Document:

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                                                                    EXHIBIT 10.1

                           PHASE FORWARD INCORPORATED

                              AMENDED AND RESTATED

                             1997 STOCK OPTION PLAN

This Plan (this "Plan") of Phase Forward Incorporated (the "Company") provides
that options for up to 6,599,880 shares (the "Shares") of the Company's Common
Stock, $.01 par value (the "Stock"), may be granted to employees of the Company
and its subsidiaries, as defined below, and to others who are in a position to
make significant contributions to the success of the Company and its
subsidiaries. Options granted pursuant to this Plan may be either incentive
stock options ("Incentive Options") as defined in Section 422 of the Internal
Revenue Code of 1986, as amended (the "Code"), or options that are not Incentive
Options ("Nonqualified Options"), or both.

1. PURPOSE. The purpose of this Plan is to attract and retain employees and
others who are in a position to contribute significantly to the success of the
Company and its subsidiaries, to reward such contributions, and to encourage
optionholders to advance the long term interests of the Company and its
subsidiaries through ownership of the Company's Stock.

2. ADMINISTRATION.

            (a) Board of Directors. The Plan shall be administered by the Board
of Directors of the Company (the "Board"). The Board, subject to the express
provisions of this Plan, shall determine those persons to be granted options,
the times when options shall be granted, the number of Shares subject to each
option, and the terms and conditions of each option, including whether each
option is an Incentive Option or a Nonqualified Option. The Board shall
establish the form of instruments granting options and any other instruments
under this Plan, and the rules and regulations for the administration of this
Plan, and may amend and rescind such instruments, rules and regulations. The
Board shall interpret this Plan and decide any questions and settle all
controversies and disputes that may arise in connection with this Plan, and such
determinations of the Board shall be conclusive and shall bind all parties.
Subject to Section 16, the Board may, both generally and in particular
instances, waive compliance by an optionholder with any obligation to be
performed under an option and waive any condition or provision of an option,
except that in the case of an Incentive Option the Board may not (other than in
accordance with Section 5) grant any such waiver if such waiver would cause the
Incentive Option to no longer qualify as an Incentive Option under Section 422
of the Code.

            (b) Committee. The Board may, in its discretion, delegate its powers
with respect to this Plan to a committee of the Board (the "Committee"), in
which event all references to the Board hereunder shall be deemed to refer to
the Committee. The Committee shall be appointed by the Board and shall be
composed solely of two or more directors. A majority of the members of the
Committee shall constitute a quorum, and all determinations of the Committee
shall be made by a majority of its members. Any determination of the Committee
under this Plan
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                                     - 2 -

may be made without notice or meeting of the Committee by a writing signed by
all of the members of the Committee.

            (c) Public Company Committee. From and after the date of the first
registration of an equity security of the Company under Section 12 of the
Securities and Exchange Act of 1934, as amended (the "Exchange Act"), if the
Board shall elect to delegate its powers with respect to this Plan to a
Committee pursuant to the provisions of Subsection (b) above, the Committee
shall be composed solely of two or more directors, each of whom shall be a
"Non-Employee Director", as such term is defined from time to time in Rule 16b-3
promulgated under the Exchange Act, and each of whom shall be an "outside
director" within the meaning of Section 162(m) of the Code.

3. EFFECTIVE DATE AND TERM. This Plan shall become effective upon adoption by
the Board or approval by the stockholders by at least a majority vote at a duly
held meeting (or by written consent as provided by applicable law), whichever is
earlier, but shall not become effective unless stockholder approval is obtained
within twelve (12) months before or after the adoption of this Plan by the
Board. The Board may grant options under this Plan prior to such approval, but
any such option shall become effective as of the date of grant only upon such
approval and, accordingly, no such option may be exercisable prior to such
approval. This Plan shall terminate ten years after its effective date.

4. SHARES SUBJECT TO THE PLAN. The Shares shall be reserved for issuance upon
the exercise of options granted under this Plan. Shares subject to an option
which expires or is terminated may again be subjected to an option under this
Plan. Shares delivered under this Plan may be authorized but unissued Stock or
treasury Stock. No fractional Shares shall be issued under this Plan.

5. CHANGES IN CAPITAL STOCK. In the event of a stock dividend, stock split or
combination of shares, recapitalization or other change in the Company's capital
stock, the number and kind of shares of stock or securities of the Company
subject to options then outstanding or subsequently granted under this Plan, the
maximum number of shares or securities that may be delivered under this Plan,
the exercise price, and other relevant provisions shall be adjusted
appropriately in a manner determined by the Board to be equitable, whose
determination shall be binding. The Board may also adjust the number of Shares
subject to outstanding options, the exercise price of outstanding options and
the terms of outstanding options to take into consideration material changes in
accounting practices or principles, consolidations or mergers, acquisitions or
dispositions of stock or property or any other event if-it is determined by the
Board that such adjustment is appropriate to avoid distortion in the operation
of this Plan, provided that no such adjustment shall be made in the case of an
Incentive Option if it would constitute a modification, extension or renewal of
the option within the meaning of Section 424(h) of the Code, unless the
optionholder consents.

6. ELIGIBILITY. All employees of the Company and its subsidiaries, as well as
those other persons or entities who, in the opinion of the Board, are in a
position to contribute significantly to the success of the Company or its
subsidiaries, including, without limitation, nonemployee Directors, consultants,
advisers, independent contractors, and other service providers, shall be
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                                     - 3 -

eligible to receive options under this Plan. A "subsidiary" for purposes of this
Plan shall be a 2 subsidiary corporation as defined in Section 424(f) of the
Code. Incentive Options shall be granted only to "employees" as defined in the
applicable provisions of the Code and regulations thereunder. Receipt of options
under this Plan or of awards under any other employee benefit plan of the
Company or any of its subsidiaries shall not preclude an employee from receiving
options or additional options under this Plan. In granting options the Board may
include or exclude previous participants in this Plan as the Board may
determine.

7. TERMS AND CONDITIONS OF OPTIONS.

            (a) Number of Options. The aggregate fair market value (determined
as of the time of grant) of the Shares with respect to which Incentive Options
are exercisable for the first time by an employee during any calendar year
(under this Plan and all other stock option plans of the Company or its
subsidiaries or any parent corporation) shall not exceed $100,000.

            (b) Exercise Price. The exercise price of each option shall be
determined by the Board but, in the case of an Incentive Option, shall not be
less than 100% (110% in the case of an Incentive Option granted to a ten-percent
stockholder) of the fair market value of the stock subject to the option on the
date of grant; nor shall the exercise price of any option be less, in the case
of an original issue of authorized stock, than par value. For this purpose, (i)
"fair market value" shall be determined by the Board in good faith on a basis
consistent with the provisions of Section 422 of the Code and the regulations
promulgated thereunder, and (ii) "ten percent stockholder" shall mean any
employee who at the time of grant owns directly, or is deemed to own by reason
of the attribution rules set forth in Section 424(d) of the Code, more than 10%
of the total combined voting power of all classes of stock of the Company or of
any of its parent or subsidiary corporations.

            (c) Duration, Vesting and Conditions of Exercise. Each option shall
be exercisable during such period or periods as the Board may determine, but in
no case after the expiration of ten years (five years in the case of an
Incentive Option granted to a "ten percent stockholder" as defined in (b) above)
from the date of grant. In the discretion of the Board, options may be
exercisable (i) in full upon grant or (ii) over or after a period of time
conditioned on satisfaction of certain Company, division, group, office,
individual or other performance criteria, including the continued performance of
services to the Company or its subsidiaries. In the case of an option not
immediately exercisable in full, the Board may at any time accelerate- the time
at which all or any part of the option may be exercised.

8. EXERCISE OF OPTIONS. Any exercise of an option shall be in writing pursuant
to a written instrument in the form prescribed by the Board, signed by the
proper person and delivered to the Company, accompanied by (a) such documents as
may be required by this Plan, by such written instrument, or by the Board, and
(b) payment as required by such written instrument for the number of Shares for
which the option is exercised. In addition, each exercise of an option shall be
subject to such additional conditions as may be required by the Board, including
without limitation those described in Section 9 of this Plan. No exercise of an
option shall be effective, and the Company shall not be obligated to deliver any
Shares, until all requirements and conditions for exercise have been met to the
satisfaction of the Board.
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                                     - 4 -

9. CONDITIONS TO EXERCISE OF OPTIONS. Except as waived by the Board in a
particular case, all the following conditions shall be complied with as a
condition to the exercise of each option granted under this Plan:

            (a) Legal Matters. In the opinion of the Company's counsel all
applicable federal and state laws and regulations, including securities laws and
regulations, shall have been complied with, and legal matters in connection with
the issuance and delivery of such Shares shall have been approved by the
Company's counsel.

            (b) Listing and Registration of Shares. If at any time the Board
shall determine that the listing, registration or qualification of the Shares
covered by any option upon any securities exchange or under any state or federal
law, or the consent or approval of any governmental regulatory body, is
necessary or desirable as a condition of or in connection with the granting of
such option or the issuance or purchase of Shares thereunder, such option may
not be exercised in whole or in part unless and until such listing,
registration, qualification, consent or approval shall have been effected or
obtained free of any conditions not acceptable to the Board.

            (c) Tax Undertakings. In the case of an option that is not an
Incentive Option, the Board may require the optionholder to remit to the Company
an amount sufficient to satisfy any federal, state or local withholding tax
requirements (or make other arrangements satisfactory to the Company with regard
to such taxes, including withholding from regular cash compensation, providing
other security to the Company, or remitting or foregoing the receipt of
property, including Stock, having a fair market value (as determined by the
Board in good faith in its discretion) on the date of exercise sufficient to
meet such potential liability) prior to the delivery of any Shares pursuant to
the exercise of the option. In the case of an Incentive Option, if at the time
the option is exercised the Board determines that under applicable law and
regulations the Company could be liable for the withholding of any federal or
state tax with respect to a disposition of the Shares received upon exercise,
the Board may require the optionholder to agree (i) to inform the Company
promptly of any disposition (within the meaning of Section 424(c) of the Code
and the regulations thereunder) of Shares received upon exercise, and (ii) to
give such security as the Board deems adequate to meet the potential liability
of the Company for the withholding of tax, and to augment such security from
time to time in any amount reasonably deemed necessary by the Board to preserve
the adequacy of such security.

            (d) Evidence of Authority. If an option is exercised by the legal
representative of a deceased optionholder or by a person to whom the option has
been transferred by the optionholder's will or by applicable laws of descent and
distribution, the Company shall not be obligated to deliver Shares until
satisfied as to the authority of the person exercising the option.

            (e) Restrictions on Transfer of Stock. If the sale of Shares has not
been registered under the Securities Act of 1933, as amended, or under
applicable state securities laws, the Company may require, as a condition to
exercise of an option, such representations or agreements from the optionholder
as counsel for the Company may consider appropriate to avoid violation of such
Act or such state securities laws and may require that the certificates
evidencing such Shares bear an appropriate legend restricting transfer. In
addition, the Board may require as
<PAGE>
                                     - 5 -

conditions to the grant or exercise of any option that the optionholder agree in
writing to (i) restrictions on the transfer of Shares, (ii) a right of first
refusal of the Company to repurchase Shares in the event the holder desires to
sell such Shares, and (iii) a right of the Company to repurchase Shares in the
event of termination of employment or death or disability. Such restrictions and
rights on the part of the Company shall be identified in the instrument granting
the option.

10. PAYMENT FOR SHARES.

            (a) Exercise Price. The exercise price for Shares purchased under an
option shall be paid as follows: (i) in cash or by certified check, bank draft
or money order payable to the order of the Company; (ii) if permitted by the
terms of the instrument granting the option, by the delivery of shares of Stock
having a fair market value (as determined by the Board in good faith in its
reasonable discretion) on the date of exercise equal to the exercise price; or
(iii) by a combination of cash and Stock; provided, however, that payment of the
exercise price by delivery of shares of Common Stock of the Company owned by
such optionholder may be made only if such payment does not result in a charge
to earnings for financial accounting purposes as determined by the Board, unless
the Board otherwise permits such payment by delivery of shares of Common Stock.

            (b) Promissory Note. To the extent permitted by any applicable
margin regulations of the Board of Governors of the Federal Reserve System and
other provisions of applicable law, the instrument granting an option may permit
the exercise price for Shares to be paid by payment of at least the par value by
a combination of cash and Stock as provided above, and delivery to the Company
of the optionholder's promissory note for the balance of the exercise price.
Unless otherwise specified by the Board in the instrument granting the option,
such note (i) shall bear interest at least equal to the Applicable Federal Rate,
as determined under Section 1274(d) of the Code and published by the Service on
a monthly basis, in effect for the month of exercise, (ii) shall be a full
recourse note, (iii) shall be secured by a pledge of the Shares acquired by
exercising the option, and (iv) shall be payable in equal annual installments of
principal and interest over a period of not more than five years after the
exercise date (except that any such note shall be payable on demand in the event
of termination of employment). Any such promissory note shall be in a form
satisfactory to the Company.

11. NO RIGHTS AS STOCKHOLDER. Optionholders shall not have the rights of
stockholders with regard to options granted under this Plan, except as to Shares
actually purchased pursuant to such options.

12. NON TRANSFERABILITY OF OPTIONS. Each option granted under this Plan shall be
transferable only by will or the laws of descent and distribution and shall be
exercisable during the lifetime of the person to whom the option is granted only
by such person. Except as permitted by the preceding sentence, no option granted
under this Plan or any of the rights and privileges thereby conferred shall be
transferred, assigned, pledged, hypothecated or otherwise disposed of in any way
(by operation of law or otherwise), and no such option, right or privilege shall
be subject to execution, attachment or similar process. Upon any attempt to so
transfer, assign, pledge, hypothecate or otherwise dispose of any such option,
right or privilege contrary to
<PAGE>
                                     - 6 -

the provisions hereof, or upon the levy of any attachment or similar process
upon such option, right or privilege, the option and such rights and privileges
shall immediately become null and void. Notwithstanding the above provisions of
this Section 12, any option granted under this Plan may be pledged or
hypothecated to secure an obligation to the Company.

13. TERMINATION OF EMPLOYMENT; DEATH OR DISABILITY.

            (a) Termination In General. Upon termination of the employment of an
optionholder, any unexercised options shall terminate immediately, except as
provided in Subsections (b), (c) and (d) below. For purposes of this Section 13,
employment shall not be considered terminated (i) in the case of sick leave or
other bona fide leave of absence approved for purposes of this Plan by the
Board, so long as the employee's right to re-employment is guaranteed either by
statute or by contract, or (ii) in the case of a transfer of employment among
the Company and its subsidiaries, or to the employment of a corporation (or a
parent or subsidiary corporation of such corporation) issuing or assuming an
option, which in the case of an Incentive Option is a transaction to which
Section 424(a) of the Code applies. For all purposes of this Section 13, the
term "employment" shall include the continuing relationships of optionholders to
the Company as Directors, consultants, advisers, independent contractors and
other service providers; provided, however, that notwithstanding the foregoing,
in the discretion of the Board, the instrument granting options to any of the
foregoing persons may provide that the option may remain in force and effect
notwithstanding the termination of the relationship between any such person and
the Company.

            (b) Termination Not For Cause. If such termination was not "for
cause" (as hereinafter defined), the optionholder may exercise any option which
was otherwise exercisable on the date of termination for a period ending on the
earlier of (i) the expiration of three months after the date of such
termination, (ii) the expiration date of such option as fixed pursuant to the
first sentence of Section 7(c), and (iii) the termination of such option
pursuant to the provisions of Section 14. If an optionholder voluntarily
terminates his employment with the Company, the optionholder may exercise any
option which was otherwise exercisable on the date of termination for a period
ending on the earlier of (i) thirty days after the date of such termination,
(ii) the expiration dated of such option as fixed pursuant to the first sentence
of Section 7(c), and (iii) the termination of such option pursuant to the
provisions of Section 14. For purposes hereof, the term "for cause" shall mean
only (i) the willful or reckless failure by the optionholder to perform the
duties requested of him by the Board or to perform his duties under, or willful
or reckless violation of, any written employment or consulting agreement (other
than a failure resulting from the optionholder's death or disability), which
failure or violation shall not have been cured within the cure period, if any,
provided in such agreement; (ii) the commission by the optionholder of an act of
fraud or theft against the Company or any of its subsidiaries; or (iii) the
conviction of the optionholder of (or the plea by the optionholder of nolo
contendere to) any felony.

            (c) Death. If termination of employment results from the
optionholder's death, any option which was otherwise exercisable by such
optionholder as of the time immediately before his or her death shall be
exercisable by the optionholder's estate or by any person who acquired the
options by bequest or inheritance for a period ending on the earlier of (i) one
year after the death of the optionholder, (ii) the expiration date of such
option as fixed
<PAGE>
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pursuant to the first sentence of Section 7(c), and (iii) the termination of
such option pursuant to the provisions of Section 14. The Board may permit any
option to be exercised for up to the total number of Shares subject to the
option, or grant an option which by its terms is exercisable for up to the total
number of Shares subject to the option, at any time within one year after the
death of the optionholder, consistent with the above provisions.

            (d) Disability. If the termination of employment results from the
optionholder's disability, any option which was otherwise exercisable by such
optionholder immediately prior to the termination of his employment shall be
exercisable by him or her (or his or her legal representative) for a period
ending on the earlier of (i) one year after such termination, (ii) the
expiration date of such option as fixed pursuant to the first sentence of
Section 7(c), and (iii) the termination of such option pursuant to the
provisions of Section 14. The Board may permit any option to be exercised for up
to the total number of Shares subject to the option, or grant an option which by
its terms is exercisable for up to the total number of Shares subject to the
option, at any time within one year after termination of employment, consistent
with the above provisions. The term "disability" shall for this purpose be
defined as such term is defined in Section 22(e)(3) of the Code.

14. REORGANIZATIONS; DISSOLUTION.

            (a) Substitute Options. If by reason of a corporate merger,
consolidation, acquisition of property or stock, separation, reorganization, or
liquidation the Board shall authorize the issuance or assumption of a stock
option in a transaction to which Section 424(a) of the Code applies, then,
notwithstanding any other provision of this Plan, the Board may grant an option
upon such terms and conditions as it may deem appropriate for the purpose of
assumption of the old option, or substitution of a new option for the old
option, in conformity with the provisions of said Section 424(a) of the Code and
the Regulations thereunder, and any such option shall not reduce the number of
shares otherwise available for issuance under this Plan.

            (b) Acceleration and Termination of Options. The form of instruments
granting incentive stock options pursuant to this Plan shall provide that in the
event of a Change of Control of the Company (as defined in subsection (c)
below), then an additional twenty-five percent (25%) of the options issued
pursuant to such instruments shall immediately vest and become exercisable;
provided, however, that any such instruments executed on or before February 28,
2000 shall also provide that (i) if the Change of Control is initiated on or
before February 28, 2000, (ii) if the acquiring entity and the Company desire to
account for the Change of Control as a "pooling of interests" business
combination and (iii) the inclusion of such acceleration of unvested options
would preclude the Change of Control to be accounted for as a pooling of
interests business combination, then such acceleration of unvested options shall
be revoked. In addition to the acceleration provided for in the preceding
sentence, in the event of a Change in Control of the Company (as defined in
subsection (c), below), and in anticipation thereof if required by the
circumstances, the Board, in its sole discretion, may also (i) accelerate the
exercisability, prior to the effective date of such Change in Control, of
additional percentages of all outstanding options granted under this Plan (and
redesignate as Nonqualified Options any options or portions thereof that were
originally designated as Incentive Options but that no longer so qualify under
Section 422 of the Code), (ii) arrange, if there is a surviving or acquiring
<PAGE>
                                     - 8 -

corporation, subject to the consummation of a Change of Control, to have that
corporation or an affiliate of that corporation grant to employees and other
optionholders replacement options with substantially similar or, if not adverse
to the optionholders, different provisions with respect to exercisability (upon
which grant the options granted under this Plan shall immediately terminate and
be of no further force or effect) which, however, in the case of Incentive
Options, satisfy, in the determination of the Board, the requirements of Section
424(a) of the Code, (iii) cancel all outstanding options in exchange for
consideration in cash or in kind in an amount equal to the value of the Shares,
as determined by the Board in good faith, the optionholder would have received
had the option been exercised (to the extent then exercisable or to a greater
extent, including in full, as the Board may determine) less the option price
therefor (upon which cancellation such options shall immediately terminate and
be of no further force or effect), (iv) permit the purchaser of the Company's
stock or assets to deliver to the optionholders the same kind of consideration
that is delivered to the stockholders of the Company in cancellation of such
options in an amount equal to the value of the Shares, as determined by the
Board in good faith, the optionholder would have received had the option been
exercised (to the extent then exercisable or to a greater extent, including in
full, as the Board may determine), less the option price therefor, or (v) take
any combination (or none) of the foregoing actions.

            (c) Definition of "Change of Control". For purposes of this Plan, a
"Change in Control" shall mean and include any of the following:

                  (i) a merger or consolidation of the Company with or into any
      other corporation or other business entity in which the Company is the
      surviving corporation (except one in which the holders of capital stock of
      the Company immediately prior to such merger or consolidation continue to
      hold at least a majority of the outstanding securities having the right to
      vote in an election of the Board of Directors ("Voting Stock") of the
      Company); or any such merger or consolidation in which the Company is not
      the surviving corporation;

                  (ii)  a sale, lease, exchange or other transfer (in one
      transaction or a related series of transactions) of all or
      substantially all of the Company's assets;

                  (iii) the acquisition by any person or any group of persons
      (other than the Company, any of its direct or indirect subsidiaries, or
      any trustee, fiduciary or other person or entity holding securities under
      any employee benefit plan or trust of the Company or any of its direct or
      indirect subsidiaries) acting together in any transaction or related
      series of transactions, of such number of shares of the Company's Voting
      Stock as causes such person, or group of persons, to own beneficially,
      directly or indirectly, as of the time immediately after such transaction
      or series of transactions, 50% or more of the combined voting power of the
      Voting Stock of the Company other than as a result of an acquisition of
      securities directly from the Company, or solely as a result of an
      acquisition of securities by the Company which by reducing the number of
      shares of the Voting Stock outstanding increases the proportionate voting
      power represented by the Voting Stock owned by any such person to 50% or
      more of the combined voting power of such Voting Stock; and
<PAGE>
                                     - 9 -

                  (iv) a change in the composition of the Company's Board of
      Directors following a tender offer or proxy contest, as a result of which
      persons who, immediately prior to a tender offer or proxy contest,
      constituted the Company's Board of Directors shall cease to constitute at
      least a majority of the members of the Board of Directors.

            (d) Dissolution or Liquidation. Upon the dissolution or liquidation
of the Company, all outstanding options granted under this Plan shall terminate,
but each optionholder shall have the right, immediately prior to such
dissolution or liquidation, to exercise his or her options to the extent then
exercisable.

15. EMPLOYMENT RIGHTS AND OTHER BENEFITS. Neither the adoption of this Plan nor
the grant of options shall confer upon any employee any right to continued
employment with the Company or any parent or subsidiary or affect in any way the
right of the Company or such parent or subsidiary to terminate the employment of
an employee at any time. Except as specifically provided by the Board in any
particular case, the loss of existing or potential profit in options granted
under this Plan shall not constitute an element of damages in the event of
termination of the employment of an employee even if the termination is in
violation of an obligation of the Company to the employee by contract or
otherwise. Nothing in this Plan shall restrict the authority of the Board to
grant stock options or to award bonuses or other benefits to employees or others
otherwise than pursuant to this Plan. For purposes of this Section 15, the term
"employee" shall include those persons granted options pursuant to this Plan who
are not employees of the Company, and the term "employment" shall include the
arrangement or relationship between the Company and any such person.

16. DISCONTINUANCE, CANCELLATION, AMENDMENT AND TERMINATION. The Board may at
any time abandon this Plan or discontinue granting options under this Plan. With
the consent of the optionholder, the Board may at any time cancel an existing
option in whole or in part and grant another option for such number of shares as
the Board specifies. The Board may at any time amend this Plan for the purpose
of satisfying the requirements of Section 422 of the Code or of any changes in
applicable laws or regulations or for any other purpose which may at the time be
permitted by law, or may at any time terminate this Plan as to any further
grants of options, provided that (except to the extent expressly required or
permitted herein above) no such amendment shall, without the approval of the
stockholders of the Company by at least a majority vote at a duly held meeting
(or by written consent as provided by applicable law), (a) increase the maximum
number of shares for which options may be granted under this Plan, (b) change
the group of employees eligible to receive options under this Plan, (c) reduce
the price at which Incentive Options may be granted, (d) extend the time within
which options may be granted, (e) alter this Plan in such a way that Incentive
Options already granted hereunder would not be considered Incentive Options
under Section 422 of the Code, (f) amend the provisions of this Section 16, or
(g) make any other change in this Plan which requires stockholder approval under
applicable law or regulations, including any approval requirement which is a
prerequisite for exemptive relief under Section 16 of the Exchange Act. The
termination or any modification or amendment of this Plan shall not adversely
affect the rights of any optionholder under any option previously granted
without his or her consent.
<PAGE>
                                     - 10 -

17. COMPLIANCE WITH RULE 16b-3. It is intended that the provisions of this Plan
and any option granted thereunder to a person subject to the reporting
requirements of Section 16(a) of the Exchange Act shall comply in all respects
with the terms and conditions of Rule 16b-3 promulgated under the Exchange Act
or any successor provisions thereto. Any agreement granting options shall
contain such provisions as are necessary or appropriate to assure such
compliance. To the extent that any provision hereof is found not to be in
compliance with such Rule, such provision shall be deemed to be modified so as
to be in compliance with such Rule or, if such modification is not possible,
shall be deemed to be null and void, as it relates to a recipient subject to
Section 16(a) of the Exchange Act.

-------------
1 The amendments to the number of shares available for grant under the Plan are
as follows:

<TABLE>
<CAPTION>
DATE OF AMENDMENT                   NUMBER OF SHARES POST-AMENDMENT
-----------------                   -------------------------------
<S>                                 <C>
November 13, 1997                              2,000,000

March 6, 1998                                  1,440,000

May 28, 1999                                   2,240,000

November 17, 1999                              2,753,082

August 4, 2000                                 3,253,082

January 11, 2001                               4,511,880

August 10, 2001                                5,011,880

October 23, 2002                               6,711,880

[OCTOBER 21, 2003]                             6,599,880
</TABLE>

** In addition to the shares reserved for grant under this Plan, the Certificate
of Incorporation of the Company also includes shares reserved for grant under
the 2003 Amended and Restated Non-Employee Director Stock Option Plan (the "NED
Plan") and shares reserved for issuance to consultants. As of January 1, 2004,
362,000 shares were reserved for grant under the NED Plan and 34,784 shares were
reserved for issuance to consultants.<PAGE>

                                                                    EXHIBIT 10.2

                           PHASE FORWARD INCORPORATED
             SECOND AMENDED AND RESTATED 2003 NON-EMPLOYEE DIRECTOR
                                STOCK OPTION PLAN

1.       Purpose. This Non-Qualified Stock Option Plan, to be known as the
Second Amended and Restated 2003 Non-Employee Director Stock Option Plan
(hereinafter, this "Plan") is intended to promote the interests of Phase Forward
Incorporated (hereinafter, the "Company") by providing an inducement to obtain
and retain the services of qualified persons who are not employees or officers
of the Company to serve as members of its Board of Directors (the "Board").

2.       Available Shares. The total number of shares of common stock, par value
$.01 per share, of the Company (the "Common Stock"), for which options may be
granted under this Plan shall not exceed 562,000 shares, subject to
adjustment in accordance with paragraph 10 of this Plan. Shares subject to this
Plan are authorized but unissued shares or shares that were once issued and
subsequently reacquired by the Company. If any options granted under this Plan
are surrendered before exercise or lapse without exercise (and without being
used to pay the exercise price or tax withholding), in whole or in part, the
shares reserved therefor shall continue to be available under this Plan.

3.       Administration. This Plan shall be administered by the Board or by a
committee appointed by the Board (the "Committee"). In the event the Board fails
to appoint or refrains from appointing a Committee, the Board shall have all
power and authority to administer this Plan. In such event, the word "Committee"
wherever used herein shall be deemed to mean the Board. The Committee shall,
subject to the provisions of the Plan, have the power to construe this Plan, to
determine all questions hereunder, and to adopt and amend such rules and
regulations for the administration of this Plan as it may deem desirable. No
member of the Board or the Committee shall be liable for any action or
determination made in good faith with respect to this Plan or any option granted
under it.

4.       Automatic Grant of Options. Subject to the availability of shares under
this Plan, (i) each person who is a member of the Board during the term of this
Plan and who is not an employee or officer of the Company or affiliated with a
"Purchaser" (as such term is defined in the Fifth Amended and Restated
Investors' Rights Agreement, as amended) (such director referred to as an
"Outside Director") shall be automatically granted an option (a "Director
Option") to purchase 100,000 shares of Common Stock less the number of shares of
Common Stock, if any, then subject to an issued and outstanding stock option or
otherwise held by the Outside Director (the "Number of Option Shares") on the
later of (A) the date of the Outside Director's election to the Board or (B)
October 21, 2003 (the "Grant Date"). THE OPTIONS TO BE GRANTED UNDER THIS
PARAGRAPH 4 SHALL BE THE ONLY OPTIONS EVER TO BE GRANTED AT ANY TIME TO SUCH
MEMBER UNDER THIS PLAN. EXCEPT FOR THE SPECIFIC OPTIONS REFERRED TO ABOVE, NO
OTHER OPTIONS SHALL BE GRANTED UNDER THIS PLAN.

5.       Option Price and Fair Market Value. The purchase price of the stock
covered by an option granted pursuant to this Plan shall be 100% of the fair
market value of such shares on the day the option is granted. The option price
will be subject to adjustment in accordance with the

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provisions of paragraph 10 of this Plan. For purposes of this Plan, if, at the
time an option is granted under the Plan, the Company's Common Stock is publicly
traded, "fair market value" shall be determined as of the last business day for
which the prices or quotes discussed in this sentence are available prior to the
date such option is granted and shall mean (i) the average (on that date) of the
high and low prices of the Common Stock on the principal national securities
exchange on which the Common Stock is traded, if the Common Stock is then traded
on a national securities exchange; or (ii) the last reported sale price (on that
date) of the Common Stock on the Nasdaq National Market, if the Common Stock is
not then traded on a national securities exchange; or (iii) the closing bid
price (or average of bid prices) last quoted (on that date) by an established
quotation service for over-the-counter securities, if the Common Stock is not
reported on the Nasdaq National Market.

6.       Period of Option. Unless sooner terminated in accordance with the
provisions of paragraph 8 of this Plan, an option granted hereunder shall expire
on the date which is ten (10) years after the date of grant of the option.

7.       Vesting of Shares and Non-Transferability of Options.

         (a)      Vesting. Options granted under this Plan shall not be
exercisable until they become vested. Director Options granted under Paragraph 4
of the Plan shall vest in the optionee, and thus become exercisable so that
6.25% of each Director Option shall become exercisable at the end of each fiscal
quarter following the Grant Date, provided that the optionee has (i)
continuously served as a member of the Board through such vesting date and (ii)
attended at least seventy-five percent (75%) of Board meetings, including at
least fifty percent (50%) of Board meetings in person (the "Minimum Attendance
Criteria"), during the prior four fiscal quarters. Notwithstanding the
foregoing, unless otherwise sooner vested in accordance with the terms of the
Plan, all Director Options shall vest and become exercisable on the date that is
five (5) years from the Grant Date; provided that the optionee has continuously
served as a member of the Board through such vesting date. For purposes of
calculating the Minimum Attendance Criteria during the first three fiscal
quarters following the Grant Date, the Minimum Attendance Criteria shall be
deemed satisfied for each such fiscal quarter even if the Outside Director fails
to attend any meetings during such period(s); provided, however that, in the
event the Outside Director resigns as a member of the Board prior to the first
anniversary of the Grant Date and the Outside Director has not attended at least
seventy-five percent (75%) of Board meetings, including at least fifty percent
(50%) of Board meetings in person prior to such resignation, the Outside
Director shall be prohibited from exercising any of the Director Options
(including those that have otherwise vested). For purposes of enforcing the
foregoing provision, the Company may hold in escrow shares exercised under the
Director Options during the first three fiscal quarters following the Grant
Date. In the event that an Outside Director fails to meet the Minimum Attendance
Criteria for a given fiscal quarter, that portion of the Director Option due to
vest on such date shall expire and shall no longer be exercisable until the date
which is five (5) years from the Grant Date. The number of shares as to which
options may be exercised shall be cumulative, so that once the option shall
become exercisable as to any shares it shall continue to be exercisable as to
said shares, until expiration or termination of the option as provided in this
Plan.

         (b)      Forgiveness of Minimum Attendance Criteria in the Event of
Disability or Illness. Notwithstanding anything to the contrary in this Plan, in
the event an Outside Director fails to meet the Minimum Attendance Criteria for
any given fiscal quarter, the Board may, acting unanimously, choose to deem the
Minimum Attendance Criteria satisfied for such fiscal quarter

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if the Board determines that the Outside Director was unable to attend the
minimum number of Board meetings due to disability, illness or family
obligations.

         (c)      Acceleration Upon a Change of Control. The form of instruments
granting stock options pursuant to this Plan shall provide that in the event of
a Change of Control of the Company (as defined in subsection (c) below), then
one hundred percent (100%) of the options issued pursuant to such instruments
and not yet exercisable shall immediately vest and become exercisable.

         (d)      Definition of "Change of Control". For purposes of this Plan,
a "Change in Control" shall mean and include any of the following:

                  (i)      a merger or consolidation of the Company with or into
any other corporation or other business entity in which the Company is the
surviving corporation (except one in which the holders of capital stock of the
Company immediately prior to such merger or consolidation continue to hold at
least a majority of the outstanding securities having the right to vote in an
election of the Board of Directors ("Voting Stock") of the Company); or any such
merger or consolidation in which the Company is not the surviving corporation;

                  (ii)     a sale, lease, exchange or other transfer (in one
transaction or a related series of transactions) of all or substantially all of
the Company's assets;

                  (iii)    the acquisition by any person or any group of persons
(other than the Company, any of its direct or indirect subsidiaries, or any
trustee, fiduciary or other person or entity holding securities under any
employee benefit plan or trust of the Company or any of its direct or indirect
subsidiaries) acting together in any transaction or related series of
transactions, of such number of shares of the Company's Voting Stock as causes
such person, or group of persons, to own beneficially, directly or indirectly,
as of the time immediately after such transaction or series of transactions, 50%
or more of the combined voting power of the Voting Stock of the Company other
than as a result of an acquisition of securities directly from the Company, or
solely as a result of an acquisition of securities by the Company which by
reducing the number of shares of the Voting Stock outstanding increases the
proportionate voting power represented by the Voting Stock owned by any such
person to 50% or more of the combined voting power of such Voting Stock; and

                  (iv)     a change in the composition of the Company's Board of
Directors following a tender offer or proxy contest, as a result of which
persons who, immediately prior to a tender offer or proxy contest, constituted
the Company's Board of Directors shall cease to constitute at least a majority
of the members of the Board of Directors.

         (e)      Legend on Certificates. The certificates representing such
shares shall carry such appropriate legend, and such written instructions shall
be given to the Company's transfer agent, as may be deemed necessary or
advisable by counsel to the Company in order to comply with the requirements of
the Securities Act of 1933 or any state securities laws.

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                                       4

         (f)      Non-transferability. Any option granted pursuant to this Plan
shall not be assignable or transferable other than by will or the laws of
descent and distribution and shall be exercisable during the optionee's lifetime
only by him or her.

8.       Termination of Option Rights.

         (a)      In the event an optionee ceases to be a member of the Board
for any reason other than death or permanent disability, any then unexercised
portion of options granted to such optionee shall, to the extent not then
vested, immediately terminate and become void; any portion of an option which is
then vested but has not been exercised at the time the optionee so ceases to be
a member of the Board may be exercised, to the extent it is then vested, by the
optionee within 45 days of the date the optionee ceased to be a member of the
Board; and all options shall terminate after such 45 days have expired.

         (b)      In the event that an optionee ceases to be a member of the
Board by reason of his or her death or permanent disability, any option granted
to such optionee shall be immediately and automatically accelerated and become
fully vested and all unexercised options shall be exercisable by the optionee
(or by the optionee's personal representative, heir or legatee, in the event of
death) within 365 days of the date the optionee ceased to be a member of the
Board by reason of his or her death or permanent disability; and all options
shall terminate after such 365 days have expired.

9.       Exercise of Option and Resale Restrictions.

         (a)      Exercise of Options. Subject to the terms and conditions of
this Plan and the option agreements, an option granted hereunder shall, to the
extent then exercisable, be exercisable in whole or in part by giving written
notice to the Company by mail or in person addressed to Phase Forward
Incorporated at its principal executive offices, stating the number of shares
with respect to which the option is being exercised, accompanied by payment in
full for such shares. Payment may be:

                  (i)      by check payable to the order of the Company;

                  (ii)     except as otherwise provided in the applicable option
agreement, and only if the Common Stock is then publicly traded, by delivery of
an irrevocable and unconditional undertaking by a creditworthy broker to deliver
promptly to the Company sufficient funds to pay the exercise price, or by
delivery by the optionee to the Company of a copy of irrevocable and
unconditional instructions to a creditworthy broker to deliver promptly to the
Company cash or a check sufficient to pay the exercise price; or

                  (iii)    by delivery of shares of Common Stock owned by the
optionee valued at fair market value (as determined in accordance with Paragraph
5); provided, however, that there shall be no such exercise at any one time as
to fewer than one hundred (100) shares or all of the remaining shares then
purchasable by the person or persons exercising the option, if fewer than one
hundred (100) shares.

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                                       5

         The Company's transfer agent shall, on behalf of the Company, prepare a
certificate or certificates representing such shares acquired pursuant to
exercise of the option, shall register the optinee as the owner of such shares
on the books of the Company and shall cause the fully executed certificate(s)
representing such shares to be delivered to the optinee as soon as practicable
after payment of the option price in full. The holder of an option shall not
have any rights of a stockholder with respect to the shares covered by the
option, except to the extent that one or more certificates for such shares shall
be delivered to him or her upon the due exercise of the option.

         (b)      Resale Restrictions. Under no circumstances may shares
acquired pursuant to the exercise of options hereunder be disposed of on or
prior to the date that is six months after the date such options were granted.

10.      Adjustments Upon Changes in Capitalization and Other Matters. Upon the
occurrence of any of the following events, an optionee's rights with respect to
options granted to him or her hereunder shall be adjusted as hereinafter
provided:

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

         (b)      Recapitalization Adjustments. In the event of a
reorganization, recapitalization, merger, consolidation, or any other change in
the corporate structure or shares of the Company, to the extent permitted by
Rule 16b-3 under the Securities Exchange Act of 1934, appropriate adjustments in
the number and kind of shares authorized by this Plan and in the number and kind
of shares covered by an outstanding option, and in the option price of
outstanding options under this Plan, shall be made to preserve, without
exceeding, the value of such option.

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

         (d)      Adjustments. Upon the happening of any of the foregoing events
set forth in Sections 10(a) through 10(c), the class and aggregate number of
shares set forth in paragraph 2 of this Plan that are subject to options which
previously have been or subsequently may be granted under this Plan shall also
be appropriately adjusted to reflect such events. The Board shall determine the
specific adjustments to be made under this paragraph 10 and its determination
shall be conclusive.

11.      Restrictions on Issuance of Shares. Notwithstanding the provisions of
paragraphs 4 and 9 of this Plan, the Company shall have no obligation to deliver
any certificate or certificates upon

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                                       6

exercise of an option until one of the following conditions shall be satisfied:

         (a)      The shares with respect to which the option has been exercised
are at the time of the issue of such shares effectively registered under
applicable Federal and state securities laws as now in force or hereafter
amended; or

         (b)      Counsel for the Company shall have given an opinion that such
shares are exempt from registration under Federal and state securities laws as
now in force or hereafter amended; and the Company has complied with all
applicable laws and regulations with respect thereto, including without
limitation all regulations required by any stock exchange upon which the
Company's outstanding Common Stock is then listed.

12.      Representation of Optionee. If requested by the Company, the optionee
shall deliver to the Company written representations and warranties upon
exercise of the option that are necessary to show compliance with federal and
state securities laws, including representations and warranties to the effect
that a purchase of shares under the option is made for investment and not with a
view to their distribution (as that term is used in the Securities Act of 1933).

13.      Option Agreement or Certificate. Each option granted under the
provisions of this Plan shall be evidenced by an option agreement or
certificate, which agreement or certificate shall be duly executed and delivered
on behalf of the Company and delivered to the optionee to whom such option is
granted. The option agreement or certificate shall contain such terms,
provisions and conditions not inconsistent with this Plan as may be determined
by the officer executing it.

14.      Termination and Amendment of Plan. Options may no longer be granted
under this Plan after March 13, 2013, and this Plan shall terminate when all
options granted or to be granted hereunder are no longer outstanding. The Board
may at any time terminate this Plan or make such modification or amendment
thereof as it deems advisable; provided, however, that the Board may not,
without approval by the affirmative vote of the holders of a majority of the
shares of Common Stock present in person or by proxy and entitled to vote at the
meeting, (a) increase the maximum number of shares for which options may be
granted under this Plan or the number of shares for which an option may be
granted to any participating director hereunder, (b) change the provisions of
this Plan regarding the termination of the options or the times when they may be
exercised, (c) change the period during which any options may be granted or
remain outstanding or the date on which this Plan shall terminate, (d) change
the designation of the class of persons eligible to receive options, or
otherwise change paragraph 4, (e) materially increase benefits accruing to
option holders under this Plan, or (f) amend this Plan in any manner which would
cause Rule 16b-3 to become inapplicable to this Plan. Termination or any
modification or amendment of this Plan shall not, without consent of a
participant, affect his or her rights under an option previously granted to him
or her.

15.      Tax Withholding. By accepting options under the Plan, each optionee
acknowledges that the Company may be required to withhold taxes in connection
with the exercise of such options in respect of amounts considered to be
compensation includible in the optionee's gross income.

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16.      Governing Law. The validity and construction of this Plan and the
instruments evidencing options shall be governed by the laws of the State of
Delaware, without giving effect to the principles of conflicts of law thereof.

                                    Original Plan Approved by the Board of
                                    Directors on:
                                    MARCH 13, 2003

                                    Original Plan Approved by Stockholders on:
                                    MAY 1, 2003

                                    Amended and Restated Plan Approved by the
                                    Board of Directors on:
                                    OCTOBER 21, 2003

                                    Amended and Restated Plan Approved by
                                    Stockholders on:
                                    OCTOBER 21, 2003

                                    Second Amended and Restated Plan Approved by
                                    the Board of Directors on:
                                    __________, 2004

                                    Second Amended and Restated Plan Approved by
                                    Stockholders on:
                                    _________, 2004

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