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[ICANN LOGO]                                   REGISTRAR ACCREDITATION
                                                      AGREEMENT

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This REGISTRAR ACCREDITATION AGREEMENT ("Agreement") is by and between the
Internet Corporation for Assigned Names and Numbers ("ICANN"), a California
non-profit, public benefit corporation, and REGISTER.COM, INC., a Delaware
Corporation ("Registrar"), and shall be deemed made on 27 April 2005 at Los
Angeles, California, USA.

1 DEFINITIONS. For purposes of this Agreement, the following definitions shall
               apply:

    1.1    "Accredit" means to identify and set minimum standards for the
           performance of registration functions, to recognize persons or
           entities meeting those standards, and to enter into an accreditation
           agreement that sets forth the rules and procedures applicable to the
           provision of Registrar Services.

    1.2    "DNS" refers to the Internet domain-name system.

    1.3    The "Effective Date" is 27 April 2005.

    1.4    The "Expiration Date" is 26 April 2010.

    1.5    "ICANN" refers to the Internet Corporation for Assigned Names and
           Numbers, a party to this Agreement.

    1.6    "Personal Data" refers to data about any identified or identifiable
           natural person.

    1.7    "Registered Name" refers to a domain name within the domain of a TLD
           that is the subject of an appendix to this Agreement, whether
           consisting of two or more (e.g., john.smith.name) levels, about which
           a TLD Registry Operator (or an affiliate engaged in providing
           Registry Services) maintains data in a Registry Database, arranges
           for such maintenance, or derives revenue from such maintenance. A
           name in a Registry Database may be a Registered Name even though it
           does not appear in a zone file (e.g., a registered but inactive
           name).

    1.8    "Registered Name Holder" means the holder of a Registered Name.

    1.9    The word "Registrar," when appearing with an initial capital letter,
           refers to Register.com, Inc., a party to this Agreement.

    1.10   The word "registrar," when appearing without an initial capital
           letter, refers to a person or entity that contracts with Registered
           Name Holders and with a Registry Operator and collects registration
           data about the Registered Name Holders and submits registration
           information for entry in the Registry Database.

    1.11   "Registrar Services" means services provided by a registrar in
           connection with a TLD as to which it has an agreement with the TLD's
           Registry Operator, and includes contracting with Registered Name
           Holders, collecting registration data

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           about the Registered Name Holders, and submitting registration
           information for entry in the Registry Database.

    1.12   "Registry Data" means all Registry Database data maintained in
           electronic form, and shall include TLD Zone-File Data, all data used
           to provide Registry Services and submitted by registrars in
           electronic form, and all other data used to provide Registry Services
           concerning particular domain name registrations or nameservers
           maintained in electronic form in a Registry Database.

    1.13   "Registry Database" means a database comprised of data about one or
           more DNS domain names within the domain of a registry that is used to
           generate either DNS resource records that are published
           authoritatively or responses to domain-name availability lookup
           requests or Whois queries, for some or all of those names.

    1.14   A "Registry Operator" is the person or entity then responsible, in
           accordance with an agreement between ICANN (or its assignee) and that
           person or entity (those persons or entities) or, if that agreement is
           terminated or expires, in accordance with an agreement between the US
           Government and that person or entity (those persons or entities), for
           providing Registry Services for a specific TLD.

    1.15   "Registry Services," with respect to a particular TLD, shall have the
           meaning defined in the agreement between ICANN and the Registry
           Operator for that TLD.

    1.16   A Registered Name is "sponsored" by the registrar that placed the
           record associated with that registration into the registry.
           Sponsorship of a registration may be changed at the express direction
           of the Registered Name Holder or, in the event a registrar loses
           accreditation, in accordance with then-current ICANN specifications
           and policies.

    1.17   "Term of this Agreement" begins on the Effective Date and continues
           to the earlier of (a) the Expiration Date, or (b) termination of this
           Agreement.

    1.18   A "TLD" is a top-level domain of the DNS.

    1.19   "TLD Zone-File Data" means all data contained in a DNS zone file for
           the registry, or for any subdomain for which Registry Services are
           provided and that contains Registered Names, as provided to
           nameservers on the Internet.

2 ICANN OBLIGATIONS.

    2.1    Accreditation. During the Term of this Agreement, Registrar is hereby
           accredited by ICANN to act as a registrar (including to insert and
           renew registration of Registered Names in the Registry Database) for
           the TLD(s) that are the subject of appendices to this Agreement
           according to Subsection 5.5.

    2.2    Registrar Use of ICANN Name and Website. ICANN hereby grants to
           Registrar a non-exclusive, worldwide, royalty-free license during the
           Term of this Agreement (a) to state that it is accredited by ICANN as
           a registrar for each TLD that is the subject of an appendix to this
           Agreement and (b) to link to pages and documents within the ICANN web
           site. No other use of ICANN's name or

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           website is licensed hereby. This license may not be assigned or
           sublicensed by Registrar.

    2.3    General Obligations of ICANN. With respect to all matters that impact
           the rights, obligations, or role of Registrar, ICANN shall during the
           Term of this Agreement:

           2.3.1   exercise its responsibilities in an open and transparent
                   manner;

           2.3.2   not unreasonably restrain competition and, to the extent
                   feasible, promote and encourage robust competition;

           2.3.3   not apply standards, policies, procedures or practices
                   arbitrarily, unjustifiably, or inequitably and not single out
                   Registrar for disparate treatment unless justified by
                   substantial and reasonable cause; and

           2.3.4   ensure, through its reconsideration and independent review
                   policies, adequate appeal procedures for Registrar, to the
                   extent it is adversely affected by ICANN standards, policies,
                   procedures or practices.

3 REGISTRAR OBLIGATIONS.

    3.1    Obligations to Provide Registrar Services. During the Term of this
           Agreement, Registrar agrees that it will operate as a registrar for
           each TLD for which it is accredited by ICANN in accordance with this
           Agreement.

    3.2    Submission of Registered Name Holder Data to Registry. During the
           Term of this Agreement:

           3.2.1   As part of its registration of Registered Names in a TLD as
                   to which it is accredited, Registrar shall submit to, or
                   shall place in the Registry Database operated by, the
                   Registry Operator for the TLD the following data elements:

                   3.2.1.1   The name of the Registered Name being registered;

                   3.2.1.2   The IP addresses of the primary nameserver and
                             secondary nameserver(s) for the Registered Name;

                   3.2.1.3   The corresponding names of those nameservers;

                   3.2.1.4   Unless automatically generated by the registry
                             system, the identity of the Registrar;

                   3.2.1.5   Unless automatically generated by the registry
                             system, the expiration date of the registration;
                             and

                   3.2.1.6   Any other data the Registry Operator requires be
                             submitted to it.

                   The appendix to this Agreement for a particular TLD may state
                   substitute language for Subsections 3.2.1.1 through 3.2.1.6
                   as applicable to that TLD; in that event the substitute
                   language shall

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                   replace and supersede Subsections 3.2.1.1 through 3.2.1.6
                   stated above for all purposes under this Agreement but only
                   with respect to that particular TLD.

           3.2.2   Within five (5) business days after receiving any updates
                   from the Registered Name Holder to the data elements listed
                   in Subsections 3.2.1.2, 3.1.2.3, and 3.2.1.6 for any
                   Registered Name Registrar sponsors, Registrar shall submit
                   the updated data elements to, or shall place those elements
                   in the Registry Database operated by the Registry Operator.

           3.2.3   In order to allow reconstitution of the Registry Database in
                   the event of an otherwise unrecoverable technical failure or
                   a change in the designated Registry Operator, within ten days
                   of any such request by ICANN, Registrar shall submit an
                   electronic database containing the data elements listed in
                   Subsections 3.2.1.1 through 3.2.1.6 for all active records in
                   the registry sponsored by Registrar, in a format specified by
                   ICANN, to the Registry Operator for the appropriate TLD.

    3.3    Public Access to Data on Registered Names. During the Term of this
           Agreement:

           3.3.1   At its expense, Registrar shall provide an interactive web
                   page and a port 43 Whois service providing free public
                   query-based access to upto-date (i.e., updated at least
                   daily) data concerning all active Registered Names sponsored
                   by Registrar for each TLD for which it is accredited. The
                   data accessible shall consist of elements that are designated
                   from time to time according to an ICANN adopted specification
                   or policy. Until ICANN otherwise specifies by means of an
                   ICANN adopted specification or policy, this data shall
                   consist of the following elements as contained in Registrar's
                   database:

                   3.3.1.1   The name of the Registered Name;

                   3.3.1.2   The names of the primary nameserver and secondary
                             nameserver(s) for the Registered Name;

                   3.3.1.3   The identity of Registrar (which may be provided
                             through Registrar's website);

                   3.3.1.4   The original creation date of the registration;

                   3.3.1.5   The expiration date of the registration;

                   3.3.1.6   The name and postal address of the Registered Name
                             Holder;

                   3.3.1.7   The name, postal address, e-mail address, voice
                             telephone number, and (where available) fax number
                             of the technical contact for the Registered Name;
                             and

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                   3.3.1.8   The name, postal address, e-mail address, voice
                             telephone number, and (where available) fax number
                             of the administrative contact for the Registered
                             Name.

                   The appendix to this Agreement for a particular TLD may state
                   substitute language for Subsections 3.3.1.1 through 3.3.1.8
                   as applicable to that TLD; in that event the substitute
                   language shall replace and supersede Subsections 3.3.1.1
                   through 3.3.1.8 stated above for all purposes under this
                   Agreement but only with respect to that particular TLD.

           3.3.2   Upon receiving any updates to the data elements listed in
                   Subsections 3.3.1.2, 3.3.1.3, and 3.3.1.5 through 3.3.1.8
                   from the Registered Name Holder, Registrar shall promptly
                   update its database used to provide the public access
                   described in Subsection 3.3.1.

           3.3.3   Registrar may subcontract its obligation to provide the
                   public access described in Subsection 3.3.1 and the updating
                   described in Subsection 3.3.2, provided that Registrar shall
                   remain fully responsible for the proper provision of the
                   access and updating.

           3.3.4   Registrar shall abide by any ICANN specification or policy
                   established as a Consensus Policy according to Section 4 that
                   requires registrars to cooperatively implement a distributed
                   capability that provides querybased Whois search
                   functionality across all registrars. If the Whois service
                   implemented by registrars does not in a reasonable time
                   provide reasonably robust, reliable, and convenient access to
                   accurate and up-to-date data, the Registrar shall abide by
                   any ICANN specification or policy established as a Consensus
                   Policy according to Section 4 requiring Registrar, if
                   reasonably determined by ICANN to be necessary (considering
                   such possibilities as remedial action by specific
                   registrars), to supply data from Registrar's database to
                   facilitate the development of a centralized Whois database
                   for the purpose of providing comprehensive Registrar Whois
                   search capability.

           3.3.5   In providing query-based public access to registration data
                   as required by Subsections 3.3.1 and 3.3.4, Registrar shall
                   not impose terms and conditions on use of the data provided,
                   except as permitted by policy established by ICANN. Unless
                   and until ICANN establishes a different policy according to
                   Section 4, Registrar shall permit use of data it provides in
                   response to queries for any lawful purposes except to: (a)
                   allow, enable, or otherwise support the transmission by
                   e-mail, telephone, or facsimile of mass, unsolicited,
                   commercial advertising or solicitations to entities other
                   than the data recipient's own existing customers; or (b)
                   enable high volume, automated, electronic processes that send
                   queries or data to the systems of any Registry Operator or
                   ICANN-Accredited registrar, except as reasonably necessary to
                   register domain names or modify existing registrations.

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           3.3.6   In addition, Registrar shall provide third-party bulk access
                   to the data subject to public access under Subsection 3.3.1
                   under the following terms and conditions:

                   3.3.6.1   Registrar shall make a complete electronic copy of
                             the data available at least one time per week for
                             download by third parties who have entered into a
                             bulk access agreement with Registrar.

                   3.3.6.2   Registrar may charge an annual fee, not to exceed
                             US$10,000, for such bulk access to the data.

                   3.3.6.3   Registrar's access agreement shall require the
                             third party to agree not to use the data to allow,
                             enable, or otherwise support the transmission by
                             e-mail, telephone, or facsimile of mass,
                             unsolicited, commercial advertising or
                             solicitations to entities other than such third
                             party's own existing customers.

                   3.3.6.4   Registrar's access agreement shall require the
                             third party to agree not to use the data to enable
                             high-volume, automated, electronic processes that
                             send queries or data to the systems of any Registry
                             Operator or ICANNAccredited registrar, except as
                             reasonably necessary to register domain names or
                             modify existing registrations.

                   3.3.6.5   Registrar's access agreement may require the third
                             party to agree not to sell or redistribute the data
                             except insofar as it has been incorporated by the
                             third party into a valueadded product or service
                             that does not permit the extraction of a
                             substantial portion of the bulk data from the
                             value-added product or service for use by other
                             parties.

                   3.3.6.6   Registrar may enable Registered Name Holders who
                             are individuals to elect not to have Personal Data
                             concerning their registrations available for bulk
                             access for marketing purposes based on Registrar's
                             "Opt-Out" policy, and if Registrar has such a
                             policy, Registrar shall require the third party to
                             abide by the terms of that Opt-Out policy;
                             provided, however, that Registrar may not use such
                             data subject to opt-out for marketing purposes in
                             its own valueadded product or service.

           3.3.7   Registrar's obligations under Subsection 3.3.6 shall remain
                   in effect until the earlier of (a) replacement of this policy
                   with a different ICANN policy, established according to
                   Section 4, governing bulk access to the data subject to
                   public access under Subsection 3.3.1, or (b) demonstration,
                   to the satisfaction of the United States Department of
                   Commerce, that no individual or entity is able to exercise
                   market

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                   power with respect to registrations or with respect to
                   registration data used for development of value-added
                   products and services by third parties.

           3.3.8   To comply with applicable statutes and regulations and for
                   other reasons, ICANN may from time to time adopt policies and
                   specifications establishing limits (a) on the Personal Data
                   concerning Registered Names that Registrar may make available
                   to the public through a public-access service described in
                   this Subsection 3.3 and (b) on the manner in which Registrar
                   may make such data available. In the event ICANN adopts any
                   such policy, Registrar shall abide by it.

    3.4    Retention of Registered Name Holder and Registration Data.

           3.4.1   During the Term of this Agreement, Registrar shall maintain
                   its own electronic database, as updated from time to time,
                   containing data for each active Registered Name sponsored by
                   it within each TLD for which it is accredited. The data for
                   each such registration shall include the elements listed in
                   Subsections 3.3.1.1 through 3.3.1.8; the name and (where
                   available) postal address, e-mail address, voice telephone
                   number, and fax number of the billing contact; and any other
                   Registry Data that Registrar has submitted to the Registry
                   Operator or placed in the Registry Database under Subsection
                   3.2.

           3.4.2   During the Term of this Agreement and for three years
                   thereafter, Registrar (itself or by its agent(s)) shall
                   maintain the following records relating to its dealings with
                   the Registry Operator(s) and Registered Name Holders:

                   3.4.2.1   In electronic form, the submission date and time,
                             and the content, of all registration data
                             (including updates) submitted in electronic form to
                             the Registry Operator(s);

                   3.4.2.2   In electronic, paper, or microfilm form, all
                             written communications constituting registration
                             applications, confirmations, modifications, or
                             terminations and related correspondence with
                             Registered Name Holders, including registration
                             contracts; and

                   3.4.2.3   In electronic form, records of the accounts of all
                             Registered Name Holders with Registrar, including
                             dates and amounts of all payments and refunds.

           3.4.3   During the Term of this Agreement and for three years
                   thereafter, Registrar shall make these records available for
                   inspection and copying by ICANN upon reasonable notice. ICANN
                   shall not disclose the content of such records except as
                   expressly permitted by an ICANN specification or policy.

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    3.5    Rights in Data. Registrar disclaims all rights to exclusive ownership
           or use of the data elements listed in Subsections 3.2.1.1 through
           3.2.1.3 for all Registered Names submitted by Registrar to the
           Registry Database for, or sponsored by Registrar in, each TLD for
           which it is accredited. Registrar does not disclaim rights in the
           data elements listed in Subsections 3.2.1.4 through 3.2.1.6 and
           Subsections 3.3.1.3 through 3.3.1.8 concerning active Registered
           Names sponsored by it in each TLD for which it is accredited, and
           agrees to grant nonexclusive, irrevocable, royalty-free licenses to
           make use of and disclose the data elements listed in Subsections
           3.2.1.4 through 3.2.1.6 and 3.3.1.3 through 3.3.1.8 for the purpose
           of providing a service or services (such as a Whois service under
           Subsection 3.3.4) providing interactive, query-based public access.
           Upon a change in sponsorship from Registrar of any Registered Name in
           a TLD for which it is accredited, Registrar acknowledges that the
           registrar gaining sponsorship shall have the rights of an owner to
           the data elements listed in Subsections 3.2.1.4 through 3.2.1.6 and
           3.3.1.3 through 3.3.1.8 concerning that Registered Name, with
           Registrar also retaining the rights of an owner in that data. Nothing
           in this Subsection prohibits Registrar from (1) restricting bulk
           public access to data elements in a manner consistent with this
           Agreement and any ICANN specifications or policies or (2)
           transferring rights it claims in data elements subject to the
           provisions of this Subsection.

    3.6    Data Escrow. During the Term of this Agreement, on a schedule, under
           the terms, and in the format specified by ICANN, Registrar shall
           submit an electronic copy of the database described in Subsection
           3.4.1 to ICANN or, at Registrar's election and at its expense, to a
           reputable escrow agent mutually approved by Registrar and ICANN, such
           approval also not to be unreasonably withheld by either party. The
           data shall be held under an agreement among Registrar, ICANN, and the
           escrow agent (if any) providing that (1) the data shall be received
           and held in escrow, with no use other than verification that the
           deposited data is complete, consistent, and in proper format, until
           released to ICANN; (2) the data shall be released from escrow upon
           expiration without renewal or termination of this Agreement; and (3)
           ICANN's rights under the escrow agreement shall be assigned with any
           assignment of this Agreement. The escrow shall provide that in the
           event the escrow is released under this Subsection, ICANN (or its
           assignee) shall have a non-exclusive, irrevocable, royalty-free
           license to exercise (only for transitional purposes) or have
           exercised all rights necessary to provide Registrar Services.

    3.7    Business Dealings, Including with Registered Name Holders.

           3.7.1   In the event ICANN adopts a specification or policy,
                   supported by a consensus of ICANN-Accredited registrars,
                   establishing or approving a Code of Conduct for
                   ICANN-Accredited registrars, Registrar shall abide by that
                   Code.

           3.7.2   Registrar shall abide by applicable laws and governmental
                   regulations.

           3.7.3   Registrar shall not represent to any actual or potential
                   Registered Name Holder that Registrar enjoys access to a
                   registry for which

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                   Registrar is Accredited that is superior to that of any other
                   registrar Accredited for that registry.

           3.7.4   Registrar shall not activate any Registered Name unless and
                   until it is satisfied that it has received a reasonable
                   assurance of payment of its registration fee. For this
                   purpose, a charge to a credit card, general commercial terms
                   extended to creditworthy customers, or other mechanism
                   providing a similar level of assurance of payment shall be
                   sufficient, provided that the obligation to pay becomes final
                   and nonrevocable by the Registered Name Holder upon
                   activation of the registration.

           3.7.5   Registrar shall register Registered Names to Registered Name
                   Holders only for fixed periods. At the conclusion of the
                   registration period, failure by or on behalf of the
                   Registered Name Holder to pay a renewal fee within the time
                   specified in a second notice or reminder shall, in the
                   absence of extenuating circumstances, result in cancellation
                   of the registration. In the event that ICANN adopts a
                   specification or policy concerning procedures for handling
                   expiration of registrations, Registrar shall abide by that
                   specification or policy.

           3.7.6   Registrar shall not insert or renew any Registered Name in
                   any registry for which Registrar is accredited by ICANN in a
                   manner contrary to an ICANN policy stating a list or
                   specification of excluded Registered Names that is in effect
                   at the time of insertion or renewal.

           3.7.7   Registrar shall require all Registered Name Holders to enter
                   into an electronic or paper registration agreement with
                   Registrar including at least the following provisions:

                   3.7.7.1   The Registered Name Holder shall provide to
                             Registrar accurate and reliable contact details and
                             promptly correct and update them during the term of
                             the Registered Name registration, including: the
                             full name, postal address, e-mail address, voice
                             telephone number, and fax number if available of
                             the Registered Name Holder; name of authorized
                             person for contact purposes in the case of an
                             Registered Name Holder that is an organization,
                             association, or corporation; and the data elements
                             listed in Subsections 3.3.1.2, 3.3.1.7 and 3.3.1.8.

                   3.7.7.2   A Registered Name Holder's willful provision of
                             inaccurate or unreliable information, its willful
                             failure promptly to update information provided to
                             Registrar, or its failure to respond for over
                             fifteen calendar days to inquiries by Registrar
                             concerning the accuracy of contact details
                             associated with the Registered Name Holder's
                             registration shall constitute a material breach of
                             the Registered Name

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                             Holder-registrar contract and be a basis for
                             cancellation of the Registered Name registration.

                   3.7.7.3   Any Registered Name Holder that intends to license
                             use of a domain name to a third party is
                             nonetheless the Registered Name Holder of record
                             and is responsible for providing its own full
                             contact information and for providing and updating
                             accurate technical and administrative contact
                             information adequate to facilitate timely
                             resolution of any problems that arise in connection
                             with the Registered Name. A Registered Name Holder
                             licensing use of a Registered Name according to
                             this provision shall accept liability for harm
                             caused by wrongful use of the Registered Name,
                             unless it promptly discloses the identity of the
                             licensee to a party providing the Registered Name
                             Holder reasonable evidence of actionable harm.

                   3.7.7.4   Registrar shall provide notice to each new or
                             renewed Registered Name Holder stating:

                             3.7.7.4.1  The purposes for which any Personal Data
                                        collected from the applicant are
                                        intended;

                             3.7.7.4.2  The intended recipients or categories of
                                        recipients of the data (including the
                                        Registry Operator and others who will
                                        receive the data from Registry
                                        Operator);

                             3.7.7.4.3  Which data are obligatory and which
                                        data, if any, are voluntary; and

                             3.7.7.4.4  How the Registered Name Holder or data
                                        subject can access and, if necessary,
                                        rectify the data held about them.

                   3.7.7.5   The Registered Name Holder shall consent to the
                             data processing referred to in Subsection 3.7.7.4.

                   3.7.7.6   The Registered Name Holder shall represent that
                             notice has been provided equivalent to that
                             described in Subsection 3.7.7.4 to any third-party
                             individuals whose Personal Data are supplied to
                             Registrar by the Registered Name Holder, and that
                             the Registered Name Holder has obtained consent
                             equivalent to that referred to in Subsection
                             3.7.7.5 of any such third-party individuals.

                   3.7.7.7   Registrar shall agree that it will not process the
                             Personal Data collected from the Registered Name
                             Holder in a way incompatible with the purposes and
                             other limitations about

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                             which it has provided notice to the Registered Name
                             Holder in accordance with Subsection 3.7.7.4 above.

                   3.7.7.8   Registrar shall agree that it will take reasonable
                             precautions to protect Personal Data from loss,
                             misuse, unauthorized access or disclosure,
                             alteration, or destruction.

                   3.7.7.9   The Registered Name Holder shall represent that, to
                             the best of the Registered Name Holder's knowledge
                             and belief, neither the registration of the
                             Registered Name nor the manner in which it is
                             directly or indirectly used infringes the legal
                             rights of any third party.

                   3.7.7.10  For the adjudication of disputes concerning or
                             arising from use of the Registered Name, the
                             Registered Name Holder shall submit, without
                             prejudice to other potentially applicable
                             jurisdictions, to the jurisdiction of the courts
                             (1) of the Registered Name Holder's domicile and
                             (2) where Registrar is located.

                   3.7.7.11  The Registered Name Holder shall agree that its
                             registration of the Registered Name shall be
                             subject to suspension, cancellation, or transfer
                             pursuant to any ICANN adopted specification or
                             policy, or pursuant to any registrar or registry
                             procedure not inconsistent with an ICANN adopted
                             specification or policy, (1) to correct mistakes by
                             Registrar or the Registry Operator in registering
                             the name or (2) for the resolution of disputes
                             concerning the Registered Name.

                   3.7.7.12  The Registered Name Holder shall indemnify and hold
                             harmless the Registry Operator and its directors,
                             officers, employees, and agents from and against
                             any and all claims, damages, liabilities, costs,
                             and expenses (including reasonable legal fees and
                             expenses) arising out of or related to the
                             Registered Name Holder's domain name registration.

           3.7.8   Registrar shall abide by any specifications or policies
                   established according to Section 4 requiring reasonable and
                   commercially practicable (a) verification, at the time of
                   registration, of contact information associated with a
                   Registered Name sponsored by Registrar or (b) periodic
                   re-verification of such information. Registrar shall, upon
                   notification by any person of an inaccuracy in the contact
                   information associated with a Registered Name sponsored by
                   Registrar, take reasonable steps to investigate that claimed
                   inaccuracy. In the event Registrar learns of inaccurate
                   contact

                                      -11-

                   information associated with a Registered Name it sponsors, it
                   shall take reasonable steps to correct that inaccuracy.

           3.7.9   Registrar shall abide by any ICANN adopted specifications or
                   policies prohibiting or restricting warehousing of or
                   speculation in domain names by registrars.

           3.7.10  Nothing in this Agreement prescribes or limits the amount
                   Registrar may charge Registered Name Holders for registration
                   of Registered Names.

    3.8    Domain-Name Dispute Resolution. During the Term of this Agreement,
           Registrar shall have in place a policy and procedures for resolution
           of disputes concerning Registered Names. Until different policies and
           procedures are established by ICANN under Section 4, Registrar shall
           comply with the Uniform Domain Name Dispute Resolution Policy
           identified on ICANN's website
           (www.icann.org/general/consensus-policies.htm).

    3.9    Accreditation Fees. As a condition of accreditation, Registrar shall
           pay accreditation fees to ICANN. These fees consist of yearly and
           variable fees.

           3.9.1   Yearly Accreditation Fee. Registrar shall pay ICANN a yearly
                   accreditation fee in an amount established by the ICANN Board
                   of Directors, in conformity with ICANN's bylaws and articles
                   of incorporation. This yearly accreditation fee shall not
                   exceed US$4,000 for the first TLD for which Registrar is
                   Accredited plus US$500 for each additional TLD for which
                   Registrar is Accredited at any time during the year. Payment
                   of the yearly fee shall be due within thirty days after
                   invoice from ICANN.

           3.9.2   Variable Accreditation Fee. Registrar shall pay the variable
                   accreditation fees established by the ICANN Board of
                   Directors, in conformity with ICANN's bylaws and articles of
                   incorporation, provided that in each case such fees are
                   reasonably allocated among all registrars that contract with
                   ICANN and that any such fees must be expressly approved by
                   registrars accounting, in the aggregate, for payment of
                   two-thirds of all registrar-level fees. Registrar shall pay
                   such fees in a timely manner for so long as all material
                   terms of this Agreement remain in full force and effect, and
                   notwithstanding the pendency of any dispute between Registrar
                   and ICANN.

           3.9.3   On reasonable notice given by ICANN to Registrar, accountings
                   submitted by Registrar shall be subject to verification by an
                   audit of Registrar's books and records by an independent
                   third-party that shall preserve the confidentiality of such
                   books and records (other than its findings as to the accuracy
                   of, and any necessary corrections to, the accountings).

                                      -12-

    3.10   Insurance. Registrar shall maintain in force commercial general
           liability insurance with policy limits of at least US$500,000
           covering liabilities arising from Registrar's registrar business
           during the term of this Agreement.

4 PROCEDURES FOR ESTABLISHMENT OR REVISION OF SPECIFICATIONS AND POLICIES.

    4.1    Registrar's Ongoing Obligation to Comply With New or Revised
           Specifications and Policies. During the Term of this Agreement,
           Registrar shall comply with the terms of this Agreement on the
           schedule set forth in Subsection 4.4, with

           4.1.1   new or revised specifications (including forms of agreement
                   to which Registrar is a party) and policies established by
                   ICANN as Consensus Policies in the manner described in
                   Subsection 4.3,

           4.1.2   in cases where:

                   4.1.2.1   this Agreement expressly provides for compliance
                             with revised specifications or policies established
                             in the manner set forth in one or more subsections
                             of this Section 4; or

                   4.1.2.2   the specification or policy concerns one or more
                             topics described in Subsection 4.2.

    4.2    Topics for New and Revised Specifications and Policies. New and
           revised specifications and policies may be established on the
           following topics:

           4.2.1   issues for which uniform or coordinated resolution is
                   reasonably necessary to facilitate interoperability,
                   technical reliability, and/or operational stability of
                   Registrar Services, Registry Services, the DNS, or the
                   Internet;

           4.2.2   registrar policies reasonably necessary to implement ICANN
                   policies or specifications relating to a DNS registry or to
                   Registry Services;

           4.2.3   resolution of disputes concerning the registration of
                   Registered Names (as opposed to the use of such domain
                   names), including where the policies take into account use of
                   the domain names;

           4.2.4   principles for allocation of Registered Names (e.g.,
                   first-come/first served, timely renewal, holding period after
                   expiration);

           4.2.5   prohibitions on warehousing of or speculation in domain names
                   by registries or registrars;

           4.2.6   maintenance of and access to accurate and up-to-date contact
                   information regarding Registered Names and nameservers;

           4.2.7   reservation of Registered Names that may not be registered
                   initially or that may not be renewed due to reasons
                   reasonably related to (a) avoidance of confusion among or
                   misleading of users, (b) intellectual

                                      -13-

                   property, or (c) the technical management of the DNS or the
                   Internet (e.g., "example.com" and names with
                   single-letter/digit labels);

           4.2.8   procedures to avoid disruptions of registration due to
                   suspension or termination of operations by a registry
                   operator or a registrar, including allocation of
                   responsibility among continuing registrars of the Registered
                   Names sponsored in a TLD by a registrar losing accreditation;
                   and

           4.2.9   the transfer of registration data upon a change in registrar
                   sponsoring one or more Registered Names.

                   Nothing in this Subsection 4.2 shall limit Registrar's
                   obligations as set forth elsewhere in this Agreement.

    4.3    Manner of Establishment of New and Revised Specifications and
           Policies.

           4.3.1   "Consensus Policies" are those specifications or policies
                   established based on a consensus among Internet stakeholders
                   represented in the ICANN process, as demonstrated by (a)
                   action of the ICANN Board of Directors establishing the
                   specification or policy, (b) a recommendation, adopted by at
                   least a two-thirds vote of the council of the ICANN
                   Supporting Organization to which the matter is delegated,
                   that the specification or policy should be established, and
                   (c) a written report and supporting materials (which must
                   include all substantive submissions to the Supporting
                   Organization relating to the proposal) that (i) documents the
                   extent of agreement and disagreement among impacted groups,
                   (ii) documents the outreach process used to seek to achieve
                   adequate representation of the views of groups that are
                   likely to be impacted, and (iii) documents the nature and
                   intensity of reasoned support and opposition to the proposed
                   policy.

           4.3.2   In the event that Registrar disputes the presence of such a
                   consensus, it shall seek review of that issue from an
                   Independent Review Panel established under ICANN's bylaws.
                   Such review must be sought within fifteen working days of the
                   publication of the Board's action establishing the policy.
                   The decision of the panel shall be based on the report and
                   supporting materials required by Subsection 4.3.1. In the
                   event that Registrar seeks review and the Independent Review
                   Panel sustains the Board's determination that the policy is
                   based on a consensus among Internet stakeholders represented
                   in the ICANN process, then Registrar must implement such
                   policy unless it promptly seeks and obtains a stay or
                   injunctive relief under Subsection 5.6.

           4.3.3   If, following a decision by the Independent Review Panel
                   convened under Subsection 4.3.2, Registrar still disputes the
                   presence of such a consensus, it may seek further review of
                   that issue within fifteen

                                      -14-

                   working days of publication of the decision in accordance
                   with the dispute resolution procedures set forth in
                   Subsection 5.6; provided, however, that Registrar must
                   continue to implement the policy unless it has obtained a
                   stay or injunctive relief under Subsection 5.6 or a final
                   decision is rendered in accordance with the provisions of
                   Subsection 5.6 that relieves Registrar of such obligation.
                   The decision in any such further review shall be based on the
                   report and supporting materials required by Subsection 4.3.1.

           4.3.4   A specification or policy established by the ICANN Board of
                   Directors on a temporary basis, without a prior
                   recommendation by the council of an ICANN Supporting
                   Organization, shall also be considered to be a Consensus
                   Policy if adopted by the ICANN Board of Directors by a vote
                   of at least two-thirds of its members, so long as the Board
                   reasonably determines that immediate temporary establishment
                   of a specification or policy on the subject is necessary to
                   maintain the operational stability of Registrar Services,
                   Registry Services, the DNS, or the Internet, and that the
                   proposed specification or policy is as narrowly tailored as
                   feasible to achieve those objectives. In establishing any
                   specification or policy under this provision, the ICANN Board
                   of Directors shall state the period of time for which the
                   specification or policy is temporarily adopted and shall
                   immediately refer the matter to the appropriate Supporting
                   Organization for its evaluation and review with a detailed
                   explanation of its reasons for establishing the temporary
                   specification or policy and why the Board believes the policy
                   should receive the consensus support of Internet
                   stakeholders. If the period of time for which the
                   specification or policy is adopted exceeds ninety days, the
                   Board shall reaffirm its temporary establishment every ninety
                   days for a total period not to exceed one year, in order to
                   maintain such specification or policy in effect until such
                   time as it meets the standard set forth in Subsection 4.3.1.
                   If the standard set forth in Subsection 4.3.1 is not met
                   within the temporary period set by the Board, or the council
                   of the Supporting Organization to which it has been referred
                   votes to reject the temporary specification or policy, it
                   will no longer be a "Consensus Policy."

           4.3.5   For all purposes under this Agreement, the policies
                   specifically identified by ICANN on its website
                   (www.icann.org/general/consensus-policies.htm) at the date of
                   this Agreement as having been adopted by the ICANN Board of
                   Directors before the date of this Agreement shall be treated
                   in the same manner and have the same effect as "Consensus
                   Policies" and accordingly shall not be subject to review
                   under Subsection 4.3.2.

           4.3.6   In the event that, at the time the ICANN Board of Directors
                   establishes a specification or policy under Subsection 4.3.1
                   during the Term of this Agreement, ICANN does not have in
                   place an Independent Review Panel established under ICANN's
                   bylaws, the fifteen-working-day period allowed under
                   Subsection 4.3.2 to seek review shall be

                                      -15-

                   extended until fifteen working days after ICANN does have
                   such an Independent Review Panel in place and Registrar shall
                   not be obligated to comply with the specification or policy
                   in the interim.

    4.4    Time Allowed for Compliance. Registrar shall be afforded a reasonable
           period of time after receiving notice of the establishment of a
           specification or policy under Subsection 4.3 in which to comply with
           that specification or policy, taking into account any urgency
           involved.

5 MISCELLANEOUS PROVISIONS.

    5.1    Specific Performance. While this Agreement is in effect, either party
           may seek specific performance of any provision of this Agreement in
           the manner provided in Section 5.6 below, provided the party seeking
           such performance is not in material breach of its obligations.

    5.2    Termination of Agreement by Registrar. This Agreement may be
           terminated before its expiration by Registrar by giving ICANN thirty
           days written notice. Upon such termination by Registrar, Registrar
           shall not be entitled to any refund of fees paid to ICANN pursuant to
           this Agreement.

    5.3    Termination of Agreement by ICANN. This Agreement may be terminated
           before its expiration by ICANN in any of the following circumstances:

           5.3.1   There was a material misrepresentation, material inaccuracy,
                   or materially misleading statement in Registrar's application
                   for accreditation or any material accompanying the
                   application.

           5.3.2   Registrar:

                   5.3.2.1   is convicted by a court of competent jurisdiction
                             of a felony or other serious offense related to
                             financial activities, or is judged by a court of
                             competent jurisdiction to have committed fraud or
                             breach of fiduciary duty, or is the subject of a
                             judicial determination that ICANN reasonably deems
                             as the substantive equivalent of those offenses; or

                   5.3.2.2   is disciplined by the government of its domicile
                             for conduct involving dishonesty or misuse of funds
                             of others.

           5.3.3   Any officer or director of Registrar is convicted of a felony
                   or of a misdemeanor related to financial activities, or is
                   judged by a court to have committed fraud or breach of
                   fiduciary duty, or is the subject of a judicial determination
                   that ICANN deems as the substantive equivalent of any of
                   these; provided, such officer or director is not removed in
                   such circumstances.

           5.3.4   Registrar fails to cure any breach of this Agreement (other
                   than a failure to comply with a policy adopted by ICANN
                   during the term of this Agreement as to which Registrar is
                   seeking, or still has time to seek, review under Subsection
                   4.3.2 of whether a consensus is

                                      -16-

                   present) within fifteen working days after ICANN gives
                   Registrar notice of the breach.

           5.3.5   Registrar fails to comply with a ruling granting specific
                   performance under Subsections 5.1 and 5.6.

           5.3.6   Registrar continues acting in a manner that ICANN has
                   reasonably determined endangers the stability or operational
                   integrity of the Internet after receiving three days notice
                   of that determination. 5.3.7 Registrar becomes bankrupt or
                   insolvent.

           This Agreement may be terminated in circumstances described in
           Subsections 5.3.1 - 5.3.6 above only upon fifteen days written notice
           to Registrar (in the case of Subsection 5.3.4 occurring after
           Registrar's failure to cure), with Registrar being given an
           opportunity during that time to initiate arbitration under Subsection
           5.6 to determine the appropriateness of termination under this
           Agreement. In the event Registrar initiates litigation or arbitration
           concerning the appropriateness of termination by ICANN, the
           termination shall be stayed an additional thirty days to allow
           Registrar to obtain a stay of termination under Subsection 5.6 below.
           If Registrar acts in a manner that ICANN reasonably determines
           endangers the stability or operational integrity of the Internet and
           upon notice does not immediately cure, ICANN may suspend this
           Agreement for five working days pending ICANN's application for more
           extended specific performance or injunctive relief under Subsection
           5.6. This Agreement may be terminated immediately upon notice to
           Registrar in circumstance described in Subsection 5.3.7 above.

    5.4    Term of Agreement; Renewal; Right to Substitute Updated Agreement.
           This Agreement shall be effective on the Effective Date and shall
           have an initial term running until the Expiration Date, unless sooner
           terminated. Thereafter, if Registrar seeks to continue its
           accreditation, it may apply for renewed accreditation, and shall be
           entitled to renewal provided it meets the ICANNadopted specification
           or policy on accreditation criteria then in effect, is in compliance
           with its obligations under this Agreement, as it may be amended, and
           agrees to be bound by terms and conditions of the then-current
           Registrar accreditation agreement (which may differ from those of
           this Agreement) that ICANN adopts in accordance with Subsection 2.3
           and Subsection 4.3. In connection with renewed accreditation,
           Registrar shall confirm its assent to the terms and conditions of the
           then-current Registrar accreditation agreement by signing that
           accreditation agreement. In the event that, during the Term of this
           Agreement, ICANN posts on its web site an updated form of registrar
           accreditation agreement applicable to Accredited registrars,
           Registrar (provided it has not received (1) a notice of breach that
           it has not cured or (2) a notice of termination of this Agreement
           under Subsection 5.3 above) may elect, by giving ICANN written
           notice, to enter an agreement in the updated form in place of this
           Agreement. In the event of such election, Registrar and ICANN shall
           promptly sign a new accreditation agreement that contains the
           provisions of the updated form posted on the web site, with the
           length of the term of the substituted

                                      -17-

           agreement as stated in the updated form posted on the web site,
           calculated as if it commenced on the date this Agreement was made,
           and this Agreement will be deemed terminated.

    5.5    Addition or Deletion of TLDs for Which Registrar Accredited. On the
           Effective Date, Registrar shall be accredited according to Subsection
           2.1 for each TLD as to which an appendix executed by both parties is
           attached to this Agreement. During the Term of this Agreement,
           Registrar may request accreditation for any additional TLD(s) by
           signing an additional appendix for each additional TLD in the form
           prescribed by ICANN and submitting the appendix to ICANN. In the
           event ICANN agrees to the request, ICANN will sign the additional
           appendix and return a copy of it to Registrar. The mutually signed
           appendix shall thereafter be an appendix to this Agreement. During
           the Term of this Agreement, Registrar may abandon its accreditation
           for any TLD under this Agreement (provided that Registrar will
           thereafter remain accredited for at least one TLD under this
           Agreement) by giving ICANN written notice specifying the TLD as to
           which accreditation is being abandoned. The abandonment shall be
           effective thirty days after the notice is given.

    5.6    Resolution of Disputes Under this Agreement. Disputes arising under
           or in connection with this Agreement, including (1) disputes arising
           from ICANN's failure to renew Registrar's accreditation and (2)
           requests for specific performance, shall be resolved in a court of
           competent jurisdiction or, at the election of either party, by an
           arbitration conducted as provided in this Subsection 5.6 pursuant to
           the International Arbitration Rules of the American Arbitration
           Association ("AAA"). The arbitration shall be conducted in English
           and shall occur in Los Angeles County, California, USA. There shall
           be three arbitrators: each party shall choose one arbitrator and, if
           those two arbitrators do not agree on a third arbitrator, the third
           shall be chosen by the AAA. The parties shall bear the costs of the
           arbitration in equal shares, subject to the right of the arbitrators
           to reallocate the costs in their award as provided in the AAA rules.
           The parties shall bear their own attorneys' fees in connection with
           the arbitration, and the arbitrators may not reallocate the
           attorneys' fees in conjunction with their award. The arbitrators
           shall render their decision within ninety days of the conclusion of
           the arbitration hearing. In the event Registrar initiates arbitration
           to contest the appropriateness of termination of this Agreement by
           ICANN, Registrar may at the same time request that the arbitration
           panel stay the termination until the arbitration decision is
           rendered, and that request shall have the effect of staying the
           termination until the arbitration panel has granted an ICANN request
           for specific performance and Registrar has failed to comply with such
           ruling. In the event Registrar initiates arbitration to contest an
           Independent Review Panel's decision under Subsection 4.3.3 sustaining
           the Board's determination that a specification or policy is supported
           by consensus, Registrar may at the same time request that the
           arbitration panel stay the requirement that it comply with the policy
           until the arbitration decision is rendered, and that request shall
           have the effect of staying the requirement until the decision or
           until the arbitration panel has granted an ICANN request for lifting
           of the stay. In all litigation involving ICANN concerning this
           Agreement (whether in a case where arbitration has not been elected
           or to enforce an arbitration award), jurisdiction

                                      -18-

           and exclusive venue for such litigation shall be in a court located
           in Los Angeles, California, USA; however, the parties shall also have
           the right to enforce a judgment of such a court in any court of
           competent jurisdiction. For the purpose of aiding the arbitration
           and/or preserving the rights of the parties during the pendency of an
           arbitration, the parties shall have the right to seek temporary or
           preliminary injunctive relief from the arbitration panel or in a
           court located in Los Angeles, California, USA, which shall not be a
           waiver of this arbitration agreement.

    5.7    Limitations on Monetary Remedies for Violations of this Agreement.
           ICANN's aggregate monetary liability for violations of this Agreement
           shall not exceed the amount of accreditation fees paid by Registrar
           to ICANN under Subsection 3.9 of this Agreement. Registrar's monetary
           liability to ICANN for violations of this Agreement shall be limited
           to accreditation fees owing to ICANN under this Agreement. In no
           event shall either party be liable for special, indirect, incidental,
           punitive, exemplary, or consequential damages for any violation of
           this Agreement.

    5.8    Handling by ICANN of Registrar-Supplied Data. Before receiving any
           Personal Data from Registrar, ICANN shall specify to Registrar in
           writing the purposes for and conditions under which ICANN intends to
           use the Personal Data. ICANN may from time to time provide Registrar
           with a revised specification of such purposes and conditions, which
           specification shall become effective no fewer than thirty days after
           it is provided to Registrar. ICANN shall not use Personal Data
           provided by Registrar for a purpose or under conditions inconsistent
           with the specification in effect when the Personal Data was provided.
           ICANN shall take reasonable steps to avoid uses of the Personal Data
           by third parties inconsistent with the specification.

    5.9    Assignment. Either party may assign or transfer this Agreement only
           with the prior written consent of the other party, which shall not be
           unreasonably withheld, except that ICANN may, with the written
           approval of the United States Department of Commerce, assign this
           agreement by giving Registrar written notice of the assignment. In
           the event of assignment by ICANN, the assignee may, with the approval
           of the United States Department of Commerce, revise the definition of
           "Consensus Policy" to the extent necessary to meet the organizational
           circumstances of the assignee, provided the revised definition
           requires that Consensus Policies be based on a demonstrated consensus
           of Internet stakeholders.

    5.10   No Third-Party Beneficiaries. This Agreement shall not be construed
           to create any obligation by either ICANN or Registrar to any
           non-party to this Agreement, including any Registered Name Holder.

    5.11   Notices, Designations, and Specifications. All notices to be given
           under this Agreement shall be given in writing at the address of the
           appropriate party as set forth below, unless that party has given a
           notice of change of address in writing. Any notice required by this
           Agreement shall be deemed to have been properly given when delivered
           in person, when sent by electronic facsimile with receipt of
           confirmation of delivery, or when scheduled for delivery by
           internationally

                                      -19-

           recognized courier service. Designations and specifications by ICANN
           under this Agreement shall be effective when written notice of them
           is deemed given to Registrar.

             If to ICANN, addressed to:

                      Internet Corporation for Assigned Names and Numbers
                      Registrar Accreditation
                      4676 Admiralty Way, Suite 330
                      Marina del Rey, California 90292 USA
                      Attention: General Counsel
                      Telephone: 1/310/823-9358
                      Facsimile: 1/310/823-8649

                      If to Registrar, addressed to:

                      Register.com, Inc.
                      a Delaware Corporation
                      575 Eight Avenue, 11th Floor
                      New York, New York 10018
                      USA

                      Attention: General Council
                      Registrar Website URL: www.register.com
                      Telephone: 212-798-9100
                      Facsimile: 212-629-9309
                      e-mail: legal@register.com

    5.12   Dates and Times. All dates and times relevant to this Agreement or
           its performance shall be computed based on the date and time observed
           in Los Angeles, California, USA.

    5.13   Language. All notices, designations, and specifications made under
           this Agreement shall be in the English language.

    5.14   Amendments and Waivers. No amendment, supplement, or modification of
           this Agreement or any provision hereof shall be binding unless
           executed in writing by both parties. No waiver of any provision of
           this Agreement shall be binding unless evidenced by a writing signed
           by the party waiving compliance with such provision. No waiver of any
           of the provisions of this Agreement shall be deemed or shall
           constitute a waiver of any other provision hereof, nor shall any such
           waiver constitute a continuing waiver unless otherwise expressly
           provided.

    5.15   Counterparts. This Agreement may be executed in one or more
           counterparts, each of which shall be deemed an original, but all of
           which together shall constitute one and the same instrument.

    5.16   Entire Agreement. Except to the extent (a) expressly provided in a
           written agreement executed by both parties concurrently herewith or
           (b) of written assurances provided by Registrar to ICANN in
           connection with its Accreditation, this Agreement (including the
           appendices, which form part of it) constitutes the

                                      -20-

           entire agreement of the parties pertaining to the accreditation of
           Registrar and supersedes all prior agreements, understandings,
           negotiations and discussions, whether oral or written, between the
           parties on that subject.

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
in duplicate by their duly authorized representatives.

ICANN                                      Register.com, Inc.

By: /s/ Kurt J. Pritz                      By:    /s/ Roni Jacobson
    ---------------------------------             ------------------------------
    Kurt J. Pritz                          Name:   Roni Jacobson
    Vice President, Business Operations           ------------------------------
                                           Title:  General Counsel & Secretary
                                                  ------------------------------

                                       -21-

                                  .BIZ APPENDIX

         The Internet Corporation for Assigned Names and Numbers, a California
non-profit, public benefit corporation ("ICANN"), and REGISTER.com, INC., a
Delaware Corporation ("Registrar") have entered into a Registrar Accreditation
Agreement ("Registrar Accreditation Agreement"), of which this appendix (".biz
Appendix") is a part.

         Registrar wishes to be accredited in the .biz TLD pursuant to and
subject to the Registrar Accreditation Agreement and ICANN wishes to accredit
Registrar in the .biz TLD. Pursuant to and subject to the Registrar
Accreditation Agreement, Registrar and ICANN hereby agree as follows:

         1. Definitions. All initially capitalized terms not otherwise defined
herein shall have the definitions assigned to such terms in the Registrar
Accreditation Agreement.

         2. Reqistrar Election. Registrar hereby elects and agrees to become
accredited by ICANN to provide Registration Services in the .biz TLD.

         3. ICANN's Acceptance. ICANN hereby accepts Registrar's election to
become accredited by ICANN to provide Registration Services in the .biz TLD.

         IN WITNESS WHEREOF, the parties hereto have caused this .biz Appendix
to be executed by their duly authorized representatives.

ICANN                                      Register.com, Inc.

By: /s/ Kurt J. Pritz                      By:    /s/ Roni Jacobson
    ---------------------------------             ------------------------------
    Kurt J. Pritz                          Name:   Roni Jacobson
    Vice President, Business Operations           ------------------------------
                                           Title:  General Counsel & Secretary
                                                  ------------------------------
                                           Date:   June 27, 2005
                                                  ------------------------------

                                  .COM APPENDIX

         The Internet Corporation for Assigned Names and Numbers, a California
non-profit, public benefit corporation ("ICANN"), and REGISTER.com, INC., a
Delaware Corporation ("Registrar") have entered into a Registrar Accreditation
Agreement ("Registrar Accreditation Agreement"), of which this appendix (".com
Appendix") is a part.

         Registrar wishes to be accredited in the .biz TLD pursuant to and
subject to the Registrar Accreditation Agreement and ICANN wishes to accredit
Registrar in the .biz TLD. Pursuant to and subject to the Registrar
Accreditation Agreement, Registrar and ICANN hereby agree as follows:

         1. Definitions. All initially capitalized terms not otherwise defined
herein shall have the definitions assigned to such terms in the Registrar
Accreditation Agreement.

         2. Reqistrar Election. Registrar hereby elects and agrees to become
accredited by ICANN to provide Registration Services in the .biz TLD.

         3. ICANN's Acceptance. ICANN hereby accepts Registrar's election to
become accredited by ICANN to provide Registration Services in the .biz TLD.

         IN WITNESS WHEREOF, the parties hereto have caused this .com Appendix
to be executed by their duly authorized representatives.

ICANN                                      Register.com, Inc.

By: /s/ Kurt J. Pritz                      By:    /s/ Roni Jacobson
    ---------------------------------             ------------------------------
    Kurt J. Pritz                          Name:   Roni Jacobson
    Vice President, Business Operations           ------------------------------
                                           Title:  General Counsel & Secretary
                                                  ------------------------------
                                           Date:   June 27, 2005
                                                  ------------------------------

                                 .INFO APPENDIX

         The Internet Corporation for Assigned Names and Numbers, a California
non-profit, public benefit corporation ("ICANN"), and REGISTER.com, INC., a
Delaware Corporation ("Registrar") have entered into a Registrar Accreditation
Agreement ("Registrar Accreditation Agreement"), of which this appendix (".info
Appendix") is a part.

         Registrar wishes to be accredited in the .biz TLD pursuant to and
subject to the Registrar Accreditation Agreement and ICANN wishes to accredit
Registrar in the .biz TLD. Pursuant to and subject to the Registrar
Accreditation Agreement, Registrar and ICANN hereby agree as follows:

         1. Definitions. All initially capitalized terms not otherwise defined
herein shall have the definitions assigned to such terms in the Registrar
Accreditation Agreement.

         2. Reqistrar Election. Registrar hereby elects and agrees to become
accredited by ICANN to provide Registration Services in the .biz TLD.

         3. ICANN's Acceptance. ICANN hereby accepts Registrar's election to
become accredited by ICANN to provide Registration Services in the .biz TLD.

         IN WITNESS WHEREOF, the parties hereto have caused this .info Appendix
to be executed by their duly authorized representatives.

ICANN                                      Register.com, Inc.

By: /s/ Kurt J. Pritz                      By:    /s/ Roni Jacobson
    ---------------------------------             ------------------------------
    Kurt J. Pritz                          Name:   Roni Jacobson
    Vice President, Business Operations           ------------------------------
                                           Title:  General Counsel & Secretary
                                                  ------------------------------
                                           Date:   June 27, 2005
                                                  ------------------------------

                                 .NAME APPENDIX

         The Internet Corporation for Assigned Names and Numbers, a California
non-profit, public benefit corporation ("ICANN"), and REGISTER.com, INC., a
Delaware Corporation ("Registrar") have entered into a Registrar Accreditation
Agreement ("Registrar Accreditation Agreement"), of which this appendix (".name
Appendix") is a part.

         Registrar wishes to be accredited in the .biz TLD pursuant to and
subject to the Registrar Accreditation Agreement and ICANN wishes to accredit
Registrar in the .biz TLD. Pursuant to and subject to the Registrar
Accreditation Agreement, Registrar and ICANN hereby agree as follows:

         1. Definitions. All initially capitalized terms not otherwise defined
herein shall have the definitions assigned to such terms in the Registrar
Accreditation Agreement.

         2. Reqistrar Election. Registrar hereby elects and agrees to become
accredited by ICANN to provide Registration Services in the .biz TLD.

         3. ICANN's Acceptance. ICANN hereby accepts Registrar's election to
become accredited by ICANN to provide Registration Services in the .biz TLD.

         4. Data Submission. Pursuant to Subsection 3.2.1, as part of its
registration for SLD E-mail forwarding, the NameWatch Service, and Defensive
Registrations, Registrar shall submit to, or shall place in the Registry
Database operated by, the Registry Operator for the TLD that Registry Operator,
consistent with Appendix C to its Registry Agreement with ICANN, data elements
Registry Operator requires be submitted to it.

         IN WITNESS WHEREOF, the parties hereto have caused this .name Appendix
to be executed by their duly authorized representatives.

ICANN                                      Register.com, Inc.

By: /s/ Kurt J. Pritz                      By:    /s/ Roni Jacobson
    ---------------------------------             ------------------------------
    Kurt J. Pritz                          Name:   Roni Jacobson
    Vice President, Business Operations           ------------------------------
                                           Title:  General Counsel & Secretary
                                                  ------------------------------
                                           Date:   June 27, 2005
                                                  ------------------------------

                                  .NET APPENDIX

         The Internet Corporation for Assigned Names and Numbers, a California
non-profit, public benefit corporation ("ICANN"), and REGISTER.com, INC., a
Delaware Corporation ("Registrar") have entered into a Registrar Accreditation
Agreement ("Registrar Accreditation Agreement"), of which this appendix (".net
Appendix") is a part.

         Registrar wishes to be accredited in the .biz TLD pursuant to and
subject to the Registrar Accreditation Agreement and ICANN wishes to accredit
Registrar in the .biz TLD. Pursuant to and subject to the Registrar
Accreditation Agreement, Registrar and ICANN hereby agree as follows:

         1. Definitions. All initially capitalized terms not otherwise defined
herein shall have the definitions assigned to such terms in the Registrar
Accreditation Agreement.

         2. Reqistrar Election. Registrar hereby elects and agrees to become
accredited by ICANN to provide Registration Services in the .biz TLD.

         3. ICANN's Acceptance. ICANN hereby accepts Registrar's election to
become accredited by ICANN to provide Registration Services in the .biz TLD.

         IN WITNESS WHEREOF, the parties hereto have caused this .net Appendix
to be executed by their duly authorized representatives.

ICANN                                      Register.com, Inc.

By: /s/ Kurt J. Pritz                      By:    /s/ Roni Jacobson
    ---------------------------------             ------------------------------
    Kurt J. Pritz                          Name:   Roni Jacobson
    Vice President, Business Operations           ------------------------------
                                           Title:  General Counsel & Secretary
                                                  ------------------------------
                                           Date:   June 27, 2005
                                                  ------------------------------

                                  .ORG APPENDIX

         The Internet Corporation for Assigned Names and Numbers, a California
non-profit, public benefit corporation ("ICANN"), and REGISTER.com, INC., a
Delaware Corporation ("Registrar") have entered into a Registrar Accreditation
Agreement ("Registrar Accreditation Agreement"), of which this appendix (".org
Appendix") is a part.

         Registrar wishes to be accredited in the .biz TLD pursuant to and
subject to the Registrar Accreditation Agreement and ICANN wishes to accredit
Registrar in the .biz TLD. Pursuant to and subject to the Registrar
Accreditation Agreement, Registrar and ICANN hereby agree as follows:

         1. Definitions. All initially capitalized terms not otherwise defined
herein shall have the definitions assigned to such terms in the Registrar
Accreditation Agreement.

         2. Reqistrar Election. Registrar hereby elects and agrees to become
accredited by ICANN to provide Registration Services in the .biz TLD.

         3. ICANN's Acceptance. ICANN hereby accepts Registrar's election to
become accredited by ICANN to provide Registration Services in the .biz TLD.

         IN WITNESS WHEREOF, the parties hereto have caused this .org Appendix
to be executed by their duly authorized representatives.

ICANN                                      Register.com, Inc.

By: /s/ Kurt J. Pritz                      By:    /s/ Roni Jacobson
    ---------------------------------             ------------------------------
    Kurt J. Pritz                          Name:   Roni Jacobson
    Vice President, Business Operations           ------------------------------
                                           Title:  General Counsel & Secretary
                                                  ------------------------------
                                           Date:   June 27, 2005
                                                  ------------------------------

                                  .PRO APPENDIX

ICANN and REGISTER.COM, INC. have entered into a Registrar Accreditation
Agreement ("RAA"), of which this .pro Appendix ("Appendix") is a part. Pursuant
to and subject to the RAA, Registrar and ICANN hereby agree as follows:

1. DEFINITIONS. As used in the RAA (including this appendix) with respect to the
..pro TLD, all initially capitalized terms not otherwise defined in this Appendix
shall have the definitions assigned to such terms in the RAA.

2. REGISTRAR ELECTION. Registrar hereby elects and agrees to become accredited
by ICANN to provide Registrar Senyices in the .pro TLD.

3. ICANN's ACCEPTANCE. ICANN hereby accepts Registrar's election to become
accredited by ICANN to provide Registrar Services in the .pro TLD.

         IN WITNESS WHEREOF, the parties hereto have caused this .pro Appendix
to be executed by their duly authorized representatives.

ICANN                                      Register.com, Inc.

By: /s/ Kurt J. Pritz                      By:    /s/ Roni Jacobson
    ---------------------------------             ------------------------------
    Kurt J. Pritz                          Name:   Roni Jacobson
    Vice President, Business Operations           ------------------------------
                                           Title:  General Counsel & Secretary
                                                  ------------------------------
                                           Date:   June 27, 2005
                                                  ------------------------------

                              LOGO LICENSE APPENDIX
                              ---------------------

        The Internet Corporation for Assigned Names and Numbers, a California
non-profit, public benefit corporation ("ICANN"), and REGISTER.COM, INC., a
Delaware Corporation ("Registrar") have entered into a Registrar Accreditation
Agreement ("Registrar Accreditation Agreement"), of which this appendix ("Logo
License Appendix") is a part. Definitions in the Registrar Accreditation
Agreement apply in this Logo License Appendix.

        Registrar wishes to acquire from ICANN, and ICANN wishes to grant to
Registrar, a license to use the trademarks listed below the signature block of
this Logo License Appendix ("Trademarks") in connection with Registrar's role as
an ICANN-accredited registrar. Pursuant to and subject to the Registrar
Accreditation Agreement, Registrar and ICANN hereby agree as follows:

1 LICENSE

    1.1    Grant of License. ICANN grants to Registrar a non-exclusive,
           worldwide right and license to use the Trademarks, during the term of
           this appendix and solely in connection with the provision and
           marketing of Registrar Services in order to indicate that Registrar
           is accredited as a registrar of domain names by ICANN. Except as
           provided in this subsection and Subsection 2.2 of the Registrar
           Accreditation Agreement, Registrar shall not use the Trademarks, any
           term, phrase, or design which is confusingly similar to the
           Trademarks or any portion of the Trademarks in any manner whatsoever.

    1.2    Ownership of Trademarks. Any and all rights in the Trademarks that
           may be acquired by Registrar shall inure to the benefit of, and are
           herby assigned to, ICANN. Registrar shall not assert ownership of the
           Trademarks or any associated goodwill.

    1.3    No Sublicense. Registrar shall not sublicense any of its rights under
           this appendix to any other person or entity (including any of
           Registrar's resellers) without the prior written approval of ICANN.

2 REGISTRATION AND ENFORCEMENT

    2.1    Registration. Registration and any other form of protection for the
           Trademarks shall only be obtained by ICANN in its name and at its
           expense.

    2.2    Enforcement. Registrar shall promptly notify ICANN of any actual or
           suspected infringement of the Trademarks by third parties, including
           Registrar's resellers or affiliates. ICANN shall have the sole
           discretion to initiate and maintain any legal proceedings against
           such third parties; Registrar shall not take any such actions without
           the prior written approval of ICANN; and ICANN shall retain any and
           all recoveries from such actions.

    2.3    Further Assurances. Registrar agrees to execute such other documents
           and to take all such actions as ICANN may request to effect the terms
           of this appendix, including providing such materials (for example
           URLs and samples of any promotional materials bearing the
           Trademarks), cooperation, and assistance as may be reasonably
           required to assist ICANN in obtaining, maintaining, and

           enforcing trademark registration(s) and any other form of protection
           for the Trademarks.

3 TERM AND TERMINATION

        This Logo License Appendix shall be effective from the date it is signed
below by both parties until the Expiration Date, unless this appendix or the
Registrar Accreditation Agreement is earlier terminated. Each party shall have
the right to terminate this appendix at any time by giving the other party
written notice. Upon expiration or termination of this appendix, Registrar shall
immediately discontinue all use of the Trademarks.

        IN WITNESS WHEREOF, the parties have caused this Logo License Appendix
to be executed by their duly authorized representatives.

ICANN                                      Register.com, Inc.

By: /s/ Kurt J. Pritz                      By:    /s/ Roni Jacobson
    ---------------------------------             ------------------------------
    Kurt J. Pritz                          Name:   Roni Jacobson
    Vice President, Business Operations           ------------------------------
                                           Title:  General Counsel & Secretary
                                                  ------------------------------
                                           Date:   June 27, 2005
                                                  ------------------------------

--------------------------------------------------------------------------------
TRADEMARKS:
1. ICANN Accredited Registrar 2.

2.

                                [GRAPHIC OMITTED]
                                  [ICANN LOGO]exv10w1

 

EXHIBIT 10.1

ILLUMINA, INC.

2005 STOCK AND INCENTIVE PLAN

     
1. Purposes of the Plan. 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’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.

     
2. Definitions. As used herein, the following
definitions shall apply:

		
	 	     
    (a) “Administrator” means the Board or any
    of its Committees as shall be administering the Plan, in
    accordance with Section 4 hereof.
	 
	 	     
    (b) “Applicable Laws” 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. 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 or Awards are granted under the Plan,
    as such laws, rules, regulations and requirements shall be in
    place from time to time.
	 
	 	     
    (c) “Award” means an Option, a Stock Award
    or a Cash Award granted in accordance with the terms of the Plan.
	 
	 	     
    (d) “Award Agreement” 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.
	 
	 	     
    (e) “Board” means the Board of Directors
    of the Company.
	 
	 	     
    (f) “Cash Award” means a bonus opportunity
    awarded under Section 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
    “Cash Award Agreement”).
	 
	 	     
    (g) “Code” means the Internal Revenue Code
    of 1986, as amended.
	 
	 	     
    (h) “Committee” means a committee of
    Directors appointed by the Board in accordance with
    Section 4 hereof.
	 
	 	     
    (i) “Common Stock” means the common stock
    of the Company.
	 
	 	     
    (j) “Company” means Illumina, Inc., a
    Delaware corporation.
	 
	 	     
    (k) “Consultant” means any natural person,
    including an advisor, engaged by the Company or a Parent or
    Subsidiary to render services to such entity.
	 
	 	     
    (l) “Corporate Transaction” means any of
    the following, unless the Administrator provides otherwise:

		
	 	     
    (i) 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),

1

 

		
	 	     
    (ii) the sale of all or substantially all of the
    Company’s assets to any other person or entity (other than
    a wholly-owned subsidiary),
	 
	 	     
    (iii) 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 “group” as defined by or under
    Section 13(d)(3) of the Exchange Act),
	 
	 	     
    (iv) 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 “Incumbent
    Directors”) cease to constitute a majority of the
    Board; provided however that if the election, or nomination for
    election by the Company’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
	 
	 	     
    (v) any other event specified by the Board or a Committee,
    regardless of whether at the time an Award is granted or
    thereafter.

		
	 	     
    (m) “Director” means a member of the Board.
	 
	 	     
    (n) “Disability” means total and permanent
    disability as defined in Section 21(e)(3) of the Code.
	 
	 	     
    (o) “Effective Date” means the date on
    which the Company’s stockholders approve the Plan.
	 
	 	     
    (p) “Employee” 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) any leave
    of absence approved by the Company or (ii) 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) months following the 91st 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’s fee by the
    Company shall be sufficient to constitute “employment”
    by the Company.
	 
	 	     
    (q) “Exchange Act” means the Securities
    Exchange Act of 1934, as amended.
	 
	 	     
    (r) “Fair Market Value” means, as of any
    date, the value of a Share determined as follows:

		
	 	     
    (i) 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 The Wall Street Journal or such other source
    as the Administrator deems reliable;
	 
	 	     
    (ii) 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 The Wall Street
    Journal or such other source as the Administrator deems
    reliable; or
	 
	 	     
    (iii) In the absence of an established market for the
    Common Stock, the Fair Market Value shall be determined in good
    faith by the Administrator.

		
	 	     
    (s) “Incentive Stock Option” means an
    Option intended to qualify as an incentive stock option within
    the meaning of Section 422 of the Code and the regulations
    promulgated thereunder and as designated in the applicable
    Option Agreement.

2

 

		
	 	     
    (t) “Inside Director” means a Director who
    is an Employee.
	 
	 	     
    (u) “Nonstatutory Stock Option” means an
    Option not intended to qualify as an Incentive Stock Option
    and/or as designated in the applicable Option Agreement.
	 
	 	     
    (v) “Notice of Grant” 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.
	 
	 	     
    (w) “Officer” means a person who is an
    executive officer of the Company within the meaning of
    Section 16 of the Exchange Act and the rules and
    regulations promulgated thereunder.
	 
	 	     
    (x) “Option” means a stock option granted
    pursuant to the Plan.
	 
	 	     
    (y) “Option Agreement” 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.
	 
	 	     
    (z) “Optioned Shares” means the Shares
    subject to an Option.
	 
	 	     
    (aa) “Optionee” means the holder of an
    outstanding Option granted under the Plan.
	 
	 	     
    (bb) “Outside Director” means a Director
    who is not an Employee.
	 
	 	     
    (cc) “Parent” means a “parent
    corporation,” whether now or hereafter existing, as defined
    in Section 424(e) of the Code or any successor provision.
	 
	 	     
    (dd) “Participant” 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.
	 
	 	     
    (ee) “Plan” means this 2005 Stock and
    Incentive Plan.
	 
	 	     
    (ff) “Predecessor Plan” means the
    Illumina, Inc. 2000 Stock Plan, as amended.
	 
	 	     
    (gg) “Qualifying Performance Criteria”
    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’ results or to a designated comparison group, in each
    case as specified by the Committee in the Award: (i) cash
    flow; (ii) earnings (including gross margin, earnings
    before interest and taxes, earnings before taxes, and net
    earnings); (iii) earnings per share; (iv) growth in
    earnings or earnings per share; (v) stock price;
    (vi) return on equity or average stockholders’ equity;
    (vii) total stockholder return; (viii) return on
    capital; (ix) return on assets or net assets;
    (x) return on investment; (xi) revenue;
    (xii) income or net income; (xiii) operating income or
    net operating income; (xiv) operating profit or net
    operating profit; (xv) operating margin; (xvi) return
    on operating revenue; (xvii) market share;
    (xviii) contract awards or backlog; (xix) overhead or
    other expense reduction; (xx) growth in stockholder value
    relative to the moving average of the S&P 500 Index or a
    peer group index; (xxi) credit rating;
    (xxii) strategic plan development and implementation
    (including individual performance objectives that relate to
    achievement of the Company’s or any business unit’s
    strategic plan); (xxiii) improvement in workforce
    diversity, and (xxiv) 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) asset write-downs;
    (B) litigation or claim judgments or settlements;
    (C) the effect of changes in tax law, accounting principles
    or other such laws or provisions affecting reported results;
    (D) accruals for reorganization and restructuring programs;
    and (E) any gains or losses classified as extraordinary or
    as discontinued operations in the Company’s financial
    statements.

3

 

		
	 	     
    (hh) “Rule 16b-3” means
    Rule 16b-3 of the Exchange Act, as the same may be amended
    from time to time, or any successor to Rule 16b-3, as in
    effect when discretion is being exercised with respect to the
    Plan.
	 
	 	     
    (ii) “Service Provider” means (i) 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) an individual serving as a Director.
	 
	 	     
    (jj) “Share” means a share of the Common
    Stock, as adjusted in accordance with Section 17 hereof.
	 
	 	     
    (kk) “Stock Appreciation Right” 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 14.
	 
	 	     
    (ll) “Stock Award” means a Stock Grant, a
    Stock Unit or a Stock Appreciation Right granted under
    Sections 13 or 14 below or other similar awards granted
    under the Plan (including phantom stock rights).
	 
	 	     
    (mm) “Stock Award Agreement” 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.
	 
	 	     
    (nn) “Stock Grant” means the award of a
    certain number of Shares granted under Section 13 below.
	 
	 	     
    (oo) “Stock Unit” 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.
	 
	 	     
    (pp) “Subsidiary” means a “subsidiary
    corporation,” whether now or hereafter existing, as defined
    in Section 424(f) of the Code, or any successor provision.
	 
	 	     
    (qq) “Withholding Taxes” 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.

     
3. Stock Subject to the Plan.

     
(a) Subject to the provisions of Section 17 hereof,
the maximum aggregate number of Shares that may be issued and
sold under the Plan is 11,542,358 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 2, 2005 were either
(i) available for grant pursuant to awards that may be made
under the Predecessor Plan or (ii) 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.

     
(b) 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) 1,200,000 Shares (subject to adjustment under
Section 17), (ii) 5% of the outstanding Shares as of
the last day of the immediately preceding fiscal year or
(iii) 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.

4

 

     
(c) 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); provided, however, 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’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.

     
4. Administration of the Plan.

     
(a) Procedure.

		
	 	     
    (i) Multiple Administrative Bodies. Different
    Committees with respect to different groups of Service Providers
    may administer the Plan.
	 
	 	     
    (ii) Section 162(m). To the extent that the
    Administrator determines it to be desirable to qualify Awards
    granted hereunder as “performance-based compensation”
    within the meaning of Section 162(m) of the Code, the Plan
    shall be administered by a Committee of two or more
    “outside directors” within the meaning of
    Section 162(m) of the Code.
	 
	 	     
    (iii) Rule 16b-3. To the extent desirable to
    qualify transactions hereunder as exempt under Rule 16b-3,
    the transactions contemplated hereunder shall be structured to
    satisfy the requirements for exemption under Rule 16b-3.
	 
	 	     
    (iv) Other Administration. Other than as provided
    above, the Plan shall be administered by (A) the Board,
    (B) a Committee, which committee shall be constituted to
    satisfy Applicable Laws or (C) 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.

     
(b) Powers of the Administrator. 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:

		
	 	     
    (A) to determine the Fair Market Value of the Common Stock
    in accordance with Section 2(r) of the Plan;
	 
	 	     
    (B) to select the Service Providers to whom Awards may be
    granted hereunder;
	 
	 	     
    (C) to determine the number of Shares or amount of cash to
    be covered by each Award granted hereunder;
	 
	 	     
    (D) to approve forms of Award Agreements for use under the
    Plan;
	 
	 	     
    (E) 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;

5

 

		
	 	     
    (F) to construe and interpret the terms of the Plan and
    Awards granted pursuant to the Plan;
	 
	 	     
    (G) 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;
	 
	 	     
    (H) to modify or amend each Award (subject to
    Section 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;
	 
	 	     
    (I) 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;
	 
	 	     
    (J) 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;
	 
	 	     
    (K) to make all other determinations deemed necessary or
    advisable for administering the Plan.

     
(c) Effect of Administrator’s Decision. The
Administrator’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.

     
5. Eligibility. Nonstatutory Stock Options and Stock
Awards may be granted to Service Providers. Incentive Stock
Options and Cash Awards may be granted only to Employees.

     
6. Limitations.

     
(a) 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 6(a), Incentive Stock Options shall be taken
into account in the order in which they were granted.

     
(b) Neither the Plan nor any Award shall confer upon a
Participant any right with respect to continuing the
Participant’s relationship as a Service Provider with the
Company, nor shall they interfere in any way with the
Participant’s right or the Company’s right to
terminate such relationship at any time, with or without cause.

     
(c) The following limitations shall apply to grants of
Options and Stock Awards:

		
	 	     
    (i) No Service Provider shall be granted, in any fiscal
    year of the Company, Awards covering more than
    500,000 Shares, subject to adjustment as provided in
    Section 17 below.

6

 

		
	 	     
    (ii) 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 Shares during the
    fiscal year in which such commencement occurs, which shall not
    count against the limit set forth in
    subsection (i) above and subject to adjustment as
    provided in Section 17 below.

     
7. Term of Plan. The Plan shall become effective on
the Effective Date. Unless the Plan is terminated earlier
pursuant to Section 19 hereof, the Plan shall terminate
upon the earliest to occur of (a) June 28,
2015, (b) the date on which all Shares available for
issuance under the Plan shall have been issued as fully vested
Shares or (c) the termination of all outstanding Awards in
connection with a dissolution or liquidation pursuant to
Section 17(b) hereof or a Corporate Transaction pursuant to
Section 17(c) hereof. Should the Plan terminate on
June 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.

     
8. Term of Option. The term of each Option shall be
stated in the Option Agreement; provided, however that the term
shall be no more than ten (10) 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) years from the date of grant or such
shorter term as may be provided in the Option Agreement.

     
9. Option Exercise Price and Consideration.

     
(a) Exercise Price. 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:

		
	 	     
    (i) In the case of an Incentive Stock Option

		
	 	     
    (A) 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.
	 
	 	     
    (B) granted to any Employee other than an Employee
    described in paragraph (A) 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.

		
	 	     
    (ii) 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.
	 
	 	     
    (iii) 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.

     
(b) Waiting Period and Exercise Dates. 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.

     
(c) Form of Consideration. The Administrator shall
determine the acceptable form of consideration for exercising an
Option, including the method of payment. Such consideration may
consist entirely of:

		
	 	     
    (i) cash;
	 
	 	     
    (ii) check;
	 
	 	     
    (iii) promissory note;

7

 

		
	 	     
    (iv) other Shares which, in the case of Shares acquired
    directly or indirectly from the Company, (A) have been
    owned by the Optionee for more than six (6) 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) 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;
	 
	 	     
    (v) consideration received through a special sale and
    remittance procedure pursuant to which the Optionee shall
    concurrently provide irrevocable instructions to (A) 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) the Company to
    deliver the certificates for the purchased Shares directly to
    such brokerage firm in order to complete the sale;
	 
	 	     
    (vi) a reduction in the amount of any Company liability to
    the Optionee, including any liability attributable to the
    Optionee’s participation in any Company-sponsored deferred
    compensation program or arrangement;
	 
	 	     
    (vii) any combination of the foregoing methods of
    payment; or
	 
	 	     
    (viii) 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.

     
(d) No Option Repricings. Other than in connection
with a change in the Company’s capitalization (as described
in Section 17(a) of the Plan), the exercise price of an
Option may not be reduced without stockholder approval.

     
10. Exercise of Option.

     
(a) Procedure for Exercise; Rights as a Stockholder.

		
	 	     
    (i) 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.
	 
	 	     
    (ii) An Option shall be deemed exercised when the Company
    receives: (A) written or electronic notice of exercise (in
    accordance with the Option Agreement) from the person entitled
    to exercise the Option, and (B) full payment for the
    Optioned Shares with respect to which the Option is exercised
    and (C) 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 17
    hereof.
	 
	 	     
    (iii) 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.

8

 

     
(b) Termination of Relationship as a Service
Provider. If an Optionee ceases to be a Service Provider,
other than upon the Optionee’s death or Disability, such
Optionee may exercise his or her Option for a period of three
(3) 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.

     
(c) Disability of Optionee. If an Optionee ceases to
be a Service Provider as a result of the Optionee’s
Disability, the Optionee may exercise his or her Option within
twelve (12) 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.

     
(d) Death of Optionee. If an Optionee dies while a
Service Provider, the Option may be exercised within twelve
(12) months following Optionee’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’s
designated beneficiary, provided such beneficiary has been
designated prior to Optionee’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’s estate or by the
person(s) to whom the Option is transferred pursuant to the
Optionee’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.

     
11. Formula Option Grants to Outside Directors.
Outside Directors shall automatically be granted Options in
accordance with the following provisions:

		
	 	     
    (a) All Options granted pursuant to this Section shall be
    Nonstatutory Stock Options and, except as otherwise provided in
    this Section 11, shall be subject to the other terms and
    conditions of the Plan.
	 
	 	     
    (b) Each individual who becomes an Outside Director after
    the Effective Date shall be automatically granted an Option to
    purchase 20,000 Shares subject to adjustment as set
    forth in Section 17(a) below (the “First Option”)
    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; provided,
    however, that an Inside Director who ceases to be an Inside
    Director but who remains a Director shall not receive a First
    Option.

9

 

		
	 	     
    (c) 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 8,000 Shares subject to adjustment as set
    forth in Section 17(a) below (a “Subsequent
    Option”); 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.
	 
	 	     
    (d) The terms of a First Option or a Subsequent Option
    granted pursuant to this Section shall be as follows:

		
	 	     
    (i) The term of the Option shall be ten (10) years
    measured from the date of grant.
	 
	 	     
    (ii) 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) month period following the date of
    the Optionee’s cessation of service as a Director,
    provided, however, that the Option cannot be exercised
    after the expiration of the term of the Option. If, at the time
    of Optionee’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.
	 
	 	     
    (iii) The exercise price per Share shall be 100% of the
    Fair Market Value per Share on the date of grant of the Option.
	 
	 	     
    (iv) 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.
	 
	 	     
    (v) The Subsequent Option shall vest and become exercisable
    as to 100% of the Optioned Shares on the earlier of (i) the
    one year anniversary of the date of grant of the Option and
    (ii) the date immediately preceding the date of the annual
    meeting of the Company’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.
	 
	 	     
    (vi) If an Outside Director dies or ceases to serve as a
    Director as a result of the Outside Director’s Disability
    while holding any outstanding Option under this Section 11,
    then that Option may be exercised within six (6) 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’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

10

 

		
	 	
    Disability, the Option shall terminate with respect to those
    vested Optioned Shares, and those Optioned Shares shall revert
    to the Plan.
	 
	 	     
    (vii) 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.

		
	 	     
    (e) 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 11.

     
12. Limited Transferability of Options. 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) or
by gift or pursuant to domestic relations orders to
“Immediate Family Members” (as defined below) of the
Optionee. “Immediate Family” 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’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’s death.

     
13. Stock Grants and Stock Unit Awards. 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:

		
	 	     
    (a) Consideration. 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.
	 
	 	     
    (b) Vesting. 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.
	 
	 	     
    (c) Termination of Participant’s Relationship as a
    Service Provider. In the event a Participant’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.

11

 

		
	 	     
    (d) Transferability. 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.

     
14. Stock Appreciation Rights.

		
	 	     
    (a) General. 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.
	 
	 	     
    (b) Exercise of Stock Appreciation Right. 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.
	 
	 	     
    (c) Transferability. 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.

     
15. Cash Awards. 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) year.

		
	 	     
    (a) Cash Award. Each Cash Award shall contain
    provisions regarding (i) the target and maximum amount
    payable to the Participant as a Cash Award, (ii) the
    Qualifying Performance Criteria and level of achievement versus
    these criteria which shall determine the amount of such payment,
    (iii) the period as to which performance shall be measured
    for establishing the amount of any payment, (iv) the timing
    of any payment earned by virtue of performance,
    (v) restrictions on the alienation or transfer of the Cash
    Award prior to actual payment, (vi) forfeiture provisions,
    and (vii) 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. $1,000,000.
	 
	 	     
    (b) Performance Criteria. 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 “performance-based compensation” under
    Section 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
    “performance-based compensation” under
    Section 162(m) of the Code shall

12

 

		
	 	
    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 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 162(m)).
	 
	 	     
    (c) Timing and Form of Payment. 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.
	 
	 	     
    (d) Termination of Relationship as a Service
    Provider. The Administrator shall have the discretion to
    determine the effect of a termination as a Service Provider due
    to (i) Disability, (ii) death or (iii) otherwise
    shall have on any Cash Award.

     
16. Section 162(m) Compliance. 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 “qualified
performance-based compensation” within the meaning of
Section 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 162(m) of the Code as required under applicable
regulations and to conform the procedures related to the Award
to the requirements of Section 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 162(m).

     
17. Adjustments Upon Changes in Capitalization,
Dissolution or Corporate Transaction.

     
(a) Changes in Capitalization. Subject to any
required action by the stockholders of the Company, (i) 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) the number of Shares that may
be added annually to the Plan pursuant to Section 3(b)(i)
hereof, (iii) the number of Optioned Shares granted under
First Options and Subsequent Options under Section 11
hereof, (iv) the maximum numbers of Shares that may be
granted under Awards to any Service Provider within any fiscal
year as set forth in Section 6(c) and (v) 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;
provided, however, that conversion of any convertible
securities of the Company shall not be deemed to have been
“effected without receipt of consideration.” 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.

     
(b) Dissolution or Liquidation. 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) 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)

13

 

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.

     
(c) Corporate Transaction.

		
	 	     
    (i) In the event of a Corporate Transaction, as determined
    by the Board or a Committee, the Board or Committee may, in its
    discretion, (i) provide for the assumption or substitution
    of, or adjustment to, each outstanding Award;
    (ii) accelerate the vesting of Options and terminate any
    restrictions on Cash Awards or Stock Awards; and/or
    (iii) 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); provided, however,
    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.
	 
	 	     
    (ii) Each Option or Stock Award which is assumed pursuant
    to this Section 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) 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) the maximum number and/or class of
    securities available for issuance over the remaining term of the
    Plan, (C) 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) the maximum number and/or
    class of securities by which the share reserve is to increase
    automatically each year and (E) the number and/or class of
    securities subject to the Options granted under Section 11.

     
18. Date of Grant. The date of grant of a First
Option or Subsequent Option shall be the date on which it was
automatically granted pursuant to Section 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.

     
19. Amendment and Termination of the Plan. 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’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

14

 

would result in a repricing of Options by (x) reducing the
exercise price of outstanding Options or (y) 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’s capitalization pursuant to Section 17(a) of
the Plan.

     
20. Conditions Upon Issuance of Shares.

     
(a) 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.

     
(b) 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 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.

     
21. Inability to Obtain Authority. The inability of
the Company to obtain authority from any regulatory body having
jurisdiction (including under Section 20), which authority
is deemed by the Company’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.

     
22. Reservation of Shares. 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.

     
23. Stockholder Approval. If required by Applicable
Laws, continuance of the Plan shall be subject to approval by
the stockholders of the Company within twelve (12) 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.

15

 

ILLUMINA, INC.

2005 STOCK AND INCENTIVE PLAN

STOCK OPTION AGREEMENT

AUTOMATIC GRANT FOR NONEMPLOYEE DIRECTOR

	 	 	All capitalized terms shall have the meaning assigned to them in the attached Appendix.
	 
	24.	 	NOTICE OF GRANT

            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:

	 	 	 	 	 
	 

	 	Name of Optionee:	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Grant Date:	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Vesting Commencement
Date:	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Exercise Price per
Share:	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Number of Shares Subject
to the Option:	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Type of Option:
Nonstatutory Option	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Expiration Date:	 	 
	 	 	 	 	 

Vesting Schedule: Subject to accelerated vesting as set forth below, this Option
may be exercised, in whole or in part, in accordance with the following schedule:

[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’s continuing to be a Director on such date.]

[100% of the Optioned Shares shall vest and become exercisable on the earlier of (i) the one
year anniversary of the date of grant of this Option and (ii) the date immediately preceding
the date of the annual meeting of the Company’s stockholders for the year following the year
of grant of this Option, subject to Optionee’s continuing to be a Director on such date.]

16

 

25. AGREEMENT

     (a) 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.

     (b) Exercise of Option.

          (i) Right to Exercise. 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 B. In no event may this Option be exercised for any fractional
shares.

          (ii) Post-Service Exercisability.

                    (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) months (commencing with
the date of such cessation of service) during which to exercise this Option.

                    (B) Should Optionee die or cease to serve as a Director as a result of the Director’s
Disability while holding this Option, then the personal representative of Optionee’s estate
or the person or persons to whom this Option is transferred pursuant to Optionee’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’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’s death or termination.

                    (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’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.

                    (D) In no event shall this Option be exercisable at any time after the Expiration Date.

17

 

          (iii)
Special Acceleration of Option.

                    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) days from the date of such
notice, and this Option shall terminate upon the expiration of such period.

                    (A) This Option, to the extent it is assumed pursuant to this Paragraph 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.

                    (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.

          (iv) Method of Exercise. 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.

          (v) Method of Payment. 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:

                    b. cash;

                    (A) check;

                    (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) 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,

18

 

state and local income and employment
or other taxes required to be withheld by the Company by reason of such exercise and (ii) to
the Company to deliver the certificates for the purchased Optioned Shares directly to
E*Trade in order to complete the sale; or

                    (C) other Shares which, in the case of Shares acquired directly or indirectly from the
Company, (i) have been owned by the Optionee for more than six (6) months on the date of
surrender, and (ii) 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.

     (c) 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’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’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.

     (d) Term of Option. This Option shall have a maximum term of ten (10) 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.

     (e) Adjustment in Optioned Shares. 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’s
receipt of consideration, appropriate adjustments shall be made to (1) the total number and/or
class of securities subject to this Option and (2) 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.

     (f) 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’s estate and any beneficiaries of this Option designated by Optionee.

     (g) 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’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.

19

 

     (h) 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’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.

     (i) IMPAIRMENT OF RIGHTS.

          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’S STOCKHOLDERS TO REMOVE OPTIONEE FROM THE BOARD
AT ANY TIME IN ACCORDANCE WITH THE PROVISIONS OF APPLICABLE LAW.

          By your signature and the signature of the Company’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.

	 	 	 	 	 
	OPTIONEE:

	 	 	 	ILLUMINA, INC.
	 
	 	 	 	 
	 

	 	 	 	 
	Signature

	 	 	 	By
	 
	 	 	 	 
	 

	 	 	 	 
	Print Name

	 	 	 	Title
	 
	 	 	 	 
	Residence Address
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 

20

 

APPENDIX

          The following definitions shall be in effect under this Option Agreement:

          “Administrator” 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 4 of the Plan.

          “Applicable Laws” 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.

          “Code” means the Internal Revenue Code of 1986, as amended.

          “Common Stock” means the common stock of the Company.

          “Company” means Illumina, Inc., a Delaware corporation.

          “Consultant” means any natural person, including an advisor, engaged by the Company or
a Parent or Subsidiary to render services to such entity.

          “Corporate Transaction” means any of the following, unless the Administrator provides
otherwise:

               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),

               b) the sale of all or substantially all of the Company’s assets to any other person or
entity (other than a wholly-owned subsidiary),

               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 “group” as defined by or under Section 13(d)(3) of the Securities
Exchange Act of 1934, as amended),

               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 “Incumbent
Directors”) cease to constitute a majority of the Board; provided however that if the
election, or nomination for election by the Company’s stockholders, of any new director was
approved by a vote of at least fifty percent (50%)

21

 

of the Incumbent Directors, such new
Director shall be considered as an Incumbent Director, or

               e) any other event specified by the Board or a Committee, regardless of whether at the
time an Option is granted or thereafter.

          “Disability” means total and permanent disability as defined in Section 22(e)(3) of
the Code.

          “Employee” 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) any leave of
absence approved by the Company or (ii) 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) months following the 91st 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’s fee by the Company shall be sufficient to constitute
“employment” by the Company.

          “Exercise Price” 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.

          “Expiration Date” 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.

          “Fair Market Value” means, as of any date, the value of Common Stock determined as
follows:

                    (i) 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 The Wall Street Journal or such
other source as the Administrator deems reliable;

                    (ii) 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 The Wall
Street Journal or such other source as the Administrator deems reliable; or

                    (iii) In the absence of an established market for the Common Stock, the Fair Market Value
shall be determined in good faith by the Administrator.

22

 

          “Grant Date” means the date set forth in the Notice of Grant as the date on which the
Administrator granted this Option.

          “Incentive Stock Option” means an Option intended to qualify as an incentive stock
option within the meaning of Section 422 of the Code and the regulations promulgated thereunder.

          “Nonstatutory Stock Option” means an Option not intended to qualify as an Incentive
Stock Option and/or as designated in the applicable Option Agreement.

          “Notice of Grant” means the notice evidencing certain terms and conditions of this
Option as set forth in Part I of this document.

          “Option” means this stock option granted to Optionee pursuant to the Plan.

          “Option Agreement” means this agreement between the Company and an Optionee evidencing
the terms and conditions of this Option grant set forth in Part II of this document. The Option
Agreement is subject to the terms and conditions of the Plan.

          “Optioned Shares” means the Shares subject to this Option.

          “Optionee” means the individual to whom this Option is granted under the Plan and
named in the Notice of Grant.

          “Parent” means a “parent corporation,” whether now or hereafter existing, as defined
in Section 424(e) of the Code or any successor provision.

          “Plan” means the Illumina, Inc. 2005 Stock and Incentive Plan.

          “Share” means a share of the Common Stock, as adjusted in accordance with Section 17
of the Plan.

          “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing, as
defined in Section 424(f) of the Code or any successor provision.

23

 

ILLUMINA, INC.

2005 STOCK AND INCENTIVE PLAN

STOCK OPTION AGREEMENT

          All capitalized terms shall have the meaning assigned to them in the attached Appendix.

	1.	 	NOTICE OF GRANT

          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:

	 	 	 	 	 
	 

	 	Name of Optionee:	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Grant Date:	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Vesting Commencement Date:	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Exercise Price per Share:	 	 
	 	 	 	 	 

	 	 	 	 	 
	 

	 	Number of Shares Subject to the Option:	 	 
	 	 	 	 	 

	 	 	 	 	 	 	 	 	 
	 

	 	Type of Option:
	 	 	 	 
	 	Incentive Stock Option
	 	 	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 	 	 
	 

	 	 	 	 	 	 	 	Nonstatutory Stock Option
	 	 	 	 	 	 	 	 	 

	 	 	 	 	 
	 

	 	Expiration Date:	 	 
	 	 	 	 	 

          Vesting Schedule: Subject to accelerated vesting as set forth below, this
Option may be exercised, in whole or in part, in accordance with the following schedule:

          On the first year anniversary of the Vesting Commencement Date of this Option,
                                         of the Optioned Shares shall become exercisable, subject to Optionee’s
continuing to be a Service Provider on such date. An additional                                          of the Optioned
Shares shall become exercisable each full month thereafter, subject to Optionee’s continuing
to be a Service Provider on such date.

24

 

     27. AGREEMENT

          (a) Grant of Option.

               (i) 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.

               (ii) 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.

          (b) Exercise of Option.

               (i) Right to Exercise. 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 B. In no event may this Option be exercised for any fractional
shares.

               (ii) Post-Service Exercisability.

                    (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) months (commencing with the date of such cessation of service) during
which to exercise this Option.

                    (B) Should Optionee die while holding this Option, then the personal
representative of Optionee’s estate or the person or persons to whom this Option is
transferred pursuant to Optionee’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’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’s death.

                    (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) months
(commencing with the date of such cessation of service) during which to exercise
this Option.

25

 

                    (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’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.

                    (E) In no event shall this Option be exercisable at any time after the
Expiration Date.

               (iii) Special Acceleration of Option.

                    a. In the event of a Corporate Transaction, the Board or Committee may, in its
discretion, (i) provide for the assumption or substitution of, or adjustment to,
this Option; (ii) accelerate the vesting of this Option; and/or (iii) 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) days from the date of such notice, and this
Option shall terminate upon the expiration of such period.

                    (A) This Option, to the extent it is assumed pursuant to this Paragraph 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.

                    (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.

               (iv) Method of Exercise. 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

26

 

purchased Shares shall be
considered transferred to the Optionee on the date this Option is exercised with respect to such
purchased Shares.

               (v) Method of Payment. 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:

                    d. cash;

                    e. check;

                    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) 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) to the Company to
deliver the certificates for the purchased Optioned Shares directly to E*Trade in
order to complete the sale; or

                    g. other Shares which, in the case of Shares acquired directly or indirectly
from the Company, (i) have been owned by the Optionee for more than six (6) months
on the date of surrender, and (ii) 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.

          (c) 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’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’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.

          (d) Term of Option. This Option shall have a maximum term of ten (10) 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.

27

 

          (e)
Adjustment in Optioned Shares. 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’s
receipt of consideration, appropriate adjustments shall be made to (1) the total number and/or
class of securities subject to this Option and (2) 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.

          (f) Notice of Disqualifying Disposition of Shares. 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.

          (g) 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’s estate and any beneficiaries of this Option designated by Optionee.

          (h) 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’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.

          (i) 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’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.

          (j) NO GUARANTEE OF CONTINUED SERVICE. 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

28

 

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’S RIGHT OR THE
COMPANY’S RIGHT TO TERMINATE OPTIONEE’S RELATIONSHIP AS A SERVICE PROVIDER AT ANY TIME, WITH OR
WITHOUT CAUSE.

          By your signature and the signature of the Company’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.

	 	 	 	 	 
	OPTIONEE:

	 	 	 	ILLUMINA, INC.
	 
	 	 	 	 
	 

	 	 	 	 
	Signature

	 	 	 	By
	 
	 	 	 	 
	 

	 	 	 	 
	Print Name

	 	 	 	Title
	 
	 	 	 	 
	Residence Address
	 	 	 	 
	 
	 	 	 	 
	

	 	 	 	 

29

 

APPENDIX

          The following definitions shall be in effect under this Option Agreement:

     (1) “Administrator” 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 4 of the Plan.

     (2) “Applicable Laws” 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.

     (3) “Code” means the Internal Revenue Code of 1986, as amended.

     (4) “Common Stock” means the common stock of the Company.

     (5) “Company” means Illumina, Inc., a Delaware corporation.

     (6) “Consultant” means any natural person, including an advisor, engaged by the
Company or a Parent or Subsidiary to render services to such entity.

     (7) “Corporate Transaction” means any of the following, unless the Administrator
provides otherwise:

               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),

               b) the sale of all or substantially all of the Company’s assets to any other
person or entity (other than a wholly-owned subsidiary),

               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 “group” as defined by or under Section
13(d)(3) of the Securities Exchange Act of 1934, as amended),

               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 “Incumbent Directors”) cease to constitute a majority of the Board;
provided however that if the election, or nomination for election by the Company’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

30

 

               e) any other event specified by the Board or a Committee, regardless of whether
at the time this Option is granted or thereafter.

     (8) “Disability” means total and permanent disability as defined in Section 22(e)(3)
of the Code.

     (9) “Employee” 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) any leave
of absence approved by the Company or (ii) 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) months following the 91st 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.

     (10) “Exercise Price” 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.

     (11) “Expiration Date” 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.

     (12) “Fair Market Value” means, as of any date, the value of Common Stock determined
as follows:

               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 The Wall Street Journal or such other source as the
Administrator deems reliable;

               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 The Wall Street Journal or such other source as the
Administrator deems reliable; or

               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.

     (13) “Grant Date” means the date set forth in the Notice of Grant as the date on which
the Administrator granted this Option.

31

 

     (14) “Incentive Stock Option” means an Option intended to qualify as an incentive
stock option within the meaning of Section 422 of the Code and the regulations promulgated
thereunder.

     (15) “Nonstatutory Stock Option” means an Option not intended to qualify as an
Incentive Stock Option and/or as designated in the applicable Option Agreement.

     (16) “Notice of Grant” means the notice evidencing certain terms and conditions of
this Option as set forth in Part I of this document.

     (17) “Option” means this stock option granted to Optionee pursuant to the Plan.

     (18) “Option Agreement” means this agreement between the Company and an Optionee
evidencing the terms and conditions of this Option grant set forth in Part II of this document.
The Option Agreement is subject to the terms and conditions of the Plan.

     (19) “Optioned Shares” means the Shares subject to this Option.

     (20) “Optionee” means the individual to whom this Option is granted under the Plan and
named in the Notice of Grant.

     (21) “Parent” means a “parent corporation,” whether now or hereafter existing, as
defined in Section 424(e) of the Code or any successor provision.

     (22) “Plan” means the Illumina, Inc. 2005 Stock and Incentive Plan.

     (23) “Service Provider” means (i) 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) an
individual serving as a member of the Board of Directors of the Company.

     (24) “Share” means a share of the Common Stock, as adjusted in accordance with Section
17 of the Plan.

     (25) “Subsidiary” means a “subsidiary corporation,” whether now or hereafter existing,
as defined in Section 424(f) of the Code or any successor provision.

32

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