Exhibit 99.2 Millennium Pharmaceuticals, Inc. Terms of Nonstatutory Stock Option GRANTED UNDER 2000 STOCK INCENTIVE PLAN 1. GRANT OF OPTION. This document sets forth terms of the grant by Millennium Pharmaceuticals, Inc., a Delaware corporation (the "Company"), on ________________ (the "Grant Date") to an employee of the Company (the "Participant"), of an option to purchase, in whole or in part, on the terms provided herein and in the Company's 2000 Stock Incentive Plan (the "Plan"), a certain number of shares (the "Shares") of common stock, $.001 par value per share, of the Company ("Common Stock") at $_____ per Share. Unless earlier terminated, this option shall expire on ____________ (the "Final Exercise Date"). The number of Shares subject to this option are set forth in the stock plan administration records of the Company, and may be obtained or verified by the Participant by contacting the Company's stock plan administrator. It is intended that the option referenced by this document shall not be an incentive stock option as defined in Section 422 of the Internal Revenue Code of 1986, as amended and any regulations promulgated thereunder (the "Code"). Except as otherwise indicated by the context, the term "Participant", as used in this option, shall be deemed to include any person who acquires the right to exercise this option validly under its terms. 2. VESTING SCHEDULE. Subject to Section 3 below, this option will become exercisable ("vest") as follows: ------------------------------------------------------------------- The right of exercise shall be cumulative so that to the extent the option is not exercised in any period to the maximum extent permissible it shall continue to be exercisable, in whole or in part, with respect to all Shares for which it is vested until the earlier of the Final Exercise Date or the termination of this option under Section 3 hereof or the Plan. 3. EXERCISE OF OPTION. (a) FORM OF EXERCISE. Each election to exercise this option shall be in writing in the form attached to this document, signed by the Participant, and received by the Company at its principal office, accompanied by payment in full in the manner provided in the Plan. The Company expects to maintain an external stock plan administration that may include a capability permitting the Participant to exercise this option electronically. Use of this service is subject to additional terms and conditions. The Participant may purchase less than the number of Shares covered hereby, provided that no partial exercise of this option may be for any fractional share. (b) CONTINUOUS RELATIONSHIP WITH THE COMPANY REQUIRED. Except as otherwise provided in this Section 3, this option may not be exercised unless the Participant, at the time he or she exercises this option, is, and has been at all times since the Grant Date, an employee, officer or director of, or consultant or advisor to, the Company or any parent or subsidiary of the Company as defined in Section 424(e) or (f) of the Code (an "Eligible Participant"). (c) TERMINATION OF RELATIONSHIP WITH THE COMPANY. If the Participant ceases to be an Eligible Participant for any reason, then the right to exercise this option shall terminate three months after such cessation, or at the end of such longer period as provided in paragraphs (d), (e) and (f) below, but in no event after the Final Exercise Date. In this circumstance, this option shall be exercisable only to the extent that the Participant was entitled to exercise this option on the date of such cessation. The rights provided in this paragraph are subject to the limitations provided in paragraph (g) below. (d) EXERCISE PERIOD UPON DISABILITY. If the Participant becomes disabled (within the meaning of Section 22(e)(3) of the Code) prior to the Final Exercise Date while he or she is an Eligible Participant, this option shall be exercisable within the period of one year following the date of disability of the Participant, but in no event after the Final Exercise Date. In this circumstance, this option shall be exercisable only to the extent that the Participant was entitled to exercise this option on the date of his or her disability. The rights provided in this paragraph are subject to the limitations provided in paragraph (g) below. (e) EXERCISE PERIOD UPON DEATH. If the Participant dies prior to the Final Exercise Date while he or she is an Eligible Participant, this option shall become immediately exercisable in full and shall be exercisable within the period of three years following the date of death of the Participant, but in no event after the Final Exercise Date. The rights provided in this paragraph are subject to the limitations provided in paragraph (g) below. (f) EXERCISE PERIOD UPON RETIREMENT. If the Participant retires prior to the Final Exercise Date while he or she is an Eligible Participant, and such Participant has, at the time of such retirement, served as an employee of the Company for a period of ten years and has, at the time of cessation, reached the age of fifty-five, then the right to exercise this option shall terminate three years after such cessation, but in no event after the Final Exercise Date. In this circumstance, this option shall be exercisable only to the extent that the Participant was entitled to exercise this option on the date of such cessation. The rights provided in this paragraph are subject to the limitations provided in paragraph (g) below. (g) BREACH OF OBLIGATIONS; DISCHARGE FOR CAUSE. If the Participant, prior to the Final Exercise Date, violates the non-competition or confidentiality provisions of any employment, consulting or advisory contract, confidentiality and nondisclosure agreement or other agreement between the Participant and the Company, the right to exercise this option shall terminate immediately upon written notice to the Participant from the Company describing such violation. If the Participant, prior to the Final Exercise Date, is discharged by the Company for "cause" (as defined below), the right to exercise this option shall terminate immediately upon the effective date of such discharge. "Cause" shall mean willful misconduct by the Participant or willful failure by the Participant to perform his or her responsibilities to the Company (including, without limitation, breach by the Participant of any provision of any employment, consulting, advisory, nondisclosure, non-competition or other similar agreement between the Participant and the Company), as determined by the Company, which determination shall be conclusive. The Participant shall be considered to have been discharged for "Cause" if the Company determines, within 30 days after the Participant's resignation, that discharge for cause was warranted. 4. WITHHOLDING. No Shares will be issued pursuant to the exercise of this option unless and until the Participant pays to the Company, or makes provision satisfactory to the Company for payment of, any federal, state or local withholding taxes required by law to be withheld in respect of this option. 5. TRANSFERABILITY OF OPTION. Except as otherwise provided in this Section, this option is not transferable other than by will or the laws of descent and distribution, and this option may be exercised, during the lifetime of the Participant, only by the Participant. However, the Participant may transfer this option for no consideration to or for the benefit of the Participant's Immediate Family (including, without limitation, to a trust for the benefit of the Participant's Immediate Family or to a partnership or limited liability company for one or more members of the Participant's Immediate Family) and the transferee shall remain subject to all the terms and conditions applicable to this option prior to such transfer. The foregoing right to transfer this option shall apply to the right to consent to amendments of the terms of this option. The term "Immediate Family" shall mean the Participant's spouse, parents, children, stepchildren, adoptive relationships, sisters, brothers and grandchildren (and, for this purpose, shall also include the Participant.) 6. PROVISIONS OF THE PLAN. This option is subject to the provisions of the Plan, a copy of which is furnished to the Participant with this document.