Document:

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                                                                   EXHIBIT 10.21

                                 ILLUMINA, INC.

                        2000 EMPLOYEE STOCK PURCHASE PLAN

                 AS AMENDED AND RESTATED THROUGH MARCH 21, 2002

The following constitute the provisions of the 2000 Employee Stock Purchase Plan
of Illumina, Inc.

               1. PURPOSE. The purpose of the Plan is to provide employees of
the Company and its Designated Subsidiaries with an opportunity to purchase
Common Stock of the Company through accumulated payroll deductions. It is the
intention of the Company to have the Plan qualify as an "Employee Stock Purchase
Plan" under Section 423 of the Internal Revenue Code of 1986, as amended. The
provisions of the Plan, accordingly, shall be construed so as to extend and
limit participation in a manner consistent with the requirements of that section
of the Code.

               2. DEFINITIONS.

                  (a) "BOARD" shall mean the Board of Directors of the Company
or any committee thereof designated by the Board of Directors of the Company in
accordance with Section 14 of the Plan.

                  (b) "CODE" shall mean the Internal Revenue Code of 1986, as
amended.

                  (c) "COMMON STOCK" shall mean the common stock of the Company.

                  (d) "COMPANY" shall mean Illumina, Inc., a Delaware
corporation and any Designated Subsidiary of the Company.

                  (e) "COMPENSATION" shall mean all base straight time gross
earnings, but exclusive of commissions, payments for overtime, shift premium,
incentive compensation, incentive payments, bonuses and other compensation. Such
Compensation shall be calculated before deduction of (i) any income or
employment tax withholdings or (ii) any contributions made by the participant to
any Code Section 401(k) salary deferral plan or any Code Section 125 cafeteria
benefit program now or hereafter established by the Company or any of its
Subsidiaries.

                  (f) "DESIGNATED SUBSIDIARY" shall mean any Subsidiary that has
been designated by the Board from time to time in its sole discretion as
eligible to participate in the Plan.

                  (g) "EMPLOYEE" shall mean any individual who is an Employee of
the Company for tax purposes and whose customary employment with the Company is
at least twenty (20) hours per week for more than five (5) months in any
calendar year.

                  (h) "ENROLLMENT DATE" shall mean the first Trading Day of each
Offering Period.

                  (i) "EXERCISE DATE" shall mean the first Trading Day in
February and August of each year.

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                  (j) "FAIR MARKET VALUE" shall mean, 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 a national market system, including without limitation the Nasdaq
National Market or The Nasdaq SmallCap Market of The Nasdaq Stock Market, its
Fair Market Value shall be the closing selling price per share for such stock
(or the closing bid, if no sales were reported) as quoted on such exchange or
system on the date of determination, as reported in The Wall Street Journal or
such other source as the Board deems reliable;

                      (ii) If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, its Fair
Market Value shall be the mean of the closing bid and asked prices for the
Common Stock on the date of determination, as reported in The Wall Street
Journal or such other source as the Board deems reliable;

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

                      (iv) For purposes of the Enrollment Date of the first
Offering Period under the Plan, the Fair Market Value shall be the initial price
per share at which the Common Stock was sold pursuant to the underwriting
agreement for the Company's initial public offering of the Common Stock.

                  (k) "OFFERING PERIODS" shall mean the periods of approximately
twenty-four (24) months during which an option granted pursuant to the Plan may
be exercised, commencing on the first Trading Day in February and August each
year and terminating on the first Trading Day in February or August which is
approximately twenty-four months later; provided, however, that the first
Offering Period under the Plan shall commence with the first Trading Day on or
after the date on which the Securities and Exchange Commission declares the
registration statement on Form S-1 filed with the Securities and Exchange
Commission for the initial public offering of the Common Stock (the
"Registration Statement") effective and ending on the first Trading Day in
August 2002. The duration and timing of Offering Periods may be changed pursuant
to Section 4 of this Plan.

                  (l) "PLAN" shall mean this 2000 Employee Stock Purchase Plan.

                  (m) "PURCHASE PERIOD" shall mean the approximately six month
period commencing on one Exercise Date and ending with the next Exercise Date,
except that the first Purchase Period of any Offering Period shall commence on
the Enrollment Date and end on February 1, 2001.

                  (n) "PURCHASE PRICE" shall mean 85% of the Fair Market Value
of a share of Common Stock on the Enrollment Date or on the Exercise Date,
whichever is lower; provided, however, that the Purchase Price may be adjusted
by the Board pursuant to Section 20.

                  (o) "RESERVES" shall mean the number of shares of Common Stock
covered by each option under the Plan which have not yet been exercised and the
number of shares

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of Common Stock which have been authorized for issuance under the Plan but not
yet placed under option.

                  (p) "SUBSIDIARY" shall mean a corporation, domestic or
foreign, of which not less than 50% of the voting shares are held by the Company
or a Subsidiary, whether or not such corporation now exists or is hereafter
organized or acquired by the Company or a Subsidiary.

                  (q) "TRADING DAY" shall mean a day on which national stock
exchanges and the Nasdaq System are open for trading.

               3. ELIGIBILITY.

                  (a) Any Employee who shall be employed by the Company on a
given Enrollment Date shall be eligible to participate in the Plan.

                  (b) Any provisions of the Plan to the contrary
notwithstanding, no Employee shall be granted an option under the Plan (i) to
the extent that, immediately after the grant, such Employee (or any other person
whose stock would be attributed to such Employee pursuant to Section 424(d) of
the Code) would own capital stock of the Company and/or hold outstanding options
to purchase such stock possessing five percent (5%) or more of the total
combined voting power or value of all classes of the capital stock of the
Company or of any Subsidiary, or (ii) to the extent that his or her rights to
purchase stock under all employee stock purchase plans of the Company and its
subsidiaries accrues at a rate which exceeds Twenty-Five Thousand Dollars
($25,000) worth of stock (determined at the fair market value of the shares at
the time such option is granted) for each calendar year in which such option is
outstanding at any time.

               4. OFFERING PERIODS. The Plan shall be implemented by
consecutive, overlapping Offering Periods with a new Offering Period commencing
on the first Trading Day in February and August each year, or on such other date
as the Board shall determine, and continuing thereafter until terminated in
accordance with Section 20 hereof; provided, however that the first Offering
Period under the Plan shall commence with the first Trading Day on or after the
date on which the Securities and Exchange Commission declares the Registration
Statement effective and ending on the first Trading Day in August 2002. The
Board shall have the power to change the duration of Offering Periods (including
the commencement dates thereof) with respect to future offerings without
stockholder approval if such change is announced at least five (5) days prior to
the scheduled beginning of the first Offering Period to be affected thereafter.

               5. PARTICIPATION.

                  (a) An eligible Employee may become a participant in the Plan
by completing a subscription agreement authorizing payroll deductions in the
form of Exhibit A to this Plan and filing it with the Company's payroll office
prior to the applicable Enrollment Date.

                  (b) Once an eligible Employee becomes a participant in the
Plan, such individual shall remain a participant until he or she terminates such
participation as provided in Section 10 hereof, the Plan terminates or the
participant loses his or her status as an Employee.

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                  (c) An eligible Employee may be enrolled in only one Offering
Period at a time.

               6. PAYROLL DEDUCTIONS.

                  (a) At the time a participant files his or her subscription
agreement, he or she shall elect to have payroll deductions made on each pay day
during the Offering Period in an amount not exceeding fifteen percent (15%) of
the Compensation which he or she receives on each pay day during the Offering
Period; provided, however that should a pay day occur on an Exercise Date, a
participant shall have the payroll deductions made on such day applied to his or
her account under the new Offering Period or Purchase Period, as the case may
be.

                  (b) All payroll deductions made for a participant shall be
credited to his or her account under the Plan and shall be withheld in whole
percentages only. A participant may not make any additional payments into such
account.

                  (c) A participant may discontinue his or her participation in
the Plan as provided in Section 10 hereof, or may increase or decrease the rate
of his or her payroll deductions during the Offering Period by completing or
filing with the Company a new subscription agreement authorizing a change in
payroll deduction rate. The Company may, in its discretion, limit the nature
and/or number of participation rate changes during any Offering Period, and may
establish such other conditions or limitations as it deems appropriate for Plan
administration. The change in rate shall be effective with the first full
payroll period following five (5) business days after the Company's receipt of
the new subscription agreement unless the Company elects to process a given
change in participation more quickly. A participant's subscription agreement
shall remain in effect for successive Offering Periods unless terminated as
provided in Section 10 hereof.

                  (d) If by reason of the limitations set forth in Sections
3(b), 7 and 13(a), any option of a Participant does not accrue for a particular
Purchase Period, then the payroll deductions that the Participant made during
that Purchase Period with respect to such option shall be promptly refunded. In
addition, to the extent necessary to comply with Section 423(b)(8) of the Code
and Section 3(b) hereof, a participant's payroll deductions may be decreased to
one percent (1%) at any time during a Purchase Period. Payroll deductions shall
recommence at the rate provided in such participant's subscription agreement at
the beginning of the first Purchase Period which is scheduled to end in the
following calendar year, unless terminated by the participant as provided in
Section 10 hereof.

                  (e) At the time the option is exercised, in whole or in part,
or at the time some or all of the Company's Common Stock issued under the Plan
is disposed of, the participant must make adequate provision for the Company's
federal, state, or other tax withholding obligations, if any, which arise upon
the exercise of the option or the disposition of the Common Stock. At any time,
the Company may, but shall not be obligated to, withhold from the participant's
compensation the amount necessary for the Company to meet applicable withholding
obligations, including any withholding required to make available to the Company
any tax deductions or benefits attributable to sale or early disposition of
Common Stock by the Employee.

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               7. GRANT OF OPTION. On the Enrollment Date of each Offering
Period, each eligible Employee participating in such Offering Period shall be
granted an option to purchase on each Exercise Date during such Offering Period
(at the applicable Purchase Price) up to a number of whole shares of the
Company's Common Stock determined by dividing such Employee's payroll deductions
accumulated prior to such Exercise Date and retained in the Participant's
account as of the Exercise Date by the applicable Purchase Price; provided that
in no event shall an Employee be permitted to purchase during each Purchase
Period more than 25,000 shares of the Company's Common Stock (subject to any
adjustment pursuant to Section 19), and provided further that such purchase
shall be subject to the limitations set forth in Sections 3(b) and 13 hereof.
The Board may, for future Offering Periods, increase or decrease, in its
absolute discretion, the maximum number of shares of the Company's Common Stock
an Employee may purchase during each Purchase Period of such Offering Period.
Exercise of the option shall occur as provided in Section 8 hereof, unless the
participant has withdrawn pursuant to Section 10 hereof. The option shall expire
on the last day of the Offering Period.

               8. EXERCISE OF OPTION.

                  (a) Unless a participant withdraws from the Plan as provided
in Section 10 hereof, his or her option for the purchase of shares shall be
exercised automatically on the Exercise Date, and the maximum number of full
shares subject to option shall be purchased for such participant at the
applicable Purchase Price with the accumulated payroll deductions in his or her
account. No fractional shares shall be purchased; any payroll deductions
accumulated in a participant's account which are not sufficient to purchase a
full share shall be retained in the participant's account for the subsequent
Purchase Period or Offering Period, subject to earlier withdrawal by the
participant as provided in Section 10 hereof. Any other monies left over in a
participant's account after the Exercise Date shall be returned to the
participant. During a participant's lifetime, a participant's option to purchase
shares hereunder is exercisable only by him or her.

                  (b) If the Board determines that, on a given Exercise Date,
the number of shares with respect to which options are to be exercised may
exceed (i) the number of shares of Common Stock that were available for sale
under the Plan on the Enrollment Date of the applicable Offering Period, or (ii)
the number of shares available for sale under the Plan on such Exercise Date,
the Board may in its sole discretion (x) provide that the Company shall make a
pro rata allocation of the shares of Common Stock available for purchase on such
Enrollment Date or Exercise Date, as applicable, in as uniform a manner as shall
be practicable and as it shall determine in its sole discretion to be equitable
among all participants exercising options to purchase Common Stock on such
Exercise Date, and continue all Offering Periods then in effect, or (y) provide
that the Company shall make a pro rata allocation of the shares available for
purchase on such Enrollment Date or Exercise Date, as applicable, in as uniform
a manner as shall be practicable and as it shall determine in its sole
discretion to be equitable among all participants exercising options to purchase
Common Stock on such Exercise Date, and terminate any or all Offering Periods
then in effect pursuant to Section 20 hereof. The Company may make pro rata
allocation of the shares available on the Enrollment Date of any applicable
Offering Period pursuant to the preceding sentence, notwithstanding any
authorization of additional shares for issuance under the Plan by the Company's
stockholders subsequent to such Enrollment Date.

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               9.  DELIVERY. As promptly as practicable after each Exercise
Date on which a purchase of shares occurs, the Company shall arrange the
delivery to each participant, as appropriate, of a certificate representing the
shares purchased upon exercise of his or her option.

               10. WITHDRAWAL.

                  (a) A participant may withdraw all but not less than all the
payroll deductions credited to his or her account and not yet used to exercise
his or her option under the Plan at any time by giving written notice to the
Company in the form of Exhibit B to this Plan. All of the participant's payroll
deductions credited to his or her account shall be paid to such participant
promptly after receipt of notice of withdrawal and such participant's option for
the Offering Period shall be automatically terminated, and no further payroll
deductions for the purchase of shares shall be made for such Offering Period. If
a participant withdraws from an Offering Period, payroll deductions shall not
resume at the beginning of the succeeding Offering Period unless the participant
delivers to the Company a new subscription agreement.

                   (b) A participant's withdrawal from an Offering Period shall
not have any effect upon his or her eligibility to participate in any similar
plan which may hereafter be adopted by the Company or in succeeding Offering
Periods which commence after the termination of the Offering Period from which
the participant withdraws.

               11. TERMINATION OF OPTION.

                   (a) Upon a participant's ceasing to be an Employee, for any
reason, he or she shall be deemed to have elected to withdraw from the Plan and
the payroll deductions credited to such participant's account during the
Offering Period but not yet used to exercise the option shall be returned to
such participant or, in the case of his or her death, to the person or persons
entitled thereto under Section 15 hereof, and such participant's option shall be
automatically terminated. The preceding sentence notwithstanding, a participant
who receives payment in lieu of notice of termination of employment shall be
treated as continuing to be an Employee for the participant's customary number
of hours per week of employment during the period in which the participant is
subject to such payment in lieu of notice.

                   (b) Should the participant cease to be an Employee by reason
of an approved unpaid leave of absence, then the participant shall have the
right, exercisable up until the last business day of the Purchase Period in
which such leave commences, to (i) withdraw all the payroll deductions collected
to date on his or her behalf for that Purchase Period or (ii) have such funds
held for the purchase of shares on his or her behalf on the next scheduled
Exercise Date. Upon the participant's return to active service (A) within ninety
(90) days following the commencement of such leave or (B) prior to the
expiration of any longer period for which such participant's right to
reemployment with the Company is guaranteed by statute or contract, his or her
payroll deductions under the Plan shall automatically resume at the rate in
effect at the time the leave began, unless the participant withdraws from the
Plan prior to his or her return. An individual who returns to active employment
following a leave of absence that exceeds in duration the applicable (A) or (B)
time period will be treated as a new Employee for purposes of subsequent
participation in the Plan and must accordingly re-enroll in the Plan (by making
a timely filing of the prescribed enrollment forms) on or before the next
Enrollment Date.

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               12. INTEREST. No interest shall accrue on the payroll deductions
of a participant in the Plan.

               13. STOCK.

                   (a) Subject to adjustment upon changes in capitalization of
the Company as provided in Section 19 hereof, the maximum number of shares of
the Company's Common Stock which shall be made available for sale under the Plan
shall be 1,458,946 shares, which consists of the (i) 500,000 shares initially
reserved under the Plan and (ii) the 958,946 share automatic increase for the
fiscal year 2001. The Board determined that no automatic increase would take
effect for the fiscal year 2002.

                   (b) The share reserve shall increase annually on the first
day of the Company's fiscal year, beginning in 2001, by the number of shares
equal to the lesser of (i) 1,500,000 shares, (ii) 3% of the outstanding shares
of Common Stock on the last day of the immediately preceding fiscal year or
(iii) an amount determined by the Board.

                   (c) The participant shall have no interest or voting right in
shares covered by his option until such option has been exercised.

                   (d) Shares to be delivered to a participant under the Plan
shall be registered in the name of the participant or in the name of the
participant and his or her spouse.

               14. ADMINISTRATION. The Plan shall be administered by the Board
or a committee of members of the Board appointed by the Board. The Board or its
committee shall have full and exclusive discretionary authority to construe,
interpret and apply the terms of the Plan, to determine eligibility and to
adjudicate all disputed claims filed under the Plan. Every finding, decision and
determination made by the Board or its committee shall, to the full extent
permitted by law, be final and binding upon all parties.

               15. DESIGNATION OF BENEFICIARY.

                   (a) A participant may file a written designation of a
beneficiary who is to receive any shares and cash, if any, from the
participant's account under the Plan in the event of such participant's death
subsequent to an Exercise Date on which the option is exercised but prior to
delivery to such participant of such shares and cash. In addition, a participant
may file a written designation of a beneficiary who is to receive any cash from
the participant's account under the Plan in the event of such participant's
death prior to exercise of the option. If a participant is married and the
designated beneficiary is not the spouse, spousal consent shall be required for
such designation to be effective.

                   (b) Such designation of beneficiary may be changed by the
participant at any time by written notice. In the event of the death of a
participant and in the absence of a beneficiary validly designated under the
Plan who is living at the time of such participant's death, the Company shall
deliver such shares and/or cash to the executor or administrator of the estate
of the participant, or if no such executor or administrator has been appointed
(to the knowledge of the Company), the Company, in its discretion, may deliver
such shares and/or cash to the spouse or to

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any one or more dependents or relatives of the participant, or if no spouse,
dependent or relative is known to the Company, then to such other person as the
Company may designate.

               16. TRANSFERABILITY. Neither payroll deductions credited to a
participant's account nor any rights with regard to the exercise of an option or
to receive shares under the Plan may be assigned, transferred, pledged or
otherwise disposed of in any way (other than by will, the laws of descent and
distribution or as provided in Section 15 hereof) by the participant. Any such
attempt at assignment, transfer, pledge or other disposition shall be without
effect, except that the Company may treat such act as an election to withdraw
funds from an Offering Period in accordance with Section 10 hereof.

               17. USE OF FUNDS. All payroll deductions received or held by the
Company under the Plan may be used by the Company for any corporate purpose, and
the Company shall not be obligated to segregate such payroll deductions.

               18. REPORTS. Individual accounts shall be maintained for each
participant in the Plan. Statements of account shall be given to participating
Employees at least annually, which statements shall set forth the amounts of
payroll deductions, the Purchase Price, the number of shares purchased and the
remaining cash balance, if any.

               19. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION,
LIQUIDATION, MERGER OR ASSET SALE.

                   (a) CHANGES IN CAPITALIZATION. Subject to any required action
by the stockholders of the Company, the Reserves (including the number of shares
automatically added annually to the Plan pursuant to Section 13(a)(i)), the
maximum number of shares each participant may purchase each Purchase Period
(pursuant to Section 7), as well as the price per share and the number of shares
of Common Stock covered by each option under the Plan which has not yet been
exercised shall be proportionately adjusted for any increase or decrease in the
number of issued shares of Common Stock resulting from a stock split, reverse
stock split, stock dividend, combination or reclassification of the Common
Stock, or any other increase or decrease in the number of shares of Common Stock
effected without receipt of consideration by the Company; provided, however that
conversion of any convertible securities of the Company shall not be deemed to
have been "effected without receipt of consideration." Such adjustment shall be
made by the Board, whose determination in that respect shall be final, binding
and conclusive. Except as expressly provided herein, no issuance by the Company
of shares of stock of any class, or securities convertible into shares of stock
of any class, shall affect, and no adjustment by reason thereof shall be made
with respect to, the number or price of shares of Common Stock subject to an
option.

                   (b) DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Offering Period then in progress
shall be shortened by setting a new Exercise Date (the "New Exercise Date"), and
shall terminate immediately prior to the consummation of such proposed
dissolution or liquidation, unless provided otherwise by the Board. The New
Exercise Date shall be before the date of the Company's proposed dissolution or
liquidation. The Board shall notify each participant in writing, at least ten
(10) business days prior to the New Exercise Date, that the Exercise Date for
the participant's option has been changed to the New Exercise Date and that the
participant's option shall be exercised automatically on the New

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Exercise Date, unless prior to such date the participant has withdrawn from the
Offering Period as provided in Section 10 hereof.

                   (c) MERGER OR ASSET SALE. In the event of a proposed sale of
all or substantially all of the assets of the Company, or the merger of the
Company with or into another corporation, each outstanding 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 the option, any
Purchase Periods then in progress shall be shortened by setting a new Exercise
Date (the "New Exercise Date") and any Offering Periods then in progress shall
end on the New Exercise Date. The New Exercise Date shall be before the date of
the Company's proposed sale or merger. The Board shall notify each participant
in writing, at least ten (10) business days prior to the New Exercise Date, that
the Exercise Date for the participant's option has been changed to the New
Exercise Date and that the participant's option shall be exercised automatically
on the New Exercise Date, unless prior to such date the participant has
withdrawn from the Offering Period as provided in Section 10 hereof.

               20. AMENDMENT OR TERMINATION.

                   (a) The Board of Directors of the Company may at any time and
for any reason terminate or amend the Plan. Except as provided in Section 19
hereof, no such termination can affect options previously granted, provided that
an Offering Period may be terminated by the Board of Directors immediately
following any Exercise Date if the Board determines that the termination of the
Offering Period or the Plan is in the best interests of the Company and its
stockholders. Except as provided in Section 19 and this Section 20 hereof, no
amendment may make any change in any option theretofore granted which adversely
affects the rights of any participant. To the extent necessary to comply with
Section 423 of the Code (or any successor rule or provision or any other
applicable law, regulation or stock exchange rule), the Company shall obtain
stockholder approval in such a manner and to such a degree as required.

                   (b) Without stockholder consent and without regard to whether
any participant rights may be considered to have been "adversely affected," the
Board (or its committee) shall be entitled to change the Offering Periods, limit
the frequency and/or number of changes in the amount withheld during an Offering
Period, establish the exchange ratio applicable to amounts withheld in a
currency other than U.S. dollars, permit payroll withholding in excess of the
amount designated by a participant in order to adjust for delays or mistakes in
the Company's processing of properly completed withholding elections, establish
reasonable waiting and adjustment periods and/or accounting and crediting
procedures to ensure that amounts applied toward the purchase of Common Stock
for each participant properly correspond with amounts withheld from the
participant's Compensation, and establish such other limitations or procedures
as the Board (or its committee) determines in its sole discretion advisable
which are consistent with the Plan.

                   (c) In the event the Board determines that the ongoing
operation of the Plan may result in unfavorable financial accounting
consequences, the Board may, in its discretion and, to the extent necessary or
desirable, modify or amend the Plan to reduce or eliminate such accounting
consequence including, but not limited to:

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                       (i) altering the Purchase Price for any Offering Period
including an Offering Period underway at the time of the change in Purchase
Price;

                       (ii) shortening any Offering Period so that Offering
Period ends on a new Exercise Date, including an Offering Period underway at the
time of the Board action; and

                       (iii) allocating shares.

               Such modifications or amendments shall not require stockholder
approval or the consent of any Plan participants.

               21. NOTICES. All notices or other communications by a participant
to the Company under or in connection with the Plan shall be deemed to have been
duly given when received in the form specified by the Company at the location,
or by the person, designated by the Company for the receipt thereof.

               22. CONDITIONS UPON ISSUANCE OF SHARES. Shares shall not be
issued with respect to an option unless the exercise of such option and the
issuance and delivery of such shares pursuant thereto shall comply with all
applicable provisions of law, domestic or foreign, including, without
limitation, the Securities Act of 1933, as amended, the Securities Exchange Act
of 1934, as amended, the rules and regulations promulgated thereunder, and the
requirements of any stock exchange upon which the shares may then be listed, and
shall be further subject to the approval of counsel for the Company with respect
to such compliance.

               As a condition to the exercise of an option, the Company may
require the person exercising such option to represent and warrant at the time
of any such exercise that the shares are being purchased only for investment and
without any present intention to sell or distribute such shares if, in the
opinion of counsel for the Company, such a representation is required by any of
the aforementioned applicable provisions of law.

               23. TERM OF PLAN. The Plan shall become effective on the
effective date of the Registration Statement. Unless sooner terminated by the
Board, the Plan shall terminate upon the earliest to occur of (a) the purchase
of shares on the Exercise Date coincidental with the first Trading Day in August
2010, (ii) the date on which all shares available for issuance under the Plan
shall have been sold pursuant to options exercised under the Plan or (iii) the
date on which all options are exercised in connection with a dissolution or
liquidation pursuant to Section 19(b) hereof or a merger or asset sale pursuant
to Section 19(c) hereof. No further options shall be granted or exercised, and
no further payroll deductions shall be collected, under the Plan following such
termination.

               24. AUTOMATIC TRANSFER TO LOW PRICE OFFERING PERIOD. To the
extent permitted by any applicable laws, regulations, or stock exchange rules if
the Fair Market Value of the Common Stock on any Exercise Date in an Offering
Period is lower than the Fair Market Value of the Common Stock on the Enrollment
Date for that Offering Period, then all participants in such Offering Period
shall be automatically withdrawn from such Offering Period immediately after the
exercise of their option on such Exercise Date and automatically enrolled in the
new Offering Period beginning coincident with such Exercise Date.

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               25. AT WILL EMPLOYMENT. Nothing in the Plan shall confer upon the
participant any right to continue in the employ of the Company or any Subsidiary
for any period of specific duration or interfere with or otherwise restrict in
any way the rights of the Company (or any Subsidiary employing such person) or
of the participant, which rights are hereby expressly reserved by each, to
terminate such person's employment at any time for any reason, with or without
cause.

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                                    EXHIBIT A

                                 ILLUMINA, INC.
                        2000 EMPLOYEE STOCK PURCHASE PLAN

                             SUBSCRIPTION AGREEMENT

_____ Original Application                       Enrollment Date:___________
_____ Change in Payroll Deduction Rate
_____ Change of Beneficiary(ies)

                      1. ____________________ hereby elects to participate in
        the Illumina, Inc. 2000 Employee Stock Purchase Plan (the "Employee
        Stock Purchase Plan") and subscribes to purchase shares of the Company's
        Common Stock in accordance with this Subscription Agreement and the
        Employee Stock Purchase Plan.

                      2. I hereby authorize payroll deductions from each
        paycheck in the amount of ____% of my Compensation on each payday (from
        1 to 15%) in accordance with the Employee Stock Purchase Plan. (Please
        note that no fractional percentages are permitted.)

                      3. I understand that said payroll deductions shall be
        accumulated for the purchase of shares of Common Stock at the applicable
        Purchase Price determined in accordance with the Employee Stock Purchase
        Plan. I understand that if I do not withdraw from an Offering Period and
        I do not lose eligibility to participate in the Employee Stock Purchase
        Plan, any accumulated payroll deductions will be used to automatically
        exercise my option.

                      4. I understand that the purchase of Common Stock on my
        behalf will be limited to: (a) $25,000 worth of Common Stock for each
        calendar year my option remains outstanding and (b) 25,000 shares of
        Common Stock per six (6)-month Purchase Period. I understand that there
        are other limitations to purchases contained in the Employee Stock
        Purchase Plan.

                      5. I have received a copy of the complete Employee Stock
        Purchase Plan. I understand that my participation in the Employee Stock
        Purchase Plan is in all respects subject to the terms of the Plan.

                      6. Shares purchased for me under the Employee Stock
        Purchase Plan should be issued in the name(s) of
        _______________________________ (Employee or Employee and Spouse only).

                      7. I understand that I may withdraw from the Employee
        Stock Purchase Plan at any time prior to the last business day of the
        Purchase Period and the Company will refund all my payroll deductions
        for that Purchase Period. However, I may not rejoin that

<PAGE>

        particular Offering Period at any later date. Upon the termination of my
        employment for any reason (including death or disability) or my loss of
        eligibility to participate in the Employee Stock Purchase Plan, my
        participation in the Employee Stock Purchase Plan will immediately
        cease, and all my payroll deductions for the Purchase Period in which my
        employment terminates or my loss of eligibility occurs will immediately
        be refunded.

                      8. I understand that if I take an unpaid leave of absence,
        my payroll deductions will immediately cease, and any payroll deductions
        for the Purchase Period in which my leave begins will, at my election,
        either be refunded or applied to the purchase of shares of Common Stock
        at the end of that Purchase Period. If my re-employment is guaranteed by
        either law or contract, or if I return to active service within ninety
        (90) days, then upon my return my payroll deductions will automatically
        resume at the rate in effect when my leave begins.

                      9. I understand that the Company has the right,
        exercisable in its sole discretion, to amend or terminate all
        outstanding options under the Employee Stock Purchase Plan at any time,
        with such amendment or termination to become effective immediately
        following the end of any Purchase Period. Upon any such termination, I
        will cease to have any further rights to purchase shares of Common Stock
        under this Subscription Agreement.

                      10. I understand that if I dispose of any shares received
        by me pursuant to the Plan within 2 years after the Enrollment Date (the
        first day of the Offering Period during which I purchased such shares)
        or one year after the Exercise Date for those shares, I will be treated
        for federal income tax purposes as having received ordinary income at
        the time of such disposition in an amount equal to the excess of the
        fair market value of the shares at the time such shares were purchased
        by me over the price which I paid for the shares. I hereby agree to
        notify the Company in writing within 30 days after the date of any
        disposition of my shares and I will make adequate provision for Federal,
        state or other tax withholding obligations, if any, which arise upon the
        disposition of the Common Stock. The Company may, but will not be
        obligated to, withhold from my compensation the amount necessary to meet
        any applicable withholding obligation including any withholding
        necessary to make available to the Company any tax deductions or
        benefits attributable to sale or early disposition of Common Stock by
        me. If I dispose of such shares at any time after the expiration of the
        2-year and 1-year holding periods, I understand that I will be treated
        for federal income tax purposes as having received income only at the
        time of such disposition, and that such income will be taxed as ordinary
        income only to the extent of an amount equal to the lesser of (1) the
        excess of the fair market value of the shares at the time of such
        disposition over the purchase price which I paid for the shares, or (2)
        15% of the fair market value of the shares on the first day of the
        Offering Period. The remainder of the gain, if any, recognized on such
        disposition will be taxed as capital gain.

                      11. I hereby agree to be bound by the terms of the
        Employee Stock Purchase Plan. The effectiveness of this Subscription
        Agreement is dependent upon my eligibility to participate in the
        Employee Stock Purchase Plan.

                                        2
<PAGE>

                      12. In the event of my death, I hereby designate the
        following as my beneficiary(ies) to receive all payments and shares due
        me under the Employee Stock Purchase Plan:

        Beneficiary(ies) Name: ________________________________________________
               (Please print)    (First)      (Middle)              (Last)

        Relationship: ____________________________________
        Address:      ____________________________________
                      ____________________________________

        Employee's Social
        Security Number:            ____________________________________
        Employee's Address:         ____________________________________
                                    ____________________________________
                                    ____________________________________

I UNDERSTAND THAT THIS SUBSCRIPTION AGREEMENT SHALL REMAIN IN EFFECT THROUGHOUT
SUCCESSIVE OFFERING PERIODS UNLESS TERMINATED BY ME.

Dated:_________________________            _____________________________________
                                                   Signature of Employee

                                           _____________________________________
                                                          Spouse's Signature
                                           (If beneficiary is other than spouse)

                                        3
<PAGE>

                                    EXHIBIT B

                                 ILLUMINA, INC.
                              2000 EMPLOYEE STOCK PURCHASE PLAN
                              NOTICE OF WITHDRAWAL

        The undersigned participant in the Offering Period of the Illumina, Inc.
2000 Employee Stock Purchase Plan which began on ____________, ______ (the
"Enrollment Date") hereby notifies the Company that he or she hereby withdraws
from participation in the Plan. He or she hereby directs the Company to pay to
the undersigned as promptly as practicable all the payroll deductions credited
to his or her account. The undersigned understands and agrees that his or her
option for the current Offering Period will be automatically terminated. The
undersigned understands further that no further payroll deductions will be made
for the purchase of shares in the current Offering Period and the undersigned
shall be eligible to participate in succeeding Offering Periods only by
delivering to the Company a new Subscription Agreement.

                                        Name and Address of Participant:
                                        __________________________________
                                        __________________________________
                                        __________________________________

                                        Signature:________________________
                                        Date:_____________________________<PAGE>
                                                                   EXHIBIT 10.22

                                 ILLUMINA, INC.

                                 2000 STOCK PLAN

                 AS AMENDED AND RESTATED THROUGH MARCH 21, 2002

        1. PURPOSES OF THE PLAN. The purposes of this 2000 Stock Plan are:

              -   to attract and retain the best available personnel for
                  positions of substantial responsibility,

              -   to provide additional incentive to Service Providers, and

              -   to promote the success of the Company's business.

               Options granted under the Plan may be Incentive Stock Options or
Nonstatutory Stock Options, as determined by the Administrator at the time of
grant.

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

                  (a) "ADMINISTRATOR" means the Board or any of its Committees
as shall be administering the Plan, in accordance with Section 4 hereof.

                  (b) "APPLICABLE LAWS" means the requirements relating to the
administration of stock option plans, the grant of Options and the issuance of
Shares under U. S. state corporate laws, U.S. federal and state securities laws,
the Code, any 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) "BOARD" means the Board of Directors of the Company.

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

                  (e) "COMMITTEE" means a committee of Directors appointed by
the Board in accordance with Section 4 hereof.

                  (f) "COMMON STOCK" means the common stock of the Company.

                  (g) "COMPANY" means Illumina, Inc., a Delaware corporation.

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

                  (i) "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.

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

<PAGE>

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

                  (l) "EFFECTIVE DATE" means the date on which the Securities
and Exchange Commission ("SEC") declared the registration statement on Form S-1
filed with the SEC for the initial public offering of the Common Stock
effective.

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

                  (n) "EXCHANGE ACT" means the Securities Exchange Act of 1934,
0s amended.

                  (o) "FAIR MARKET VALUE" means, as of any date, the value of a
Share determined as follows:

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

                      (ii) If the Common Stock is regularly quoted by a
recognized securities dealer but selling prices are not reported, the Fair
Market Value of a Share shall be the mean between the high bid and low asked
prices for the Common Stock on the day of determination, as reported in The Wall
Street Journal or such other source as the Administrator deems reliable; or

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

                  (p) "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.

                  (q) "INSIDE DIRECTOR" means a Director who is an Employee.

                                        2
<PAGE>

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

                  (s) "NOTICE OF GRANT" means a written or electronic notice
evidencing certain terms and conditions of an individual Option grant. The
Notice of Grant is part of the Option Agreement.

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

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

                  (v) "OPTION AGREEMENT" means an agreement between the Company
and an Optionee evidencing the terms and conditions of an individual Option
grant. The Option Agreement is subject to the terms and conditions of the Plan.

                  (w) "OPTIONED SHARES" means the Shares subject to an Option.

                  (x) "OPTIONEE" means the holder of an outstanding Option
granted under the Plan.

                  (y) "OUTSIDE DIRECTOR" means a Director who is not an
Employee.

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

                  (aa) "PLAN" means this 2000 Stock Plan.

                  (bb) "PREDECESSOR PLAN" means the Illumina, Inc. 1998
Incentive Stock Plan.

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

                  (dd) "SERVICE PROVIDER" means (i) an individual rendering
services to the Company or any Parent or Subsidiary of the Company in the
capacity of an Employee or Consultant or (ii) an individual serving as a
Director.

                  (ee) "SHARE" means a share of the Common Stock, as adjusted in
accordance with Section 13 hereof.

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

                  (gg) "WITHHOLDING TAXES" means the Federal, state and local
income and employment withholding taxes to which the holder of an Option may be
subject in connection with the exercise of that Option.

                                        3
<PAGE>

               3. STOCK SUBJECT TO THE PLAN.

                  (a) Subject to the provisions of Section 13 hereof, the
maximum aggregate number of Shares that may be optioned and sold under the Plan
is 9,649,460 shares. Such share reserve consists of (i) the 2,649,460 reserved
but unissued Shares under the Predecessor Plan transferred to the Plan as of the
Effective Date, (ii) an additional 4,000,000 Shares, and (iii) the 1,500,000
Share automatic increase for the fiscal year 2001 and (iv) the 1,500,000 Share
automatic increase for the fiscal year 2002.

                  (b) An annual increase shall automatically occur on the first
day of each fiscal year of the Company, beginning with fiscal year 2001, equal
to the lesser of (i) 1,500,000 Shares, (ii) 5% of the outstanding Shares on the
last day of the immediately preceding fiscal year or (iii) an amount determined
by the Board. The Shares may be authorized, but unissued, or reacquired Shares,
including Shares repurchased by the Company on the open market.

                  (c) If an outstanding Option (including those granted under
the Predecessor Plan) expires or terminates for any reason prior to exercise in
full, the unpurchased Optioned Shares which were subject thereto shall become
available for future grant or sale under the Plan (unless the Plan has
terminated); provided, however, that Shares that have actually been issued under
the Plan upon exercise of an Option shall not be returned to the Plan and shall
not become available for future distribution under the Plan, except that if
unvested Shares are repurchased by the Company at their original purchase price,
such Shares shall become available for future grant under the Plan. Should the
exercise price of an Option under the Plan be paid with Shares or should Shares
otherwise issuable under the Plan be withheld by the Company in satisfaction of
the Withholding Taxes incurred in connection with the exercise of an Option,
then the number of Shares available for issuance under the Plan shall be reduced
by the gross number of Shares for which the Option is exercised, and not by the
net number of Shares issued to the holder of such Option.

               4. ADMINISTRATION OF THE PLAN.

                  (a) PROCEDURE.

                      (i) MULTIPLE ADMINISTRATIVE BODIES. Different Committees
with respect to different groups of Service Providers may administer the Plan.

                      (ii) SECTION 162(m). To the extent that the Administrator
determines it to be desirable to qualify Options granted hereunder as
"performance-based compensation" within the meaning of Section 162(m) of the
Code, the Plan shall be administered by a Committee of two or more "outside
directors" within the meaning of Section 162(m) of the Code.

                      (iii) RULE 16B-3. To the extent desirable to qualify
transactions hereunder as exempt under Rule 16b-3, the transactions contemplated
hereunder shall be structured to satisfy the requirements for exemption under
Rule 16b-3.

                                        4
<PAGE>

                      (iv) OTHER ADMINISTRATION. Other than as provided above,
the Plan shall be administered by (A) the Board or (B) a Committee, which
committee shall be constituted to satisfy Applicable Laws.

                  (b) POWERS OF THE ADMINISTRATOR.

                      (i) Subject to the provisions of the Plan, and in the case
of a Committee, subject to the specific duties delegated by the Board to such
Committee, the Administrator shall have the authority, in its discretion:

                          (A) to determine the Fair Market Value;

                          (B) to select the Service Providers to whom Options
may be granted hereunder;

                          (C) to determine the number of Shares to be covered by
each Option granted hereunder;

                          (D) to approve forms of Option Agreements for use
under the Plan;

                          (E) to determine the terms and conditions, not
inconsistent with the terms of the Plan, of any Option granted hereunder, which
terms and conditions include, but are not limited to, the exercise price, the
time or times when Options may be exercised (which may be based on performance
criteria), any vesting acceleration or waiver of forfeiture restrictions, and
any restriction or limitation regarding any Option or the Shares relating
thereto, based in each case on such factors as the Administrator, in its sole
discretion, shall determine;

                          (F) to construe and interpret the terms of the Plan
and awards granted pursuant to the Plan;

                          (G) to prescribe, amend and rescind rules and
regulations relating to the Plan, including rules and regulations relating to
sub-plans established for the purpose of satisfying applicable foreign laws;

                          (H) to modify or amend each Option (subject to Section
15(c) hereof), including the discretionary authority to extend the
post-termination exercisability period of Options longer than is otherwise
provided for in the Option Agreement;

                          (I) to allow Optionees to satisfy Withholding Tax
obligations by electing to have the Company withhold from the Shares to be
issued upon exercise of an Option that number of Shares having a Fair Market
Value equal to the minimum amount required to be withheld. The Fair Market Value
of the Shares to be withheld shall be determined on the date that the amount of
Withholding Tax is to be determined. All elections by an Optionee to have Shares
withheld for this purpose shall be made in such form and under such conditions
as the Administrator may deem necessary or advisable;

                                        5
<PAGE>

                          (J) to authorize any person to execute on behalf of
the Company any instrument required to effect the grant of an Option previously
granted by the Administrator;

                          (K) to make all other determinations deemed necessary
or advisable for administering the Plan.

                      (ii) Notwithstanding the foregoing, the Option grant
provisions of Section 11 hereof shall be self-executing, and no Administrator
shall exercise any discretionary functions with respect to such Option grants.

                  (c) EFFECT OF ADMINISTRATOR'S DECISION. The Administrator's
decisions, determinations and interpretations shall be final and binding on all
Optionees and any other holders of Options or Shares issued under the Plan.

               5. ELIGIBILITY. Nonstatutory Stock Options may be granted to
Service Providers. Incentive Stock Options may be granted only to Employees.

               6. LIMITATIONS.

                  (a) Each Option shall be designated in the Option Agreement as
either an Incentive Stock Option or a Nonstatutory Stock Option. However,
notwithstanding such designation, no installment under this Option shall qualify
for favorable tax treatment as an Incentive Stock Option if (and to the extent)
the aggregate Fair Market Value of the Shares (determined at the date of grant)
for which such installment first becomes exercisable hereunder would, when added
to the aggregate value (determined as of the respective date or dates of grant)
of the Shares or other securities for which this Option or any other Incentive
Stock Options granted to Optionee prior to the date of grant (whether under the
Plan or any other option plan of the Company or any Parent or Subsidiary of the
Company) first become exercisable during the same calendar year, exceed One
Hundred Thousand Dollars ($100,000) in the aggregate. Should such One Hundred
Thousand Dollar ($100,000) limitation be exceeded in any calendar year, the
Option shall nevertheless become exercisable for the excess Optioned Shares in
such calendar year as a Nonstatutory Stock Option. For purposes of this Section
6(a), Incentive Stock Options shall be taken into account in the order in which
they were granted.

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

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

                      (i) No Service Provider shall be granted, in any fiscal
year of the Company, Options to purchase more than 500,000 Shares.

                      (ii) However, in connection with his or her commencement
of Service Provider status, an individual may be granted Options to purchase up
to an additional 1,000,000 Shares, which shall not count against the limit set
forth in subsection (i) above.

                                        6
<PAGE>

               7. TERM OF PLAN. Subject to Section 19 hereof, the Plan shall
become effective on the Effective Date. Unless the Plan is terminated earlier
pursuant to Section 15(a) hereof, the Plan shall terminate upon the earliest to
occur of (a) June 1, 2010, (b) the date on which all Shares available for
issuance under the Plan shall have been issued as fully vested Shares or (c) the
termination of all outstanding Options in connection with a dissolution or
liquidation pursuant to Section 13(b) hereof or a Corporate Transaction pursuant
to Section 13(c) hereof. Should the Plan terminate on June 1, 2010, then all
Options outstanding at that time shall continue to have force and effect in
accordance with the provisions of the applicable Option Agreement.

               8. TERM OF OPTION. The term of each Option shall be stated in the
Option Agreement. In the case of an Incentive Stock Option, the term shall be
ten (10) years from the date of grant or such shorter term as may be provided in
the Option Agreement. Moreover, in the case of an Incentive Stock Option granted
to an Optionee who, at the time the Incentive Stock Option is granted, owns
stock representing more than ten percent (10%) of the total combined voting
power of all classes of stock of the Company or any Parent or Subsidiary, the
term of the Incentive Stock Option shall be five (5) years from the date of
grant or such shorter term as may be provided in the Option Agreement.

               9. OPTION EXERCISE PRICE AND CONSIDERATION.

                  (a) EXERCISE PRICE. The per share exercise price for the
Shares to be issued pursuant to exercise of an Option shall be determined by the
Administrator, subject to the following:

                      (i) In the case of an Incentive Stock Option

                          (A) granted to an Employee who, at the time the
Incentive Stock Option is granted, owns stock representing more than ten percent
(10%) of the voting power of all classes of stock of the Company or any Parent
or Subsidiary, the per Share exercise price shall be no less than 110% of the
Fair Market Value per Share on the date of grant.

                          (B) granted to any Employee other than an Employee
described in paragraph (A) immediately above, the per Share exercise price shall
be no less than 100% of the Fair Market Value per Share on the date of grant.

                      (ii) In the case of a Nonstatutory Stock Option, the per
Share exercise price shall be determined by the Administrator. In the case of a
Nonstatutory Stock Option intended to qualify as "performance-based
compensation" within the meaning of Section 162(m) of the Code, the per Share
exercise price shall be no less than 100% of the Fair Market Value per Share on
the date of grant.

                      (iii) Notwithstanding the foregoing, Options may be
granted with a per Share exercise price of less than 100% of the Fair Market
Value per Share on the date of grant pursuant to a merger or other corporate
transaction.

                                        7
<PAGE>

                  (b) WAITING PERIOD AND EXERCISE DATES. At the time an Option
is granted, the Administrator shall fix the period within which the Option may
be exercised and shall determine any conditions that must be satisfied before
the Option may be exercised.

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

                      (i) cash;

                      (ii) promissory note;

                      (iii) other Shares which, in the case of Shares acquired
directly or indirectly from the Company, (A) have been owned by the Optionee for
more than six (6) months on the date of surrender, and (B) have a Fair Market
Value on the date of surrender equal to the aggregate exercise price of the
Shares as to which said Option shall be exercised;

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

                      (v) a reduction in the amount of any Company liability to
the Optionee, including any liability attributable to the Optionee's
participation in any Company-sponsored deferred compensation program or
arrangement;

                      (vi) any combination of the foregoing methods of payment;
or

                      (vii) such other consideration and method of payment for
the issuance of Optioned Shares to the extent permitted by Applicable Laws.

              10. EXERCISE OF OPTION.

                  (a) PROCEDURE FOR EXERCISE; RIGHTS AS A STOCKHOLDER.

                      (i) Any Option granted hereunder shall be exercisable
according to the terms of the Plan and at such times and under such conditions
as determined by the Administrator and set forth in the Option Agreement. Unless
the Administrator provides otherwise, vesting of Options granted hereunder shall
be suspended during any unpaid leave of absence. An Option may not be exercised
for a fraction of a Share.

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

                                        8
<PAGE>

with respect to which the Option is exercised. Full payment may consist of any
consideration and method of payment authorized by the Administrator and
permitted by the Plan and shall be set forth in the Option Agreement. Shares
issued upon exercise of an Option shall be issued in the name of the Optionee
or, if requested by the Optionee, in the name of the Optionee and his or her
spouse. Until the Shares are issued (as evidenced by the appropriate entry on
the books of the Company or of a duly authorized transfer agent of the Company),
no right to vote or receive dividends or any other rights as a stockholder shall
exist with respect to the Optioned Shares, notwithstanding the exercise of the
Option. The Company shall issue (or cause to be issued) such Shares promptly
after the Option is exercised. No adjustment will be made for a dividend or
other right for which the record date is prior to the date the Shares are
issued, except as provided in Section 13 hereof.

                      (iii) Exercising an Option in any manner shall decrease
the number of Optioned Shares thereafter available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

                  (b) TERMINATION OF RELATIONSHIP AS A SERVICE PROVIDER. If an
Optionee ceases to be a Service Provider, other than upon the Optionee's death
or Disability, such Optionee may exercise his or her Option for a period of
three (3) months measured from the date of termination, or such longer period of
time as specified in the Option Agreement, to the extent that the Option is
vested on the date of termination (but in no event later than the expiration of
the term of the Option as set forth in the Option Agreement). If, on the date of
termination, the Optionee is not vested as to his or her entire Option, the
Option shall immediately terminate as to all the unvested Optioned Shares
covered by the unvested portion of the Option, and those Optioned Shares shall
revert immediately to the Plan. To the extent the Optionee does not, within the
post-termination time period specified in the Option Agreement, exercise the
Option for the Optioned Shares in which Optionee is vested at the time of such
termination of Service Provider status, the Option shall terminate with respect
to those vested Optioned Shares at the end of such period, and those Optioned
Shares shall revert to the Plan.

                  (c) DISABILITY OF OPTIONEE. If an Optionee ceases to be a
Service Provider as a result of the Optionee's Disability, the Optionee may
exercise his or her Option within twelve (12) months of termination, or such
longer period of time as specified in the Option Agreement, to the extent the
Option is vested on the date of termination (but in no event later than the
expiration of the term of such Option as set forth in the Option Agreement). If,
on the date of termination, the Optionee is not vested as to his or her entire
Option, the Option shall immediately terminate as to the Optioned Shares covered
by the unvested portion of the Option, and those Optioned Shares shall revert
immediately to the Plan. To the extent the Optionee does not, within the
post-termination time period specified in the Option Agreement, exercise the
Option for the Optioned Shares in which Optionee is vested at the time of such
termination of Service Provider status, the Option shall terminate with respect
to those vested Optioned Shares at the end of such period, and those Optioned
Shares shall revert to the Plan.

                  (d) DEATH OF OPTIONEE. If an Optionee dies while a Service
Provider, the Option may be exercised within twelve (12) months following
Optionee's death, or such longer period of time as specified in the Option
Agreement, to the extent that the Option is vested on the date of death (but in
no event later than the expiration of the term of such Option as set forth in

                                        9
<PAGE>

the Option Agreement) by the Optionee's designated beneficiary, provided such
beneficiary has been designated prior to Optionee's death in a form acceptable
to the Administrator. If no such beneficiary has been designated by the
Optionee, then such Option may be exercised by the personal representative of
the Optionee's estate or by the person(s) to whom the Option is transferred
pursuant to the Optionee's will or in accordance with the laws of descent and
distribution. If, at the time of death, the Optionee is not vested as to his or
her entire Option, the Option shall immediately terminate as to the Optioned
Shares covered by the unvested portion of the Option, and those Optioned Shares
shall immediately revert to the Plan. To the extent the Option is not, within
the post-termination time period specified in the Option Agreement, exercised
for the Optioned Shares in which Optionee is vested at the time of such
termination of Service Provider status, the Option shall terminate with respect
to those vested Optioned Shares, and those Optioned Shares shall revert to the
Plan.

              11. FORMULA OPTION GRANTS TO OUTSIDE DIRECTORS. Outside Directors
shall automatically be granted Options in accordance with the following
provisions:

                  (a) All Options granted pursuant to this Section shall be
Nonstatutory Stock Options and, except as otherwise provided in this Section 11,
shall be subject to the other terms and conditions of the Plan.

                  (b) Each individual shall be automatically granted an Option
to purchase 20,000 Shares (the "First Option") on the date such individual first
attends a Board meeting as an Outside Director, whether through election by the
stockholders of the Company or appointment by the Board to fill a vacancy;
provided, however, that an Inside Director who ceases to be an Inside Director
but who remains a Director shall not receive a First Option.

                  (c) On each annual stockholder meeting following the Effective
Date, each Outside Director who continues to serve in such capacity shall be
automatically granted an Option to purchase 10,000 Shares (a "Subsequent
Option").

                  (d) The terms of a First Option or a Subsequent Option granted
pursuant to this Section shall be as follows:

                      (i) The term of the Option shall be ten (10) years
measured from the date of grant.

                      (ii) The Option shall be exercisable only during the time
that the Outside Director remains a Director and for the six (6) month period
following the date of the Optionee's cessation of service as a Director,
provided, however, that the Option cannot be exercised after the termination of
the Option.

                      (iii) The exercise price per Share shall be 100% of the
Fair Market Value per Share on the date of grant of the Option.

                      (iv) Subject to Section 13 hereof, the Option shall become
exercisable as to 25% of the Optioned Shares on each anniversary of its date of
grant, provided that the Optionee continues to serve as a Director on such
dates.

                                       10
<PAGE>

                      (v) If an Outside Director dies while holding any
outstanding Option under this Section 11, then that Option may be exercised
within six (6) months following his or her death, or such longer period of time
as specified in the Option Agreement, to the extent that the Option is vested on
the date of death (but in no event later than the expiration of the term of such
Option as set forth in the Option Agreement) by the Outside Director's
designated beneficiary, provided such beneficiary has been designated prior to
his or her death in a form acceptable to the Administrator. If no such
beneficiary has been designated by the Outside Director, then such Option may be
exercised by the personal representative of his or her estate or by the
person(s) to whom the Option is transferred pursuant to his or her will or in
accordance with the laws of descent and distribution. If, at the time of death,
the Outside Director is not vested as to his or her entire Option, Option shall
immediately terminate as to the Optioned Shares covered by the unvested portion
of the Option, and those Optioned Shares shall immediately revert to the Plan.
To the extent the Option is not, within the post-termination time period
specified in the Option Agreement, exercised for the Optioned Shares in which
the Outside Director is vested at the time of his or her cessation of Director
status, the Option shall terminate with respect to those vested Optioned Shares,
and those Optioned Shares shall revert to the Plan.

              12. LIMITED TRANSFERABILITY OF OPTIONS. Unless determined
otherwise by the Administrator, an Option may not be sold, pledged, assigned,
hypothecated, transferred, or disposed of in any manner other than by will or by
the laws of descent or distribution and may be exercised, during the lifetime of
the Optionee, only by the Optionee. The Optionee may designate one or more
persons as the beneficiary or beneficiaries of his or her outstanding Options,
and those Options shall, in accordance with such designation, automatically be
transferred to such beneficiary or beneficiaries upon the Optionee's death while
holding those Options. Such beneficiary or beneficiaries shall take the
transferred Options subject to all the terms and conditions of the applicable
agreement evidencing each such transferred Option, including (without
limitation) the limited time period during which the Option may be exercised
following the Optionee's death. If the Administrator makes an Option
transferable, such Option shall contain such additional terms and conditions as
the Administrator deems appropriate.

              13. ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, DISSOLUTION,
CORPORATE TRANSACTION.

                  (a) CHANGES IN CAPITALIZATION. Subject to any required action
by the stockholders of the Company, (i) the number of Shares which have been
authorized for issuance under the Plan but as to which no Options have yet been
granted or which have been returned to the Plan upon cancellation or expiration
of an Option, (ii) the number of Shares that may be added annually to the Plan
pursuant to Section 3(i) hereof, (iii) the number of Optioned Shares granted
under First Options and Subsequent Options under Section 11 hereof, (iv) the
maximum number of Optioned Shares that may be granted to any Service Provider
within any fiscal year, (v) the maximum number of Optioned Shares that may be
granted to any Service Provider in connection with his or her commencement of
service and (vi) the number of Optioned Shares as well as the price per Share
subject to each outstanding Option, shall be proportionately adjusted for any
increase or decrease in the number of issued Shares resulting from a stock
split, reverse stock split, stock dividend, combination or reclassification of
the Common Stock, or any other increase or decrease in the number of issued
Shares effected without receipt of consideration by

                                       11
<PAGE>

the Company; provided, however, that conversion of any convertible securities of
the Company shall not be deemed to have been "effected without receipt of
consideration." Such adjustment shall be made by the Board, whose determination
in that respect shall be final, binding and conclusive. Except as expressly
provided herein, no issuance by the Company of shares of stock of any class, or
securities convertible into shares of stock of any class, shall affect, and no
adjustment by reason thereof shall be made with respect to, the number or price
of Optioned Shares.

                  (b) DISSOLUTION OR LIQUIDATION. In the event of the proposed
dissolution or liquidation of the Company, the Administrator shall notify each
Optionee as soon as practicable prior to the effective date of such proposed
transaction. The Administrator in its discretion may provide for an Optionee to
have the right to exercise his or her Option until ten (10) days prior to such
transaction as to all of the Optioned Shares covered thereby, including Shares
as to which the Option would not otherwise be exercisable. In addition, the
Administrator may provide that any Company repurchase option applicable to any
unvested Shares purchased upon exercise of an Option shall lapse as to all such
Shares, provided the proposed dissolution or liquidation takes place at the time
and in the manner contemplated. To the extent it has not been previously
exercised, an Option will terminate immediately prior to the consummation of
such proposed action.

                  (c) CORPORATE TRANSACTION.

                      (i) In the event of a Corporate Transaction, each
outstanding 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 the
Option, the Optionee shall fully vest in and have the right to exercise the
Option as to all of the Optioned Shares, including Shares as to which it would
not otherwise be vested or exercisable. If an Option becomes fully vested and
exercisable in lieu of assumption or substitution in the event of Corporate
Transaction, the Administrator shall notify the Optionee in writing or
electronically that the Option shall be fully vested and exercisable for a
period of fifteen (15) days from the date of such notice, and the Option shall
terminate upon the expiration of such period. For the purposes of this
paragraph, the Option shall be considered assumed if, following the Corporate
Transaction, the Option confers the right to purchase or receive, for each
Optioned Share immediately prior to the Corporate Transaction, the consideration
(whether stock, cash, or other securities or property) received in the Corporate
Transaction by holders of Common Stock for each Share held on the effective date
of the Corporate Transaction (and if holders were offered a choice of
consideration, the type of consideration chosen by the holders of a majority of
the outstanding Shares); provided, however, that if such consideration received
in the Corporate Transaction is not solely common stock of the successor
corporation or its Parent, the Administrator may, with the consent of the
successor corporation, provide for the consideration to be received upon the
exercise of the Option, for each Optioned Share, to be solely common stock of
the successor corporation or its Parent equal in fair market value to the per
share consideration received by holders of Shares in the Corporate Transaction.

                      (ii) All outstanding repurchase rights of the Company
shall automatically terminate, and the unvested Shares subject to those
terminated rights shall

                                       12
<PAGE>

immediately vest in full, in the event of a Corporate Transaction, except to the
extent: (i) those repurchase rights are to be assigned to the successor
corporation (or Parent thereof) in connection with such Corporate Transaction or
(ii) such accelerated vesting is precluded by other limitations imposed by the
Administrator at the time the repurchase right is issued.

                      (iii) Each Option which is assumed pursuant to this
Section 13(c) shall be appropriately adjusted, immediately after such Corporate
Transaction, to apply to the number and class of securities which would have
been issuable to the Optionee in consummation of such Corporate Transaction had
the Option been exercised immediately prior to such Corporate Transaction.
Appropriate adjustments to reflect such Corporate Transaction shall also be made
to (A) the exercise price payable per share under each outstanding Option,
provided the aggregate exercise price payable for such securities shall remain
the same, (B) the maximum number and/or class of securities available for
issuance over the remaining term of the Plan, (C) the maximum number and/or
class of securities for which any one person may be granted Options under the
Plan per year, (D) the maximum number and/or class of securities by which the
share reserve is to increase automatically each year and (E) the number and/or
class of securities subject to the Options granted under Section 11.

              14. DATE OF GRANT. The date of grant of a First Option or
Subsequent Option shall be the date on which it was automatically granted
pursuant to Section 11 hereof. The date of grant of any other Option shall be,
for all purposes, the date on which the Administrator grants such Option. Notice
of the grant shall be provided to each Optionee within a reasonable time after
the date of such grant.

              15. AMENDMENT AND TERMINATION OF THE PLAN.

                  (a) AMENDMENT AND TERMINATION. The Board may at any time
amend, alter, suspend or terminate the Plan.

                  (b) STOCKHOLDER APPROVAL. The Company shall obtain stockholder
approval of any Plan amendment to the extent necessary and desirable to comply
with Applicable Laws.

                  (c) EFFECT OF AMENDMENT OR TERMINATION. No amendment,
alteration, suspension or termination of the Plan shall impair the rights of any
Optionee, unless mutually agreed otherwise between the Optionee and the
Administrator, which agreement must be in writing and signed by the Optionee and
the Company. Termination of the Plan shall not affect the Administrator's
ability to exercise the powers granted to it hereunder with respect to Options
granted under the Plan prior to the date of such termination.

              16. CONDITIONS UPON ISSUANCE OF SHARES.

                  (a) Options shall not be granted and Shares shall not be
issued pursuant to the exercise of an Option unless the grant of the Option, the
exercise of such Option and the issuance and delivery of such Shares shall
comply with Applicable Laws and shall be further subject to the approval of
counsel for the Company with respect to such compliance.

                                       13
<PAGE>

                  (b) No Shares or other assets shall be issued or delivered
under the Plan unless and until there shall have been compliance with all
applicable requirements of Federal and state securities laws, including the
filing and effectiveness of the Form S-8 registration statement for the Shares,
and all applicable listing requirements of any stock exchange (or the Nasdaq
National Market, if applicable) on which Common Stock is then listed for
trading.

              17. INABILITY TO OBTAIN AUTHORITY. The inability of the Company to
obtain authority from any regulatory body having jurisdiction, which authority
is deemed by the Company's counsel to be necessary to the lawful grant of
Options and issuance and sale of any Shares hereunder shall relieve the Company
of any liability in respect of the failure to grant such Options or issue or
sell such Shares as to which such requisite authority shall not have been
obtained.

              18. RESERVATION OF SHARES. The Company, during the term of this
Plan, will at all times reserve and keep available such number of Shares as
shall be sufficient to satisfy the requirements of the Plan.

              19. STOCKHOLDER APPROVAL. The Plan shall be subject to approval by
the stockholders of the Company within twelve (12) months after the date the
Plan is adopted. Such stockholder approval shall be obtained in the manner and
to the degree required under Applicable Laws.

              20. PREDECESSOR PLAN. The Plan shall serve as the successor to the
Predecessor Plan, and no further Option grants or direct stock issuances shall
be made under the Predecessor Plan after the Effective Date. All Options
outstanding under the Predecessor Plan on the Effective Date shall be
transferred to the Plan at that time and shall be treated as outstanding Options
under the Plan. However, each outstanding Option so transferred shall continue
to be governed solely by the terms of the documents evidencing such Option, and
no provision of the Plan shall be deemed to affect or otherwise modify the
rights or obligations of the holders of such transferred Options with respect to
their acquisition of Shares.

                                       14

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