Document:

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                                                                Exhibit 10.2

Vertical Networks, Inc.                                            8/24/2004

Confidential Materials omitted and filed separately with the Securities and
Exchange Commission. Asterisks denote omissions.

                           SOFTWARE PURCHASE AGREEMENT

          THIS Software Purchase Agreement (the "Agreement") dated as of August
20, 2004 ("Effective Date") is by and between Vertical Networks, Inc., a
corporation organized and existing under the laws of the State of California and
having its principal office at 1148 East Arques Avenue, Sunnyvale, CA 94086
(hereinafter referred to as "Licensor"), and CVS Pharmacy, Inc., a corporation
organized and existing under the laws of the State of Rhode Island and having
its principal place of business at One CVS Drive, Woonsocket, RI 02895
(hereinafter referred to as "CVS").

                                   WITNESSETH:

          WHEREAS, Licensor currently has the right and desires to license
INSTANTOFFICE VOICE SERVER SOFTWARE ("IOVS Software"), as defined below, to CVS,
such software to be embedded in, installed on, or used in conjunction with
equipment manufactured and/or sold by Licensor and purchased by CVS either
directly or from or through AT&T Solutions, Inc.; and

          WHEREAS, Licensor also desires to sell CVS rights to all enhancements,
modifications, upgrades and new releases ("Upgrades") to IOVS Software; and

          WHEREAS, CVS desires to purchase licenses to IOVS Software and rights
to Upgrades from Licensor;

          NOW, THEREFORE, in consideration of the promises and mutual covenants
contained herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties wish to agree as
follows:

  I.   SCOPE OF THE AGREEMENT.

          a.   SOFTWARE LICENSE. CVS will purchase licenses to Licensor's IOVS
               Software. A standard list of components and a general description
               of IOVS Software is attached hereto as Exhibit C.

          b.   RIGHTS TO UPGRADES. CVS will have the right to purchase upgrades
               to the IOVS Software listed in Exhibit A to the Agreement
               (hereinafter, "Upgrades").

  II.  TERMS OF IOVS SOFTWARE PURCHASE.

          a.   COMMITMENT FOR PURCHASE. CVS commits to purchase a License for a
               Pilot implementation and a Site License for the network rollout
               of the IOVS Software from the Licensor, per the pricing set forth
               in Exhibit B and per the payment terms set forth in Section IV
               (d). The payment terms set out in Section IV (d) assume the
               successful completion of a pilot implementation of CVS's Rapid
               Prescription Refill Application project on or before December 31,
               2004. In the event, however, that the pilot implementation is not
               completed by this date, the quarterly payments for the Site
               License that are scheduled to commence in January 2005, will be
               deferred until such time as the pilot implementation has been
               successfully completed. At that time, all such deferred payments
               will become immediately due and payable. "Rapid Prescription
               Refill Application Project" means the implementation of the
               automated prescription refill application utilizing the
               InstantOffice Voice Services platform and a custom application
               developed by CVS utilizing VxML technology.

          b.   LICENSE. CVS's rights to, and use of, IOVS Software are governed
               solely by the terms of this Agreement, including the Software
               License Agreement for IOVS

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Vertical Networks, Inc.                                                8/24/2004

               Software attached hereto as Exhibit D and any updates thereto
               agreed to in writing by the parties.

          c.   DELIVERY; NUMBER OF LICENSES. Licensor shall deliver one copy of
               the IOVS Software to CVS and hereby authorizes CVS to use such
               copy subject to the terms of the Pilot implementation and Site
               License indicated in Section II (a) of the Agreement and to the
               number and type of licenses purchased hereunder, as specified in
               Exhibit B to this Agreement.

          d.   WARRANTY OF SOFTWARE FUNCTION. For a period of ninety (90) days
               after the initial implementation at CVS of the "released version"
               of IOVS Software, Licensor warrants that the IOVS Software
               provided hereunder will function according to Licensor's
               specifications for such product (as set out in Exhibit C hereto),
               including the ability to support a number of InstantOffice
               systems that is equal to the number of CVS stores where such IOVS
               Software has been deployed, subject to the limits of this site
               license as set out in Section IV (b). If the IOVS Software fails
               to perform as warranted and Licensor is unable to resolve the
               problem within a forty five (45) day period, starting from the
               initial date of notice to Vertical's Level 3 technical assistance
               center, and such failure is confirmed pursuant to the arbitration
               provisions of Section VII of the Agreement, CVS's sole recourse
               will be for Licensor to refund the Purchase Price payments made
               to date, as identified in Section IV below associated with the
               initial purchase of the IOVS Software. Notwithstanding the
               foregoing, Licensor shall use reasonable commercial efforts to
               assist CVS in the successful implementation and deployment of
               CVS's Rapid Refill Application.

          e.   Warranty of Software Upgrades. For a period of ninety (90) days
               after the implementation at CVS of an "upgrade" of IOVS Software,
               Licensor warrants that the IOVS Software upgrade provided
               hereunder will function according to Licensor's specifications
               for such product (as set out in Exhibit C hereto), including the
               ability to support a number of InstantOffice systems that is
               equal to the number of CVS stores where such IOVS Software has
               been deployed, subject to the limits of this site license as set
               out in Section IV (b). If the IOVS Software upgrade fails to
               perform as warranted and Licensor is unable to resolve the
               problem within a forty five (45) day period, starting from the
               initial date of notice to Vertical's Level 3 technical assistance
               center, and such failure is confirmed pursuant to the arbitration
               provisions of Section VII of the Agreement, CVS's sole recourse
               will be for Licensor to refund the Software Subscription Services
               payments made to date, as identified in Section IV below
               associated with the OPTION TO PURCHASE RIGHTS TO IOVS SOFTWARE.

          f.   PROBLEM DIAGNOSIS AND REPAIR. Licensor agrees to assist CVS's
               Store Technical Services organization in diagnosing and repairing
               any defects in the IOVS Software that disrupts CVS's ability to
               perform its normal store business function and/or impacts CVS's
               employees ability to perform their work.

  III. TERMS OF RIGHTS TO UPGRADE PURCHASE

          a.   TERMS. Upgrades to the IOVS Software provided by Licensor to CVS
               pursuant to this Amendment are for use as provided herein and
               otherwise in accordance with the terms of the Agreement.

          b.   LICENSE. CVS's rights to, and use of, the Upgrades are governed
               by the Software License Agreement for IOVS Software attached
               hereto as Exhibit D and any updates thereto, rather than by the
               General Description attached as Exhibit C to the Agreement.

  IV.  FEES AND CHARGES

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          a.   PURCHASE PRICE FOR IOVS SOFTWARE. For the purchase of a License
               for a Pilot implementation and a Site License for the network
               rollout on or before August 31, 2004 (as evidenced by a single
               irrevocable purchase order or similar commitment, in form and
               substance acceptable to Licensor), CVS shall pay Licensor the
               price for IOVS Software set forth in Exhibit B.

          b.   SITE LICENSE. The Site License for the network rollout shall give
               CVS the right to install IOVS Software in the lesser of (a) 6,500
               sites and (b) the total number of sites owned by CVS on the sixth
               (6th) anniversary of the Effective Date.

          c.   OPTION TO PURCHASE RIGHTS TO IOVS SOFTWARE UPGRADES. The right to
               receive Upgrades for the first year from the Effective Date is
               included in the initial purchase price of the Site License for
               IOVS Software. Following the first year, in the event that CVS
               wishes to exercise their option to purchase the rights to further
               future Upgrades, CVS shall pay Licensor an annual fee that shall
               be set at $[**] for the second year, regardless of the number
               of sites installed, and at $[**] for the third year.
               Thereafter, the annual software subscription service (SWS) fee
               shall not be increased by Licensor at more than [**] percent
               ([**]%) per year, subject to the same restrictions on the number
               of sites as set out in Site License above. Such fee shall give
               CVS the right to receive Upgrades to the IOVS Software listed
               in Exhibit A for all CVS sites where such IOVS Software is
               installed, up to the limits of this site license, as set out in
               Section IV (b). Licensor must receive irrevocable purchase orders
               from CVS in respect of the purchase of Upgrades on or before the
               date that the prior right to Upgrades expires. Payment will be
               subject to the terms of Section IV (d) below.

          d.   PAYMENT TERMS. Payment of all fees and other charges due
               hereunder is due forty-five (45) days from their respective
               invoice date. Based on the prices set out in Appendix B, an
               initial invoice for $[**] shall be issued on the Effective
               Date and invoices for the balance of the IOVS Software purchase
               price shall be issued in equal amounts over the six (6) quarters
               commencing on January 1, 2005, subject to the terms set forth in
               Section II (a).

  V.   LACK OF IMPLIED WARRANTY; LIMITATION OF LIABILITY

          a.   DISCLAIMER. LICENSOR SHALL USE REASONABLE COMMERCIAL EFFORTS TO
               PERFORM ALL SERVICES IN ACCORDANCE WITH GENERALLY ACCEPTED
               STANDARDS IN THE INDUSTRY. EXCEPT FOR THE WARRANTY IN THE
               PRECEDING SENTENCE AS WELL AS THE WARRANTY OF SOFTWARE FUNCTION
               AS DETAILED IN SECTION II (d), LICENSOR MAKES NO WARRANTIES,
               EXPRESS OR IMPLIED, WITH RESPECT TO ANY OF THE PRODUCTS OR
               SERVICES PROVIDED HEREUNDER. LICENSOR DISCLAIMS ALL OTHER
               WARRANTIES, INCLUDING BUT NOT LIMITED TO IMPLIED WARRANTIES OF
               MERCHANTABILITY, FITNESS FOR A PARTICULAR PURPOSE AND
               NONINFRINGEMENT.

          b.   LIMITATION OF LIABILITY. LICENSOR'S LIABILITY ARISING OUT OF THIS
               AGREEMENT, SALE OF THE IOVS SOFTWARE, UPGRADES OR PROVISION OF
               SERVICES RELATED THERETOR SHALL BE LIMITED TO THE AMOUNT PAID BY
               CVS HEREUNDER. EXCEPT FOR BODILY INJURY OF A PERSON, IN NO EVENT
               SHALL EITHER PARTY BE LIABLE TO THE OTHER PARTY OR ANY OTHER
               ENTITY FOR ANY SPECIAL, CONSEQUENTIAL, INCIDENTAL OR INDIRECT
               DAMAGES, HOWEVER CAUSED, ON ANY THEORY OF LIABILITY, WHETHER OR
               NOT LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES.
               THESE LIMITATIONS SHALL APPLY NOTWITHSTANDING ANY FAILURE OF
               ESSENTIAL PURPOSE OF ANY LIMITED REMEDY.

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Vertical Networks, Inc.                                                8/24/2004

  VI.  GENERAL

          a.   ASSIGNMENT. Neither party shall assign this Agreement without the
               prior written consent of the other party, which consent shall not
               be unreasonably withheld.

          b.   WAIVER. No waiver of any of the provisions of this Agreement or
               the failure to exercise any right herein shall be deemed nor
               shall constitute a waiver of any other provision, whether or not
               similar, nor shall a waiver be deemed a continuing waiver.

          c.   BINDING EFFECT. This Agreement shall be binding upon and shall
               inure to the benefit of the parties hereto as well as their
               respective successors, assigns and legal representatives, and
               likewise shall be binding upon the heirs, successors and assigns
               thereof. If any of the provisions of this Agreement are held to
               be invalid under any applicable statute or rule of law, they are,
               to that extent, deemed omitted, and the validity of the remaining
               provisions shall not be affected thereby. If any provision is
               held invalid or unenforceable with respect to particular
               circumstances, it shall, nevertheless remain in full force and
               effect in all other circumstances.

          d.   FORCE MAJEURE. Except for the obligation to make payments,
               neither party is responsible for failure to fulfill its
               obligations under this Agreement due to causes beyond its
               control, such as natural disaster, decrees of governmental bodies
               or communications failure, provided that the party invoking this
               provision gives notice to the other party and does everything
               possible to resume performance. If the period of non-performance
               exceeds thirty (30) days, the party whose ability to perform has
               not been so affected may terminate this Agreement by giving
               written notice. Delays during any delivery or warranty period
               shall automatically extend such period for a period equal to the
               force majeure duration.

          e.   RIGHT TO AUDIT. CVS, in its sole discretion, shall have the
               right, but not the obligation, to audit any and all business and
               operations practices and procedures of Licensor as they pertain
               to this Agreement, including, but not limited to, billing
               practices and procedures. CVS will also have the right to verify
               / audit that all service levels agreed to in this Agreement are
               being met via use of an outside audit company. CVS or its
               designated agent shall perform any such audits at mutually agreed
               to times during regular business hours. CVS shall provide prior
               reasonable notice of an audit to Licensor. Following such audit,
               CVS may provide a written report of its findings to Licensor,
               including a timetable for correction of any issues or problems
               discovered by the auditors. In the event Licensor fails to
               correct such issues or problems in a timely manner satisfactory
               to CVS, this Agreement may be terminated by CVS for cause in
               accordance with the termination provisions of the Agreement.

          f.   DISASTER RECOVERY/BUSINESS RESUMPTION. Licensor warrants that it
               will, within twelve (12) months of the date of this Agreement
               prepare a business resumption plan (the "plan") which thereafter
               will be updated and validated periodically, with a minimum twice
               per year. The following information must be supplied to CVS upon
               request: copy of the plan, including all updates; most recent
               call list; and any outside contracts required under the plan.

          g.   GOVERNING LAW. This Agreement is governed by the laws of the
               State of California and the United States and will be governed by
               and construed in accordance with the laws of the State of
               California.

          h.   ARBITRATION. Should any dispute occur between the Parties arising
               out of or related to this Agreement, the dispute will first be
               submitted to the level of management within each company with the
               authority to resolve the issue. If the dispute is not resolved by
               the respective management involvement, any controversy or claim
               between the

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Vertical Networks, Inc.                                                8/24/2004

               Parties will be resolved by arbitration pursuant to this Section
               13.10 and the then-current Commercial Arbitration Rules (the
               "Rules") of the American Arbitration Association ("AAA") and the
               supervision of the AAA. The duty to arbitrate will extend to any
               employee, officer, shareholder, agent, or affiliate of a Party
               hereto making or defending a claim that would be subject to
               arbitration if brought by a Party hereto. If any part of this
               Section H is held to be unenforceable, it will be severed and
               will not affect either the duty to arbitrate hereunder or any
               other part of this Section H.

               The arbitration will be held in the United States headquarters'
               city of the Party not initiating the claim before a sole
               arbitrator knowledgeable in business information and electronic
               data processing. The arbitrator's award will be final and binding
               and may be entered in any court having jurisdiction thereof. The
               arbitrator will not have the power to award punitive or exemplary
               damages, or any damages excluded by, or in excess of, any damage
               limitations expressed in this Agreement. Issues of arbitrability
               will be determined in accordance solely with the federal
               substantive and procedural laws relating to arbitration; in all
               other respects, the arbitrator will be obligated to apply and
               follow the substantive law of the state or nation specified in
               this Agreement. Each Party will bear its own attorneys' fees
               associated with the arbitration and other costs and expenses of
               the arbitration will be borne as provided by the Rules.

          i.   NOTICES. All notices, requests, demands or other communications
               and deliveries required or authorized by this Agreement shall be
               in writing and shall be given by sending the same by certified
               mail return receipt requested, personal delivery, overnight
               courier service, telegram, facsimile, or the equivalent thereof.

                    1.   If to Licensor addressed to:

                         VERTICAL NETWORKS, INC.
                         1148 EAST ARQUES AVENUE
                         SUNNYVALE, CA 94086
                         ATTN: CONTROLLER

                    2.   If to CVS addressed to:

                         CVS PHARMACY, INC.
                         ONE CVS DRIVE
                         WOONSOCKET, RI 02895
                         ATTN: GENERAL COUNSEL

                         or to such other addresses as either party may
                         designate by notice to the other party.

          j.   CONFIDENTIAL INFORMATION

                    PROPRIETARY INFORMATION. Proprietary Information shall mean
                    confidential or other proprietary information that is
                    disclosed by either Licensor or CVS (each, a "Party") under
                    this Agreement including, without limitation, patent rights,
                    copyrights, mask work rights, trade secret rights, sui
                    generis database rights, hardware and software designs,
                    software source code, specifications and documentation,
                    customer names and contact information, business and product
                    plans and all other confidential business information.

                    CONFIDENTIALITY. Proprietary Information must be clearly
                    marked as confidential at the time of disclosure or, if
                    disclosed in intangible form, identified as confidential

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                    at the time of disclosure and summarized in tangible form
                    clearly marked as confidential and delivered to the
                    recipient within thirty (30) calendar days thereafter.
                    Notwithstanding the foregoing, any information disclosed by
                    either Party that is not so marked (if tangible) or
                    summarized (if intangible) shall be treated as Proprietary
                    Information if a reasonable person would believe that the
                    information is of a nature that is intended to be kept
                    confidential. Each Party will hold the disclosing Party's
                    Proprietary Information in confidence and take all
                    reasonable precautions to protect the confidentiality of any
                    Proprietary Information received hereunder and will exercise
                    at least the same degree of care in safeguarding the
                    Proprietary Information as it would with its own
                    confidential information. Without granting any right or
                    license, the Parties agree that the receiving Party will
                    have no obligation with respect to any information which:
                    (a) is or becomes public knowledge through no wrongful act
                    of the receiving Party; (b) was rightfully in the receiving
                    Party's possession prior to disclosure by the disclosing
                    Party; (c) is rightfully obtained by the receiving Party
                    from any third party without similar restriction and without
                    breach of any obligation owed to the disclosing Party; (d)
                    is disclosed pursuant to a lawful requirement of a
                    governmental agency provided that the receiving Party gives
                    the disclosing Party sufficient prior notice to contest such
                    order and cooperates with any efforts by the disclosing
                    party to limit such disclosure; (e) was independently
                    developed by the receiving Party by persons without access
                    to such information and without use of such information or
                    (f) is approved for release by written authorization of the
                    disclosing Party. The receiving Party must promptly notify
                    the disclosing Party of any information that it believes
                    falls into any circumstance listed in the preceding sentence
                    and will bear the burden of proving the existence of such
                    circumstance. The receiving Party will not use the
                    disclosing Party's Proprietary Information except as
                    contemplated under this Agreement. CVS may only provide
                    Proprietary Information of Licensor to Affiliates and to
                    third party contractors of CVS who have executed a written
                    obligation of confidentiality conforming to those of this
                    Section J. Except as required by law or by the order of a
                    court of competent jurisdiction, or as provided herein,
                    neither Party will publicize or otherwise advertise the
                    existence of this Agreement or its terms without the prior
                    written consent of the other Party. The Parties acknowledge
                    and agree that due to the unique nature of the disclosing
                    Party's Proprietary Information, there may be no adequate
                    remedy at law for any breach of obligations under this
                    Section J, that such breach may cause irreparable harm to
                    the disclosing Party and therefore, that upon any such
                    breach or upon threat thereof, the disclosing Party shall be
                    entitled to seek appropriate equitable relief in addition to
                    whatever remedies it might have at law.

                    NON-PUBLICITY. Each Party agrees that neither it nor any of
                    its employees, agents or sub-contractors shall use the other
                    party's name or any photo or visual or audio facsimiles of
                    the other party's facilities or employees for any purpose.
                    Licensor agrees that it shall not, and its employees, agents
                    and subcontractors shall not reveal the nature of the goods
                    or services provided pursuant hereto or any details
                    regarding the services provided pursuant hereto to any third
                    party for any purpose, unless prior written consent of CVS
                    has been obtained. Licensor shall not use, disseminate,
                    disclose or publish any work product or any other materials
                    related to such services in whole or part without prior
                    written consent of CVS save to disclosures to Licensor's
                    lawyers, accountants, bankers and other similar advisors who
                    are under an obligation of confidentiality. Notwithstanding
                    any consent given by CVS under this Section J, Licensor will
                    cease using the CVS name in any materials immediately upon
                    the reasonable request of CVS.

          k.   INDEMNIFICATION

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                    INDEMNIFICATION. Licensor will defend, at its expense, with
                    attorneys reasonably acceptable to CVS, any claim, action,
                    suit, or proceeding brought against CVS to the extent that
                    it is based on (i) a claim that the IOVS Software and/or
                    Upgrades infringe any United States patent or copyright, or
                    (ii) Licensor's breach of any warranty under this Agreement,
                    or (iii) Licensor's gross negligence or willful misconduct,
                    or (iv) Licensor's failure to comply with or abide by any
                    applicable law (other than by reason of an act or omission
                    of CVS), and Licensor will indemnify CVS from any costs,
                    damages, expenses and reasonable attorney's fees finally
                    awarded or payable under any settlement agreement against
                    CVS which are attributable to such claim, provided CVS
                    notifies Licensor promptly, in writing, of any claim,
                    permits Licensor in its sole discretion to defend,
                    compromise or settle the claim and provides all available
                    information and assistance regarding such claim. This
                    indemnity does not extend to: (a) any infringement that is a
                    direct result of Licensor's adhering to a specific design
                    provided by CVS and not originating with Licensor; (b) the
                    combination, operation or use of any IOVS Software and/or
                    Upgrades with equipment, devices or software not supplied or
                    specified by Licensor; (c) the alteration or modification of
                    any IOVS Software and/or Upgrades that was not made by
                    Licensor, provided that use of the unaltered product would
                    have avoided the claim; or (d) where CVS continues allegedly
                    infringing activity after notification thereof or after
                    being informed of modifications that would have avoided the
                    alleged infringement. Licensor's duty to defend CVS under
                    this Section shall apply to any complaint or claim that
                    makes allegations that, if proved, place the alleged breach
                    of duty, whether tortious or contractual, within the
                    purviews of the duties, responsibilities and obligations
                    undertaken by Licensor pursuant to this Agreement. The
                    provisions of this Section shall survive the expiration or
                    termination of this Agreement.

                    REMEDIES. Should any IOVS Software and/or Upgrades become,
                    or in Licensor's opinion be likely to become, the subject of
                    a claim for infringement of a United States patent or
                    copyright, Licensor may (a) procure for CVS the right to
                    continue to use the IOVS Software and/or Upgrades, (b)
                    replace or modify the IOVS Software and/or Upgrades to make
                    such IOVS Software and/or Upgrades non-infringing, provided
                    that the replacement or modified IOVS Software and/or
                    Upgrades provides substantially similar function and
                    performance; or (c) if neither (a) or (b) are practical,
                    terminate the right to use such IOVS Software and/or
                    Upgrades, remove the IOVS Software and/or Upgrades and grant
                    CVS credit thereon as depreciated on a straight-line five
                    (5) year basis.

                    ENTIRE LIABILITY. This Section K states the entire liability
                    of Licensor with respect to infringement of any intellectual
                    property rights by the IOVS Software and/or Upgrades and
                    Licensor shall have no additional liability with respect to
                    any alleged or proven infringement.

                    NOTIFICATION OF UNAUTHORIZED USE. CVS shall promptly notify
                    Licensor in writing of any known unauthorized use or
                    infringement of the IOVS Software and/or Upgrades,
                    documentation relating thereto, Proprietary Information, or
                    Licensor's Intellectual Property Rights. Licensor shall have
                    the sole and exclusive right to bring an infringement action
                    or proceeding against any third party, and, in the event
                    that Licensor brings such an action or proceeding, CVS shall
                    cooperate and provide full information and assistance to
                    Licensor and its counsel in connection therewith at
                    Licensor's expense.

          l.   INSURANCE. During the term of this Agreement, Licensor shall, at
               its expense, carry and maintain: (a) Workers Compensation and
               Employers Liability Insurance meeting minimum statutory
               requirements, (b) Commercial General Liability insurance
               policy(s)

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               with a combined single limit of not less than $2,000,000 per
               occurrence, (c) Automobile Liability Insurance with a combined
               single limit of not less than $1,000,000 per occurrence. The
               policy shall be underwritten by an insurance company that carries
               an A- or better rating from A.M. Best. If requested, Licensor
               shall furnish CVS with a certificate of insurance evidencing
               coverage, and a certificate of insurance as evidence of renewal
               at least thirty (30) days prior to expiration of each policy. The
               amount of insurance coverage required under this Article shall
               not limit Licensor's obligations under this Agreement. To the
               extent that aggregate fees paid to Licensor by CVS under this
               Agreement and any related agreements exceed $1,000,000 in any
               calendar year, Licensor will ensure that each of Licensor's
               policies shall provide that CVS Corporation and its subsidiaries
               and affiliates shall be named as an additional insured.

          m.   ENTIRE AGREEMENT, AMENDMENT. This Agreement including all
               exhibits constitutes complete and exclusive statement of the
               Agreement between Licensor and CVS and supersedes all oral or
               written proposals, prior agreements and other prior
               communications between the parties, concerning the subject matter
               of this Agreement. In the event of a conflict between this
               Agreement and an exhibit, this Agreement shall control. No
               amendment, waiver or modification of this Agreement shall be
               binding unless it is in writing and signed by authorized officers
               of both parties.

IN WITNESS WHEREOF, the parties have executed this Agreement on the above date.

        VERTICAL NETWORKS, INC.                       CVS PHARMACY, INC.

By:      /s/ Douglas Sinclair      By:       /s/ Charles H. Dean III
        -----------------------             ------------------------------------

Name:    Douglas Sinclair          Name:     Charles H. Dean III
        -----------------------             ------------------------------------

Title:   President                 Title:    VP Bus Relationship & Tech Officer
        -----------------------             ------------------------------------

Date:    Sept. 1, 2004             Date:     August 30, 2004
        -----------------------             ------------------------------------

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Vertical Networks, Inc.                                                8/24/2004

                                    EXHIBIT A
                                RIGHTS TO UPGRADE

SOFTWARE ELIGIBLE FOR UPGRADES

     1.   InstantOffice Voice Server

               a.   Including all applicable [**] technology components

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Vertical Networks, Inc.                                                8/24/2004

                                    EXHIBIT B

                            PRICING OF IOVS SOFTWARE

1. BASE IOVS S/W EXCLUDING ALL TEXT-TO-SPEECH (SPEECHIFY) S/W COMPONENTS

<Table>
       <S>                                                         <C>          <C>
       a. License for Pilot Implementation.........................$      [**]

       b. Site License.............................................$      [**]

               i.   Includes SWS (S/W Upgrades for Year One)

       c. OPTIONAL SWS (S/W Upgrades)

               i.   Year Two.......................................$      [**]

               ii.  Year Three.....................................$      [**]

       d. Total Cost

               i.   Total for IOVS Software (Incl. Year 1 SWS)..................$      [**]

               ii.  Total for IOVS Software AND optional Years 2&3 SWS..........$      [**]
</Table>

2. BASE IOVS S/W INCLUDING ALL TEXT-TO-SPEECH (SPEECHIFY) S/W COMPONENTS

<Table>
       <S>                                                         <C>          <C>
       a. License for Pilot Implementation.........................$      [**]

       b. Site License.............................................$      [**]

               i.   Includes SWS (S/W Upgrades for Year One)

       c. OPTIONAL SWS (S/W Upgrades)

               i.   Year Two.......................................$      [**]

               ii.  Year Three.....................................$      [**]

       d. Total Cost

               i.   Total for IOVS Software (Incl. Year 1 SWS)..................$      [**]

               ii.  Total for IOVS Software AND optional Years 2&3 SWS..........$      [**]
</Table>

3. SITE LICENSE OPTION FOR STANDALONE PURCHASE OF TEXT-TO-SPEECH (SPEECHIFY) S/W
   COMPONENTS, AVAILABLE FOR UP TO ONE YEAR AFTER EXECUTION OF THIS AGREEMENT

<Table>
       <S>                                                         <C>
       a. License for TTS Components...............................$      [**]

               i.   Includes upgrades for TTS components for
                    first year following purchase date

       b. OPTIONAL SWS (S/W Upgrades for TTS components)

               i.   Year Two.......................................$      [**]

               ii.  Year Three.....................................$      [**]

               iii. Thereafter, the annual software subscription
                    service (SWS) fee for TTS components shall
                    not be increased by Licensor at more than
                    [**]% per year
</Table>

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Vertical Networks, Inc.                                                8/24/2004

                                    EXHIBIT C

       GENERAL DESCRIPTION OF INSTANTOFFICE VOICE SERVER ("IOVS") SOFTWARE

INSTANTOFFICE VOICE SERVER
The purpose of this exhibit is to provide a list of features for the
InstantOffice Voice Server (IOVS). IOVS is an IVR solution that is based on the
VoiceXML standard.

IOVS is designed for creating audio dialogs that feature synthesized speech,
digitized audio, recognition of spoken and DTMF key input, recording of spoken
input, telephony, and mixed initiative conversations. Its major goal is to bring
the advantages of web-based development and content delivery to interactive
voice response applications.

The voice browser component within VXML is used to interpret and process the
IVR application's VXML pages. IOVS leverages [**]. This [**] will be
integrated with the TAPI/ Wav ports that reside on the InstantOffice platform.

IOVS implementation is fully compliant with the VoiceXML 2.0 specification.
Reference http://www.w3.org/TR/voicexml20/

Following is a list of functionality of IOVS Release 1.0:

[**]

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Vertical Networks, Inc.                                                8/24/2004

                                    EXHIBIT D

                             VERTICAL NETWORKS, INC.
       SOFTWARE LICENSE AGREEMENT FOR INSTANTOFFICE VOICE SERVER SOFTWARE

NOTICE: Please carefully read this Software License Agreement before copying or
using the accompanying software or installing the software (collectively
"Software"). BY COPYING OR USING THE SOFTWARE, YOU ACCEPT ALL OF THE TERMS AND
CONDITIONS OF THIS AGREEMENT. THE TERMS EXPRESSED IN THIS AGREEMENT ARE THE ONLY
TERMS UNDER WHICH VERTICAL NETWORKS WILL PERMIT YOU TO USE THE SOFTWARE. If you
do not accept these terms and conditions, return the product, unused and in the
original shipping container, within 30 days of purchase to obtain a credit for
the full purchase price. Written approval is NOT a prerequisite to the validity
or enforceability of this Agreement and no solicitation of any such written
approval by or on behalf of Vertical Networks shall be construed as an inference
to the contrary.

          LICENSE GRANT. Vertical Networks, Inc. ("Licensor") grants you a
          personal, nonsublicensable, nonexclusive, nontransferable license: a)
          to use the Software either on specifically numbered licensed
          computer(s) or, if applicable, on a specifically licensed number of
          devices identified by host ID, for which it was originally acquired;
          b) to copy the Software solely for backup purposes in support of
          authorized use of the Software; and c) to use and copy the
          documentation related to the Software solely in support of your
          authorized use of the Software. In the event that an outsourcing
          partnership is utilized, Licensee may allow third party that provides
          outsourcing services to Licensee to access and use the Licensed
          Products and Documentation as part of such outsourcing services to
          Licensee. No license is granted to other Licensor software or hardware
          products. You have no right to receive any source code or design
          documentation relating to the Software.

          RESTRICTIONS ON USE; RESERVATION OF RIGHTS. The Software and related
          documentation are protected under copyright laws. Licensor and its
          licensors retain all title and ownership in both the Software and
          related documentation, including any revisions made by Licensor. The
          copyright notice must be reproduced and included with any copy of any
          portion of the Software or related documentation. You may not modify,
          translate, decompile, disassemble, use for any competitive analysis,
          or reverse engineer the Software or related documentation or any copy,
          in whole or in part. Except as expressly provided in this Agreement,
          you may not copy or transfer the Software or related documentation, in
          whole or in part. The Software and related documentation embody
          Licensor's confidential and proprietary intellectual property. You
          shall not disclose to any third party the Software, or any information
          about the operation, design, performance or implementation of the
          Software and related documentation. Software and related documentation
          may be delivered to you subject to export authorization required by
          governments of the United States and other countries. You agree that
          you will not export or reexport any Software or related documentation
          without the proper export licenses required by the governments of
          affected countries.

          LIMITED WARRANTY. Licensor warrants that any media on which the
          Software is recorded will be free from defects in materials and
          workmanship under normal use for a period of 90 days from the date the
          program is shipped to reseller or user. If a defect in any such media
          should occur during this 90-day period, the media may be returned to
          Licensor and Licensor will replace the media without charge. Licensor
          shall have no responsibility to replace media if the failure of the
          media results from accident, abuse or misapplication of the media.

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Vertical Networks, Inc.                                                8/24/2004

          EXCEPT AS PROVIDED ABOVE AND AS PROVIDED EXPRESSLY IN AN ASSOCIATED
          SOFTWARE PURCHASE AGREEMENT, THE SOFTWARE IS PROVIDED "AS IS" AND
          LICENSOR AND ITS LICENSORS MAKE NO WARRANTIES, EXPRESS OR IMPLIED,
          WITH RESPECT TO THE SOFTWARE AND DOCUMENTATION. LICENSOR AND ITS
          LICENSORS DISCLAIM ALL OTHER WARRANTIES, INCLUDING BUT NOT LIMITED TO
          IMPLIED WARRANTIES OR MERCHANTABILITY, FITNESS FOR A PARTICULAR
          PURPOSE AND NONINFRINGEMENT. FURTHER, LICENSOR DOES NOT WARRANT,
          GUARANTEE, OR MAKE ANY REPRESENTATIONS REGARDING THE USE, OR THE
          RESULTS OF THE USE, OF THE SOFTWARE OR RELATED WRITTEN DOCUMENTATION
          IN TERMS OF CORRECTNESS, ACCURACY, RELIABILITY, OR OTHERWISE.

          LIMITATION OF LIABILITY. IN NO EVENT SHALL LICENSOR BE LIABLE TO
          LICENSEE OR ANY THIRD PARTY FOR (A) ANY MATTER BEYOND ITS REASONABLE
          CONTROL OR (B) ANY CONSEQUENTIAL, SPECIAL, INDIRECT OR INCIDENTAL
          DAMAGES ARISING OUT OF THIS LICENSE OR USE OF THE SOFTWARE, EVEN IF
          LICENSOR HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGES. LICENSOR
          WILL NOT BE LIABLE FOR THE LOSS OF, OR DAMAGE TO, YOUR RECORDS OR
          DATA, THE RECORDS OR DATA OF ANY THIRD PARTY, OR ANY DAMAGES CLAIMED
          BY YOU BASED ON A THIRD PARTY CLAIM. IN NO EVENT SHALL THE LIABILITY
          OF LICENSOR RELATING TO THE SOFTWARE OR THIS AGREEMENT EXCEED THE
          PRICE PAID TO LICENSOR FOR THE LICENSE. ALTHOUGH IBM XML PARSER FOR
          JAVA EDITION IS INCORPORATED IN THE SOFTWARE, INTERNATIONAL BUSINESS
          MACHINES, INC. ("IBM") ASSUMES NO LIABILITY FOR ANY CLAIM THAT MAY
          ARISE REGARDING THE SOFTWARE OR ANY MODIFICATION TO THE SOFTWARE. IBM
          DISCLAIMS ALL WARRANTIES, BOTH EXPRESS AND IMPLIED, REGARDING THE
          SOFTWARE AND ANY MODIFICATION TO THE SOFTWARE.

          GOVERNMENT LICENSEES. This provision applies to all Software and
          related documentation acquired directly or indirectly by or on behalf
          of the United States Government. The Software and related
          documentation are commercial products, licensed on the open market at
          market prices, and were developed entirely at private expense and
          without the use of any U.S. Government funds. The License to the U.S.
          Government is granted only with restricted rights and use, and
          duplication or disclosure by the U.S. Government is subject to the
          restrictions set forth in subparagraph (c)(1) of the Commercial
          Computer Software Restricted Rights clause of FAR 52.227-19 or
          subparagraph (c)(1)(ii) of the Rights in Technical Data and Computer
          Software clause of DFARS 252.227-7013 or their successors, whichever
          is applicable.

          TERM AND TERMINATION. The License is effective until terminated;
          however, all of the restrictions with respect to Licensor's copyright
          in the Software and related documentation will cease being effective
          at the date of expiration of the Licensor copyright; those
          restrictions relating to use and disclosure of Licensor's confidential
          information shall continue in effect. You may terminate the License at
          any time. The License will automatically terminate if you fail to
          comply with any of the terms and conditions of the Agreement. Upon
          termination for any reason, you will immediately destroy or return to
          Licensor the Software, related documentation and all copies of each.

          GENERAL. If any provision of this Agreement is held to be invalid or
          unenforceable by a court of competent jurisdiction, the remainder of
          the provisions of this

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Vertical Networks, Inc.                                                8/24/2004

          Agreement shall remain in full force and effect. This Agreement will
          be governed by the laws of the State of California without respect to
          any conflict of laws principles. Neither the License nor this
          Agreement is assignable or transferable by you without Licensor's
          prior written consent, and any attempt to do so shall be void. Any
          notice, report, approval or consent required or permitted hereunder
          shall be in writing. No failure to exercise, and no delay in
          exercising, on the part of either party hereto, any privilege, any
          power or any rights hereunder will operate as a waiver thereof, nor
          will any single or partial exercise of any power hereunder preclude
          further exercise of any other right hereunder. The parties hereto
          agree that a material breach of this Agreement could cause irreparable
          injury to Licensor for which monetary damages may not be an adequate
          remedy and that Licensor shall be entitled to seek equitable relief in
          addition to any remedies it may have hereunder or at law.

          Should you have any questions concerning this Agreement, contact
          Vertical Networks, Inc., 1148 East Arques Avenue, Sunnyvale,
          California, 94086.

I ACKNOWLEDGE THAT I HAVE READ THIS AGREEMENT, UNDERSTAND IT, AND AGREE TO BE
BOUND BY ITS TERMS AND CONDITIONS. I FURTHER AGREE THAT THIS AGREEMENT IS THE
ENTIRE AND EXCLUSIVE AGREEMENT BETWEEN ME AND LICENSOR, WHICH SUPERSEDES ALL
PRIOR ORAL AND WRITTEN AGREEMENTS AND COMMUNICATIONS BETWEEN THE PARTIES
PERTAINING TO THE SUBJECT MATTER OF THIS AGREEMENT. NO DIFFERENT OR ADDITIONAL
TERMS WILL BE ENFORCEABLE AGAINST LICENSOR UNLESS LICENSOR GIVES ITS EXPRESS
WRITTEN CONSENT, INCLUDING AN EXPRESS WAIVER OF THE TERMS OF THIS AGREEMENT

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Exhibit 10.2  

 
 

EXECUTIVE INCENTIVE COMPENSATION PLAN
  PARAMETERS OF AWARDS OF STOCK OPTIONS AND RESTRICTED SHARES    
    

	1.
	structure
two types of equity based awards:

	a.
	Performance Shares: Restricted Shares the vesting of which is based on the Corporation achieving agreed performance targets
("Performance Shares")

	i.
	These
Performance Shares will be earned over a defined performance period, with an additional period of time for vesting after the performance period

	ii.
	The
primary target for the Performance Shares will be based on the Net Income of the Corporation over a defined period

	iii.
	No
dividends will be accrued on the Performance Shares during the period during which the performance targets are measured. Following the performance period, and prior
to the full vesting of the Performance Shares, the dividends that would otherwise have been paid on the Performance Shares will not be paid but will be accrued until the vesting of the shares

	b.
	Options with Dividend Equivalent Rights ("ODERs") which vest after four years, contingent on the recipient's continued employment by the
Corporation, and have a ten year term

	c.
	Both
the Performance Shares and the ODERs will be subject to forfeiture prior to their vesting by a recipient that (i) terminates his employment with the Corporation without
Good Reason, and (ii) whose employment by the Corporation is terminated for Cause.

	2.
	award
these instruments as follows:

	a.
	Executive
and Senior Officers: annual awards of ODERs and Performance Shares, with two year performance targets and two year cliff vesting of the earned performance shares

	b.
	Other
Managers: periodic awards of ODERs only

	c.
	New
hires and other special situations are eligible to receive awards consistent with their positions in the Corporation as recommended by the Chief Executive Officer of the
Corporation and approved by the Compensation Committee.

	3.
	ownership
guidelines

	a.
	the
Board will establish ownership guidelines for the Corporation's Directors and Officers; Directors and Officers should own shares of the Corporation's common stock equal to a
multiple of the recipient's respective annual compensation as follows: 

	 
	 	 
	 	multiple
 

	i.	 	CEO	 	five
	ii.	 	Executive Officers	 	three
	iii.	 	Senior Officers	 	two
	iv.	 	Other Managers	 	n.a.

	b.
	the
Chief Executive Officer will recommend to the Board the portion of shares issued to managers under the Incentive Plan that the Corporation expects the managers to retain, after
providing for the sale of sufficient shares by the managers to meet their tax liabilities relative to the awards of the shares, with the target retention percentage expected to be not less than 60% of
the net, after tax value of shares received. 

ADOPTED,
AS AMENDED, BY THE BOARD OF DIRECTORS ON DECEMBER 16, 2004 

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EXECUTIVE INCENTIVE COMPENSATION PLAN PARAMETERS OF AWARDS OF STOCK OPTIONS AND RESTRICTED SHARES

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