Exhibit 10.2  


EQUALLOGIC, INC.
  Incentive Stock Option Agreement


        EqualLogic, Inc.,
a Delaware corporation (the "Company"), hereby grants as of [date] to  [name of employee] (the "Employee"), an option to purchase a maximum of shares (the
"Option Shares") of its Common Stock, $.01
par value ("Common Stock"), at the price of $[price] per share, on the following terms and conditions: 


        1.    Grant Under 2001 Stock Plan.    This option is granted pursuant
to and is governed by the Company's 2001 Stock 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. 


        2.    Grant as Incentive Stock Option; Other Options.    This option
is intended to qualify as an incentive stock option under Section 422 of the Internal Revenue Code of 1986, as amended (the "Code"). This option is in addition to any other options heretofore
or hereafter granted to the Employee 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.    



        (a)    Vesting of Option if Employment Continues.    If the Employee
has continued to be employed by the Company or any Related Corporation on the following dates, the Employee may exercise this option for the number of shares of Common Stock set opposite the
applicable date: 



	Vesting Period
 
	 	Percentage of Shares that

become Vested Shares

	Prior to the first anniversary of the date of this Agreement	 	0%
	On the first anniversary of the date of this Agreement	 	25%
	On the [insert date] day of each successive month thereafter	 	an additional 2.083%
	On or after the fourth anniversary of the date of this Agreement	 	100%






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 Employee ceases to be employed by the Company and all Related Corporations) may be exercised on or before
the date which is ten (10) years from the date this option is granted. 



        (b)    Vesting of Option Upon Acquisition.    Upon the consummation of
an Acquisition (as defined in Section 3(c)) that is not a Private Transaction (as defined in Section 3(d)) the vesting of this Agreement shall be accelerated by a period of one year such
that the Employee be credited with one year of additional service time of employment with the Company. 


        (c)    Definition of Acquisition.    "Acquisition" shall mean:
(x) any merger, consolidation or purchase of outstanding capital stock of the Company after which the voting securities of the Company outstanding immediately prior thereto represent (either by
remaining outstanding or by being converted into voting securities of the surviving or acquiring entity) less than 50% of the combined voting power of the voting securities of the Company or such
surviving or acquiring entity outstanding immediately after such event; or (y) any sale of all or substantially all of the assets of the Company (other than in a spin-off or similar
transaction). 


        (d)    Definition of Private Transaction.    "Private Transaction"
shall mean any Acquisition where the consideration received or retained by the holders of the then outstanding capital stock of the 








 




Company
does not consist of (i) cash or cash equivalent consideration, (ii) securities which are registered under the Securities Act of 1933, as amended, or any successor statute (the
"Securities Act") and/or (iii) securities for which the Company or any other issuer thereof has agreed to file a registration statement within ninety (90) days of completion of
the transaction for resale to the public pursuant to the Securities Act. 




        4.    Termination of Employment.    



        (a)    Termination Other Than for Cause.    If the Employee ceases to
be employed by the Company and all Related Corporations, other than by reason of death or disability as defined in Section 5 or termination for Cause as defined in Section 4(c), no
further installments of this option shall become exercisable, and this option may be exercised, to the extent otherwise exercisable on the last day of employment, for a period of three months from the
Employee's last day of employment, but in no event later than the scheduled expiration date. In such a case, the Employee's only rights hereunder shall be those which are properly exercised before the
termination of this option. For purposes hereof, employment shall not be considered as having terminated during any leave of absence if such leave of absence has been approved in writing by the
Company and if such written approval contractually obligates the Company to continue the employment of the Employee after the approved period of absence; in the event of such an approved leave of
absence, vesting of this option shall be suspended (and the period of the leave of absence shall be added to all vesting dates) unless otherwise provided in the Company's written approval of the leave
of absence. 


        (b)    Termination for Cause.    If the employment of the Employee is
terminated for Cause (as defined in Section 4(c)), this option shall terminate upon the Employee's receipt of written notice of such termination and shall thereafter not be exercisable to any
extent whatsoever. 


        (c)    Definition of Cause.    "Cause" shall mean conduct involving
one or more of the following: (i) the substantial and continuing failure of the Employee, after notice thereof, to render services to the Company or Related Corporation in accordance with the
terms or requirements of his or her employment; (ii) disloyalty, gross negligence, willful misconduct, dishonesty or breach of fiduciary duty to the Company or Related Corporation;
(iii) the commission of an act of embezzlement or fraud; (iv) deliberate disregard of the rules or policies of the Company or Related Corporation which results in direct or indirect
loss, damage or injury to the Company or Related Corporation; (v) the unauthorized disclosure of any trade secret or confidential information of the Company or Related Corporation; or
(vi) the commission of an act which constitutes unfair competition with the Company or Related Corporation or which induces any customer or supplier to breach a contract with the Company or
Related Corporation. 




        5.    Death; Disability.    



        (a)    Death.    If the Employee dies while in the employ of the
Company or any Related Corporation, this option may be exercised, to the extent otherwise exercisable on the date of his or her death, by the Employee'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. 


        (b)    Disability.    If the Employee ceases to be employed by the
Company and all Related Corporations 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 of the termination of
his or her employment, at any time within 180 days after such termination, but not later than the scheduled expiration date. 


        (c)    Effect of Termination.    At the expiration of the
180 day period provided in paragraphs (a) or (b) of this Section 5 or the scheduled expiration date, whichever is the earlier, this option 



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shall
terminate (and shall no longer be exercisable) and the only rights hereunder shall be those as to which the option was properly exercised before such termination. 




        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 umless 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 13G of the Plan, to permit the Employee 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 Employee in accordance with the terms hereof. 


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




	(i)
	in
cash or by check;



	(ii)
	subject
to Section 7(b) below, if the Common Stock is then traded on a national securities exchange or on the Nasdaq National Market (or successor trading system), by delivery
of shares of the Company's Common Stock having a fair market value equal as of the date of exercise to the option price;



	(iii)
	if
the Common Stock is then traded on a national securities exchange or on the Nasdaq National Market (or successor trading system), by delivery of an unconditional undertaking,
satisfactory in form and substance to the Company, by a creditworthy broker to deliver promptly to the Company sufficient funds to pay the exercise price, or delivery by the Employee to the Company a
copy of irrevocable and unconditional instructions, satisfactory in form and substance to the Company, to a creditworthy broker to deliver promptly to the Company cash or check sufficient to pay the
exercise price; or



	(iv)
	by
any combination of the foregoing. 





        In
the case of (iii) above, fair market value as of the date of exercise shall be determined as of the last business day for which such prices or quotes are available prior to the
date of exercise and shall mean (i) the last reported sale price (on that date) 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 (or successor trading
system), if the Common Stock is not then traded on a national securities exchange. 


        (b)    Limitations on Payment by Delivery of Common Stock.    If
Section 7(a)(ii) is applicable, and if the Employee delivers Common Stock held by the Employee ("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 Employee 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 Employee 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 Employee 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 Employee free
of any substantial risk of forfeiture for at least six months. 




        8.    Restrictions on Resale; Legend.    



        (a)   Option
Shares may not be transferred without the Company's written consent except by will, by the laws of descent and distribution or in accordance with the provisions
of Sections 17, if applicable. Until registered under the Securities Act of 1933, the Option Shares will be of an illiquid nature and will be deemed to be "restricted securities" for purposes of the
Securities Act. 



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Accordingly,
such shares must be sold in compliance with the registration requirements of the Securities Act or an exemption therefrom. Unless the Option Shares have been registered under the
Securities Act, each certificate evidencing any of the Option Shares shall bear a legend substantially as follows: 




"The
shares represented by this certificate are subject to restrictions on transfer and may not be sold, exchanged, transferred, pledged, hypothecated or otherwise disposed of except in accordance
with and subject to all the terms and conditions of a certain Incentive Stock Option Agreement dated as of [date], a copy of
which the Company will furnish to the holder of this certificate upon request and without charge." 






        9.    Method of Exercising Option.    Subject to the terms and
conditions of this Agreement, this option may be exercised by written notice to the Company at its principal executive office, or to such transfer agent as the Company shall designate. Such notice
shall state the election to exercise this option and the number of Option Shares for which it is being exercised and shall be signed by the person or persons so exercising this option. Such notice
shall be accompanied by payment of the full purchase price of such shares, and the Company shall deliver a certificate or certificates representing such shares as soon as practicable after the notice
shall be received. Such certificate or certificates shall be registered in the name of the person or persons so exercising this option (or, if this option shall be exercised by the Employee and if the
Employee shall so request in the notice exercising this option, shall be registered in the name of the Employee and another person jointly, with right of survivorship). In the event this option shall
be exercised, pursuant to Section 5 hereof, by any person or persons other than the Employee, such notice shall be accompanied by appropriate proof of the right of such person or persons to
exercise this option. 


        10.    Option Not Transferable.    This option is not transferable or
assignable except by will or by the laws of descent and distribution. During the Employee's lifetime only the Employee can exercise this option. 


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


        12.    No Obligation to Continue Employment.    Neither the Plan, this
Agreement, nor the grant of this option imposes any obligation on the Company or any Related Corporation to continue the Employee in employment. 



        13.    No Rights as Stockholder until Exercise.    The Employee shall
have no rights as a stockholder with respect to the Option Shares until such time as the Employee has exercised this option by delivering a notice of exercise and has paid in full the purchase price
for the shares 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. 



        14.    Capital Changes and Business Successions.    The Plan contains
provisions covering the treatment of options in a number of contingencies such as stock splits and mergers. 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. 


        15.    Early Disposition.    The Employee agrees to notify the Company
in writing immediately after the Employee transfers any Option Shares, if such transfer occurs on or before the later of (a) the date two years after the date of this Agreement or
(b) the date one year after the date the Employee acquired such Option Shares. The Employee also agrees to provide the Company with any information concerning any such transfer required by the
Company for tax purposes. 


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        16.    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 Employee hereby agrees that the Company or any Related Corporation may withhold from the Employee'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 Employee on exercise of this option. The Employee further agrees that, if the Company or any Related Corporation does not withhold an amount
from the Employee's wages or other remuneration sufficient to satisfy the withholding obligation of the Company or Related Corporation, the Employee will make reimbursement on demand, in cash, for the
amount underwithheld. 


        17.    Company's Right of First Refusal.    



        (a)    Exercise of Right.    If the Employee desires to transfer all
or any part of the Option Shares to any person other than the Company (an "Offeror"), the Employee shall: (i) obtain in writing an irrevocable and unconditional bona fide offer (the "Offer")
for the purchase thereof from the Offeror; and (ii) give written notice (the "Option Notice") to the Company setting forth the Employee's desire to transfer
such shares, which Option Notice shall be accompanied by a photocopy of the Offer and shall set forth at least the name and address of the Offeror and the price and terms of the Offer. Upon receipt of
the Option Notice, the Company shall have an assignable option to purchase any or all of such Option Shares (the "Company Option Shares") specified in the Option Notice, such option to be exercisable
by giving, within 30 days after receipt of the Option Notice, a written counter-notice to the Employee. If the Company elects to purchase any or all of such Company Option Shares, it shall be
obligated to purchase, and the Employee shall be obligated to sell to the Company, such Company Option Shares at the price and terms indicated in the Offer within 30 days from the date of
delivery by the Company of such counter-notice. 


        (b)    Sale of Option Shares to Offeror.    The Employee may, for
60 days after the expiration of the 30-day option period as set forth in Section 17(a), sell to the Offeror, pursuant to the terms of the Offer, any or all of such Company
Option Shares not purchased or agreed to be purchased by the Company or its assignee; provided, however, that the Employee shall not sell such Company
Option Shares to such Offeror if such Offeror is a competitor of the Company and the Company gives written notice to the Employee, within 30 days of its receipt of the Option Notice, stating
that the Employee shall not sell his or her Company Option Shares to such Offeror; and provided, further, that prior to the sale of such Option Shares
to an Offeror, such Offeror shall execute an agreement with the Company pursuant to which such Offeror agrees to be subject to the restrictions set forth in this Section 17. If any or all of
such Company Option Shares are not sold pursuant to an Offer within the time permitted above, the unsold Company Option Shares shall remain subject to the terms of this Section 17. 



        (c)    Adjustments for Changes in Capital Structure.    If there shall
be any change in the Common Stock of the Company through merger, consolidation, reorganization, recapitalization, stock dividend, stock split, combination or exchange of shares, or the like, the
restrictions contained in Section 8 and this Section 17 shall apply with equal force to additional and/or substitute securities, if any, received by the Employee in exchange for, or by
virtue of his or her ownership of, Option Shares, except as otherwise determined by the Board of Directors of the Company. 



        (d)    Failure to Deliver Option Shares.    If the Employee fails or
refuses to deliver on a timely basis duly endorsed certificates representing Company Option Shares to be sold to the Company 



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or
its assignee pursuant to this Section 17, the Company shall have the right to deposit the purchase price for such Company Option Shares in a special account with any bank or trust company,
giving notice of such deposit to the Employee, whereupon such Company Option Shares shall be deemed to have been purchased by the Company. All such monies shall be held by the bank or trust company
for the benefit of the Employee. All monies deposited with the bank or trust company but remaining unclaimed for two years after the date of deposit shall be repaid by the bank or trust company to the
Company on demand, and the Employee shall thereafter look only to the Company for payment. 


        (e)    Expiration of Company's Right of First Refusal and Transfer
Restrictions.    The first refusal rights of the Company and the transfer restrictions set forth above shall expire as to the Option Shares on the earlier to occur of
(i) the tenth anniversary of the date of this Agreement, or (ii) immediately prior to the closing of a public offering of the Company's Common Stock pursuant to an effective registration
statement filed under the Securities Act. 




        18.    Lock-up Agreement.    The Employee agrees that in
connection with an underwritten public offering of Common Stock, upon the request of the Company or the principal underwriter managing such public offering, the Option Shares may not be sold, offered
for sale or otherwise disposed of without the prior written consent of the Company or such underwriter, as the case may be, for at least 180 days after the effectiveness of the registration
statement filed in connection with such offering, or such longer period of time as the Board of Directors may determine if all of the Company's directors and officers agree to be similarly bound. The
obligations under this Section 18 shall remain effective for all underwritten public offerings with respect to which the Company has filed a registration statement on or before the date five
(5) years after the closing of the Company's initial public offering, provided, however, that this Section 18 shall cease to apply to any Option Share sold to the public pursuant to an
effective registration statement or an exemption from the registration requirements of the Securities Act in a transaction that complied with the terms of this Agreement. 



        19.    Arbitration.    Any dispute, controversy, or claim arising out
of, in connection with, or relating to the performance of this Agreement or its termination shall be settled by arbitration in the State of Hampshire, pursuant to the rules then obtaining of the
American Arbitration Association. Any award shall be final, binding and conclusive upon the parties and a judgment rendered thereon may be entered in any court having jurisdiction thereof. 



        20.    Provision of Documentation to Employee.    By signing this
Agreement the Employee acknowledges receipt of a copy of this Agreement and a copy of the plan. 


        21.    Miscellaneous.    



        (a)    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. 


        (b)    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. 



        (c)    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. 



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        (d)    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. 


        (e)    Governing Law.    This Agreement shall be governed by and
interpreted in accordance with the laws of the State of New Hampshire, without giving effect to the principles of the conflicts of laws thereof. 



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



	 	 	EQUALLOGIC, INC.

17 Purgatory Road

Mont Vernon, NH 03057
	

 Employee	
 	

 	

 
	

 Print Name of Employee	
 	

By:	

 Name
	

 Street Address	
 	

 President
	

 City        State        Zip Code	
 	

 	

 




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