committee, by the
grantee's delivery of previously held shares of Common Stock or the withholding
from the shares of Common Stock otherwise deliverable upon exercise of a Option
shares having an aggregate fair market value equal to the amount of such
withholding taxes.

          20. Governmental Regulation. The Company's obligation to sell and
deliver shares of the Common Stock under this Plan is subject to the approval of
any governmental authority required in connection with the authorization,
issuance or sale of such shares.

          Government regulations may impose reporting or other obligations on
the Company with respect to the Plan. For example, the Company may be required
to send tax information statements to employees and former employees that
exercise ISOs under the Plan, and the Company may be required to file tax
information returns reporting the income received by grantees of Options in
connection with the Plan.

                                       10

<PAGE>

         21. Governing Law. The validity and construction of the Plan and the
instruments evidencing Stock Rights shall be governed by the laws of the State
of Delaware, or the laws of any jurisdiction in which the Company or its
successors in interest may be organized.

                                       11<PAGE>

                                                                    Exhibit 10.3

                           RESTRICTED STOCK AGREEMENT

       This Restricted Stock Agreement dated January 2, 2002 is made by and
between Lionbridge Technologies, Inc., a Delaware corporation (hereinafter
referred to as the "Company"), and [NAME], an employee of the Company or a
subsidiary of the Company (hereinafter referred to as the "Employee"). This is
an Agreement between the Company and the Employee with respect to the grant of
shares of common stock of the Company with restrictions on disposition.

       WHEREAS, the Compensation Committee of the Company's Board of Directors
(the "Committee"), appointed to administer the Plan, has determined that it
would be to the advantage and best interest of the Company and its shareholders
to grant the Restricted Stock (as hereinafter defined) provided for herein to
the Employee as an inducement to remain in the service of the Company or its
Subsidiary, and as an incentive for increased efforts during such service, and
has advised the Company thereof and instructed the undersigned officers to issue
said Restricted Stock;

       NOW, THEREFORE, in consideration of the mutual covenants herein contained
and other good and valuable consideration, receipt of which is hereby
acknowledged, the parties hereto do hereby agree as follows:

                                    ARTICLE I

                            GRANT OF RESTRICTED STOCK

Section 1.1 - Grant of Restricted Stock

       In consideration of the Employee's agreement to remain in the employ of
the Company or its Subsidiary and for other good and valuable consideration, the
value of which exceeds the par value of the Restricted Stock, on the date hereof
the Company grants to the Employee [XXXX #] shares of its common stock $0.01 par
value (the "Restricted Stock"), upon the terms and conditions set forth in this
Agreement.

                                   ARTICLE II

                            TERMS OF RESTRICTED STOCK

Section 2.1 - Restrictions on Transfer

       The Employee may not sell, assign, transfer, pledge, hypothecate,
mortgage or otherwise dispose of, by gift or otherwise, or in any way encumber
all or any of the Restricted Stock until such time as the Restricted Stock
becomes vested pursuant to the provisions of this Agreement.

<PAGE>

Section 2.2 - Vesting of Restricted Stock

       Fifty percent (50%) of the shares granted hereunder shall vest on January
2, 2003 and the remaining 50% of the shares granted hereunder shall vest on
January 2, 2004.

Section 2.3 - Forfeiture of Restricted Stock

       Until the Restricted Stock is vested in accordance with Section 2.2 or
Section 2.6 of this Agreement, it will be forfeited to the Company immediately
upon a termination of employment for any reason.

Section 2.4 - Escrow

       The Secretary of the Company shall retain physical custody of the
certificates representing the Restricted Stock until all of the restrictions
imposed pursuant to this Agreement expire or shall have been removed.

Section 2.5 - Legend

       The certificates evidencing the Restricted Stock shall bear a legend
substantially as follows until all of the restrictions imposed pursuant to this
Agreement expire or have been removed:

          The shares represented by this certificate are subject to restrictions
          on transfer until January 2, 2004 and may not be sold, exchanged,
          transferred, pledged, hypothecated or otherwise disposed of except in
          accordance with and subject to all of the terms and conditions of a
          Restricted Stock Agreement dated as of January 2, 2002, a copy of
          which the Company shall furnish to the holder of this certificate upon
          request and without charge.

          The shares represented by this certificate have not been registered
          under the Securities Act of 1933, as amended. These shares may not be
          sold, exchanged, transferred, pledged, hypothecated or otherwise
          disposed of without an effective registration statement for such
          shares or an opinion of counsel that such registration is not required
          under the Act.

Section 2.6 - Change of Control

       In the event of an Acquisition of the Company (as such term is defined in
the Company's 1998 Stock Plan), all shares of restricted stock issued hereunder
shall become immediately vested, provided it has not been forfeited pursuant to
Section 2.3 hereof prior to the Acquisition.

                                       2

<PAGE>

                                   ARTICLE III

                                OTHER PROVISIONS

Section 3.1 - Notices

       Any notice to be given under the terms of this Agreement to the Company
shall be addressed to the Company in care of its Secretary, and any notice to be
given to the Employee shall be addressed to such Employee at the address given
beneath such Employee's signature hereto. By a notice given pursuant to this
Section 3.1, either party may hereafter designate a different address for
notices to be given to such party. Any notice which is required to be given to
the Employee shall, if the Employee is then deceased, be given to the Employee's
personal representative if such representative has previously informed the
Company of such representative's status and address by written notice under this
Section 3.1. Any notice shall be deemed duly given when enclosed in a properly
sealed envelope or wrapper addressed as aforesaid, deposited (with postage
prepaid) in a post office or branch post office regularly maintained by the
United States Postal Service.

Section 3.2 - I.R.S. Election

       The Employee hereby agrees to delivery to the Company a signed copy of
any documents such Employee may execute and file with the Internal Revenue
Service evidencing an election under Section 83(b) of the Internal Revenue Code
of 1954 as amended (the "Code"). The Employee shall delivery the copy of any
such document to the Company within five (5) days after the date on which any
such election is required to be made in accordance with the appropriate
provisions of the Code and applicable regulations thereunder.

                  [remainder of page intentionally left blank]

                                       3

<PAGE>

Section 3.3 - Construction

       This Agreement shall be administered, interpreted and enforced under the
laws of the Commonwealth of Massachusetts.

       IN WITNESS WHEREOF, this Agreement has been executed and delivered by the
parties hereto.

                                         LIONBRIDGE TECHNOLOGIES, INC.

                                         By:  _____________________________

                                              Margaret A. Shukur, Secretary

----------------------------------
[NAME]

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

----------------------------------
Address

----------------------------------
Employee's Taxpayer Identification Number

                                       4

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