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                                                                    Exhibit 10.2

                                 EMC CORPORATION

              1992 EMC CORPORATION STOCK OPTION PLAN FOR DIRECTORS,
                             as amended June 7, 2002

1. PURPOSE

     The purpose of this 1992 Stock Option Plan for Directors (the "Plan") is to
advance the interests of EMC Corporation (the "Company") by enhancing the
ability of the Company to attract and retain directors who are in a position to
make significant contributions to the success of the Company and to reward
directors for such contributions through ownership of shares of the Company's
Common Stock (the "Stock").

2. ADMINISTRATION

     The Plan shall be administered by the Board of Directors (the "Board") of
the Company and the Executive Compensation and Stock Option Committee (the
"Committee") of the Board, as set forth herein. The Board and the Committee
shall each have authority, not inconsistent with the express provisions of the
Plan to grant options in accordance with the Plan to such directors as are
eligible to receive options. The Committee shall in addition have authority, not
inconsistent with the express provisions of the Plan, (a) to prescribe the form
or forms of instruments evidencing options and any other instruments required
under the Plan and to change such forms from time to time; (b) to adopt, amend
and rescind rules and regulations for the administration of the Plan; and (c) to
interpret the Plan and decide any questions and settle all controversies and
disputes that may arise in connection with the Plan. Such determinations of the
Committee or the Board, as the case may be, shall be conclusive and shall bind
all parties. Subject to Section 7, the Committee shall also have the authority,
both generally and in particular instances, to waive compliance by a director
with any obligation to be performed by him or her under an option and to waive
any condition or provision of an option. Notwithstanding the preceding two
sentences, any change to the terms of an option granted hereunder shall be
approved by the Board to the extent such change would be deemed to be a new
option grant or such terms relate to a subsequent transaction that would not be
exempt from Section 16(b) of the Securities Exchange Act of 1934 in the absence
of such approval.

3. EFFECTIVE DATE

     The Plan shall become effective on the date on which the Plan is approved
by the stockholders of the Company.

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4. SHARES SUBJECT TO THE PLAN

     (a) NUMBER OF SHARES. Subject to adjustment as provided in Section 4(c),
the aggregate number of shares of Stock that may be delivered upon the exercise
of options granted under the Plan shall be 14,400,000. If any option granted
under the Plan terminates without having been exercised in full, the number of
shares of Stock as to which such option was not exercised shall be available for
future grants within the limits set forth in this Section 4(a).

     (b) SHARES TO BE DELIVERED. Shares delivered under the Plan shall be
authorized but unissued Stock or, if the Board so decides in its sole
discretion, previously issued Stock acquired by the Company and held in
treasury. No fractional shares of Stock shall be delivered under the Plan.

     (c) CHANGES IN STOCK. In the event of a stock dividend, stock split or
other change in corporate structure or capitalization affecting the Stock, the
number and kind of shares of stock or securities of the Company to be subject to
options then outstanding or to be granted under the Plan, and the option price,
and other relevant provisions shall be appropriately adjusted by the Committee,
whose determination shall be binding on all persons.

5. ELIGIBILITY FOR OPTIONS

     Directors eligible to receive options under the Plan ("Eligible Directors")
shall be those directors who (i) are not employees of the Company; and (ii) are
not holders of more than 5% of the outstanding shares of the Stock or persons in
control of such holders.

6. TERMS AND CONDITIONS OF OPTIONS

     (a) FORMULA OPTIONS. Eligible Directors who are directors on the date of
stockholder approval of the Plan shall be awarded options to purchase up to
40,000 shares of Stock. Following stockholder approval of the plan, each newly
elected Eligible Director shall be awarded options to purchase up to 40,000
shares of Stock on the date of his or her first election.

     (b) DISCRETIONARY OPTIONS. In addition to the formula options provided for
above, the Committee or the Board may award options to purchase shares of Stock
to Eligible Directors on such terms as it may determine not inconsistent with
this Plan.

     (c) EXERCISE PRICE. The exercise price of each option shall be not less
than 50% of the fair market value per share of the Stock at the time of the
grant. Unless the Board or the Committee specifies otherwise with respect to a
particular formula option, the exercise price of each formula option provided
for in Section 6(a) above shall be the fair market value per share of the Stock
at the time of grant. "Fair market value" shall mean (i) the composite closing
price per share of the Stock on the principal national securities exchange or
market on which the Stock is then traded or (ii) if the Stock is not then traded
on any such exchange or market, the fair market value as

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determined from time to time in good faith by the Board or, where appropriate,
by the Committee, taking into account all information which the Board, or the
Committee, considers relevant.

     (d) DURATION OF OPTIONS. The latest date on which an option may be
exercised (the "Final Exercise Date") shall be the date which is ten years from
the date the option was granted.

     (e) EXERCISE OF OPTIONS.

     (1) Each formula option shall become exercisable in increments of
33 1/3% of the shares covered thereby on each of the first through third
anniversaries of the grant. Each discretionary option shall become
exercisable at such time or times as the Committee or the Board shall
determine.

     (2) Any exercise of an option shall be in writing, signed by the proper
person and delivered or mailed to the Company, accompanied by (a) an option
exercise notice and any other documents required by the Committee; and (b)
payment in full for the number of shares for which the option is exercised.

     (3) If any option is exercised by the executor or administrator of a
deceased director, or by the person or persons to whom the option has been
transferred by the director's will or the applicable laws of descent and
distribution, the Company shall be under no obligation to deliver Stock pursuant
to such exercise until the Company is satisfied as to the authority of the
person or persons exercising the option.

     (4) The Company shall have the right to settle any option, and to terminate
the rights of the holder thereof, by paying to the option holder the difference
between the fair market value of the Stock at the time of settlement and the
purchase price.

     (f) PAYMENT FOR AND DELIVERY OF STOCK. Stock purchased under the Plan shall
be paid for as follows: (i) in cash or by certified check, bank draft or money
order payable to the order of the Company; (ii) through the delivery of shares
of Stock having a fair market value on the last business day preceding the date
of exercise equal to the purchase price; or (iii) by a combination of cash and
Stock as provided in clauses (i) and (ii) above.

     An option holder shall not have the rights of a stockholder with regard to
awards under the Plan except as to Stock actually received by him or her under
the Plan.

     The Company shall not be obligated to deliver any shares of Stock (a)
until, in the opinion of the Company's counsel, all applicable Federal and state
laws and regulations have been complied with; and (b) if the outstanding Stock
is at the time listed on any stock exchange, until the shares to be delivered
have been listed or authorized to be listed on such exchange upon official
notice of issuance; and (c) until all other legal matters in connection with the
issuance and delivery of such shares have been approved by the Company's
counsel. If the sale of Stock has not been

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registered under the Securities Act of 1933, as amended, the Company may
require, as a condition to exercise of the option, such representations or
agreements as counsel for the Company may consider appropriate to avoid
violation of such Act and may require that the certificates evidencing such
Stock bear an appropriate legend restricting transfer.

     (g) NONTRANSFERABILITY OF OPTIONS/EXCEPTIONS. No option may be transferred
by a director otherwise than by will, by the laws of descent and distribution or
pursuant to a qualified domestic relations order, and during the director's
lifetime the option may be exercised only by him or her; PROVIDED, HOWEVER, that
the Board of Directors or the Committee, as applicable, in its discretion, may
allow for transferability of options by the Participant to "Immediate Family
Members." Immediate Family Members means children, grandchildren, spouse or
common law spouse, siblings or parents of the Participant or to bona fide
trusts, partnerships or other entities controlled by and of which the
beneficiaries are Immediate Family Members of the Participant. Any option grants
that are transferable are further conditioned on the Participant and Immediate
Family Members agreeing to abide by the Company's then current stock option
transfer guidelines.

     (h) DEATH. If a director dies at the time he or she is entitled to exercise
an option, then the portion formerly exercisable by the director may be
exercised by the director's executor or administrator, or by the person to whom
the option is transferred under the applicable laws of descent and distribution,
within three years of the death of the director, subject to earlier termination
of an option pursuant to Section 6(d).

     (i) OTHER TERMINATION OF STATUS OF DIRECTOR. All previously unexercised
options terminate and are forfeited automatically upon the termination of the
director's service with the Company, unless the Committee or the Board of
Directors specifies otherwise.

     (j) MERGERS, ETC. In the event of a dissolution, liquidation, consolidation
or merger in which the Company is not the surviving corporation, or which
results in the acquisition of substantially all of the Company's stock by a
single person or entity or by a group of persons and entities acting in concert
all outstanding options will thereupon terminate, provided at least twenty days
prior to the effective date of any such dissolution, liquidation, consolidation
or merger, the Committee or the Board may either (i) make all outstanding
options immediately exercisable or (ii) arrange to have the surviving
corporation grant replacement options for the option holders.

     (k) CANCELLATION AND RESCISSION OF OPTIONS. The following provisions of
this Section 6(k) shall apply to options granted on or after July 1, 1998. The
Committee or the Board of Directors may cancel, rescind, suspend or otherwise
limit or restrict any unexpired option at any time if the director engages in
"Detrimental Activity" (as defined below). Furthermore, in the event a director
engages in Detrimental Activity at any time prior to or during the six months
after any exercise of an option, such exercise may be rescinded until the later
of (i) two years after such exercise or (ii) two years after such Detrimental
Activity. Upon such rescission, the Company at its sole option may require the
director to (i) deliver and transfer to the Company the shares of Common Stock
received by the director upon such exercise, (ii) pay to the Company an amount

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equal to any realized gain received by the director from such exercise, or (iii)
pay to the Company an amount equal to the market price (as of the exercise date)
of the Common Stock acquired upon such exercise minus the respective exercise
price. The Company shall be entitled to set-off any such amount owed to the
Company against any amount owed to the director by the Company. As used in this
Section 6(k), "Detrimental Activity" shall include: (i) the failure to comply
with the terms of the Plan or certificate or agreement evidencing the option;
(ii) the failure to comply with any term set forth in the Company's Key Employee
Agreement (irrespective of whether the director is a party to the Key Employee
Agreement), (iii) any activity that results in termination of the director's
employment for cause; (iv) a violation of any rule, policy, procedure or
guideline of the Company; or (v) the director being convicted of, or entering a
guilty plea with respect to a crime whether or not connected with the Company.
Further, if the Company commences an action against such director (by way of
claim or counterclaim and including declaratory claims), in which it is
preliminarily or finally determined that such director engaged in Detrimental
Activity or otherwise violated this Section 6(k), the director shall reimburse
the Company for all costs and fees incurred in such action, including but not
limited to, the Company's reasonable attorneys' fees.

         (l) JURISDICTION AND GOVERNING LAW. The parties submit to the exclusive
jurisdiction and venue of the federal or state courts of the Commonwealth of
Massachusetts to resolve issues that may arise out of or relate to the Plan or
the same subject matter. The Plan shall be governed by the laws of the
Commonwealth of Massachusetts, excluding its conflicts or choice of law rules or
principles that might otherwise refer construction or interpretation of this
Plan to the substantive law of another jurisdiction.

7. EFFECT, DISCONTINUANCE, CANCELLATION, AMENDMENT AND TERMINATION

     Neither adoption of the Plan nor the grant of options to a director shall
affect the Company's right to grant to such director or any director options
that are not subject to the Plan, to issue to such directors Stock as a bonus or
otherwise, or to adopt other plans or arrangements under which Stock may be
issued to directors.

     The Committee or the Board may at any time discontinue granting options
under the Plan. The Board may at any time, or times, amend the Plan for the
purpose of satisfying 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 the 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, (a) increase the
maximum number of shares available under the Plan; (b) increase the number of
options to be granted to Eligible Directors; (c) amend the definition of
Eligible Directors so as to enlarge the group of directors eligible to receive
options under the Plan; (d) reduce the price at which options may be granted
other than as permitted in the Plan; or (e) amend the provisions of this
Section 7.

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                                                                    Exhibit 10.3

                                 EMC CORPORATION

                 1993 STOCK OPTION PLAN, as amended June 7, 2002

1. PURPOSE.

     The purpose of the EMC Corporation 1993 Stock Option Plan is to enable EMC
Corporation to provide a special incentive to a limited number of key employees
of the Company and its Subsidiaries, if any, who are in a position to have a
significant effect upon the Company's business and earnings. In order to
accomplish this purpose, the Plan authorizes the grant to such key employees of
options to purchase Common Stock of the Company. Increased ownership of Common
Stock will provide such key employees with an additional incentive to take into
account the long-term interests of the Company.

2. DEFINITIONS.

     As used herein, the following words or terms have the meanings set forth
below. The masculine gender is used throughout the Plan but is intended to apply
to members of both sexes.

     2.1 "Board of Directors" means the Board of Directors of the Company.

     2.2 "Code" means the Internal Revenue Code of 1986, as amended from time to
time, or any successor statute.

     2.3 "Committee" means the Committee appointed by the Board of Directors to
administer the Plan or the Board of Directors as a whole if no appointment is
made.

     2.4 "Common Stock" means the Common Stock of the Company.

     2.5 "Company" means EMC Corporation, a corporation established under the
laws of The Commonwealth of Massachusetts.

     2.6 "Fair Market Value" in the case of a share of Common Stock on a
particular day, means the fair market value as determined from time to time by
the Board of Directors or, where appropriate, by the Committee, taking into
account all information which the Board of Directors, or the Committee,
considers relevant.

     2.7 "Incentive Stock Option" means a stock option that satisfies the
requirements of Section 422 of the Code.

     2.8 "Participant" means an individual holding a stock option or stock
options granted to him under the Plan.

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     2.9 "Plan" means the EMC Corporation 1993 Stock Option Plan set forth
herein.

     2.10 "Subsidiary" or "Subsidiaries" means a corporation or corporations in
which the Company owns, directly or indirectly, stock possessing 50 percent or
more of the total combined voting power of all classes of stock.

     2.11 "Ten Percent Stockholder" means any person who, at the time an option
is granted, owns or is deemed to own stock (as determined in accordance with
Sections 422 and 424 of the Code) possessing more than ten percent (10%) of the
total combined voting power of all classes of stock of the Company or its parent
or a subsidiary.

3. ADMINISTRATION.

     3.1 The Plan shall be administered by the Committee and, to the extent
provided herein, the Board of 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 the Plan may be made without notice or meeting of the Committee by a
writing signed by a majority of the Committee members.

     3.2 Subject to the provisions set forth herein, each of the Committee and
the Board of Directors shall have full authority to determine the provisions of
options to be granted under the Plan. Subject to the provisions set forth
herein, the Committee shall have full authority to interpret the terms of the
Plan and of options granted under the Plan, to adopt, amend and rescind rules
and guidelines for the administration of the Plan and for its own acts and
proceedings and to decide all questions and settle all controversies and
disputes which may arise in connection with the Plan; PROVIDED, HOWEVER, that
any change to the terms of an option granted hereunder shall be approved by the
Board of Directors to the extent such change would be deemed to be a new option
grant or such terms relate to a subsequent transaction that would not be exempt
from Section 16(b) of the Securities Exchange Act of 1934 in the absence of such
approval.

     3.3 The decision of the Committee or the Board of Directors, as applicable,
on any matter as to which the Committee or the Board of Directors, as
applicable, is given authority under subsection 3.2 shall be final and binding
on all persons concerned.

     3.4 Nothing in the Plan shall be deemed to give any officer or employee, or
his legal representatives or assigns, any right to participate in the Plan,
except to such extent, if any, as the Committee or the Board, as applicable, may
have determined or approved pursuant to the provisions of the Plan.

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4. SHARES SUBJECT TO THE PLAN.

     4.1 The maximum number of shares of Common Stock that may be delivered upon
the exercise of options granted under the Plan shall be 180,000,000, subject to
adjustment in accordance with the provisions of Section 8.

     4.2 If any option granted under the Plan terminates without having been
exercised in full (including an option which terminates by agreement between the
Company and the Participant), or if shares of Common Stock are reacquired by the
Company upon the rescission of an exercise of an option, the number of shares of
Common Stock as to which an option has not been exercised prior to termination,
or have been reacquired upon the rescission of an option, shall be available for
future grants within the limits set forth in subsection 4.1.

     4.3 Shares of Common Stock delivered upon the exercise of options shall
consist of shares of authorized and unissued Common Stock, except that the Board
of Directors may from time to time in its discretion determine in any case the
shares to be so delivered shall consist of shares of authorized and issued
Common Stock reacquired by the Company and held in its Treasury. No fractional
shares of Common Stock shall be delivered upon the exercise of an option.

5. ELIGIBILITY FOR OPTIONS.

     Employees eligible to receive options under the Plan shall be those key
employees of the Company and its Subsidiaries, if any, who, in the opinion of
the Committee, are in a position to have a significant effect upon the Company's
business and earnings. Members of the Board of Directors of the Company or a
Subsidiary who are not employed as regular salaried officers or employees of the
Company or a Subsidiary may not participate in the Plan.

6. GRANT OF OPTIONS.

     6.1 From time to time while the Plan is in effect, each of the Committee
and the Board of Directors may, in its absolute discretion, select from among
the persons eligible to receive options (including persons to whom options were
previously granted) those persons to whom options are to be granted.

     6.2 Each of the Committee and the Board of Directors shall, in its absolute
discretion, determine the number of shares of Common Stock to be subject to each
option granted by it under the Plan.

     6.3 No Incentive Stock Option may be granted under the Plan after May 12,
2003, but options theretofore granted may extend beyond that date.

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7. PROVISIONS OF OPTIONS.

     7.1 INCENTIVE STOCK OPTIONS OR OTHER OPTIONS. Options granted under the
Plan may be either Incentive Stock Options or options which do not qualify as
Incentive Stock Options, as the Committee or the Board of Directors shall
determine at the time of each grant of options hereunder.

     7.2 STOCK OPTION CERTIFICATES OR AGREEMENTS. Options granted under the Plan
shall be evidenced by certificates or agreements in such form as the Committee
shall from time to time approve. Such certificates or agreements shall comply
with the terms and conditions of the Plan and may contain such other provisions
not inconsistent with the terms and conditions of the Plan as the Committee
shall deem advisable. In the case of options intended to qualify as Incentive
Stock Options, the certificates or agreements shall contain such provisions
relating to exercise and other matters as are required of incentive stock
options under the Code.

     7.3 TERMS AND CONDITIONS. All options granted under the Plan shall be
subject to the following terms and conditions to the extent applicable and to
such other terms and conditions not inconsistent therewith as the Committee or
the Board of Directors shall determine:

          7.3.1 EXERCISE PRICE. The exercise price per share of Common Stock
     with respect to each option shall be as determined by the Committee but in
     the case of an Incentive Stock Option not less than 100% (110% in the case
     of an Incentive Stock Option granted to a Ten Percent Stockholder) of the
     Fair Market Value per share at the time the option is granted. In the case
     of an option which does not qualify as an Incentive Stock Option, the
     exercise price per share of Common Stock shall be not less than par value.

          7.3.2 VALUE OF SHARES OF COMMON STOCK SUBJECT TO INCENTIVE STOCK
     OPTIONS. Each eligible employee may be granted Incentive Stock Options only
     to the extent that, in the aggregate under this Plan and all incentive
     stock option plans of the Company and any related corporation, such
     Incentive Stock Options do not become exercisable for the first time by
     such employee during any calendar year in a manner which would entitle the
     employee to purchase more than $100,000 in fair market value (determined at
     the time the Incentive Stock Options were granted) of Common Stock in that
     year. Any options granted to an employee in excess of such amount will be
     granted as Non-Qualified Options.

          7.3.3 PERIOD OF OPTIONS. An option shall be exercisable during such
     period of time as the Committee or Board of Directors may specify (subject
     to subsection 7.4 below), but in the case of an Incentive Stock Option not
     after the expiration of ten years (five years in the case of an Incentive
     Stock Option granted to a Ten Percent Stockholder) from the date the option
     is granted.

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          7.3.4 EXERCISE OF OPTIONS.

               7.3.4.1 Each option shall be made exercisable at such time or
          times as the Committee or the Board of Directors shall determine. In
          the case of an option made exercisable in installments, the Committee
          or the Board of Directors may later determine to accelerate the time
          at which one or more of such installments may be exercised.

               7.3.4.2 Any exercise of an option shall be in writing signed by
          the proper person and delivered or mailed to the General Counsel of
          the Company, accompanied by an option exercise notice and payment in
          full for the number of shares in respect to which the option is
          exercised.

               7.3.4.3 In the event an option is exercised by the executor or
          administrator of a deceased Participant, or by the person or persons
          to whom the option has been transferred by the Participant's will or
          the applicable laws of descent and distribution, the Company shall be
          under no obligation to deliver stock thereunder until the Company is
          satisfied that the person or persons exercising the option is or are
          the duly appointed executor or administrator of the deceased
          Participant or the person or persons to whom the option has been
          transferred by the Participant's will or by the applicable laws of
          descent and distribution.

               7.3.4.4 The Committee or the Board of Directors may at the time
          of grant condition the exercise of an option upon agreement by the
          Participant to subject the Common Stock to any restrictions on
          transfer or repurchase rights in effect on the date of exercise, upon
          representations of continued employment and upon other terms not
          inconsistent with this Plan. Any such conditions shall be set forth in
          the option certificate or other document evidencing the option.

               7.3.4.5 In the case of an option that is not an Incentive Stock
          Option, the Committee shall have the right to require that the
          individual exercising the option to remit to the Company an amount
          sufficient to satisfy any federal, state, or local withholding tax
          requirements (or makes other arrangements satisfactory to the Company
          with regard to such taxes) prior to the delivery of any Common Stock
          pursuant to the exercise of the option. In the case of an Incentive
          Stock Option, if at the time the Incentive Stock Option is exercised
          the Committee 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 Common Stock received upon
          exercise, the Committee may require as a condition of exercise that
          the individual exercising the Incentive Stock Option agree (i) to
          inform the Company promptly of any

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          disposition (within the meaning of Section 422 (a) (1) of the Code and
          the regulations thereunder) of Common Stock received upon exercise,
          and (ii) to give such security as the Committee 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 Committee to preserve the adequacy of such
          security.

               7.3.4.6 In the case of an option that is exercised by an
          individual that is subject to taxation in a foreign jurisdiction, the
          Committee shall have the right to require the individual exercising
          the option to remit to the Company an amount sufficient to satisfy any
          federal or withholding requirement of that foreign jurisdiction (or
          make other arrangements satisfactory to the Company with regard to
          such taxes prior to the delivery of any Common Stock pursuant to the
          exercise of the option).

          7.3.5 PAYMENT FOR AND DELIVERY OF STOCK. The shares of stock purchased
     on any exercise of an option granted hereunder shall be paid for in full in
     cash or, if expressly permitted by the terms of the option, in shares of
     unrestricted Common Stock at the time of such exercise or, if so permitted,
     a combination of such cash and Common Stock. A Participant shall not have
     the rights of a stockholder with respect to awards under the Plan except as
     to stock actually issued to him.

          7.3.6 LISTING OF STOCK, WITHHOLDING AND OTHER LEGAL REQUIREMENTS. The
     Company shall not be obligated to deliver any stock until all federal and
     state laws and regulations which the Company may deem applicable have been
     complied with, nor, in the event the outstanding Common Stock is at the
     time listed upon any stock exchange, until the stock to be delivered has
     been listed or authorized to be added to the list upon official notice of
     issuance to such exchange. In addition, if the shares of stock subject to
     any option have not been registered in accordance with the Securities Act
     of 1933, as amended, the Company may require the person or persons who
     wishes or wish to exercise such option to make such representation or
     agreement with respect to the sale of stock acquired on exercise of the
     option as will be sufficient, in the opinion of the Company's counsel, to
     avoid violation of said Act, and may also require that the certificates
     evidencing said stock bear an appropriate restrictive legend.

          7.3.7 NON-TRANSFERABILITY OF OPTIONS. No option may be transferred by
     the Participant otherwise than by will, by the laws of descent and
     distribution or pursuant to a qualified domestic relations order, and
     during the Participant's lifetime the option may be exercised only by him
     or her; PROVIDED, HOWEVER, that the Board of Directors or the Committee, as
     applicable, in its discretion, may allow for transferability of
     non-qualified stock options by the Participant to "Immediate Family
     Members." Immediate Family Members means children,

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     grandchildren, spouse or common law spouse, siblings or parents of the
     Participant or to bona fide trusts, partnerships or other entities
     controlled by and of which the beneficiaries are Immediate Family Members
     of the Participant. Any option grants that are transferable are further
     conditioned on the Participant and Immediate Family Members agreeing to
     abide by the Company's then current stock option transfer guidelines.

          7.3.8 DEATH. If a Participant dies at a time when he is entitled to
     exercise an Incentive Stock Option, then at any time or times within three
     years after his death such Incentive Stock Option may be exercised, as to
     all or any of the shares which the Participant was entitled to purchase
     thereunder immediately prior to his death, by his executor or administrator
     or the person or persons to whom the Incentive Stock Option is transferred
     by will or the applicable laws of descent and distribution, and except as
     so exercised such Incentive Stock Option shall expire at the end of such
     three-year period. In no event, however, may any Incentive Stock Option
     granted under the Plan be exercised after the expiration of ten years (five
     years in the case of an Incentive Stock Option granted to a Ten Percent
     Stockholder) from the date the Incentive Stock Option was granted.

          7.3.9 TERMINATION OF EMPLOYMENT. If the employment of a Participant
     terminates for any reason other than his death, all options held by the
     Participant shall thereupon expire at 5 p.m. United States eastern time on
     the date of termination unless the option by its terms, or the Committee or
     the Board of Directors by resolution, shall expressly allow the Participant
     to exercise any or all of the options held by him after termination;
     provided, that notwithstanding any such express allowance, any such option
     which is an Incentive Stock Option shall in any event expire no later than
     three months after such termination of employment, or after the expiration
     of ten years (five years in the case of an Incentive Stock Option granted
     to a Ten Percent Stockholder) from the date the Incentive Stock Option was
     granted, whichever occurs first. The Company shall have the sole discretion
     to set the date of termination for purposes of the Plan, without regard to
     any notice period or other obligation under the labor laws of the
     jurisdiction where the Participant is employed. If the Committee or the
     Board of Directors so decides, an option may provide that a leave of
     absence granted by the Company or Subsidiary is not a termination of
     employment for the purpose of this subsection 7.3.9, and in the absence of
     such a provision the Committee may in any particular case determine that
     such a leave of absence is not a termination of employment for such
     purpose. The Committee shall also determine all other matters relating to
     continuous employment.

          7.3.10 CANCELLATION AND RESCISSION OF OPTIONS. The following
     provisions of this Section 7.3.10 shall apply to options granted on or
     after July 1, 1998 to (i) Participants who are classified by the Company or
     a Subsidiary as an executive officer, senior officer, or officer
     (collectively, an "Officer") of the

                                  Page 7 of 10

<PAGE>

     Company or a Subsidiary; and (ii) certain other Participants designated by
     the Committee or the Board of Directors to be subject to the terms of this
     Section 7.3.10 (such designated Participants together with Officers
     referred to collectively as "Senior Participants"). The Committee or the
     Board of Directors may cancel, rescind, suspend or otherwise limit or
     restrict any unexpired option at any time if the Senior Participant engages
     in "Detrimental Activity" (as defined below). Furthermore, in the event a
     Senior Participant engages in Detrimental Activity at any time prior to or
     during the six months after any exercise of an option, such exercise may be
     rescinded until the later of (i) two years after such exercise or (ii) two
     years after such Detrimental Activity. Upon such rescission, the Company at
     its sole option may require the Senior Participant to (i) deliver and
     transfer to the Company the shares of Common Stock received by the Senior
     Participant upon such exercise, (ii) pay to the Company an amount equal to
     any realized gain received by the Senior Participant from such exercise, or
     (iii) pay to the Company an amount equal to the market price (as of the
     exercise date) of the Common Stock acquired upon such exercise minus the
     respective exercise price. The Company shall be entitled to set-off any
     such amount owed to the Company against any amount owed to the Senior
     Participant by the Company. As used in this subsection 7.3.10, "Detrimental
     Activity" shall include: (i) the failure to comply with the terms of the
     Plan or certificate or agreement evidencing the option; (ii) the failure to
     comply with any term set forth in the Company's Key Employee Agreement
     (irrespective of whether the Senior Participant is a party to the Key
     Employee Agreement); (iii) any activity that results in termination of the
     Senior Participant's employment for cause; (iv) a violation of any rule,
     policy, procedure or guideline of the Company; or (v) the Senior
     Participant being convicted of, or entering a guilty plea with respect to a
     crime whether or not connected with the Company. Further, if the Company
     commences an action against such Senior Participant (by way of claim or
     counterclaim and including declaratory claims), in which it is
     preliminarily or finally determined that such Senior Participant engaged in
     Detrimental Activity or otherwise violated this Section 7.3.10, the Senior
     Participant shall reimburse the Company for all costs and fees incurred in
     such action, including but not limited to, the Company's reasonable
     attorneys' fees.

          7.3.11 JURISDICTION AND GOVERNING LAW. The parties submit to the
     exclusive jurisdiction and venue of the federal or state courts of the
     Commonwealth of Massachusetts to resolve issues that may arise out of or
     relate to the Plan or the same subject matter. The Plan shall be governed
     by the laws of the Commonwealth of Massachusetts, excluding its conflicts
     or choice of law rules or principles that might otherwise refer
     construction or interpretation of this Plan to the substantive law of
     another jurisdiction.

     7.4 AUTHORITY OF THE COMMITTEE. The Committee shall have the authority,
either generally or in particular instances, to waive compliance by a
Participant with

                                  Page 8 of 11

<PAGE>

any obligation to be performed by him under an option and to waive any condition
or provision of an option, except that the Committee may not (i) increase the
total number of shares covered by any Incentive Stock Option (except in
accordance with Section 8), (ii) reduce the option price per share of any
Incentive Stock Option (except in accordance with Section 8) or (iii) extend the
term of any Incentive Stock Option to more than ten years, subject, however, to
the provisions of Section 10.

8. CHANGES IN STOCK.

     In the event of a stock dividend, stock split or other change in corporate
structure or capitalization affecting the Common Stock that becomes effective
after the adoption of the Plan by the Board of Directors, the Committee shall
make appropriate adjustments in (i) the number and kind of shares of stock on
which options may thereafter be granted hereunder, (ii) the number and kind of
shares of stock remaining subject to each option outstanding at the time of such
change and (iii) the option price. The Committee's determination shall be
binding on all persons concerned. Subject to any required action by the
stockholders, if the Company shall be the surviving corporation in any merger or
consolidation (other than a merger or consolidation in which the Company
survives but in which a majority of its outstanding shares are converted into
securities of another corporation or are exchanged for other consideration), any
option granted hereunder shall pertain and apply to the securities which a
holder of the number of shares of stock of the Company then subject to the
option would have been entitled to receive, but a dissolution or liquidation of
the Company or a merger or consolidation in which the Company is not the
surviving corporation or in which a majority of its outstanding shares are so
converted or exchanged shall cause every option hereunder to terminate; provided
that if any such dissolution, liquidation, merger or consolidation is
contemplated, the Company shall either arrange for any corporation succeeding to
the business and assets of the Company to issue to the Participants replacement
options (which, in the case of Incentive Stock Options, satisfy, in the
determination of the Committee, the requirements of Section 424 of the Code) on
such corporation's stock which will to the extent possible preserve the value of
the outstanding options or shall make the outstanding options fully exercisable
at least 20 days before the effective date of any such dissolution, liquidation,
merger or consolidation. The existence of the Plan shall not prevent any such
change or other transaction and no Participant thereunder shall have any right
except as herein expressly set forth.

9. EMPLOYMENT RIGHTS.

     Neither the adoption of the Plan nor any grant of options confers upon any
employee of the Company or a Subsidiary any right to continued employment with
the Company or a Subsidiary, as the case may be, nor does it interfere in any
way with the right of the Company or a Subsidiary to terminate the employment of
any of its employees at any time.

                                  Page 9 of 10

<PAGE>

10. DISCONTINUANCE, CANCELLATION, AMENDMENT AND TERMINATION.

     The Committee or the Board of Directors may at any time discontinue
granting options under the Plan and, with the consent of the Participant, may at
any time cancel an existing option in whole or in part and grant another option
to the Participant for such number of shares as the Committee or the Board of
Directors specifies. The Board of Directors may at any time or times amend the
Plan for the purpose of satisfying the requirements 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 the Plan as to any further grants of
options, provided that no such amendment shall without the approval of the
stockholders of the Company (a) increase the maximum number of shares available
under the Plan, (b) change the group of employees eligible to receive options
under the Plan, (c) reduce the exercise price of outstanding incentive options
or reduce the price at which incentive options may be granted, (d) extend the
time within which options may be granted, (e) alter the Plan in such a way that
incentive options granted or to be granted hereunder would not be considered
incentive stock options under Section 422 of the Code, or (f) amend the
provisions of this Section 10, and no such amendment shall adversely affect the
rights of any employee (without his consent) under any option previously
granted.

11. EFFECTIVE DATE.

     The Plan became effective immediately upon its approval by the stockholders
of the Company at the Annual Meeting on May 12, 1993.

                                  Page 10 of 10

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