<PAGE>   1

EXHIBIT 10.2

                                  VITALCOM INC.

                             1993 STOCK OPTION PLAN
                        (AMENDED AND RESTATED APRIL 1997)

I.                Purposes of the Plan.
                  ---------------------

                  The purposes of this 1993 Stock Option Plan (the "Plan") of
VITALCOM INC., a Delaware corporation (the "Company"), are (a) to insure the
retention of the services of existing executive personnel, key employees and
directors of the Company and its subsidiaries or its affiliates; (b) to attract
and retain competent new executive personnel and key employees; and (c) to
provide incentive to all such personnel and employees to devote their utmost
effort and skill to the advancement and betterment of the Company, by permitting
them to participate in the ownership of the Company and thereby in the success
and increased value of the Company.

II.               Shares Subject to the Plan.
                  ---------------------------

                  The shares of stock subject to the incentive options having
the terms and conditions set forth in Section 6 below (hereinafter "incentive
options") and/or nonqualified options having the terms and conditions set forth
in Section 7 below (hereinafter "nonqualified options") and other provisions of
the Plan shall be shares of the Company's authorized but unissued or reacquired
Common Stock (herein sometimes referred to as the "Common Stock"). The total
number of shares of the Common Stock of the Company which may be issued under
the Plan shall not exceed, in the aggregate, 839,885 shares. The limitations
established by the preceding sentence shall be subject to adjustment as provided
in Section 8 below. In the event that any outstanding incentive option or
nonqualified option granted under the Plan can no longer under any circumstances
be exercised, for any reason, the shares of Common Stock allocable to the
unexercised portion of such incentive option or nonqualified option may again be
subject to grant or issuance under the Plan.

III.              Eligibility.
                  ------------

                   a. Incentive Options. Officers and other key employees of the
Company or of any subsidiary corporation (including directors if they are also
employees of the Company or a subsidiary), as may be determined by the Board or
the Committee, who qualify for incentive stock options under the applicable
provisions of the Internal Revenue Code, will be eligible for selection to
receive incentive stock options under the Plan. An employee who has been granted
an incentive option may, if otherwise eligible, be granted a nonqualified option
or options or an additional incentive option or options if the Board or
Committee shall so determine.





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                   b. Nonqualified Options. Officers, other key employees of the
Company or of any subsidiary corporation, directors and consultants to the
Company or any subsidiary corporation will be eligible to receive nonqualified
options under the Plan. An individual who has been granted a nonqualified option
may, if otherwise eligible, be granted an incentive option or options or an
additional nonqualified option or options if the Board or Committee shall so
determine.

                   c. Limitations. The following limitations shall apply to
grants of options to employees of the Company:

                      (i) No employee of the Company shall be granted, in any
fiscal year of the Company, options to purchase more than 400,000 shares of
Common Stock of the Company.

                      (ii) In connection with his or her initial employment, an
employee of the Company may be granted options to purchase up to an additional
400,000 shares of Common Stock of the Company which shall not count against the
limit set forth in subsection i. above.

                      (iii) The foregoing limitations shall be adjusted
proportionately in connection with any change in the Company's capitalization as
described in Section 8.

                      (iv) If an option is canceled in the same fiscal year of
the Company in which it was granted (other than in connection with a transaction
described in Section 8), the canceled option will be counted against the limits
set forth in subsections i. and ii. above. For this purpose, if the exercise
price of an option is reduced, the transaction will be treated as a cancellation
of the option and the grant of a new option.

IV.                        Administration of the Plan.
                           ---------------------------

                           a. This Plan shall be administered by a committee
(the "Committee") of "non-employee directors" within the meaning of Rule 16b-3
of the Securities Exchange Act of 1934, as amended. Such Committee shall be
appointed by, and serve at the pleasure of, the Board of Directors.

                           b. The Committee shall have full and final authority
to determine the persons to whom, and the time or times at which, incentive
options or nonqualified options shall be granted, the number of shares to be
represented by each incentive option and nonqualified option and the
consideration to be received by the Company upon the exercise thereof; to
interpret the Plan; to establish, amend and rescind rules and regulations
relating to the Plan; to determine the form and content of the incentive options
or nonqualified options to be granted under the Plan; to determine the identity
or capacity of any persons who may be entitled to exercise a participant's
rights under any incentive option or nonqualified option under the Plan; to
correct any defect or supply any omission or reconcile any inconsistency in the
Plan or in any incentive option or nonqualified option in the manner and to the
extent the Board or Committee deems desirable to carry the Plan, incentive
option or nonqualified option into effect; to





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accelerate the exercise date of any incentive option or nonqualified option; to
provide for an option to the Company to repurchase any shares issued upon
exercise of an option upon termination of employment; and to make all other
determinations necessary or advisable for the administration of the Plan, but
only to the extent not contrary to the express provisions of the Plan. Any
action, decision, interpretation or determination by the Committee with respect
to the application or administration of the Plan shall be final and binding on
all participants and prospective participants.

V.                         Option Price of Shares.
                           -----------------------

                           a. Incentive Options. The exercise price of the
shares of Common Stock covered by each incentive option granted under the Plan
shall not be less than the fair market value of such shares on the date the
incentive option is granted; provided, however, that the exercise price shall
not be less than 110% of the fair market value if the person to whom such
options are granted owns 10% or more of the total combined voting power of all
classes of stock of the Company or of its parent or subsidiary corporation.

                           b. Nonqualified Options. The exercise price of the
shares of Common Stock covered by each nonqualified option granted under the
Plan shall not be less than the fair market value of such shares on the date the
nonqualified option is granted.

                           c. Fair Market Value. For purposes of this Section 5,
fair market value shall, if the Common Stock is not listed or admitted to
trading on a stock exchange or The Nasdaq National Market on the
over-the-counter market, be the average of the closing bid price and asked price
of the Common Stock in the over-the-counter market on the date the incentive
option or nonqualified option is granted or, if the Common Stock is then listed
or admitted to trading on any stock exchange or The Nasdaq National Market, the
closing sale price on such day on the principal stock exchange on which the
Common Stock is then listed or admitted to trading or The Nasdaq National
Market, as the case may be. If no closing bid and asked prices are quoted on
such day, or if no sale takes place on such day on such principal exchange or on
The Nasdaq National Market, then the average of the closing bid and asked prices
on the next preceding day on which such prices were quoted, or closing sale
price of the Common Stock on such principal exchange or The Nasdaq National
Market on the next preceding day on which a sale occurred, as the case may be,
shall be deemed to be the fair market value of the Common Stock. During such
times as there is not a market price available, the fair market value of the
Company's Common Stock shall be determined by the Committee, which shall
consider, among other facts which it considers to be relevant, the book value of
such stock and the earnings of the Company. The exercise price shall be subject
to adjustment as provided in Section 8 below.

VI.                        Terms and Conditions of Incentive Options.
                           ------------------------------------------

                  Each incentive option granted pursuant to this Plan shall be
evidenced by a written Option Agreement which shall specify that the options
subject thereto are incentive options within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended. The granting of an incentive option
shall take place at the time of Committee action granting the option. The Option






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Agreement shall be in such form as the Committee shall, from time to time,
recommend, but shall comply with and be subject to the following terms and
conditions:

                           a. Medium and Time of Payment. The exercise price of
an incentive option shall be payable (i) in United States dollars payable in
cash, certified check, or bank draft; (ii) subject to any legal restrictions on
the acquisition or purchase of its shares by the Company, by the delivery of
shares of Common Stock which (x) in the case of shares acquired upon exercise of
an option have been owned by the optionee for more than six (6) months on the
date of surrender and (y) have an aggregate fair market value on the date of
surrender equal to the aggregate exercise price of the shares as to which the
option is being exercised; (iii) in the discretion of the Committee, by the
issuance of a promissory note in a form acceptable to the Committee; (iv)
delivery of a properly executed exercise notice together with such other
documentation as the Committee and broker, if applicable, shall require to
effect an exercise of the option and delivery to the Company of the sale or loan
proceeds required to pay the exercise price; or (v) any combination of (i),
(ii), (iii) or (iv) above.

                           b. Number of Shares. The incentive option shall state
the total number of shares to which it pertains.

                           c. Term of Incentive Option. Each incentive option
granted under the Plan shall expire within a period of not more than ten (10)
years from the date the incentive option is granted; provided, however, that the
incentive option shall expire within a period of not more than five (5) years if
granted to a person who owns more than 10% of the combined voting power of all
classes of stock of the Company or of its parent or subsidiary corporation.

                           d. Date of Exercise. Each incentive stock option
granted pursuant to this Plan shall become exercisable on each successive
anniversary of the grant date of such options in increments of twenty five
percent (25%); provided, however, that in the discretion of the Committee,
individual Option Agreements may contain different exercise schedules.

                           e. Termination of Association Except Upon Death or
Disability. In the event of an optionee's termination of association with the
Company (as hereinafter defined) for any reason other than his death or
disability, (i) all incentive options granted to any such optionee pursuant to
this Plan which are not exercisable at the date of such termination of
association shall terminate immediately and become void and of no effect, and
(ii) all incentive options granted to any such optionee pursuant to this Plan
which are exercisable at the date of such termination of association may be
exercised (but only to the extent such options were exercisable as of the date
of such termination of association) at any time within three (3) months of the
date of such termination of association, but in any event no later than the date
of expiration of the incentive option period, and if not so exercised within
such time shall become void and of no effect at the end of such time. For
purposes of this Plan, the term "termination of association" with the Company
shall mean (i) for any person who is an employee of the Company or a subsidiary
of the Company but not also a director of the Company, the cessation of such
person's employment with the Company or a subsidiary of the Company, or any
corporation or a parent or subsidiary of a corporation issuing and assuming an
option in a transaction to which Section 424(a) of the Internal 





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Revenue Code applies (collectively, an "Affiliate"), (ii) for any person who is
both a director of the Company and an employee of the Company or a subsidiary or
Affiliate of the Company, the cessation of both the employment and status as a
director of such person, and (iii) for any person who is a director of the
Company but not also an employee of the Company or a subsidiary of the Company,
the cessation of such person's status as a director of the Company.

                           f. Death or Disability of Optionee. In the event of
an optionee's termination of association with the Company by reason of his or
her death or disability, (i) all incentive options granted to such person
pursuant to this Plan which are not exercisable at the date of such termination
of association shall terminate immediately and become void and of no effect, and
(ii) all incentive options granted to such person pursuant to this Plan which
are exercisable at the date of such termination of association may be exercised
(but only to the extent they were exercisable as of the date of such termination
of association) at any time within one (1) year after the optionee's termination
of association as a result of such death or disability, but in any event no
later than the date of expiration of the incentive option period, by such
optionee, or in the event of death, by the executors or administrators of the
optionee's estate or by any person or persons who shall have acquired the
incentive option directly from the optionee by bequest or inheritance. At the
end of such one (1) year period, all incentive options held by such optionee, to
the extent they remain unexercised, shall terminate and become void and of no
effect.

                           g. Rights as a Stockholder. An optionee or a
transferee of an incentive option shall have no rights as a stockholder with
respect to any shares of Common Stock covered by his or her incentive option
until the date of the issuance of a share certificate to him or her for such
shares. No adjustment shall be made for dividends or distributions or other
rights for which the record date is prior to the date such share certificate is
issued.

                           h. Nonassignability of Rights. No incentive option
shall be assignable or transferable by the person receiving same except by will
or the laws of descent and distribution. During the life of such person, the
incentive option shall be exercisable only by him or her.

                           i. Limitation. Notwithstanding any other provisions
of the Plan, to the extent the aggregate fair market value (determined in
accordance with the provisions of Section 5 above as of the time the incentive
option is granted) of the shares of Common Stock with respect to which incentive
stock options are exercisable for the first time by the optionee during any
calendar year (under all such plans of the Company and any parent and subsidiary
corporations) exceeds $100,000, such excess shall be treated as nonqualified
options.

                           j. Notice of Disposition. Each Option Agreement which
relates to the grant of an incentive stock option shall provide that the
optionee shall give prompt written notice to the Company in the event the
optionee sells or otherwise disposes of any shares of Common Stock issued upon
the exercise of such incentive stock options.

                           k. Other Provisions. Any Option Agreement may contain
such other terms, provisions and conditions as may be determined by the
Committee, which are not inconsistent with the provisions of Section 422 of the
Internal Revenue Code of 1986, as amended, including the 





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option of the Company to repurchase any shares issued upon the exercise of an
option upon termination of employment. Incentive options granted to different
persons, or to the same person at different times, may be subject to terms,
conditions and restrictions which differ from each other.

VII.                       Terms and Conditions of Nonqualified Options.
                           ---------------------------------------------

                  Each nonqualified option granted pursuant to this Plan shall
be evidenced by a written Option Agreement which shall specify that the options
subject thereto are nonqualified options. The granting of a nonqualified option
shall take place at the time of Committee action granting such option. The
Option Agreement shall be in such form as the Committee shall, from time to
time, recommend, but shall comply with and be subject to the following terms and
conditions:

                           a. Medium and Time of Payment. The nonqualified
option price shall be payable (i) in United States dollars payable in cash,
certified check, or bank draft; (ii) subject to any legal restrictions on the
acquisition or purchase of its shares by the Company, by the delivery of shares
of Common Stock which (x) in the case of shares acquired upon exercise of an
option have been owned by the optionee for more than six (6) months on the date
of surrender and (y) have an aggregate fair market value on the date of
surrender equal to the aggregate exercise price of the shares as to which the
option is being exercised; (iii) in the discretion of the Committee, by the
issuance of promissory note in a form acceptable to the Committee; (iv) delivery
of a properly executed exercise notice together with such other documentation as
the Committee and broker, if applicable, shall require to effect an exercise of
the option and delivery to the Company of the sale or loan proceeds required to
pay the exercise price; or (v) any combination of (i), (ii), (iii) or (iv)
above.

                           b. Number of Shares. The nonqualified option shall
state the total number of shares to which it pertains.

                           c. Term of Nonqualified Option. Each nonqualified
option granted under the Plan shall expire within a period of not more than ten
(10) years from the date the nonqualified option is granted.

                           d. Date of Exercise. Each nonqualified option granted
pursuant to this Plan shall become exercisable on each successive anniversary of
the grant date of such options in increments of twenty five percent (25%);
provided, however, that in the Committee's absolute discretion, individual
Option Agreements may contain different exercise schedules.

                           e. Termination of Association Except Upon Death or
Disability. In the event of an optionee's termination of association with the
Company or any subsidiary or Affiliate of the Company, for any reason other than
his or her death or disability, (i) all nonqualified options granted to any such
optionee pursuant to this Plan which are not exercisable at the date of such
termination of association shall terminate immediately and become void and of no
effect, and (ii) all nonqualified options granted to any such optionee pursuant
to this Plan which are exercisable at the date of such termination of
association may be exercised (but only to the extent they were exercisable as of
the date of the termination of association) at any time within three (3) months
of the date of such termination of association, but in any event no later than
the date of expiration of the 




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nonqualified option period, and if not so exercised within such time shall
become void and of no effect at the end of such time.

                           f. Death or Disability of Optionee. In the event of
an optionee's termination of association with the Company by reason of his or
her death or disability, (i) all nonqualified options granted to such optionee
pursuant to this Plan which are not exercisable at the date of such termination
of association shall terminate immediately and become void and of no effect, and
(ii) all nonqualified options granted to such optionee pursuant to this Plan
which are exercisable at the date of such termination of association may be
exercised (but only to the extent they were exercisable as of the date of the
termination of association) at any time within one (1) year after the optionee's
death or disability, but in any event no later than the date of expiration of
the nonqualified option period, by such optionee, or in the event of death, by
the executors or administrators of the optionee's estate or by any person or
persons who shall have acquired the nonqualified option directly from the
optionee by bequest or inheritance. At the end of such one (1) year period, all
nonqualified options held by such optionee, to the extent they remain
unexercised, shall terminate and become void and of no effect.

                           g. Rights as a Stockholder. An optionee or an offeree
or a transferee of a nonqualified option shall have no rights as a stockholder
with respect to any shares of Common Stock covered by his or her nonqualified
option until the date of the issuance of a share certificate to such optionee
for such shares. No adjustment shall be made for dividends or distributions or
other rights for which the record date is prior to the date such share
certificate is issued.

                           h. Nonassignability of Rights. Except as provided by
the Committee, no nonqualified option shall be assignable or transferable by the
person receiving same except by will or the laws of descent and distribution.
During the life of such person, the nonqualified option shall be exercisable
only by him or her.

                           i. Other Provisions. Any Option Agreement may contain
such other terms, provisions and conditions as may be determined by the
Committee. Nonqualified options granted to different persons, or to the same
person at different times, may be subject to terms, conditions and restrictions
which differ from each other.

VIII.                      Changes in Capital Structure.
                           -----------------------------

                  In the event that the outstanding shares of Common Stock of
the Company are hereafter increased or decreased or changed into or exchanged
for a different number or kind of shares or other securities of the Company by
reason of merger, consolidation or reorganization in which the Company is the
surviving corporation or of a recapitalization, stock split, combination of
shares, reclassification, reincorporation, stock dividend (in excess of 2%), or
other change in the corporate structure of the Company, appropriate adjustments
shall be made by the Board of Directors in the aggregate number and kind of
shares subject to this Plan, and the number and kind of shares and the price per
share subject to outstanding incentive options and nonqualified options in order
to preserve, but not to increase, the benefits to persons then holding incentive
options and/or nonqualified options.






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                  In the event that the Company at any time proposes to (i)
merge into, consolidate with or to enter into any other reorganization
(including the sale of substantially all of its assets) in which the Company is
not the surviving corporation, or (ii) enter into a merger or other
reorganization as a result of which the outstanding shares of Common Stock of
the Company will be changed into or exchanged for shares of the capital stock or
other securities of another corporation or for cash or property, then the Plan
and all unexercised incentive options and nonqualified options granted hereunder
shall terminate, unless provision is made in writing in connection with such
transaction for the assumption of incentive options and nonqualified options
theretofore granted, or the substitution for such incentive options and
nonqualified options of new options covering shares of a successor corporation,
with appropriate adjustments as to number and kind of shares and prices, in
which event the Plan and the incentive options and nonqualified options
theretofore granted, or the new incentive options and nonqualified options
substituted therefor, shall continue in the manner and under the terms so
provided. If such provision is not made in such transaction for the continuance
of the Plan and the assumption of incentive options and nonqualified options
theretofore granted or the substitution for such incentive options and
nonqualified options of new incentive options and nonqualified options covering
the shares of a successor corporation, then the Committee shall cause written
notice of the proposed transaction to be given to the persons holding incentive
options or nonqualified options not less than thirty (30) days prior to the
anticipated effective date of the proposed transaction, and all incentive
options and nonqualified options shall be accelerated and, concurrent with the
effective date of the proposed transaction, such person shall have the right to
exercise incentive options and nonqualified options in respect of any or all
shares then subject thereto.

IX.                        Amendment and Termination of the Plan.
                           --------------------------------------

                  The Board of Directors of the Company may from time to time
alter, amend, suspend or terminate the Plan in such respects as the Board of
Directors may deem advisable; provided, however, that no such alteration,
amendment, suspension or termination shall be made which shall substantially
affect or impair the rights of any person under any incentive option or
nonqualified option theretofore granted to such person without his or her
consent; provided further, however, that the approval of the Company's
stockholders shall be obtained to the extent necessary and desirable to comply
with applicable law.

                  Unless the Plan shall theretofore have been terminated, the
Plan shall be effective on September 22, 1993, and shall terminate on September
21, 2003.

X.                         Application of Funds.
                           ---------------------

                  The proceeds received by the Company from the sale of Common
Stock pursuant to incentive options and nonqualified options will be used for
general corporate purposes.




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XI.                        No Obligation to Exercise Option.
                           ---------------------------------

                  The granting of an incentive option or nonqualified option
shall impose no obligation upon the optionee to exercise such incentive option
or nonqualified option.

XII.                       Continuance of Employment or Status as Director.
                           ------------------------------------------------

                  The Plan or the granting of any incentive option or
nonqualified option thereunder shall not impose any obligation on the Company or
its stockholders to continue the employment of any optionee who is an employee,
or to retain as a director any optionee who is a director.

XIII.                      Tax Withholding.
                           ----------------

                  Whenever shares are to be issued under the Plan, the Company
or any subsidiary of the Company employing the recipient shall have the right to
deduct from the recipient's compensation or require the recipient to remit to
the employer corporation, prior to the issuance of the shares, an amount
sufficient to satisfy federal, state and local withholding tax requirements. The
Committee shall have the discretion to allow an optionee to satisfy tax
withholding obligations by electing to have the Company withhold from the shares
to be issued upon exercise of an Option that number of shares having a fair
market value equal to the amount required to be withheld. The fair market value
of the shares to be withheld shall be determined on the date that the amount of
tax to be withheld is determined.

XIV.                       Stockholder Approval.
                           ---------------------

                  This Plan must be approved by the Company's stockholders
within twelve (12) months following its approval by the Board of Directors of
the Company. Any stock option exercised before stockholder approval is obtained
must be rescinded if stockholder approval is not obtained within twelve (12)
months following approval of the Plan by the Board of Directors.

XV.                        General Provisions.
                           -------------------

                  Notwithstanding any other provision of this Plan or agreements
made pursuant thereto, the Company shall not be required to issue or deliver any
certificate or certificates for shares of stock upon the exercise of options
granted under this Plan prior to fulfillment of all of the following conditions:

                           (i) Any registration or other qualification of such
shares under any state or federal law or regulation, or the maintaining in
effect of any such registration or other qualification which the Committee
shall, in its absolute discretion, deem necessary or advisable;

                           (ii) The obtaining of any other consent, approval or
permit from any state or federal governmental agency which the Committee shall,
in its absolute discretion, determine to be necessary or advisable; and 





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<PAGE>   10

                           (iii) The execution and delivery to the Company by
the recipient of an investment representation letter containing such assurances
and/or representations as the Committee shall, in its absolute discretion,
determine to be necessary or advisable to satisfy the requirements for
exemptions from registration and qualification under applicable state and
federal securities laws.




                                    EXHIBIT A
                                    ---------

                             1993 STOCK OPTION PLAN

                                 EXERCISE NOTICE


VitalCom Inc.
15222 Del Amo Avenue
Tustin, CA  92680

Attention:  Secretary

         1. Exercise of Option. Effective as of today,                 , 199  ,
the undersigned ("Purchaser") hereby elects to purchase                shares
(the "Shares") of the Common Stock of VitalCom Inc. (the "Company") under and
pursuant to the 1993 Stock Option Plan (the "Plan") and the Stock Option
Agreement dated            , 19    (the "Option Agreement"). The purchase price 
for the Shares shall be $          , as  required by the Option Agreement.

         2. Delivery of Payment. Purchaser herewith delivers to the Company the
full purchase price for the Shares.

         3. Representations of Purchaser. Purchaser acknowledges that Purchaser
has received, read and understood the Plan and the Option Agreement and agrees
to abide by and be bound by their terms and conditions.

         4. Rights as Shareholder. Until the issuance (as evidenced by the
appropriate entry on the books of the Company or of a duly authorized transfer
agent of the Company) of the stock certificate evidencing such Shares, no right
to vote or receive dividends or any other rights as a shareholder shall exist
with respect to the Optioned Stock, notwithstanding the exercise of the Option.
A share certificate for the number of Shares so acquired shall be issued to the
Optionee as soon as practicable after exercise of the Option. No adjustment will
be made for a dividend or other right for which the record date is prior to the
date the stock certificate is issued, except as provided in Section 8 of the
Plan.

         5. Tax Consultation. Purchaser understands that Purchaser may suffer
adverse tax consequences as a result of Purchaser's purchase or disposition of





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<PAGE>   11

the Shares. Purchaser represents that Purchaser has consulted with any tax
consultants Purchaser deems advisable in connection with the purchase or
disposition of the Shares and that Purchaser is not relying on the Company for
any tax advice.

         6. Entire Agreement; Governing Law. The Plan and Option Agreement are
incorporated herein by reference. This Agreement, the Plan and the Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Purchaser with respect to the subject matter
hereof, and may not be modified adversely to the Purchaser's interest except by
means of a writing signed by the Company and Purchaser. This agreement is
governed by California law except for that body of law pertaining to conflict of
laws.

Submitted by:                       Accepted by:

PURCHASER:                          VITALCOM INC.

__________________________________  By: _________________________________
Signature

__________________________________  Its: ________________________________
Print Name

Address:
--------

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

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