<SUBMISSION>
<ACCESSION-NUMBER>0000950137-05-008366
<TYPE>8-K
<PUBLIC-DOCUMENT-COUNT>2
<PERIOD>20050628
<ITEMS>1.01
<ITEMS>9.01
<FILING-DATE>20050705
<DATE-OF-FILING-DATE-CHANGE>20050705
<FILER>
<COMPANY-DATA>
<CONFORMED-NAME>ILLUMINA INC
<CIK>0001110803
<ASSIGNED-SIC>3826
<IRS-NUMBER>330804655
<STATE-OF-INCORPORATION>DE
<FISCAL-YEAR-END>0101
</COMPANY-DATA>
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<FORM-TYPE>8-K
<ACT>34
<FILE-NUMBER>000-30361
<FILM-NUMBER>05936575
</FILING-VALUES>
<BUSINESS-ADDRESS>
<STREET1>9885 TOWNE CENTRE DRIVE
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92121
<PHONE>8582024500
</BUSINESS-ADDRESS>
<MAIL-ADDRESS>
<STREET1>9885 TOWNE CENTRE DRIVE
<CITY>SAN DIEGO
<STATE>CA
<ZIP>92121
</MAIL-ADDRESS>
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<DOCUMENT>
<TYPE>8-K
<SEQUENCE>1
<FILENAME>a10455e8vk.htm
<DESCRIPTION>FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>Illumina, Inc.</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">



<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 1pt solid black; font-size: 1pt">&nbsp;</DIV>




<P align="center" style="font-size: 14pt"><B>UNITED STATES<BR>
SECURITIES AND EXCHANGE COMMISSION</B>

<P align="center" style="font-size: 14pt">&nbsp;

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>Form&nbsp;8-K</B>


<P align="center" style="font-size: 12pt"><B>Current Report</B>


<P align="center" style="font-size: 12pt"><B>Pursuant to Section&nbsp;13 or 15(d) of the Securities Exchange Act of 1934</B>


<P align="center" style="font-size: 10pt">Date of Report (Date of earliest event reported): <B>June&nbsp;28, 2005</B>


<P align="center" style="font-size: 24pt"><B>Illumina, Inc.</B>


<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>



<P align="center" style="font-size: 10pt"><B>000-30361</B><BR>
(Commission File Number)


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="47%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><B>Delaware</B><BR>
(State or other jurisdiction of<BR>
incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>33-0804655</B><BR>
(I.R.S. Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><B>9885 Towne Centre Drive, San Diego, CA 92121</B><BR>
(Address of principal executive offices, with zip code)



<P align="center" style="font-size: 10pt"><B>(858)&nbsp;202-4500</B><BR>
(Registrant&#146;s telephone number, including area code)



<P align="center" style="font-size: 10pt"><B>N/A</B><BR>
(Former name or former address, if changed since last report)



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Check the appropriate box below if the Form 8-K filing is intended to simultaneously
satisfy the filing obligation of the registrant under any of the following provisions (<I>see </I>General
Instruction A.2. below):


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR
240.14d-2(b))


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<FONT face="Wingdings">&#111;</FONT> Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR
240.13e-4(c))


<DIV style="width: 100%; border-bottom: 1pt solid black; margin-top: 10pt; font-size: 1pt">&nbsp;</DIV>
<DIV style="width: 100%; border-bottom: 2pt solid black; font-size: 1pt">&nbsp;</DIV>





<P align="center" style="font-size: 10pt">1
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">








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<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

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	<TD width="76%"></TD>
</TR>
<TR><TD colspan="9"><A HREF="#000">Item&nbsp;1.01 Entry into a Material Definitive Agreement.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#001">Item&nbsp;9.01 Financial Statements and Exhibits.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#002"> SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="#003"> <U>EXHIBIT INDEX</U></A></TD></TR>
<TR><TD colspan="9"><A HREF="a10455exv10w1.htm">EXHIBIT 10.1</A></TD></TR>
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<!-- link1 "Item&nbsp;1.01 Entry into a Material Definitive Agreement." -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>


<P align="left" style="font-size: 10pt">On June&nbsp;28, 2005, the stockholders of Illumina, Inc. (the &#147;Company&#148;), upon recommendation of the
Company&#146;s Board of Directors, approved the Illumina, Inc. 2005 Stock and Incentive Plan (the &#147;2005
Stock Plan&#148;).


<P align="left" style="font-size: 10pt"><I>Description of the 2005 Stock Plan</I>


<P align="left" style="font-size: 10pt">The 2005 Stock Plan provides for the grant of incentive stock options and nonstatutory stock
options; stock awards, including restricted stock grants, restricted stock units and stock
appreciation rights; and cash awards. Incentive stock options and cash awards may be granted only
to employees of the Company or its subsidiaries. Nonstatutory stock options and stock awards may
be granted to employees, directors (including non-employee directors) and consultants of the
Company, its parent and subsidiaries. The 2005 Stock Plan is administered by the compensation
committee of the Board of Directors.


<P align="left" style="font-size: 10pt">The 2005 Stock Plan provides that an aggregate of up to 11,542,358 shares of our common stock be
reserved and available to be issued pursuant to awards granted under the 2005 Stock Plan, plus
additional shares that may be added to the 2005 Stock Plan as described below and subject to
adjustment upon the occurrence of any stock split, stock dividend and certain other transactions
affecting the capital stock of the Company.


<P align="left" style="font-size: 10pt">The 2005 Stock Plan has an &#147;evergreen&#148; feature pursuant to which additional shares will
automatically be added to the shares reserved for issuance under the 2005 Stock Plan without
further stockholder approval as of the first day of the Company&#146;s fiscal year in each of 2006
through 2010. The number of shares that may be added each year will equal the lesser of 1,200,000
shares, 5% of the Company&#146;s outstanding common stock as of the last day of the immediately
preceding fiscal year or a number of shares established by the Company&#146;s Board of Directors.


<P align="left" style="font-size: 10pt">The 2005 Stock Plan also provides for the automatic grant of nonstatutory stock options to the
Company&#146;s non-employee directors as follows: each non-employee director first joining the
Company&#146;s Board of Directors will be granted an option (the &#147;Initial Option&#148;) to purchase 20,000
shares of common stock (as adjusted for stock splits, stock dividends, reclassifications and like
transactions) and each non-employee director who both has served on the Company&#146;s Board of
Directors for at least six months prior to, and continues to serve on the Company&#146;s Board of
Directors following, an annual stockholders meeting will be granted an option (the &#147;Annual Option&#148;)
to purchase 8,000 shares of common stock (as adjusted for stock splits, stock dividends,
reclassifications and like transactions) at the time of the stockholders meeting. The per-share
exercise price applicable to Initial and Annual Options is equal to the fair market value of the
Company&#146;s common stock on the date of grant. Subject to the director&#146;s continuing to serve on the
Company&#146;s Board of Directors, all Initial Options vest as to 33% of the shares subject to the
option on each of the first three anniversaries following the grant date, and all Annual Options
vest as to 100% of the shares subject to the option on the earlier of (i)&nbsp;the one year anniversary
of the date of grant of the option and (ii)&nbsp;the date immediately preceding the



<P align="center" style="font-size: 10pt">2
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">date of the annual
meeting of the Company&#146;s stockholders for the year following the year of grant of the option.


<P align="left" style="font-size: 10pt">A more detailed summary of the material features of the 2005 Stock Plan is set forth in the
Company&#146;s proxy statement for the 2005 Annual Meeting of Stockholders filed with the Securities and
Exchange Commission on May&nbsp;17, 2005. The summary in the proxy statement and the description of the
2005 Stock Plan contained herein are qualified in their entirety by reference to the full text of
the 2005 Stock Plan, which is included as part of the proxy statement and filed as Exhibit&nbsp;10.1 to
this Form 8-K.


<P align="left" style="font-size: 10pt"><I>Awards under the 2005 Stock Plan</I>


<P align="left" style="font-size: 10pt">On June&nbsp;28, 2005, each of our non-employee directors was granted an option to purchase 8,000 shares
of the Company&#146;s common stock under the 2005 Stock Plan. Directors receiving option grants were
Daniel M. Bradbury, Karin Eastham, William H. Rastetter, Ph.D. and David R. Walt, Ph.D. Subject to
the director&#146;s continuing service with the Company throughout such period, the options vest as to
100% of the shares on the earlier of (i)&nbsp;the one year anniversary of the date of grant of the
option and (ii)&nbsp;the date immediately preceding the date of the annual meeting of the Company&#146;s
stockholders for the year following the year of grant of the option. Each option has an exercise
price of $12.45 per share of common stock (the closing price of the Company&#146;s common stock on the
date of grant). The term of each option is ten years from the grant date.


<!-- link1 "Item&nbsp;9.01 Financial Statements and Exhibits." -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="98%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">(c)
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Exhibits.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">10.1 Illumina, Inc. 2005 Stock and Incentive Plan with forms of Option Agreement</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">3
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 " SIGNATURES" -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>


<P align="left" style="font-size: 10pt">Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused
this report to be signed on its behalf by the undersigned hereunto duly authorized.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="20%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">ILLUMINA, INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="3" valign="top" align="left">(Registrant)</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top" nowrap><DIV style="margin-left:0px; text-indent:-0px">Date: July&nbsp;5, 2005
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><I>By:</I>
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">/s/ CHRISTIAN O. HENRY</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Christian O. Henry</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Vice President and Chief Financial Officer</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">4
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- link1 " <U>EXHIBIT INDEX</U>" -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="center" style="font-size: 10pt"><U><B>EXHIBIT INDEX</B></U>


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="7%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="50%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left" style="border-bottom: 1px solid #000000"><B>Number</B></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center" style="border-bottom: 1px solid #000000"><B>Description</B></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Illumina, Inc. 2005 Stock and Incentive Plan with forms of Option Agreement</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>



<P align="center" style="font-size: 10pt">5
</DIV>

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<TYPE>EX-10.1
<SEQUENCE>2
<FILENAME>a10455exv10w1.htm
<DESCRIPTION>EXHIBIT 10.1
<TEXT>
<HTML>
<HEAD>
<TITLE>exv10w1</TITLE>
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<DIV align="right" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>EXHIBIT 10.1</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 18pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>ILLUMINA, INC.</B>
</DIV>

<DIV align="center" style="font-size: 10pt; margin-top: 12pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">
<B>2005 STOCK AND INCENTIVE PLAN</B>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
1.&nbsp;<I>Purposes of the Plan.</I> The purposes of this 2005
Stock and Incentive Plan are to attract and retain the best
available personnel for positions of substantial responsibility,
to provide additional incentive to Service Providers, and to
promote the success of the Company&#146;s business. Options
granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator
at the time of grant. Stock Awards (including Stock Grants,
Stock Units and Stock Appreciation Rights) and Cash Awards may
also be granted under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
2.&nbsp;<I>Definitions.</I> As used herein, the following
definitions shall apply:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;<I>&#147;Administrator&#148;</I> means the Board or any
    of its Committees as shall be administering the Plan, in
    accordance with Section&nbsp;4 hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;<I>&#147;Applicable Laws&#148;</I> means the
    requirements relating to the administration of stock option and
    restricted stock plans, the grant of options and the issuance of
    shares under U.S.&nbsp;state corporate laws, U.S.&nbsp;federal
    and state securities laws, the Code, any Nasdaq National Market,
    stock exchange or quotation system on which the Common Stock is
    listed or quoted and the applicable laws of any other country or
    jurisdiction where Options or Awards are granted under the Plan,
    as such laws, rules, regulations and requirements shall be in
    place from time to time.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;<I>&#147;Award&#148; </I>means an Option, a Stock Award
    or a Cash Award granted in accordance with the terms of the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;<I>&#147;Award Agreement&#148;</I> means a Stock Award
    Agreement, Cash Award Agreement and/or Option Agreement, which
    may be in written or electronic format, in such form and with
    such terms and conditions as may be specified by the
    Administrator, evidencing the terms and conditions of an
    individual Award. Each Award Agreement is subject to the terms
    and conditions of the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (e)&nbsp;<I>&#147;Board&#148;</I> means the Board of Directors
    of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (f)&nbsp;<I>&#147;Cash Award&#148;</I> means a bonus opportunity
    awarded under Section&nbsp;15 pursuant to which a Participant
    may become entitled to receive an amount based on the
    satisfaction of such performance criteria as are specified in
    the agreement or other documents evidencing the Award (the
    <I>&#147;Cash Award Agreement&#148;</I>).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (g)&nbsp;<I>&#147;Code&#148;</I> means the Internal Revenue Code
    of 1986, as amended.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (h)&nbsp;<I>&#147;Committee&#148;</I> means a committee of
    Directors appointed by the Board in accordance with
    Section&nbsp;4 hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;<I>&#147;Common Stock&#148;</I> means the common stock
    of the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (j)&nbsp;<I>&#147;Company&#148;</I> means Illumina, Inc., a
    Delaware corporation.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (k)&nbsp;<I>&#147;Consultant&#148;</I> means any natural person,
    including an advisor, engaged by the Company or a Parent or
    Subsidiary to render services to such entity.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (l)&nbsp;<I>&#147;Corporate Transaction&#148;</I> means any of
    the following, unless the Administrator provides otherwise:</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;any merger or consolidation in which the Company shall
    not be the surviving entity (or survives only as a subsidiary of
    another entity whose stockholders did not own all or
    substantially all of the Common Stock in substantially the same
    proportions as immediately prior to such transaction),</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;the sale of all or substantially all of the
    Company&#146;s assets to any other person or entity (other than
    a wholly-owned subsidiary),</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;the acquisition of beneficial ownership of a
    controlling interest (including, without limitation, power to
    vote) the outstanding shares of Common Stock by any person or
    entity (including a &#147;group&#148; as defined by or under
    Section&nbsp;13(d)(3) of the Exchange Act),</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iv)&nbsp;a contested election of Directors, as a result of
    which or in connection with which the persons who were Directors
    before such election or their nominees (the <I>&#147;Incumbent
    Directors&#148;</I>) cease to constitute a majority of the
    Board; provided however that if the election, or nomination for
    election by the Company&#146;s stockholders, of any new director
    was approved by a vote of at least fifty percent (50%) of the
    Incumbent Directors, such new Director shall be considered as an
    Incumbent Director,&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (v)&nbsp;any other event specified by the Board or a Committee,
    regardless of whether at the time an Award is granted or
    thereafter.</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (m)&nbsp;<I>&#147;Director&#148;</I> means a member of the Board.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (n)&nbsp;<I>&#147;Disability&#148;</I> means total and permanent
    disability as defined in Section&nbsp;21(e)(3) of the Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (o)&nbsp;<I>&#147;Effective Date&#148;</I> means the date on
    which the Company&#146;s stockholders approve the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (p)&nbsp;<I>&#147;Employee&#148;</I> means any person, including
    Officers and Inside Directors, employed by the Company or any
    Parent or Subsidiary of the Company. An Employee shall not be
    deemed to cease Employee status by reason of (i)&nbsp;any leave
    of absence approved by the Company or (ii)&nbsp;transfers
    between locations of the Company or between the Company, its
    Parent, any Subsidiary, or any successor. For purposes of
    Incentive Stock Options, no such leave may exceed ninety days,
    unless reemployment upon expiration of such leave is guaranteed
    by statute or contract. If reemployment upon expiration of a
    leave of absence approved by the Company is not so guaranteed,
    then three (3)&nbsp;months following the 91st&nbsp;day of such
    leave any Incentive Stock Option held by the Optionee shall
    cease to be treated as an Incentive Stock Option and shall be
    treated for tax purposes as a Nonstatutory Stock Option. Neither
    service as Director nor payment of a director&#146;s fee by the
    Company shall be sufficient to constitute &#147;employment&#148;
    by the Company.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (q)&nbsp;<I>&#147;Exchange Act&#148;</I> means the Securities
    Exchange Act of 1934, as amended.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (r)&nbsp;<I>&#147;Fair Market Value&#148;</I> means, as of any
    date, the value of a Share determined as follows:</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;If the Common Stock is listed on any established stock
    exchange or traded on a national market system, including
    without limitation the Nasdaq National Market or the Nasdaq
    SmallCap Market of The Nasdaq Stock Market, the Fair Market
    Value of a Share shall be the closing selling price for such
    stock (or the closing bid, if no sales were reported) as quoted
    on such exchange or system on the day of determination, as
    reported in <I>The Wall Street Journal </I>or such other source
    as the Administrator deems reliable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;If the Common Stock is regularly quoted by a
    recognized securities dealer but selling prices are not
    reported, the Fair Market Value of a Share shall be the mean
    between the high bid and low asked prices for the Common Stock
    on the day of determination, as reported in <I>The Wall Street
    Journal </I>or such other source as the Administrator deems
    reliable; or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;In the absence of an established market for the
    Common Stock, the Fair Market Value shall be determined in good
    faith by the Administrator.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (s)&nbsp;<I>&#147;Incentive Stock Option&#148;</I> means an
    Option intended to qualify as an incentive stock option within
    the meaning of Section&nbsp;422 of the Code and the regulations
    promulgated thereunder and as designated in the applicable
    Option Agreement.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">2

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (t)&nbsp;<I>&#147;Inside Director&#148;</I> means a Director who
    is an Employee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (u)&nbsp;<I>&#147;Nonstatutory Stock Option&#148;</I> means an
    Option not intended to qualify as an Incentive Stock Option
    and/or as designated in the applicable Option Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (v)&nbsp;<I>&#147;Notice of Grant&#148;</I> means a written or
    electronic notice evidencing certain terms and conditions of an
    individual Option grant. The Notice of Grant is part of the
    Option Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (w)&nbsp;<I>&#147;Officer&#148;</I> means a person who is an
    executive officer of the Company within the meaning of
    Section&nbsp;16 of the Exchange Act and the rules and
    regulations promulgated thereunder.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (x)&nbsp;<I>&#147;Option&#148;</I> means a stock option granted
    pursuant to the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (y)&nbsp;<I>&#147;Option Agreement&#148;</I> means an agreement
    between the Company and an Optionee evidencing the terms and
    conditions of an individual Option grant. The Option Agreement
    is subject to the terms and conditions of the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (z)&nbsp;<I>&#147;Optioned Shares&#148;</I> means the Shares
    subject to an Option.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (aa)&nbsp;<I>&#147;Optionee&#148;</I> means the holder of an
    outstanding Option granted under the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (bb)&nbsp;<I>&#147;Outside Director&#148;</I> means a Director
    who is not an Employee.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (cc)&nbsp;<I>&#147;Parent&#148;</I> means a &#147;parent
    corporation,&#148; whether now or hereafter existing, as defined
    in Section&nbsp;424(e) of the Code or any successor provision.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (dd)&nbsp;<I>&#147;Participant&#148;</I> means any holder of one
    or more Options, Stock Awards or Cash Awards, or the Shares
    issuable or issued upon exercise of such Awards, under the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ee)&nbsp;<I>&#147;Plan&#148;</I> means this 2005 Stock and
    Incentive Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ff)&nbsp;<I>&#147;Predecessor Plan&#148;</I> means the
    Illumina, Inc. 2000 Stock Plan, as amended.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (gg)&nbsp;<I>&#147;Qualifying Performance Criteria&#148;
    </I>means any one or more of the following performance criteria,
    either individually, alternatively or in any combination,
    applied to either the Company as a whole or to a business unit,
    Parent, Subsidiary or business segment, either individually,
    alternatively or in any combination, and measured either
    annually or cumulatively over a period of years, on an absolute
    basis or relative to a pre-established target, to previous
    years&#146; results or to a designated comparison group, in each
    case as specified by the Committee in the Award: (i)&nbsp;cash
    flow; (ii)&nbsp;earnings (including gross margin, earnings
    before interest and taxes, earnings before taxes, and net
    earnings); (iii)&nbsp;earnings per share; (iv)&nbsp;growth in
    earnings or earnings per share; (v)&nbsp;stock price;
    (vi)&nbsp;return on equity or average stockholders&#146; equity;
    (vii)&nbsp;total stockholder return; (viii)&nbsp;return on
    capital; (ix)&nbsp;return on assets or net assets;
    (x)&nbsp;return on investment; (xi)&nbsp;revenue;
    (xii)&nbsp;income or net income; (xiii)&nbsp;operating income or
    net operating income; (xiv)&nbsp;operating profit or net
    operating profit; (xv)&nbsp;operating margin; (xvi)&nbsp;return
    on operating revenue; (xvii)&nbsp;market share;
    (xviii)&nbsp;contract awards or backlog; (xix)&nbsp;overhead or
    other expense reduction; (xx)&nbsp;growth in stockholder value
    relative to the moving average of the S&#38;P 500 Index or a
    peer group index; (xxi)&nbsp;credit rating;
    (xxii)&nbsp;strategic plan development and implementation
    (including individual performance objectives that relate to
    achievement of the Company&#146;s or any business unit&#146;s
    strategic plan); (xxiii)&nbsp;improvement in workforce
    diversity, and (xxiv)&nbsp;any other similar criteria as may be
    determined by the Administrator. The Committee may appropriately
    adjust any evaluation of performance under a Qualifying
    Performance Criteria to exclude any of the following events that
    occurs during a performance period: (A)&nbsp;asset write-downs;
    (B)&nbsp;litigation or claim judgments or settlements;
    (C)&nbsp;the effect of changes in tax law, accounting principles
    or other such laws or provisions affecting reported results;
    (D)&nbsp;accruals for reorganization and restructuring programs;
    and (E)&nbsp;any gains or losses classified as extraordinary or
    as discontinued operations in the Company&#146;s financial
    statements.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">3
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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (hh)&nbsp;<I>&#147;Rule&nbsp;16b-3&#148;</I> means
    Rule&nbsp;16b-3 of the Exchange Act, as the same may be amended
    from time to time, or any successor to Rule&nbsp;16b-3, as in
    effect when discretion is being exercised with respect to the
    Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;<I>&#147;Service Provider&#148;</I> means (i)&nbsp;an
    individual rendering services to the Company or any Parent or
    Subsidiary of the Company in the capacity of an Employee or
    Consultant or (ii)&nbsp;an individual serving as a Director.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (jj)&nbsp;<I>&#147;Share&#148;</I> means a share of the Common
    Stock, as adjusted in accordance with Section&nbsp;17 hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (kk)&nbsp;<I>&#147;Stock Appreciation Right&#148; </I>means a
    right to receive cash and/or Shares based on a change in the
    Fair Market Value of a specific number of Shares granted under
    Section&nbsp;14.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ll)&nbsp;<I>&#147;Stock Award&#148; </I>means a Stock Grant, a
    Stock Unit or a Stock Appreciation Right granted under
    Sections&nbsp;13 or 14 below or other similar awards granted
    under the Plan (including phantom stock rights).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (mm)&nbsp;<I>&#147;Stock Award Agreement&#148; </I>means a
    written agreement, the form(s) of which shall be approved from
    time to time by the Administrator, between the Company and a
    holder of a Stock Award evidencing the terms and conditions of
    an individual Stock Award grant. Each Stock Award Agreement
    shall be subject to the terms and conditions of the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (nn)&nbsp;<I>&#147;Stock Grant&#148; </I>means the award of a
    certain number of Shares granted under Section&nbsp;13 below.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (oo)&nbsp;<I>&#147;Stock Unit&#148; </I>means a bookkeeping
    entry representing an amount equivalent to the Fair Market Value
    of one Share, payable in cash, property or Shares. Stock Units
    represent an unfunded and unsecured obligation of the Company,
    except as otherwise explicitly provided for by the Administrator.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (pp)&nbsp;<I>&#147;Subsidiary&#148;</I> means a &#147;subsidiary
    corporation,&#148; whether now or hereafter existing, as defined
    in Section&nbsp;424(f) of the Code, or any successor provision.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (qq)&nbsp;<I>&#147;Withholding Taxes&#148;</I> means the
    federal, state and local income and employment withholding
    taxes, or any other taxes required to be withheld, to which the
    holder of an Award may be subject in connection with the grant,
    exercise, or vesting of an Award or the issuance or transfer of
    Shares issued or issuable pursuant to an Award.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
3.&nbsp;<I>Stock Subject to the Plan.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;Subject to the provisions of Section&nbsp;17 hereof,
the maximum aggregate number of Shares that may be issued and
sold under the Plan is 11,542,358&nbsp;Shares. This maximum
number of Shares reserved and available for issuance under the
Stock Plan consists of Shares reserved for issuance under the
Predecessor Plan that as of May&nbsp;2, 2005 were either
(i)&nbsp;available for grant pursuant to awards that may be made
under the Predecessor Plan or (ii)&nbsp;subject to outstanding
options granted under the Predecessor Plan which Shares might be
returned to the Predecessor Plan but such Shares shall become
available for issuance hereunder only if and to the extent the
options granted under the Predecessor Plan to which they are
subject terminate or expire or become unexercisable for any
reason without having been exercised in full.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;An annual increase in the number of Shares reserved for
issuance hereunder shall automatically occur on the first day of
each fiscal year of the Company, beginning with fiscal year 2006
and ending with fiscal year 2010, equal to the lesser of
(i)&nbsp;1,200,000&nbsp;Shares (subject to adjustment under
Section&nbsp;17), (ii)&nbsp;5% of the outstanding Shares as of
the last day of the immediately preceding fiscal year or
(iii)&nbsp;a number of Shares determined by the Board. The
Shares may be authorized, but unissued, or reacquired Shares,
including Shares repurchased by the Company on the open market.
</DIV>

<P align="center" style="font-size: 10pt;">4

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;If an outstanding Award expires or terminates for any
reason prior to exercise in full, or without the Shares subject
thereto having been issued in full, the unpurchased or unissued
Shares which were subject thereto shall become available for
future grant or sale under the Plan (unless the Plan has
terminated); <I>provided, however,</I> that Shares that have
actually been issued under the Plan pursuant to an Award shall
not be returned to the Plan and shall not become available for
future distribution under the Plan, except that if unvested
Shares are repurchased by the Company at their original purchase
price or otherwise forfeited to the Company in connection with
termination of a Participant&#146;s status as a Service
Provider, such Shares shall become available for future grant
under the Plan. Should the exercise or purchase price of an
Award under the Plan be paid with Shares (including by
withholding Shares from the Award) or should Shares otherwise
issuable under the Plan be withheld by the Company in
satisfaction of the Withholding Taxes incurred in connection
with the exercise, purchase or issuance of Shares under an
Award, then the number of Shares available for issuance under
the Plan shall be reduced by the gross number of Shares issued
in connection with the Award, and not by the net number of
Shares issued to the holder of such Award.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
4.&nbsp;<I>Administration of the Plan.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;<I>Procedure.</I>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;<I>Multiple Administrative Bodies.</I> Different
    Committees with respect to different groups of Service Providers
    may administer the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;<I>Section&nbsp;162(m).</I> To the extent that the
    Administrator determines it to be desirable to qualify Awards
    granted hereunder as &#147;performance-based compensation&#148;
    within the meaning of Section&nbsp;162(m) of the Code, the Plan
    shall be administered by a Committee of two or more
    &#147;outside directors&#148; within the meaning of
    Section&nbsp;162(m) of the Code.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;<I>Rule&nbsp;16b-3.</I> To the extent desirable to
    qualify transactions hereunder as exempt under Rule&nbsp;16b-3,
    the transactions contemplated hereunder shall be structured to
    satisfy the requirements for exemption under Rule&nbsp;16b-3.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iv)&nbsp;<I>Other Administration.</I> Other than as provided
    above, the Plan shall be administered by (A)&nbsp;the Board,
    (B)&nbsp;a Committee, which committee shall be constituted to
    satisfy Applicable Laws or (C)&nbsp;subject to the Applicable
    Laws, one or more officers of the Company to whom the Board or
    Committee has delegated the power to grant Awards to persons
    eligible to receive Awards under the Plan provided such grantees
    may not be officers or Directors.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;<I>Powers of the Administrator.</I> Subject to the
provisions of the Plan, and in the case of a Committee, subject
to the specific duties delegated by the Board to such Committee,
the Administrator shall have the authority, in its discretion:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (A)&nbsp;to determine the Fair Market Value of the Common Stock
    in accordance with Section&nbsp;2(r) of the Plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (B)&nbsp;to select the Service Providers to whom Awards may be
    granted hereunder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (C)&nbsp;to determine the number of Shares or amount of cash to
    be covered by each Award granted hereunder;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (D)&nbsp;to approve forms of Award Agreements for use under the
    Plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (E)&nbsp;to determine the terms and conditions, not inconsistent
    with the terms of the Plan, of any Award granted hereunder,
    which terms and conditions include, but are not limited to, the
    exercise price and/or purchase price (if applicable), the time
    or times when Awards may be exercised (which may be based on
    performance criteria), the vesting schedule, any vesting and/or
    exercisability acceleration or waiver of forfeiture
    restrictions, the acceptable forms of consideration, the term
    and any restriction or limitation regarding any Award or the
    Shares relating thereto, based in each case on such factors as
    the Administrator, in its sole discretion, shall determine and
    may be established at the time an Award is granted or thereafter;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">5

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<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (F)&nbsp;to construe and interpret the terms of the Plan and
    Awards granted pursuant to the Plan;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (G)&nbsp;to prescribe, amend and rescind rules and regulations
    relating to the Plan, including rules and regulations relating
    to sub-plans established for the purpose of satisfying
    applicable foreign laws;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (H)&nbsp;to modify or amend each Award (subject to
    Section&nbsp;19) hereof), including the discretionary authority
    to extend the post-termination exercisability or purchase period
    of Awards longer than is originally provided for in the Award
    Agreement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (I)&nbsp;to allow Participants to satisfy Withholding Tax
    obligations by electing to have the Company withhold from the
    Shares to be issued upon exercise or settlement of an Award that
    number of Shares having a Fair Market Value equal to the minimum
    amount required to be withheld. The Fair Market Value of the
    Shares to be withheld shall be determined on the date that the
    amount of Withholding Tax is to be determined. All elections by
    a Participant to have Shares withheld for this purpose shall be
    made in such form and under such conditions as the Administrator
    may deem necessary or advisable;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (J)&nbsp;to authorize any person to execute on behalf of the
    Company any instrument required to effect the grant of an Award
    previously granted by the Administrator;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (K)&nbsp;to make all other determinations deemed necessary or
    advisable for administering the Plan.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;<I>Effect of Administrator&#146;s Decision.</I> The
Administrator&#146;s decisions, determinations and
interpretations shall be final and binding on all Participants
and any other holders of Options, Stock Awards, Cash Awards or
Shares issued under the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
5.&nbsp;<I>Eligibility.</I> Nonstatutory Stock Options and Stock
Awards may be granted to Service Providers. Incentive Stock
Options and Cash Awards may be granted only to Employees.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
6.&nbsp;<I>Limitations.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;Each Option shall be designated in the Option Agreement
as either an Incentive Stock Option or a Nonstatutory Stock
Option. However, notwithstanding designation as an Incentive
Stock Option, no installment under such an Option shall qualify
for favorable tax treatment as an Incentive Stock Option if (and
to the extent) the aggregate Fair Market Value of the Shares
(determined at the date of grant) for which such installment
first becomes exercisable hereunder would, when added to the
aggregate value (determined as of the respective date or dates
of grant) of the Shares or other securities for which such
Option or any other Incentive Stock Options granted to Optionee
prior to the date of grant (whether under the Plan or any other
plan of the Company or any Parent or Subsidiary of the Company)
first become exercisable during the same calendar year, exceed
One Hundred Thousand Dollars ($100,000) in the aggregate. Should
such One Hundred Thousand Dollar ($100,000) limitation be
exceeded in any calendar year, the Option shall nevertheless
become exercisable for the excess Optioned Shares in such
calendar year as a Nonstatutory Stock Option. For purposes of
this Section&nbsp;6(a), Incentive Stock Options shall be taken
into account in the order in which they were granted.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;Neither the Plan nor any Award shall confer upon a
Participant any right with respect to continuing the
Participant&#146;s relationship as a Service Provider with the
Company, nor shall they interfere in any way with the
Participant&#146;s right or the Company&#146;s right to
terminate such relationship at any time, with or without cause.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;The following limitations shall apply to grants of
Options and Stock Awards:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;No Service Provider shall be granted, in any fiscal
    year of the Company, Awards covering more than
    500,000&nbsp;Shares, subject to adjustment as provided in
    Section&nbsp;17 below.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">6

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;However, in connection with his or her commencement of
    Service Provider status, an individual may be granted Awards
    covering up to an additional 1,000,000&nbsp;Shares during the
    fiscal year in which such commencement occurs, which shall not
    count against the limit set forth in
    subsection&nbsp;(i)&nbsp;above and subject to adjustment as
    provided in Section&nbsp;17 below.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
7.&nbsp;<I>Term of Plan.</I> The Plan shall become effective on
the Effective Date. Unless the Plan is terminated earlier
pursuant to Section&nbsp;19 hereof, the Plan shall terminate
upon the <I>earliest</I> to occur of (a)&nbsp;June&nbsp;28,
2015, (b)&nbsp;the date on which all Shares available for
issuance under the Plan shall have been issued as fully vested
Shares or (c)&nbsp;the termination of all outstanding Awards in
connection with a dissolution or liquidation pursuant to
Section&nbsp;17(b) hereof or a Corporate Transaction pursuant to
Section&nbsp;17(c) hereof. Should the Plan terminate on
June&nbsp;28, 2015, then all Awards outstanding at that time
shall continue to have force and effect in accordance with the
provisions of the applicable Award Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
8.&nbsp;<I>Term of Option.</I> The term of each Option shall be
stated in the Option Agreement; provided, however that the term
shall be no more than ten (10)&nbsp;years from the date of grant
or such shorter term as may be provided in the Option Agreement.
Moreover, in the case of an Incentive Stock Option granted to an
Optionee who, at the time the Incentive Stock Option is granted,
owns stock representing more than ten percent (10%) of the total
combined voting power of all classes of stock of the Company or
any Parent or Subsidiary, the term of the Incentive Stock Option
shall be five (5)&nbsp;years from the date of grant or such
shorter term as may be provided in the Option Agreement.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
9.&nbsp;<I>Option Exercise Price and Consideration.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;<I>Exercise Price.</I> The per Share exercise price for
the Shares to be issued pursuant to exercise of an Option shall
be determined by the Administrator, subject to the following:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;In the case of an Incentive Stock Option</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (A)&nbsp;granted to an Employee who, at the time the Incentive
    Stock Option is granted, owns stock representing more than ten
    percent (10%) of the voting power of all classes of stock of the
    Company or any Parent or Subsidiary, the per Share exercise
    price shall be no less than 110% of the Fair Market Value per
    Share on the date of grant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (B)&nbsp;granted to any Employee other than an Employee
    described in paragraph&nbsp;(A)&nbsp;immediately above, the per
    Share exercise price shall be no less than 100% of the Fair
    Market Value per Share on the date of grant.</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;In the case of a Nonstatutory Stock Option, the per
    Share exercise price shall be no less than 100% of the Fair
    Market Value per Share on the date of grant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;Notwithstanding the foregoing, Options may be granted
    with a per Share exercise price of less than 100% of the Fair
    Market Value per Share on the date of grant pursuant to a merger
    or other corporate transaction.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;<I>Waiting Period and Exercise Dates.</I> At the time
an Option is granted, the Administrator shall fix the period
within which the Option may be exercised and shall determine any
conditions (including any vesting conditions) that must be
satisfied before the Option may be exercised.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;<I>Form of Consideration.</I> The Administrator shall
determine the acceptable form of consideration for exercising an
Option, including the method of payment. Such consideration may
consist entirely of:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;cash;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;check;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;promissory note;</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">7

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iv)&nbsp;other Shares which, in the case of Shares acquired
    directly or indirectly from the Company, (A)&nbsp;have been
    owned by the Optionee for more than six (6)&nbsp;months on the
    date of surrender (if it is required to eliminate or reduce
    accounting charges incurred by the Company in connection with
    the Option, or such other period (if any) required to so
    eliminate or reduce such charges), and (B)&nbsp;have a Fair
    Market Value on the date of surrender equal to the aggregate
    exercise price of the Shares as to which said Option shall be
    exercised;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (v)&nbsp;consideration received through a special sale and
    remittance procedure pursuant to which the Optionee shall
    concurrently provide irrevocable instructions to (A)&nbsp;a
    Company-designated brokerage firm to effect the immediate sale
    of the purchased Shares and remit to the Company, out of the
    sale proceeds available on the settlement date, sufficient funds
    to cover the aggregate exercise price payable for the purchased
    Shares plus all Withholding Taxes required to be withheld by the
    Company by reason of such exercise and (B)&nbsp;the Company to
    deliver the certificates for the purchased Shares directly to
    such brokerage firm in order to complete the sale;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (vi)&nbsp;a reduction in the amount of any Company liability to
    the Optionee, including any liability attributable to the
    Optionee&#146;s participation in any Company-sponsored deferred
    compensation program or arrangement;</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (vii)&nbsp;any combination of the foregoing methods of
    payment;&nbsp;or</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (viii)&nbsp;such other consideration and method of payment for
    the issuance of Optioned Shares as determined by the
    Administrator and to the extent permitted by Applicable Laws.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;<I>No Option Repricings.</I> Other than in connection
with a change in the Company&#146;s capitalization (as described
in Section&nbsp;17(a) of the Plan), the exercise price of an
Option may not be reduced without stockholder approval.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
10.&nbsp;<I>Exercise of Option.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;<I>Procedure for Exercise; Rights as a Stockholder.</I>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;Any Option granted hereunder shall be exercisable
    according to the terms of the Plan and at such times and under
    such conditions as determined by the Administrator and set forth
    in the Option Agreement. Unless the Administrator provides
    otherwise, vesting of Options granted hereunder shall be
    suspended during any unpaid leave of absence. An Option may not
    be exercised for a fraction of a Share.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;An Option shall be deemed exercised when the Company
    receives: (A)&nbsp;written or electronic notice of exercise (in
    accordance with the Option Agreement) from the person entitled
    to exercise the Option, and (B)&nbsp;full payment for the
    Optioned Shares with respect to which the Option is exercised
    and (C)&nbsp;satisfaction of any Withholding Taxes. Full payment
    may consist of any consideration and method of payment
    authorized by the Administrator and permitted by the Plan and
    shall be set forth in the Option Agreement. Shares issued upon
    exercise of an Option shall be issued in the name of the
    Optionee or, if requested by the Optionee, in the name of the
    Optionee and his or her spouse. Until the Shares are issued (as
    evidenced by the appropriate entry on the books of the Company
    or of a duly authorized transfer agent of the Company), no right
    to vote or receive dividends or any other rights as a
    stockholder shall exist with respect to the Optioned Shares,
    notwithstanding the exercise of the Option. The Company shall
    issue (or cause to be issued) such Shares promptly after the
    Option is exercised. No adjustment will be made for a dividend
    or other right for which the record date is prior to the date
    the Shares are issued, except as provided in Section&nbsp;17
    hereof.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;Exercising an Option in any manner shall decrease the
    number of Optioned Shares thereafter available, both for
    purposes of the Plan and for sale under the Option, by the
    number of Shares as to which the Option is exercised.</TD>
</TR>

</TABLE>

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<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;<I>Termination of Relationship as a Service
Provider.</I> If an Optionee ceases to be a Service Provider,
other than upon the Optionee&#146;s death or Disability, such
Optionee may exercise his or her Option for a period of three
(3)&nbsp;months measured from the date of termination, or such
longer period of time as specified in the Option Agreement, to
the extent that the Option is vested on the date of termination
(but in no event later than the expiration of the term of the
Option as set forth in the Option Agreement). If, on the date of
termination, the Optionee is not vested as to his or her entire
Option, the Option shall immediately terminate as to all the
Optioned Shares covered by the unvested portion of the Option,
and those Optioned Shares shall revert immediately to the Plan.
To the extent the Optionee does not, within the post-termination
time period specified in the Option Agreement, exercise the
Option for the Optioned Shares in which Optionee is vested at
the time of such termination of Service Provider status, the
Option shall terminate with respect to those vested Optioned
Shares at the end of such period, and those Optioned Shares
shall revert to the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;<I>Disability of Optionee.</I> If an Optionee ceases to
be a Service Provider as a result of the Optionee&#146;s
Disability, the Optionee may exercise his or her Option within
twelve (12)&nbsp;months of termination, or such longer period of
time as specified in the Option Agreement, to the extent the
Option is vested on the date of termination (but in no event
later than the expiration of the term of such Option as set
forth in the Option Agreement). If, on the date of termination,
the Optionee is not vested as to his or her entire Option, the
Option shall immediately terminate as to the Optioned Shares
covered by the unvested portion of the Option, and those
Optioned Shares shall revert immediately to the Plan. To the
extent the Optionee does not, within the post-termination time
period specified in the Option Agreement, exercise the Option
for the Optioned Shares in which Optionee is vested at the time
of such termination of Service Provider status, the Option shall
terminate with respect to those vested Optioned Shares at the
end of such period, and those Optioned Shares shall revert to
the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(d)&nbsp;<I>Death of Optionee.</I> If an Optionee dies while a
Service Provider, the Option may be exercised within twelve
(12)&nbsp;months following Optionee&#146;s death, or such longer
period of time as specified in the Option Agreement, to the
extent that the Option is vested on the date of death (but in no
event later than the expiration of the term of such Option as
set forth in the Option Agreement) by the Optionee&#146;s
designated beneficiary, provided such beneficiary has been
designated prior to Optionee&#146;s death in a form acceptable
to the Administrator. If no such beneficiary has been designated
by the Optionee, then such Option may be exercised by the
personal representative of the Optionee&#146;s estate or by the
person(s) to whom the Option is transferred pursuant to the
Optionee&#146;s will or in accordance with the laws of descent
and distribution. If, at the time of death, the Optionee is not
vested as to his or her entire Option, the Option shall
immediately terminate as to the Optioned Shares covered by the
unvested portion of the Option, and those Optioned Shares shall
immediately revert to the Plan. To the extent the Option is not,
within the post-termination time period specified in the Option
Agreement, exercised for the Optioned Shares in which Optionee
is vested at the time of such termination of Service Provider
status, the Option shall terminate with respect to those vested
Optioned Shares, and those Optioned Shares shall revert to the
Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
11.&nbsp;<I>Formula Option Grants to Outside Directors.</I>
Outside Directors shall automatically be granted Options in
accordance with the following provisions:
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;All Options granted pursuant to this Section shall be
    Nonstatutory Stock Options and, except as otherwise provided in
    this Section&nbsp;11, shall be subject to the other terms and
    conditions of the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;Each individual who becomes an Outside Director after
    the Effective Date shall be automatically granted an Option to
    purchase&nbsp;20,000&nbsp;Shares subject to adjustment as set
    forth in Section&nbsp;17(a) below (the &#147;First Option&#148;)
    on the date such individual is elected as a Director, whether
    through election by the stockholders of the Company or
    appointment by the Board to fill a vacancy; <I>provided,
    however</I>, that an Inside Director who ceases to be an Inside
    Director but who remains a Director shall not receive a First
    Option.</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">9

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;On each annual stockholder meeting commencing with the
    Effective Date, each Outside Director who continues to serve in
    such capacity immediately after such annual stockholder meeting
    shall be automatically granted an Option to
    purchase&nbsp;8,000&nbsp;Shares subject to adjustment as set
    forth in Section&nbsp;17(a) below (a &#147;Subsequent
    Option&#148;); provided that the Outside Director has served on
    the Board for at least six calendar months prior to the date of
    such annual stockholder meeting.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;The terms of a First Option or a Subsequent Option
    granted pursuant to this Section shall be as follows:</TD>
</TR>

</TABLE>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;The term of the Option shall be ten (10)&nbsp;years
    measured from the date of grant.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;The Option shall be exercisable only during the time
    that the Outside Director remains a Director and, with respect
    to Optioned Shares vested on the last day of service as a
    Director for the six (6)&nbsp;month period following the date of
    the Optionee&#146;s cessation of service as a Director,
    <I>provided, however</I>, that the Option cannot be exercised
    after the expiration of the term of the Option. If, at the time
    of Optionee&#146;s cessation of service as a Director, the
    Optionee is not vested as to his or her entire Option, the
    Option shall immediately terminate as to the Optioned Shares
    covered by the unvested portion of the Option, and those
    Optioned Shares shall immediately revert to the Plan. To the
    extent the Option is not, within the post-termination time
    period specified in the Option Agreement, exercised for the
    Optioned Shares in which the Optionee is vested at the time of
    his or her cessation of Director status, the Option shall
    terminate with respect to those vested Optioned Shares, and
    those Optioned Shares shall revert to the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iii)&nbsp;The exercise price per Share shall be 100% of the
    Fair Market Value per Share on the date of grant of the Option.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (iv)&nbsp;The First Option shall vest and become exercisable as
    to 33% of the Optioned Shares on each of the first three
    anniversaries of its date of grant, provided that the Optionee
    continues to serve as a Director on such dates.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (v)&nbsp;The Subsequent Option shall vest and become exercisable
    as to 100% of the Optioned Shares on the earlier of (i)&nbsp;the
    one year anniversary of the date of grant of the Option and
    (ii)&nbsp;the date immediately preceding the date of the annual
    meeting of the Company&#146;s stockholders for the year
    following the year of grant of the Option, provided that the
    Optionee continues to serve as a Director on such date.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (vi)&nbsp;If an Outside Director dies or ceases to serve as a
    Director as a result of the Outside Director&#146;s Disability
    while holding any outstanding Option under this Section&nbsp;11,
    then that Option may be exercised within six (6)&nbsp;months
    following his or her death or termination, or such longer period
    of time as specified in the Option Agreement, to the extent that
    the Option is vested on the date of death or termination (but in
    no event later than the expiration of the term of such Option as
    set forth in the Option Agreement) by the Outside Director or
    the Outside Director&#146;s designated beneficiary, provided
    such beneficiary has been designated prior to his or her death
    in a form acceptable to the Administrator. If no such
    beneficiary has been designated by the Outside Director, then
    such Option may be exercised by the personal representative of
    his or her estate or by the person(s) to whom the Option is
    transferred pursuant to his or her will or in accordance with
    the laws of descent and distribution. If, at the time of death
    or termination as a result of Disability, the Outside Director
    is not vested as to his or her entire Option, the Option shall
    immediately terminate as to the Optioned Shares covered by the
    unvested portion of the Option, and those Optioned Shares shall
    immediately revert to the Plan. To the extent the Option is not,
    within the post-termination time period specified in the Option
    Agreement, exercised for the Optioned Shares in which the
    Outside Director is vested at the time of death or termination
    as a result of</TD>
</TR>

</TABLE>

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<TR>
    <TD width="6%"></TD>
    <TD width="94%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    Disability, the Option shall terminate with respect to those
    vested Optioned Shares, and those Optioned Shares shall revert
    to the Plan.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (vii)&nbsp;In the event of a Corporate Transaction, all Options
    granted pursuant to this Section II shall be subject to the
    terms and conditions of Section 17(c); provided that in the
    event that the successor corporation does not assume or
    substitute for each First Option and Subsequent Option, the
    Optionee shall fully vest in and have the right to exercise the
    Option as to all of the Optioned Shares, including Shares as to
    which it would not otherwise be vested or exercisable.</TD>
</TR>

</TABLE>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (e)&nbsp;The Board shall have sole and exclusive authority to
    establish, maintain, amend, suspend, and terminate any program
    by which Outside Directors are automatically granted
    Nonstatutory Stock Options pursuant to this Section&nbsp;11.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
12.&nbsp;<I>Limited Transferability of Options.</I> An Option
generally may not be sold, pledged, assigned, hypothecated,
transferred, or disposed of in any manner other than by will or
by the laws of descent or distribution and may be exercised,
during the lifetime of the Optionee, only by the Optionee;
provided however that Nonstatutory Stock Options may be
transferred by instrument to an inter vivos or testamentary
trust in which the Nonstatutory Stock Options are to be passed
to beneficiaries upon the death of the trustor (settlor)&nbsp;or
by gift or pursuant to domestic relations orders to
&#147;Immediate Family Members&#148; (as defined below) of the
Optionee. <I>&#147;Immediate Family&#148;</I> means any child,
stepchild, grandchild, parent, stepparent, grandparent, spouse,
former spouse, sibling, niece, nephew, mother-in-law,
father-in-law, son-in-law, daughter-in-law, brother-in-law, or
sister-in-law (including adoptive relationships), a trust in
which these persons have more than fifty percent of the
beneficial interest, a foundation in which these persons (or the
Optionee) control the management of assets, and any other entity
in which these persons (or the Optionee) own more than fifty
percent of the voting interests. The Optionee may designate one
or more persons as the beneficiary or beneficiaries of his or
her outstanding Options, and those Options shall, in accordance
with such designation, automatically be transferred to such
beneficiary or beneficiaries upon the Optionee&#146;s death
while holding those Options. Such beneficiary or beneficiaries
shall take the transferred Options subject to all the terms and
conditions of the applicable agreement evidencing each such
transferred Option, including (without limitation) the limited
time period during which the Option may be exercised following
the Optionee&#146;s death.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
13.&nbsp;<I>Stock Grants and Stock Unit Awards.</I> Each Stock
Award Agreement reflecting the issuance of a Stock Grant or
Stock Unit shall be in such form and shall contain such terms
and conditions as the Administrator shall deem appropriate. The
terms and conditions of such agreements may change from time to
time, and the terms and conditions of separate agreements need
not be identical, but each such agreement shall include (through
incorporation of provisions hereof by reference in the agreement
or otherwise) the substance of each of the following provisions:
</DIV>

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;<I>Consideration.</I> A Stock Grant or Stock Unit may
    be awarded in consideration for such property or services as is
    permitted under Applicable Law, including for past services
    actually rendered to the Company or a Subsidiary for its benefit.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;<I>Vesting.</I> Shares of Common Stock awarded under an
    agreement reflecting a Stock Grant and a Stock Unit award may,
    but need not, be subject to a share repurchase option,
    forfeiture restriction or other conditions in favor of the
    Company in accordance with a vesting or lapse schedule to be
    determined by the Administrator.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;<I>Termination of Participant&#146;s Relationship as a
    Service Provider.</I> In the event a Participant&#146;s
    relationship as a Service Provider terminates, the Company may
    reacquire any or all of the Shares held by the Participant which
    have not vested or which are otherwise subject to forfeiture or
    other conditions as of the date of termination under the terms
    of the agreement.</TD>
</TR>

</TABLE>

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<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;<I>Transferability.</I> Except as determined by the
    Board, no rights to acquire Shares under a Stock Grant or a
    Stock Unit shall be assignable or otherwise transferable by the
    Participant except by will or by the laws of descent and
    distribution.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
14.&nbsp;<I>Stock Appreciation Rights.</I>
</DIV>

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    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;<I>General.</I> Stock Appreciation Rights may be
    granted either alone, in addition to, or in tandem with other
    Awards granted under the Plan. The Administrator may grant Stock
    Appreciation Rights to eligible Participants subject to terms
    and conditions not inconsistent with this Plan and determined by
    the Administrator. The specific terms and conditions applicable
    to the Participant shall be provided for in the Stock Award
    Agreement. Stock Appreciation Rights shall be exercisable, in
    whole or in part, at such times as the Administrator shall
    specify in the Stock Award Agreement.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;<I>Exercise of Stock Appreciation Right.</I> Upon the
    exercise of a Stock Appreciation Right, in whole or in part, the
    Participant shall be entitled to a payment in an amount equal to
    the excess of the Fair Market Value on the date of exercise of a
    fixed number of Shares covered by the exercised portion of the
    Stock Appreciation Right, over the Fair Market Value on the
    grant date of the Shares covered by the exercised portion of the
    Stock Appreciation Right (or such other amount calculated with
    respect to Shares subject to the award as the Administrator may
    determine). The amount due to the Participant upon the exercise
    of a Stock Appreciation Right shall be paid in such form of
    consideration as determined by the Administrator and may be in
    cash, Shares or a combination thereof, over the period or
    periods specified in the Stock Award Agreement. A Stock Award
    Agreement may place limits on the amount that may be paid over
    any specified period or periods upon the exercise of a Stock
    Appreciation Right, on an aggregate basis or as to any
    Participant. A Stock Appreciation Right shall be considered
    exercised when the Company receives written notice of exercise
    in accordance with the terms of the Stock Award Agreement from
    the person entitled to exercise the Stock Appreciation Right.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;<I>Transferability.</I> Except as determined by the
    Board, no Stock Appreciation Rights shall be assignable or
    otherwise transferable by the Participant except by will or by
    the laws of descent and distribution.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
15.&nbsp;<I>Cash Awards.</I> Each Cash Award will confer upon
the Participant the opportunity to earn a future payment tied to
the level of achievement with respect to one or more performance
criteria established for a performance period of not less than
one (1)&nbsp;year.
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (a)&nbsp;<I>Cash Award.</I> Each Cash Award shall contain
    provisions regarding (i)&nbsp;the target and maximum amount
    payable to the Participant as a Cash Award, (ii)&nbsp;the
    Qualifying Performance Criteria and level of achievement versus
    these criteria which shall determine the amount of such payment,
    (iii)&nbsp;the period as to which performance shall be measured
    for establishing the amount of any payment, (iv)&nbsp;the timing
    of any payment earned by virtue of performance,
    (v)&nbsp;restrictions on the alienation or transfer of the Cash
    Award prior to actual payment, (vi)&nbsp;forfeiture provisions,
    and (vii)&nbsp;such further terms and conditions, in each case
    not inconsistent with the Plan, as may be determined from time
    to time by the Administrator. The maximum amount payable as a
    Cash Award may be a multiple of the target amount payable, but
    the maximum amount payable pursuant to that portion of a Cash
    Award granted under this Plan for any fiscal year to any
    Participant shall not exceed U.S.&nbsp;$1,000,000.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (b)&nbsp;<I>Performance Criteria.</I> The Administrator shall
    establish the Qualifying Performance Criteria and level of
    achievement versus these criteria which shall determine the
    target and the minimum and maximum amount payable under a Cash
    Award. The Administrator may specify the percentage of the
    target Cash Award that is intended to satisfy the requirements
    for &#147;performance-based compensation&#148; under
    Section&nbsp;162(m) of the Code. Notwithstanding anything to the
    contrary herein, the performance criteria for any portion of a
    Cash Award that is intended to satisfy the requirements for
    &#147;performance-based compensation&#148; under
    Section&nbsp;162(m) of the Code shall</TD>
</TR>

</TABLE>

<P align="center" style="font-size: 10pt;">12

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<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">
    be a measure established by the Administrator based on one or
    more Qualifying Performance Criteria selected by the
    Administrator and specified in writing not later than
    90&nbsp;days after the commencement of the period of service to
    which the performance goals relates, provided that the outcome
    is substantially uncertain at that time (or in such other manner
    that complies with Section&nbsp;162(m)).</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (c)&nbsp;<I>Timing and Form of Payment.</I> The Administrator
    shall determine the timing of payment of any Cash Award. The
    Administrator may provide for or, subject to such terms and
    conditions as the Administrator may specify and Applicable Laws,
    may permit a Participant to elect for the payment of any Cash
    Award to be deferred to a specified date or event. The
    Administrator may specify the form of payment of Cash Awards,
    which may be cash or other property, or may provide for a
    Participant to have the option for his or her Cash Award, or
    such portion thereof as the Administrator may specify, to be
    paid in whole or in part in cash or other property.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (d)&nbsp;<I>Termination of Relationship as a Service
    Provider.</I> The Administrator shall have the discretion to
    determine the effect of a termination as a Service Provider due
    to (i)&nbsp;Disability, (ii)&nbsp;death or (iii)&nbsp;otherwise
    shall have on any Cash Award.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
16.&nbsp;<I>Section&nbsp;162(m) Compliance.</I> Any Stock Award
(other than an Option or any other Stock Award having a purchase
price equal to 100% of the Fair Market Value on the date such
award is made) or Cash Award that is intended as &#147;qualified
performance-based compensation&#148; within the meaning of
Section&nbsp;162(m) of the Code must vest or become exercisable
or payable contingent on the achievement of one or more
Qualifying Performance Criteria. Notwithstanding anything to the
contrary herein, the Committee shall have the discretion to
determine the time and manner of compliance with
Section&nbsp;162(m) of the Code as required under applicable
regulations and to conform the procedures related to the Award
to the requirements of Section&nbsp;162(m) and may in its
discretion reduce the number of Shares granted or amount of cash
or other property to which a Participant may otherwise have been
entitled with respect to an Award designed to qualify as
performance-based compensation under Section&nbsp;162(m).
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
17.&nbsp;<I>Adjustments Upon Changes in Capitalization,
Dissolution or Corporate Transaction.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;<I>Changes in Capitalization.</I> Subject to any
required action by the stockholders of the Company, (i)&nbsp;the
number of Shares which have been authorized for issuance under
the Plan but as to which no Awards have yet been granted or
which have been returned to the Plan upon cancellation or
expiration of an Award, (ii)&nbsp;the number of Shares that may
be added annually to the Plan pursuant to Section&nbsp;3(b)(i)
hereof, (iii)&nbsp;the number of Optioned Shares granted under
First Options and Subsequent Options under Section&nbsp;11
hereof, (iv)&nbsp;the maximum numbers of Shares that may be
granted under Awards to any Service Provider within any fiscal
year as set forth in Section&nbsp;6(c) and (v)&nbsp;the number
of Shares as well as the price per Share subject to each
outstanding Award, shall be proportionately adjusted for any
increase or decrease in the number of issued Shares resulting
from a stock split, reverse stock split, stock dividend,
combination or reclassification of the Common Stock, or any
other increase or decrease in the number of issued Shares
effected without receipt of consideration by the Company;
<I>provided, however, </I>that conversion of any convertible
securities of the Company shall not be deemed to have been
&#147;effected without receipt of consideration.&#148; Such
adjustment shall be made by the Administrator, whose
determination in that respect shall be final, binding and
conclusive. Except as expressly provided herein, no issuance by
the Company of shares of stock of any class, or securities
convertible into shares of stock of any class, shall affect, and
no adjustment by reason thereof shall be made with respect to,
the number or price of Shares.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;<I>Dissolution or Liquidation.</I> In the event of the
proposed dissolution or liquidation of the Company, the
Administrator shall notify each Participant as soon as
practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may (but need
not) provide for a Participant to have the right to exercise his
or her Option or Stock Award until ten (10)&nbsp;days prior to
such transaction as to all of the Shares covered thereby,
including Shares as to which the Option or Stock Award would not
otherwise be exercisable. In addition, the Administrator may
(but need not)
</DIV>

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<DIV align="left" style="font-size: 10pt;">
provide that any Company repurchase option applicable to any
unvested Shares purchased upon exercise of an Option or issued
under a Stock Award shall lapse as to all such Shares, provided
the proposed dissolution or liquidation takes place at the time
and in the manner contemplated. To the extent it has not been
previously exercised, an Award will terminate immediately prior
to the consummation of such proposed action.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(c)&nbsp;<I>Corporate Transaction.</I>
</DIV>

<DIV style="margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;"></DIV>

<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt;">

<TR>
    <TD width="3%"></TD>
    <TD width="97%"></TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (i)&nbsp;In the event of a Corporate Transaction, as determined
    by the Board or a Committee, the Board or Committee may, in its
    discretion, (i)&nbsp;provide for the assumption or substitution
    of, or adjustment to, each outstanding Award;
    (ii)&nbsp;accelerate the vesting of Options and terminate any
    restrictions on Cash Awards or Stock Awards; and/or
    (iii)&nbsp;provide for termination of Awards as a result of the
    Corporate Transaction on such terms and conditions as it deems
    appropriate, including providing for the cancellation of Awards
    for a cash payment to the Participant. For the purposes of this
    paragraph, the Award shall be considered assumed if, following
    the Corporate Transaction, the Award confers the right to
    purchase or receive, for each Share or amount of cash covered by
    the Award immediately prior to the Corporate Transaction, the
    consideration (whether stock, cash, or other securities or
    property) received in the Corporate Transaction by holders of
    Common Stock for each Share held on the effective date of the
    Corporate Transaction (and if holders were offered a choice of
    consideration, the type of consideration chosen by the holders
    of a majority of the outstanding Shares); <I>provided, however,
    </I>that if such consideration received in the Corporate
    Transaction is not solely common stock of the successor
    corporation or its Parent, the Administrator may, with the
    consent of the successor corporation, provide for the
    consideration to be received upon the exercise of the Award, for
    each Share covered by the Award, to be solely common stock of
    the successor corporation or its Parent equal in fair market
    value to the per share consideration received by holders of
    Shares in the Corporate Transaction.</TD>
</TR>

<TR>
    <TD style="font-size: 6pt">&nbsp;</TD>
</TR>

<TR valign="top">
    <TD>&nbsp;</TD>
    <TD align="left">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
    (ii)&nbsp;Each Option or Stock Award which is assumed pursuant
    to this Section&nbsp;17(c) shall be appropriately adjusted,
    immediately after such Corporate Transaction, to apply to the
    number and class of securities which would have been issuable to
    the Participant in consummation of such Corporate Transaction
    had the Option or Stock Award been exercised immediately prior
    to such Corporate Transaction. Appropriate adjustments to
    reflect such Corporate Transaction shall also be made to
    (A)&nbsp;the exercise or purchase price payable per share under
    each outstanding Option or Stock Award, provided the aggregate
    exercise or purchase price payable for such securities shall
    remain the same, (B)&nbsp;the maximum number and/or class of
    securities available for issuance over the remaining term of the
    Plan, (C)&nbsp;the maximum number and/or class of securities for
    which any one person may be granted Options or Stock Awards
    under the Plan per year, (D)&nbsp;the maximum number and/or
    class of securities by which the share reserve is to increase
    automatically each year and (E)&nbsp;the number and/or class of
    securities subject to the Options granted under Section&nbsp;11.</TD>
</TR>

</TABLE>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
18.&nbsp;<I>Date of Grant.</I> The date of grant of a First
Option or Subsequent Option shall be the date on which it was
automatically granted pursuant to Section&nbsp;11 hereof. The
date of grant of any other Award shall be, for all purposes, the
date on which the Administrator grants such Award. Notice of the
grant shall be provided to each Participant within a reasonable
time after the date of such grant.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
19.&nbsp;<I>Amendment and Termination of the Plan.</I> The Board
may at any time amend, alter, suspend or terminate the Plan.
However, the Company shall obtain stockholder approval of any
Plan amendment to the extent necessary and desirable to comply
with Applicable Laws. In addition, no amendment, alteration,
suspension or termination of the Plan shall impair the rights of
any Participant under any grant theretofore made, unless
mutually agreed otherwise between the Participant and the
Administrator, which agreement must be in writing and signed by
the Participant and the Company. Termination of the Plan shall
not affect the Administrator&#146;s ability to exercise the
powers granted to it hereunder with respect to Awards granted
under the Plan prior to the date of such termination. In
addition, unless approved by the stockholders of the Company, no
amendment shall be made that
</DIV>

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<DIV align="left" style="font-size: 10pt;">
would result in a repricing of Options by (x)&nbsp;reducing the
exercise price of outstanding Options or (y)&nbsp;canceling an
outstanding Option held by a Participant and re-granting to the
Participant a new Option with a lower exercise price, in either
case other than in connection with a change in the
Company&#146;s capitalization pursuant to Section&nbsp;17(a) of
the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
20.&nbsp;<I>Conditions Upon Issuance of Shares.</I>
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(a)&nbsp;Awards shall not be granted and Shares shall not be
issued pursuant to the exercise of an Award unless the grant of
the Award, the exercise or settlement of such Award and the
issuance and delivery of such Shares shall comply with
Applicable Laws and shall be further subject to the approval of
counsel for the Company with respect to such compliance.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
(b)&nbsp;No Shares or other assets shall be issued or delivered
under the Plan unless and until there shall have been compliance
with all applicable requirements of Federal and state securities
laws, including the filing and effectiveness of the
Form&nbsp;S-8 registration statement for the Shares, and all
applicable listing requirements of any stock exchange (or the
Nasdaq National Market, if applicable) on which Common Stock is
then listed for trading.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
21.&nbsp;<I>Inability to Obtain Authority.</I> The inability of
the Company to obtain authority from any regulatory body having
jurisdiction (including under Section&nbsp;20), which authority
is deemed by the Company&#146;s counsel to be necessary to the
lawful grant of Awards and issuance and sale of any Shares
hereunder, shall relieve the Company of any liability in respect
of the failure to grant such Awards or issue or sell such Shares
as to which such requisite authority shall not have been
obtained.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
22.&nbsp;<I>Reservation of Shares.</I> The Company, during the
term of this Plan, will at all times reserve and keep available
such number of Shares as shall be sufficient to satisfy the
requirements of the Plan.
</DIV>

<DIV align="left" style="font-size: 10pt; margin-top: 6pt; margin-left: 0; margin-right: 0; margin-bottom: 0; color: #000000; background: #ffffff;">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;
23.&nbsp;<I>Stockholder Approval.</I> If required by Applicable
Laws, continuance of the Plan shall be subject to approval by
the stockholders of the Company within twelve (12)&nbsp;months
after the date the Plan is adopted or after any amendment
requiring stockholder approval is made. Such stockholder
approval shall be obtained in the manner and to the degree
required under Applicable Laws.
</DIV>

<P align="center" style="font-size: 10pt;">15
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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><B>ILLUMINA, INC.</B>



<P align="center" style="font-size: 10pt"><B>2005 STOCK AND INCENTIVE PLAN</B>



<P align="center" style="font-size: 10pt"><U><B>STOCK OPTION AGREEMENT</B></U>



<P align="center" style="font-size: 10pt"><B>AUTOMATIC GRANT FOR NONEMPLOYEE DIRECTOR</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>All capitalized terms shall have the meaning assigned to them in the attached Appendix.</TD>
</TR>

<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">24.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>NOTICE OF GRANT</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You have been granted an option to purchase shares of Common Stock of the Company, subject to
the terms and conditions of the Plan and this Option Agreement, as follows:

<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="99%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><U>Name of Optionee</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="99%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="90%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><U>Grant Date</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="99%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="6%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><U>Vesting Commencement
Date</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="99%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="86%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><U>Exercise Price per
Share</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="99%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="4%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="85%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><U>Number of Shares Subject
to the Option</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="99%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="2%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><U>Type of Option</U>:
<U>Nonstatutory Option</U></TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="right">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="99%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="3%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="99%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><U>Expiration Date</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="right" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="margin-left:2%; font-size: 10pt"><U>Vesting Schedule</U>: Subject to accelerated vesting as set forth below, this Option
may be exercised, in whole or in part, in accordance with the following schedule:



<P align="left" style="margin-left:2%; font-size: 10pt">&#091;On the first three year anniversaries of the Vesting Commencement Date of this Option,
one-third (1/3) of the Optioned Shares shall vest and become exercisable, subject to
Optionee&#146;s continuing to be a Director on such date.&#093;



<P align="left" style="margin-left:2%; font-size: 10pt">&#091;100% of the Optioned Shares shall vest and become exercisable on the earlier of (i)&nbsp;the one
year anniversary of the date of grant of this Option and (ii)&nbsp;the date immediately preceding
the date of the annual meeting of the Company&#146;s stockholders for the year following the year
of grant of this Option, subject to Optionee&#146;s continuing to be a Director on such date.&#093;



<P align="center" style="font-size: 10pt">16
</DIV>

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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">25. AGREEMENT



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a)&nbsp;Grant of Option. The Optionee is hereby granted an Option to purchase the number of Shares
set forth in the Notice of Grant at the per share Exercise Price set forth in the Notice of Grant,
subject to the terms and conditions of the Plan, which is incorporated herein by reference.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b)&nbsp;Exercise of Option.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U>Right to Exercise</U>. This Option shall vest and become exercisable in one or more
installments in accordance with the vesting schedule set out in the Notice of Grant and the
applicable provisions of the Plan and this Option Agreement. As this Option becomes vested and
exercisable for such installments, those installments shall accumulate, and this Option shall
remain vested and exercisable for the accumulated installments until the Expiration Date or sooner
termination under this Paragraph&nbsp;B. In no event may this Option be exercised for any fractional
shares.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii) <U>Post-Service Exercisability</U>.




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Should Optionee cease to be a Director for any reason (other than death) while
holding this Option, then Optionee shall have a period of six (6)&nbsp;months (commencing with
the date of such cessation of service) during which to exercise this Option.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Should Optionee die or cease to serve as a Director as a result of the Director&#146;s
Disability while holding this Option, then the personal representative of Optionee&#146;s estate
or the person or persons to whom this Option is transferred pursuant to Optionee&#146;s will or
the laws of inheritance shall have the right to exercise this Option. However, if Optionee
has designated one or more beneficiaries of this Option in a form acceptable to the
Administrator, then those persons shall have the exclusive right to exercise this Option
following Optionee&#146;s death. Any such right to exercise this Option shall lapse, and this
Option shall cease to be outstanding, upon the expiration of the six (6)-month period
measured from the date of Optionee&#146;s death or termination.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) During the limited period of post-service exercisability, this Option may not be
exercised in the aggregate for more than the number of Optioned Shares for which this Option
is exercisable at the time the Optionee ceases to be a Director. Upon the expiration of
such limited exercise period or (if earlier) upon the Expiration Date, this Option shall
terminate and cease to be outstanding for any exercisable Optioned Shares for which this
Option has not been exercised. However, this Option shall, immediately upon Optionee&#146;s
cessation as a Director for any reason, terminate and cease to be outstanding with respect
to any Optioned Shares for which this Option is not otherwise at that time exercisable.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D) In no event shall this Option be exercisable at any time after the Expiration Date.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)
<U><B>Special Acceleration of Option.</B></U>




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In the event of a Corporate Transaction, this Option shall be assumed or an
equivalent option substituted by the successor corporation or a Parent or Subsidiary of the
successor corporation. In the event that the successor corporation refuses to assume or
substitute for this Option, the Optionee shall fully vest in and have the right to exercise
this Option as to all of the Optioned Shares, including Optioned Shares for which this
Option is not otherwise exercisable. If an Option becomes fully vested and exercisable in
lieu of assumption or substitution in the event of a Corporate Transaction, the
Administrator shall notify the Optionee in writing or electronically that this Option shall
be fully vested and exercisable for a period of fifteen (15)&nbsp;days from the date of such
notice, and this Option shall terminate upon the expiration of such period.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) This Option, to the extent it is assumed pursuant to this Paragraph&nbsp;3(a), shall be
appropriately adjusted, immediately after the Corporate Transaction, to apply to the number
and class of securities which would have been issuable to the Optionee in consummation of
such Corporate Transaction had this Option been exercised immediately prior to such
Corporate Transaction. Appropriate adjustments to reflect such transaction shall also be
made to the Exercise Price under each outstanding Option, provided the aggregate Exercise
Price payable for such securities shall remain the same.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) This Option Agreement shall not in any way affect the right of the Company to
adjust, reclassify, reorganize or otherwise change its capital or business structure or to
merge, consolidate, dissolve, liquidate or sell or transfer all or any part of its business
or assets.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv) <U>Method of Exercise</U>. This Option is exercisable through E*Trade Optionslink. The
Optionee will receive a welcome kit from E*Trade explaining this service. No Shares shall be
issued pursuant to the exercise of this Option unless such issuance and exercise complies with
Applicable Laws. Assuming such compliance, for income tax purposes the purchased Shares shall be
considered transferred to the Optionee on the date this Option is exercised with respect to such
purchased Shares.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v) <U>Method of Payment</U>. Payment of the aggregate Exercise Price shall made through
E*Trade and may be by any of the following, or a combination thereof, at the election of the
Optionee:




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b. cash;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) check;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) consideration received through a special sale and remittance procedure pursuant to
which Optionee (or any other person or persons exercising the Option) shall concurrently
provide irrevocable instructions (i)&nbsp;to E*Trade to effect the immediate sale of the
purchased Optioned Shares and remit to the Company, out of the sale proceeds available on
the settlement date, sufficient funds to cover the aggregate Exercise Price payable for the
purchased Optioned Shares plus all applicable Federal,


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<P align="left" style="margin-left:3%; font-size: 10pt">state and local income and employment
or other taxes required to be withheld by the Company by reason of such exercise and (ii)&nbsp;to
the Company to deliver the certificates for the purchased Optioned Shares directly to
E*Trade in order to complete the sale; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) other Shares which, in the case of Shares acquired directly or indirectly from the
Company, (i)&nbsp;have been owned by the Optionee for more than six (6)&nbsp;months on the date of
surrender, and (ii)&nbsp;have a Fair Market Value on the date of surrender equal to the aggregate
exercise price of the Optioned Shares for which this Option is exercised.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c)&nbsp;Non-Transferability of Option. This Option may not be transferred in any manner otherwise
than by will or by the laws of descent or distribution and may be exercised during the lifetime of
Optionee only by the Optionee. However, Optionee may designate one or more persons as the
beneficiary or beneficiaries of this Option, and this Option shall, in accordance with such
designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee&#146;s
death with holding this Option. Such beneficiary or beneficiaries shall take the transferred
option subject to all the terms and conditions of this Agreement, including (without limitation)
the limited time period during which this Option may be exercised following Optionee&#146;s death. The
terms of the Plan and this Option Agreement shall be binding upon the executors, administrators,
heirs, beneficiaries, successors and assigns of the Optionee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d)&nbsp;Term of Option. This Option shall have a maximum term of ten (10)&nbsp;years measured from the
Grant Date and shall expire at the close of business on the Expiration Date, unless sooner
terminated. This Option may be exercised during such term only in accordance with the Plan and the
terms of this Option Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)&nbsp;<U><B>Adjustment in Optioned Shares</B></U>. Should any change be made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without the Company&#146;s
receipt of consideration, appropriate adjustments shall be made to (1)&nbsp;the total number and/or
class of securities subject to this Option and (2)&nbsp;the Exercise Price in order to reflect such
change and thereby preclude a dilution or enlargement of benefits hereunder; provided that the
aggregate Exercise Price shall remain the same.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f)&nbsp;Successors and Assigns. Except to the extent otherwise provided in this Option Agreement,
the provisions of this Option Agreement shall inure to the benefit of, and be binding upon, the
Company and its successors and assigns and Optionee, the legal representatives, heirs and legatees
of Optionee&#146;s estate and any beneficiaries of this Option designated by Optionee.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g)&nbsp;Notices. Any notice required to be given or delivered to the Company under the terms of
this Option Agreement shall be in writing and addressed to the Company at its principal corporate
offices. Any notice required to be given or delivered to Optionee shall be in writing and
addressed to Optionee at the address indicated below Optionee&#146;s signature line. All notices shall
be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid and
properly addressed to the party to be notified.


<P align="center" style="font-size: 10pt">19
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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h)&nbsp;Entire Agreement; Construction; Governing Law. The Plan is incorporated herein by
reference. The Plan and this Option Agreement constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Optionee with respect to the subject matter hereof, and may not be
modified adversely to the Optionee&#146;s interest except by means of a writing signed by the Company
and Optionee. Subject to Section 4(c) of the Plan, in the event of a conflict between the terms
and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and
conditions of the Plan shall prevail. This agreement is governed by the internal substantive laws,
but not the choice of law rules, of California.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;IMPAIRMENT OF RIGHTS.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOTHING IN THIS OPTION AGREEMENT OR IN THE PLAN SHALL INTERFERE WITH OR OTHERWISE RESTRICT IN
ANY WAY THE RIGHTS OF THE COMPANY AND THE COMPANY&#146;S STOCKHOLDERS TO REMOVE OPTIONEE FROM THE BOARD
AT ANY TIME IN ACCORDANCE WITH THE PROVISIONS OF APPLICABLE LAW.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By your signature and the signature of the Company&#146;s representative below, you and the Company
agree that this Option is granted under and governed by the terms and conditions of the Plan and
this Option Agreement. Optionee has reviewed the Plan and this Option Agreement in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and
fully understands all provisions of the Plan and Option Agreement. Optionee hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the Administrator upon
any questions relating to the Plan and Option Agreement. Optionee further agrees to notify the
Company upon any change in the residence address indicated below.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">OPTIONEE:
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">ILLUMINA, INC.</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Print Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px; border-top: 1px solid #000000">Residence Address</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>

<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px; border-top: 1px solid #000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<P align="center" style="font-size: 10pt"><U>APPENDIX</U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following definitions shall be in effect under this Option Agreement:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Administrator</U>&#148; means the Board of Directors of the Company or any of committee of
Directors appointed by the Board of Directors of the Company as shall be administering the Plan, in
accordance with Section&nbsp;4 of the Plan.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Applicable Laws</U>&#148; means the requirements relating to the administration of stock
option plans, the grant of options and the issuance of stock under U. S. state corporate laws, U.S.
federal and state securities laws, the Code, any Nasdaq National Market, stock exchange or
quotation system on which the Common Stock is listed or quoted and the applicable laws of any other
country or jurisdiction where Options are granted under the Plan, as such laws, rules, regulations
and requirements shall be in place from time to time.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Code</U>&#148; means the Internal Revenue Code of 1986, as amended.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Common Stock</U>&#148; means the common stock of the Company.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Company</U>&#148; means Illumina, Inc., a Delaware corporation.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Consultant</U>&#148; means any natural person, including an advisor, engaged by the Company or
a Parent or Subsidiary to render services to such entity.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Corporate Transaction</U>&#148; means any of the following, unless the Administrator provides
otherwise:




<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) any merger or consolidation in which the Company shall not be the surviving entity
(or survives only as a subsidiary of another entity whose stockholders did not own all or
substantially all of the Common Stock in substantially the same proportions as immediately
prior to such transaction),



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) the sale of all or substantially all of the Company&#146;s assets to any other person or
entity (other than a wholly-owned subsidiary),



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) the acquisition of beneficial ownership of a controlling interest (including,
without limitation, power to vote) the outstanding shares of Common Stock by any person or
entity (including a &#147;group&#148; as defined by or under Section&nbsp;13(d)(3) of the Securities
Exchange Act of 1934, as amended),



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) a contested election of Directors, as a result of which or in connection with which
the persons who were Directors before such election or their nominees (the &#147;<U>Incumbent
Directors</U>&#148;) cease to constitute a majority of the Board; provided however that if the
election, or nomination for election by the Company&#146;s stockholders, of any new director was
approved by a vote of at least fifty percent (50%)


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<P align="left" style="margin-left:3%; font-size: 10pt">of the Incumbent Directors, such new
Director shall be considered as an Incumbent Director, or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) any other event specified by the Board or a Committee, regardless of whether at the
time an Option is granted or thereafter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U><B>Disability</B></U>&#148; means total and permanent disability as defined in Section&nbsp;22(e)(3) of
the Code.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Employee</U>&#148; means any person employed by the Company or any Parent or Subsidiary of the
Company. An Employee shall not be deemed to cease Employee status by reason of (i)&nbsp;any leave of
absence approved by the Company or (ii)&nbsp;transfers between locations of the Company or between the
Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock Options, no
such leave may exceed ninety days, unless reemployment upon expiration of such leave is guaranteed
by statute or contract. If reemployment upon expiration of a leave of absence approved by the
Company is not so guaranteed, then three (3)&nbsp;months following the 91<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day of such leave
any Incentive Stock Option held by the Optionee shall cease to be treated as an Incentive Stock
Option and shall be treated for tax purposes as a Nonstatutory Stock Option. Neither service as
Director nor payment of a director&#146;s fee by the Company shall be sufficient to constitute
&#147;employment&#148; by the Company.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Exercise Price</U>&#148; means the price per Share that the Optionee shall be required to pay
in order to purchase Shares pursuant to an exercise of his or her Option.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Expiration Date</U>&#148; means the date set forth in the Notice of Grant, which is the date
upon which this Option expires, if not terminated earlier in accordance with this Option Agreement
and the Plan.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Fair Market Value</U>&#148; means, as of any date, the value of Common Stock determined as
follows:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;If the Common Stock is listed on any established stock exchange or traded on a national
market system, including without limitation the Nasdaq National Market or the Nasdaq SmallCap
Market of The Nasdaq Stock Market, the Fair Market Value of a Share shall be the closing selling
price for the Common Stock (or the closing bid, if no sales were reported) as quoted on such
exchange or system on the day of determination, as reported in <I>The Wall Street Journal </I>or such
other source as the Administrator deems reliable;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;If the Common Stock is regularly quoted by a recognized securities dealer but selling
prices are not reported, the Fair Market Value of a Share shall be the mean between the high bid
and low asked prices for the Common Stock on the day of determination, as reported in <I>The Wall
Street Journal </I>or such other source as the Administrator deems reliable; or


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;In the absence of an established market for the Common Stock, the Fair Market Value
shall be determined in good faith by the Administrator.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Grant Date</U>&#148; means the date set forth in the Notice of Grant as the date on which the
Administrator granted this Option.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Incentive Stock Option</U>&#148; means an Option intended to qualify as an incentive stock
option within the meaning of Section&nbsp;422 of the Code and the regulations promulgated thereunder.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Nonstatutory Stock Option</U>&#148; means an Option not intended to qualify as an Incentive
Stock Option and/or as designated in the applicable Option Agreement.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Notice of Grant</U>&#148; means the notice evidencing certain terms and conditions of this
Option as set forth in Part&nbsp;I of this document.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Option</U>&#148; means this stock option granted to Optionee pursuant to the Plan.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Option Agreement</U>&#148; means this agreement between the Company and an Optionee evidencing
the terms and conditions of this Option grant set forth in Part&nbsp;II of this document. The Option
Agreement is subject to the terms and conditions of the Plan.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Optioned Shares</U>&#148; means the Shares subject to this Option.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Optionee</U>&#148; means the individual to whom this Option is granted under the Plan and
named in the Notice of Grant.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Parent</U>&#148; means a &#147;parent corporation,&#148; whether now or hereafter existing, as defined
in Section 424(e) of the Code or any successor provision.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Plan</U>&#148; means the Illumina, Inc. 2005 Stock and Incentive Plan.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Share</U>&#148; means a share of the Common Stock, as adjusted in accordance with Section&nbsp;17
of the Plan.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&#147;<U>Subsidiary</U>&#148; means a &#147;subsidiary corporation,&#148; whether now or hereafter existing, as
defined in Section 424(f) of the Code or any successor provision.



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<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="center" style="font-size: 10pt"><B>ILLUMINA, INC.</B>



<P align="center" style="font-size: 10pt"><B>2005 STOCK AND INCENTIVE PLAN</B>



<P align="center" style="font-size: 10pt"><U><B>STOCK OPTION AGREEMENT</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;All capitalized terms shall have the meaning assigned to them in the attached Appendix.



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">

<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="3%" nowrap align="left">1.</TD>
    <TD width="1%">&nbsp;</TD>
    <TD>NOTICE OF GRANT</TD>
</TR>

</TABLE>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You have been granted an option to purchase shares of Common Stock of the Company, subject to
the terms and conditions of the Plan and this Option Agreement, as follows:


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="78%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap><U>Name of Optionee</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="10%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="80%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Grant Date</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="65%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Vesting Commencement Date</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->

<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="22%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="68%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Exercise Price per Share</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="34%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="56%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Number of Shares Subject to the Option</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="5%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="47%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" nowrap>Type of Option:
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Incentive Stock Option</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom"><!-- Blank Space -->
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Nonstatutory Stock Option</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="8%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="75%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><U>Expiration Date</U>:</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD colspan="1" valign="top" align="left" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;<U>Vesting Schedule</U>: Subject to accelerated vesting as set forth below, this
Option may be exercised, in whole or in part, in accordance with the following schedule:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On the first year anniversary of the Vesting Commencement Date of this Option,
<U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of the Optioned Shares shall become exercisable, subject to Optionee&#146;s
continuing to be a Service Provider on such date. An additional <U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U><U>&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;</U> of the Optioned
Shares shall become exercisable each full month thereafter, subject to Optionee&#146;s continuing
to be a Service Provider on such date.




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<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;27.&nbsp;AGREEMENT


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(a) <U><B>Grant of Option</B></U>.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;The Optionee is hereby granted an Option to purchase the number of Shares set forth in the
Notice of Grant at the per share Exercise Price set forth in the Notice of Grant, subject to the
terms and conditions of the Plan, which is incorporated herein by reference.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;If this Option is designated as an Incentive Stock Option in the Notice of Grant section
of this Agreement, then no installment of Optioned Shares for which this Option becomes exercisable
shall qualify for favorable tax treatment as an Incentive Stock Option if (and to the extent) the
aggregate Fair Market Value (determined at the Grant Date) of the Optioned Shares for which such
installment first becomes exercisable hereunder would, when added to the aggregate value
(determined as of the respective date or dates of grant) of the Optioned Shares or other securities
for which this Option or any other Incentive Stock Options granted to Optionee prior to the Grant
Date (whether under the Plan or any other option plan of the Company or any Parent or Subsidiary)
first become exercisable during the same calendar year, exceed One Hundred Thousand Dollars
($100,000) in the aggregate. Should such One Hundred Thousand Dollar ($100,000) limitation be
exceeded in any calendar year, this Option shall nevertheless become exercisable for the excess
Optioned Shares in such calendar year as a Nonstatutory Stock Option.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(b) <U><B>Exercise of Option</B></U>.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i)&nbsp;<U><B>Right to Exercise</B></U>. This Option shall vest and become exercisable in one or more
installments in accordance with the vesting schedule set out in the Notice of Grant and the
applicable provisions of the Plan and this Option Agreement. As this Option becomes vested and
exercisable for such installments, those installments shall accumulate, and this Option shall
remain vested and exercisable for the accumulated installments until the Expiration Date or sooner
termination under this Paragraph&nbsp;B. In no event may this Option be exercised for any fractional
shares.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(ii)&nbsp;<U><B>Post-Service Exercisability</B></U>.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) Should Optionee cease to be a Service Provider for any reason (other than
death or Disability) while holding this Option, then Optionee shall have a period of
three (3)&nbsp;months (commencing with the date of such cessation of service) during
which to exercise this Option.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) Should Optionee die while holding this Option, then the personal
representative of Optionee&#146;s estate or the person or persons to whom this Option is
transferred pursuant to Optionee&#146;s will or the laws of inheritance shall have the
right to exercise this Option. However, if Optionee has designated one or more
beneficiaries of this Option in a form acceptable to the Administrator, then those
persons shall have the exclusive right to exercise this Option following Optionee&#146;s
death. Any such right to exercise this Option shall lapse, and this Option shall
cease to be outstanding, upon the expiration of the twelve (12)-month period
measured from the date of Optionee&#146;s death.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(C) Should Optionee cease to be a Service Provider by reason of Disability
while holding this Option, then Optionee shall have a period of twelve (12)&nbsp;months
(commencing with the date of such cessation of service) during which to exercise
this Option.


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<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(D)
During the limited period of post-service exercisability, this Option may not
be exercised in the aggregate for more than the number of Optioned Shares for which
this Option is exercisable at the time the Optionee ceases to be a Service Provider.
Upon the expiration of such limited exercise period or (if earlier) upon the
Expiration Date, this Option shall terminate and cease to be outstanding for any
exercisable Optioned Shares for which this Option has not been exercised. However,
this Option shall, immediately upon Optionee&#146;s cessation of Service Provider status
for any reason, terminate and cease to be outstanding with respect to any Optioned
Shares for which this Option is not otherwise at that time exercisable.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(E) In no event shall this Option be exercisable at any time after the
Expiration Date.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iii)&nbsp;<U><B>Special Acceleration of Option</B>.</U>



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a. In the event of a Corporate Transaction, the Board or Committee may, in its
discretion, (i)&nbsp;provide for the assumption or substitution of, or adjustment to,
this Option; (ii)&nbsp;accelerate the vesting of this Option; and/or (iii)&nbsp;provide for
termination of this Option as a result of the Corporate Transaction on such terms
and conditions as it deems appropriate, including providing for the cancellation of
this Option for a cash payment to Optionee. If this Option becomes fully vested and
exercisable in the event of a Corporate Transaction, the Administrator shall notify
the Optionee in writing or electronically that this Option shall be fully vested and
exercisable for a period of fifteen (15)&nbsp;days from the date of such notice, and this
Option shall terminate upon the expiration of such period.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(A) This Option, to the extent it is assumed pursuant to this Paragraph&nbsp;3(a),
shall be appropriately adjusted, immediately after the Corporate Transaction, to
apply to the number and class of securities which would have been issuable to the
Optionee in consummation of such Corporate Transaction had this Option been
exercised immediately prior to such Corporate Transaction. Appropriate adjustments
to reflect such transaction shall also be made to the Exercise Price under each
outstanding Option, provided the aggregate Exercise Price payable for such
securities shall remain the same.



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(B) This Option Agreement shall not in any way affect the right of the Company
to adjust, reclassify, reorganize or otherwise change its capital or business
structure or to merge, consolidate, dissolve, liquidate or sell or transfer all or
any part of its business or assets.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(iv)&nbsp;<U><B>Method of Exercise</B></U>. This Option is exercisable through E*Trade Optionslink. The
Optionee will receive a welcome kit from E*Trade explaining this service. No Shares shall be
issued pursuant to the exercise of this Option unless such issuance and exercise complies with
Applicable Laws. Assuming such compliance, for income tax purposes the


<P align="center" style="font-size: 10pt">26
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<DIV style="font-family: 'Times New Roman',Times,serif">
<P align="left" style="font-size: 10pt">purchased Shares shall be
considered transferred to the Optionee on the date this Option is exercised with respect to such
purchased Shares.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(v)&nbsp;<U><B>Method of Payment</B></U>. Payment of the aggregate Exercise Price shall made through
E*Trade and may be by any of the following, or a combination thereof, at the election of the
Optionee:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d. cash;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e. check;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;f. consideration received through a special sale and remittance procedure
pursuant to which Optionee (or any other person or persons exercising the Option)
shall concurrently provide irrevocable instructions (i)&nbsp;to E*Trade to effect the
immediate sale of the purchased Optioned Shares and remit to the Company, out of the
sale proceeds available on the settlement date, sufficient funds to cover the
aggregate Exercise Price payable for the purchased Optioned Shares plus all
applicable Federal, state and local income and employment or other taxes required to
be withheld by the Company by reason of such exercise and (ii)&nbsp;to the Company to
deliver the certificates for the purchased Optioned Shares directly to E*Trade in
order to complete the sale; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;g. other Shares which, in the case of Shares acquired directly or indirectly
from the Company, (i)&nbsp;have been owned by the Optionee for more than six (6)&nbsp;months
on the date of surrender, and (ii)&nbsp;have a Fair Market Value on the date of surrender
equal to the aggregate exercise price of the Optioned Shares for which this Option
is exercised.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(c) <U><B>Non-Transferability of Option</B></U>. This Option may not be transferred in any manner
otherwise than by will or by the laws of descent or distribution and may be exercised during the
lifetime of Optionee only by the Optionee. However, Optionee may designate one or more persons as
the beneficiary or beneficiaries of this Option, and this Option shall, in accordance with such
designation, automatically be transferred to such beneficiary or beneficiaries upon the Optionee&#146;s
death with holding this Option. Such beneficiary or beneficiaries shall take the transferred
option subject to all the terms and conditions of this Agreement, including (without limitation)
the limited time period during which this Option may be exercised following Optionee&#146;s death. The
terms of the Plan and this Option Agreement shall be binding upon the executors, administrators,
heirs, beneficiaries, successors and assigns of the Optionee.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(d) <U><B>Term of Option</B></U>. This Option shall have a maximum term of ten (10)&nbsp;years measured
from the Grant Date and shall expire at the close of business on the Expiration Date, unless sooner
terminated. This Option may be exercised during such term only in accordance with the Plan and the
terms of this Option Agreement.



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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(e)
<U><B>Adjustment in Optioned Shares</B></U>. Should any change be made to the Common Stock by
reason of any stock split, stock dividend, recapitalization, combination of shares, exchange of
shares or other change affecting the outstanding Common Stock as a class without the Company&#146;s
receipt of consideration, appropriate adjustments shall be made to (1)&nbsp;the total number and/or
class of securities subject to this Option and (2)&nbsp;the Exercise Price in order to reflect such
change and thereby preclude a dilution or enlargement of benefits hereunder; provided that the
aggregate Exercise Price shall remain the same.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(f) <U><B>Notice of Disqualifying Disposition of Shares</B></U>. If this Option is designated an
Incentive Stock Option in the Notice of Grant section of this Agreement, then the Optionee shall,
upon any sale or other disposition of the Optioned Shares effected on or before the later of two
years after the Grant Date or one year after the exercise date, immediately notify the Company in
writing of such sale or disposition. The Optionee agrees that he or she may be subject to income
tax withholding by the Company on the compensation income recognized from such early disposition of
the Optioned Shares acquired pursuant to this Option by payment in cash or out of the current
earnings paid to the Optionee.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(g) <U><B>Successors and Assigns</B></U>. Except to the extent otherwise provided in this Option
Agreement, the provisions of this Option Agreement shall inure to the benefit of, and be binding
upon, the Company and its successors and assigns and Optionee, the legal representatives, heirs and
legatees of Optionee&#146;s estate and any beneficiaries of this Option designated by Optionee.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(h) <U><B>Notices</B></U>. Any notice required to be given or delivered to the Company under the
terms of this Option Agreement shall be in writing and addressed to the Company at its principal
corporate offices. Any notice required to be given or delivered to Optionee shall be in writing
and addressed to Optionee at the address indicated below Optionee&#146;s signature line. All notices
shall be deemed effective upon personal delivery or upon deposit in the U.S. mail, postage prepaid
and properly addressed to the party to be notified.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(i) <U><B>Entire Agreement; Construction; Governing Law</B></U>. The Plan is incorporated herein by
reference. The Plan and this Option Agreement constitute the entire agreement of the parties with
respect to the subject matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and Optionee with respect to the subject matter hereof, and may not be
modified adversely to the Optionee&#146;s interest except by means of a writing signed by the Company
and Optionee. Subject to Section 4(c) of the Plan, in the event of a conflict between the terms
and conditions of the Plan and the terms and conditions of this Option Agreement, the terms and
conditions of the Plan shall prevail. This agreement is governed by the internal substantive laws,
but not the choice of law rules, of California.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(j) <U><B>NO GUARANTEE OF CONTINUED SERVICE</B></U>. OPTIONEE ACKNOWLEDGES AND AGREES THAT THE
VESTING OF SHARES PURSUANT TO THE VESTING SCHEDULE HEREOF IS EARNED ONLY BY CONTINUING AS A SERVICE
PROVIDER AT THE WILL OF THE COMPANY (AND NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED AN
OPTION OR PURCHASING SHARES HEREUNDER). OPTIONEE FURTHER ACKNOWLEDGES AND AGREES THAT THIS



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<P align="left" style="font-size: 10pt">AGREEMENT, THE TRANSACTIONS CONTEMPLATED HEREUNDER AND THE VESTING SCHEDULE SET FORTH HEREIN DO NOT
CONSTITUTE AN EXPRESS OR IMPLIED PROMISE OF CONTINUED ENGAGEMENT AS A SERVICE PROVIDER FOR THE
VESTING PERIOD, FOR ANY PERIOD, OR AT ALL, AND SHALL NOT INTERFERE WITH OPTIONEE&#146;S RIGHT OR THE
COMPANY&#146;S RIGHT TO TERMINATE OPTIONEE&#146;S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR
WITHOUT CAUSE.



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;By your signature and the signature of the Company&#146;s representative below, you and the Company
agree that this Option is granted under and governed by the terms and conditions of the Plan and
this Option Agreement. Optionee has reviewed the Plan and this Option Agreement in their entirety,
has had an opportunity to obtain the advice of counsel prior to executing this Option Agreement and
fully understands all provisions of the Plan and Option Agreement. Optionee hereby agrees to
accept as binding, conclusive and final all decisions or interpretations of the Administrator upon
any questions relating to the Plan and Option Agreement. Optionee further agrees to notify the
Company upon any change in the residence address indicated below.


<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="18%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="40%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px"><B>OPTIONEE:</B>
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top"><B>ILLUMINA, INC.</B></TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Signature
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">By</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR style="font-size: 1px">
    <TD valign="top" style="border-top: 1px solid #000000"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top" style="border-top: 1px solid #000000">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">Print Name
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">Title</TD>
</TR>
<TR>
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>


<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px; border-top: 1px solid #000000">Residence Address</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD valign="top"><DIV style="margin-left:0px; text-indent:-0px; border-top: 1px solid #000000">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="top">&nbsp;</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


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<P align="center" style="font-size: 10pt"><U><B>APPENDIX</B></U>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The following definitions shall be in effect under this Option Agreement:



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(1)&nbsp;&#147;<U><B>Administrator</B></U>&#148; means the Board of Directors of the Company or any of committee of
Directors appointed by the Board of Directors of the Company as shall be administering the Plan, in
accordance with Section&nbsp;4 of the Plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(2)&nbsp;&#147;<U><B>Applicable Laws</B></U>&#148; means the requirements relating to the administration of stock
option plans, the grant of options and the issuance of stock under U. S. state corporate laws, U.S.
federal and state securities laws, the Code, any Nasdaq National Market, stock exchange or
quotation system on which the Common Stock is listed or quoted and the applicable laws of any other
country or jurisdiction where Options are granted under the Plan, as such laws, rules, regulations
and requirements shall be in place from time to time.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(3)&nbsp;&#147;<U><B>Code</B></U>&#148; means the Internal Revenue Code of 1986, as amended.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(4)&nbsp;&#147;<U><B>Common Stock</B></U>&#148; means the common stock of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(5)&nbsp;&#147;<U><B>Company</B></U>&#148; means Illumina, Inc., a Delaware corporation.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(6)&nbsp;&#147;<U><B>Consultant</B></U>&#148; means any natural person, including an advisor, engaged by the
Company or a Parent or Subsidiary to render services to such entity.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(7)&nbsp;&#147;<U><B>Corporate Transaction</B></U>&#148; means any of the following, unless the Administrator
provides otherwise:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) any merger or consolidation in which the Company shall not be the surviving
entity (or survives only as a subsidiary of another entity whose stockholders did
not own all or substantially all of the Common Stock in substantially the same
proportions as immediately prior to such transaction),



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) the sale of all or substantially all of the Company&#146;s assets to any other
person or entity (other than a wholly-owned subsidiary),



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) the acquisition of beneficial ownership of a controlling interest
(including, without limitation, power to vote) the outstanding shares of Common
Stock by any person or entity (including a &#147;group&#148; as defined by or under Section
13(d)(3) of the Securities Exchange Act of 1934, as amended),



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;d) a contested election of Directors, as a result of which or in connection
with which the persons who were Directors before such election or their nominees
(the &#147;<U>Incumbent Directors</U>&#148;) cease to constitute a majority of the Board;
provided however that if the election, or nomination for election by the Company&#146;s
stockholders, of any new director was approved by a vote of at least fifty percent
(50%) of the Incumbent Directors, such new Director shall be considered as an
Incumbent Director, or


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<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;e) any other event specified by the Board or a Committee, regardless of whether
at the time this Option is granted or thereafter.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(8)&nbsp;&#147;<U><B>Disability</B></U>&#148; means total and permanent disability as defined in Section&nbsp;22(e)(3)
of the Code.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(9)&nbsp;&#147;<U><B>Employee</B></U>&#148; means any person employed by the Company or any Parent or Subsidiary of
the Company. An Employee shall not be deemed to cease Employee status by reason of (i)&nbsp;any leave
of absence approved by the Company or (ii)&nbsp;transfers between locations of the Company or between
the Company, its Parent, any Subsidiary, or any successor. For purposes of Incentive Stock
Options, no such leave may exceed ninety days, unless reemployment upon expiration of such leave is
guaranteed by statute or contract. If reemployment upon expiration of a leave of absence approved
by the Company is not so guaranteed, then three (3)&nbsp;months following the 91<SUP style="font-size: 85%; vertical-align: text-top">st</SUP> day of
such leave any Incentive Stock Option held by the Optionee shall cease to be treated as an
Incentive Stock Option and shall be treated for tax purposes as a Nonstatutory Stock Option.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(10)&nbsp;&#147;<U><B>Exercise Price</B></U>&#148; means the price per Share that the Optionee shall be required to
pay in order to purchase Shares pursuant to an exercise of his or her Option.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(11)&nbsp;&#147;<U><B>Expiration Date</B></U>&#148; means the date set forth in the Notice of Grant, which is the
date upon which this Option expires, if not terminated earlier in accordance with this Option
Agreement and the Plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(12)&nbsp;&#147;<U><B>Fair Market Value</B></U>&#148; means, as of any date, the value of Common Stock determined
as follows:



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;a) If the Common Stock is listed on any established stock exchange or traded on
a national market system, including without limitation the Nasdaq National Market or
the Nasdaq SmallCap Market of The Nasdaq Stock Market, the Fair Market Value of a
Share shall be the closing selling price for the Common Stock (or the closing bid,
if no sales were reported) as quoted on such exchange or system on the day of
determination, as reported in <I>The Wall Street Journal </I>or such other source as the
Administrator deems reliable;



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;b) If the Common Stock is regularly quoted by a recognized securities dealer
but selling prices are not reported, the Fair Market Value of a Share shall be the
mean between the high bid and low asked prices for the Common Stock on the day of
determination, as reported in <I>The Wall Street Journal </I>or such other source as the
Administrator deems reliable; or



<P align="left" style="margin-left:3%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;c) In the absence of an established market for the Common Stock, the Fair
Market Value shall be determined in good faith by the Administrator.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(13)&nbsp;&#147;<U><B>Grant Date</B></U>&#148; means the date set forth in the Notice of Grant as the date on which
the Administrator granted this Option.


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<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(14)&nbsp;&#147;<U><B>Incentive Stock Option</B></U>&#148; means an Option intended to qualify as an incentive
stock option within the meaning of Section&nbsp;422 of the Code and the regulations promulgated
thereunder.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(15)&nbsp;&#147;<U><B>Nonstatutory Stock Option</B></U>&#148; means an Option not intended to qualify as an
Incentive Stock Option and/or as designated in the applicable Option Agreement.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(16)&nbsp;&#147;<U><B>Notice of Grant</B></U>&#148; means the notice evidencing certain terms and conditions of
this Option as set forth in Part&nbsp;I of this document.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(17)&nbsp;&#147;<U><B>Option</B></U>&#148; means this stock option granted to Optionee pursuant to the Plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(18)&nbsp;&#147;<U><B>Option Agreement</B></U>&#148; means this agreement between the Company and an Optionee
evidencing the terms and conditions of this Option grant set forth in Part&nbsp;II of this document.
The Option Agreement is subject to the terms and conditions of the Plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(19)&nbsp;&#147;<U><B>Optioned Shares</B></U>&#148; means the Shares subject to this Option.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(20)&nbsp;&#147;<U><B>Optionee</B></U>&#148; means the individual to whom this Option is granted under the Plan and
named in the Notice of Grant.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(21)&nbsp;&#147;<U><B>Parent</B></U>&#148; means a &#147;parent corporation,&#148; whether now or hereafter existing, as
defined in Section 424(e) of the Code or any successor provision.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(22)&nbsp;&#147;<U><B>Plan</B></U>&#148; means the Illumina, Inc. 2005 Stock and Incentive Plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(23)&nbsp;&#147;<U><B>Service Provider</B></U>&#148; means (i)&nbsp;an individual rendering services to the Company or
any Parent or Subsidiary of the Company in the capacity of an Employee or Consultant or (ii)&nbsp;an
individual serving as a member of the Board of Directors of the Company.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(24)&nbsp;&#147;<U><B>Share</B></U>&#148; means a share of the Common Stock, as adjusted in accordance with Section
17 of the Plan.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;(25)&nbsp;&#147;<U><B>Subsidiary</B></U>&#148; means a &#147;subsidiary corporation,&#148; whether now or hereafter existing,
as defined in Section 424(f) of the Code or any successor provision.



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