Document:

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                                                                     EXHIBIT 4.2

                            ROPER INDUSTRIES, INC.

                                    BY-LAWS

                 AMENDED AND RESTATED AS OF FEBRUARY 22, 2000

                                   ARTICLE I
                                   ---------

                            Stockholders' Meetings
                            ----------------------

          1.   Places of meetings.  All meetings of stockholders shall be held
               ------------------
at such place or places in or outside of Delaware as the board of directors may
from time to time determine or as may be designated in the notice of meeting or
waiver of notice thereof, subject to any provisions of the laws of Delaware.

          2.   Annual Meetings.  The annual meeting of the stockholders shall be
               ---------------
held on such date as the board of directors may determine and at the time and
place as shall be decided by the board of directors and indicated in the notice
of the meeting.  The board of directors shall be elected thereat and such other
business transacted as may be specified in the notice of the meeting, or as may
be properly brought before the meeting.  Written notice of the time and place of
the annual meeting shall be given by mail to each stockholder entitled to vote
at his address as it appears on the records of the corporation not less than the
minimum nor more than the maximum number of days permitted under the laws of
Delaware prior to the scheduled date thereof, unless such notice is waived as
provided by Article VIII of these By-laws.

          3.   Special Meetings.  A special meeting of stockholders may be
               ----------------
called at any time by order of the board of directors or the executive
committee.  Written notice of the time, place and specific purposes of such
meetings shall be given by mail to each stockholder entitled to vote thereat at
his address as it appears on the records of the corporation not less than the
minimum nor more than the maximum number of days prior to the scheduled date
thereof permitted under the laws of Delaware, unless such notice is waived as
provide by Article VIII of these By-laws.

          4.   Meetings without notice.  Meetings of the stockholders may be
               -----------------------
held at any time without notice when all the stockholders entitled to vote
thereat are present in person or by proxy.

          5.   Voting.  At all meetings of stockholders, each stockholder
               ------
entitled to vote on the record date as determined under Article V Section 3 of
these By-laws or if not so determined as prescribed under the laws of Delaware
shall be entitled to such number of votes for each share of stock standing on
record in his name, as shall be determined in accordance with the provisions of
Article 4 of the certificate of incorporation or any amendment thereto.

          6.   Quorum and Action.  At any stockholders' meeting, a
               -----------------
majority of the number of shares of stock outstanding and entitled to vote
thereat present in person or by proxy
<PAGE>

shall constitute a quorum, but a smaller interest may adjourn any meeting from
time to time, and the meeting may be held as adjourned without further notice,
subject to such limitations as may be imposed under the laws of Delaware. When a
quorum is present at any meeting, a majority of the voting power present in
person or by proxy and entitled to vote on any question shall decide any such
question brought before such meeting unless the question is one upon which a
different vote is required by express provision of the laws of Delaware, the
certificate of incorporation or these By-laws, in which case such express
provision shall govern.

          7.   List of stockholders.  At least ten days before every
               --------------------
meeting, a complete list of the stockholders entitled to vote at the meeting,
arranged in alphabetical order and showing the address of and the number of
shares registered in the name of each stockholder, shall be prepared by the
secretary or the transfer agent in charge of the stock ledger of the
corporation.  Such list shall be open for examination by any stockholder as
required by the laws of Delaware.  The stock ledger shall be the only evidence
as to who are the stockholders entitled to examine such list or the books of the
corporation or to vote in person or by proxy at such meeting.

          8.   Advance Notice of Stockholder Nominees for Director and Other
               -------------------------------------------------------------
               Stockholder Proposals.
               ---------------------

               (a)  The matters to be considered and brought before any annual
          or special meeting of stockholders of the corporation shall be limited
          to only such matters, including the nomination and election of
          directors, as shall be brought properly before such meeting in
          compliance with the procedures set forth in this Section 8.

               (b)  For any matter to be properly brought before any annual
          meeting of stockholders, the matter must be (i) specified in the
          notice of annual meeting given by or at the direction of the board of
          directors, (ii) otherwise brought before the annual meeting by or at
          the direction of the board of directors or (iii) brought before the
          annual meeting in the manner specified in this Section 8(b) by a
          stockholder of record entitled to vote at the annual meeting of
          shareholders on such matter.  In addition to any other requirements
          under applicable law and the certificate of incorporation and By-laws
          of the corporation, persons nominated by stockholders for election as
          directors of the corporation and any other proposals by stockholders
          shall be properly brought before the meeting only if notice of any
          such matter to be presented by a stockholder at such meeting of
          stockholders (the "Stockholder Notice") shall be delivered to the
          secretary of the corporation at the principal executive office of the
          corporation not less than ninety (90) not more than one hundred and
          twenty (120) days prior to the first anniversary date of the annual
          meeting for the preceding year; provided, however, if and only if the
          annual meeting is not scheduled to be held within a period that
          commences 30 days before such anniversary date and ends 30 days after
          such anniversary date (an annual meeting date outside such period
          being referred to herein as an "Other Meeting Date"), such Stockholder
          Notice shall be given in the manner provided herein by the later of
          the close of business on (i) the date ninety days (90) prior to such
          Other Meeting Date or (ii) the tenth day following the date such Other
<PAGE>

          Meeting Date is first publicly announced or disclosed.  Any
          stockholder desiring to nominate any person or persons (as the case
          may be) for election as a director or directors of the corporation
          shall deliver, as part of such Stockholder Notice, a statement in
          writing setting forth the name of the person or persons to be
          nominated, the number and class of all shares of each class of stock
          of the corporation owned of record and beneficially by each such
          person, as reported to such stockholder by such nominee(s), the
          information regarding each such person required by paragraphs (a), (e)
          and (f) of Item 401 of Regulation S-K adopted by the Securities and
          Exchange Commission (or the corresponding provisions of any regulation
          subsequently adopted by the Securities and Exchange Commission
          applicable to the corporation), each such person's signed consent to
          serve as a director of the corporation if elected, such stockholder's
          name and address, the number and class of all shares of each class of
          stock of the corporation owned of record and beneficially by such
          stockholder.   Any stockholder who gives a Stockholder Notice of any
          matter proposed to be brought before the meeting (other than to
          nominate a director or directors) shall deliver, as part of such
          Stockholder Notice, the text of the proposal to be presented and a
          brief written statement of the reasons why such stockholder favors the
          proposal and setting forth such stockholder's name and address, the
          number and class of all shares of each class of stock of the
          corporation owned of record and beneficially by such stockholder, if
          applicable, any material interest of such stockholder in the matter
          proposed (other than as a stockholder).  As used herein, shares
          "beneficially owned" shall mean all shares which such person is deemed
          to beneficially own pursuant to Rules 13d-3 and 13d-5 under the
          Securities and Exchange Act of 1934 (the "Exchange Act").  If a
          stockholder is entitled to vote only for a specific class or category
          of directors at a meeting (annual or special), such stockholder's
          right to nominate one or more individuals for election as a director
          at the meeting shall be limited to such class or category of
          directors.

          Notwithstanding anything in this Section 8(b) to the contrary, in the
          event that the number of directors to be elected to the board of
          directors of the corporation at the next annual meeting is increased
          and either all of the nominees for director at the next annual meeting
          or the size of the increased board of directors is not publicly
          announced or disclosed by the corporation at lease one hundred (100)
          days prior to the first anniversary of the preceding year's annual
          meeting, a Stockholder Notice shall also be considered timely
          hereunder, but only with respect to nominees for any new positions
          created by such increase, if it shall be delivered to the secretary of
          the corporation at the principal executive office of the corporation
          not later than the close of business on the tenth day following the
          first date all of such nominees or the size of the increased board of
          directors shall have been publicly announced or disclosed.

               (c)  Except as provided in the immediately following sentence,
          only such matters shall be properly brought before a special meeting
          of stockholders as shall have been brought before the meeting pursuant
          to the corporation's notice of meeting.  In the event the corporation
          calls a special meeting of stockholders for
<PAGE>

          the purpose of electing one or more directors to the board of
          directors, any stockholder may nominate a person or persons (as the
          case may be), for election to such position(s) as specified in the
          corporation's notice of meeting, if the Stockholder Notice required by
          Section 8(b) hereof shall be delivered to the secretary of the
          corporation at the principal executive office of the corporation not
          later than the close of business on the tenth day following the day on
          which the date of the special meeting and either the names of the
          nominees proposed by the board of directors to be elected at such
          meeting or the number of directors to be elected is publicly announced
          or disclosed.

               (d)  For purposes of this Section 8, a matter shall be deemed to
          have been "publicly announced or disclosed" if such matter is
          disclosed in a press release reported by the Dow Jones News Service,
          Associated Press or comparable national news or wire service or in a
          document publicly filed by the corporation with the Securities and
          Exchange Commission.

               (e)  In no event shall the adjournment of an annual meeting or
          special meeting or the postponement of any meeting that does not
          require a change in the record date for such meeting, or any
          announcement thereof, commence a new period for the giving notice as
          provided in this Section 8.  This Section 8 shall not apply to (i)
          shareholders proposals made pursuant to and in compliance with Rule
          14a-8 under the Exchange Act or (ii) the election of directors
          selected by or pursuant to the provisions of Article 4 of the
          certificate of incorporation relating to the rights of the holders of
          any class or series of stock of the corporation having a preference
          over the common stock as to dividends or upon liquidation to elect
          directors under specified circumstances.

               (f)  The person presiding at any meeting of stockholders, in
          addition to making any other determinations that may be appropriate to
          the conduct of the meeting, shall have the power and duty to determine
          whether notice of nominees and other matters proposed to be brought
          before a meeting has been duly given in the manner provided in this
          Section 8 and, if not so given, shall direct and declare at the
          meeting that such nominees and other matters are out of order and
          shall not be considered.

          9.   Conduct of Meetings.  The board of directors may adopt by
               -------------------
resolution such rules, regulations and procedures for the conduct of meetings of
stockholders as it shall deem appropriate.  Except to the extent inconsistent
with applicable law and such rules and regulations adopted by the board of
directors, the chairman of each meeting of stockholders shall have the right and
authority to prescribe such rules, regulations and procedures and to do all such
acts, including  causing an adjournment of such meeting, as, in the judgment of
such chairman, are appropriate.  Such rules, regulations or procedures, whether
adopted by the board of directors or prescribed by the chairman of the meeting,
may include, without limitation, the following:  (a) the establishment of an
agenda or order of business for the meeting, including fixing the time for
opening and closing the polls for voting on each matter; (b) rules and
procedures for maintaining order at the meeting and the safety of those present;
(c) limitations on attendance at or
<PAGE>

participation in the meeting to stockholders of record of the Company, their
duly authorized and constituted proxies or such other persons as the chairman
shall permit; (d) restrictions on entry to the meeting after the time fixed for
the commencement thereof; and (e) limitations on the time allotted to questions
or comments by participants. Unless, and to the extent determined by the board
of directors or the chairman of the meeting, meetings of stockholders shall not
be required to be held in accordance with rules of parliamentary procedure.

          10.  Organization of Meetings.  Meetings of stockholders shall be
               ------------------------
presided over by the chairman of the board of directors, or in his or her
absence by the president, or in the absence of the foregoing persons by a
chairman designated by the board of directors, or, in the absence of any such
designation, by a chairman chosen at the meeting.  The secretary, or in the
absence of the secretary, an assistant secretary, shall act as the secretary of
the meeting, but in the absence of the secretary or assistant secretary, the
chairman of the meeting may appoint any person to act as secretary of the
meeting.

                                   ARTICLE II
                                   ----------

                               Board of Directors
                               ------------------

          1.   Number and qualification.  Subject to the rights of the holders
               ------------------------
of any series of preferred stock then outstanding, members of the board of
directors shall be elected at each annual meeting of stockholders, in accordance
with and subject to the provisions of the certificate of incorporation. Each
director so elected shall serve until the election and qualification of his
successor or until his earlier resignation or removal as provided in these By-
laws. The initial number of directors shall be such as may be determined by the
incorporators unless the initial directors are named in the certificate of
incorporation, and thereafter the number of directors shall be such as may be
determined, subject to the rights of the holders of any series of preferred
stock then outstanding, from time to time by the affirmative vote of the
majority of the members of the board of directors, but in no event shall the
number be less than the minimum authorized under the laws of Delaware. In case
of any increase in the number of directors between elections by the
stockholders, the additional directorships shall be considered vacancies and
shall be filled in the manner prescribed in Article IV of these By-laws.
Directors need not be stockholders. The initial board of directors shall be
elected by the incorporators, unless such directors are named in the certificate
of incorporation.

          2.   Powers.  The business and affairs of the corporation shall be
               ------
carried on by or under the direction of the board of directors, which shall have
all the powers authorized by the laws of Delaware, subject to such limitations
as may be provided by the certificate of incorporation or these By-laws.

          3.   Compensation.  The board of directors may from time to time by
               ------------
resolution authorize the payment of fees or other compensation to the directors
for services as such to the corporation, including, but not limited to, fees for
attendance at all meetings of the board or of the executive or other committees,
and determine the amount of such fees and compensation.  Directors shall in any
event be paid their traveling expenses for attendance at all meetings of the
board or of the executive or other committees. Nothing herein contained shall be
<PAGE>

construed to preclude any director from serving the corporation in any other
capacity and receiving compensation therefor in amounts authorized or otherwise
approved from time to time by the board or the executive committee.

          4.   Meetings and quorum.  Meetings of the board of directors may be
               -------------------
held either in or outside of Delaware.  A quorum shall be one-third the then
authorized total number of directors, but not less than two directors unless a
board of one director is authorized under the laws of Delaware in which event
one director shall constitute a quorum.  A director will be considered present
at a meeting, even though not physically present, to the extent and in the
manner authorized by the laws of Delaware.

          The board of directors may from time to time provide for the holding
of regular meetings with or without notice and may fix the times and places at
which such meetings are to be held. Meetings other than regular meetings may be
called at any time by the president or the chairman of the board and must be
called by the president or by the secretary or an assistant secretary upon the
request of any director.

          Notice of each meeting, other than a regular meeting (unless required
by the board of directors), shall be given to each director by mailing the same
to each director at his residence or business address at least ten days before
the meeting or by delivering the same to him personally or by telephone or
telecopy at least two days before the meeting.

          Notice of any meeting shall state the time and place of such meeting,
but need not state the purposes thereof unless otherwise required by the laws of
Delaware, the certificate of incorporation, the By-laws, or the board of
directors.

          5.   Executive Committee.  The board of directors may by resolution
               -------------------
passed by a majority of the whole board provide for an executive committee of
two or more directors and shall elect the members thereof to serve at the
pleasure of the board and may designate one of such members to act as chairman.
The board may at any time change the membership of the committee, fill vacancies
in it, designate alternate members to replace any absent or disqualified members
at any meeting of the committee, or dissolve it.

          During the intervals between the meetings of the board of directors,
the executive committee shall possess and may exercise any or all of the powers
of the board of directors in the management or direction of the business and
affairs of the corporation and under the By-laws to the extent authorized by
resolution adopted by a majority of the entire board of directors, subject to
such limitations as may be imposed by the laws of Delaware.

          The executive committee may determine its rules of procedure and the
notice to be given of its meetings, and it may appoint such committees and
assistants as it shall from time to time deem necessary. A majority of the
members of the committee shall constitute a quorum.

          6.   Other committees.  The board of directors may by resolution
               ----------------
provide for such other committees as it deems desirable and may discontinue the
same at its pleasure.  Each
<PAGE>

such committee shall have the powers and perform such duties, not inconsistent
with law, as may be assigned to it by the board.

          7.   Action without meetings.  Any action required or permitted to be
               -----------------------
taken at any meeting of the board of directors or any committee thereof may be
taken without meeting to the extent and in the manner authorized by the laws of
Delaware.

                                  ARTICLE III
                                  -----------

                                   Officers
                                   --------

          1.   Titles and election.  The officers of the corporation shall be
               -------------------
a president, a secretary and a treasurer, who shall initially be elected as soon
as convenient by the board of directors and thereafter, in the absence of
earlier resignations or removals, shall be elected at the first meeting of the
board following any annual stockholders' meeting, each of whom shall hold office
at the pleasure of the board except as may otherwise be approved by the board or
executive committee, or until his earlier resignation, removal under these By-
laws or other termination of his employment. Any person may hold more than one
office if the duties can be consistently performed by the same person, and to
the extent permitted by the laws of Delaware.

          The board of directors, in its discretion, may also at any time elect
or appoint a chairman of the board of directors who shall be a director, and one
or more vice presidents, assistant secretaries and assistant treasurers and such
other officers as it may deem advisable, each of whom shall hold office at the
pleasure of the board, except as may otherwise be approved by the board or
executive committee, or until his earlier resignation, removal or other
termination of employment, and shall have such authority and shall perform such
duties as may be prescribed or determined from time to time by the board or in
case of officers other than the chairman of the board, if not so prescribed or
determined by the board, as the president or the then senior executive officer
may prescribe or determine.

          The board of directors may require any officer or other employee or
agent to give bond for the faithful performance of his duties in such form and
with such sureties as the board may require.

          2.   Duties.  Subject to such extension, limitations, and other
               ------
provisions as the board of directors or the By-laws may from time to time
prescribe or determine, the following officers shall have the following powers
and duties:

               (a) Chairman of the Board.  The chairman of the board, when
                   ---------------------
          present, shall preside at all meetings of the stockholders and of the
          board of directors and shall be charged with general supervision of
          the management and policy of the corporation, and shall have such
          other powers and perform such other duties as the board of directors
          may prescribe from time to time.

                (b) President. Subject to the board of directors and the
                    ---------
          provisions of these By-laws, the president shall be the chief
          executive officer of the corporation, shall exercise the powers and
          authority and perform all of the duties commonly
<PAGE>

          incident to his office, shall in the absence of the chairman of the
          board preside at all meetings of the stockholders and of the board of
          directors if he is a director, and shall perform such other duties as
          the board of directors or executive committee shall specify from time
          to time. The president or a vice president, unless some other person
          is thereunto specifically authorized by the board of directors or
          executive committee, shall sign all bonds, debentures, promissory
          notes, deeds and contracts of the corporation.

               (c) Vice President.  The vice president or vice presidents shall
                   --------------
          perform such duties as may be assigned to them from time to time by
          the board of directors or by the president if the board does not do
          so.  In the absence or disability of the president, the vice
          presidents in order of seniority may, unless otherwise determined by
          the board, exercise the powers and perform the duties pertaining to
          the office of president, except that if one or more executive vice
          presidents has been elected or appointed, the person holding such
          office in order of seniority shall exercise the powers and perform the
          duties of the office of president.

               (d) Secretary. The secretary or in his absence an assistant
                   ---------
          secretary shall keep the minutes of all meetings of stockholders and
          of the board of directors, give and serve all notices, attend to such
          correspondence as may be assigned to him, keep in safe custody the
          seal of the corporation, and affix such seal to all such instruments
          properly executed as may require it, and shall have such other duties
          and powers as may be prescribed or determined from time to time by the
          board of directors or by the president if the board does not do so.

               (e) Treasurer. The treasurer, subject to the order of the board
                   ---------
          of directors, shall have the care and custody of the moneys, funds,
          valuable papers and documents of the corporation (other than his own
          bond, if any, which shall be in the custody of the president), and
          shall have, under the supervision of the board of directors, all the
          powers and duties commonly incident to his office. He shall deposit
          all funds of the corporation in such bank or banks, trust company or
          trust companies, or with such firm or firms doing a banking business
          as may be designated by the board of directors or by the president if
          the board does not do so. He may endorse for deposit or collection all
          checks, notes, etc., payable to the corporation or to its order. He
          shall keep accurate books of account of the corporation's
          transactions, which shall be the property of the corporation, and
          together with all its property in his possession, shall be subject at
          all times to the inspection and control of the board of directors. The
          treasurer shall be subject in every way to the order of the board of
          directors, and shall render to the board of directors and/or the
          president of the corporation, whenever they may require it, an account
          of all his transactions and of the financial condition of the
          corporation. In addition to the foregoing, the treasurer shall have
          such duties as may be prescribed or determined from time to time by
          the board of directors or by the president if the board does not do
          so.
<PAGE>

          3.   Delegation of authority.  The board of directors or the
               -----------------------
executive committee may at any time delegate the powers and duties of any
officer for the time being to any other officer, director or employee.

          4.   Compensation.  The compensation of the Chairman of the
               ------------
Board, the president, all vice presidents, the secretary and the treasurer shall
be fixed by the board of directors or the executive committee, and the fact that
any officer is a director shall not preclude him from receiving compensation or
from voting upon the resolution providing the same.

                                  ARTICLE IV
                                  ----------

                     Resignations, Vacancies and Removals
                     ------------------------------------

          1.   Resignations.  Any director or officer may resign at any
               ------------
time by giving written notice thereof to the board of directors, the president
or the secretary.  Any such resignation shall take effect at the time specified
therein or, if the time be not specified, upon receipt thereof; and unless
otherwise specified therein, the acceptance of any resignation shall not be
necessary to make it effective.

          2.   Vacancies.
               ---------

               (a)  Directors. When the office of any director becomes vacant or
                    ---------
          unfilled whether by reason of death, resignation, removal, increase in
          the authorized number of directors or otherwise, such vacancy or
          vacancies may be filled, subject to the rights of the holders of any
          series of preferred stock then outstanding, by a majority vote of the
          directors then in office, although less than a quorum. Any director so
          elected by the board shall serve until the election and qualification
          of his successor or until his earlier resignation or removal as
          provided in these By-laws. The directors may also reduce their
          authorized number by the number of vacancies in the board, in
          accordance with the provisions of the certificate of incorporation,
          provided such reduction does not reduce the board to less than the
          minimum authorized by the laws of Delaware.

               (b)  Officers.  The board of directors may at any time or from
                    --------
          time to time fill any vacancy among the officers of the corporation.

          3.   Removals.
               --------

               (a)  Directors.  Except as may otherwise be prohibited or
                    ---------
          restricted under the laws of Delaware, the stockholders may, at any
          meeting called for such purpose, remove any director from office, but
          only for cause, as such term is defined in, and subject to the
          provisions of, Article 8 of the certificate of incorporation.

               (b)  Officers.  Subject to the provisions of any validly existing
                    --------
          agreement, the board of directors may at any meeting remove from
          office any
<PAGE>

          officer, with or without cause, and may elect or appoint a successor;
          provided that if action is to be taken to remove the president the
          notice of meeting or waiver of notice thereof shall state that one of
          the purposes thereof is to consider and take action on his removal.

                                   ARTICLE V
                                   ---------

                                 Capital Stock
                                 -------------

          1.   Certificate of stock.  Every stockholder shall be entitled to a
               --------------------
certificate or certificates for shares of the capital stock of the corporation
in such form as may be prescribed or authorized by the board of directors, duly
numbered and setting forth the number and kind of shares represented thereby.
Such certificates shall be signed by the chairman of the board, the president or
a vice president and by the treasurer or an assistant treasurer or by the
secretary or an assistant secretary. Any or all of such signatures may be in
facsimile if and to the extent authorized under the laws of Delaware.

          In case any officer, transfer agent or registrar who has signed or
whose facsimile signature has been placed on a certificate has ceased to be such
officer, transfer agent or registrar before the certificate has been issued,
such certificate may nevertheless be issued and delivered by the corporation
with the same effect as if he were such officer, transfer agent or registrar at
the date of issue.

          2.   Transfer of stock.  Shares of the capital stock of the
               -----------------
corporation shall be transferable only upon the books of the corporation upon
the surrender of the certificate or certificates properly assigned and endorsed
for transfer.  If the corporation has a transfer agent or agents or transfer
clerk and registrar of transfers acting on its behalf, the signature of any
officer or representative thereof may be in facsimile.

          The board of directors may appoint a transfer agent and one or more
co-transfer agents and a registrar and one or more co-registrars of transfer and
may make or authorize the transfer agents to make all such rules and regulations
deemed expedient concerning the issue, transfer and registration of shares of
stock.

          3.   Record dates.
               ------------

               (a) In order that the corporation may determine the stockholders
          entitled to notice of or to vote at any meeting of stockholders or any
          adjournment thereof, or entitled to receive payment of any dividend or
          other distribution or allotment of any rights, or entitled to exercise
          any rights in respect of any change, conversion or exchange of stock
          or for the purpose of any other lawful action, the board of directors
          may fix in advance a record date which, in the case of a meeting,
          shall be not less than the minimum nor more than the maximum number of
          days prior to the scheduled date of such meeting permitted under the
          laws of Delaware and which, in the case of any other action, shall be
          not more than the maximum number of days prior to any such action
          permitted by the laws of Delaware.
<PAGE>

               (b) If no such record date is fixed by the board, the record date
          shall be that prescribed by the laws of Delaware.

               (c) A determination of stockholders of record entitled to notice
          of or to vote at a meeting of stockholders shall apply to any
          adjournment of the meeting; provided, however, that the board of
          directors may fix a new record date for the adjourned meeting.

          4.   Lost certificates.  In case of loss or mutilation or
               -----------------
destruction of a stock certificate, a duplicate certificate may be issued upon
such terms as may be determined or authorized by the board of directors or
executive committee or by the president if the board or the executive committee
does not do so.
<PAGE>

                                   ARTICLE VI
                                   ----------

                   Fiscal Year, Bank Deposits, Checks, etc.
                   ---------------------------------------

          1.   Fiscal Year.  The fiscal year of the corporation shall commence
               -----------
 or end at such time as the board of directors may designate.

          2.   Bank deposits, checks etc.  The funds of the corporation
               -------------------------
shall be deposited in the name of the corporation or of any division thereof in
such banks or trust companies in the United States or elsewhere as may be
designated from time to time by the board of directors or executive committee,
or by such officer or officers as the board or executive committee may authorize
to make such designations.

          All checks, drafts or other orders for the withdrawal of funds from
any bank account shall be signed by such person or persons as may be designated
from time to time by the board of directors or executive committee or as may be
designated by any officer or officers authorized by the board of directors or
executive committee to make such designations. The signatures on checks, drafts
or other orders for the withdrawal of funds may be in facsimile if authorized in
the designation.

                                  ARTICLE VII
                                  -----------

                               Books and Records
                               -----------------

          1.   Place of keeping books. Unless otherwise expressly required by
               ----------------------
the laws of Delaware, the books and records of the corporation may be kept
outside of Delaware.

          2.   Examination of books.  Except as may otherwise be provided by
               --------------------
the laws of Delaware, the certificate of incorporation or these By-laws, the
board of directors shall have power to determine from time to time whether and
to what extent and at what times and places and under what conditions any of the
accounts, records and books of the corporation are to be open to the inspection
of any stockholder.  No stockholder shall have any right to inspect any account
or book or document of the corporation except as prescribed by statute or
authorized by express resolution of the stockholders or of the board of
directors.

                                 ARTICLE VIII
                                 ------------

                                    Notices
                                    -------

          1.   Requirements of notice.  Whenever notice is required to be
               ----------------------
given by statute, the certificate of incorporation or these By-laws, it shall
not mean personal notice unless so specified, but such notice may be given in
writing by depositing the same in a post office, letter box, or mail chute,
postpaid and addressee to the person to whom such notice is directed at the
address of such person on the records of the corporation, and such notice shall
be deemed given at the time when the same shall be thus mailed.
<PAGE>

          2.   Waivers.  Any stockholder, director or officer may, in writing
               -------
or by telegram or cable, at any time waive any notice or other formality
required by statute, the certificate of incorporation or these By-laws. Such
waiver of notice, whether given before or after any meeting or action, shall be
deemed equivalent to notice. Presence of a stockholder either in person or by
proxy at any stockholders' meeting and presence of any director at any meeting
of the board of directors shall constitute a waiver of such notice as may be
required by any statute, the certificate of incorporation or these By-laws.

                                  ARTICLE IX
                                  ----------

                                     Seal
                                     ----

          The corporate seal of the corporation shall consist of two concentric
circles between which shall be the name of the corporation and in the center of
which shall be inscribed "Corporate Seal, Delaware".

                                   ARTICLE X
                                   ---------

                              Powers of Attorney
                              ------------------

          The board of directors or the executive committee may authorize one or
more of the officers of the corporation to execute powers of attorney delegating
to named representatives or agents power to represent or act on behalf of the
corporation, with or without power of substitution.

          In the absence of any action by the board or the executive committee,
the president, any vice president, the secretary or the treasurer of the
corporation may execute for and on behalf of the corporation waivers of notice
of stockholders' meetings and proxies for such meetings in any company in which
the corporation may hold voting securities.

                                  ARTICLE XI
                                  ----------

                   Indemnification of Directors and Officers
                   -----------------------------------------

          1.   Definitions.  As used in this article, the term "person" means
               -----------
any past, present or future director or officer of the corporation or a
designated officer of an operating division of the corporation.

          2.   Indemnification granted.  The corporation shall indemnify, to the
               -----------------------
full extent and under the circumstances permitted by the Delaware General
Corporation Law in effect from time to time, any person as defined above, made
or threatened to be made a party to any threatened, pending or completed action,
suit or proceeding, whether civil, criminal, administrative or investigative by
reason of the fact that he is or was a director, officer of the corporation or
designated officer of an operating division of the corporation, or is or was an
employee or agent of the corporation, or is or was serving at the specific
request of the corporation as a director, officer, employee or agent of another
company or other enterprise in
<PAGE>

which the corporation should own, directly or indirectly, an equity interest or
of which it may be a creditor.

          This right of indemnification shall not be deemed exclusive of any
other rights to which a person indemnified herein may be entitled by By-law,
agreement, vote of stockholders or disinterested directors or otherwise, and
shall continue as to a person who has ceased to be a director, officer,
designated officer, employee or agent and shall inure to the benefit of the
heirs, executors, administrators and other legal representatives of such person.
It is not intended that the provisions of this article be applicable to, and
they are not to be construed as granting indemnity with respect to, matters as
to which indemnification would be in contravention of the laws of Delaware or of
the United States of America whether as a matter of public policy or pursuant to
statutory provision.

          3.   Miscellaneous.  The board of directors may also on behalf
               -------------
of the corporation grant indemnification to any individual other than a person
defined herein to such extent and in such manner as the board in its sole
discretion may from time to time and at any time determine.

                                  ARTICLE XII
                                  -----------

                                  Amendments
                                  ----------

          These By-laws may be amended or repealed either:

               (a) at any meeting of stockholders at which a quorum is present
          by vote of at least sixty-six and two-thirds percent (66-2/3%) of the
          number of shares of stock entitled to vote present in person or by
          proxy at such meeting as provided in Article I Sections 5 and 6 of
          these By-laws, or

               (b) at any meeting of the board of directors by a majority vote
          of the directors then in office;

          provided the notice of such meeting of stockholders or directors or
waiver of notice thereof contains a statement of the substance of the proposed
amendment or repeal.

/s/ Shanler D. Cronk
---------------------------
Shanler D. Cronk, Secretary<PAGE>   1
                                                                   EXHIBIT 10.29

                              QUALCOMM INCORPORATED
                          1998 NON-EMPLOYEE DIRECTORS'
                                STOCK OPTION PLAN

                       ADOPTED EFFECTIVE FEBRUARY 10, 1998
                     STOCKHOLDER APPROVAL FEBRUARY 10, 1998
                            AMENDED JANUARY 17, 2000

1.      PURPOSE.

        (a) The purpose of the Plan is to provide a means by which Non-Employee
Directors may be given an opportunity to benefit from increases in value of the
common stock of the Company ("Common Stock") through the granting of
Nonstatutory Stock Options. This Plan shall serve as an amendment and
restatement of the Company's Non-Employee Director Stock Option Plan, which was
adopted by the Company in 1993 (the "Prior Plan"), and shall be effective
February 10, 1998 (the "Effective Date").

        (b) The Company, by means of the Plan, seeks to retain the services of
persons now serving as Non-Employee Directors of the Company, to secure and
retain the services of persons capable of serving in such capacity and to
provide incentives for such persons to exert maximum efforts for the success of
the Company.

        (c) The Company intends that the Options issued under the Plan shall be
Nonstatutory Stock Options granted pursuant to Section 6 hereof.

2.      DEFINITIONS.

        (a) "AFFILIATE" means any parent corporation or subsidiary corporation,
whether now or hereafter existing, as those terms are defined in Sections 424(e)
and (f), respectively, of the Code.

        (b) "ANNUAL OPTION" means a stock option granted pursuant to subsection
5(c) of the Plan.

        (c) "BOARD" means the Board of Directors of the Company.

        (d) "CODE" means the Internal Revenue Code of 1986, as amended.

        (e) "COMMITTEE" means a Committee appointed by the Board in accordance
with subsection 3(c) of the Plan.

        (f) "COMPANY" means QUALCOMM Incorporated, a Delaware corporation.

        (g) "CONSULTANT" means any person, including an advisor, engaged by the
Company or an Affiliate to render consulting services and who is compensated for
such services, provided

                                       1.
<PAGE>   2

that the term "Consultant" shall not include Directors who are paid only a
director's fee by the Company or who are not compensated by the Company for
their services as Directors.

        (h) "CONTINUOUS SERVICE" means that the Optionee's service to the
Company or an Affiliate of the Company, whether in the capacity of a Director or
subsequently as an Employee or a Consultant, is not interrupted or terminated.
The Optionee's Continuous Service shall not be deemed to have terminated merely
because of a change in the capacity in which the Optionee renders such service
to the Company or an Affiliate of the Company or a change in the entity for
which the Optionee renders such service, provided that there is no interruption
or termination of the Optionee's service. The Board or its designee, in that
party's sole discretion, may determine whether Continuous Service shall be
considered interrupted in the case of: (i) any leave of absence approved by the
Board or its designee, including sick leave, military leave, or any other
personal leave; or (ii) transfers between locations of the Company or between
the Company, Affiliates or their successors.

        (i) "DIRECTOR" means a member of the Board.

        (j) "DISABILITY" means the permanent and total disability of the
Optionee within the meaning of Section 22(e)(3) of the Code.

        (k) "EMPLOYEE" means any person, including Officers and Directors,
employed by the Company or any Affiliate of the Company. Neither service as a
Director nor payment of a director's fee by the Company shall be sufficient to
constitute "employment" by the Company.

        (l) "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

        (m) "FAIR MARKET VALUE" means, as of any date, the value of the Common
Stock of the Company determined as follows:

            (i) If the Common Stock is listed on any established stock exchange,
or traded on the Nasdaq National Market, the Fair Market Value of a share of
Common Stock shall be the average of the highest and lowest price at which the
Common Stock was sold on such exchange or national market on the trading day
prior to the day of determination (or, in the case in which the Common Stock is
traded on more than one market, the exchange or system on which the Common Stock
has the highest average trading volume), as reported in the Wall Street Journal
or such other source as the Board deems reliable; or

            (ii) in the absence of any such market for the Common Stock, the
Fair Market Value shall be determined in good faith by the Board.

        (n) "INCENTIVE STOCK OPTION" means an Option intended to qualify as an
incentive stock option within the meaning of Section 422 of the Code and the
regulations promulgated thereunder.

        (o) "INITIAL OPTION" means a stock option granted pursuant to subsection
5(b) of the Plan.

                                       2.
<PAGE>   3

        (p) "NON-EMPLOYEE DIRECTOR" means a Director who is not a current
Employee or Officer of the Company or its parent or a subsidiary and does not
receive compensation (directly or indirectly) from the Company or its parent or
subsidiary for services rendered as a consultant or in any capacity other than
as a Director.

        (q) "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify
as an Incentive Stock Option.

        (r) "OFFICER" means any person who is an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

        (s) "OPTION" means a stock option granted pursuant to the Plan.

        (t) "OPTION AGREEMENT" means a written agreement between the Company and
an Optionee evidencing the terms and conditions of an individual Option grant.
Each Option Agreement shall be subject to the terms and conditions of the Plan.

        (u) "OPTIONEE" means a person to whom an Option is granted pursuant to
the Plan.

        (v) "PLAN" means this QUALCOMM Incorporated 1998 Non-Employee Directors'
Stock Option Plan.

        (w) "RULE 16B-3" means Rule 16b-3 of the Exchange Act or any successor
to Rule 16b-3, as in effect when discretion is being exercised with respect to
the Plan.

        (x) "SECURITIES ACT" means the Securities Act of 1933, as amended.

3.      ADMINISTRATION.

        (a) The Plan shall be administered by the Board unless and until the
Board delegates administration to a Committee, as provided in subsection 3(c).

        (b) The Board shall have the power, subject to, and within the
limitations of, the express provisions of the Plan:

            (i) To construe and interpret the Plan and Options granted under it,
and to establish, amend and revoke rules and regulations for its administration.
The Board, in the exercise of this power, may correct any defect, omission or
inconsistency in the Plan or in any Option Agreement, in a manner and to the
extent it shall deem necessary or expedient to make the Plan fully effective.

            (ii) To amend the Plan or an Option as provided in Section 11.

            (iii) Generally, to exercise such powers and to perform such acts as
the Board deems necessary or expedient to promote the best interests of the
Company which are not in conflict with the provisions of the Plan.

                                       3.
<PAGE>   4

        (c) The Board may delegate administration of the Plan to a Committee or
Committees of not fewer than two members of the Board. If administration is
delegated to a Committee, the Committee shall have, in connection with the
administration of the Plan, the powers theretofore possessed by the Board (and
references in this Plan to the Board shall thereafter be to the Committee),
subject, however, to such resolutions, not inconsistent with the provisions of
the Plan, as may be adopted from time to time by the Board, and to the
requirements of Section 144 of the Delaware General Corporation Law. The Board
may abolish the Committee at any time and revest in the Board the administration
of the Plan.

4.      SHARES SUBJECT TO THE PLAN.

        (a) Subject to the provisions of Section 10 relating to adjustments upon
changes in stock, the stock that may be issued pursuant to Options shall not
exceed in the aggregate Four Million (4,000,000) shares of Common Stock. This
share reserve shall be comprised of: (i) the Two Hundred Forty Thousand
(240,000) shares of Common Stock available for grant under the Prior Plan plus
(ii) an additional Three Million Seven Hundred Sixty Thousand (3,760,000)
shares. If any Option (including an Option granted under the Prior Plan) shall
for any reason expire or otherwise terminate, in whole or in part, without
having been exercised in full, the stock not acquired under such Option shall
revert to and again become available for issuance under the Plan. Similarly, if
the Company shall for any reason exercise its right of repurchase with respect
to any unvested shares of Common Stock purchased pursuant to an early exercise
provision, as provided for in subsection 6(j), the unvested shares so
repurchased shall revert to and again become available for issuance under the
Plan. The foregoing numbers are after giving effect to the 2:1 split in the
Company's common stock effective May 10, 1999, and the 4:1 split in the
Company's common stock effective December 30, 1999.

        (b) The stock subject to the Plan may be unissued shares or reacquired
shares, bought on the market or otherwise.

5.      ELIGIBILITY AND NON-DISCRETIONARY GRANTS.

        (a) Options shall be granted only to Non-Employee Directors of the
Company.

        (b) Each person who is, on the Effective Date or any subsequent date
thereto, elected or appointed for the first time to be a Non-Employee Director
shall automatically, upon such date of initial election or appointment, be
granted an Initial Option to purchase Twenty Thousand (20,000) shares of Common
Stock of the Company on the terms and conditions set forth herein.

        (c) Each year, commencing with the annual meeting of stockholders of the
Company (the "Annual Meeting") occurring in 1998, each person who is then
serving as a Non-Employee Director, other than a Non-Employee Director who is
granted an Initial Option at such Annual Meeting, shall automatically be granted
an Annual Option to purchase Ten Thousand (10,000) shares of Common Stock of the
Company on the terms and conditions set forth herein. Notwithstanding the
foregoing, after January 17, 2000, an Annual Option shall not be granted to a
Non-Employee Director unless and until two hundred seventy (270) days shall have
passed since the date of the last grant of an Option to such Non-Employee
Director.

                                       4.
<PAGE>   5

6.      OPTION PROVISIONS.

        Each Option shall include (through incorporation of provisions hereof by
reference in the Option or otherwise) each of the following provisions:

        (a) TERM. No Option shall be exercisable after the expiration of ten
(10) years from the date it was granted.

        (b) PRICE. The exercise price of each Option shall equal one hundred
percent (100%) of the Fair Market Value of the stock subject to the Option on
the date the Option is granted. Notwithstanding the foregoing, an Option may be
granted with an exercise price lower than that set forth in the preceding
sentence if such Option is granted pursuant to an assumption or substitution for
another option in a manner satisfying the provisions of Section 424(a) of the
Code.

        (c) CONSIDERATION. The purchase price of stock acquired pursuant to an
Option shall be paid, to the extent permitted by applicable statutes and
regulations, either: (i) in cash at the time the Option is exercised, or (ii) at
the discretion of the Board or the Committee, either at the time of the grant or
exercise of the Option, by (A) delivery to the Company of other Common Stock of
the Company or (B) other arrangement (which may include, without limiting the
generality of the foregoing, the use of other Common Stock of the Company) with
the Optionee in any other form of legal consideration that may be acceptable to
the Board.

        (d) TRANSFERABILITY. An Option shall be transferable only to the extent
specifically provided in the Option Agreement; provided, however, that if the
Option Agreement does not specifically provide for the transferability of the
Option, the Option shall not be transferable except by will or by the laws of
descent and distribution and shall be exercisable during the lifetime of the
person to whom the Option is granted only by such person or by such person's
guardian or legal representative. Notwithstanding the foregoing, the person to
whom the Option is granted may, by delivering written notice to the Company, in
a form satisfactory to the Company, designate a third party who, in the event of
the death of the Optionee, shall thereafter be entitled to exercise the Option.

        (e) VESTING.

            (i) The total number of shares of stock subject to an Option shall
be allotted in periodic installments. The Option Agreement shall provide that
from time to time during each of such installment periods, the Option may become
exercisable ("vest") with respect to some or all of the shares allotted to that
period, and may be exercised with respect to some or all of the shares allotted
to such period and/or any prior period as to which the Option became vested but
was not fully exercised.

            (ii) Initial Options shall vest over a period of five (5) years as
follows: (A) if the Initial Option is granted pursuant to the election of the
Optionee to the Board at an Annual Meeting prior to January 18, 2000, then such
Initial Option will vest twenty percent (20%) of the total number of such shares
subject to such Option ("Option Shares") on January 15 of each of

                                       5.
<PAGE>   6

the first, second, third, fourth and fifth years following the date of the grant
of such Initial Option; (B) if the Initial Option is granted pursuant to the
election or appointment of the Optionee to the Board prior to January 18, 2000
and at some time other than at an Annual Meeting, then such Initial Option will
vest twenty percent (20%) of the Option Shares on the anniversary of the date of
the grant of such Initial Option in each of first, second, third, fourth and
fifth years following such grant; or (C) any Initial Option granted after
January 17, 2000 shall vest twenty percent (20%) of the Option Shares on the
first anniversary of the date of its grant and the remaining eighty percent
(80%) of the Option Shares shall vest as to 1/48th of those shares in
forty-eight (48) consecutive monthly installments with the first such monthly
vesting installment to occur thirteen (13) months from the date of grant;
provided, however, that if the Optionee's Continuous Service is terminated due
to (1) death, (2) a Voluntary Termination with Good Reason (as defined in
subsection 10(c)), or (3) an Involuntary Termination without Cause (as defined
in subsection 10(d)), then the vesting of such Initial Option and the time
during which such Initial Option may be exercised shall be accelerated upon the
occurrence of such event.

            (iii) An Annual Option granted prior to January 18, 2000, shall vest
over five (5) years, with twenty percent (20%) of the Option Shares vesting on
January 15 of each of the first, second, third, fourth and fifth years following
the date of the grant of such Annual Option, otherwise an Annual Option shall
vest 1/60th of the total shares in sixty (60) consecutive monthly installments
with the first such installment to commence one month after the date of grant;
provided, however, that if the Optionee's Continuous Service is terminated due
to (1) death, (2) a Voluntary Termination with Good Reason, or (3) an
Involuntary Termination without Cause, then the vesting of such Annual Option
and the time during which such Annual Option may be exercised shall be
accelerated upon the occurrence of such event.

        (f) TERMINATION OF SERVICE. In the event an Optionee's Continuous
Service terminates (other than upon the Optionee's retirement at age seventy
(70) or older after nine (9) or more years of service on the Board, or the
Optionee's death or Disability), the Optionee may exercise his or her Option (to
the extent that the Optionee was entitled to exercise it at the date of
termination) but only within such period of time ending on the earlier of (i)
the date thirty (30) days after the termination of the Optionee's Continuous
Service or (ii) the expiration of the term of the Option as set forth in the
Option Agreement. If, after termination, the Optionee does not exercise his or
her Option within the time specified in the Option Agreement, the Option shall
terminate, and the shares covered by such Option shall revert to and again
become available for issuance under the Plan.

        If the exercise of the Option following the termination of the
Optionee's Continuous Service (other than upon the Optionee's retirement at age
seventy (70) or older after nine (9) or more years of service on the Board, or
the Optionee's death or Disability) would be prohibited at any time solely
because the issuance of shares would violate the registration requirements under
the Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option or (ii) the expiration of a period of
thirty (30) days after the termination of the Optionee's Continuous Service
during which the exercise of the Option would not be in violation of such
registration requirements (if such provisions would result in an extension of
the time during which

                                       6.
<PAGE>   7

the Option may be exercised beyond the period described in the first paragraph
of this subsection 6(f)).

        If the exercise of the Option following the termination of the
Optionee's Continuous Service (other than upon the Optionee's retirement at age
seventy (70) or older after nine (9) or more years of service on the Board, or
the Optionee's death or Disability) would be prohibited at any time solely
because such exercise would result in liability under Section 16(b) of the
Exchange Act, then the Option shall terminate on the earliest of (i) the
expiration of the term of the Option, (ii) the tenth (10th) day after the last
date upon which exercise would result in such liability, or (iii) six (6) months
and ten (10) days after the termination of the Optionee's Continuous Service.

        (g) RETIREMENT OF OPTIONEE. Notwithstanding anything in subsection 6(f)
to the contrary, in the event of the retirement of an Optionee at age seventy
(70) or older after nine (9) years of service on the Board, the Option will
terminate only upon the expiration of the Option term.

        (h) DISABILITY OF OPTIONEE. Notwithstanding anything in subsection 6(f)
to the contrary, in the event an Optionee's Continuous Service terminates due to
the Disability of the Optionee, the Option will terminate only upon the
expiration of the Option term.

        (i) DEATH OF OPTIONEE. In the event that: (i) an Optionee's Continuous
Service terminates due to the death of the Optionee, or (ii) an Optionee's
Continuous Service terminates due to the Disability of the Optionee and such
termination is subsequently followed by the death of the Optionee prior to the
expiration of the term of the Option, then the vesting of all unvested shares
owned by the Optionee will be accelerated effective as of the date of death of
the Optionee and the Option may be exercised by the Optionee's estate, by a
person who acquired the right to exercise the Option by bequest or inheritance,
or by a person designated to exercise the option upon the Optionee's death
pursuant to subsection 6(d), but only within the period ending twelve (12)
months after the death of the Optionee. If, after the death of the Optionee, the
Option is not exercised within the time specified herein, the Option shall
terminate, and the shares covered by such Option shall revert to and again
become available for issuance under the Plan.

        (j) EARLY EXERCISE. The Option may, but need not, include a provision
whereby the Optionee may elect at any time while an Employee, Director or
Consultant to exercise the Option as to any part or all of the shares subject to
the Option prior to the full vesting of the Option. Any unvested shares so
purchased shall be subject to a repurchase right in favor of the Company, with
the repurchase price to be equal to the original purchase price of the Common
Stock, or to any other restriction the Board determines to be appropriate;
provided, however, that (i) the right to repurchase at the original purchase
price shall lapse at a rate of twenty percent (20%) per year over five (5) years
from the date the Option was granted, and (ii) such right shall be exercisable
only within (A) the ninety (90) day period following the termination of the
Optionee's Continuous Service or (B) such longer period as may be agreed to by
the Company and the Optionee.

7.      COVENANTS OF THE COMPANY.

                                       7.
<PAGE>   8

        (a) During the terms of the Options, the Company shall keep available at
all times the number of shares of stock required to satisfy such Options.

        (b) The Company shall seek to obtain from each regulatory commission or
agency having jurisdiction over the Plan such authority as may be required to
issue and sell shares under Options. If, after reasonable efforts, the Company
is unable to obtain from any such regulatory commission or agency the authority
which counsel for the Company deems necessary for the lawful issuance and sale
of stock under the Plan, the Company shall be relieved from any liability for
failure to issue and sell stock upon exercise of such Options unless and until
such authority is obtained.

8.      USE OF PROCEEDS FROM STOCK.

        Proceeds from the sale of stock pursuant to Options shall constitute
general funds of the Company.

9.      MISCELLANEOUS.

        (a) Neither a Non-Employee Director nor any person to whom an Option is
transferred in accordance with the Plan shall be deemed to be the holder of, or
to have any of the rights of a holder with respect to, any shares subject to
such Option unless and until such person has satisfied all requirements for
exercise of the Option pursuant to its terms.

        (b) Nothing in the Plan or any instrument executed or Option granted
pursuant thereto shall confer upon any holder of Options any right to continue
serving as a Director, Employee or Consultant, or shall affect the right of the
Company or any Affiliate to terminate the Optionee's service as a Director,
Employee or Consultant, pursuant to the Company's Bylaws and the provisions of
the corporate law of the state in which the Company is incorporated.

        (c) The Company may require any person to whom an Option is granted, or
any person to whom an Option is transferred in accordance with the Plan, as a
condition of exercising or acquiring stock under any Option: (i) to give written
assurances satisfactory to the Company as to such person's knowledge and
experience in financial and business matters and/or to employ a purchaser
representative reasonably satisfactory to the Company who is knowledgeable and
experienced in financial and business matters, and that he or she is capable of
evaluating, alone or together with the purchaser representative, the merits and
risks of exercising the Option; and (ii) to give written assurances satisfactory
to the Company stating that such person is acquiring the stock subject to the
Option for such person's own account and not with any present intention of
selling or otherwise distributing the stock. The foregoing requirements, and any
assurances given pursuant to such requirements, shall be inoperative if (i) the
issuance of the shares upon the exercise or acquisition of stock under the
Option has been registered under a then currently effective registration
statement under the Securities Act, or (ii) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such

                                       8.
<PAGE>   9

counsel deems necessary or appropriate in order to comply with applicable
securities laws, including, but not limited to, legends restricting the transfer
of the stock.

        (d) To the extent provided by the terms of an Option Agreement, the
person to whom an Option is granted may satisfy any federal, state or local tax
withholding obligation relating to the exercise or acquisition of stock under an
Option by any of the following means (in addition to the Company's right to
withhold from any compensation paid to such person by the Company) or by a
combination of such means: (i) tendering a cash payment; (ii) authorizing the
Company to withhold shares from the shares of the Common Stock otherwise
issuable to the participant as a result of the exercise or acquisition of stock
under the Option; or (iii) delivering to the Company owned and unencumbered
shares of the Common Stock of the Company.

10.     ADJUSTMENTS UPON CHANGES IN STOCK.

        (a) If any change is made in the stock subject to the Plan, or subject
to any Option, without the receipt of consideration by the Company (through
merger, consolidation, reorganization, recapitalization, reincorporation, stock
dividend, dividend in property other than cash, stock split, liquidating
dividend, combination of shares, exchange of shares, change in corporate
structure or other transaction not involving the receipt of consideration by the
Company), the Plan will be appropriately adjusted in the type(s) and maximum
number of securities subject to the Plan pursuant to subsection 4(a), and the
outstanding Options will be appropriately adjusted in the type(s) and number of
securities and price per share of stock subject to such outstanding Options.
Such adjustments shall be made by the Board, the determination of which shall be
final, binding and conclusive. (The conversion of any convertible securities of
the Company shall not be treated as a "transaction not involving the receipt of
consideration by the Company.")

        (b) In the event of: (1) a dissolution or liquidation of the Company,
(2) the sale of all or substantially all of the Company's assets, (3) a merger,
consolidation or reorganization of the Company with or into another corporation
or other legal person, other than a merger, consolidation or reorganization in
which more than fifty percent (50%) of the combined voting power of the
then-outstanding securities of the surviving entity (or if more than one entity
survives the transaction, the controlling entity) immediately after such a
transaction are held in the aggregate by holders of voting securities of the
Company immediately prior to such transaction, (4) the acquisition by any person
(within the meaning of Section 13(d)(3) or Section 14(d)(2) of the Exchange Act)
of beneficial ownership (within the meaning of Rule 13d-3 or any successor rule
or regulation promulgated under the Exchange Act) of securities representing
fifty percent (50%) or more of the combined voting power of the then-outstanding
securities of the Company, or (5) during any period of two (2) consecutive
years, individuals who at the beginning of any such period constitute the
Directors of the Company (the "Incumbent Directors") cease for any reason to
constitute at least a majority thereof unless the election or the nomination for
election by the Company's stockholders of a Director of the Company first
elected during such period was approved by the vote of at least two-thirds of
the Incumbent Directors, whereupon such Director shall also be classified as an
Incumbent Director (collectively, a "Change in Control"), then: (i) any
surviving or acquiring corporation shall assume Options outstanding under the
Plan or shall substitute similar options (including an option to acquire the

                                       9.
<PAGE>   10

same consideration paid to stockholders in the transaction described in this
subsection 10(b)) for those outstanding under the Plan and in the event any
surviving or acquiring corporation does assume such Options or substitute
similar options for those outstanding under the Plan, then upon the Optionee's
Voluntary Termination with Good Reason (as described in subsection 10(c)) or the
Optionee's Involuntary Termination without Cause (as described in subsection
10(d)) the vesting of such Options and the time during which such Options may be
exercised shall be accelerated upon the occurrence of such event or (ii) in the
event any surviving or acquiring corporation refuses to assume such Options or
to substitute similar options for those outstanding under the Plan, then (A)
with respect to Options held by persons then performing services as Directors,
Employees or Consultants, the vesting of such Options and the time during which
such Options may be exercised shall be accelerated prior to such event and the
Options terminated if not exercised after such acceleration and at or prior to
such event, and (B) with respect to any other Options outstanding under the
Plan, such Options shall be terminated if not exercised prior to such event.

        (c) The term "Voluntary Termination with Good Reason" means the
Optionee's resignation, with Good Reason (as defined below), as a Director,
within one (1) month prior to the Change in Control or within thirteen (13)
months following a Change in Control. "Good Reason" means any of the following
to the extent applicable to the Optionee's position as a Director, Employee or
Consultant at that time:

            (i) reduction of the Optionee's rate of compensation (including
Director fees) as in effect immediately prior to the Change in Control;

            (ii) failure to provide a package of benefits which, taken as a
whole, provide substantially similar benefits to those in which the Optionee was
entitled to participate immediately prior to the Change in Control;

            (iii) a change in the Optionee's responsibilities, authority, title
or office resulting in diminution of position, excluding for this purpose an
isolated, insubstantial and inadvertent action not taken in bad faith which is
remedied by the Company promptly after notice thereof is given by the Optionee;

            (iv) a request that the Optionee render services at a site more than
thirty-five (35) miles from the prior site at which Optionee rendered services,
unless the Optionee accepts such relocation request;

            (v) failure or refusal of a successor to the Company to assume any
Option granted under this Plan; or

            (vi) any material breach by the Company or any successor to the
Company of any of the material provisions of the Optionee's Option.

        (d) The term "Involuntary Termination without Cause" means the
involuntary termination without Cause (as defined below) of the Optionee's
Continuous Service by the

                                      10.
<PAGE>   11

Company within one (1) month prior to a Change in Control or within thirteen
(13) months following a Change in Control. "Cause" means any of the following:

            (i) the Optionee's theft, dishonesty, or falsification of documents
or records;

            (ii) the Optionee's improper use or disclosure of the Company's
confidential or proprietary information;

            (iii) any action by the Optionee which has a material detrimental
effect on the Company's reputation or business;

            (iv) the Optionee's failure or inability to perform any reasonable
assigned duties after written notice from the Board of, and a reasonable
opportunity to cure, such failure or inability;

            (v) any material breach by the Optionee of any service agreement
between the Optionee and the Company which breach is not cured pursuant to the
terms of such agreement; or

            (vi) the Optionee's conviction (including any plea of guilty or nolo
contendere) of any criminal act which materially impairs the Optionee's ability
to perform his or her duties with the Company.

11.     AMENDMENT OF THE PLAN AND OPTIONS.

        (a) The Board at any time, and from time to time, may amend the Plan
and/or some or all outstanding Options granted under the Plan. However, except
as provided in Section 10 relating to adjustments upon changes in stock, no
amendment shall be effective unless approved by the stockholders of the Company
to the extent stockholder approval is necessary for the Plan to satisfy the
requirements of Rule 16b-3, any requirements of Section 144 of the Delaware
General Corporation Law, or any Nasdaq National Market or securities exchange
listing requirements.

        (b) An Optionee's rights and obligations under any Option granted before
any amendment of the Plan shall not be impaired by such amendment unless (i) the
Company requests the consent of the person to whom the Option was granted and
(ii) such person consents in writing.

12.     TERMINATION OR SUSPENSION OF THE PLAN.

        (a) The Board may suspend or terminate the Plan at any time. Unless
sooner terminated, the Plan shall terminate on February 9, 2013, which is
fifteen (15) years from the date the Plan was approved by the stockholders of
the Company. No Options may be granted under the Plan while the Plan is
suspended or after it is terminated.

        (b) An Optionee's rights and obligations under any Option granted while
the Plan is in effect shall not be impaired by suspension or termination of the
Plan, except with the consent of the person to whom the Option was granted.

                                      11.
<PAGE>   12

13.     EFFECTIVE DATE OF PLAN.

        The Plan shall become effective on the Effective Date, which is the date
of the Plan's approval by the stockholders of the Company. In the event the Plan
is not approved by the stockholders, then the Prior Plan shall continue in full
force and effect without regard to the adoption of this Plan.

                                      12.
<PAGE>   13

                              QUALCOMM INCORPORATED
                 1998 NON-EMPLOYEE DIRECTORS' STOCK OPTION PLAN
                            NONSTATUTORY STOCK OPTION

                           (ANNUAL OPTION #<<NUMBER>>)

<<First_Name>> <<Last_Name>>, Optionee:

        On <<Option_Date>>, an option to purchase shares of common stock
("Common Stock") was automatically granted to you (the "Optionee") pursuant to
the QUALCOMM Incorporated (the "Company") 1998 Non-Employee Directors' Stock
Option Plan (the "Plan"). This option is not intended to qualify and will not be
treated as an "incentive stock option" within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code"). Capitalized terms not
explicitly defined in this agreement shall have the meaning assigned to such
terms in the Plan.

        The details of your option are as follows:

        1. The total number of shares of Common Stock subject to this option is
ten thousand (10,000).

        2. The exercise price of this option is <<Option_Price>> per share, such
amount being equal to the Fair Market Value of the Common Stock on the date of
grant of this option.

        3. Subject to the limitations contained herein, this option shall become
exercisable (i.e., vest) in sixty (60) equal, consecutive monthly installments
with the first installment becoming exercisable one month after the date of the
grant. Notwithstanding the foregoing, this option shall not become fully
exercisable with respect to shares represented by the installment vesting on a
given vesting date unless you have remained in Continuous Service throughout the
period from the date of grant to such vesting date.

        4. (a) This option may be exercised, to the extent specified above, by
delivering a notice of exercise (in a form designated by the Company) together
with the exercise price to the Secretary of the Company, or to such other person
as the Company may designate, during regular business hours, together with such
additional documents as the Company may then require.

            (b) This option may only be exercised for whole shares.

            (c) You may elect to pay the exercise price under one of the
following alternatives:

                (i) In cash (or check) at the time of exercise;

                (ii) Payment pursuant to a program developed under Regulation T
as promulgated by the Federal Reserve Board which results in the receipt of cash
(or check) by the Company either prior to the issuance of shares of the Common
Stock or pursuant to the terms of irrevocable instructions issued by you prior
to the issuance of shares of the Common Stock; or

                                       1.
<PAGE>   14

                (iii) Payment by a combination of the methods of payment
specified in subparagraphs (i) and (ii) above.

            (d) By exercising this option you agree that the Company may require
you to enter an arrangement providing for the cash payment by you to the Company
of any tax withholding obligation of the Company arising by reason of the
exercise of this option.

        5. The term of this option is ten (10) years measured from the date of
grant, subject, however, to earlier termination upon your termination of
service, as set forth in Sections 6(f), (g), (h) and (i) of the Plan.

        6. This option is not transferable in any manner (including without
limitation, sale, alienation, anticipation, pledge, encumbrance, or assignment)
other than, (i) by will or by the laws of descent and distribution, (ii) by
written designation of a beneficiary, in a form acceptable to the Company, with
such designation taking effect upon your death, (iii) pursuant to a domestic
relations order as defined by the Code or Title I of the Employee Retirement
Income Security Act of 1974, or the rules thereunder, or (iv) by delivering
written notice to the Company, in a form acceptable to the Company (including
such representations, warranties and indemnifications as the Company shall
require you to make to protect the Company's interests and ensure that this
option has been transferred under the circumstances approved by the Company), by
gift to your spouse, former spouse, children, stepchildren, grandchildren,
parent, stepparent, grandparent, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
persons having one of the foregoing types of relationship to you due to
adoption, any person sharing your household (other than a tenant or employee), a
foundation in which these persons or you control the management of assets, and
any other entity in which these persons (or you) own more than fifty percent of
the voting interests. A transfer to an entity in which more than fifty percent
of the voting interests are owned by these persons (or you) in exchange for an
interest in that entity is specifically included as a permissible type of
transfer. In addition, a transfer to a trust created solely for the benefit
(i.e., you and/or any or all of the foregoing persons hold more than 50 percent
of the beneficial interest in the trust) of you and/or any or all of the
foregoing persons is also a permissible transferee. During your life this option
is exercisable only by you or a transferee satisfying the above conditions.
Except in the event of your death, upon transfer of your options to any or all
of the foregoing persons, you, as the Optionee, are liable for any and all taxes
due upon exercise of those transferred options. At no time will a transferee who
is considered an affiliate under Rule 144(a)(1) be able to sell any or all such
shares without complying with Rule 144. The right of a transferee to exercise
the transferred portion of this option shall terminate in accordance with your
right of exercise under this option and is further subject to such
representations, warranties and indemnifications from the transferee that the
Company requires the transferee to make to protect the Company's interests and
ensure that this option has been transferred under the circumstances approved by
the Company. Once a portion of this option is transferred, no further transfer
may be made of that portion of this option, unless the Company consents in
writing to the transfer.

        7. Any notices provided for in this option or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of
notices delivered by the Company to you, five (5) days after deposit in the
United States mail, postage prepaid, addressed

                                       2.
<PAGE>   15

to you at the address specified below or at such other address as you hereafter
designate by written notice to the Company.

        8. This option is subject to all the provisions of the Plan, a copy of
which is attached hereto and its provisions are hereby made a part of this
option, and is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan. In the event of any conflict between the provisions of this option and
those of the Plan, the provisions of the Plan shall control.

                                               Very truly yours,
                                               QUALCOMM Incorporated

                                               By:
                                                   ----------------------------
                                                      Richard Sulpizio
                                                      Duly authorized on behalf
                                                      of the Board of Directors

ATTACHMENTS:   1998 Non-Employee Directors' Stock Option Plan

                                       3.

<PAGE>   16

                             QUALCOMM INCORPORATED
                 1998 NON-EMPLOYEE DIRECTORS' STOCK OPTION PLAN
                            NONSTATUTORY STOCK OPTION

                          (INITIAL OPTION #<<NUMBER>>)

<<First_Name>> <<Last_Name>>, Optionee:

        On <<Option_Date>>, an option to purchase shares of common stock
("Common Stock") was automatically granted to you (the "Optionee") pursuant to
the QUALCOMM Incorporated (the "Company") 1998 Non-Employee Directors' Stock
Option Plan (the "Plan"). This option is not intended to qualify and will not be
treated as an "incentive stock option" within the meaning of Section 422 of the
Internal Revenue Code of 1986, as amended (the "Code"). Capitalized terms not
explicitly defined in this agreement shall have the meaning assigned to such
terms in the Plan.

        The details of your option are as follows:

        1. The total number of shares of Common Stock subject to this option is
twenty thousand (20,000).

        2. The exercise price of this option is <<Option_Price>> per share, such
amount being equal to the Fair Market Value of the Common Stock on the date of
grant of this option.

        3. Subject to the limitations contained herein, if:

                (i) this option is being granted pursuant to your initial
election to the Board of Directors of the Company at an annual meeting of the
Company's stockholders, then this option shall become exercisable (i.e., vest)
as to twenty percent (20%) of the shares of Common Stock subject to this option
on the first anniversary of the date of grant and the remaining shares of Common
Stock subject to this option shall become exercisable in forty-eight (48) equal,
consecutive monthly installments thereafter with the first such installment
becoming exercisable thirteen (13) months after the date of the grant; or

                (ii) this option is being granted pursuant to your initial
election to the Board of Directors of the Company at some time other than at an
annual meeting of the Company's stockholders, then this option shall become
exercisable (i.e., vest) as to twenty percent (20%) of the shares of Common
Stock subject to this option on the first anniversary of the date of grant and
the remaining shares of Common Stock subject to this option shall become
exercisable in forty-eight (48) equal, consecutive monthly installments
thereafter with the first such installment becoming exercisable thirteen (13)
months after the date of the grant.

Notwithstanding the foregoing, this option shall not become fully exercisable
with respect to shares represented by the installment vesting on a given vesting
date unless you have remained in Continuous Service throughout the period from
the date of grant to such vesting date.

        4. (a) This option may be exercised, to the extent specified above, by
delivering a notice of exercise (in a form designated by the Company) together
with the exercise price to the Secretary of the Company, or to such other person
as the Company may designate, during

                                       1.
<PAGE>   17

regular business hours, together with such additional
documents as the Company may then require.

            (b) This option may only be exercised for whole shares.

            (c) You may elect to pay the exercise price under one of the
following alternatives:

                (i) In cash (or check) at the time of exercise;

                (ii) Payment pursuant to a program developed under Regulation T
as promulgated by the Federal Reserve Board which results in the receipt of cash
(or check) by the Company either prior to the issuance of shares of the Common
Stock or pursuant to the terms of irrevocable instructions issued by you prior
to the issuance of shares of the Common Stock; or

                (iii) Payment by a combination of the methods of payment
specified in subparagraphs (i) and (ii) above.

            (d) By exercising this option you agree that the Company may require
you to enter an arrangement providing for the cash payment by you to the Company
of any tax withholding obligation of the Company arising by reason of the
exercise of this option.

        5. The term of this option is ten (10) years measured from the date of
grant, subject, however, to earlier termination upon your termination of
service, as set forth in Sections 6(f), (g), (h) and (i) of the Plan.

        6. This option is not transferable in any manner (including without
limitation, sale, alienation, anticipation, pledge, encumbrance, or assignment)
other than, (i) by will or by the laws of descent and distribution, (ii) by
written designation of a beneficiary, in a form acceptable to the Company, with
such designation taking effect upon your death, (iii) pursuant to a domestic
relations order as defined by the Code or Title I of the Employee Retirement
Income Security Act of 1974, or the rules thereunder, or (iv) by delivering
written notice to the Company, in a form acceptable to the Company (including
such representations, warranties and indemnifications as the Company shall
require you to make to protect the Company's interests and ensure that this
option has been transferred under the circumstances approved by the Company), by
gift to your spouse, former spouse, children, stepchildren, grandchildren,
parent, stepparent, grandparent, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or sister-in-law,
persons having one of the foregoing types of relationship to you due to
adoption, any person sharing your household (other than a tenant or employee), a
foundation in which these persons or you control the management of assets, and
any other entity in which these persons (or you) own more than fifty percent of
the voting interests. A transfer to an entity in which more than fifty percent
of the voting interests are owned by these persons (or you) in exchange for an
interest in that entity is specifically included as a permissible type of
transfer. In addition, a transfer to a trust created solely for the benefit
(i.e., you and/or any or all of the foregoing persons hold more than 50 percent
of the beneficial interest in the trust) of you and/or any or all of the
foregoing persons is also a permissible transferee. During your life this option
is exercisable only by you or a transferee satisfying the

                                       2.
<PAGE>   18

above conditions. Except in the event of your death, upon transfer of your
options to any or all of the foregoing persons, you, as the Optionee, are liable
for any and all taxes due upon exercise of those transferred options. At no time
will a transferee who is considered an affiliate under Rule 144(a)(1) be able to
sell any or all such shares without complying with Rule 144. The right of a
transferee to exercise the transferred portion of this option shall terminate in
accordance with your right of exercise under this option and is further subject
to such representations, warranties and indemnifications from the transferee
that the Company requires the transferee to make to protect the Company's
interests and ensure that this option has been transferred under the
circumstances approved by the Company. Once a portion of this option is
transferred, no further transfer may be made of that portion of this option,
unless the Company consents in writing to the transfer.

        7. Any notices provided for in this option or the Plan shall be given in
writing and shall be deemed effectively given upon receipt or, in the case of
notices delivered by the Company to you, five (5) days after deposit in the
United States mail, postage prepaid, addressed to you at the address specified
below or at such other address as you hereafter designate by written notice to
the Company.

        8. This option is subject to all the provisions of the Plan, a copy of
which is attached hereto and its provisions are hereby made a part of this
option, and is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan. In the event of any conflict between the provisions of this option and
those of the Plan, the provisions of the Plan shall control.

                                              Very truly yours,

                                              QUALCOMM Incorporated

                                              By:
                                                  -----------------------------
                                                     Richard Sulpizio
                                                     Duly authorized on behalf
                                                     of the Board of Directors

ATTACHMENTS:   1998 Non-Employee Directors' Stock Option Plan

                                       3.

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