Document:

exv10w1

 

EXHIBIT 10.1

GOLDMAN, SACHS & CO.  ONE NEW YORK PLAZA | NEW YORK, NEW YORK 10004 |TEL: (212) 902-1000

Opening Transaction

	 	 	 
	 

	 	Illumina, Inc.
	To:

	 	9885 Towne Centre Drive
	 

	 	Suite 200
	 

	 	San Diego, CA 92121
	 
	 	 
	A/C:

	 	028598837 
	 
	 	 
	From:

	 	Goldman, Sachs & Co.
	 
	 	 
	Re:

	 	Convertible Bond Hedge Transaction
	 
	 	 
	Ref. No:

	 	SDB1624694327 
	 
	 	 
	Date:

	 	February 12, 2007

Dear Sir(s):

     The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below (the
“Transaction”) between Goldman, Sachs & Co. (“Dealer”) and Illumina, Inc. (“Counterparty”). This
communication constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified
below.

     1. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions
and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and
together with the 2000 Definitions, the “Definitions”), in each case as published by the
International Swaps and Derivatives Association, Inc. (“ISDA”). In the event of any inconsistency
between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern.
Certain defined terms used herein have the meanings assigned to them in the Indenture to be dated
as of February 16, 2007 between Counterparty and The Bank of New York, as trustee (the “Indenture”)
relating to the USD350,000,000 principal amount of 0.625% convertible senior notes due 2014 (the
“Convertible Debentures”). In the event of any inconsistency between the terms defined in the
Indenture and this Confirmation, this Confirmation shall govern. For the avoidance of doubt,
references herein to sections of the Indenture are based on the draft of the Indenture most
recently reviewed by the parties at the time of execution of this Confirmation. If any relevant
sections of the Indenture are changed, added or renumbered prior to execution of the Indenture, the
parties will amend this Confirmation in good faith to preserve the economic intent of the parties,
as evidenced by such draft of the Indenture. The Transaction is subject to early unwind if the
closing of the Convertible Debentures is not consummated for any reason, as set forth below in
Section 8(k).

     Each party is hereby advised, and each such party acknowledges, that the other party has
engaged in, or refrained from engaging in, substantial financial transactions and has taken other
material actions in reliance upon the parties’ entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below.

 

 

     This Confirmation evidences a complete and binding agreement between Dealer and Counterparty
as to the terms of the Transaction to which this Confirmation relates. This Confirmation shall be
subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement as if
Dealer and Counterparty had executed an agreement in such form on the date hereof (but without any
Schedule except for (i) the election of Loss and Second Method and US Dollars (“USD”) as the
Termination Currency and (ii) the replacement of the word “third” in the last line of Section
5(a)(i) with the word “first”).

     All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

     The Transaction hereunder shall be the sole Transaction under the Agreement. If there exists
any ISDA Master Agreement between Dealer and Counterparty or any confirmation or other agreement
between Dealer and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist
between Dealer and Counterparty, then notwithstanding anything to the contrary in such ISDA Master
Agreement, such confirmation or agreement or any other agreement to which Dealer and Counterparty
are parties, the Transaction shall not be considered Transactions under, or otherwise governed by,
such existing or deemed ISDA Master Agreement.

     2. The Transaction constitutes a Share Option Transaction for purposes of the Equity
Definitions. The terms of the particular Transaction to which this Confirmation relates are as
follows:

General Terms:

	 	 	 	 	 
	Trade Date:

	 	February 12, 2007

	 
	 	 	 	 
	Effective Date:

	 	February 16, 2007

	 
	 	 	 	 
	Option Style:

	 	Modified American, as described under “Procedures for Exercise” below.

	 
	 	 	 	 
	Option Type:

	 	Call

	 
	 	 	 	 
	Seller:

	 	Dealer

	 
	 	 	 	 
	Buyer:

	 	Counterparty

	 
	 	 	 	 
	Shares:

	 	The Common Stock of Counterparty, par value USD0.01 per share (Ticker Symbol:

	 

	 	“ILMN”).

	 
	 	 	 	 
	Number of Options:

	 	The number of Convertible Debentures in denominations of USD1,000
principal amount issued by Counterparty on the closing date for the initial issuance
of the Convertible Debentures; provided that the Number of Options shall be
automatically increased as of the date of exercise by the Purchasers (as defined in
the Purchase Agreement), of their option pursuant to Section 2 of the Purchase
Agreement dated as of February 12, 2007 between Counterparty and Dealer and Deutsche
Bank Securities Inc., as representatives of the Purchasers party thereto (the
“Purchase Agreement”) by the number of Convertible Debentures in denominations of
USD1,000 principal amount issued pursuant to such exercise (such Convertible
Debentures, the “Additional Convertible Debentures”). For the avoidance of doubt, the
Number of Options outstanding shall be reduced by each exercise of Options hereunder.

2

 

	 	 	 	 	 
	Option Entitlement:

	 	As of any date, a number of Shares per Option equal to the Conversion
Rate (as defined in the Indenture, but without regard to any adjustments to the
Conversion Rate pursuant to Sections 12.01(e) or 12.04(f) of the Indenture).

	 
	 	 	 	 
	Strike Price:

	 	As of any date, an amount in USD, rounded to the nearest cent (with 0.5 cents
being rounded upwards), equal to USD1,000 divided by the Option Entitlement.

	 
	 	 	 	 
	Number of Shares:

	 	The product of the Number of Options, the Option Entitlement and the
Applicable Percentage.

	 
	 	 	 	 
	Applicable Percentage:

	 	70%	 	 
	 
	 	 	 	 
	Premium:

	 	USD85,162,000 (Premium per Option USD243.32; provided that if the Number of
Options is increased pursuant to the proviso to the definition of “Number of Options”
above, an additional Premium equal to the product of the number of Options by which
the Number of Options is so increased and the Premium per Option shall be paid on the
Additional Premium Payment Date.

	 
	 	 	 	 
	Premium Payment Date:

	 	The Effective Date

	 
	 	 	 	 
	Additional Premium Payment Date:

	 	The closing date for the purchase and sale of the
Additional Convertible Debentures.

	 
	 	 	 	 
	Exchange:

	 	 NASDAQ Global Market

	 
	 	 	 	 
	Related Exchange:

	 	All Exchanges

	 
	 	 	 	 
	Procedures for Exercise:
	 
	 	 	 	 
	 
	 	 	 	 
	Exercise Date:
	 	Each Conversion Date.
	 
	 	 	 	 
	Conversion Date:

	 	Each “Conversion Date”, as defined in the Indenture occurring during the
Exercise Period for Convertible Debentures.

	 
	 	 	 	 
	Exercise Period:

	 	The period from and excluding the Trade Date to and including the
Expiration Date.

	 
	 	 	 	 
	Expiration Date:

	 	The third Scheduled Trading Day immediately preceding the “Maturity Date”
as defined in the Indenture.

	 
	 	 	 	 
	Scheduled Trading Day:

	 	As defined in the Indenture

	 
	 	 	 	 
	Automatic Exercise on Conversion Dates:

	 	On each Conversion Date, a number of Options equal to the number of
Convertible Debentures converted on such Conversion Date in denominations of USD1,000
principal amount shall be automatically exercised, subject to “Notice of Exercise”
below.

	 
	 	 	 	 
	Notice of Exercise:

	 	Notwithstanding anything to the contrary in the Equity Definitions,
Dealer shall have no obligation to make any payment or delivery in respect of any
exercise of Options hereunder unless Counterparty notifies Dealer in writing prior to
5:00 PM, New

3

 

	 	 	 	 	 
	 

	 	York City time, on the Scheduled Trading Day
prior to the first Exchange Business Day of the
“Observation Period”, as defined in the
Indenture, relating to the Convertible Debentures
converted on the Conversion Date on which such
Exercise Date occurs (the “Notice Deadline”) of
(i) the number of Options being exercised on such
Exercise Date, (ii) the scheduled settlement date
under the Indenture for the Convertible
Debentures converted on the Conversion Date on
which such Exercise Date occurs and (iii) the
first day of the relevant Observation Period.
Notwithstanding the foregoing, in respect of
Options with an Exercise Date occurring during
the period from and including the 25th Scheduled
Trading Day prior to the “Maturity Date” to and
including the Expiration Date (the “Final
Conversion Period”), the Notice Deadline shall be
12:00 PM, New York City time on the Scheduled
Trading Day immediately following the Expiration
Date and the content of such notice shall be as
set forth in clauses (i) and (ii) above as they
relate to all Exercise Dates occurring during the
Final Conversion Period. For the avoidance of
doubt, if Counterparty fails to give such notice
when due in respect of any exercise of Options
hereunder, Dealer’s obligation to make any
payment or delivery in respect of such exercise
shall be permanently extinguished, and late
notice shall not cure such failure.
Notwithstanding the foregoing, a Notice of
Exercise in respect of any Exercise Date
occurring prior to the Final Conversion Period
shall be effective (and shall be considered to
have been given when due for purposes of the
first sentence of this paragraph) if given after
the Notice Deadline but prior to 5:00 PM New York
City time, on the fifth Exchange Business Day of
the relevant Observation Period, in which event
the Calculation Agent shall have the right to
adjust the Delivery Obligation as appropriate to
reflect the additional costs (including, but not
limited, to hedging mismatches and market losses)
and expenses incurred by Dealer in connection
with its hedging activities (including the
unwinding of any hedge position) as a result of
Dealer not having received such notice prior to
the Notice Deadline.

	 	 	 	 	 	 	 
	 
	 	 	 	 	 	 
	Dealer’s Telephone Number
and Telex and/or Facsimile Number
and Contact Details for purpose of	 	 	 	 
	 
	 	 	 	 	 	 
	Giving Notice:	 	To:	 	Goldman, Sachs & Co.
	 	 	 	 	One New York Plaza
	 	 	 	 	New York, NY 10004
	 
	 	 	 	 	 	 
	 	 	Attn:	 	 	 	Equity Operations:
Options and Derivatives
	 	 	Telephone:	 	(212) 902-8996
	 	 	Facsimile:	 	(212) 902-0112

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	 	 	With a copy to:
	 
	 	 	 	 	 	 
	 	 	Attn:	 	Tracey McCabe

Equity Capital Markets
	 	 	Telephone:	 	(212) 357-0428
	 	 	Facsimile:	 	(212) 902-3000

	 	 	 
	Settlement Terms:
	 	 
	Settlement Date:

	 	The settlement date for the Shares to be delivered in respect of the
Convertible Debentures being converted on the Conversion Date under the terms of the
Indenture.
	 	 	 
	Delivery Obligation:

	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the
Equity Definitions, and subject to “Notice of Exercise” above, in respect of an
Exercise Date, Dealer will deliver to Counterparty, on the related Settlement Date, a
number of Shares equal to the product of the Applicable Percentage and the aggregate
number of Shares, if any (and cash in lieu of fractional Shares, if any, resulting
from rounding of such aggregate number of Shares based on the Daily VWAP (as defined
in the Indenture) on the last day of the relevant Observation Period) that
Counterparty is obligated to deliver to the holder(s) of the Convertible Debentures
being converted on such Conversion Date pursuant to Section 12.02 of the Indenture
(such Shares and cash collectively, the “Convertible Obligation”); provided that the
Delivery Obligation shall be determined excluding any Shares (and cash in lieu of
fractional Shares) that Counterparty is obligated to deliver to holder(s) of the
Convertible Debentures as a direct or indirect result of any adjustments to the
Conversion Rate pursuant to Sections 12.01(e) or 12.04(f) of the Indenture and any
interest payment that the Counterparty is obligated to deliver to holder(s) of the
Convertible Debentures converted on such Conversion Date. For the avoidance of doubt,
(i) if the “Daily Conversion Value”, as defined in the Indenture, for each of the VWAP
Trading Days, as defined in the Indenture, occurring in the relevant Observation
Period, is less than or equal to USD50, Dealer will have no delivery obligation
hereunder in respect of such Exercise Date and (ii) if in respect of any Conversion
Date Counterparty is obligated to deliver consideration other than Shares to the
holder(s) of the Convertible Debentures converted on such Conversion Date pursuant to
Section 12.10(b) of the Indenture, then, in lieu of Shares, the Convertible Obligation
shall be payable in other consideration.
	 	 	 
	Notice of Delivery Obligation:

	 	No later than the later of (a) the relevant Exercise Date
and (b) the Exchange Business Day immediately following the last day of the

5

 

	 	 	 
	 

	 	Observation Period, Counterparty shall give
Dealer notice of the final number of Shares
and/or the amount of cash comprising the relevant
Convertible Obligation; provided that, with
respect to any Exercise Date occurring during the
Final Conversion Period, Counterparty may provide
Dealer with a single notice of the aggregate
number of Shares and/or the amount of cash
comprising the Convertible Obligations for all
such Exercise Dates (it being understood, for the
avoidance of doubt, that the requirement of
Counterparty to deliver such notice shall not
limit Counterparty’s obligations with respect to
Notice of Exercise, as set forth above, in any
way).
	 	 	 
	Other Applicable Provisions:

	 	 To the extent Dealer is obligated to deliver Shares
hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12 of the
Equity Definitions will be applicable as if “Physical Settlement” applied to the
Transaction; provided that the Representation and Agreement contained in Section 9.11
of the Equity Definitions shall be modified by excluding any representations therein
relating to restrictions, obligations, limitations or requirements under applicable
securities laws that exist as a result of the fact that Buyer is the issuer of the
	 	 	 
	Restricted Certificated Shares:

	 	Notwithstanding anything to the contrary in the Equity
Definitions, Dealer may, in whole or in part, deliver Shares in certificated form
representing the Number of Shares to be Delivered to Counterparty in lieu of delivery
through the Clearance System.
	Adjustments:
	 	 
	 	 	 
	Method of Adjustment:

	 	Notwithstanding Section 11.2 of the Equity Definitions, upon the
occurrence of any event or condition set forth in Sections 12.04(a), (b), (c), (d) and
(e) of the Indenture, the Calculation Agent shall make the corresponding adjustment in
respect of any one or more of the Number of Options, the Option Entitlement and any
other variable relevant to the exercise, settlement or payment of the Transaction, to
the extent an analogous adjustment is made under the Indenture. Immediately upon the
occurrence of any Adjustment Event, as defined in the Indenture, Counterparty shall
notify the Calculation Agent of such Adjustment Event; and once the adjustments to be
made to the terms of the Indenture and the Convertible Debentures in respect of such
Adjustment Event have been determined, Counterparty shall immediately notify the
Calculation Agent in writing of the details of such adjustments.
	Extraordinary Events:
	 	 

6

 

	 	 	 
	Merger Events:

	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event”
has the definition set forth in Section 12.10 of the Indenture.
	 	 	 
	Consequences of Merger Events:

	 	Notwithstanding Sections 12.2 and 12.3 of the Equity
Definitions, upon the occurrence of a Merger Event, the Calculation Agent shall make
the corresponding adjustment in respect of any adjustment under the Indenture to any
one or more of the nature of the Shares, the Number of Options, the Option Entitlement
and any other variable relevant to the exercise, settlement or payment for the
Transaction, to the extent an analogous adjustment is made under the Indenture in
respect of such Merger Event; provided that such adjustment shall be made without
regard to any adjustment to the Conversion Rate for the issuance of additional shares
as set forth in Sections 12.01(e) and 12.04(f) of the Indenture; and provided further
that, notwithstanding the foregoing proviso, the Calculation Agent shall make
additional adjustments, as appropriate, to the Delivery Obligation (including in
connection with a Merger Event that may give rise to an adjustment to the Conversion
Rate pursuant to Section 12.01(e) of the Indenture) to preserve the fair value of the
Transaction (provided that no such additional adjustment, either alone or together
with any other adjustment hereunder to the terms of the Transaction, shall result in
any Delivery Obligation exceeding the related Convertible Obligation, determined
excluding any Shares (and cash in lieu of fractional Shares) that Counterparty is
obligated to deliver to holder(s) of the Convertible Debenture as a direct or indirect
result of any adjustments to the Conversion Rate pursuant to Section 12.04(f) of the
Indenture).
	 	 	 
	Notice of Merger Consideration:

	 	Upon the occurrence of a Merger Event that causes the
Shares to be converted into the right to receive more than a single type of
consideration (determined based in part upon any form of stockholder election),
Counterparty shall reasonably promptly (but in any event prior to the Merger Date)
notify the Calculation Agent of (x) the weighted average of the types and amounts of
consideration received by the holders of Shares who affirmatively make such an
election or (y) if no holder of Shares affirmatively makes such an election, the
weighted average of the types and amount of consideration actually received by holders
of Shares.
	 	 	 
	Nationalization, Insolvency or Delisting:

	 	Cancellation and Payment (Calculation Agent Determination);
provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity
Definitions, it will also constitute a Delisting if the Exchange is located in the
United States and the Shares are not immediately re-listed, re-traded or re-

7

 

	 	 	 
	 

	 	quoted on any of the New York Stock Exchange, the
American Stock Exchange, the NASDAQ Global Select
Market or the NASDAQ Global Market (or their
respective successors); if the Shares are
immediately re-listed, re-traded or re-quoted on
any such exchange or quotation system, such
exchange or quotation system shall thereafter be
deemed to be the Exchange.

	 	 	 
	Additional Disruption Events:
	 	 
	          (a)           Change in Law:

	 	Applicable
	 
	          (b)           Failure to Deliver:

	 	Applicable
	 
	          (c)           Insolvency Filing:

	 	Applicable
	 
	          (d)           Hedging Disruption:

	 	Applicable
	 
	          (e)           Increased Cost of Hedging:

	 	Not Applicable
	 
	 	 
	Hedging Party:

	 	For all applicable Additional Disruption Events, Dealer
	 
	 	 
	Determining Party:

	 	For all applicable Additional Disruption Events, Dealer
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgments
	 	 
	Regarding Hedging Activities:

	 	Applicable; provided, however, that Agreements and
Acknowledgments Regarding Hedging Activities shall be subject to the other respective
representations, warranties and agreements set forth herein.
	 
	 	 
	Additional Acknowledgments:

	 	Applicable
	 
	 	 
	Credit Support Provider:

	 	With respect to Counterparty, none. With respect to Dealer, The
Goldman Sachs Group, Inc.
	 
	 	 
	Credit Support Document:

	 	With respect to Dealer, the General Guarantee Agreement, dated
January 30, 2006, made by The Goldman Sachs Group, Inc. in favor of each person to
whom Dealer may owe any Obligations (as defined therein) from time to time.
	 
	 	 
	3. Calculation Agent:

	 	Dealer
	 
	 	 
	4. Account Details:
	 	 
	 
	 	 
	Dealer Payment Instructions:
	 	 

Chase Manhattan Bank New York

For A/C Goldman, Sachs & Co.

A/C #930-1-011483

ABA: 021-000021

Counterparty Payment Instructions:

To be provided by Counterparty.

8

 

	 	5.	 	Offices:

     The Office of Dealer for the Transaction is:

     One New York Plaza, New York, New York 10004

     Counterparty is not a multibranch party.

	 	6.	 	Notices: For purposes of this Confirmation:

	 	(a)	 	Address for notices or communications to Counterparty:

	 	 	 	 	 	 	 
	 

	 	To:
	 	Illumina, Inc.
	 	 
	 

	 	Attn:
	 	Christian O. Henry	 	 
	 

	 	 	 	Senior Vice President, Chief Financial Officer	 	 
	 

	 	Telephone:
	 	858-202-4508	 	 
	 

	 	Facsimile:
	 	858-202-4599	 	 
	 

	 	 	 	 	 	 
	 

	 	With a copy to:	 	 	 	 
	 

	 	 	 	 	 	 
	 

	 	Attn:
	 	Glenn Pollner	 	 
	 

	 	 	 	Dewey Ballantine LLP	 	 
	 

	 	Facsimile:
	 	212-259-6333	 	 

	 	(b)	 	Address for notices or communications to Dealer:

	 	 	 	 	 	 	 
	 

	 	To:
	 	Goldman, Sachs & Co.
	 	 
	 

	 	 	 	One New York Plaza	 	 
	 

	 	 	 	New York, NY 10004	 	 
	 

	 	Attn:
	 	Equity Operations: Options and Derivatives	 	 
	 

	 	Telephone:
	 	(212) 902-1981	 	 
	 

	 	Facsimile:
	 	(212) 428-1980/1983	 	 
	 
	 	 	 	 	 	 
	 

	 	With a copy to:	 	 	 	 
	 
	 	 	 	 	 	 
	 

	 	Attn:
	 	Tracey McCabe	 	 
	 

	 	 	 	Equity Capital Markets	 	 
	 

	 	Telephone:
	 	(212) 357-0428	 	 
	 

	 	Facsimile:
	 	(212) 902-3000	 	 

	 	7.	 	Representations, Warranties and Agreements:

     (a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Counterparty represents and warrants to and for the benefit of, and agrees with,
Dealer as follows:

     (i)  On the Trade Date, (A) the Counterparty is not aware of any material nonpublic
information regarding Counterparty or the Shares and (B) all reports and other documents
filed by Counterparty with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) when considered as a whole
(with the more recent such reports and documents deemed to amend inconsistent statements
contained in any earlier such reports and documents), taken together with the press release
issued by Counterparty relating to the Convertible Debentures, do not contain any untrue
statement of a material fact or any omission of a material fact required to be stated
therein or necessary to make the statements therein, in the light of the circumstances in
which they were made, not misleading.

     (ii)  (A) On the Trade Date, the Shares or securities that are convertible into, or
exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted
period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”)
and (B) Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other

9

 

than a distribution meeting the requirements of the exceptions set
forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange
Business Day immediately following the Trade Date (it being understood that Counterparty
makes no representation pursuant to this clause in respect of any action or inaction taken
by Dealer (or any other dealer entering into a similar transaction to the Transaction in
connection with the offering of the Convertible Debentures) or any Purchaser of the
Convertible Debentures, or any of their respective affiliates, in each case other than
actions or inactions taken or not taken at Counterparty’s instruction or request).

     (iii)  On the Trade Date, neither Counterparty nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or
other derivative instrument) purchase, offer to purchase, place any bid or limit order that
would effect a purchase of, or commence any tender offer relating to, any Shares (or an
equivalent interest, including a unit of beneficial interest in a trust or limited
partnership or a depository share) or any security convertible into or exchangeable or
exercisable for Shares, except through Dealer or as otherwise disclosed in the preliminary
offering memorandum relating to the Convertible Debentures (it being understood that
Counterparty makes no representation pursuant to this clause in respect of any action or
inaction taken by Dealer (or any other dealer entering into a similar transaction to the
Transaction in connection with the offering of the Convertible Debentures) or any Purchaser
of the Convertible Debentures, or any of their respective affiliates, in each case other
than actions or inactions taken or not taken at Counterparty’s instruction or request).

     (iv)  Without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Dealer is not making any representations or warranties with
respect to the treatment of the Transaction under FASB Statements 128, 133 ( as amended),
149 or 150, EITF Issue No. 00-19, 01-6 or 03-6 (or any successor issue statements) or under
FASB’s Liabilities & Equity Project.

     (v)  Without limiting the generality of Section 3(a)(iii) of the Agreement, the
Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act (it being
understood that Counterparty makes no representation pursuant to this clause in respect of
any action or inaction taken by Dealer (or any other dealer entering into a similar
transaction to the Transaction in connection with the offering of the Convertible
Debentures) or any Purchaser of the Convertible Debentures, or any of their respective
affiliates, in each case other than actions or inactions taken or not taken at
Counterparty’s instruction or request).

     (vi)  Prior to the Trade Date, Counterparty shall deliver to Dealer a resolution of
Counterparty’s board of directors authorizing the Transaction and such other certificate or
certificates as Dealer shall reasonably request.

     (vii)  Counterparty is not entering into this Confirmation to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for
Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any
security convertible into or exchangeable for Shares) or otherwise in violation of the
Exchange Act.

     (viii)  Counterparty is not, and after giving effect to the transactions contemplated
hereby will not be, required to register as, an “investment company” as such term is
defined in the Investment Company Act of 1940, as amended.

     (ix)  On each of the Trade Date, and the Premium Payment Date and the Additional
Premium Payment Date, if any, Counterparty is not “insolvent” (as such term is defined
under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the
“Bankruptcy Code”)) and Counterparty would be able to purchase the Shares hereunder in
compliance with the laws of the jurisdiction of Counterparty’s incorporation.

     (x)  The representations and warranties of Counterparty set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement are true and correct in all material
respects.

     (b) Each of Dealer and Counterparty agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

10

 

     (c) Each of Dealer and Counterparty acknowledges that the offer and sale of the Transaction to
it is intended to be exempt from registration under the Securities Act of 1933, as amended (the
“Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and
warrants to Dealer that (i) it has the financial ability to bear the economic risk of its
investment in the Transaction and is able to bear a total loss of its investment and its
investments in and liabilities in respect of the Transaction, which it understands are not readily
marketable, are not disproportionate to its net worth, and it is able to bear any loss in
connection with the Transaction, including the loss of its entire investment in the Transaction,
(ii) it is an “accredited investor” as that term is defined in Regulation D as promulgated under
the Securities Act, (iii) the assignment, transfer or other disposition of the Transaction has not
been and will not be registered under the Securities Act and is restricted under this Confirmation,
the Securities Act and state securities laws, and (iv) its financial condition is such that it has
no need for liquidity with respect to its investment in the Transaction and no need to dispose of
any portion thereof to satisfy any existing or contemplated undertaking or indebtedness and is
capable of assessing the merits of and understanding (on its own behalf or through independent
professional advice), and understands and accepts, the terms, conditions and risks of the
Transaction.

     (d) Each of Dealer and Counterparty agrees and acknowledges (A) that this Confirmation is (i)
a “securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with
respect to which each payment and delivery hereunder is a “settlement payment,” as such term is
defined in Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is
defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery
hereunder is a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code, and
(B) that Dealer is entitled to the protections afforded by, among other sections, Section
362(b)(6), 362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code.

     (e) Each party acknowledges and agrees to be bound by the Conduct Rules of the National
Association of Securities Dealers, Inc. applicable to transactions in options, and further agrees
not to violate the position and exercise limits set forth therein.

     (f) Counterparty shall deliver to Dealer an opinion of counsel, dated as of the Trade Date and
reasonably acceptable to Dealer in form and substance, with respect to certain matters to be agreed
upon.

	 	8.	 	Other Provisions:

     (a) Right to Extend. Dealer may postpone any Exercise Date or any other date of valuation or
delivery by Dealer, with respect to some or all of the relevant Options (in which event the
Calculation Agent shall make appropriate adjustments to the Delivery Obligation), if Dealer
determines, in its reasonable discretion based on the advice of counsel, that such extension is
reasonably required or necessary for legal, regulatory or self-regulatory organization compliance
by Dealer in connection with its hedging, hedge unwind or settlement activity hereunder. In the
event this Section 8(a) affects any delivery owed by Dealer hereunder, Dealer shall make such
delivery as soon as reasonably practicable in accordance with this Section 8(a).

     (b) Additional Termination Events. The occurrence of (i) an event of default with respect to
Counterparty under the terms of the Convertible Debentures as set forth in Section 5.01 of the
Indenture that results in the Convertible Debentures becoming due and payable prior to their
maturity pursuant to the terms of the Indenture, or (ii) an Amendment Event shall be an Additional
Termination Event with respect to which the Transaction is the sole Affected Transaction and
Counterparty is the sole Affected Party.

     “Amendment Event” means that Counterparty amends, modifies, supplements or receives a waiver
in respect of any term of the Indenture or the Convertible Debentures governing the principal
amount, coupon, maturity, repurchase obligation of Counterparty, redemption right of Counterparty,
any term relating to conversion of the Convertible Debentures (including changes to the conversion
price, conversion settlement dates or conversion conditions), or any term that would require
consent of the holders of not less than 100% of the principal amount of the Convertible Debentures
to amend, in each case without the prior consent of Dealer.

11

 

     (c) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If, subject to Section 8(i) below, Dealer shall owe Counterparty any amount pursuant to
Section 12.2 of the Equity Definitions and “Consequences of Merger Events” above, or Sections 12.3,
12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of an Insolvency, a
Nationalization or a Merger Event, in each case, in which the consideration or proceeds to be paid
to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement
(except in the event of an Event of Default in which Counterparty is the Defaulting Party or a
Termination Event in which Counterparty is the Affected Party, that resulted from an event or
events within Counterparty’s control) (a “Payment Obligation”), Counterparty shall have the right,
in its sole discretion, to require Dealer to satisfy any such Payment Obligation by the Share
Termination Alternative (as defined below) by giving irrevocable telephonic notice to Dealer,
confirmed in writing within one Scheduled Trading Day, between the hours of 9:00 A.M. and 4:00 P.M.
New York City time on the Merger Date, Announcement Date or Early Termination Date, as applicable
(“Notice of Share Termination”). Upon such Notice of Share Termination, the following provisions
shall apply on the Scheduled Trading Day immediately following the Merger Date, Announcement Date
or Early Termination Date, as applicable:

	 	 	 
	Share Termination Alternative:

	 	Applicable and means that Dealer shall
deliver to Counterparty the Share
Termination Delivery Property on the date
on which the Payment Obligation would
otherwise be due pursuant to Section 12.7
or 12.9 of the Equity Definitions or
Section 6(d)(ii) of the Agreement, as
applicable (the “Share Termination
Payment Date”), in satisfaction of the
Payment Obligation.
	 
	 	 
	Share Termination Delivery 

Property:

	 	A number of Share Termination Delivery
Units, as calculated by the Calculation
Agent, equal to the Payment Obligation
divided by the Share Termination Unit
Price. The Calculation Agent shall
adjust the Share Termination Delivery
Property by replacing any fractional
portion of a security therein with an
amount of cash equal to the value of such
fractional security based on the values
used to calculate the Share Termination
Unit Price.
	 
	 	 
	Share Termination Unit Price:

	 	The value of property contained in one
Share Termination Delivery Unit on the
date such Share Termination Delivery
Units are to be delivered as Share
Termination Delivery Property, as
determined by the Calculation Agent in
its discretion by commercially reasonable
means and notified by the Calculation
Agent to Dealer at the time of
notification of the Payment Obligation.
	 
	 	 
	Share Termination Delivery Unit:

	 	In the case of a Termination Event, Event
of Default or Delisting, one Share or, in
the case of an Insolvency,
Nationalization or Merger Event, a unit
consisting of the number or amount of
each type of property received by a
holder of one Share (without
consideration of any requirement to pay
cash or other consideration in lieu of
fractional amounts of any securities) in
such Insolvency, Nationalization or
Merger Event. If such Insolvency,
Nationalization or Merger Event involves
a choice of consideration to be received
by holders of Shares, such holder shall
be deemed to have elected to receive (x)
the weighted average of the types and
amounts of consideration received by the
holders of Shares who affirmatively make
such an election or (y) if no holder of
Shares affirmatively makes such an
election, the weighted average of the
types and amount of consideration
actually received by holders of Shares.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Other applicable provisions:

	 	If Share Termination Alternative is
applicable, the provisions of Sections
9.8, 9.9, 9.10, 9.11 and 9.12 of the
Equity Definitions will be applicable as
if “Physical Settlement” applied to the
Transaction,

12

 

	 	 	 
	 

	 	except that all references
to “Shares” shall be read as references
to “Share Termination Delivery Units”;
and provided that the Representation and
Agreement contained in Section 9.11 of
the Equity Definitions shall be modified
by excluding any representations therein
relating to restrictions, obligations,
limitations or requirements under
applicable securities laws as a result of
the fact that Buyer is the issuer of any
Share Termination Delivery Units (or any
part thereof).

The parties hereby agree that, notwithstanding anything to the contrary herein or in the Agreement,
in the event that following the payment of the Premium by Counterparty to Dealer (i) an Early
Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is
designated with respect to the Transaction and, as a result, Counterparty owes to Dealer an amount
calculated under Section 6(e) of the Agreement or (ii) an Extraordinary Event occurs that results
in the termination or cancellation of any Transaction pursuant to Article 12 of the Equity
Definitions and, as a result, Counterparty owes to Dealer a Cancellation Amount or other amount in
respect of the Transaction, such amount shall be deemed to be zero.

     (d) Disposition of Hedge Shares. Dealer intends to conduct its hedging activities in
connection with the Transaction in a manner that it believes on the Trade Date, based on its good
faith reasonable judgment, will not require Counterparty to register under the Securities Act or
any state securities laws any Shares acquired by Dealer for the purpose of hedging its obligations
pursuant to the Transaction (any such Shares, “Hedge Shares”). Nevertheless, Counterparty hereby
agrees that if, in the good faith reasonable judgment of Dealer based on the advice of counsel, any
Hedge Shares cannot be sold in the U.S. public market by Dealer without registration under the
Securities Act, Counterparty shall, at its election: (i) in order to allow Dealer to sell such
Hedge Shares in a registered offering, make available to Dealer an effective registration statement
under the Securities Act to cover the resale of such Hedge Shares and (A) enter into an agreement,
in form and substance reasonably satisfactory to Dealer, substantially in the form of an
underwriting agreement for a registered offering, (B) provide accountant’s “comfort” letters in
customary form for registered offerings of equity securities (provided that it shall not be
considered a failure to provide such a letter if Counterparty has used reasonable efforts to
provide such a letter and Counterparty’s accountants have refused to do so solely as a result of a
failure by Dealer to provide information to such accountants that is reasonably requested by such
accountants in accordance with customary practice under SAS 72 or a successor SAS provision), (C)
provide disclosure opinions of nationally recognized outside counsel to Counterparty reasonably
acceptable to Dealer, (D) provide other customary opinions, certificates and closing documents
customary in form for registered offerings of equity securities and (E) afford Dealer a reasonable
opportunity to conduct a “due diligence” investigation with respect to Counterparty customary in
scope for underwritten offerings of equity securities; provided, however, that if Dealer, in its
sole reasonable discretion, is not satisfied with access to due diligence materials, the results of
its due diligence investigation, or the procedures and documentation for the registered offering
referred to above, then clause (ii) or clause (iii) of this Section 8(d) shall apply at the
election of Counterparty; (ii) in order to allow Dealer to sell the Hedge Shares in a private
placement, enter into a private placement agreement substantially similar to private placement
purchase agreements customary for private placements of equity securities, in form and substance
reasonably satisfactory to Dealer, including customary representations, covenants, blue sky and
other governmental filings and/or registrations, indemnities to Dealer, due diligence rights (for
Dealer or any designated buyer of the Hedge Shares from Dealer), opinions and certificates and such
other documentation as is customary for private placements agreements, all reasonably acceptable to
Dealer (in which case, the Calculation Agent shall make any adjustments to the terms of the
Transaction that are necessary, in its reasonable judgment to compensate Dealer in a commercially
reasonable manner for any discount from the public market price of the Shares incurred on the sale
of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Dealer at the VWAP
Price on such Exchange Business Days, and in the amounts, requested by Dealer. “VWAP Price” means,
on any Exchange Business Day, the per Share volume-weighted average price as displayed under the
heading “Bloomberg VWAP” on Bloomberg page ILMN.Q <equity> VAP (or any successor thereto) in
respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Exchange Business
Day (or if such volume-weighted average price is unavailable, the market value of one Share on such
Exchange Business Day, as determined by the Calculation Agent using a volume-weighted method).

13

 

     (e) Repurchase Notices. Counterparty shall, on any day on which Counterparty effects any
repurchase of Shares, promptly give Dealer a written notice of such repurchase (a “Repurchase
Notice”) on such day if, following such repurchase, the Notice Percentage as determined on such day
is (i) greater than 8% and (ii) greater by 0.5% than the Notice Percentage included in the
immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice,
greater than the Notice Percentage as of the date hereof). The “Notice Percentage” as of any day
is the fraction, expressed as a percentage, the numerator of which is the Number of Shares and the
denominator of which is the number of Shares outstanding on such day. In the event that
Counterparty fails to provide Dealer with a Repurchase Notice on the day and in the manner
specified in this Section 8(e) then Counterparty agrees to indemnify and hold harmless Dealer, its
affiliates and their respective directors, officers, employees, agents and controlling persons
(Dealer and each such person being an “Indemnified Party”) from and against any and all losses,
claims, damages and liabilities (or actions in respect thereof), joint or several, to which such
Indemnified Party may become subject under applicable securities laws, including without
limitation, Section 16 of the Exchange Act, relating to or arising out of such failure. If for any
reason the foregoing indemnification is unavailable to any Indemnified Party or insufficient to
hold harmless any Indemnified Party, then Counterparty shall contribute, to the maximum extent
permitted by law, to the amount paid or payable by the Indemnified Party as a result of such loss,
claim, damage or liability. In addition, Counterparty will reimburse any Indemnified Party for all
expenses (including reasonable counsel fees and expenses) as they are incurred (after notice to
Counterparty) in connection with the investigation of, preparation for or defense or settlement of
any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not
such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding
is initiated or brought by or on behalf of Counterparty. This indemnity shall survive the
completion of the Transaction contemplated by this Confirmation and any assignment and delegation
of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit
of any permitted assignee of Dealer.

     (f) Transfer and Assignment. Dealer may transfer or assign its rights and obligations
hereunder and under the Agreement, in whole or in part, to any of its affiliates without the
consent of Counterparty, so long as the obligations of such affiliate hereunder are guaranteed by
The Goldman Sachs Group, Inc. In connection with any assignment or transfer pursuant to the
immediately preceding sentence, the guarantee of any guarantor of the relevant transferee’s
obligations under the Transaction shall constitute a Credit Support Document under the Agreement.
In connection with any transfer or assignment by Dealer of its rights and obligations hereunder and
under the Agreement, Dealer shall promptly provide written notice to Counterparty of such transfer
or assignment, as the case may be, and the identity of the relevant transferee or assignee. If at
any time at which the Equity Percentage exceeds 9.0%, Dealer, in its discretion, is unable to
effect a transfer or assignment to a third party after its commercially reasonable efforts on
pricing terms reasonably acceptable to Dealer such that the Equity Percentage is reduced to 8.5% or
less, Dealer may designate any Scheduled Trading Day as an Early Termination Date with respect to a
portion (the “Terminated Portion”) of the Transaction, such that the Equity Percentage following
such partial termination will be equal to or less than 8.5%. In the event that Dealer so
designates an Early Termination Date with respect to a portion of the Transaction, a payment or
delivery shall be made pursuant to Section 6 of the Agreement and Section 8(c) of this Confirmation
as if (i) an Early Termination Date had been designated in respect of a Transaction having terms
identical to the Terminated Portion of the Transaction, (ii) Counterparty shall be the sole
Affected Party with respect to such partial termination and (iii) such portion of the Transaction
shall be the only Terminated Transaction. The “Equity Percentage” as of any day is the fraction,
expressed as a percentage, (A) the numerator of which will be the aggregate number of Shares that
Dealer and any of its affiliates subject to aggregation with Dealer under Section 13 of the
Exchange Act and the rules promulgated thereunder beneficially own (within the meaning of such
Section 13 and rules) on such day and (B) the denominator of which is the number of Shares
outstanding on such day. Counterparty may transfer or assign its rights and obligations hereunder
and under the Agreement, in whole or in part, to any party with the consent of Dealer, such consent
not to be unreasonably withheld.

     (g) Staggered Settlement. If the Staggered Settlement Equity Percentage as of any Exchange
Business Day during any Observation Period is greater than 4.5%, the Dealer may, by notice to
Counterparty prior to the related Settlement Date (the “Nominal Settlement Date”), elect to deliver
the Shares on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on
the Nominal Settlement Date as follows:

14

 

     (i) in such notice, Dealer will specify to Counterparty the related Staggered
Settlement Dates (each of which will be on or prior to such Nominal Settlement Date, but
not prior to the beginning of the related Observation Period) or delivery times and how it
will allocate the Shares it is required to deliver under “Delivery Obligation” (above)
among the Staggered Settlement Dates or delivery times; and

     (ii) the aggregate number of Shares that Dealer will deliver to Counterparty hereunder
on all such Staggered Settlement Dates and delivery times will equal the number of Shares
that Dealer would otherwise be required to deliver on such Nominal Settlement Date.

The “Staggered Settlement Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the sum of (x) the number of Shares that Dealer or any of
its affiliates subject to aggregation with Dealer under Section 13 of the Exchange Act and the
rules promulgated thereunder beneficially own (within the meaning of such Section 13 and rules) on
such day, other than any Shares so owned as a hedge of the Transaction, and (y) the Number of
Shares and (B) the denominator of which is the number of Shares outstanding on such day.

     (h) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Counterparty and each of its employees, representatives, or other agents may disclose
to any and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Counterparty relating to such tax treatment and tax structure.

     (i) Netting and Set-off. Notwithstanding any provision of the Agreement (including without
limitation Section 6(f) thereof) and this Confirmation (including without limitation this Section
8(i)) or any other agreement between the parties to the contrary, (A) Counterparty shall not net or
set off its obligations under the Transaction, if any, against its rights against Dealer under any
other transaction or instrument and (B) Dealer shall not net or set off any rights of Dealer
against Counterparty arising under the Transaction, if any, against its obligations to Counterparty
under any other transaction or instrument.

     (j) Equity Rights. Dealer acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties
agree that the preceding sentence shall not apply at any time other than during Counterparty’s
bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations
under this Confirmation or the Agreement.

     (k) Early Unwind. In the event the sale by Counterparty of the Convertible Debentures is not
consummated with the Purchasers pursuant to the Purchase Agreement for any reason by the close of
business in New York on February 16, 2007 (or such later date as agreed upon by the parties, which
in no event shall be later than February 23, 2007) (February 16, 2007 or such later date being the
“Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”), on the
Early Unwind Date and the Transaction and all of the respective rights and obligations of Dealer
and Counterparty thereunder shall be cancelled and terminated. Following such termination,
cancellation and payment, each party shall be released and discharged by the other party from and
agrees not to make any claim against the other party with respect to any obligations or liabilities
of either party arising out of and to be performed in connection with the Transaction either prior
to or after the Early Unwind Date. Dealer and Counterparty represent and acknowledge to the other
that upon an Early Unwind and following the payment referred to above, all obligations with respect
to the Transaction shall be deemed fully and finally discharged.

     (l) Adjustment Upon Amendment or Exchange of Convertible Debentures. If the Convertible
Debentures are amended to change the settlement method thereunder (including, without limitation,
to change from net share settlement to physical settlement) or are exchanged for new convertible
debentures with a different settlement method but otherwise substantially identical to the
Convertible Debentures, the parties shall work together in good faith to adjust the terms of the
Transaction (including, without limitation, the settlement method under the Transaction) to
preserve the fair value of the Transaction and the economic intent of the parties in light of such
amendment or exchange.

15

 

     (m) Governing Law and Waiver of Jury Trial. THE AGREEMENT AND THIS CONFIRMATION SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH PARTY HEREBY WAIVES TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE AGREEMENT, THIS CONFIRMATION OR THE
TRANSACTION (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     (n) Submission to Jurisdiction. Each party hereby irrevocably and unconditionally submits for
itself and its property in any legal action or proceeding by the other party against it relating to
the Transaction to which it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the exclusive jurisdiction of the Supreme Court of the State of New York,
sitting in New York County, the courts of the United States of America for the Southern District of
New York, and appellate courts from any thereof.

     (o) Counterparts. This Confirmation may be executed in several counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument.

16

 

     Counterparty hereby agrees (a) to check this Confirmation carefully and immediately
upon receipt so that errors or discrepancies can be promptly identified and rectified and (b) to
confirm that the foregoing (in the exact form provided by Dealer) correctly sets forth the terms of
the agreement between Dealer and Counterparty with respect to the Transaction, by manually signing
this Confirmation or this page hereof as evidence of agreement to such terms and providing the
other information requested herein and immediately returning an executed copy to Equity Derivatives
Documentation Department, Facsimile No. (212) 428-1980/83.

	 	 	 	 	 
	 	Yours faithfully,

GOLDMAN, SACHS & CO.

/s/  Conrad Langenegger, Vice President

 

Authorized Signatory 

 	 
	 	 	 
	 	 	 
	 	 	 
	 

Agreed and Accepted By:

ILLUMINA, INC.

By: /s/ Christian O. Henry

      Name: Christian O. Henry

      Title: Senior Vice President & Chief Financial Officerexv10w2

 

EXHIBIT 10.2

	 	 	 
	 

	 	
	 
	 	 
	 

	 	Deutsche Bank AG London
	 

	 	Winchester house
	 

	 	1 Great Winchester St, London
	 

	 	EC2N 2DB
	 

	 	Telephone: 44 20 7545 8000
	 
	 	 
	 

	 	c/o Deutsche Bank Securities
Inc.
	 

	 	60 Wall Street
	 

	 	New York, NY 10005
	 

	 	Telephone: 212-250-2500
	 
	 	 
	 

	 	Internal Reference: 159077

	 	 	 
	DATE:
	 	February 12, 2007
	 
	 	 
	TO:
	 	Illumina, Inc.
	ATTENTION:
	 	Christian O. Henry
	 
	 	Senior Vice President, Chief Financial Officer
	TELEPHONE:
	 	858-202-4508
	FACSIMILE:
	 	858-202-4599
	 
	 	 
	FROM:
	 	Deutsche Bank AG London
	TELEPHONE:
	 	+ 44 20 7545 8193
	FACSIMILE:
	 	+ 44 11 3336 2009
	 
	 	 
	SUBJECT:
	 	Convertible Bond Hedge Transaction
	 
	 	 
	REFERENCE NUMBER(S):
	 	159077

     The purpose of this communication (this “Confirmation”) is to set forth the terms and
conditions of the above-referenced transaction entered into on the Trade Date specified below (the
"Transaction”) between Deutsche Bank AG acting through its London branch (“Bank”) and Illumina,
Inc. (“Counterparty”). This communication constitutes a “Confirmation” as referred to in the ISDA
Master Agreement specified below.

     DEUTSCHE BANK AG IS NOT REGISTERED AS A BROKER DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT
OF 1934, AS AMENDED. DEUTSCHE BANK SECURITIES INC. HAS ACTED SOLELY AS AGENT IN CONNECTION WITH
THE TRANSACTION AND HAS NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT,

	 	 	 
	Chairman of the Supervisory Board: Clemens Börsig
Board of Managing Directors: Hermann-Josef Lamberti,
Josef Ackermann, Tessen von Heydebreck, Anthony
DiIorio, Hugo Banziger

	 	Deutsche Bank
AG is regulated by
the FSA for the
conduct of
designated
investment business
in the UK, is a
member of the
London Stock
Exchange and is a
limited liability
company
incorporated in the
Federal Republic of
Germany HRB No. 30
000 District Court
of Frankfurt am
Main; Branch
Registration No. in
England and Wales
BR000005,
Registered address:
	 

	 	Winchester House, 1
Great Winchester
Street, London EC2N
2DB.

 

 

GUARANTEE OR OTHERWISE WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION.
DEUTSCHE BANK AG, LONDON BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION
(SIPC).

     1. This Confirmation is subject to, and incorporates, the definitions and provisions of the
2000 ISDA Definitions (including the Annex thereto) (the “2000 Definitions”) and the definitions
and provisions of the 2002 ISDA Equity Derivatives Definitions (the “Equity Definitions”, and
together with the 2000 Definitions, the “Definitions”), in each case as published by the
International Swaps and Derivatives Association, Inc. (“ISDA”). In the event of any inconsistency
between the 2000 Definitions and the Equity Definitions, the Equity Definitions will govern.
Certain defined terms used herein have the meanings assigned to them in the Indenture to be dated
as of February 16, 2007 between Counterparty and The Bank of New York, as trustee (the “Indenture”)
relating to the USD350,000,000 principal amount of 0.625% convertible senior notes due 2014 (the
"Convertible Debentures”). In the event of any inconsistency between the terms defined in the
Indenture and this Confirmation, this Confirmation shall govern. For the avoidance of doubt,
references herein to sections of the Indenture are based on the draft of the Indenture most
recently reviewed by the parties at the time of execution of this Confirmation. If any relevant
sections of the Indenture are changed, added or renumbered prior to execution of the Indenture, the
parties will amend this Confirmation in good faith to preserve the economic intent of the parties,
as evidenced by such draft of the Indenture. The Transaction is subject to early unwind if the
closing of the Convertible Debentures is not consummated for any reason, as set forth below in
Section 8(k).

     Each party is hereby advised, and each such party acknowledges, that the other party has
engaged in, or refrained from engaging in, substantial financial transactions and has taken other
material actions in reliance upon the parties’ entry into the Transaction to which this
Confirmation relates on the terms and conditions set forth below.

     This Confirmation evidences a complete and binding agreement between Bank and Counterparty as
to the terms of the Transaction to which this Confirmation relates. This Confirmation shall be
subject to an agreement (the “Agreement”) in the form of the 1992 ISDA Master Agreement as if Bank
and Counterparty had executed an agreement in such form on the date hereof (but without any
Schedule except for (i) the election of Loss and Second Method and US Dollars (“USD”) as the
Termination Currency and (ii) the replacement of the word “third” in the last line of Section
5(a)(i) with the word “first”).

     All provisions contained in, or incorporated by reference to, the Agreement will govern this
Confirmation except as expressly modified herein. In the event of any inconsistency between this
Confirmation and either the Definitions or the Agreement, this Confirmation shall govern.

     The Transaction hereunder shall be the sole Transaction under the Agreement. If there exists
any ISDA Master Agreement between Bank and Counterparty or any confirmation or other agreement
between Bank and Counterparty pursuant to which an ISDA Master Agreement is deemed to exist between
Bank and Counterparty, then notwithstanding anything to the contrary in such ISDA Master Agreement,
such confirmation or agreement or any other agreement to which Bank and Counterparty are parties,
the Transaction shall not be considered Transactions under, or otherwise governed by, such existing
or deemed ISDA Master Agreement.

     2. The Transaction constitutes a Share Option Transaction for purposes of the Equity
Definitions. The terms of the particular Transaction to which this Confirmation relates are as
follows:

General Terms:

	 	 	 	 	 
	 

	 	Trade Date:
	 	February 12, 2007
	 
	 	 	 	 
	 

	 	Effective Date:
	 	February 16, 2007
	 
	 	 	 	 
	 

	 	Option Style:
	 	Modified American, as described under “Procedures for Exercise” below.
	 
	 	 	 	 

2

 

	 	 	 	 	 
	 

	 	Option Type:
	 	Call
	 
	 	 	 	 
	 

	 	Seller:
	 	Bank
	 
	 	 	 	 
	 

	 	Buyer:
	 	Counterparty
	 
	 	 	 	 
	 

	 	Shares:
	 	The Common Stock of Counterparty, par value USD0.01 per share (Ticker Symbol:
	 

	 	 	 	“ILMN”).
	 
	 	 	 	 
	 

	 	Number of Options:
	 	The number of Convertible Debentures in denominations of USD1,000
principal amount issued by Counterparty on the closing date for the initial issuance
of the Convertible Debentures; provided that the Number of Options shall be
automatically increased as of the date of exercise by the Purchasers (as defined in
the Purchase Agreement), of their option pursuant to Section 2 of the Purchase
Agreement dated as of February 12, 2007 between Counterparty and Deutsche Bank
Securities Inc. and Goldman, Sachs & Co., as representatives of the Purchasers party
thereto (the “Purchase Agreement”) by the number of Convertible Debentures in
denominations of USD1,000 principal amount issued pursuant to such exercise (such
Convertible Debentures, the “Additional Convertible Debentures”). For the avoidance
of doubt, the Number of Options outstanding shall be reduced by each exercise of
Options hereunder.
	 
	 	 	 	 
	 

	 	Option Entitlement:
	 	As of any date, a number of Shares per Option equal to the Conversion
Rate (as defined in the Indenture, but without regard to any adjustments to the
Conversion Rate pursuant to Sections 12.01(e) or 12.04(f) of the Indenture).
	 
	 	 	 	 
	 

	 	Strike Price:
	 	As of any date, an amount in USD, rounded to the nearest cent (with 0.5 cents
being rounded upwards), equal to USD1,000 divided by the Option Entitlement.
	 
	 	 	 	 
	 

	 	Number of Shares:
	 	The product of the Number of Options, the Option Entitlement and the
Applicable Percentage.
	 
	 	 	 	 
	 

	 	Applicable Percentage:
	 	30%
	 
	 	 	 	 
	 

	 	Premium:
	 	USD36,498,000 (Premium per Option USD104.28); provided that if the Number of
Options is increased pursuant to the proviso to the definition of “Number of Options”
above, an additional Premium equal to the product of the number of Options by which
the Number of Options is so increased and the Premium per Option shall be paid on the
Additional Premium Payment Date.
	 
	 	 	 	 
	 

	 	Premium Payment Date:
	 	The Effective Date
	 
	 	 	 	 
	 

	 	Additional Premium Payment Date:
	 	The closing date for the purchase and sale of the
Additional Convertible Debentures.
	 
	 	 	 	 
	 

	 	Exchange:
	 	NASDAQ Global Market
	 
	 	 	 	 
	 

	 	Related Exchange:
	 	All Exchanges

3

 

	 	 	 	 	 
	Procedures for Exercise:	 	 
	 
	 	 	 	 
	 

	 	Exercise Date:
	 	Each Conversion Date.
	 
	 	 	 	 
	 

	 	Conversion Date:
	 	Each “Conversion Date”, as defined in the Indenture occurring during the Exercise Period for Convertible Debentures.
	 
	 	 	 	 
	 

	 	Exercise Period:
	 	The period from and excluding the Trade Date to and including the Expiration Date.
	 
	 	 	 	 
	 

	 	Expiration Date:
	 	The third Scheduled Trading Day immediately preceding the “Maturity Date”
as defined in the Indenture.
	 
	 	 	 	 
	 

	 	Scheduled Trading Day:
	 	As defined in the Indenture
	 
	 	 	 	 
	 
	 	Automatic Exercise on	 	 
	 

	 	Conversion Dates:
	 	On each Conversion Date, a number of Options equal to the number of
Convertible Debentures converted on such Conversion Date in denominations of USD1,000
principal amount shall be automatically exercised, subject to “Notice of Exercise”
below.
	 
	 	 	 	 
	 

	 	Notice of Exercise:
	 	Notwithstanding anything to the contrary in the Equity Definitions,
Bank shall have no obligation to make any payment or delivery in respect of any
exercise of Options hereunder unless Counterparty notifies Bank in writing prior to
5:00 PM, New York City time, on the Scheduled Trading Day prior to the first Exchange
Business Day of the “Observation Period”, as defined in the Indenture, relating to the
Convertible Debentures converted on the Conversion Date on which such Exercise Date
occurs (the “Notice Deadline”) of (i) the number of Options being exercised on such
Exercise Date, (ii) the scheduled settlement date under the Indenture for the
Convertible Debentures converted on the Conversion Date on which such Exercise Date
occurs and (iii) the first day of the relevant Observation Period. Notwithstanding
the foregoing, in respect of Options with an Exercise Date occurring during the period
from and including the 25th Scheduled Trading Day prior to the “Maturity Date” to and
including the Expiration Date (the “Final Conversion Period”), the Notice Deadline
shall be 12:00 PM, New York City time on the Scheduled Trading Day immediately
following the Expiration Date and the content of such notice shall be as set forth in
clauses (i) and (ii) above as they relate to all Exercise Dates occurring during the
Final Conversion Period. For the avoidance of doubt, if Counterparty fails to give
such notice when due in respect of any exercise of Options hereunder, Bank’s
obligation to make any payment or delivery in respect of such exercise shall be permanently
extinguished, and late notice shall not cure such failure. Notwithstanding the foregoing, a Notice
of Exercise in respect of any Exercise Date occurring prior to the Final Conversion Period
shall be effective

4

 

	 	 	 	 	 
	 

	 	 	 	(and shall be considered to have been given when due for purposes of the
first sentence of this paragraph) if given after the Notice Deadline but prior to 5:00 PM New York
City time, on the fifth Exchange Business Day of the relevant Observation Period, in which event
the Calculation Agent shall have the right to adjust the Delivery Obligation as appropriate to
reflect the additional costs (including, but not limited, to hedging mismatches and market losses)
and expenses incurred by Bank in connection with its hedging activities (including the unwinding
of any hedge position) as a result of Bank not having received such notice prior to the Notice
Deadline.
	 
	 	 	 	 

	 	 	 	 	 	 	 
	 

	 	Bank’s Telephone Number
and Telex and/or Facsimile Number
and Contact Details for purpose of
Giving Notice:
	 	To:
	 	Deutsche Bank AG London
	 
	 	 	 	 	 	C/o Deutsche Bank Securities Inc.
	 
	 	 	 	 	 	60 Wall Street 
	 
	 	 	 	 	 	New York, NY 10005
	 
	 	 	 	 	 	 
	 

	 	 	 	Attn:
	 	Documentation Department:
	 
	 	 	 	 	 	 
	 

	 	 	 	Telephone:

Facsimile:
	 	+ 44 20 7545 8193

+ 44 11 3336 2009

Settlement Terms:

	 	 	 	 	 
	 

	 	Settlement Date:
	 	The settlement date for the Shares to be delivered in respect of the
Convertible Debentures being converted on the Conversion Date under the terms of the
Indenture.
	 
	 	 	 	 
	 

	 	Delivery Obligation:
	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of the
Equity Definitions, and subject to “Notice of Exercise” above, in respect of an
Exercise Date, Bank will deliver to Counterparty, on the related Settlement Date, a
number of Shares equal to the product of the Applicable Percentage and the aggregate
number of Shares, if any (and cash in lieu of fractional Shares, if any, resulting
from rounding of such aggregate number of Shares based on the Daily VWAP (as defined
in the Indenture) on the last day of the relevant Observation Period) that
Counterparty is obligated to deliver to the holder(s) of the Convertible Debentures
being converted on such Conversion Date pursuant to Section 12.02 of the Indenture
(such Shares and cash collectively, the “Convertible Obligation”); provided that the
Delivery Obligation shall be determined excluding any Shares (and cash in lieu of fractional
Shares) that Counterparty is obligated to deliver to holder(s) of the Convertible Debentures as a
direct or indirect result of any adjustments to the Conversion Rate pursuant to Sections 12.01(e)
or 12.04(f) of the

5

 

	 	 	 	 	 
	 

	 	 	 	Indenture and any interest payment that the Counterparty is obligated to
deliver to holder(s) of the Convertible Debentures converted on such Conversion Date.
For the avoidance of doubt, (i) if the “Daily Conversion Value”, as defined in the Indenture,
for each of the VWAP Trading Days, as defined in the Indenture, occurring in the relevant
Observation Period, is less than or equal to USD50, Bank will have no delivery obligation
hereunder in respect of such Exercise Date and (ii) if in respect of any Conversion Date
Counterparty is obligated to deliver consideration other than Shares to the holder(s)
of the Convertible Debentures converted on such Conversion Date pursuant to Section 12.10(b) of
the Indenture, then, in lieu of Shares, the Convertible Obligation shall be payable in other
consideration.
	 
	 	 	 	 
	 

	 	Notice of Delivery Obligation:
	 	No later than the later of (a) the relevant Exercise Date
and (b) the Exchange Business Day immediately following the last day of the
Observation Period, Counterparty shall give Bank notice of the final number of Shares
and/or the amount of cash comprising the relevant Convertible Obligation; provided
that, with respect to any Exercise Date occurring during the Final Conversion Period,
Counterparty may provide Bank with a single notice of the aggregate number of Shares
and/or the amount of cash comprising the Convertible Obligations for all such Exercise
Dates (it being understood, for the avoidance of doubt, that the requirement of
Counterparty to deliver such notice shall not limit Counterparty’s obligations with
respect to Notice of Exercise, as set forth above, in any way).
	 
	 	 	 	 
	 

	 	Other Applicable Provisions:
	 	To the extent Bank is obligated to deliver Shares hereunder, the provisions of Sections 9.1(c), 9.8, 9.9, 9.10, 9.11 and 9.12 of the
Equity Definitions will be applicable as if “Physical Settlement” applied to the
Transaction; provided that the Representation and Agreement contained in Section 9.11
of the Equity Definitions shall be modified by excluding any representations therein
relating to restrictions, obligations, limitations or requirements under applicable
securities laws that exist as a result of the fact that Buyer is the issuer of the
Shares.
	 
	 	 	 	 
	 

	 	Restricted Certificated Shares:
	 	Notwithstanding anything to the contrary in the Equity
Definitions, Bank may, in whole or in part, deliver Shares in certificated form
representing the Number of Shares to be Delivered to Counterparty in lieu of delivery
through the Clearance System.
	 
	 	 	 	 
	Adjustments:	 	 
	 
	 	 	 	 
	 

	 	Method of Adjustment:
	 	Notwithstanding Section 11.2 of the Equity Definitions, upon the
occurrence of any event or condition set forth in Sections 12.04(a), (b), (c), (d)

6

 

	 	 	 	 	 
	 

	 	 	 	and (e) of the Indenture, the Calculation Agent shall make the corresponding adjustment in
respect of any one or more of the Number of Options, the Option Entitlement and any
other variable relevant to the exercise, settlement or payment of the Transaction, to
the extent an analogous adjustment is made under the Indenture. Immediately upon the
occurrence of any Adjustment Event, as defined in the Indenture, Counterparty shall
notify the Calculation Agent of such Adjustment Event; and once the adjustments to be
made to the terms of the Indenture and the Convertible Debentures in respect of such
Adjustment Event have been determined, Counterparty shall immediately notify the
Calculation Agent in writing of the details of such adjustments.
	Extraordinary Events:	 	 
	 
	 	 	 	 
	 

	 	Merger Events:
	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a “Merger Event”
has the definition set forth in Section 12.10 of the Indenture.
	 
	 	 	 	 
	 

	 	Consequences of Merger Events:
	 	Notwithstanding Sections 12.2 and 12.3 of the Equity
Definitions, upon the occurrence of a Merger Event, the Calculation Agent shall make
the corresponding adjustment in respect of any adjustment under the Indenture to any
one or more of the nature of the Shares, the Number of Options, the Option Entitlement
and any other variable relevant to the exercise, settlement or payment for the
Transaction, to the extent an analogous adjustment is made under the Indenture in
respect of such Merger Event; provided that such adjustment shall be made without
regard to any adjustment to the Conversion Rate for the issuance of additional shares
as set forth in Sections 12.01(e) and 12.04(f) of the Indenture; and provided further
that, notwithstanding the foregoing proviso, the Calculation Agent shall make
additional adjustments, as appropriate, to the Delivery Obligation (including in
connection with a Merger Event that may give rise to an adjustment to the Conversion
Rate pursuant to Section 12.01(e) of the Indenture) to preserve the fair value of the
Transaction (provided that no such additional adjustment, either alone or together
with any other adjustment hereunder to the terms of the Transaction, shall result in
any Delivery Obligation exceeding the related Convertible Obligation, determined
excluding any Shares (and cash in lieu of fractional Shares) that Counterparty is
obligated to deliver to holder(s) of the Convertible Debenture as a direct or indirect
result of any adjustments to the Conversion Rate pursuant to Section 12.04(f) of the
Indenture).
	 
	 	 	 	 
	 

	 	Notice of Merger Consideration:
	 	Upon the occurrence of a Merger Event that causes the
Shares to be converted into the right to receive more than a single type of
consideration (determined

7

 

	 	 	 	 	 
	 

	 	 	 	based in part upon any form of stockholder election),
Counterparty shall reasonably promptly (but in any event prior to the Merger Date)
notify the Calculation Agent of (x) the weighted average of the types and amounts of
consideration received by the holders of Shares who affirmatively make such an
election or (y) if no holder of Shares affirmatively makes such an election, the
weighted average of the types and amount of consideration actually received by holders
of Shares.
	 
	 	 	 	 
	 

	 	Nationalization, Insolvency

or Delisting:
	 	Cancellation and Payment (Calculation Agent Determination);
provided that in addition to the provisions of Section 12.6(a)(iii) of the Equity
Definitions, it will also constitute a Delisting if the Exchange is located in the
United States and the Shares are not immediately re-listed, re-traded or re-quoted on
any of the New York Stock Exchange, the American Stock Exchange, the NASDAQ Global
Select Market or the NASDAQ Global Market (or their respective successors); if the
Shares are immediately re-listed, re-traded or re-quoted on any such exchange or
quotation system, such exchange or quotation system shall thereafter be deemed to be
the Exchange.
	 
	 	 	 	 
	 

	 	Additional Disruption Events:	 	 
	 
	 	 	 	 
	 

	 	     (a) Change in Law:
	 	Applicable
	 
	 	 	 	 
	 

	 	     (b) Failure to Deliver:
	 	Applicable
	 
	 	 	 	 
	 

	 	     (c) Insolvency Filing:
	 	Applicable
	 
	 	 	 	 
	 

	 	     (d) Hedging Disruption:
	 	Applicable
	 
	 	 	 	 
	 

	 	     (e) Increased Cost of Hedging:
	 	 Not Applicable
	 
	 	 	 	 
	 

	 	Hedging Party:
	 	For all applicable Additional Disruption Events, Bank
	 
	 	 	 	 
	 

	 	Determining Party:
	 	For all applicable Additional Disruption Events, Bank
	 
	 	 	 	 
	 

	 	Non-Reliance:
	 	Applicable
	 
	 	 	 	 
	 

	 	Agreements and Acknowledgments
Regarding Hedging Activities:
	 	Applicable; provided, however, that Agreements and
Acknowledgments Regarding Hedging Activities shall be subject to the other respective
representations, warranties and agreements set forth herein.
	 
	 	 	 	 
	 

	 	Additional Acknowledgments:
	 	Applicable
	 
	 	 	 	 
	 

	 	3. Calculation Agent:
	 	Bank
	 
	 	 	 	 
	 

	 	4. Account Details:	 	 
	 
	 	 	 	 
	 

	 	  Bank Payment Instructions:	 	 

8

 

Bank of New York

ABA 021-000-018

Deutsche Bank Securities Inc.

A/C 8900327634

FFC: 145-91012-10

     Counterparty Payment Instructions:

          To be provided by Counterparty.

5. Offices:

     The Office of Bank for the Transaction is:

          Winchester house, 1 Great Winchester St, London EC2N 2DB

     Counterparty is not a multibranch party.

6. Notices: For purposes of this Confirmation:

(a) Address for notices or communications to Counterparty:

	 	 	 	 	 
	 	 	To:

	 	Illumina, Inc.
	 	 	Attn:

	 	Christian O. Henry
	 	 	 

	 	Senior Vice President, Chief Financial Officer
	 	 	Telephone:

	 	858-202-4508
	 	 	Facsimile:

	 	858-202-4599
	 	 	
With a copy to:
	 	 
	 	 	 
	 	 
	 	 	Attn:

	 	Glenn Pollner
	 	 	 

	 	Dewey Ballantine LLP
	 	 	Facsimile:

	 	212-259-6333

(b) Address for notices or communications to Bank:

	 	 	 	 	 
	 	 	To:

	 	Deutsche Bank AG London
	 	 	 

	 	C/o Deutsche Bank Securities Inc.
	 	 	 

	 	60 Wall Street
	 	 	 

	 	New York, NY 10005
	 	 	 
	 	 
	 	 	Attn:

	 	Documentation Department
	 	 	Telephone:

	 	+ 44 20 7545 8193
	 	 	Facsimile:

	 	+ 44 11 3336 2009

     7. Representations, Warranties and Agreements:

     (a) In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Counterparty represents and warrants to and for the benefit of, and agrees with,
Bank as follows:

          (i) On the Trade Date, (A) the Counterparty is not aware of any material nonpublic
information regarding Counterparty or the Shares and (B) all reports and other documents
filed by Counterparty with the Securities and Exchange Commission pursuant to the
Securities Exchange Act of 1934, as amended (the “Exchange Act”) when considered as a whole
(with the more recent
such reports and documents deemed to amend inconsistent statements contained in any
earlier such reports and documents), taken together with the press release issued by
Counterparty relating to the Convertible Debentures, do not contain any untrue statement of
a material fact or any omission of a material fact required to be stated therein or
necessary to make the statements therein, in the light of the circumstances in which they
were made, not misleading.

9

 

          (ii) (A) On the Trade Date, the Shares or securities that are convertible into, or
exchangeable or exercisable for Shares, are not, and shall not be, subject to a “restricted
period,” as such term is defined in Regulation M under the Exchange Act (“Regulation M”)
and (B) Counterparty shall not engage in any “distribution,” as such term is defined in
Regulation M, other than a distribution meeting the requirements of the exceptions set
forth in sections 101(b)(10) and 102(b)(7) of Regulation M, until the second Exchange
Business Day immediately following the Trade Date (it being understood that Counterparty
makes no representation pursuant to this clause in respect of any action or inaction taken
by Bank (or any other dealer entering into a similar transaction to the Transaction in
connection with the offering of the Convertible Debentures) or any Purchaser of the
Convertible Debentures, or any of their respective affiliates, in each case other than
actions or inactions taken or not taken at Counterparty’s instruction or request).

          (iii) On the Trade Date, neither Counterparty nor any “affiliate” or “affiliated
purchaser” (each as defined in Rule 10b-18 of the Exchange Act (“Rule 10b-18”)) shall
directly or indirectly (including, without limitation, by means of any cash-settled or
other derivative instrument) purchase, offer to purchase, place any bid or limit order that
would effect a purchase of, or commence any tender offer relating to, any Shares (or an
equivalent interest, including a unit of beneficial interest in a trust or limited
partnership or a depository share) or any security convertible into or exchangeable or
exercisable for Shares, except through Bank or as otherwise disclosed in the preliminary
offering memorandum relating to the Convertible Debentures (it being understood that
Counterparty makes no representation pursuant to this clause in respect of any action or
inaction taken by Bank (or any other dealer entering into a similar transaction to the
Transaction in connection with the offering of the Convertible Debentures) or any Purchaser
of the Convertible Debentures, or any of their respective affiliates, in each case other
than actions or inactions taken or not taken at Counterparty’s instruction or request).

          (iv) Without limiting the generality of Section 13.1 of the Equity Definitions,
Counterparty acknowledges that Bank is not making any representations or warranties with
respect to the treatment of the Transaction under FASB Statements 128, 133 ( as amended),
149 or 150, EITF Issue No. 00-19, 01-6 or 03-6 (or any successor issue statements) or under
FASB’s Liabilities & Equity Project.

          (v) Without limiting the generality of Section 3(a)(iii) of the Agreement, the
Transaction will not violate Rule 13e-1 or Rule 13e-4 under the Exchange Act (it being
understood that Counterparty makes no representation pursuant to this clause in respect of
any action or inaction taken by Bank (or any other dealer entering into a similar
transaction to the Transaction in connection with the offering of the Convertible
Debentures) or any Purchaser of the Convertible Debentures, or any of their respective
affiliates, in each case other than actions or inactions taken or not taken at
Counterparty’s instruction or request).

          (vi) Prior to the Trade Date, Counterparty shall deliver to Bank a resolution of
Counterparty’s board of directors authorizing the Transaction and such other certificate or
certificates as Bank shall reasonably request.

          (vii) Counterparty is not entering into this Confirmation to create actual or apparent
trading activity in the Shares (or any security convertible into or exchangeable for
Shares) or to raise or depress or otherwise manipulate the price of the Shares (or any
security convertible into or exchangeable for Shares) or otherwise in violation of the
Exchange Act.

          (viii) Counterparty is not, and after giving effect to the transactions contemplated
hereby will not be, required to register as, an “investment company” as such term is
defined in the Investment Company Act of 1940, as amended.

          (ix) On each of the Trade Date, and the Premium Payment Date and the Additional
Premium Payment Date, if any, Counterparty is not “insolvent” (as such term is defined
under Section 101(32) of the U.S. Bankruptcy Code (Title 11 of the United States Code) (the
“Bankruptcy Code”)) and Counterparty would be able to purchase the Shares hereunder in
compliance with the laws of the jurisdiction of Counterparty’s incorporation.

10

 

          (x) The representations and warranties of Counterparty set forth in Section 3 of the
Agreement and Section 1 of the Purchase Agreement are true and correct in all material
respects.

     (b) Each of Bank and Counterparty agrees and represents that it is an “eligible contract
participant” as defined in Section 1a(12) of the U.S. Commodity Exchange Act, as amended.

     (c) Each of Bank and Counterparty acknowledges that the offer and sale of the Transaction to
it is intended to be exempt from registration under the Securities Act of 1933, as amended (the
"Securities Act”), by virtue of Section 4(2) thereof. Accordingly, Counterparty represents and
warrants to Bank that (i) it has the financial ability to bear the economic risk of its investment
in the Transaction and is able to bear a total loss of its investment and its investments in and
liabilities in respect of the Transaction, which it understands are not readily marketable, are not
disproportionate to its net worth, and it is able to bear any loss in connection with the
Transaction, including the loss of its entire investment in the Transaction, (ii) it is an
“accredited investor” as that term is defined in Regulation D as promulgated under the Securities
Act, (iii) the assignment, transfer or other disposition of the Transaction has not been and will
not be registered under the Securities Act and is restricted under this Confirmation, the
Securities Act and state securities laws, and (iv) its financial condition is such that it has no
need for liquidity with respect to its investment in the Transaction and no need to dispose of any
portion thereof to satisfy any existing or contemplated undertaking or indebtedness and is capable
of assessing the merits of and understanding (on its own behalf or through independent professional
advice), and understands and accepts, the terms, conditions and risks of the Transaction.

     (d) Each of Bank and Counterparty agrees and acknowledges (A) that this Confirmation is (i) a
“securities contract,” as such term is defined in Section 741(7) of the Bankruptcy Code, with
respect to which each payment and delivery hereunder is a “settlement payment,” as such term is
defined in Section 741(8) of the Bankruptcy Code, and (ii) a “swap agreement,” as such term is
defined in Section 101(53B) of the Bankruptcy Code, with respect to which each payment and delivery
hereunder is a “transfer,” as such term is defined in Section 101(54) of the Bankruptcy Code, and
(B) that Bank is entitled to the protections afforded by, among other sections, Section 362(b)(6),
362(b)(17), 546(e), 546(g), 555 and 560 of the Bankruptcy Code.

     (e) Each party acknowledges and agrees to be bound by the Conduct Rules of the National
Association of Securities Dealers, Inc. applicable to transactions in options, and further agrees
not to violate the position and exercise limits set forth therein.

     (f) Counterparty shall deliver to Bank an opinion of counsel, dated as of the Trade Date and
reasonably acceptable to Bank in form and substance, with respect to certain matters to be agreed
upon.

     8. Other Provisions:

     (a) Right to Extend. Bank may postpone any Exercise Date or any other date of valuation or
delivery by Bank, with respect to some or all of the relevant Options (in which event the
Calculation Agent shall make appropriate adjustments to the Delivery Obligation), if Bank
determines, in its reasonable discretion based on the advice of counsel, that such extension is
reasonably required or necessary for legal, regulatory or self-regulatory organization compliance
by Bank in connection with its hedging, hedge unwind or settlement activity hereunder. In the event
this Section 8(a) affects any delivery owed by Bank hereunder, Bank shall make such delivery as
soon as reasonably practicable in accordance with this Section 8(a).

     (b) Additional Termination Events. The occurrence of (i) an event of default with respect to
Counterparty under the terms of the Convertible Debentures as set forth in Section 5.01 of the
Indenture that results in the Convertible Debentures becoming due and payable prior to their
maturity pursuant to the
terms of the Indenture, or (ii) an Amendment Event shall be an Additional Termination Event
with respect to which the Transaction is the sole Affected Transaction and Counterparty is the sole
Affected Party.

          “Amendment Event” means that Counterparty amends, modifies, supplements or receives a waiver
in respect of any term of the Indenture or the Convertible Debentures governing the principal
amount, coupon, maturity, repurchase obligation of Counterparty, redemption right of

11

 

Counterparty, any term relating to conversion of the Convertible Debentures (including changes to the conversion
price, conversion settlement dates or conversion conditions), or any term that would require
consent of the holders of not less than 100% of the principal amount of the Convertible Debentures
to amend, in each case without the prior consent of Bank.

     (c) Alternative Calculations and Payment on Early Termination and on Certain Extraordinary
Events. If, subject to Section 8(i) below, Bank shall owe Counterparty any amount pursuant to
Section 12.2 of the Equity Definitions and “Consequences of Merger Events” above, or Sections 12.3,
12.6, 12.7 or 12.9 of the Equity Definitions (except in the event of an Insolvency, a
Nationalization or a Merger Event, in each case, in which the consideration or proceeds to be paid
to holders of Shares consists solely of cash) or pursuant to Section 6(d)(ii) of the Agreement
(except in the event of an Event of Default in which Counterparty is the Defaulting Party or a
Termination Event in which Counterparty is the Affected Party, that resulted from an event or
events within Counterparty’s control) (a “Payment Obligation”), Counterparty shall have the right,
in its sole discretion, to require Bank to satisfy any such Payment Obligation by the Share
Termination Alternative (as defined below) by giving irrevocable telephonic notice to Bank,
confirmed in writing within one Scheduled Trading Day, between the hours of 9:00 A.M. and 4:00 P.M.
New York City time on the Merger Date, Announcement Date or Early Termination Date, as applicable
(“Notice of Share Termination”). Upon such Notice of Share Termination, the following provisions
shall apply on the Scheduled Trading Day immediately following the Merger Date, Announcement Date
or Early Termination Date, as applicable:

	 	 	 
	Share Termination Alternative:

	 	Applicable and means that Bank shall
deliver to Counterparty the Share
Termination Delivery Property on the date
on which the Payment Obligation would
otherwise be due pursuant to Section 12.7
or 12.9 of the Equity Definitions or
Section 6(d)(ii) of the Agreement, as
applicable (the “Share Termination
Payment Date”), in satisfaction of the
Payment Obligation.
	 
	 	 
	Share Termination Delivery 

Property:

	 	A number of Share Termination Delivery
Units, as calculated by the Calculation
Agent, equal to the Payment Obligation
divided by the Share Termination Unit
Price. The Calculation Agent shall
adjust the Share Termination Delivery
Property by replacing any fractional
portion of a security therein with an
amount of cash equal to the value of such
fractional security based on the values
used to calculate the Share Termination
Unit Price.
	 
	 	 
	Share Termination Unit Price:

	 	The value of property contained in one
Share Termination Delivery Unit on the
date such Share Termination Delivery
Units are to be delivered as Share
Termination Delivery Property, as
determined by the Calculation Agent in
its discretion by commercially reasonable
means and notified by the Calculation
Agent to Bank at the time of notification
of the Payment Obligation.
	 
	 	 
	Share Termination Delivery Unit:

	 	In the case of a Termination Event, Event
of Default or Delisting, one Share or, in
the case of an Insolvency,
Nationalization or Merger Event, a unit
consisting of the number or amount of
each type of property received by a
holder of one Share (without
consideration of any requirement to pay
cash or other consideration in lieu of
fractional amounts of any securities) in
such Insolvency, Nationalization or
Merger Event. If such Insolvency,
Nationalization or Merger Event involves
a choice of consideration to be received
by holders of Shares, such holder shall
be deemed to have elected to receive (x)
the weighted
average of the types and amounts of consideration received by the holders of
Shares who affirmatively make such an election or (y) if no holder of Shares
affirmatively makes such an election, the weighted average of the types and
amount of consideration actually received by holders of Shares.

12

 

	 	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Other applicable provisions:

	 	If Share Termination Alternative is
applicable, the provisions of Sections 9.8,
9.9, 9.10, 9.11 and 9.12 of the Equity
Definitions will be applicable as if
“Physical Settlement” applied to the
Transaction, except that all references to
“Shares” shall be read as references to
“Share Termination Delivery Units”; and
provided that the Representation and
Agreement contained in Section 9.11 of the
Equity Definitions shall be modified by
excluding any representations therein
relating to restrictions, obligations,
limitations or requirements under applicable
securities laws as a result of the fact that
Buyer is the issuer of any Share Termination
Delivery Units (or any part thereof).

The parties hereby agree that, notwithstanding anything to the contrary herein or in the Agreement,
in the event that following the payment of the Premium by Counterparty to Bank (i) an Early
Termination Date (whether as a result of an Event of Default or a Termination Event) occurs or is
designated with respect to the Transaction and, as a result, Counterparty owes to Bank an amount
calculated under Section 6(e) of the Agreement or (ii) an Extraordinary Event occurs that results
in the termination or cancellation of any Transaction pursuant to Article 12 of the Equity
Definitions and, as a result, Counterparty owes to Bank a Cancellation Amount or other amount in
respect of the Transaction, such amount shall be deemed to be zero.

     (d) Disposition of Hedge Shares. Bank intends to conduct its hedging activities in connection
with the Transaction in a manner that it believes on the Trade Date, based on its good faith
reasonable judgment, will not require Counterparty to register under the Securities Act or any
state securities laws any Shares acquired by Bank for the purpose of hedging its obligations
pursuant to the Transaction (any such Shares, “Hedge Shares”). Nevertheless, Counterparty hereby
agrees that if, in the good faith reasonable judgment of Bank based on the advice of counsel, any
Hedge Shares cannot be sold in the U.S. public market by Bank without registration under the
Securities Act, Counterparty shall, at its election: (i) in order to allow Bank to sell such Hedge
Shares in a registered offering, make available to Bank an effective registration statement under
the Securities Act to cover the resale of such Hedge Shares and (A) enter into an agreement, in
form and substance reasonably satisfactory to Bank, substantially in the form of an underwriting
agreement for a registered offering, (B) provide accountant’s “comfort” letters in customary form
for registered offerings of equity securities (provided that it shall not be considered a failure
to provide such a letter if Counterparty has used reasonable efforts to provide such a letter and
Counterparty’s accountants have refused to do so solely as a result of a failure by Bank to provide
information to such accountants that is reasonably requested by such accountants in accordance with
customary practice under SAS 72 or a successor SAS provision), (C) provide disclosure opinions of
nationally recognized outside counsel to Counterparty reasonably acceptable to Bank, (D) provide
other customary opinions, certificates and closing documents customary in form for registered
offerings of equity securities and (E) afford Bank a reasonable opportunity to conduct a “due
diligence” investigation with respect to Counterparty customary in scope for underwritten offerings
of equity securities; provided, however, that if Bank, in its sole reasonable discretion, is not
satisfied with access to due diligence materials, the results of its due diligence investigation,
or the procedures and documentation for the registered offering referred to above, then clause (ii)
or clause (iii) of this Section 8(d) shall apply at the election of Counterparty; (ii) in order to
allow Bank to sell the Hedge Shares in a private placement, enter into a private placement
agreement substantially similar to private placement purchase agreements customary for private
placements of equity securities, in form and substance reasonably satisfactory to Bank, including
customary representations, covenants, blue sky and other governmental filings and/or registrations,
indemnities to Bank, due diligence rights (for Bank or any designated buyer of the Hedge Shares
from Bank), opinions and certificates and such other documentation as is customary for private
placements agreements, all reasonably acceptable to Bank (in which case, the Calculation Agent
shall make
any adjustments to the terms of the Transaction that are necessary, in its reasonable judgment
to compensate Bank in a commercially reasonable manner for any discount from the public market
price of the Shares incurred on the sale of Hedge Shares in a private placement); or (iii) purchase
the Hedge Shares from Bank at the VWAP Price on such Exchange Business Days, and in the amounts,
requested by Bank. “VWAP Price” means, on any Exchange Business Day, the per Share volume-weighted
average price as

13

 

 displayed under the heading “Bloomberg VWAP” on Bloomberg page ILMN.Q
<equity> VAP (or any successor thereto) in respect of the period from 9:30 a.m. to 4:00 p.m.
(New York City time) on such Exchange Business Day (or if such volume-weighted average price is
unavailable, the market value of one Share on such Exchange Business Day, as determined by the
Calculation Agent using a volume-weighted method).

     (e) Repurchase Notices. Counterparty shall, on any day on which Counterparty effects any
repurchase of Shares, promptly give Bank a written notice of such repurchase (a “Repurchase
Notice”) on such day if, following such repurchase, the Notice Percentage as determined on such day
is (i) greater than 8% and (ii) greater by 0.5% than the Notice Percentage included in the
immediately preceding Repurchase Notice (or, in the case of the first such Repurchase Notice,
greater than the Notice Percentage as of the date hereof). The “Notice Percentage” as of any day
is the fraction, expressed as a percentage, the numerator of which is the Number of Shares and the
denominator of which is the number of Shares outstanding on such day. In the event that
Counterparty fails to provide Bank with a Repurchase Notice on the day and in the manner specified
in this Section 8(e) then Counterparty agrees to indemnify and hold harmless Bank, its affiliates
and their respective directors, officers, employees, agents and controlling persons (Bank and each
such person being an “Indemnified Party”) from and against any and all losses, claims, damages and
liabilities (or actions in respect thereof), joint or several, to which such Indemnified Party may
become subject under applicable securities laws, including without limitation, Section 16 of the
Exchange Act, relating to or arising out of such failure. If for any reason the foregoing
indemnification is unavailable to any Indemnified Party or insufficient to hold harmless any
Indemnified Party, then Counterparty shall contribute, to the maximum extent permitted by law, to
the amount paid or payable by the Indemnified Party as a result of such loss, claim, damage or
liability. In addition, Counterparty will reimburse any Indemnified Party for all expenses
(including reasonable counsel fees and expenses) as they are incurred (after notice to
Counterparty) in connection with the investigation of, preparation for or defense or settlement of
any pending or threatened claim or any action, suit or proceeding arising therefrom, whether or not
such Indemnified Party is a party thereto and whether or not such claim, action, suit or proceeding
is initiated or brought by or on behalf of Counterparty. This indemnity shall survive the
completion of the Transaction contemplated by this Confirmation and any assignment and delegation
of the Transaction made pursuant to this Confirmation or the Agreement shall inure to the benefit
of any permitted assignee of Bank.

     (f) Transfer and Assignment. Bank may transfer or assign its rights and obligations hereunder
and under the Agreement, in whole or in part, to any of its affiliates without the consent of
Counterparty, so long as the senior unsecured debt rating (“Credit Rating”) of such affiliate (or
any guarantor of its obligations under the Transaction) is equal to or greater than the Credit
Rating of Bank, as specified by Standard and Poor’s Rating Services or Moody’s Investors Service,
Inc. at the time of assignment or transfer. In connection with any assignment or transfer pursuant
to the immediately preceding sentence, the guarantee of any guarantor of the relevant transferee’s
obligations under the Transaction shall constitute a Credit Support Document under the Agreement.
In connection with any transfer or assignment by Bank of its rights and obligations hereunder and
under the Agreement, Bank shall promptly provide written notice to Counterparty of such transfer or
assignment, as the case may be, and the identity of the relevant transferee or assignee. If at any
time at which the Equity Percentage exceeds 9.0%, Bank, in its discretion, is unable to effect a
transfer or assignment to a third party after its commercially reasonable efforts on pricing terms
reasonably acceptable to Bank such that the Equity Percentage is reduced to 8.5% or less, Bank may
designate any Scheduled Trading Day as an Early Termination Date with respect to a portion (the
“Terminated Portion”) of the Transaction, such that the Equity Percentage following such partial
termination will be equal to or less than 8.5%. In the event that Bank so designates an Early
Termination Date with respect to a portion of the Transaction, a payment or delivery shall be made
pursuant to Section 6 of the Agreement and Section 8(c) of this Confirmation as if (i) an Early
Termination Date had been designated in respect of a Transaction having terms identical to the
Terminated Portion of the Transaction, (ii) Counterparty shall be the sole Affected Party with
respect to such partial termination and (iii) such portion of the Transaction shall be the only Terminated Transaction. The
“Equity Percentage” as of any day is the fraction, expressed as a percentage, (A) the numerator of
which will be the aggregate number of Shares that Bank and any of its affiliates subject to
aggregation with Bank under Section 13 of the Exchange Act and the rules promulgated thereunder
beneficially own (within the meaning of such Section 13 and rules) on such day and (B) the
denominator of which is the number of Shares

14

 

 outstanding on such day. Counterparty may transfer or
assign its rights and obligations hereunder and under the Agreement, in whole or in part, to any
party with the consent of Bank, such consent not to be unreasonably withheld.

     (g) Staggered Settlement. If the Staggered Settlement Equity Percentage as of any Exchange
Business Day during any Observation Period is greater than 4.5%, the Bank may, by notice to
Counterparty prior to the related Settlement Date (the “Nominal Settlement Date”), elect to deliver
the Shares on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on
the Nominal Settlement Date as follows:

     (i) in such notice, Bank will specify to Counterparty the related Staggered Settlement
Dates (each of which will be on or prior to such Nominal Settlement Date, but not prior to
the beginning of the related Observation Period) or delivery times and how it will allocate
the Shares it is required to deliver under “Delivery Obligation” (above) among the
Staggered Settlement Dates or delivery times; and

     (ii) the aggregate number of Shares that Bank will deliver to Counterparty hereunder
on all such Staggered Settlement Dates and delivery times will equal the number of Shares
that Bank would otherwise be required to deliver on such Nominal Settlement Date.

The “Staggered Settlement Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the sum of (x) the number of Shares that Bank or any of
its affiliates subject to aggregation with Bank under Section 13 of the Exchange Act and the rules
promulgated thereunder beneficially own (within the meaning of such Section 13 and rules) on such
day, other than any Shares so owned as a hedge of the Transaction, and (y) the Number of Shares and
(B) the denominator of which is the number of Shares outstanding on such day.

     (h) Disclosure. Effective from the date of commencement of discussions concerning the
Transaction, Counterparty and each of its employees, representatives, or other agents may disclose
to any and all persons, without limitation of any kind, the tax treatment and tax structure of the
Transaction and all materials of any kind (including opinions or other tax analyses) that are
provided to Counterparty relating to such tax treatment and tax structure.

     (i) Netting and Set-off. Notwithstanding any provision of the Agreement (including without
limitation Section 6(f) thereof) and this Confirmation (including without limitation this Section
8(i)) or any other agreement between the parties to the contrary, (A) Counterparty shall not net or
set off its obligations under the Transaction, if any, against its rights against Bank under any
other transaction or instrument and (B) Bank shall not net or set off any rights of Bank against
Counterparty arising under the Transaction, if any, against its obligations to Counterparty under
any other transaction or instrument.

     (j) Equity Rights. Bank acknowledges and agrees that this Confirmation is not intended to
convey to it rights with respect to the Transaction that are senior to the claims of common
stockholders in the event of Counterparty’s bankruptcy. For the avoidance of doubt, the parties
agree that the preceding sentence shall not apply at any time other than during Counterparty’s
bankruptcy to any claim arising as a result of a breach by Counterparty of any of its obligations
under this Confirmation or the Agreement.

     (k) Early Unwind. In the event the sale by Counterparty of the Convertible Debentures is not
consummated with the Purchasers pursuant to the Purchase Agreement for any reason by the close of
business in New York on February 16, 2007 (or such later date as agreed upon by the parties, which
in no event shall be later than February 23, 2007) (February 16, 2007 or such later date being the
“Early Unwind Date”), the Transaction shall automatically terminate (the “Early Unwind”), on the
Early Unwind Date and the Transaction and all of the respective rights and obligations of Bank and
Counterparty thereunder shall be cancelled and terminated. Following such termination, cancellation
and payment, each party shall be released and discharged by the other party from and agrees not to
make any claim against the other party with respect to any obligations or liabilities of either
party arising out of and to be performed in connection
with the Transaction either prior to or after the Early Unwind Date. Bank and Counterparty
represent and acknowledge to the other that upon an Early Unwind and following the payment referred
to above, all obligations with respect to the Transaction shall be deemed fully and finally
discharged.

15

 

     (l) Adjustment Upon Amendment or Exchange of Convertible Debentures. If the Convertible
Debentures are amended to change the settlement method thereunder (including, without limitation,
to change from net share settlement to physical settlement) or are exchanged for new convertible
debentures with a different settlement method but otherwise substantially identical to the
Convertible Debentures, the parties shall work together in good faith to adjust the terms of the
Transaction (including, without limitation, the settlement method under the Transaction) to
preserve the fair value of the Transaction and the economic intent of the parties in light of such
amendment or exchange.

     (m) Governing Law and Waiver of Jury Trial. THE AGREEMENT AND THIS CONFIRMATION SHALL BE
GOVERNED BY THE LAWS OF THE STATE OF NEW YORK. EACH PARTY HEREBY WAIVES TO THE FULLEST EXTENT
PERMITTED BY APPLICABLE LAW, ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN ANY LEGAL PROCEEDING
DIRECTLY OR INDIRECTLY ARISING OUT OF OR RELATING TO THE AGREEMENT, THIS CONFIRMATION OR THE
TRANSACTION (WHETHER BASED ON CONTRACT, TORT OR ANY OTHER THEORY). EACH PARTY HERETO (A) CERTIFIES
THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF ANY OTHER PARTY HAS REPRESENTED, EXPRESSLY OR
OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THE
FOREGOING WAIVER AND (B) ACKNOWLEDGES THAT IT AND THE OTHER PARTIES HERETO HAVE BEEN INDUCED TO
ENTER INTO THIS AGREEMENT BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS IN THIS
SECTION.

     (n) Submission to Jurisdiction. Each party hereby irrevocably and unconditionally submits for
itself and its property in any legal action or proceeding by the other party against it relating to
the Transaction to which it is a party, or for recognition and enforcement of any judgment in
respect thereof, to the exclusive jurisdiction of the Supreme Court of the State of New York,
sitting in New York County, the courts of the United States of America for the Southern District of
New York, and appellate courts from any thereof.

     (o) Method of Delivery. Whenever delivery of funds or other assets is required hereunder by or
to Counterparty, such delivery shall be effected through Deutsche Bank Securities, Inc. (“DBSI”).
In addition, all notices, demands and communications of any kind relating to the Transaction
between Bank and Counterparty shall be transmitted exclusively through DBSI.

     (p) Counterparts. This Confirmation may be executed in several counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument.

16

 

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly
sets forth the terms of the Transaction by signing in the space provided below and returning to
Deutsche a facsimile of the fully-executed Confirmation to + 44 11 3336 2009. Originals shall be
provided for your execution upon your request.

We are very pleased to have executed the Transaction with you and we look forward to completing
other transactions with you in the near future.

Very truly yours,

DEUTSCHE BANK AG LONDON

	 	 	 	 	 
	By:
	 	/s/ Andrea Leung
 	 	 
	 

	 	 

Name: Andrea Leung
	 	 
	 

	 	Title: Managing Director	 	 
	By:
	 	/s/ Lee Frankenfield	 	 
	 

	 	 

Name: Lee Frankenfield
	 	 
	 

	 	Title: Managing Director	 	 

DEUTSCHE BANK SECURITIES INC.,

acting solely as Agent in connection with this Transaction

	 	 	 	 	 
	By:
	 	/s/ Andrea Leung	 	 
	Name:

	 	Andrea Leung	 	 
	Title:
	 	Managing Director	 	 
	 
	 	 	 	 
	By:
	 	/s/ Lee Frankenfield	 	 
	Name:

		Lee Frankenfield
	 	 
	Title:
	 	Managing Director	 	 

Counterparty hereby agrees to, accepts and confirms the terms of the foregoing as of the Trade Date.

ILLUMINA, INC.

	 	 	 
	By:

	 	/s/ Christian O. Henry
	 

	 	Name: Christian O. Henry

	 

	 	Title: Senior Vice President & Chief Financial Officer

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