Exhibit 10.2 

 

[Amended April 30, 2003] 

 

**MILLIPORE CORPORATION**

 

**1999 STOCK OPTION PLAN FOR NON-EMPLOYEE DIRECTORS**

 

**1.    *****PURPOSE*******

 

The purpose of the 1999 Stock Option Plan for Non-Employee Directors (the “Plan”) is to advance the interests of Millipore Corporation (the“Company”) by enhancing the ability of the Company to attract and retain non-employee directors who are in a position to make significant contributions to the success of the Company and to reward directors for such contributions throughownership of shares of the Company’s common stock (the “Stock”). 

 

**2.    *****ADMINISTRATION*******

 

The Plan shall be administered by the Governance and Public Policy Committee of the Board of Directors (the “Board”) of the Company (the “Committee”). The Committee shall have authority, notinconsistent with the express provisions of the Plan, (a) to grant options in accordance with the Plan to such directors as are eligible to receive options; (b) to prescribe the form or forms of instruments evidencing options and any otherinstruments required under the Plan and to change such forms from time to time; (c) to adopt, amend and rescind rules and regulations for the administration of the Plan; and (d) to interpret the Plan and to decide any questions and settle allcontroversies and disputes that may arise in connection with the Plan. Such determinations of the Committee shall be conclusive and shall bind all parties. Subject to Section 8, the Committee shall also have the authority, both generally and inparticular 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. 

 

A majority of the members of the Committee shall constitute a quorum, and all determinations of the Committee shall be madeby 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 its members. 

 

All members of the Committee shall be “disinterested persons” within the meaning of Rule 16b-3 under theSecurities Exchange Act of 1934. 

 

**3.    *****EFFECTIVE DATE AND TERM OF PLAN*******

 

The Plan shall become effective on the date on which the Plan is approved by the shareholders of the Company; provided, however, that any options grantedprior to approval shall be subject to the Plan as approved by the shareholders of the Company. No option shall be granted under the Plan after the completion of ten years from the effective date (the “Termination Date”), but optionspreviously 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 optionsgranted under the Plan shall be 250,000. 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 thelimits 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 bythe 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 stockdividend, 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 grantedunder the Plan, the maximum number of shares or securities that may be delivered under the Plan, the exercise price, and other relevant provisions shall be appropriately adjusted by the Committee, whose determination shall be binding on all persons.

 

The Committee may also adjust the number of shares subject tooutstanding 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 (except those described in Section6(i), acquisitions or dispositions of stock or property or any other event if it is determined by the Committee that such adjustment is appropriate to avoid distortion in the operation of the Plan. 

 

**5.    *****ELIGIBILITY FOR OPTIONS*******

 

Directors eligible to receive options under the Plan (“EligibleDirectors”) shall be any director who (i) is not an employee of the Company, and (ii) is not a holder of more than 5% of the outstanding shares of the Stock or a person who is in control of such holder. 

 

**6.    *****TERMS AND CONDITIONS OF OPTIONS*******

 

(a)*    Number ofOptions.*    Each newly elected Eligible Director shall be awarded options covering 5,000 shares of Stock on the date of his or her first election. 

 

Following the initial grants, each Eligible Director shall be awarded options covering 2,500 shares of Stock at the firstDirectors’ Meeting following the Annual Meeting of Shareholders, following his or her initial grant and each anniversary thereof, provided such individual is then an Eligible Director. 

 

(b)*    Exercise Price.*    Theexercise price of each option shall be 100% of the fair market value per share of the Stock at the time the option is granted but not less, in the case of an original issue of authorized stock, then par value per share. The “fair marketvalue” shall be defined as the closing price for Millipore stock on the New York Stock Exchange on the composite tape on the last business day prior to the date on which the option was granted, or if no sale of the stock shall have been made onthe New York Stock Exchange on that day, on the next preceding day on which there was a sale of such stock. 

 

(c)*    Duration of Options.*    The latest date on which an option may be exercised (the “FinalExercise Date”) shall be the date which is ten years from the date the option was granted. 

 

(d)*    Exercise of Options.*

 

(1)    Each option shall first become exercisable upon the completion of one year from the date of grant, at whichtime the option shall be exercisable to the extent of 25% of the shares covered thereby. It shall become exercisable as to an additional 25% of the shares covered thereby on subsequent anniversaries of the date of grant, so that it shall beexercisable in full after the fourth anniversary. 

 

(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) the option certificate 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 an option is exercised by the executor or administrator of a deceased director, or by the person or personsto 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 theauthority of the person or persons exercising the option. 

 

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The Company may, either in the instrument evidencing the option or in a writteninstrument delivered at any time subsequent to the granting of the option provide for an optionee a special exercise period which will apply if an Eligible Director’s services as a director terminate due to retirement at age 70 or such otherage as the Board of Directors may determine from time to time, or he or she ceases to perform services as a director earlier with the consent of the Company (“Special Exercise Period”). The Special Exercise Period will begin on his or hertermination and will end on the earlier of up to the fifth anniversary of his or her termination or the earlier expiration date of the option. During such period the option will be exercisable to the extent it would have been exercisable had theEligible Director continued to perform services as a director for the Company. Any question whether or not an Eligible Director has retired or ceased to perform services as a director shall be determined by the Committee, and its determination shallbe final. With respect to stock options granted on or after December 1, 1997, each optionee shall be provided the Special Exercise Period without further consent of the Company if an optionee’s services as a director terminate due to retirementat age 70 or such other age as the Board of Directors may determine from time to time. 

 

(4)    If an Eligible Director dies while performing services for the Company or during a special exercise periodprovided under this section, his or her option may be exercised in accordance with Section 6(g) below. 

 

Notwithstanding the provisions of the preceding paragraph the Company shall have the right, but shall not be required to repurchase fromany Eligible Director who ceases to render services as a director without the consent and approval of the Company, within six (6) months of the exercise of any options, the shares of the Company’s Common Stock so purchased by such EligibleDirector at their original purchase (or exercise) price. 

 

(e)*    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 ofthe 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 ashareholder with regard to awards under the Plan except as to Stock actually received by him 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 andstate 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 ofissuance, 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 bearan appropriate legend restricting transfer. 

 

(f)*    Nontransferability of Options.*    No option may be transferred other than by will or by the laws of descent and distribution, and during a director’s lifetime an option may beexercised only by him or her. 

 

(g)*    Death.*    Should an Eligible Director die while a director of the Company, or within a special exercise period provided to him or her under Section 6(d)(3), any option held by him or herat death may be exercised by his or her estate, or by the person or persons designated in his or her last will and testament, as follows: In the case of death while an Eligible Director, each option will be exercisable until the earlier of the firstanniversary of his or death and the original expiration date of the option to the extent the option was exercisable by the optionee at the time of death. In the case of death during a special exercise period, each option will be exercisable duringthe remainder of such period to the extent it would have been exercisable had the director lived. 

 

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(h)*    Other Termination of Status of Director.*    If adirector’s service with the Company terminates for any reason other than as provided in paragraphs 6(d)(3) and 6(g) above, all options held by the director shall terminate immediately. 

 

(i)*    Mergers, etc.*    In theevent of a consolidation or merger in which the Company is not the surviving Corporation or which results in the acquisition of substantially all the Company’s outstanding Stock by a single person or entity or by a group of persons and/orentities acting in concert, or in the event of the sale or transfer of substantially all the Company’s assets, all outstanding options shall thereupon terminate, provided that at least 20 days prior to the effective date of any such merger,consolidation or sale of assets, the Board shall either (i) make exercisable, immediately prior to consummation of such merger, consolidation or sale of assets, that portion of all outstanding options determined by multiplying the total number ofshares covered by each option by a fraction (not greater than one) (A) the numerator of which is the number of full months elapsed after the date of grant and prior to such event, and (B) the denominator of which is the number of months between thedate of grant and the date on which the option would have first become exercisable in full, and rounding the resulting number of shares to the nearest whole number, or (ii) if there is a surviving or acquiring corporation, arrange, subject toconsummation of the merger, consolidation or sale of assets, to have that corporation or an affiliate of that corporation grant replacement options. 

 

**7.*****    ASSOCIATION RIGHTS.*******

 

Neither the adoption of the Plan nor the grant of options shall confer upon any Eligible Director the right to continued association with the Company oraffect in any way the right of the Company to terminate its association with a director. Except as specifically provided by the Committee in any particular case, the loss of existing or potential profit in options granted under this Plan shall notconstitute an element of damages in the event of termination of any agreement or arrangement with an option holder even if the termination is in violation of an obligation of the Company to such person under that agreement or arrangement.

 

**8.    *****EFFECT, DISCONTINUANCE, CANCELLATION,AMENDMENT AND TERMINATION.*******

 

Neither adoption ofthe Plan nor the grant of options to a director shall affect the Company’s right to grant to such 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 orarrangements under which stock may be issued to directors. 

 

TheCommittee may at any time discontinue granting options under the Plan. The Committee 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 timebe 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 hereinabove), no such amendment shall, without the approval of the shareholders ofthe Company, (a) increase the maximum number of shares available under the Plan, (b) increase the number of options granted to Eligible Directors, (c) amend the definition of Eligible Director so as to enlarge the group of directors eligible toreceive options under the Plan, (d) reduce the price at which options may be granted, (e) change or extend the times at which options may be granted, or (f) amend the provisions of this Section 8, and no such amendment shall adversely affect therights of any director (without his or consent) under any option previously granted. 

 

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