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                             24/7 REAL MEDIA, INC.
                           2002 STOCK INCENTIVE PLAN
                         (EFFECTIVE AS OF JULY 9, 2002)

                                   ARTICLE I

                                    PURPOSE

    The purpose of this 24/7 Real Media, Inc. 2002 Stock Incentive Plan (the
"Plan") is to enhance the profitability and value of 24/7 Real Media, Inc. (the
"Company") for the benefit of its stockholders by enabling the Company (i) to
offer employees and consultants of the Company and its Affiliates stock based
incentives and other equity interests in the Company, thereby creating a means
to raise the level of stock ownership by employees and consultants in order to
attract, retain and reward such employees and consultants and strengthen the
mutuality of interests between employees or consultants and the Company's
stockholders and (ii) to offer equity based awards to non-employee directors
thereby attracting, retaining and rewarding such non-employee directors and
strengthening the mutuality of interests between non-employee directors and the
Company's stockholders.

                                   ARTICLE II

                                  DEFINITIONS

    For purposes of this Plan, the following terms shall have the following
meanings:

    2.1  "Affiliate" shall mean, other than the Company, each of the following:
(i) any Subsidiary; (ii) any Parent; (iii) any corporation, trade or business
(including, without limitation, a partnership or limited liability company)
which is directly or indirectly controlled fifty percent (50%) or more (whether
by ownership of stock, assets or an equivalent ownership interest or voting
interest) by the Company or one of its Affiliates; and (iv) any other entity,
approved by the Committee as an Affiliate under the Plan, in which the Company
or any of its Affiliates has a material equity interest.

    2.2  "Award" shall mean any award under this Plan of any Stock Option, Stock
Appreciation Right or Restricted Stock. All Awards shall be confirmed by, and
subject to the terms of, a written agreement executed by the Company and the
Participant.

    2.3  "Board" shall mean the Board of Directors of the Company.

    2.4  "Cause" shall mean, with respect to a Participant's Termination of
Employment or Termination of Consultancy, unless otherwise determined by the
Committee at grant, or, if no rights of the Participant are reduced, thereafter:
(i) in the case where there is no employment agreement, consulting agreement,
change in control agreement or similar agreement in effect between the Company
or an Affiliate and the Participant at the time of the grant of the Award (or
where there is such an agreement but it does not define "cause" (or words of
like import)), termination due to a Participant's dishonesty, fraud,
insubordination, willful misconduct, refusal to perform services (for any reason
other than illness or incapacity) or materially unsatisfactory performance of
his or her duties for the Company as determined by the Committee in its sole
discretion; or (ii) in the case where there is an employment agreement,
consulting agreement, change in control agreement or similar agreement in effect
between the Company or an Affiliate and the Participant at the time of the grant
of the Award that defines "cause" (or words of like import), as defined under
such agreement; provided, however, that with regard to any agreement that
conditions "cause" on occurrence of a change in control, such definition of
"cause" shall not apply until a change in control actually takes place and then
only with regard to a termination thereafter. With respect to a Participant's
Termination of Directorship, Cause shall mean an act or failure to act that
constitutes "cause" for removal of a director under applicable state corporate
law.

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    2.5  "Change in Control" shall have the meaning set forth in Article XI.

    2.6  "Code" shall mean the Internal Revenue Code of 1986, as amended. Any
reference to any section of the Code shall also be a reference to any successor
provision and any Treasury regulation thereunder.

    2.7  "Committee" shall mean a committee of the Board that may be appointed
from time to time by the Board. To the extent determined appropriate by the
Board, or to the extent required under Rule 16b-3 and Section 162(m) of the
Code, such committee shall consist of two or more non-employee directors, each
of whom shall be a non-employee director as defined in Rule 16b-3 and an outside
director as defined under Section 162(m) of the Code. To the extent that no
Committee exists which has the authority to administer the Plan, the functions
of the Committee shall be exercised by the Board. If for any reason the
appointed Committee does not meet the requirements of Rule 16b-3 or Section
162(m) of the Code, such noncompliance with the requirements of Rule 16b-3 or
Section 162(m) of the Code shall not affect the validity of the awards, grants,
interpretations or other actions of the Committee. Notwithstanding the
foregoing, with respect to the application of the Plan to non-employee
directors, Committee shall mean the Board.

    2.8  "Common Stock" shall mean the Company's common stock, $.01 par value
per share, of the Company.

    2.9  "Company" shall mean 24/7 Real Media, Inc., a Delaware corporation.

    2.10  "Consultant" shall mean any advisor or consultant to the Company or an
Affiliate who is eligible pursuant to Article V to be granted Awards under this
Plan.

    2.11  "Disability" shall mean total and permanent disability, as defined in
Section 22(e)(3) of the Code.

    2.12  "Eligible Employees" shall mean the employees of the Company and its
Affiliates who are eligible pursuant to Article V to be granted Awards under
this Plan. Notwithstanding the foregoing, with respect to the grant of Incentive
Stock Options, Eligible Employees shall mean the employees of the Company, its
Subsidiaries and its Parents who are eligible pursuant to Article V to be
granted Stock Options under the Plan.

    2.13  "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

    2.14  "Fair Market Value" for purposes of this Plan, unless otherwise
required by any applicable provision of the Code or any regulations issued
thereunder, shall mean, as of any date, the last sales price reported for the
Common Stock on the applicable date, or in the absence of reported sales on such
date, the last reported sales price reported for the Common Stock prior to such
date (on which there is a sale): (i) as reported by the principal national
securities exchange in the United States on which it is then traded or the
Nasdaq Stock Market, Inc., or (ii) if not traded on any such national securities
exchange or the Nasdaq Stock Market, Inc., as quoted on an automated quotation
system sponsored by the National Association of Securities Dealers. If the
Common Stock is not readily tradable on a national securities exchange, the
Nasdaq Stock Market, Inc. or any system sponsored by the National Association of
Securities Dealers, its Fair Market Value shall be set in good faith by the
Committee based on reasonable methods set forth under Section 422 of the Code
and the regulations thereunder including, without limitation, a method utilizing
the average of prices of the Common Stock reported on the principal national
securities exchange on which it is then traded during a reasonable period
designated by the Committee. For purposes of the grant of any Award, the
applicable date shall be the date on which the Award is granted or, in the case
of a Stock Appreciation Right, the date a notice of exercise is received by the
Committee or, if the sale of Common Stock shall not have been reported or quoted
on such date, the first day prior thereto on which the sale of Common Stock was
reported or quoted.

    2.15  "Good Reason" with respect to a Participant's Termination of
Employment or Termination of Consultancy shall mean (i) in the case where there
is no employment agreement, consulting

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agreement, change in control agreement or similar agreement in effect between
the Company or an Affiliate and the Participant at the time of the grant of the
Award (or where there is such an agreement but it does not define "Good Reason"
(or words of like import)), or where "Good Reason" is not otherwise determined
by the Committee at grant, or, if no rights of the Participant are reduced,
thereafter, a voluntary termination due to "good reason," as the Committee, in
its sole discretion, decides to treat as a Good Reason termination, or (ii) in
the case where there is an employment agreement, consulting agreement, change in
control agreement or similar agreement in effect between the Company or an
Affiliate and the Participant at the time of the grant of the Award that defines
"good reason" (or words of like import), as defined under such agreement;
provided, however, that with regard to any agreement that conditions "good
reason" on occurrence of a change in control, such definition of "good reason"
shall not apply until a change in control actually takes place and then only
with regard to a termination thereafter.

    2.16  "Incentive Stock Option" shall mean any Stock Option awarded under
this Plan intended to be and designated as an "Incentive Stock Option" within
the meaning of Section 422 of the Code.

    2.17  "Limited Stock Appreciation Right" shall mean an Award of a limited
Tandem Stock Appreciation Right or a Non-Tandem Stock Appreciation Right made
pursuant to Section 8.5 of this Plan.

    2.18  "Non-Qualified Stock Option" shall mean any Stock Option awarded under
this Plan that is not an Incentive Stock Option.

    2.19  "Non-Tandem Stock Appreciation Right" shall mean a Stock Appreciation
Right entitling a Participant to receive an amount in cash or Common Stock (as
determined by the Committee in its sole discretion) equal to the excess of:
(i) the Fair Market Value of a share of Common Stock as of the date such right
is exercised, over (ii) the aggregate exercise price of such right.

    2.20  "Parent" shall mean any parent corporation of the Company within the
meaning of Section 424(e) of the Code.

    2.21  "Participant" shall mean the following persons to whom an Award has
been made pursuant to this Plan: Eligible Employees of, and Consultants to, the
Company and its Affiliates and non-employee directors of the Company; provided,
however, that non-employee directors shall be Participants for purposes of the
Plan solely with respect to Awards pursuant to Article IX.

    2.22  "Restricted Stock" shall mean an award of shares of Common Stock under
the Plan that is subject to restrictions under Article VII.

    2.23  "Restriction Period" shall have the meaning set forth in Subsection
7.3(a) with respect to Restricted Stock for Eligible Employees.

    2.24  "Retirement" with respect to a Participant's Termination of Employment
or Termination of Consultancy, shall mean a Termination of Employment or
Termination of Consultancy without Cause from the Company by a Participant who
has attained (i) at least age sixty-five (65); or (ii) such earlier date after
age fifty-five (55) as may be approved by the Committee with regard to such
Participant. With respect to a Participant's Termination of Directorship,
Retirement shall mean the failure to stand for reelection or the failure to be
reelected after a Participant has attained age sixty-five (65).

    2.25  "Rule 16b-3" shall mean Rule 16b-3 under Section 16(b) of the Exchange
Act as then in effect or any successor provisions.

    2.26  "Section 162(m) of the Code" shall mean the exception for
performance-based compensation under Section 162(m) of the Code and any Treasury
regulations thereunder.

    2.27  "Stock Appreciation Right" shall mean the right pursuant to an Award
granted under Article VIII. A Tandem Stock Appreciation Right shall mean the
right to surrender to the Company all (or a portion) of a Stock Option in
exchange for an amount in cash or stock equal to the excess of (i) the Fair
Market Value, on the date such Stock Option (or such portion thereof) is
surrendered, of

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the Common Stock covered by such Stock Option (or such portion thereof), over
(ii) the aggregate exercise price of such Stock Option (or such portion
thereof). A Non-Tandem Stock Appreciation Right shall mean the right to receive
an amount in cash or stock equal to the excess of (x) the Fair Market Value of a
share of Common Stock on the date such right is exercised, over (y) the
aggregate exercise price of such right, other than on surrender of a Stock
Option.

    2.28  "Stock Option" or "Option" shall mean any Option to purchase shares of
Common Stock granted to Eligible Employees or Consultants pursuant to
Article VI or non-employee directors pursuant to Article IX.

    2.29  "Subsidiary" shall mean any corporation that is defined as a
subsidiary corporation in Section 424(f) of the Code.

    2.30  "Ten Percent Stockholder" shall mean a person owning Common Stock of
the Company possessing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company, its Subsidiaries and/or its
Parents in the manner provided under Section 422 of the Code.

    2.31  "Termination of Consultancy" shall mean, with respect to an
individual, that the individual is no longer acting as a Consultant to the
Company or an Affiliate. In the event an entity shall cease to be an Affiliate,
there shall be deemed a Termination of Consultancy of any individual who is not
otherwise a Consultant of the Company or another Affiliate at the time the
entity ceases to be an Affiliate. In the event that a Consultant becomes an
Eligible Employee upon the termination of his consultancy, the Committee, in its
sole and absolute discretion, may determine that no Termination of Consultancy
shall be deemed to occur until such time as such Consultant is no longer a
Consultant or an Eligible Employee.

    2.32  "Termination of Directorship" shall mean, with respect to a
non-employee director, that the non-employee director has ceased to be a
director of the Company.

    2.33  "Termination of Employment," except as provided in the next sentence,
shall mean (i) a termination of service (for reasons other than a military or
personal leave of absence granted by the Company) of a Participant from the
Company and its Affiliates; or (ii) when an entity which is employing a
Participant ceases to be an Affiliate, unless the Participant thereupon becomes
employed by the Company or another Affiliate. In the event that an Eligible
Employee becomes a Consultant upon the termination of his employment, the
Committee, in its sole and absolute discretion, may determine that no
Termination of Employment shall be deemed to occur until such time as such
Eligible Employee is no longer an Eligible Employee or a Consultant. The
Committee may otherwise define Termination of Employment in the Option grant or,
if no rights of the Participant are reduced, may otherwise define Termination of
Employment thereafter, including, but not limited to, defining Termination of
Employment with regard to entities controlling, under common control with or
controlled by the Company rather than just the Company and its Affiliates and/or
entities that provide substantial services to the Company or its Affiliates to
which the Participant has transferred directly from the Company or its
Affiliates at the request of the Company.

    2.34  "Transfer" or "Transferred" shall mean anticipate, alienate, attach,
sell, assign, pledge, encumber, charge or otherwise transfer.

                                  ARTICLE III

                                 ADMINISTRATION

    3.1  THE COMMITTEE.  The Plan shall be administered and interpreted by the
Committee.

    3.2  AWARDS.  The Committee shall have full authority to grant, pursuant to
the terms of this Plan, (i) Stock Options, (ii) Stock Appreciation Rights, both
Tandem and Non-Tandem and (iii) Restricted Stock to Eligible Employees and
Consultants. Awards may be granted to non-employee directors of the Company
pursuant to Article IX. In particular, the Committee shall have the authority:

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        (a) to select the Eligible Employees and Consultants to whom Stock
    Options, Stock Appreciation Rights and Restricted Stock may from time to
    time be granted hereunder;

        (b) to determine whether and to what extent Stock Options, Stock
    Appreciation Rights and Restricted Stock or any combination thereof are to
    be granted hereunder to one or more Eligible Employees or Consultants;

        (c) to determine, in accordance with the terms of this Plan, the number
    of shares of Common Stock to be covered by each Award to an Eligible
    Employee or Consultant granted hereunder;

        (d) to determine the terms and conditions, not inconsistent with the
    terms of this Plan, of any Award granted hereunder to an Eligible Employee
    or Consultant (including, but not limited to, the exercise or purchase price
    (if any), any restriction or limitation, any vesting schedule or
    acceleration thereof, or any forfeiture restrictions or waiver thereof,
    regarding any Stock Option or other Award, and the shares of Common Stock
    relating thereto, based on such factors, if any, as the Committee shall
    determine, in its sole discretion);

        (e) to determine whether and under what circumstances a Stock Option may
    be settled in cash, Common Stock and/or Restricted Stock under Subsection
    6.3(d) or, with respect to Stock Options granted to non-employee directors,
    Section 9.4(c);

        (f) to determine whether, to what extent and under what circumstances to
    provide loans (which shall be on a recourse basis and shall bear a
    reasonable rate of interest) to Eligible Employees and Consultants in order
    to exercise Options under the Plan;

        (g) to modify, extend or renew a Stock Option, subject to Article XII
    hereof, provided, however, that if a Stock Option is modified, extended or
    renewed and thereby deemed to be the issuance of a new Stock Option under
    the Code or the applicable accounting rules, the exercise price of such
    Stock Option may continue to be the original exercise price even if less
    than the Fair Market Value of the Common Stock at the time of such
    modification, extension or renewal;

        (h) to determine whether a Stock Option is an Incentive Stock Option or
    Non-Qualified Stock Option, whether a Stock Appreciation Right is a Tandem
    Stock Appreciation Right or Non-Tandem Stock Appreciation Right or whether
    an Award is intended to satisfy Section 162(m) of the Code;

        (i) to determine whether to require an Eligible Employee or Consultant,
    as a condition of the granting of any Award, to not sell or otherwise
    dispose of shares acquired pursuant to the exercise of an Option or as an
    Award for a period of time as determined by the Committee, in its sole
    discretion, following the date of the acquisition of such Option or Award;

        (j) to determine whether a Stock Appreciation Right is Tandem or
    Non-Tandem;

        (k) to determine whether to require an Eligible Employee or Consultant,
    as a condition of the granting of any Award, to not sell or otherwise
    dispose of shares acquired pursuant to the exercise of an Option or as an
    Award for a period of time as determined by the Committee, in its sole
    discretion, following the date of the acquisition of such Option or Award;
    and

        (l) to grant Awards under the Plan as a conversion from, and replacement
    of, comparable stock options, stock appreciation rights or restricted stock
    held by employees of another entity who become Eligible Employees of, or
    Consultants to, the Company or an Affiliate as the result of a merger or
    consolidation of the employing entity with the Company or an Affiliate, or
    as the result of the acquisition by the Company of property or stock of the
    employing corporation. The Company may direct that replacement Awards be
    granted on such terms and conditions as the Committee considers appropriate
    in the circumstances, including, without limitation, that Non-Qualified
    Stock Options shall be granted in lieu of Incentive Stock Options.

    3.3  GUIDELINES.  Subject to Article XII hereof, the Committee shall have
the authority to adopt, alter and repeal such administrative rules, guidelines
and practices governing this Plan and perform all

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acts, including the delegation of its administrative responsibilities, as it
shall, from time to time, deem advisable; to construe and interpret the terms
and provisions of this Plan and any Award issued under this Plan (and any
agreements relating thereto); and to otherwise supervise the administration of
this Plan. The Committee may correct any defect, supply any omission or
reconcile any inconsistency in this Plan or in any agreement relating thereto in
the manner and to the extent it shall deem necessary to carry this Plan into
effect, but only to the extent any such action would be permitted under the
applicable provisions of Rule 16b-3 (if any) and the applicable provisions of
Section 162(m) of the Code (if any). The Committee may adopt special guidelines
and provisions for persons who are residing in, or subject to the taxes of,
countries other than the United States to comply with applicable tax and
securities laws. If ,or to the extent applicable, this Plan is intended to
comply with Section 162(m) of the Code and the applicable requirements of
Rule 16b-3 and shall be limited, construed and interpreted in a manner so as to
comply therewith.

    3.4  DECISIONS FINAL.  Any decision, interpretation or other action made or
taken in good faith by or at the direction of the Company, the Board, or the
Committee (or any of its members) arising out of or in connection with the Plan
shall be within the absolute discretion of all and each of them, as the case may
be, and shall be final, binding and conclusive on the Company and all employees
and Participants and their respective heirs, executors, administrators,
successors and assigns. The Committee shall not be bound to any standards of
uniformity or similarity of action, interpretation or conduct in the discharge
of its duties hereunder, regardless of the apparent similarity of the matters
coming before it.

    3.5  RELIANCE ON COUNSEL.  The Company, the Board or the Committee may
consult with legal counsel, who may be counsel for the Company or other counsel,
with respect to its obligations or duties hereunder, or with respect to any
action or proceeding or any question of law, and shall not be liable with
respect to any action taken or omitted by it in good faith pursuant to the
advice of such counsel.

    3.6  PROCEDURES.  If the Committee is appointed, the Board may designate one
of the members of the Committee as chairman and the Committee shall hold
meetings, subject to the By-Laws of the Company, at such times and places as it
shall deem advisable. A majority of the Committee members shall constitute a
quorum. All determinations of the Committee shall be made by a majority of its
members. Any decision or determination reduced to writing and signed by all
Committee members in accordance with the By-Laws of the Company shall be fully
effective as if it had been made by a vote at a meeting duly called and held.
The Committee shall keep minutes of its meetings and shall make such rules and
regulations for the conduct of its business as it shall deem advisable.

    3.7  DESIGNATION OF CONSULTANTS--LIABILITY.

        (a) The Committee may designate employees of the Company and
    professional advisors to assist the Committee in the administration of the
    Plan and may grant authority to employees to execute agreements or other
    documents on behalf of the Committee.

        (b) The Committee may employ such legal counsel, consultants and agents
    as it may deem desirable for the administration of the Plan and may rely
    upon any opinion received from any such counsel or consultant and any
    computation received from any such consultant or agent. Expenses incurred by
    the Committee or Board in the engagement of any such counsel, consultant or
    agent shall be paid by the Company. The Committee, its members and any
    person designated pursuant to paragraph (a) above shall not be liable for
    any action or determination made in good faith with respect to the Plan.

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    To the maximum extent permitted by applicable law, no officer of the Company
or member or former member of the Committee or of the Board shall be liable for
any action or determination made in good faith with respect to the Plan or any
Award granted under it. To the maximum extent permitted by applicable law and
the Certificate of Incorporation and By-Laws of the Company and to the extent
not covered by insurance, each employee of the Company and member or former
member of the Committee or of the Board shall be indemnified and held harmless
by the Company against any cost or expense (including reasonable fees of counsel
reasonably acceptable to the Company) or liability (including any sum paid in
settlement of a claim with the approval of the Company), and advanced amounts
necessary to pay the foregoing at the earliest time and to the fullest extent
permitted, arising out of any act or omission to act in connection with the
Plan, except to the extent arising out of such officer's, member's or former
member's own fraud or bad faith. Such indemnification shall be in addition to
any rights of indemnification the employees, officers, directors or members or
former officers, directors or members may have under applicable law or under the
Certificate of Incorporation or By-Laws of the Company or Affiliate.
Notwithstanding anything else herein, this indemnification will not apply to the
actions or determinations made by an individual with regard to Awards granted to
him or her under this Plan.

                                   ARTICLE IV

                          SHARE AND OTHER LIMITATIONS

    4.1 SHARES.

        (a)  GENERAL LIMITATION.  The aggregate number of shares of Common Stock
    which may be issued or used for reference purposes under this Plan or with
    respect to which other Awards may be granted shall not exceed 10,000,000
    shares (subject to any increase or decrease pursuant to Section 4.2) which
    may be either authorized and unissued Common Stock or Common Stock held in
    or acquired for the treasury of the Company; provided, however, that,
    subject to any increase or decrease pursuant to Section 4.2, the aggregate
    number of shares of Common Stock which may be issued or used for reference
    purposes under this Plan will automatically increase on the first trading
    day of each calendar year, beginning with the 2003 calendar year, by an
    amount equal to three percent (3%) of the sum of (i) the total number of
    shares of Common Stock outstanding on the last trading day of the
    immediately preceding calendar year and (ii) the total number of shares of
    Common Stock issuable upon conversion of outstanding Preferred Stock on the
    last trading day of the immediately preceding calendar year; provided,
    however, that no such increase will exceed 3,000,000 shares.

    If any Option or Stock Appreciation Right granted under this Plan expires,
terminates or is canceled for any reason without having been exercised in full
or, with respect to Options, the Company repurchases any Option pursuant to
Section 6.3(f), the number of shares of Common Stock underlying the repurchased
Option, and/or the number of shares of Common Stock underlying any unexercised
Stock Appreciation Right or Option shall again be available for the purposes of
Awards under the Plan. If a Tandem Stock Appreciation Right or a Limited Stock
Appreciation Right is granted in tandem with an Option, such grant shall only
apply once against the maximum number of shares of Common Stock which may be
issued under this Plan. In determining the number of shares of Common Stock
available for Awards other than Awards of Incentive Stock Options, if Common
Stock has been delivered or exchanged by a Participant as full or partial
payment to the Company for the exercise price or for withholding taxes, in
connection with the exercise of a Stock Option or the number shares of Common
Stock otherwise deliverable has been reduced for full or partial payment for the
exercise price or for withholding taxes, the number of shares of Common Stock
delivered, exchanged or reduced shall again be available for purposes of Awards
under this Plan.

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    In the event Awards are granted to employees or Consultants pursuant to
Section 3.2(l), the aggregate number of shares of Common Stock available under
the Plan for Awards other than Incentive Stock Options shall be increased by the
number of shares of Common Stock which may be issued or used for reference with
respect to those Awards granted pursuant to Section 3.2(l). The maximum number
of shares of Common Stock which may be issued under this Plan with respect to
Incentive Stock Options shall not be increased (subject to any increase or
decrease pursuant to Section 4.2).

    (b) INDIVIDUAL PARTICIPANT LIMITATIONS.

    (i) The maximum number of shares of Common Stock subject to any Option which
may be granted under this Plan to each Participant shall not exceed 600,000
shares (subject to any increase or decrease pursuant to Section 4.2) during each
fiscal year of the Company.

    (ii) There are no annual individual Participant limitations on Restricted
Stock.

    (iii) The maximum number of shares of Common Stock subject to any Stock
Appreciation Right which may be granted under this Plan to each Participant
shall not exceed 600,000 shares (subject to any increase or decrease pursuant to
Section 4.2) during each fiscal year of the Company. If a Tandem Stock
Appreciation Right or Limited Stock Appreciation Right is granted in tandem with
an Option it shall apply against the Participant's individual share limitations
for both Stock Appreciation Rights and Options.

    (iv) The individual Participant limitations set forth in this
Section 4.1(b) shall be cumulative; that is, to the extent that shares of Common
Stock for which Awards are permitted to be granted to an Eligible Employee or a
Consultant during a fiscal year are not covered by an Award to such Eligible
Employee or Consultant in a fiscal year, the number of shares of Common Stock
available for Awards to such Eligible Employee or Consultant shall automatically
increase in the subsequent fiscal years during the term of the Plan until used.

    4.2 CHANGES.

    (a) The existence of the Plan and the Awards granted hereunder shall not
affect in any way the right or power of the Board or the stockholders of the
Company to make or authorize any adjustment, recapitalization, reorganization or
other change in the Company's capital structure or its business, any merger or
consolidation of the Company or its Affiliates, any issue of bonds, debentures,
preferred or prior preference stock ahead of or affecting Common Stock, the
dissolution or liquidation of the Company or its Affiliates, any sale or
transfer of all or part of its assets or business or any other corporate act or
proceeding.

    (b) In the event of any such change in the capital structure or business of
the Company by reason of any stock dividend or distribution, stock split or
reverse stock split, recapitalization, reorganization, merger, consolidation,
split-up, combination or exchange of shares, distribution with respect to its
outstanding Common Stock or capital stock other than Common Stock, sale or
transfer of all or part of its assets or business, reclassification of its
capital stock, or any similar change affecting the Company's capital structure
or business and the Committee determines an adjustment is appropriate under the
Plan, then the aggregate number and kind of shares which thereafter may be
issued under this Plan, the number and kind of shares or other property
(including cash) to be issued upon exercise of an outstanding Option or other
Awards granted under this Plan and the purchase price thereof shall be
appropriately adjusted consistent with such change in such manner as the
Committee may deem equitable to prevent substantial dilution or enlargement of
the rights granted to, or available for, Participants under this Plan or as
otherwise necessary to reflect the change, and any such adjustment determined by
the Committee shall be binding and conclusive on the Company and all
Participants and employees and their respective heirs, executors,
administrators, successors and assigns.

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    (c) Fractional shares of Common Stock resulting from any adjustment in
Options or Awards pursuant to Section 4.2(a) or (b) shall be aggregated until,
and eliminated at, the time of exercise by rounding-down for fractions less than
one-half (1/2) and rounding-up for fractions equal to or greater than one-half
(1/2). No cash settlements shall be made with respect to fractional shares
eliminated by rounding. Notice of any adjustment shall be given by the Committee
to each Participant whose Option or Award has been adjusted and such adjustment
(whether or not such notice is given) shall be effective and binding for all
purposes of the Plan.

    (d) In the event of a merger or consolidation in which the Company is not
the surviving entity or in the event of any transaction that results in the
acquisition of s substantially all of the Company's outstanding Common Stock by
a single person or entity or by a group of persons and/or entities acting in
concert, or in the event of the sale or transfer of all of the Company's assets
(all of the foregoing being referred to as "Acquisition Events"), then the
Committee may, in its sole discretion, terminate all outstanding Options and
Stock Appreciation Rights of Eligible Employees and Consultants, effective as of
the date of the Acquisition Event, by delivering notice of termination to each
such Participant at least twenty (20) days prior to the date of consummation of
the Acquisition Event; provided, that during the period from the date on which
such notice of termination is delivered to the consummation of the Acquisition
Event, each such Participant shall have the right to exercise in full all of his
or her Options and Stock Appreciation Rights that are then outstanding (without
regard to any limitations on exercisability otherwise contained in the Option or
Award Agreements) but contingent on occurrence of the Acquisition Event, and,
provided that, if the Acquisition Event does not take place within a specified
period after giving such notice for any reason whatsoever, the notice and
exercise shall be null and void.

    (e) If an Acquisition Event occurs, to the extent the Committee does not
terminate the outstanding Options and Stock Appreciation Rights pursuant to this
Section 4.2(d), then the provisions of Section 4.2(b) shall apply.

    4.3  PURCHASE PRICE.  Notwithstanding any provision of this Plan to the
contrary, if authorized but previously unissued shares of Common Stock are
issued under this Plan, such shares shall not be issued for a consideration
which is less than as permitted under applicable law.

                                   ARTICLE V

                                  ELIGIBILITY

    5.1 All employees of and Consultants to the Company and its Affiliates are
eligible to be granted Non-Qualified Stock Options, Stock Appreciation Rights
and Restricted Stock under this Plan. All employees of the Company, its
Subsidiaries and its Parents are eligible to be granted Incentive Stock Options
under the Plan. Eligibility under this Plan shall be determined by the
Committee.

    5.2 Non-employee directors of the Company are only eligible to receive an
Award in accordance with Article IX of the Plan.

                                   ARTICLE VI

                              STOCK OPTION GRANTS

    6.1  OPTIONS.  Each Stock Option granted hereunder shall be one of two
types: (i) an Incentive Stock Option intended to satisfy the requirements of
Section 422 of the Code or (ii) a Non-Qualified Stock Option.

    6.2  GRANTS.  The Committee shall have the authority to grant to any
Eligible Employee one or more Incentive Stock Options, Non-Qualified Stock
Options, or both types of Stock Options (in each case with or without Stock
Appreciation Rights). The Committee shall have the authority to grant to

                                      9
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any Consultant one or more Non-Qualified Stock Options (with or without Stock
Appreciation Rights). To the extent that any Stock Option does not qualify as an
Incentive Stock Option (whether because of its provisions or the time or manner
of its exercise or otherwise), such Stock Option or the portion thereof which
does not qualify, shall constitute a separate Non-Qualified Stock Option.
Notwithstanding any other provision of this Plan to the contrary or any
provision in an agreement evidencing the grant of a Stock Option to the
contrary, any Stock Option granted to an Eligible Employee of an Affiliate
(other than an Affiliate which is a Parent or a Subsidiary) or to any Consultant
shall be a Non-Qualified Stock Option.

    6.3  TERMS OF OPTIONS.  Options granted under this Plan shall be subject to
the following terms and conditions, shall be subject to Section 3.2 hereof and
the other provisions of this Plan, and shall be in such form and contain such
additional terms and conditions, not inconsistent with the terms of this Plan,
as the Committee shall deem desirable:

        (a)  OPTION PRICE.  The option price per share of Common Stock
    purchasable under an Incentive Stock Option shall be determined by the
    Committee at the time of grant but shall not be less than 100% of the Fair
    Market Value of the share of Common Stock at the time of grant; provided,
    however, if an Incentive Stock Option is granted to a Ten Percent
    Stockholder, the purchase price shall be no less than 110% of the Fair
    Market Value of the Common Stock. The purchase price of shares of Common
    Stock subject to a Non-Qualified Stock Option shall be determined by the
    Committee but shall not be less than 100% of the Fair Market Value of the
    Common Stock at the time of grant. Notwithstanding the foregoing, if an
    Option is modified, extended or renewed and, thereby, deemed to be the
    issuance of a new Option under the Code, the exercise price of an Option may
    continue to be the original exercise price even if less than the Fair Market
    Value of the Common Stock at the time of such modification, extension or
    renewal.

        (b)  OPTION TERM.  The term of each Stock Option shall be fixed by the
    Committee, but no Stock Option shall be exercisable more than ten
    (10) years after the date the Option is granted, provided, however, the term
    of an Incentive Stock Option granted to a Ten Percent Stockholder may not
    exceed five (5) years.

        (c)  EXERCISABILITY.  Stock Options shall be exercisable at such time or
    times and subject to such terms and conditions as shall be determined by the
    Committee at grant. If the Committee provides, in its discretion, that any
    Stock Option is exercisable subject to certain limitations (including,
    without limitation, that it is exercisable only in installments or within
    certain time periods), the Committee may waive such limitations on the
    exercisability at any time at or after grant in whole or in part (including,
    without limitation, that the Committee may waive the installment exercise
    provisions or accelerate the time at which Options may be exercised), based
    on such factors, if any, as the Committee shall determine, in its sole
    discretion.

        (d)  METHOD OF EXERCISE.  Subject to whatever installment exercise and
    waiting period provisions apply under subsection (c) above, Stock Options
    may be exercised in whole or in part at any time during the Option term, by
    giving written notice of exercise to the Company specifying the number of
    shares of Common Stock to be purchased. Such notice shall be accompanied by
    payment in full of the purchase price in such form, or such other
    arrangement for the satisfaction of the purchase price, as the Committee may
    accept. To the extent determined by the Committee in its sole discretion at
    or after grant, payment in full or in part may be made as follows: (i) in
    cash or by check, bank draft or money order payable to the order of the
    Company; (ii) if the Common Stock is traded on a national securities
    exchange, the Nasdaq Stock Market, Inc. or quoted on a national quotation
    system sponsored by the National Association of Securities Dealers, through
    a "cashless exercise" procedure whereby the Participant delivers irrevocable
    instructions to a broker to deliver promptly to the Company an amount equal
    to the purchase price, (iii) in the form of Common Stock owned by the
    Participant for at least 6 months (and for

                                      10
<Page>
    which the Participant has good title free and clear of any liens and
    encumbrances) or (iv) in the form of Restricted Stock; provided, however,
    that in each case, such payment is based on the Fair Market Value of the
    Common Stock on the payment date as determined by the Committee (without
    regard to any forfeiture restrictions applicable to such Restricted Stock).
    No shares of Common Stock shall be issued until payment, as provided herein,
    therefor has been made or provided for. If payment in full or in part has
    been made in the form of Restricted Stock, an equivalent number of shares of
    Common Stock issued on exercise of the Option shall be subject to the same
    restrictions and conditions, during the remainder of the Restriction Period,
    applicable to the Restricted Stock surrendered therefor.

        (e)  INCENTIVE STOCK OPTION LIMITATIONS.  To the extent that the
    aggregate Fair Market Value (determined as of the time of grant) of the
    Common Stock with respect to which Incentive Stock Options are exercisable
    for the first time by an Eligible Employee during any calendar year under
    the Plan and/or any other stock option plan of the Company or any Subsidiary
    or Parent exceeds $100,000, such Options shall be treated as Options which
    are not Incentive Stock Options. In addition, if an Eligible Employee does
    not remain employed by the Company, any Subsidiary or Parent at all times
    from the time the Option is granted until three (3) months prior to the date
    of exercise (or such other period as required by applicable law), such
    Option shall be treated as an Option which is not a Non-Qualified Stock
    Option.

        Should the foregoing provision not be necessary in order for the Stock
    Options to qualify as Incentive Stock Options, or should any additional
    provisions be required, the Committee may amend the Plan accordingly,
    without the necessity of obtaining the approval of the stockholders of the
    Company.

        (f)  BUY OUT AND SETTLEMENT PROVISIONS.  The Committee may at any time
    on behalf of the Company offer to buy out an Option previously granted,
    based on such terms and conditions as the Committee shall establish and
    communicate to the Participant at the time that such offer is made.

        (g)  FORM, MODIFICATION, EXTENSION AND RENEWAL OF OPTIONS.  Subject to
    the terms and conditions and within the limitations of the Plan, an Option
    shall be evidenced by such form of agreement or grant as is approved by the
    Committee, and the Committee may modify, extend or renew outstanding Options
    granted under the Plan (provided that the rights of a Participant are not
    reduced without his consent), or accept the surrender of outstanding Options
    (up to the extent not theretofore exercised) and authorize the granting of
    new Options in substitution therefor (to the extent not theretofore
    exercised).

        (h)  DEFERRED DELIVERY OF COMMON SHARES.  The Committee may in its
    discretion permit Participants to defer delivery of Common Stock acquired
    pursuant to a Participant's exercise of an Option in accordance with the
    terms and conditions established by the Committee.

        (i)  OTHER TERMS AND CONDITIONS.  Options may contain such other
    provisions, which shall not be inconsistent with any of the foregoing terms
    of the Plan, as the Committee shall deem appropriate including, without
    limitation, permitting "reloads" such that the same number of Options are
    granted as the number of Options exercised, shares used to pay for the
    exercise price of Options or shares used to pay withholding taxes
    ("Reloads"). With respect to Reloads, the exercise price of the new Stock
    Option shall be the Fair Market Value on the date of the "reload" and the
    term of the Stock Option shall be the same as the remaining term of the
    Options that are exercised, if applicable, or such other exercise price and
    term as determined by the Committee.

    6.4  TERMINATION OF EMPLOYMENT.  The following rules apply with regard to
Options upon the Termination of Employment or Termination of Consultancy of a
Participant:

                                      11
<Page>
        (a)  TERMINATION BY REASON OF DEATH.  If a Participant's Termination of
    Employment or Termination of Consultancy is by reason of death, any Stock
    Option held by such Participant, unless otherwise determined by the
    Committee at grant or, if no rights of the Participant's estate are reduced,
    thereafter, may be exercised, to the extent exercisable at the Participant's
    death, by the legal representative of the estate, at any time within a
    period of one (1) year from the date of such death, but in no event beyond
    the expiration of the stated term of such Stock Option.

        (b)  TERMINATION BY REASON OF DISABILITY.  If a Participant's
    Termination of Employment or Termination of Consultancy is by reason of
    Disability, any Stock Option held by such Participant, unless otherwise
    determined by the Committee at grant or, if no rights of the Participant are
    reduced, thereafter, may be exercised, to the extent exercisable at the
    Participant's termination, by the Participant (or the legal representative
    of the Participant's estate if the Participant dies after termination) at
    any time within a period of one (1) year from the date of such termination,
    but in no event beyond the expiration of the stated term of such Stock
    Option.

        (c)  TERMINATION BY REASON OF RETIREMENT.  If a Participant's
    Termination of Employment or Termination of Consultancy is by reason of
    Retirement, any Stock Option held by such Participant, unless otherwise
    determined by the Committee at grant, or, if no rights of the Participant
    are reduced, thereafter, shall be fully vested and may thereafter be
    exercised by the Participant at any time within a period of one (1) year
    from the date of such termination, but in no event beyond the expiration of
    the stated term of such Stock Option; provided, however, that, if the
    Participant dies within such exercise period, any unexercised Stock Option
    held by such Participant shall thereafter be exercisable, to the extent to
    which it was exercisable at the time of death, for a period of one (1) year
    (or such other period as the Committee may specify at grant or, if no rights
    of the Participant's estate are reduced, thereafter) from the date of such
    death, but in no event beyond the expiration of the stated term of such
    Stock Option.

        (d)  INVOLUNTARY TERMINATION WITHOUT CAUSE OR TERMINATION FOR GOOD
    REASON.  If a Participant's Termination of Employment or Termination of
    Consultancy is by involuntary termination without Cause or for Good Reason,
    any Stock Option held by such Participant, unless otherwise determined by
    the Committee at grant or, if no rights of the Participant are reduced,
    thereafter, may be exercised, to the extent exercisable at termination, by
    the Participant at any time within a period of ninety (90) days from the
    date of such termination, but in no event beyond the expiration of the
    stated term of such Stock Option.

        (e)  TERMINATION WITHOUT GOOD REASON.  If a Participant's Termination of
    Employment or Termination of Consultancy is voluntary but without Good
    Reason and occurs prior to, or more than ninety (90) days after, the
    occurrence of an event which would be grounds for Termination of Employment
    or Termination of Consultancy by the Company for Cause (without regard to
    any notice or cure period requirements), any Stock Option held by such
    Participant, unless otherwise determined by the Committee at grant or, if no
    rights of the Participant are reduced, thereafter, may be exercised, to the
    extent exercisable at termination, by the Participant at any time within a
    period of thirty (30) days from the date of such termination, but in no
    event beyond the expiration of the stated term of such Stock Option.

        (f)  OTHER TERMINATION.  Unless otherwise determined by the Committee at
    grant or, if no rights of the Participant are reduced, thereafter, if a
    Participant's Termination of Employment or Termination of Consultancy is for
    any reason other than death, Disability, Retirement, Good Reason,
    involuntary termination without Cause or voluntary termination as provided
    in subsection (e) above, any Stock Option held by such Participant shall
    thereupon terminate and expire as of the date of termination, provided that
    (unless the Committee determines a different period upon grant or, if no
    rights of the Participant are reduced, thereafter) in the event the
    termination is for Cause or is a voluntary termination without Good Reason
    within ninety (90) days after occurrence

                                      12
<Page>
    of an event which would be grounds for Termination of Employment or
    Termination of Consultancy by the Company for Cause (without regard to any
    notice or cure period requirement), any Stock Option held by the Participant
    at the time of occurrence of the event which would be grounds for
    Termination of Employment or Termination of Consultancy by the Company for
    Cause shall be deemed to have terminated and expired upon occurrence of the
    event which would be grounds for Termination of Employment or Termination of
    Consultancy by the Company for Cause.

                                  ARTICLE VII

                            RESTRICTED STOCK AWARDS

    7.1  AWARDS OF RESTRICTED STOCK.  Shares of Restricted Stock may be issued
to Eligible Employees or Consultants either alone or in addition to other Awards
granted under the Plan. The Committee shall determine the eligible persons to
whom, and the time or times at which, grants of Restricted Stock will be made,
the number of shares to be awarded, the price (if any) to be paid by the
recipient (subject to Section 7.2), the time or times within which such Awards
may be subject to forfeiture, the vesting schedule and rights to acceleration
thereof, and all other terms and conditions of the Awards.

    7.2  AWARDS AND CERTIFICATES.  The prospective Participant selected to
receive a Restricted Stock Award shall not have any rights with respect to such
Award, unless and until such Participant has delivered a fully executed copy of
the applicable agreement evidencing the Award (the "Restricted Stock Award
Agreement") to the Company and has otherwise complied with the applicable terms
and conditions of such Award. Further, such Award shall be subject to the
following conditions:

        (a)  PURCHASE PRICE.  The purchase price of Restricted Stock shall be
    fixed by the Committee. Subject to Section 4.3, the purchase price for
    shares of Restricted Stock may be zero to the extent permitted by applicable
    law, and, to the extent not so permitted, such purchase price may not be
    less than par value.

        (b)  ACCEPTANCE.  Awards of Restricted Stock must be accepted within a
    period of sixty (60) days (or such shorter period as the Committee may
    specify at grant) after the Award date, by executing a Restricted Stock
    Award Agreement and by paying whatever price (if any) the Committee has
    designated thereunder.

        (c)  LEGEND.  Each Participant receiving a Restricted Stock Award shall
    be issued a stock certificate in respect of such shares of Restricted Stock,
    unless the Committee elects to use another system, such as book entries by
    the transfer agent, as evidencing ownership of a Restricted Stock Award.
    Such certificate shall be registered in the name of such Participant, and
    shall bear an appropriate legend referring to the terms, conditions, and
    restrictions applicable to such Award, substantially in the following form:

       "The anticipation, alienation, attachment, sale, transfer, assignment,
       pledge, encumbrance or charge of the shares of stock represented hereby
       are subject to the terms and conditions (including forfeiture) of the
       24/7 Real Media, Inc. (the "Company") 2002 Stock Incentive Plan and an
       Agreement entered into between the registered owner and the Company,
       dated July 9, 2002. Copies of such Plan and Agreement are on file at the
       principal office of the Company."

        (d)  CUSTODY.  The Committee may require that any stock certificates
    evidencing such shares be held in custody by the Company until the
    restrictions thereon shall have lapsed, and that, as a condition of any
    Restricted Stock Award, the Participant shall have delivered a duly signed
    stock power, endorsed in blank, relating to the Common Stock covered by such
    Award.

                                      13
<Page>
    7.3  RESTRICTIONS AND CONDITIONS ON RESTRICTED STOCK AWARDS.  The shares of
Restricted Stock awarded pursuant to this Plan shall be subject to Article X and
the following restrictions and conditions:

        (a)  RESTRICTION PERIOD; VESTING AND ACCELERATION OF VESTING.  The
    Participant shall not be permitted to Transfer shares of Restricted Stock
    awarded under this Plan during a period set by the Committee (the
    "Restriction Period") commencing with the date of such Award, as set forth
    in the Restricted Stock Award agreement and such agreement shall set forth a
    vesting schedule and any events which would accelerate vesting of the shares
    of Restricted Stock. Within these limits, based on service, or other
    criteria determined by the Committee, the Committee may provide for the
    lapse of such restrictions in installments in whole or in part, or may
    accelerate the vesting of all or any part of any Restricted Stock Award.

        (b)  RIGHTS AS STOCKHOLDER.  Except as provided in this subsection
    (b) and subsection (a) above and as otherwise determined by the Committee,
    the Participant shall have, with respect to the shares of Restricted Stock,
    all of the rights of a holder of shares of Common Stock of the Company
    including, without limitation, the right to receive any dividends, the right
    to vote such shares and, subject to and conditioned upon the full vesting of
    shares of Restricted Stock, the right to tender such shares. Notwithstanding
    the foregoing, the payment of dividends shall be deferred until, and
    conditioned upon, the expiration of the applicable Restriction Period,
    unless the Committee, in its sole discretion, specifies otherwise at the
    time of the Award.

        (c)  LAPSE OF RESTRICTIONS.  If and when the Restriction Period expires
    without a prior forfeiture of the Restricted Stock subject to such
    Restriction Period, the certificates for such shares shall be delivered to
    the Participant. All legends shall be removed from said certificates at the
    time of delivery to the Participant except as otherwise required by
    applicable law.

        (d)  TERMINATION OF EMPLOYMENT OR TERMINATION OF CONSULTANCY FOR
    RESTRICTED STOCK.  Subject to the applicable provisions of the Restricted
    Stock Award agreement and this Plan, upon a Participant's Termination of
    Employment or Termination of Consultancy for any reason during the relevant
    Restriction Period, all Restricted Stock still subject to restriction will
    vest or be forfeited in accordance with the terms and conditions established
    by the Committee at grant or thereafter.

                                  ARTICLE VIII

                           STOCK APPRECIATION RIGHTS

    8.1  TANDEM STOCK APPRECIATION RIGHTS.  Stock Appreciation Rights may be
granted in conjunction with all or part of any Stock Option (a "Reference Stock
Option") granted under this Plan ("Tandem Stock Appreciation Rights"). In the
case of a Non-Qualified Stock Option, such rights may be granted either at or
after the time of the grant of such Reference Stock Option. In the case of an
Incentive Stock Option, such rights may be granted only at the time of the grant
of such Reference Stock Option.

    8.2  TERMS AND CONDITIONS OF TANDEM STOCK APPRECIATION RIGHTS.  Tandem Stock
Appreciation Rights shall be subject to such terms and conditions, not
inconsistent with the provisions of this Plan, as shall be determined from time
to time by the Committee, including Article X and the following:

        (a)  TERM.  A Tandem Stock Appreciation Right or applicable portion
    thereof granted with respect to a Reference Stock Option shall terminate and
    no longer be exercisable upon the termination or exercise of the Reference
    Stock Option, except that, unless otherwise determined by the Committee, in
    its sole discretion, at the time of grant, a Tandem Stock Appreciation Right
    granted with respect to less than the full number of shares covered by the
    Reference Stock Option shall not be reduced until and then only to the
    extent the exercise or termination of the Reference

                                      14
<Page>
    Stock Option causes the number of shares covered by the Tandem Stock
    Appreciation Right to exceed the number of shares remaining available and
    unexercised under the Reference Stock Option.

        (b)  EXERCISABILITY.  Tandem Stock Appreciation Rights shall be
    exercisable only at such time or times and to the extent that the Reference
    Stock Options to which they relate shall be exercisable in accordance with
    the provisions of Article VI and this Article VIII.

        (c)  METHOD OF EXERCISE.  A Tandem Stock Appreciation Right may be
    exercised by an optionee by surrendering the applicable portion of the
    Reference Stock Option. Upon such exercise and surrender, the Participant
    shall be entitled to receive an amount determined in the manner prescribed
    in this Section 8.2. Stock Options which have been so surrendered, in whole
    or in part, shall no longer be exercisable to the extent the related Tandem
    Stock Appreciation Rights have been exercised.

        (d)  PAYMENT.  Upon the exercise of a Tandem Stock Appreciation Right a
    Participant shall be entitled to receive up to, but no more than, an amount
    in cash and/or Common Stock (as chosen by the Committee in its sole
    discretion) equal in value to the excess of the Fair Market Value of one
    share of Common Stock over the option price per share specified in the
    Reference Stock Option multiplied by the number of shares in respect of
    which the Tandem Stock Appreciation Right shall have been exercised, with
    the Committee having the right to determine the form of payment.

        (e)  DEEMED EXERCISE OF REFERENCE STOCK OPTION.  Upon the exercise of a
    Tandem Stock Appreciation Right, the Reference Stock Option or part thereof
    to which such Stock Appreciation Right is related shall be deemed to have
    been exercised for the purpose of the limitation set forth in Article IV of
    the Plan on the number of shares of Common Stock to be issued under the
    Plan.

    8.3  NON-TANDEM STOCK APPRECIATION RIGHTS.  Non-Tandem Stock Appreciation
Rights may also be granted without reference to any Stock Options granted under
this Plan.

    8.4  TERMS AND CONDITIONS OF NON-TANDEM STOCK APPRECIATION
RIGHTS.  Non-Tandem Stock Appreciation Rights shall be subject to such terms and
conditions, not inconsistent with the provisions of this Plan, as shall be
determined from time to time by the Committee, including Article X and the
following:

        (a)  TERM.  The term of each Non-Tandem Stock Appreciation Right shall
    be fixed by the Committee, but shall not be greater than ten (10) years
    after the date the right is granted.

        (b)  EXERCISABILITY.  Non-Tandem Stock Appreciation Rights shall be
    exercisable at such time or times and subject to such terms and conditions
    as shall be determined by the Committee at grant. If the Committee provides,
    in its discretion, that any such right is exercisable subject to certain
    limitations (including, without limitation, that it is exercisable only in
    installments or within certain time periods), the Committee may waive such
    limitation on the exercisability at any time at or after grant in whole or
    in part (including, without limitation, that the Committee may waive the
    installment exercise provisions or accelerate the time at which rights may
    be exercised), based on such factors, if any, as the Committee shall
    determine, in its sole discretion.

        (c)  METHOD OF EXERCISE.  Subject to whatever installment exercise and
    waiting period provisions apply under subsection (b) above, Non-Tandem Stock
    Appreciation Rights may be exercised in whole or in part at any time during
    the option term, by giving written notice of exercise to the Company
    specifying the number of Non-Tandem Stock Appreciation Rights to be
    exercised.

        (d)  PAYMENT.  Upon the exercise of a Non-Tandem Stock Appreciation
    Right a Participant shall be entitled to receive, for each right exercised,
    up to, but no more than, an amount in cash

                                      15
<Page>
    and/or Common Stock (as chosen by the Committee in its sole discretion)
    equal in value to the excess of the Fair Market Value of one share of Common
    Stock on the date the right is exercised over the Fair Market Value of one
    (1) share of Common Stock on the date the right was awarded to the
    Participant.

    8.5  LIMITED STOCK APPRECIATION RIGHTS.  The Committee may, in its sole
discretion, grant Tandem and Non-Tandem Stock Appreciation Rights either as a
general Stock Appreciation Right or as a Limited Stock Appreciation Right.
Limited Stock Appreciation Rights may be exercised only upon a Change in Control
(to the extent provided in an Award agreement granting such Limited Stock
Appreciation Rights) or the occurrence of such other event as the Committee may,
in its sole discretion, designate at the time of grant or thereafter. Upon the
exercise of Limited Stock Appreciation Rights, except as otherwise provided in
an Award agreement, the Participant shall receive in cash or Common Stock, as
determined by the Committee, an amount equal to the amount (1) set forth in
Section 8.2(d) with respect to Tandem Stock Appreciation Rights or (2) set forth
in Section 8.4(d) with respect to Non-Tandem Stock Appreciation Rights.

    8.6  TERMINATION OF EMPLOYMENT OR TERMINATION OF CONSULTANCY.  The following
rules apply with regard to Stock Appreciation Rights upon the Termination of
Employment or Termination of Consultancy of a Participant:

        (a)  TERMINATION BY DEATH.  If a Participant's Termination of Employment
    or Termination of Consultancy is by reason of death, any Stock Appreciation
    Right held by such Participant, unless otherwise determined by the Committee
    at grant or if no rights of the Participant's estate are reduced,
    thereafter, may be exercised, to the extent exercisable at the Participant's
    death, by the legal representative of the estate, at any time within a
    period of one (1) year from the date of such death or until the expiration
    of the stated term of such Stock Appreciation Right, whichever period is the
    shorter.

        (b)  TERMINATION BY REASON OF DISABILITY.  If a Participant's
    Termination of Employment or Termination of Consultancy is by reason of
    Disability, any Stock Appreciation Right held by such participant, unless
    otherwise determined by the Committee at grant or, if no rights of the
    Participant are reduced, thereafter, may be exercised, to the extent
    exercisable at the Participant's termination, by the Participant (or the
    legal representative of the Participant's estate if the Participant dies
    after termination) at any time within a period of one (1) year from the date
    of such termination or until the expiration of the stated term of such Stock
    Appreciation Right, whichever period is the shorter.

        (c)  TERMINATION BY REASON OF RETIREMENT.  If a Participant's
    Termination of Employment or Termination of Consultancy is by reason of
    Retirement, any Stock Appreciation Right held by such Participant, unless
    otherwise determined by the Committee at grant or, if no rights of the
    Participant are reduced, thereafter, shall be fully vested and may
    thereafter be exercised by the Participant at any time within a period of
    one (1) year from the date of such termination or until the expiration of
    the stated term of such right, whichever period is the shorter; provided,
    however, that, if the Participant dies within such one (1) year period, any
    unexercised Non-Tandem Stock Appreciation Right held by such Participant
    shall thereafter be exercisable, to the extent to which it was exercisable
    at the time of death, for a period of one (1) year (or such other period as
    the Committee may specify at grant or if no rights of the Participant are
    reduced, thereafter) from the date of such death or until the expiration of
    the stated term of such right, whichever period is the shorter.

        (d)  INVOLUNTARY TERMINATION WITHOUT CAUSE OR TERMINATION FOR GOOD
    REASON.  If a Participant's Termination of Employment or Termination of
    Consultancy is by involuntary termination without Cause or for Good Reason,
    any Stock Appreciation Right held by such participant, unless otherwise
    determined by the Committee at grant or if no rights of the participant are
    reduced,

                                      16
<Page>
    thereafter, may be exercised, to the extent exercisable at termination, by
    the Participant at any time within a period of ninety (90) days from the
    date of such termination or until the expiration of the stated term of such
    right, whichever period is shorter.

        (e)  TERMINATION WITHOUT GOOD REASON.  If a Participant's Termination of
    Employment or Termination of Consultancy is voluntary but without Good
    Reason and occurs prior to, or more than ninety (90) days after, the
    occurrence of an event which would be grounds for Termination of Employment
    or Termination of Consultancy by the Company for Cause (without regard to
    any notice or cure period requirements), any Stock Appreciation Right held
    by such Participant, unless greater or lesser exercise rights are provided
    by the Committee at the time of grant or, if no rights of the participant
    are reduced, thereafter, may be exercised, to the extent exercisable at
    termination, by the Participant at any time within a period of thirty (30)
    days from the date of such termination, but in no event beyond the
    expiration of the stated term of such Stock Appreciation Right.

        (f)  OTHER TERMINATION.  Unless otherwise determined by the Committee at
    grant, or, if no rights of the Participant are reduced thereafter, if a
    Participant's Termination of Employment or Termination of Consultancy is for
    any reason other than death, Disability, Retirement, Good Reason,
    involuntary termination without Cause or voluntary termination as provided
    in subsection (e) above, any Stock Appreciation Right held by such
    Participant shall thereupon terminate or expire as of the date of
    termination, provided, that (unless the Committee determines a different
    period upon grant, or, if no rights of the Participant are reduced,
    thereafter) in the event the termination is for Cause or is a voluntary
    termination as provided in subsection (e) above, within ninety (90) days
    after occurrence of an event which would be grounds for Termination of
    Employment or Termination of Consultancy by the Company for Cause (without
    regard to any notice or cure period requirement), any Stock Appreciation
    Right held by the Participant at the time of the occurrence of the event
    which would be grounds for Termination of Employment or Termination of
    Consultancy by the Company for Cause shall be deemed to have terminated and
    expired upon occurrence of the event which would be grounds for Termination
    of Employment or Termination of Consultancy by the Company for Cause.

                                   ARTICLE IX

                          NON-EMPLOYEE DIRECTOR AWARDS

    9.1  OPTIONS.  The terms of this Article IX shall apply only to Options
granted to non-employee directors.

    9.2  GRANTS.

        (a)  INITIAL STOCK OPTION GRANT.  Subject to the terms of the Plan, each
    non-employee director of the Company who, as of June 30, 2002, has not
    previously been granted Options under the Plan, shall be granted
    Non-Qualified Stock Options to purchase 50,000 shares of Common Stock as of
    June 30, 2002, or, if later, as of the date the non-employee director begins
    service as a director on the Board.

        (b)  SUBSEQUENT STOCK OPTION GRANTS.  Upon the date of each Annual
    Meeting of Stockholders, each non-employee director shall be granted
    Non-Qualified Stock Options to purchase 16,667 shares of Common Stock (or a
    pro rata portion thereof if the director did not serve the entire year since
    the date of the last annual meeting). These options shall vest in full on
    the date of the fourth Annual Meeting of Stockholders held following the
    date of the grant, provided that the non-employer director is a director on
    the Board on that date.

        (c)  STOCK AWARDS IN CONNECTION WITH MEETINGS.  On the date of each
    annual meeting of stockholders of the Company, each non-employee director
    shall be granted fully-vested shares of

                                      17
<Page>
    Common Stock with a value of $12,000.00 pro-rated for directors who have
    served less than a year since their initial grant. Each new non-employee
    director shall receive a grant of fully vested shares of common stock with a
    value of $12,000 upon appointment or election.

    9.3  NON-QUALIFIED STOCK OPTIONS.  Stock Options granted under this
Article IX shall be Non-Qualified Stock Options.

    9.4  TERMS OF OPTIONS.  Options granted under this Article shall be subject
to the following terms and conditions and shall be in such form and contain such
additional terms and conditions, not inconsistent with terms of this Plan, as
the Committee shall deem desirable:

        (a)  OPTION PRICE.  The purchase price per share of Common Stock
    deliverable upon the exercise of an Option granted pursuant to Section 9.2
    shall be 100% of the Fair Market Value of such Common Stock at the time of
    the grant of the Option (the "Purchase Price"), or the par value of the
    Common Stock, whichever is greater.

        (b)  EXERCISABILITY.  Except as otherwise provided herein, twenty-five
    percent (25%) of any Option granted under Section 9.2(a) shall be
    exercisable on or after each of the four anniversaries following the date of
    grant.

        (c)  METHOD FOR EXERCISE.  A non-employee director electing to exercise
    one or more Options shall give written notice of exercise to the Company
    specifying the number of shares to be purchased. Common Stock purchased
    pursuant to the exercise of Options shall be paid for at the time of
    exercise in cash or by delivery of unencumbered Common Stock owned by the
    non-employee director or a combination thereof or by such other method as
    approved by the Board.

        (d)  OPTION TERM.  Except as otherwise provided herein, if not
    previously exercised each Option shall expire upon the tenth anniversary of
    the date of the grant thereof.

    9.5  TERMINATION OF DIRECTORSHIP.  The following rules apply with regard to
Options upon the Termination of Directorship:

        (a)  DEATH, DISABILITY OR OTHERWISE CEASING TO BE A DIRECTOR OTHER THAN
    FOR CAUSE.  Except as otherwise provided herein, upon the Termination of
    Directorship, on account of Disability, death, Retirement, resignation,
    failure to stand for reelection or failure to be reelected or otherwise
    other than as set forth in (b) below, all outstanding Options then
    exercisable and not exercised by the Participant prior to such Termination
    of Directorship shall remain exercisable, to the extent exercisable at the
    Termination of Directorship, by the Participant or, in the case of death, by
    the Participant's estate or by the person given authority to exercise such
    Options by his or her will or by operation of law, for the remainder of the
    stated term of such Options.

        (b)  CAUSE.  Upon removal, failure to stand for reelection or failure to
    be renominated for Cause, or if the Company obtains or discovers information
    after Termination of Directorship that such Participant had engaged in
    conduct that would have justified a removal for Cause during such
    directorship, all outstanding Options of such Participant shall immediately
    terminate and shall be null and void.

        (c)  CANCELLATION OF OPTIONS.  No Options that were not exercisable
    during the period such person serves as a director shall thereafter become
    exercisable upon a Termination of Directorship for any reason or no reason
    whatsoever, and such Options shall terminate and become null and void upon a
    Termination of Directorship.

    9.6  CHANGES.  The Awards to a non-employee director shall be subject to
Sections 4.2(a), (b) and (c) of the Plan and this Section 9.6, but shall not be
subject to Section 4.2(d).

                                      18
<Page>
    9.7  If the Company shall not be the surviving corporation in any merger or
consolidation, or if the Company is to be dissolved or liquidated, then, unless
the surviving corporation assumes the Options or substitutes new Options which
are determined by the Board in its sole discretion to be substantially similar
in nature and equivalent in terms and value for Options then outstanding, upon
the effective date of such merger, consolidation, liquidation or dissolution,
any unexercised Options shall expire without additional compensation to the
holder thereof; provided, that, the Committee shall deliver notice to each
non-employee director at least twenty (20) days prior to the date of
consummation of such merger, consolidation, dissolution or liquidation which
would result in the expiration of the Options and during the period from the
date on which such notice of termination is delivered to the consummation of the
merger, consolidation, dissolution or liquidation, such Participant shall have
the right to exercise in full effective as of such consummation all Options that
are then outstanding (without regard to limitations on exercise otherwise
contained in the Options) but contingent on occurrence of the merger,
consolidation, dissolution or liquidation, and, provided that, if the
contemplated transaction does not take place within a ninety (90) day period
after giving such notice for any reason whatsoever, the notice, accelerated
vesting and exercise shall be null and void and, if and when appropriate, new
notice shall be given as aforesaid.

                                   ARTICLE X

                              NON-TRANSFERABILITY

    Except as provided in the last sentence of this Article X, no Stock Option
or Stock Appreciation Right granted to an Employee or Consultant shall be
Transferable by the Participant otherwise than by will or by the laws of descent
and distribution. All Stock Options and all Stock Appreciation Rights granted to
an Employee or Consultant shall be exercisable, during the Participant's
lifetime, only by the Participant. Tandem Stock Appreciation Rights shall be
Transferable, to the extent permitted above, only with the underlying Stock
Option. Shares of Restricted Stock under Article VII may not be Transferred
prior to the date on which shares are issued, or, if later, the date on which
any applicable restriction lapses. No Award shall, except as otherwise
specifically provided by law or herein, be Transferable in any manner, and any
attempt to Transfer any such Award shall be void, and no such Award shall in any
manner be liable for or subject to the debts, contracts, liabilities,
engagements or torts of any person who shall be entitled to such Award, nor
shall it be subject to attachment or legal process for or against such person.
All Stock Options granted to non-employee directors shall be Transferable solely
to such non-employee director's principal employer (other than the Company or an
Affiliate) at the time of grant if the terms of such non-employee director's
employment so require. Notwithstanding the foregoing, the Committee may
determine at the time of grant or thereafter, that a Non-Qualified Stock Option
that is otherwise not transferable pursuant to this Article X is transferable in
whole or part and in such circumstances, and under such conditions, as specified
by the Committee.

                                   ARTICLE XI

                          CHANGE IN CONTROL PROVISIONS

    11.1  BENEFITS.  In the event of a Change in Control of the Company (as
defined below), except as otherwise provided by the Committee upon the grant of
an Award, each Participant shall have the following benefits:

        (a) Unless otherwise provided in the applicable award agreement, all
    outstanding Options and the related Tandem Stock Appreciation Rights and
    Non-Tandem Stock Appreciation Rights of such Participant granted prior to
    the Change in Control shall be fully vested and immediately exercisable in
    their entirety. The Committee, in its sole discretion, may provide for the
    purchase of any such Stock Options by the Company for an amount of cash
    equal to the excess of the Change in Control Price (as defined below) of the
    shares of Common Stock covered by such Stock

                                      19
<Page>
    Options, over the aggregate exercise price of such Stock Options. For
    purposes of this Section 11.1, "Change in Control Price" shall mean the
    higher of (i) the highest price per share of Common Stock paid in any
    transaction related to a Change in Control of the Company, or (ii) the
    highest Fair Market Value per share of Common Stock at any time during the
    sixty (60) day period preceding a Change in Control.

        (b) Unless otherwise provided in the applicable award agreement, the
    restrictions to which any shares of Restricted Stock of such Participant
    granted prior to the Change in Control are subject shall lapse as if the
    applicable Restriction Period had ended upon such Change in Control.

        (c) Notwithstanding anything else herein, the Committee may, in its sole
    discretion, provide for accelerated vesting of an Award (other than a grant
    to a non-employee director pursuant to Article IX hereof), upon a
    Termination of Employment during the Pre-Change in Control Period. Unless
    otherwise determined by the Committee, the "Pre-Change in Control Period"
    shall mean the one hundred eighty (180) day period prior to a Change in
    Control.

    11.2  CHANGE IN CONTROL.  A "Change in Control" shall be deemed to have
occurred:

        (a) upon any "person" as such term is used in Sections 13(d) and
    14(d) of the Exchange Act (other than the Company, any trustee or other
    fiduciary holding securities under any employee benefit plan of the Company,
    or any company owned, directly or indirectly, by the stockholders of the
    Company in substantially the same proportions as their ownership of Common
    Stock of the Company, becoming the owner (as defined in Rule 13d-3 under the
    Exchange Act), directly or indirectly, of securities of the Company
    representing forty percent (40%) or more of the combined voting power of the
    Company's then outstanding securities (including, without limitation,
    securities owned at the time of any increase in ownership);

        (b) during any period of two consecutive years, individuals who at the
    beginning of such period constitute the Board of Directors, and any new
    director (other than a director designated by a person who has entered into
    an agreement with the Company to effect a transaction described in paragraph
    (a), (c), or (d) of this section) or a director whose initial assumption of
    office occurs as a result of either an actual or threatened election contest
    (as such terms are used in Rule 14a-11 of Regulation 14A promulgated under
    the Exchange Act) or other actual or threatened solicitation of proxies or
    consents by or on behalf of a person other than the Board of Directors of
    the Company whose election by the Board of Directors or nomination for
    election by the Company's stockholders was approved by a vote of at least
    two-thirds of the directors then still in office who either were directors
    at the beginning of the two-year period or whose election or nomination for
    election was previously so approved, cease for any reason to constitute at
    least a majority of the Board of Directors;

        (c) upon the merger or consolidation of the Company with any other
    corporation, other than a merger or consolidation which would result in the
    voting securities of the Company outstanding immediately prior thereto
    continuing to represent (either by remaining outstanding or by being
    converted into voting securities of the surviving entity) more than fifty
    percent (50%) of the combined voting power of the voting securities of the
    Company or such surviving entity outstanding immediately after such merger
    or consolidation; provided, however, that a merger or consolidation effected
    to implement a recapitalization of the Company (or similar transaction) in
    which no person (other than those covered by the exceptions in (a) above)
    acquires more than forty percent (40%) of the combined voting power of the
    Company's then outstanding securities shall not constitute a Change in
    Control of the Company; or

        (d) upon the stockholder's of the Company approval of a plan of complete
    liquidation of the Company or an agreement for the sale or disposition by
    the Company of all or substantially all of the Company's assets other than
    the sale of all or substantially all of the assets of the Company to

                                      20
<Page>
    a person or persons who beneficially own, directly or indirectly, at least
    fifty percent (50%) or more of the combined voting power of the outstanding
    voting securities of the Company at the time of the sale.

                                  ARTICLE XII

                      TERMINATION OR AMENDMENT OF THE PLAN

    12.1  TERMINATION OR AMENDMENT.  Notwithstanding any other provision of this
Plan, the Board may at any time, and from time to time, amend, in whole or in
part, any or all of the provisions of the Plan, or suspend or terminate it
entirely, retroactively or otherwise; provided, however, that, unless otherwise
required by law or specifically provided herein, the rights of a Participant
with respect to Awards granted prior to such amendment, suspension or
termination, may not be impaired without the consent of such Participant and,
provided further, without the approval of the stockholders of the Company, if
and to the extent required by the applicable provisions of Rule 16b-3 or, if and
to the extent required, under the applicable provisions of Section 162(m) of the
Code, or with regard to Incentive Stock Options, Section 422 of the Code, no
amendment may be made which would (i) except as permitted in Section 4.1(a),
increase the aggregate number of shares of Common Stock that may be issued under
this Plan; (ii) increase the maximum individual Participant limitations for a
fiscal year under Section 4.1(b); (iii) change the classification of employees,
Consultants, and non-employee directors eligible to receive Awards under this
Plan; (iv) decrease the minimum option price of any Stock Option; (v) extend the
maximum option period under Section 6.3; (vi) change any rights under the Plan
with regard to non-employee directors; or (vii) require stockholder approval in
order for the Plan to continue to comply with the applicable provisions, if any,
of Rule 16b-3, Section 162(m) of the Code, any applicable state law, or, with
regard to Incentive Stock Options, Section 422 of the Code.

    In no event may the Plan be amended without the approval of the stockholders
of the Company in accordance with the applicable laws or other requirements to
increase the aggregate number of shares of Common Stock that may be issued under
the Plan, decrease the minimum option price of any Stock Option, or to make any
other amendment that would require stockholder approval under the rules of any
exchange or system on which the Company's securities are listed or traded at the
request of the Company.

    The Committee may amend the terms of any Award theretofore granted,
prospectively or retroactively, but, subject to Article IV above or as otherwise
specifically provided herein, no such amendment or other action by the Committee
shall impair the rights of any holder without the holder's consent.

                                  ARTICLE XIII

                                 UNFUNDED PLAN

    This Plan is intended to constitute an "unfunded" plan for incentive
compensation. With respect to any payments as to which a Participant has a fixed
and vested interest but which are not yet made to a Participant by the Company,
nothing contained herein shall give any such Participant any rights that are
greater than those of a general creditor of the Company.

                                  ARTICLE XIV

                               GENERAL PROVISIONS

    14.1  LEGEND.  The Committee may require each person receiving shares
pursuant to an Award under the Plan to represent to and agree with the Company
in writing that the Participant is acquiring the shares without a view to
distribution thereof. In addition to any legend required by this Plan, the

                                      21
<Page>
certificates for such shares may include any legend which the Committee deems
appropriate to reflect any restrictions on Transfer.

    All certificates for shares of Common Stock delivered under the Plan shall
be subject to such stock transfer orders and other restrictions as the Committee
may deem advisable under the rules, regulations and other requirements of the
Securities and Exchange Commission, any stock exchange upon which the Common
Stock is then listed or any national securities association system upon whose
system the Common Stock is then quoted, any applicable federal or state
securities law, and any applicable corporate law, and the Committee may cause a
legend or legends to be put on any such certificates to make appropriate
reference to such restrictions.

    14.2  OTHER PLANS.  Nothing contained in this Plan shall prevent the Board
from adopting other or additional compensation arrangements, subject to
stockholder approval if such approval is required; and such arrangements may be
either generally applicable or applicable only in specific cases.

    14.3  NO RIGHT TO EMPLOYMENT/DIRECTORSHIP.  Neither this Plan nor the grant
of any Award hereunder shall give any Participant or other employee any right
with respect to continuance of employment by the Company or any Affiliate, nor
shall they be a limitation in any way on the right of the Company or any
Affiliate by which an employee is employed to terminate his employment at any
time. Neither this Plan nor the grant of any Award hereunder shall impose any
obligations on the Company to retain any Participant as a director nor shall it
impose on the part of any Participant any obligation to remain as a director of
the Company.

    14.4  WITHHOLDING OF TAXES.  The Company shall have the right to deduct from
any payment to be made to a Participant, or to otherwise require, prior to the
issuance or delivery of any shares of Common Stock or the payment of any cash
hereunder, payment by the Participant of, any Federal, state or local taxes
required by law to be withheld. Upon the vesting of Restricted Stock, or upon
making an election under Code Section 83(b), a Participant shall pay all
required withholding to the Company.

    The Committee may permit any such withholding obligation with regard to any
Participant to be satisfied by reducing the number of shares of Common Stock
otherwise deliverable or by delivering shares of Common Stock already owned. Any
fraction of a share of Common Stock required to satisfy such tax obligations
shall be disregarded and the amount due shall be paid instead in cash by the
Participant.

    14.5  LISTING AND OTHER CONDITIONS.

        (a) As long as the Common Stock is listed on a national securities
    exchange or system sponsored by a national securities association, the issue
    of any shares of Common Stock pursuant to an Award shall be conditioned upon
    such shares being listed on such exchange or system. The Company shall have
    no obligation to issue such shares unless and until such shares are so
    listed, and the right to exercise any Option with respect to such shares
    shall be suspended until such listing has been effected.

        (b) If at any time counsel to the Company shall be of the opinion that
    any sale or delivery of shares of Common Stock pursuant to an Award is or
    may in the circumstances be unlawful or result in the imposition of excise
    taxes on the Company under the statutes, rules or regulations of any
    applicable jurisdiction, the Company shall have no obligation to make such
    sale or delivery, or to make any application or to effect or to maintain any
    qualification or registration under the Securities Act of 1933, as amended,
    or otherwise with respect to shares of Common Stock or Awards, and the right
    to exercise any Option shall be suspended until, in the opinion of said
    counsel, such sale or delivery shall be lawful or will not result in the
    imposition of excise taxes on the Company.

                                      22
<Page>
        (c) Upon termination of any period of suspension under this
    Section 14.5, any Award affected by such suspension which shall not then
    have expired or terminated shall be reinstated as to all shares available
    before such suspension and as to shares which would otherwise have become
    available during the period of such suspension, but no such suspension shall
    extend the term of any Option.

    14.6  GOVERNING LAW.  This Plan shall be governed and construed in
accordance with the laws of the state of incorporation of the Company
(regardless of the law that might otherwise govern under applicable principles
of conflict of laws).

    14.7  CONSTRUCTION.  Wherever any words are used in this Plan in the
masculine gender they shall be construed as though they were also used in the
feminine gender in all cases where they would so apply, and wherever any words
are used herein in the singular form they shall be construed as though they were
also used in the plural form in all cases where they would so apply. To the
extent applicable, the Plan shall be limited, construed and interpreted in a
manner so as to comply with the applicable requirements of Rule 16b-3 and
Section 162(m) of the Code; however, noncompliance with Rule 16b-3 or
Section 162(m) of the Code shall have no impact on the effectiveness of a Stock
Option granted under the Plan.

    14.8  OTHER BENEFITS.  No Award payment under this Plan shall be deemed
compensation for purposes of computing benefits under any retirement plan of the
Company or its subsidiaries nor affect any benefits under any other benefit plan
now or subsequently in effect under which the availability or amount of benefits
is related to the level of compensation.

    14.9  COSTS.  The Company shall bear all expenses included in administering
this Plan, including expenses of issuing Common Stock pursuant to any Awards
hereunder.

    14.10  NO RIGHT TO SAME BENEFITS.  The provisions of Awards need not be the
same with respect to each Participant, and such Awards to individual
Participants need not be the same in subsequent years.

    14.11  DEATH/DISABILITY.  The Committee may in its discretion require the
transferee of a Participant to supply it with written notice of the
Participant's death or Disability and to supply it with a copy of the will (in
the case of the Participant's death) or such other evidence as the Committee
deems necessary to establish the validity of the transfer of an Award. The
Committee may also require the agreement of the transferee to be bound by all of
the terms and conditions of the Plan.

    14.12  SECTION 16(b) OF THE EXCHANGE ACT.  All elections and transactions
under the Plan by persons subject to Section 16 of the Exchange Act involving
shares of Common Stock are intended to comply with any applicable condition
under Rule 16b-3. The Committee may establish and adopt written administrative
guidelines, designed to facilitate compliance with Section 16(b) of the Exchange
Act, as it may deem necessary or proper for the administration and operation of
the Plan and the transaction of business thereunder.

    14.13  SEVERABILITY OF PROVISIONS.  If any provision of the Plan shall be
held invalid or unenforceable, such invalidity or unenforceability shall not
affect any other provisions hereof, and the Plan shall be construed and enforced
as if such provisions had not been included.

    14.14  HEADINGS AND CAPTIONS.  The headings and captions herein are provided
for reference and convenience only, shall not be considered part of the Plan,
and shall not be employed in the construction of the Plan.

                                      23
<Page>
                                   ARTICLE XV

                                  TERM OF PLAN

    No Award shall be granted pursuant to the Plan on or after the tenth
anniversary of the earlier of the date the Plan is adopted or the date of
stockholder approval, but Awards granted prior to such tenth anniversary may
extend beyond that date.

                                  ARTICLE XVI

                                  NAME OF PLAN

    This Plan shall be known as the 24/7 Real Media, Inc. 2002 Stock Incentive
Plan.

                                      24<Page>

                                                                     Exhibit 4.2

                                 EMC CORPORATION
                             STOCK OPTION AGREEMENT

                           NON-QUALIFIED STOCK OPTION

     AGREEMENT entered into as of the ___ day of ______, _____ by and between
EMC Corporation, a Massachusetts corporation (the "Company"), and the
undersigned individual (the "Optionee").

     WHEREAS, the Company desires to grant the Optionee a non-qualified stock
option to acquire shares of the Company's common stock, $.01 par value per share
(the "Common Stock"); and

     WHEREAS, the Optionee desires to accept such option subject to the terms
and conditions of this Agreement.

     NOW THEREFORE, in consideration of the premises and of the mutual covenants
and agreements contained herein, the Company and the Optionee, intending to be
legally bound, hereby agree as follows:

     1. GRANT OF OPTION. The Company hereby grants to the Optionee a
non-qualified stock option (the "Option") to purchase all (or any part) of
_______ shares of Common Stock (the "Shares") on the terms and conditions
hereinafter set forth. This option shall not be treated as an incentive stock
option under Section 422A of the Internal Revenue Code of 1986, as amended.

     2. PURCHASE PRICE. The purchase price ("Purchase Price") for the Shares
covered by the Option shall be the closing price of a share of Common Stock on
_________, or $_____ per share.

     3. VESTING AND EXERCISABILITY. On or after the first anniversary of the
date hereof, twenty percent (20%) of the Shares subject to the Option shall vest
and be exercisable, and on or after each of the next four successive
anniversaries of the date hereof, an additional twenty percent (20%) of the
Shares shall vest and be exercisable.

     4. TERM OF OPTION.

        (a) This Option shall expire not later than ten (10) years from the date
            hereof; PROVIDED, HOWEVER, that if the Optionee ceases to serve as
            Clerk of the Company for any reason, whether voluntary or
            involuntary (including death), this Option shall terminate on the
            date such service terminates with respect to any Shares subject to
            options which are vested or unvested on such date.

     5. MANNER OF EXERCISE OF OPTION.

        (a) To the extent that the right to purchase shares under the Option has
            vested and is in effect in accordance with the terms hereof, the
            number of available Shares may be purchased in full (or in part) by
            giving written notice to the Company stating the number of Shares
            purchased and accompanied by payment in full for such Shares.
            Payment shall be either in cash or by a certified or cashier's check
            or money order payable to the Company.

        (b) The Company shall at all times during the term of the Option reserve
            and keep available such number of shares of its Common Stock as will
            be sufficient to satisfy the requirements of the Option.

        (c) Notwithstanding the provision of Section 5(a) of this Agreement, the
            Company may delay the issuance of Shares covered by the vesting of
            this Option and the delivery of a certificate for such Shares until
            one of the following conditions shall be satisfied:

            (i) The Shares purchased pursuant to a vested Option are at the time
                of the issuance of such Shares effectively registered or
                qualified under applicable federal and state securities laws now
                in effect or as hereafter amended; or

            (ii) Counsel for the Company shall have given an opinion that such
                Shares are exempt from registration and qualification under
                applicable federal and state securities laws now in effect or as
                hereafter amended.

            (iii) The Company shall use its best efforts to promptly meet the
                conditions under items (i) and (ii) above.

<Page>

     6. CHANGES IN STOCK.

     In the event of a stock dividend, stock split or other change in corporate
structure or capitalization affecting the Common Stock, the Board of Directors
or the Compensation Committee (the "Committee") shall make appropriate
adjustments in the number and kind of shares of stock remaining subject to this
Option outstanding at the time of such change and the Purchase Price. Subject to
any required action by the stockholders, if the Company shall be the surviving
corporation in any merger or consolidation (other than a merger or consolidation
in which the Company survives but in which a majority of its outstanding shares
are converted into securities of another corporation or are exchanged for other
consideration), this Option shall pertain and apply to the securities which a
holder of the number of shares of stock of the Company then subject to this
Option would have been entitled to receive, but a dissolution or liquidation of
the Company or a merger or consolidation in which the Company is not the
surviving corporation or in which a majority of its outstanding shares are so
converted or exchanged shall cause this Option to terminate; provided that if
any such dissolution, liquidation, merger or consolidation is contemplated, the
Company shall either arrange for any corporation succeeding to the business and
assets of the Company to issue to the Optionee replacement options on such
corporation's stock which will to the extent possible preserve the value of the
outstanding Option or shall make the outstanding Option fully exercisable at
least 20 days before the effective date of any such dissolution, liquidation,
merger or consolidation. The existence of this Agreement shall not prevent any
such change or other transaction and the Optionee shall not have any right
except as herein expressly set forth.

     7. NO SPECIAL RIGHTS. Nothing contained in this Agreement shall be
construed or deemed by any person under any circumstances to bind the Company or
any of its subsidiaries to continue the service of the Optionee as Clerk of the
Company for the period during which this Option may vest.

     8. RIGHTS AS A SHAREHOLDER. The Optionee shall not have any of the rights
of a shareholder of the Company in respect of the Shares until one or more
certificates for such Shares shall be delivered to the Optionee upon the
purchase of Shares pursuant to a vested Option in accordance with this
Agreement. Except as otherwise expressly provided herein, no adjustment shall be
made for dividends or other rights for which the record date is prior to the
date such stock certificate is issued.

     9. NOTICE OF DISPOSITION. Participant shall notify the Company when he
makes any disposition of the Shares acquired upon exercise of this Option,
whether by sale, gift or otherwise.

     10. APPLICATION OF STOCK TRANSFER AGREEMENT. If at the time when this
Option is exercised, the Company is a party to any agreement restricting the
transfer of any outstanding shares of its Common Stock, this Option may be
exercised only if the Shares so acquired are made subject to the transfer
restrictions set forth in that agreement (or if more than one such agreement is
then in effect), the agreement specified by the Board of Directors or the
Committee.

     11. TAX EFFECTS OF EXERCISE OF OPTION. At the time of exercise of any part
of this Option, Optionee or his legal representative will be liable for federal
and state taxes for the gain between the exercise price of the Shares and the
then current fair market value of such shares. The Company has no liability or
responsibility to withhold any amounts to cover this federal or state tax
liability.

     12. NON-TRANSFERABILITY OF OPTION. This Option is not transferable by the
Optionee otherwise than by will or the laws of descent and distribution, and is
exercisable during the Participant's lifetime only by the Participant.

     13. CANCELLATION AND RESCISSION OF OPTION. The Committee or the Board of
Directors may cancel, rescind, suspend or otherwise limit or restrict this
Option at any time if the Optionee engages in "Detrimental Activity" (as defined
below). Furthermore, in the event Optionee engages in Detrimental Activity at
any time prior to or during the six months after any exercise of this Option (or
portion hereof), such exercise may be rescinded until the later of (i) two years
after such exercise or (ii) two years after such Detrimental Activity. Upon such
rescission, the Company at its sole option may require the Optionee to (i)
deliver and transfer to the Company the shares of Common Stock received by the
Optionee upon such exercise, (ii) pay to the Company an amount equal to any
realized gain received by the Optionee from such exercise, or (iii) pay to the
Company an amount equal to the market price (as of the exercise date) of the
Common Stock acquired upon such exercise minus the respective exercise price.
The Company shall be entitled to set-off any such amount owed to the Company
against any amount owed to the Optionee by the Company. As used in this Section
13, "Detrimental Activity" shall include: (i) the failure to comply with the
terms of this Agreement; (ii) the failure to comply with any term set forth in
the Key Employee Agreement (irrespective of whether the Optionee is a party to
the Key Employee Agreement); (iii) any activity that results in removal of the
Optionee for cause; (iv) a violation of any rule, policy, procedure or guideline
of the Company; (v) the Optionee being convicted of, or entering a guilty plea
with respect to a crime whether or not connected with the Company; or (vi) any
other conduct or act determined to be injurious, detrimental or prejudicial to
any interest of the Company.

                  [Remainder of Page Intentionally Left Blank]

<Page>

                                 EMC CORPORATION
                             STOCK OPTION AGREEMENT

                           COUNTERPART SIGNATURE PAGE

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed
and its corporate seal to be hereto affixed by its officer thereunto duly
authorized, and the Optionee has hereunto set his hand and seal, all as of the
day and year first above written.

EMC CORPORATION                            OPTIONEE

By:
    ----------------------------------     ----------------------------------
     NAME:                                 (SIGNATURE)
     TITLE:

                                           ----------------------------------
                                           (PRINT NAME)

                                           ----------------------------------
                                           (print address)

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