Document:

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                                                                   Exhibit 10.29

       FORM OF STOCK OPTION AGREEMENT UNDER 2000 STOCK PLAN FOR EMPLOYEES

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                                 ILLUMINA, INC.

                                 2000 STOCK PLAN

                             STOCK OPTION AGREEMENT

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

      I.    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, one-fifth (1/5) of the Optioned Shares shall become
            exercisable, subject to Optionee's continuing to be a Service
            Provider on such date. An additional one-sixtieth (1/60) of the
            Optioned Shares shall become exercisable each full month thereafter,
            subject to Optionee's continuing to be a Service Provider on such
            date.]

            [Beginning on the effective date of this Option, one-sixtieth (1/60)
            of the Shares subject to the Option shall become exercisable each
            full month thereafter, subject to Optionee's continuing to be a
            Service Provider on such date.]

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      II.   AGREEMENT

            A.    GRANT OF OPTION.

                  1. 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.

                  2. 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.

                  1. RIGHT TO EXERCISE. This Option shall 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 exercisable for such installments, those
installments shall accumulate, and this Option shall remain exercisable for the
accumulated installments until the Expiration Date or sooner termination under
this Paragraph. In no event may this Option be exercised for any fractional
shares.

                  2.    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, 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

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      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.

                        (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.

                  3.    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 merger or sale of assets, 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.

                        (b) 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.

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                        (c) 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.

                  4. 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.

                  5. 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:

                        (a) cash;

                        (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, state and local income and employment 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.

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            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. 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.

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            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 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

____________________________________

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                                    APPENDIX

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

      A. "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.

      B. "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
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.

      C. "CODE" means the Internal Revenue Code of 1986, as amended.

      D. "COMMON STOCK" means the common stock of the Company.

      E. "COMPANY" means Illumina, Inc., a Delaware corporation.

      F. "CONSULTANT" means any natural person, including an advisor, engaged by
the Company or a Parent or Subsidiary to render services to such entity.

      G. "CORPORATE TRANSACTION" means a merger of the Company with or into
another corporation or the sale of substantially all of the assets of the
Company.

      H. "DISABILITY" means total and permanent disability as defined in Section
22(e)(3) of the Code.

      I. "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.

      J. "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.

      K. "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.

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      L. "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.

      M. "GRANT DATE" means the date set forth in the Notice of Grant as the
date on which the Administrator granted this Option.

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

      O. "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify as
an Incentive Stock Option.

      P. "NOTICE OF GRANT" means the notice evidencing certain terms and
conditions of this Option as set forth in Part I of this document.

      Q. "OPTION" means this stock option granted to Optionee pursuant to the
Plan.

      R. "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.

      S. "OPTIONED SHARES" means the Shares subject to this Option.

      T. "OPTIONEE" means the individual to whom this Option is granted under
the Plan and named in the Notice of Grant.

      U. "PARENT" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

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      V. "PLAN" means the Illumina, Inc. 2000 Stock Plan.

      W. "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.

      X. "SHARE" means a share of the Common Stock, as adjusted in accordance
with Section 13 of the Plan.

      Y. "SUBSIDIARY" means a "subsidiary corporation," whether now or hereafter
existing, as defined in Section 424(f) of the Code.

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FORM OF STOCK OPTION AGREEMENT UNDER 2000 STOCK PLAN FOR CERTAIN INTERNATIONAL
EMPLOYEES

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                                                                         FOREIGN

                                 ILLUMINA, INC.

                                 2000 STOCK PLAN

                             STOCK OPTION AGREEMENT

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

      III.  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, one-fifth (1/5) of the Optioned Shares shall become
            exercisable, subject to Optionee's continuing to be a Service
            Provider on such date. An additional one-sixtieth (1/60) of the
            Optioned Shares shall become exercisable each full month thereafter,
            subject to Optionee's continuing to be a Service Provider on such
            date.]

            [Beginning on the effective date of this Option, one-sixtieth (1/60)
            of the Shares subject to the Option shall become exercisable each
            full month thereafter, subject to Optionee's continuing to be a
            Service Provider on such date.]

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      IV.   AGREEMENT

            A.    GRANT OF OPTION.

                  1. 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.

                  2. 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.

                  1. RIGHT TO EXERCISE. This Option shall 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 exercisable for such installments, those
installments shall accumulate, and this Option shall remain exercisable for the
accumulated installments until the Expiration Date or sooner termination under
this Paragraph. In no event may this Option be exercised for any fractional
shares.

                  2. POST-SERVICE EXERCISABILITY.

                        (d) 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.

                        (e) 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, 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

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      outstanding, upon the expiration of the twelve (12)-month period measured
      from the date of Optionee's death.

                        (f) 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.

                        (g) 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.

                        (h) For purposes of this Agreement, Optionee's period of
      Service shall not include any period of notice of termination of
      employment, whether expressed or implied. Optionee's date of cessation of
      Service shall mean the date upon which Optionee ceases active performance
      of services for the Company following the provision of such notification
      of termination or resignation from Service and shall be determined solely
      by this Agreement and without reference to any other agreement, written or
      oral, including Optionee's contract of employment.

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

            3.    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 merger or sale of assets, 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.

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<PAGE>

                        (b) 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.

                        (c) 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.

                  5. 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.

                  6. 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) 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 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

                        (f) 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.

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<PAGE>

            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.

            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. 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

                                        5
<PAGE>

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 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.

            K. FURTHER INSTRUMENTS. The parties agree to execute such further
instruments and to take such further action as may be reasonably necessary to
carry out the purposes and intent of this Agreement.

            L. AUTHORIZATION TO RELEASE NECESSARY PERSONAL INFORMATION.

                  1. Optionee hereby authorizes and directs Optionee's employer
to collect, use and transfer in electronic or other form, any personal
information (the "Data") regarding Optionee's employment, the nature and amount
of Optionee's compensation and the fact and conditions of Optionee's
participation in the Plan (including, but not limited to, Optionee's name, home
address, telephone number, date of birth, social security number (or any other
social or national identification number), salary, nationality, job title,
number of shares of Common Stock held and the details of all options or any
other entitlement to shares of Common Stock awarded, cancelled, exercised,
vested, unvested or outstanding) for the purpose of implementing, administering
and managing Optionee's participation in the Plan. Optionee understands that the
Data may be transferred to the Company or any of its Subsidiaries, or to any
third parties assisting in the implementation, administration and management of
the Plan, including any requisite transfer to a broker or other third party
assisting with the exercise of Options under the Plan or with whom shares of
Common Stock acquired upon exercise of this option or cash from the sale of such
shares may be deposited. Optionee acknowledges that recipients of the Data may
be located in different countries, and those countries may have data privacy
laws and protections different from those in the country of Optionee's
residence. Furthermore, Optionee acknowledges and understands that the transfer
of the Data to the Company or any of its Subsidiaries, or to any third parties
is necessary for Optionee's participation in the Plan.

                  2. Optionee may at any time withdraw the consents herein, by
contacting Optionee's local human resources representative in writing. Optionee
further acknowledges that withdrawal of consent may affect Optionee's ability to
exercise or realize benefits from the option, and Optionee's ability to
participate in the Plan.

                                        6
<PAGE>

            M. NO ENTITLEMENT OR CLAIMS FOR COMPENSATION.

                  1. The grant of options under the Plan is made at the
discretion of the Administrator, and the Plan may be suspended or terminated by
the Company at any time. The grant of an option in one year or at one time does
not in any way entitle Optionee to an option grant in the future. The Plan is
wholly discretionary in nature and is not to be considered part of Optionee's
normal or expected compensation subject to severance, resignation, redundancy or
similar compensation. The value of the option is an extraordinary item of
compensation which is outside the scope of Optionee's employment contract (if
any).

                  2. Optionee shall have no rights to compensation or damages as
a result of Optionee's cessation of Service for any reason whatsoever, whether
or not in breach of contract, insofar as those rights arise or may arise from
Optionee's ceasing to have rights under or be entitled to exercise this option
as a result of such cessation or from the loss or diminution in value of such
rights. If Optionee did acquire any such rights, Optionee is deemed to have
waived them irrevocably by accepting the option.

            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

____________________________________

                                       7
<PAGE>

                                    APPENDIX

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

      A. "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.

      B. "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
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.

      C. "CODE" means the Internal Revenue Code of 1986, as amended.

      D. "COMMON STOCK" means the common stock of the Company.

      E. "COMPANY" means Illumina, Inc., a Delaware corporation.

      F. "CONSULTANT" means any natural person, including an advisor, engaged by
the Company or a Parent or Subsidiary to render services to such entity.

      G. "CORPORATE TRANSACTION" means a merger of the Company with or into
another corporation or the sale of substantially all of the assets of the
Company.

      H. "DISABILITY" means total and permanent disability as defined in Section
22(e)(3) of the Code.

      I. "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.

      J. "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.

      K. "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.

                                       A-1
<PAGE>

      L. "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.

      M. "GRANT DATE" means the date set forth in the Notice of Grant as the
date on which the Administrator granted this Option.

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

      O. "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify as
an Incentive Stock Option.

      P. "NOTICE OF GRANT" means the notice evidencing certain terms and
conditions of this Option as set forth in Part I of this document.

      Q. "OPTION" means this stock option granted to Optionee pursuant to the
Plan.

      R. "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.

      S. "OPTIONED SHARES" means the Shares subject to this Option.

      T. "OPTIONEE" means the individual to whom this Option is granted under
the Plan and named in the Notice of Grant.

      U. "PARENT" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

                                      A-2
<PAGE>

      V. "PLAN" means the Illumina, Inc. 2000 Stock Plan.

      W. "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.

      X. "SHARE" means a share of the Common Stock, as adjusted in accordance
with Section 13 of the Plan.

      Y. "SUBSIDIARY" means a "subsidiary corporation," whether now or hereafter
existing, as defined in Section 424(f) of the Code.

                                      A-3
<PAGE>

 FORM OF STOCK OPTION AGREEMENT UNDER 2000 STOCK PLAN FOR NONEMPLOYEE DIRECTORS

<PAGE>

                                 ILLUMINA, INC.

                                 2000 STOCK PLAN

                             STOCK OPTION AGREEMENT

                    AUTOMATIC GRANT FOR NONEMPLOYEE DIRECTOR

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

V.    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 four year anniversaries of the Vesting Commencement
            Date of this Option, one-fourth (1/4) of the Optioned Shares shall
            become exercisable, subject to Optionee's continuing to be a Service
            Provider on such date.

<PAGE>

VI. 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.

            1. Right to Exercise. This Option shall 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 exercisable for such installments, those installments shall
accumulate, and this Option shall remain exercisable for the accumulated
installments until the Expiration Date or sooner termination under this
Paragraph. In no event may this Option be exercised for any fractional shares.

            2. Post-Service Exercisability.

                  (g) Should Optionee cease to be a Service Provider 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.

                  (h) 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, 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.

                  (i) 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.

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

            3. Special Acceleration of Option.

                  (k) 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

                                        2
<PAGE>

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
merger or sale of assets, 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.

                  (l) 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.

                  (m) 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.

            4. 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.

            5. 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:

                  (n) cash;

                  (o) 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 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

                  (p) 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.

                                        3
<PAGE>

      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.

      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.

                                        4
<PAGE>

            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

____________________________________

                                        5
<PAGE>

                                    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 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.

            "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 a merger of the Company with or into
another corporation, or the sale of substantially all of the assets of the
Company.

            "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.

            "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.

                                       A-1
<PAGE>

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

                        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;

                        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

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

            "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.

            "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.

            "Plan" means the Illumina, Inc. 2000 Stock Plan.

                                       A-2
<PAGE>

            "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.

            "Share" means a share of the Common Stock, as adjusted in accordance
with Section 13 of the Plan.

            "Subsidiary" means a "subsidiary corporation," whether now or
hereafter existing, as defined in Section 424(f) of the Code.

                                       A-3
<PAGE>

    FORM OF STOCK OPTION AGREEMENT UNDER 2000 STOCK PLAN FOR FRENCH EMPLOYEES

<PAGE>

                                                                          FRANCE

                                 ILLUMINA, INC.

                                 2000 STOCK PLAN

                             STOCK OPTION AGREEMENT

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

      VII.  NOTICE OF GRANT

            You have been granted an option (the "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: (the "Shares")

            Expiration Date: NOTE: should be not more than 9 years and 6 months
            from grant date. ___________________________________________________

            Vesting Schedule: Subject to accelerated vesting as set forth in
            this Notice of Grant and the Option Agreement, 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, one-fifth (1/5) of the Optioned Shares shall become
            vested and exercisable, subject to Optionee's continuing to be a
            Service Provider on such date. An additional one-sixtieth (1/60) of
            the Optioned Shares shall become vested and exercisable each full
            month thereafter, subject to Optionee's continuing to be a Service
            Provider on such date.]

<PAGE>

            [Beginning on the effective date of this Option, one-sixtieth (1/60)
            of the Shares subject to the Option shall become exercisable each
            full month thereafter, subject to Optionee's continuing to be a
            Service Provider on such date.]

            Provision Upon Death: Notwithstanding any other provision of the
            plan, this agreement or the notice of grant, in the event of the
            death of the Optionee, such Option may be transferred to the extent
            permitted by French law. The Option if so transferred will
            automatically accelerate and vest in full and may be exercised in
            full by the transferee within the 6-month period following the date
            of Optionee's death, as set out in Section II.B.2(b) below.

      VIII. AGREEMENT

The Company intends that this Option, granted to an Employee affiliated to the
French social scheme and as to which it is desired that the Optionee, as a
French tax resident, qualify for the favorable treatment applicable to stock
options that comply with Sections L-225-177 to L.225-186 of the French
commercial code, as it may be subsequently amended, and the relevant provisions
set forth by the French tax law , the French tax administration and the French
social security authorities (the "French Laws"). Accordingly, the terms of the
Notice of Grant and this Option Agreement having significance under the French
Laws with respect to the Optionee's being entitled to such tax treatment shall
be interpreted in accordance with the relevant provisions set forth by the
French Laws and shall otherwise be interpreted in accordance with and governed
by the laws of the state of California, as set forth in Section II.I below.

      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.

                  1. RIGHT TO EXERCISE. This Option shall 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 exercisable for such installments, those
installments shall accumulate, and this Option shall remain exercisable for the
accumulated installments until the Expiration Date or sooner termination under
this Paragraph. In no event may this Option be exercised for any fractional
shares.

                  2. POST-SERVICE EXERCISABILITY.

                              (q) 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.

                                        2
<PAGE>

                              (r) 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, 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.

                              (s) Should Optionee cease to be a Service Provider
            by reason of Disability (as defined in Article L.341-4 of the French
            "Code de la Securite Sociale") 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.

                              (t) During the limited period of post-service
            exercisability (other than in the case of death of Optionee), 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 other than death, terminate and cease to be outstanding
            with respect to any Optioned Shares for which this Option is not
            otherwise at that time exercisable.

                              (u) For purposes of this Agreement, Optionee's
            period of Service shall not include any period of notice of
            termination of employment, whether expressed or implied, unless
            otherwise required by Applicable Law (including the French Laws).
            Optionee's date of cessation of Service shall mean the date
            determined in the discretion of the Administrator based upon the
            date on which Optionee ceases active performance of services for the
            Company following the provision of such notification of termination
            or resignation from Service and shall be determined solely by this
            Agreement and without reference to any other agreement, written or
            oral, including Optionee's contract of employment.

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

                                        3
<PAGE>

                  3.    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.

                        (b) 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.

                        (c) 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.

            1. 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.

            2. 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:

                        (a) cash; or

                        (b) provided that the holding period required under
            French law is satisfied, 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

                                       4
<PAGE>

            Optioned Shares plus all applicable income and employment 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.

      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.

      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. RESTRICTION ON SALE OF THE UNDERLYING SHARES. Notwithstanding any other
      provision of the Plan, this Option Agreement (other than as otherwise
      provided in Section 3 hereof) or the Notice of Grant, the Shares acquired
      upon exercise may not be sold, exchanged, transferred, assigned, pledged,
      hypothecated or otherwise disposed of, before the expiration of the fourth
      anniversary of the Grant Date or such other period as may be required
      under French law (hereafter, the "Holding Period").

The present Holding Period is not applicable in the case of:

                  -     Death of Optionee (and the Holding Period is thus
                        automatically lifted upon death);

                  -     Disability of Optionee (and the Holding Period is thus
                        automatically lifted upon a Disability);

                  -     Compulsory retirement of Optionee provided he/she
                        exercised the Option (but only as to those Shares that
                        are vested and exercisable) at least three months before
                        the termination of his/her work contract and provided
                        that the subsequent sale of the Shares occurs after the
                        termination of the work contract;

                  -     Dismissal, provided Optionee has exercised the Option
                        (but only as to those Shares that are vested and
                        exercisable) at least three months before he/she is
                        notified of his/her dismissal and provided that the
                        subsequent sale of the Shares occurs after this date.

                                       5
<PAGE>

      F. 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.

      Pursuant to French law, in order to retain the tax qualified status of an
      option grant complying with the French Laws, the number or price of the
      underlying Shares shall only be adjusted upon the occurrence of the events
      specified under the French commercial code (Section L. 225-181) in
      accordance with French law, which are the following:

                  (i)   An increase of the company's capital reserved to its
                        existing shareholders by cash contribution,

                  (ii)  An issuance of convertible or exchangeable bonds
                        reserved to the company's existing shareholders,

                  (iii) A capitalization of premiums or earnings followed by a
                        free distribution of shares,

                  (iv)  A distribution of retained earnings either in cash or in
                        shares,

            A reduction of corporate capital by set off against losses completed
by the reduction of the number of shares.

      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. This Option may not be assigned except as expressly permitted
      under this Option Agreement.

      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

                                       6
<PAGE>

      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 on the
      one hand and the terms and conditions of the Notice of Grant or this
      Option Agreement on the other hand, the terms and conditions of the Notice
      or Grant or this Option Agreement shall prevail. Except to the extent set
      forth in the first paragraph of this Section II, this Option Agreement and
      the Notice of Grant are 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 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, SUBJECT TO THE REQUIREMENTS OF APPLICABLE
      LAW.

      K. FURTHER INSTRUMENTS. The parties agree to execute such further
      instruments and to take such further action as may be reasonably necessary
      to carry out the purposes and intent of this Agreement.

      L. AUTHORIZATION TO RELEASE NECESSARY PERSONAL INFORMATION.

            3. Optionee hereby authorizes and directs Optionee's employer to
collect, use and transfer in electronic or other form, any personal information
(the "Data") regarding Optionee's employment, the nature and amount of
Optionee's compensation and the fact and conditions of Optionee's participation
in the Plan (including, but not limited to, Optionee's name, home address,
telephone number, date of birth, social security number (or any other social or
national identification number), salary, nationality, job title, number of
shares of Common Stock held and the details of all options or any other
entitlement to shares of Common Stock awarded, cancelled, exercised, vested,
unvested or outstanding) for the purpose of implementing, administering and
managing Optionee's participation in the Plan. Optionee understands that the
Data may be transferred to the Company or any of its Subsidiaries, or to any
third parties assisting in the implementation, administration and management of
the Plan, including any requisite transfer to a broker or other third party
assisting with the exercise of Options under the Plan or with whom Shares of
Common Stock acquired upon exercise of this Option or cash from the sale of such
Shares may be deposited. Optionee acknowledges that recipients of the Data

                                       7
<PAGE>

may be located in different countries, and those countries may have data privacy
laws and protections different from those in the country of Optionee's
residence. Furthermore, Optionee acknowledges and understands that the transfer
of the Data to the Company or any of its Subsidiaries, or to any third parties
is necessary for Optionee's participation in the Plan.

            4. Optionee may at any time withdraw the consents herein, by
contacting Optionee's local human resources representative in writing. Optionee
further acknowledges that withdrawal of consent may affect Optionee's ability to
exercise or realize benefits from the Option, and Optionee's ability to
participate in the Plan.

      M. NO ENTITLEMENT OR CLAIMS FOR COMPENSATION.

            5. The grant of options under the Plan is made at the discretion of
the Administrator, and the Plan may be suspended or terminated by the Company at
any time. The grant of an option in one year or at one time does not in any way
entitle Optionee to an option grant in the future. The Plan is wholly
discretionary in nature and is not to be considered part of Optionee's normal or
expected compensation subject to severance, resignation, redundancy or similar
compensation. The value of the Option is an extraordinary item of compensation
which is outside the scope of Optionee's employment contract (if any).

            6. Optionee shall have no rights to compensation or damages as a
result of Optionee's cessation of Service for any reason whatsoever, whether or
not in breach of contract, insofar as those rights arise or may arise from
Optionee's ceasing to have rights under or be entitled to exercise this Option
as a result of such cessation or from the loss or diminution in value of such
rights. If Optionee did acquire any such rights, Optionee is deemed to have
waived them irrevocably by accepting the Option.

      N. TAX WITHHOLDING.

            1. Optionee hereby acknowledges and agrees that the ultimate
liability for any and all tax, social insurance and payroll tax withholding
("Tax-Related Items"), if payable, is and remains his or her responsibility and
liability, and that his or her employer, the Company and its Subsidiaries:

                        (a) make no representations or undertakings regarding
      the treatment of any Tax-Related Items in connection with any aspect of
      this Option, including the grant, vesting or exercise of the Option and
      the subsequent sale of the Optioned Shares acquired pursuant to such
      exercise; and

                                       8
<PAGE>

                        (b) do not commit to structure the terms of the grant or
      any aspect of this Option to reduce or eliminate his or her liability for
      Tax-Related Items.

            2. Optionee agrees that prior to exercise, assignment, release or
cancellation of this Option, he or she shall pay or make adequate arrangements
satisfactory to the Company and/or his or her employer, as applicable, to
satisfy all withholding obligations of the Company and/or his or her employer.
In this regard, Optionee authorizes the Company and/or his or her employer to
withhold all applicable Tax-Related Items legally payable by him or her from his
or her wages or other cash compensation paid to him or her by the Company and/or
his or her employer, or from proceeds of sale. In addition, Optionee agrees and
acknowledges that the Company may (but will under no circumstances be obligated
to) sell or arrange for the sale of Optioned Shares that Optionee is due to
acquire to meet the minimum withholding obligation for Tax-Related Items. Any
estimated withholding which is not required in satisfaction of any Tax-Related
Items will be repaid to Optionee by the Company or his or her employer, as
applicable. Finally, Optionee agrees that he or she shall pay to the Company or
his or her employer, as applicable, any amount of any Tax-Related Items that the
Company and/or his or her employer may be required to withhold as a result of
his or her participation in the Plan or his or her purchase of the Shares that
cannot be satisfied by the means previously described. Optionee
acknowledges and agrees that the Company may refuse to honor the exercise and
refuse to deliver Shares if such withholding amounts are not delivered at the
time of exercise.

            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.

                                       9
<PAGE>

OPTIONEE:                                   ILLUMINA, INC.

________________________________            ________________________________
Signature                                   By

________________________________            ________________________________
Print Name                                  Title

________________________________
Residence Address

________________________________

                                       10
<PAGE>

                                    APPENDIX

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

      A. "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.

      B. "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
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.

      C. "CODE" means the Internal Revenue Code of 1986, as amended.

      D. "COMMON STOCK" means the common stock of the Company.

      E. "COMPANY" means Illumina, Inc., a Delaware corporation.

      F. "CONSULTANT" means any natural person, including an advisor, engaged by
the Company or a Parent or Subsidiary to render services to such entity.

      G. "CORPORATE TRANSACTION" means a merger of the Company with or into
another corporation or the sale of substantially all of the assets of the
Company.

      H. "DISABILITY" is defined in Article L.341-4 of the French "Code de la
Securite Sociale".

      I. "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.

      J. "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.

      K. "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.

      L. "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

                                       A-1
<PAGE>

      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.

      M. "GRANT DATE" means the date set forth in the Notice of Grant as the
date on which the Administrator granted this Option.

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

      O. "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify as
an Incentive Stock Option.

      P. "NOTICE OF GRANT" means the notice evidencing certain terms and
conditions of this Option as set forth in Part I of this document.

      Q. "OPTION" means this stock option granted to Optionee pursuant to the
Plan.

      R. "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.

      S. "OPTIONED SHARES" means the Shares subject to this Option.

      T. "OPTIONEE" means the individual to whom this Option is granted under
the Plan and named in the Notice of Grant.

      U. "PARENT" means a "parent corporation," whether now or hereafter
existing, as defined in Section 424(e) of the Code.

      V. "PLAN" means the Illumina, Inc. 2000 Stock Plan as amended and restated
through July 13, 2004.

                                       A-2
<PAGE>

      W. "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.

      X. "SHARE" means a share of the Common Stock, as adjusted in accordance
with Section 13 of the Plan.

      Y. "SUBSIDIARY" means a "subsidiary corporation," whether now or hereafter
existing, as defined in Section 424(f) of the Code.

                                       A-3<PAGE>
                                                                   Exhibit 10.05

                      ALLEGHANY CORPORATION RETIREMENT PLAN

                  (As Amended and Restated as of July 1, 2004)

     This document sets forth the Alleghany Corporation Retirement Plan, as
amended and restated as of July 1, 2004.

     The Plan, as so amended and restated, is intended to be a plan which is
unfunded and is maintained by Alleghany Corporation primarily for the purpose of
providing deferred compensation for a select group of management or highly
compensated employees both within the meaning, and for the purposes of, Sections
201(2), 301(a)(3) and 401(a)(1) of the Employee Retirement Income Security Act
of 1974, as amended.

     The rights under the Plan of any person who retired or otherwise terminated
employment with Alleghany Corporation before the effective date of a particular
amendment shall be determined solely under the terms of the Plan as in effect on
the date of such retirement or other termination of employment, without regard
to such amendment, except that such person's benefit under the Plan may be paid
at such time, and in such form, as may be permitted under the terms of the Plan
as in effect on the date as of which the payment of such person's benefit
commences.

                                    ARTICLE I
                                   DEFINITIONS

     1.01 "Actuarial Equivalent" means with respect to a benefit, an equivalent
amount or amounts computed on the basis of the factors or rates contained in
Exhibit I attached hereto.

     1.02 "Applicable Exclusion Ratio" means the exclusion ratio provided for in
Section 72 of the Code and the Treasury Regulations thereunder which is
applicable to the annual retirement benefit payable to a Participant as an
annuity for his life at the Participant's Early, Normal or Late Retirement Date,
as the case may be.

     1.03 "Average Salary" means, with respect to any Participant, the sum of
(i) the annual average of his Base Compensation for the three consecutive
calendar years, in the period of ten calendar years that ends with the calendar
year in which he has a Termination of Employment, which results in the highest
such average, and (ii) one-half (1/2) of the average of his Incentive
Compensation for the five consecutive calendar years, in the period of ten
calendar years that ends with the calendar year in which he has Termination of
Employment, which results in the highest such average. If the Participant was
not employed by the Company for three consecutive calendar years or five
consecutive calendar years, as the case may be, then his Average Salary shall be
computed by using the annual average of his Base Compensation or one-half of the
average of his Incentive Compensation, as applicable, for all full calendar
years during which he was so employed, or if none, then for his entire period of
such employment.

     1.04 "Base Compensation" means the base salary earned by an Employee for
the relevant period (whether or not such compensation is currently payable or
deferred) for his services as such, which base salary shall not include (by way
of illustration and not limitation)

<PAGE>

any non-cash compensation, annual incentive bonuses, long term incentive
bonuses, restricted stock or other extraordinary compensation, payments,
allowances or reimbursements.

     An Employee shall be treated as earning Base Compensation, for the period
which begins on the date on which he becomes is Totally Disabled, and which ends
on the date of his Termination of Employment, in an amount which is equal to his
annual rate of base salary immediately prior to the date on which he becomes
Totally Disabled. Such amount shall be adjusted on the first day of each Plan
Year included in such period to take into account the percentage increase, if
any, in the CPIU over the previous Plan Year. The "CPIU" is the U.S. City
Average All Items Consumer Price Index for all Urban Consumers, published by the
U.S. Department of Labor, Bureau of Labor Statistics, or any successor index
designated by the Department of Labor.

     1.05 "Beneficiary" means the person or persons last designated by a
Participant to receive benefits under Article VI following the Participant's
death. If all the persons so designated are individuals and if there is no such
individual living at the death of the Participant, or if no such person has been
designated, then the Participant's Beneficiary shall be his estate.

     1.06 "Benefit Accrual Service" means the number of years determined under
Section 4.02. In general, Benefit Accrual Service is used to determine the
amount of the annual retirement benefit to which a Participant is entitled
pursuant to Article V.

     1.07 "Board" means the Board of Directors of the Company or the Executive
Committee thereof.

     1.08 "Code" means the Internal Revenue Code of 1986, as amended.

     1.09 "Company" means Alleghany Corporation excluding any operating
divisions of Alleghany Corporation.

     1.10 "Component Members" means (a) the Company; (b) any corporation which
is a member of a controlled group of corporations (within the meaning of Section
1563(a) of the Code, determined without regard to Sections 1563(a)(4) and
(e)(3)(C), provided such group includes the Company; (c) any trade or business
(whether or not incorporated) which is controlled by, or under common control
with, the Company under the regulations promulgated pursuant to Section 210(b)
or (c) of ERISA; and (d) any other entity (whether or not incorporated)
designated as a Component Member by the Board.

     1.11 "Early Retirement Date" means, with respect to any Participant, the
first day of the calendar month coinciding with or next following the latest of
(a) the date on which he incurs a Termination of Employment, (b) the date on
which he attains age 55, or (c) the date (not later than his Normal Retirement
Date) elected by him (where such election is made in accordance with the rules
in Section 6.09).

     1.12 "Effective Date" means January 1, 1989.

                                        2

<PAGE>

     1.13 "Employee" means any individual in the employ of the Company.

     1.14 "Employment Commencement Date" means the first day on which an
Employee performs an Hour of Service with the Company.

     1.15 "ERISA" means the Employee Retirement Income Security Act of 1974 and
regulations thereunder, as from time to time amended and in effect.

     1.16 "Gross-Up Payment" means a distribution pursuant to Article VII in
respect of the Income Taxes which may be imposed upon a Participant by reason of
an Income Amount.

     1.17 "Hour of Service"

          (a) An "Hour of Service" means each hour for which either:

               (i) An Employee is directly or indirectly paid or entitled to
          payment by a Component Member for the performance of duties;

               (ii) Back pay, irrespective of mitigation of damages, has been
          awarded to him or agreed to be paid to him by a Component Member; or

               (iii) Each hour (but not in excess of 501 hours in any continuous
          period) for which he is directly or indirectly paid or entitled to
          payment by a Component Member for reasons (such as vacation, sickness
          or disability) other than the performance of duties.

          (b) Hours of Service shall be credited whether occurring before or
     after the Effective Date, except that such hours shall not be credited if
     the employer in question was not a Component Member at the time they would
     otherwise be counted. Hours of Service shall be determined pursuant to the
     rules promulgated by the Plan Administrator, and in the absence of any
     inconsistent rules, shall be determined in accordance with Department of
     Labor Regulations 2530.200b-2 and -3.

          (c) An Employee who becomes Totally Disabled shall be credited, for
     the period which begins on the date on which he becomes Totally Disabled,
     and which ends on the date of his Termination of Employment, with Hours of
     Service at the rate with which he was being credited with Hours of Service
     immediately before such period began.

     1.18 "Incentive Compensation" means the amount of the cash bonus payable to
an Employee in respect of the relevant period (whether or not such amount is
currently paid or deferred) under the Company's Management Incentive Plan (or
any plan adopted by the Board in replacement of such plan).

     An Employee shall be treated as earning Incentive Compensation, for the
period which begins with the calendar year during which he becomes Totally
Disabled, and which ends with

                                        3

<PAGE>

the calendar year in which his Termination of Employment occurs (the "Disability
Period"), in an amount which is equal to his average annual rate of Incentive
Compensation. For this purpose, an Employee's average annual rate of Incentive
Compensation shall mean the average of the Employee's Incentive Compensation for
(a) the five consecutive calendar years in the period of the ten calendar years
which immediately precedes the start of the Disability Period and which results
in the highest such average, or (b) for the calendar years during which he was
employed by the Company, if he had not been employed by the Company for at least
5 consecutive calendar years. Such average annual rate of Incentive Compensation
shall be adjusted, for each calendar year in the Disability Period, to take into
account the percentage increase, if any, in the CPIU (as defined in Section
1.04) over the previous calendar year.

     1.19 "Income Taxes" means all Federal, state and local income or employment
taxes which may be imposed upon a Participant by reason of participation in the
Plan, including by reason of any distribution of retirement benefits or Gross-Up
Payments provided under the Plan.

     1.20 "Income Amount" means that amount which is currently includable under
the Code (or applicable State or local tax law) in gross income during any Plan
Year by reason of the participation of the Participant in the Plan or any
distributions of retirement benefits under the Plan (not including any Gross-Up
Payments).

     1.21 "Late Retirement Date" means the first day of the calendar month
coinciding with or next following the date on which a Participant incurs a
Termination of Employment after his Normal Retirement Date.

     1.22 "Normal Retirement Date" means the first day of the calendar month
coinciding with or next following the date on which a Participant attains age
65.

     1.23 "Participant" means an Employee who has been selected to participate
in the Plan as provided in Article II and who has any accrued retirement
benefits under the Plan which have not been distributed in full to him (or his
Beneficiary).

     1.24 "Plan" means the plan set forth herein as modified or amended from
time to time.

     1.25 "Plan Administrator" means the person serving from time to time as the
Treasurer of the Company, or if no person is so serving at the time of
reference, then the Company.

     1.26 "Plan Year" means a calendar year.

     1.27 "Prior Plan" means the Retirement Plan of Alleghany Corporation in
effect on December 31, 1988 and any plan designated therein as a "Prior Plan."

     1.28 "Prior Plan Accrued Benefit" means that benefit payable annually in
the form of a straight life annuity, commencing at age 65, to a Participant by
reason of an accrued benefit under the Prior Plan in an amount set forth
opposite his name on Exhibit II attached hereto.

                                        4

<PAGE>

     1.29 "Termination of Employment" means, and an Employee shall be treated as
having incurred, a termination of employment as of the first date on which he is
no longer in the employ of the Company or any other Component Member or on the
date he ceases for any reason to be an officer of the Company, as provided in
the By-Laws of the Company. A Participant who becomes Totally Disabled shall be
treated as having incurred a Termination of Employment on the earliest of the
date on which he ceases to be Totally Disabled, his Normal Retirement Date or
the date of his death.

     1.30 "Totally Disabled" means a physical and/or mental incapacity of such
condition that it qualifies an individual (after the waiting period required
thereunder) for benefits under the Alleghany Corporation Group Long-Term
Disability Plan, as in effect from time to time.

                                   ARTICLE II
                                  PARTICIPATION

     2.01 Participation.  Each Employee who has been elected by the Board to the
position of an officer of the Company, as provided in the By-Laws of the Company
and who is designated by the Board to participate in the Plan shall become a
Participant effective on the later of the date he completes his first Hour of
Service or the date specified by the Board.

     2.02 Re-Employment of Former Participant.  If a Participant who incurred a
Termination of Employment shall again become an Employee and he is again
designated by the Board to participate in the Plan, such Employee shall again
become a Participant, effective on the later of the date he completes his first
Hour of Service following his re-employment or the date specified by the Board.
A former Participant who again becomes an Employee, but is not designated by the
Board to participate in the Plan, shall not again become a Participant and his
Benefit Accrual Service and Compensation during his subsequent period of
employment shall be disregarded in calculating his benefits under this Plan.

                                  ARTICLE III
                                     VESTING

     3.01 Vesting at Age 55.  A Participant's right to his retirement benefit as
determined pursuant to Article V shall be nonforfeitable upon his attainment of
age 55 while he is employed by a Component Member.

     3.02 Vesting before Age 55.  A Participant who has not attained age 55 has
a nonforfeitable right to 100 percent of his retirement benefit as determined
pursuant to Article V when he has completed 5 Years of Vesting Service,
provided, however, that:

          (a) Such benefit shall be forfeited (except as provided in Article VI)
     in the event of his death; and

                                        5

<PAGE>

          (b) Payment of such benefit may be suspended for such period as the
     Employee is employed, subsequent to commencement of payment thereof, by a
     Component Member.

     3.03 Year of Vesting Service.  For purposes of this Article III, a Year of
Vesting Service means each Plan Year (whether before or after the Effective
Date) during which the Employee has completed 1,000 Hours of Service. Years of
Vesting Service shall be based only upon an Employee's most recent period of
continuous employment with Component Members.

     3.04 Termination before Vesting.  A Participant who terminates his
employment with a Component Member prior to age 55 and before he has completed 5
Years of Vesting Service shall not be entitled to any benefits under this Plan
unless he is thereafter re-employed by a Component Member.

     3.05 Special Grants of Vesting Service.  The Board by resolution may grant
Vesting Service to a Participant for such period prior to the Employee's current
employment with a Component Member as the Board shall determine, which grant for
such period shall be set forth opposite his name on Exhibit III attached hereto.

                                   ARTICLE IV
                               ACCRUAL OF BENEFITS

     4.01 Service Required for Benefits.  The amount of any retirement benefit
payable to a Participant or former Participant following his Termination of
Employment shall be based on his Benefit Accrual Service and his Average Salary.

     4.02 Benefit Accrual Service.  Benefit Accrual Service shall be determined
as follows:

          (a) For Plan Years beginning prior to the Effective Date, a
     Participant shall be credited with that period of Benefit Accrual Service
     which is opposite his name as set forth on Exhibit II attached hereto;

          (b) For any Plan Year beginning on or after the Effective Date, a
     Participant shall be credited with one year of Benefit Accrual Service if
     he has 1,000 Hours of Service with the Company for that year, including any
     such hours occurring after his Normal Retirement Date. If a Participant was
     not vested in any of his retirement benefits under the Plan at the time of
     his Termination of Employment, then if he again becomes an Employee, his
     Benefit Accrual Service shall be based only upon his most recent period of
     continuous employment with the Company.

     4.03 Special Grants of Benefit Accrual Service.  The Board by resolution
may grant Benefit Accrual Service to a Participant for such period prior to the
Participant's current employment with a Component Member as the Board shall
determine, which grant for such period shall be set forth opposite his name on
Exhibit III attached hereto.

                                        6

<PAGE>

                                   ARTICLE V
                               RETIREMENT BENEFITS

     5.01 Retirement Benefit at Normal Retirement Date.  The annual retirement
benefit of a Participant, in the form of an annuity for his life payable monthly
beginning on his Normal Retirement Date, shall equal the difference between:

          (a) the product of (i) 52.7625% of the Participant's Average Salary
     reduced by 33.5% of the amount the Participant would receive as a primary
     benefit under the Social Security Act as in effect on the date of
     calculation if he continued to work until his Normal Retirement Date with
     wages, for purposes of that Act, equal to his most recent rate of Base
     Compensation; times (ii) a fraction, not greater than one, the numerator of
     which is the number of his years of Benefit Accrual Service and the
     denominator of which is 15; and

          (b) 67% of his Prior Plan Accrued Benefit.

     5.02 Retirement Benefit at Late Retirement Date.

     The annual retirement benefit of a Participant who terminates employment
with a Component Member after his Normal Retirement Date, in the form of an
annuity for his life payable monthly beginning on his Late Retirement Date,
shall be equal to the annual benefit determined in accordance with the formula
in Section 5.01 based on the Participant's Prior Plan Accrued Benefit calculated
at his Normal Retirement Date and his years of Benefit Accrual Service, Social
Security benefit and Average Salary calculated as of his Late Retirement Date,
then increased by the percentage which the annuity factor derived from the
actuarial assumptions set forth in Section 1 in Exhibit I at age 65 is of the
annuity factor derived from such actuarial assumptions at his age at his Late
Retirement Date; provided, however, that for any Participant who had attained
his Normal Retirement Date on or before March 31, 1995, his retirement benefit
as of his Late Retirement Date shall equal the product of: (a) the Actuarial
Equivalent, determined at the earlier of (i) March 31, 1995 or (ii) his Late
Retirement Date, of the benefit determined in accordance with the formula in
Section 5.01 (a) on the Effective Date, minus 67% of the Actuarial Equivalent of
his Prior Plan Accrued Benefit payable at the earlier of (i) March 31, 1995 or
(ii) his Late Retirement Date, times (b) the percentage which the annuity factor
derived from the actuarial assumptions set forth in Section 1 in Exhibit I based
upon his age on March 31, 1995, bears to the annuity factor so derived at his
age at his Late Retirement Date.

     5.03 Retirement Benefit before Normal Retirement Date.  The annual
retirement benefit of a Participant who terminated his employment with a right
to a nonforfeitable retirement benefit and who has attained age 55, in the form
of an annuity for his life payable monthly beginning on his Early Retirement
Date, shall be the Actuarial Equivalent of the annual benefit determined under
Section 5.01.

     5.04 Social Security Calculations and Reduction.  With respect to a
Participant (or Beneficiary) who is receiving a benefit under the Plan or a
Participant who has a Termination of Employment with a vested right to such a
benefit, such benefit shall not be reduced by any

                                        7

<PAGE>

increase in the level of benefits payable under Title II of the Social Security
Act or in the wage base under Title 11 of the Social Security Act which occurs
subsequent to the commencement of benefit payments or Termination of Employment.

     For purposes of all calculations of Social Security benefits under the
Plan, all earnings with Component Members shall be included and the
Participant's earnings in calendar years preceding the earliest complete
calendar year of employment with Component Members shall be deemed to reflect a
progression equivalent to that used for indexing earnings under the provisions
of the Social Security Act.

     5.05 Reduction for Prior Distributions.  In the case of any Participant
identified on Exhibit IV who received a prior distribution on account of all or
any part of the Participant's then accrued retirement benefits under the Plan
pursuant to Section 6.14, the retirement benefits calculated under Section 5.01,
5.02 or 5.03, as the case maybe, and subsequently payable to such Participant
shall be reduced.

     In the case of a Participant identified on Exhibit IV as having received a
lump sum distribution, the annual retirement benefit determined under Section
5.01, 5.02 or 5.03, as the case maybe, of the Participant shall be reduced (but
not below zero) by the Actuarial Equivalent of the annual annuity which would be
payable monthly for the Participant's life beginning on his Early, Normal or
Late Retirement Date, as the case may be, based upon (i) the lump sum amount
identified in Exhibit IV increased by (ii) the Interest Accumulation Factor in
Exhibit I from September 15, 2004 until the Participant's Early, Normal or Late
Retirement Date, as the case may be. In the case of a Participant identified on
Exhibit IV as having received a distribution of an annuity contract, the annual
retirement benefit determined under Section 5.01, 5.02 or 5.03, as the case may
be, of the Participant shall be reduced (but not below zero) by (i) the amount
of the annual annuity that would be payable monthly to the Participant for his
life only identified in Exhibit IV plus (ii) the Actuarial Equivalent of the
annual amount of the annuity that would be payable monthly to the Participant
for his life beginning on his Early, Normal or Late Retirement Date, as the case
may be, based upon the sum of the monthly life annuity payments received by the
Participant under the annuity contract from October 1, 2004 until the
Participant's Early, Normal or Late Retirement Date, as the case may be.

                                   ARTICLE VI
                          FORMS OF RETIREMENT BENEFITS

     6.01 Calculation of Amount of Benefit Payments.  All forms of retirement
benefit distribution under this Article VI shall be the Actuarial Equivalent of
the actual retirement benefit payable, in the form of an annuity for the
Participant's life.

     6.02 Automatic Forms of Benefit.

          (a) Unless he shall elect to the contrary, a Participant who is
     married on the first day on which an amount is payable in accordance with
     Section 6.11 (the "Annuity Starting Date") shall receive a retirement
     benefit for his life payable monthly with a survivor annuity payable for
     the life of his spouse to whom he was married on the

                                       8

<PAGE>

     Annuity Starting Date which is equal to 50% of the benefit payable during
     the Participant's life.

          (b) Unless he shall elect to the contrary, a Participant who is not
     married on the Annuity Starting Date shall receive for his life the
     retirement benefit as provided in Section 5.01, 5.02, or 5.03, as the case
     may be.

     6.03 Retirement Death Benefit for Spouse.

          (a) Prior to Normal Retirement Date. If a Participant (i) has a
     nonforfeitable retirement benefit under Article III, (ii) dies before the
     earlier of (x) his Annuity Starting Date and (y) his Normal Retirement
     Date, and (iii) has a surviving spouse, then his surviving spouse shall
     receive a Pre-Normal Retirement Survivor Annuity (as defined below).

     For purposes of this Article, a Pre-Normal Retirement Survivor Annuity
shall mean an annuity for the life of the surviving spouse of the Participant
where the amount of the retirement benefit to the surviving spouse shall be the
same as the amount of the retirement benefit that would have been paid to the
spouse under Section 6.02(a) if

               (i) in the case of a Participant who dies after attaining age 55,
          the Participant had retired with an immediate joint and 50% survivor
          annuity on the day before his or her death; or

               (ii) in the case of a Participant who dies on or before attaining
          age 55, the Participant had separated from service on the date of his
          or her death, survived until age 55, and retired at that time with a
          joint and 50% survivor annuity as determined under Section 6.02(a).

          (b) After Normal Retirement Date. If a Participant (i) dies after
     attaining his Normal Retirement Date and (ii) has a surviving spouse, then
     his surviving spouse shall receive a Post-Normal Retirement Survivor
     Annuity (as defined below).

     For purposes of this Article, a Post-Normal Retirement Survivor Annuity
shall mean an annuity for the life of the surviving spouse of the Participant
where the amount of the retirement benefit to the surviving spouse shall be the
same as the amount of the retirement benefit that would have been paid to the
spouse under Section 6.06 if the Participant had retired with an immediate joint
and 100% survivor annuity on the day before his or her death.

     6.04 Single Life Option.  In lieu of the form of benefit provided for by
Section 6.02(a), a married Participant may elect to receive the single life
option, under which the Participant's retirement benefit shall consist of
monthly payments which shall continue for as long as the Participant lives after
retirement.

     6.05 Period Certain Option.  In lieu of the form of benefit provided for by
Section 6.02, a Participant may elect to receive the period certain option,
under which the Participant shall

                                        9

<PAGE>

receive a retirement benefit payable in equal monthly installments during his
lifetime and ending with the payment due on the first day of the month in which
the Participant's death occurs, but with the provision that not less than 120
monthly installments shall be made to him or to his Beneficiary or alternate
Beneficiary. If such Participant and Beneficiaries all die before the 120
monthly payments have been made, the commuted value of the balance shall be paid
in a lump sum to the estate of the last to survive of the Participant and his
Beneficiaries.

     6.06 Joint and Survivor Option.  In lieu of the form of benefit provided
for by Section 6.02, a Participant who so elects shall receive a monthly
retirement benefit for his life with a survivor annuity for the life of his
Beneficiary which is equal to 50% or 100% of the monthly benefit for the
Participant's life.

     6.07 Lump Sum Option.  In lieu of the form of benefit provided for by
Section 6.02, a Participant who so elects shall receive a lump sum distribution
of the retirement benefit to which he would be entitled.

     6.08 Cash-out of Benefits.

          (a) If a Participant ceases to be an Employee prior to his Early
     Retirement Date and has a nonforfeitable right to his retirement benefit
     under Article III, such Participant may elect under this Section 6.08 to
     receive, in lieu of the periodic benefit payments as provided in this
     Article VI commencing at his Early or Normal Retirement Date, a lump sum
     which is the Actuarial Equivalent of the retirement benefit to which he
     would become entitled at age 65.

          (b) A former Participant who has received a lump sum payment under
     Section 6.08 or Section 6.12 (but not Section 6.14) and later becomes
     re-employed by the Company and becomes a Participant again, upon his
     subsequent retirement shall be entitled to a benefit based on the total
     amount of his Benefit Accrual Service and his Average Salary at the time he
     again terminates his employment with Component Members but reduced by the
     then Actuarial Equivalent of the lump sum previously distributed to him.

     6.09 Elections.  All elections under this Article VI (other than an
election made pursuant to Section 6.14), including but not limited to, any
election made under Section 6.08, must be made by the later of (i) September 30,
2004 or (ii) the date that is thirty (30) days after the date the individual is
designated by the Board to participate in the Plan or becomes a Participant,
whichever is later. A Participant may make a new election (which shall revoke
all prior elections), but no such new election shall be given effect (and,
instead such prior election shall be given effect) unless such new election is
filed with the Plan Administrator more than one (1) year prior to the earlier to
occur of (i) the commencement date of the payment of the Participant's
retirement benefit under the prior election or (ii) the commencement date of the
payment of the Participant's retirement benefit under the new election. Each
election shall be in writing on a form provided by the Plan Administrator, and
shall specify the form of benefit the

                                       10

<PAGE>

Participant elects and the commencement date of the payment of such benefit.
There shall be no limit on the number of times a Participant may make or revoke
an election.

     6.10 Death Benefits.  No benefits shall be payable under the Plan after
death unless specifically provided for in the Plan.

     6.11 Commencement of Benefits.  Payment of a Participant's retirement
benefit shall commence on the date that the Participant elects, but in no event
may such date precede the date of the Participant's Termination of Employment .
In the absence of a Participant's effective election, payment of a Participant's
retirement benefit shall commence on the later of (x) the first day of the
calendar month coinciding with or next following the date the Participant has a
Termination of Employment or (y) the date the Participant attains his Normal
Retirement Date.

     In the case of a Participant who dies before his Annuity Starting Date and
who has a surviving spouse who is entitled to receive a Pre- or Post-Normal
Retirement Survivor Annuity, such Pre- or Post-Normal Retirement Survivor
Annuity shall commence (unless the Participant had elected prior to his death or
his surviving spouse elects otherwise after his death pursuant to Section 6.09,
applied as if the surviving spouse were the Participant), in the case of a
Participant who dies after attaining age 55, as of the first day of the month
coinciding with or next following the Participant's death, or, in the case of a
Participant who dies on or before attaining age 55, the first day of the month
coinciding with or next following the date the Participant would have attained
age 55.

     6.12 Small Benefits.  If any monthly payment that would otherwise be made
to any person under the Plan is less than $1,000, then, if the Plan
Administrator shall so direct, the aggregate of the amounts which shall be paid
to such person in any year shall be paid in quarterly, semiannual or annual
installments. If the present value of the nonforfeitable retirement benefit of
any Participant on the date of his Termination of Employment or the Survivor
Annuity payable to the surviving spouse of a Participant on the date of his
death, in either case, does not exceed $50,000, then an amount equal to such
present value shall be paid to him in a lump sum in lieu of any benefits to
which he may be entitled to under Article V.

     6.13 Termination of Benefit.  If the period of any retirement benefit is
measured by the life of an individual, the last payment shall be the last
payment due prior to the death of the individual.

     6.14 Special In-Service Distributions.  Each Participant identified on
Exhibit IV shall have the right to elect to receive in respect of all or part of
such Participant's then accrued benefit under the Plan the lump sum amount
identified in Exhibit IV identified opposite such Participant's name or an
annuity contract issued by an insurance company based upon the amount of the
immediate pay annual annuity that would be payable monthly to the Participant
for his life only identified in Exhibit IV opposite such Participant's name;
provided, that if such Participant is married, his spouse consents to the form
and time of such payment. A Participant's election to receive such distribution
shall be in such form, and contain such provisions, as the Plan Administrator
shall prescribe.

                                       11

<PAGE>

     6.15 Method of Payment.  The Plan Administrator shall, in its sole
discretion, decide whether retirement benefits payable other than as a lump sum
are to be paid directly by the Company or by means of annuity contracts
purchased from one or more insurance companies. Such decision may be different
as between different Participants.

                                  ARTICLE VII
                                GROSS-UP PAYMENTS

     7.01 Gross-Up Payment.  The retirement benefits payable under the Plan are
intended to represent a net-after tax amount. Therefore, at the time of each
distribution to a Participant of retirement benefits under the Plan, there shall
also be distributed to such Participant an amount equal to the sum necessary to
reimburse the Participant for the entire amount of Income Taxes incurred in
respect of the inclusion in the Participant's gross income for such Plan Year of
(i) the Income Amount and (ii) the Gross-Up Payment.

     In addition, if a Participant receives his benefits in the form of an
annuity contract issued by an insurance company and if the number of annuity
payments received by the Participant exceeds the number of payments taken into
account in calculating his Applicable Exclusion Ratio, then thereafter there
shall also be distributed each Plan Year to such Participant an amount equal to
the sum necessary to reimburse the Participant for the entire amount of Income
Taxes incurred in respect of the inclusion in the Participant's gross income of
(i) the amount of the annuity payments thereafter received in such Plan Year
times such Applicable Exclusion Ratio plus (ii) the Gross-Up Payment.

     7.02 Calculation of Gross-Up Payment.  In calculating the amount of any
Gross-Up Payments to a Participant, the Plan Administrator shall assume that the
Federal income tax rate applicable to such Participant is the highest marginal
rate specified in Section 1(a) of the Code that would apply to such Participant
if his compensation income from the Company (without giving regard to any
deferred compensation arrangement) and any distribution of retirement benefits
from the Plan ("Alleghany Income") were his only source of income. The Plan
Administrator shall further assume that any Participant who is subject to state
or local income tax in respect of his Alleghany Income is taxable at the highest
marginal rate that would apply if his Alleghany Income were his only source of
income in each such state or local jurisdiction in which he is taxable for such
year on his Alleghany Income; provided that the Plan Administrator shall give
effect to any Federal income tax deductions available with respect to such state
and local income taxes. In determining the amount of any employment taxes, the
Plan Administrator shall take into account the actual state of facts which
exists with respect to such Participant's Alleghany Income. The sum of the
federal tax rate, the tax-effected state and local income tax rates and the
appropriate rate of employment taxes shall be known as the "Blended Tax Rate".
Notwithstanding the foregoing provisions of this Section 7.02, if a Participant
demonstrates to the satisfaction of the Plan Administrator (by providing a copy
of such Participant's income tax return or otherwise) that his actual Blended
Tax Rate differs from the Blended Tax Rate determined by the Plan Administrator,
the Plan Administrator shall base the computation of the Gross-Up Payment on the
actual Blended Tax Rate established by the Participant.

                                       12

<PAGE>

     7.03 Form and Payment.  Gross-Up Payments pursuant to this Article VII
shall be made by depositing the same for the benefit of the Participant with the
appropriate tax authorities.

     7.04 Gross-Up Payments to Surviving Spouses and Beneficiaries.  If any
Income Amount shall be includable in the gross income of any surviving spouse or
Beneficiary following the death of a Participant, then such surviving spouse or
Beneficiary also shall be entitled to receive Gross-Up Payments in accordance
with the provisions of Section 7.01 to the same extent that Gross-Up Payments
would have been made to the Participant.

                                  ARTICLE VIII
                                    PAYMENTS

     8.01 Company Payments.  The Company agrees as a contractual obligation with
the Participants to pay the retirement and other benefits specified in the Plan,
including without limitation, the Gross-Up Payments provided in Article VII.

                                   ARTICLE IX
                               PLAN ADMINISTRATION

     9.01 Plan Administrator Records.  The Plan Administrator shall keep or
cause to be kept all data, records and documents relating to the administration
of the Plan.

     9.02 Employment of Experts.  The Plan Administrator may employ or engage
such independent actuary, accountant, counsel, other experts or persons as
either may deem necessary in connection with discharging their duties under the
Plan.

     9.03 Payment of Expenses.  All expenses incurred in connection with the
administration of the Plan, including, but not limited to, the compensation of
any actuary, accountant, counsel, other experts or persons who shall be employed
by the Plan Administrator in connection with the administration of the Plan
shall be paid by the Company.

     9.04 Indemnification of Plan Administrator.  The Company shall indemnify
and hold harmless to the fullest extent permitted by law the Plan Administrator
and any Employee of the Company to whom Plan responsibilities are delegated by
the Plan Administrator from and against any liabilities, damages, costs and
expenses (including attorneys' fees and amounts paid in settlement of any claims
approved by the Company) incurred by or asserted against him by reason of his
occupying or having occupied positions in connection with the Plan, except that
no indemnification shall be provided if the Plan Administrator or any Employee
personally profited from any act or transaction in respect of which
indemnification is sought.

     9.05 Binding Action.  To the fullest extent permitted by law, all actions
taken and decisions made by the Plan Administrator shall be final, conclusive
and binding on all persons having any interest in the Plan or in any benefits
payable thereunder.

                                       13

<PAGE>

                                   ARTICLE X
                     POWERS AND DUTIES OF PLAN ADMINISTRATOR

     10.01 Administration Powers.  The Plan Administrator shall have the power
to take all action and to make all decisions necessary or proper in order to
carry out his duties and responsibilities under the provisions of the Plan,
including without limitation, the following:

          (a) To make and enforce such rules and regulations as he shall deem
     necessary or proper for the efficient administration of the Plan;

          (b) To interpret the Plan and its regulations; and

          (c) To delegate to one or more persons the authority to administer the
     Plan, with such duties, powers and authority relative to the administration
     of the Plan as the Plan Administrator shall determine, and in so doing to
     limit his own duties and responsibilities to the extent specified in such
     appointment.

     The Plan Administrator shall report to the Compensation Committee of the
Board each year concerning the administration and operation of the Plan.

     10.02 Plan Administrator-Claims Review Authority and Procedures.  Any claim
for benefits or other payments under the Plan shall be determined in accordance
with the procedure set forth below. A claim for benefits or other payments may
be filed by a Participant, the surviving spouse of a Participant, a Beneficiary
of a Participant or the authorized representative of such Participant, surviving
spouse or Beneficiary (the "claimant").

          (a) Initial Claim Determination.  Any claim for benefits or other
     payments under the Plan shall be made by filing a written statement of such
     claim with the person or persons designated by the Plan Administrator to
     process and make initial determinations as to such claims. In the event
     such claim is denied in whole or in part, such person or persons shall
     notify the claimant of the denial within 90 days after the date on which
     the claim was filed. However, if the Plan Administrator determines that
     special circumstances require an extension of time for deciding the claim,
     the Plan Administrator shall furnish written notice of the extension to the
     claimant prior to the expiration of such 90-day period. This notice shall
     indicate the special circumstances requiring the extension, and the date by
     which the Plan expects to render the determination on the claim. If an
     extension is taken, and if the claim is denied in whole or in part, the
     person or persons who processed and denied the claim shall notify the
     claimant of the denial within 180 days after the date on which the claim
     was filed.

          (b) Initial Notification of Claim Denial.  Any notification of a whole
     or partial denial of a claim shall be in writing. Such notification shall
     set forth, in a manner calculated to be understood by the claimant:

               (i) the specific reason or reasons for the denial;

                                       14

<PAGE>

               (ii) reference to the specific provisions of the Plan on which
          the denial was based;

               (iii) a description of any additional material or information
          necessary for the claimant to perfect the claim, and an explanation of
          why such material or information is necessary; and

               (iv) an explanation of the review procedure under subsection (c),
          including a description of the time limits applicable to such
          procedure and a statement of the claimant's right to bring a civil
          action under Section 502(a) of ERISA following an adverse
          determination of the claim on review.

          (c) Review Procedure.  A claimant whose claim is denied in whole or in
     part under subsection (a) shall be entitled to have such denial reviewed by
     the Plan Administrator, by filing a written request for such review with
     the Plan Administrator within 60 days after his receipt of the notification
     of the claim denial under subsection (b). The claimant may request and
     shall be provided, free of charge, reasonable access to, and copies of, all
     documents, records and other information which is relevant to the claim,
     and which is in the possession of the Plan Administrator or the Company.
     The claimant may provide comments, documents, records and other information
     relating to the claim to the Plan Administrator to consider when reviewing
     the claim. Upon receipt of a request for a review of a denied claim, the
     Plan Administrator shall make a full and fair review of the claim. Such
     review shall take into account all comments, documents, records and other
     information submitted by the claimant relating to the claim, without regard
     to whether the same was submitted or considered in the initial claim
     determination.

          (d) Decision on Review.  The Plan Administrator shall make a decision
     with respect to such claim, and shall notify the claimant of its decision,
     within 60 days after its receipt of the claimant's written request for
     review. However, if the Plan Administrator determines that special
     circumstances, such as the need to hold a hearing, require an extension of
     time for deciding the claim, the Plan Administrator shall provide a written
     notice of the extension to the claimant prior to the expiration of such
     60-day period. This notice shall indicate the special circumstances
     requiring the extension, and the date by which the Plan expects to render
     the determination on review. If an extension is taken, the Plan
     Administrator shall notify the claimant of its decision on the claim within
     120 days after the date on which the request to review the denial of the
     claim was filed. However, if the Plan Administrator determines that an
     extension is needed because the claimant must submit additional information
     in order for the Plan Administrator to make its determination on the claim,
     and the Plan Administrator requests such additional information from the
     claimant in the notification of extension, then the 120-day period for
     making the determination on review shall be tolled for the period which
     starts on the date on which such notification is sent to the claimant, and
     which ends on the date on which the claimant provides such additional
     information to the Plan Administrator.

                                       15

<PAGE>

          (e) Notification of Decision on Review.  The notification of the Plan
     Administrator's decision on review shall be in writing. If the claim is
     denied, the notification shall set forth, in a manner calculated to be
     understood by the claimant:

               (i) the specific reason or reasons for the claim denial;

               (ii) reference to the specific Plan provisions on which the claim
          denial was based;

               (iii) a statement that the claimant is entitled to receive, upon
          request and free of charge, reasonable access to, and copies of, all
          documents, records and other information which is relevant to the
          claim, and which is in the possession of the Plan Administrator or the
          Company; and

               (iv) a statement of the claimant's right to bring an action with
          respect to the matter raised in the claim under Section 502(a) of
          ERISA.

     The Plan Administrator shall provide the claimant with reasonable access
to, and copies of, any documents, records and other information which the
claimant is entitled to receive, as indicated in the notification.

     10.03 Conflicts of Interest.  No person who is an Employee of the Company
and who is the Plan Administrator shall participate in the resolution of any
question which relates directly or indirectly to him and which, if applied to
him, would significantly vary his eligibility for, or the amount of, any benefit
payable to him. In cases involving the disqualification under this Section 9.03
of the Plan Administrator, the questions at issue shall be certified to the
Board for resolution.

                                   ARTICLE XI
                      LIMITATION OF RIGHTS AND OBLIGATIONS

     11.01 Plan is Voluntary.  Although it is the intention of the Company that
the Plan shall be continued, the Plan is entirely voluntary on the part of the
Company and the Plan's continuance is not a contractual obligation of the
Company. Notwithstanding any termination of the Plan by the Company, the Company
agrees as a contractual obligation with the Participants to pay all amounts as
shall be necessary to provide the retirement benefits payable and the Gross-Up
Payments payable in respect of such retirement benefits under the Plan as of the
date of any such termination of the Plan.

     11.02 Creation of Certain Employment Rights.  The Plan shall be deemed to
constitute a contract between the Company and each Participant and is
consideration or inducement for the employment of the Participant by the
Company. Notwithstanding the foregoing, nothing contained in the Plan shall be
deemed (a) to give any person the right to be retained in the service of the
Company or (b) to interfere with the right of the Company to discharge any
person at any time without regard to the effect which such discharge shall have
upon his rights or potential rights, if any, under the Plan.

                                       16

<PAGE>

     11.03 Distributions Only from the Company.  Each Participant and any other
person who shall claim any rights under the Plan shall be entitled to look only
to the Company for any payment or benefit, and no member of the Board, officer
or employee of the Company shall be liable in any manner if the Company shall
fail to meet its obligations hereunder.

                                  ARTICLE XII
                            AMENDMENT AND TERMINATION

     12.01 Amendment.  The Board may, at any time, or from time to time, whether
upon termination or otherwise, modify or amend the Plan in any manner, whether
prospectively or retroactively, in whole or in part, provided, however, that no
amendment may reduce the accrued benefit of any Participant or other person or
eliminate or modify the obligations of the Company under Section 11.01 hereof.

     12.02 Termination.  The Board may at any time terminate the Plan, in whole
or part, except that the Company's obligation under Section 11.01 hereof shall
survive such termination.

     12.03 Payment of Benefits upon Termination.  Upon termination of the Plan,
benefits may be paid directly by the Company or by means of insurance and/or
annuity contracts purchased from one or more insurance companies either (a) by
payment of the benefits when and as called for under the Plan until such time as
all benefits are paid, or (b) by distribution of the Actuarial Equivalent
(calculated in accordance with Article VI) of the accrued retirement benefits of
each Participant, in cash in one lump sum or (c) by the purchase of annuity
contracts of such type as the Plan Administrator shall determine.

                                  ARTICLE XIII
                            LIMITATION OF ASSIGNMENT

     13.01 Spendthrift Provision.  In order that the benefits hereunder shall be
fully protected against claims of all sorts, direct or otherwise, none of the
benefits provided hereunder to any person shall be assignable or transferable
voluntarily, nor shall they be subject to the claims of any creditor whatsoever,
nor subject to attachment, garnishment or other legal process by any creditor or
to the jurisdiction of any bankruptcy court or any insolvency proceedings by
operation of law, or otherwise, and no person shall have any right to alienate,
anticipate, pledge, commute, or encumber any of such benefits voluntarily or
involuntarily.

     13.02 Incompetence of Participant or Beneficiary.  If the Plan
Administrator receives evidence satisfactory to him that a person entitled to
receive any payment under the Plan is legally incompetent to receive such
payment and to give valid release therefor, such payment may be made to the
guardian, committee, or other representative of such person duly appointed by a
court of competent jurisdiction. If a person or institution other than a
guardian, committee, or other representative of such person who has been duly
appointed by a court of competent jurisdiction is then maintaining or has
custody of such incompetent person, the payment may be made to such other person
or institution and the release of such other person or institution shall be
valid and complete discharge for the payment.

                                       17

<PAGE>

                                  ARTICLE XIV
                                  MISCELLANEOUS

     14.01 Governing Laws.  This Plan and all provisions thereof shall be
construed and administered according to the laws of the State of New York
without giving effect to the principle of conflicts of law thereof.

     14.02 Necessary Parties.  The Company, the Plan and the Plan Administrator
shall be the only necessary parties in any litigation involving the Plan, unless
otherwise required by law.

     14.03 Name.  The name of this Plan is the "Alleghany Corporation Retirement
Plan."

     14.04 Titles and Heading not to Control.  The titles to the Articles and
the headings of Sections in the Plan are placed herein for convenience of
reference only, and in case of any conflict, the text of this instrument, rather
that such titles or headings, shall control.

     14.05 Gender and Person.  The masculine pronoun shall include the feminine,
the feminine pronoun shall include the masculine and the singular shall include
the plural wherever the context so requires.

     14.06 Elections and Payment.  All payments of benefits under the Plan shall
commence as of the dates herein set forth; provided, however, that if any
payment shall be conditioned upon an election of a Participant as to time, or
the amount of such payment is dependent upon the election of a Participant as to
the form of his benefit or cannot be determined until the receipt of information
or additional information from the Participant, his surviving spouse or
Beneficiary, the Plan Administrator may defer commencement of the payment of
such benefit for 90 days from the receipt of such election or information.
Notwithstanding any such delay in the commencement of the payment of benefits,
such Participant, surviving spouse or Beneficiary shall receive all such amounts
to which he is entitled, including any amounts the payment of which is permitted
to be delayed hereunder.

                                       18

<PAGE>

                      ALLEGHANY CORPORATION RETIREMENT PLAN

                                    EXHIBIT I

             Actuarial Equivalents and Interest Accumulation Factor

1.   For all purposes of Section 5.02:

          UP --1984 Mortality Table
          7.75% Interest Rate

2.   For purposes of Section 5.03 (early retirement reduction factors):

          0.25% per month for each month that the date as of which benefit
          payments commence precedes age 65.

3.   For all purposes of Article VI:

     Based on the unisex annuity purchase rates from a qualified insurance
company, in effect on the date of determination. In no event shall any lump sum
calculated in accordance with the preceding sentence be less than the lump sum
determined by using (i) the mortality table prescribed in Section
417(e)(3)(A)(ii)(I) of the Code and (ii) the interest rate prescribed by the
Internal Revenue Service under Section 417(e)(3)(A)(ii)(II) of the Code for the
month of December immediately preceding the Plan Year in which such
determination is being made. The Plan Administrator may employ, in his sole
discretion, reasonable approximations in lieu of obtaining actual unisex annuity
purchase rates. Such approximations shall be based on the recommendations
provided to the Plan Administrator by a qualified third party such as an
insurance broker or pension actuary.

4.   Interest Accumulation Factors

     If the period from September 15, 2004, to the date of the Participant's
Normal Retirement Date is 12 years or less, then 3.55%.

     If the period from September 15, 2004, to the date of the Participant's
Normal Retirement Date is more than 12 years, then 4.14%.

                                       I-1

<PAGE>

                      ALLEGHANY CORPORATION RETIREMENT PLAN

                                   EXHIBIT II

              Benefit Actual Service and Prior Plan Accrued Benefit

<TABLE>
<CAPTION>
                       Benefit Accrual       Prior Plan Accrued Benefit Monthly
      Name          Service at 12/31/88   Life Annuity Benefit Payable At Age 65
      ----          -------------------   --------------------------------------
<S>                 <C>                   <C>
Burns, John                  20.75                      $7,835.25
Cuming, David                12.0                        4,512.70
Sismondo, Peter               1.0                          175.41
</TABLE>

                                       I-2

<PAGE>

                      ALLEGHANY CORPORATION RETIREMENT PLAN

                                   EXHIBIT III

          Special Grants of Vesting Service and Benefit Accrual Service

<TABLE>
<CAPTION>
                                   Years of Additional
     Name                            Vesting Service     Benefit Accrual Service
     ----                          -------------------   -----------------------
<S>                                <C>                   <C>
Hart, Robert M.                             5                      5
</TABLE>

                                       I-3

<PAGE>

                      ALLEGHANY CORPORATION RETIREMENT PLAN

                                   EXHIBIT IV

                       Accrued Benefits Paid As A Lump Sum

<TABLE>
<CAPTION>
Name
----
<S>                               <C>
Chapman, Benson                   $1,045,685
Hart, Robert                       3,270,903
</TABLE>

                   Accrued Benefits Paid As Annuity Contracts

<TABLE>
<CAPTION>
                                  Amount of Annual Annuity
                                    Payable Monthly for
                                  Participant's Life Only
                                  (amount is payable as of
                                    the first day of the
                                  month following the date
                                  the participant attains
Name                                      age 55)
----                              ------------------------
<S>                               <C>
Sismondo, Peter                            $86,636
</TABLE>

                                       I-4

<PAGE>

                                Table of Contents

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE I DEFINITIONS....................................................     1
   1.01 "Actuarial Equivalent"...........................................     1
   1.02 "Applicable Exclusion Ratio".....................................     1
   1.03 "Average Salary".................................................     1
   1.04 "Base Compensation"..............................................     1
   1.05 "Beneficiary"....................................................     2
   1.06 "Benefit Accrual Service"........................................     2
   1.07 "Board"..........................................................     2
   1.08 "Code"...........................................................     2
   1.09 "Company"........................................................     2
   1.10 "Component Members"..............................................     2
   1.11 "Early Retirement Date"..........................................     2
   1.12 "Effective Date".................................................     2
   1.13 "Employee".......................................................     3
   1.14 "Employment Commencement Date"...................................     3
   1.15 "ERISA"..........................................................     3
   1.16 "Gross-Up Payment"...............................................     3
   1.17 "Hour of Service"................................................     3
   1.18 "Incentive Compensation".........................................     3
   1.19 "Income Taxes"...................................................     4
   1.20 "Income Amount"..................................................     4
   1.21 "Late Retirement Date"...........................................     4
   1.22 "Normal Retirement Date".........................................     4
   1.23 "Participant"....................................................     4
   1.24 "Plan"...........................................................     4
   1.25 "Plan Administrator".............................................     4
   1.26 "Plan Year"......................................................     4
   1.27 "Prior Plan".....................................................     4
   1.28 "Prior Plan Accrued Benefit".....................................     4
   1.29 "Termination of Employment"......................................     5
   1.30 "Totally Disabled"...............................................     5
ARTICLE II PARTICIPATION.................................................     5
   2.01 Participation....................................................     5
   2.02 Re-Employment of Former Participant..............................     5
ARTICLE III VESTING......................................................     5
   3.01 Vesting at Age 55................................................     5
   3.02 Vesting before Age 55............................................     5
   3.03 Year of Vesting Service..........................................     6
   3.04 Termination before Vesting.......................................     6
</TABLE>

                                        i

<PAGE>

                                Table of Contents
                                   (continued)

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
   3.05 Special Grants of Vesting Service................................     6
ARTICLE IV ACCRUAL OF BENEFITS...........................................     6
   4.01 Service Required for Benefits....................................     6
   4.02 Benefit Accrual Service..........................................     6
   4.03 Special Grants of Benefit Accrual Service........................     6
ARTICLE V RETIREMENT BENEFITS............................................     7
   5.01 Retirement Benefit at Normal Retirement Date.....................     7
   5.02 Retirement Benefit at Late Retirement Date.......................     7
   5.03 Retirement Benefit before Normal Retirement Date.................     7
   5.04 Social Security Calculations and Reduction.......................     7
   5.05 Reduction for Prior Distributions................................     8
ARTICLE VI FORMS OF RETIREMENT BENEFITS..................................     8
   6.01 Calculation of Amount of Benefit Payments........................     8
   6.02 Automatic Forms of Benefit.......................................     8
   6.03 Retirement Death Benefit for Spouse..............................     9
   6.04 Single Life Option...............................................     9
   6.05 Period Certain Option............................................     9
   6.06 Joint and Survivor Option........................................    10
   6.07 Lump Sum Option..................................................    10
   6.08 Cash-out of Benefits.............................................    10
   6.09 Elections........................................................    10
   6.10 Death Benefits...................................................    11
   6.11 Commencement of Benefits.........................................    11
   6.12 Small Benefits...................................................    11
   6.13 Termination of Benefit...........................................    11
   6.14 Special In-Service Distributions.................................    11
   6.15 Method of Payment................................................    12
ARTICLE VII GROSS-UP PAYMENTS............................................    12
   7.01 Gross-Up Payment.................................................    12
   7.02 Calculation of Gross-Up Payment..................................    12
   7.03 Form and Payment.................................................    13
   7.04 Gross-Up Payments to Surviving Spouses and Beneficiaries.........    13
ARTICLE VIII PAYMENTS....................................................    13
   8.01 Company Payments.................................................    13
ARTICLE IX PLAN ADMINISTRATION...........................................    13
   9.01 Plan Administrator Records.......................................    13
   9.02 Employment of Experts............................................    13
   9.03 Payment of Expenses..............................................    13
   9.04 Indemnification of Plan Administrator............................    13
   9.05 Binding Action...................................................    13
</TABLE>

                                       ii

<PAGE>

                                Table of Contents
                                   (continued)

<TABLE>
<CAPTION>
                                                                            Page
                                                                            ----
<S>                                                                         <C>
ARTICLE X POWERS AND DUTIES OF PLAN ADMINISTRATOR........................    14
   10.01 Administration Powers...........................................    14
   10.02 Plan Administrator-Claims Review Authority and Procedures.......    14
   10.03 Conflicts of Interest...........................................    16
ARTICLE XI LIMITATION OF RIGHTS AND OBLIGATIONS..........................    16
   11.01 Plan is Voluntary...............................................    16
   11.02 Creation of Certain Employment Rights...........................    16
   11.03 Distributions Only from the Company.............................    17
ARTICLE XII AMENDMENT AND TERMINATION....................................    17
   12.01 Amendment.......................................................    17
   12.02 Termination.....................................................    17
   12.03 Payment of Benefits upon Termination............................    17
ARTICLE XIII LIMITATION OF ASSIGNMENT....................................    17
   13.01 Spendthrift Provision...........................................    17
   13.02 Incompetence of Participant or Beneficiary......................    17
ARTICLE XIV MISCELLANEOUS................................................    18
   14.01 Governing Laws..................................................    18
   14.02 Necessary Parties...............................................    18
   14.03 Name............................................................    18
   14.04 Titles and Heading not to Control...............................    18
   14.05 Gender and Person...............................................    18
   14.06 Elections and Payment...........................................    18
</TABLE>

                                       iii

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