Document:

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                                                                    EXHIBIT 10.2

                                 EMC CORPORATION

              1992 EMC CORPORATION STOCK OPTION PLAN FOR DIRECTORS,
                           as amended January 17, 2001

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 AND TERM OF PLAN
     --------------------------------

     The Plan shall become effective on the date on which the Plan is approved
by the stockholders of the Company. No option shall be granted under the Plan
after the completion of ten years from the date on which the Plan was adopted by
the Board, but options granted may extend beyond that date.

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.

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     (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. "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 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 331/3% 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.

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     (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 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
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

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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, County of Middlesex, 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 January 17, 2001

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.

         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.

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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.

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.

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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.

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.

                  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

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                  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 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.

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                  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,
         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

                                   Page 5 of 7

<PAGE>

         "Officer") of the 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, County of Middlesex, 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 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

                                   Page 6 of 7

<PAGE>

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.

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 7 of 7

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