EXHIBIT 10.16



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Chief Operating Officer Bonus Terms for FY06 Under the

Section 162(m)
Executive Officer Performance-Based Bonus Plan



Plan Objective



Suns Chief Operating Officer Bonus Terms for FY06 under its
Section 162(m) Executive Officer Performance-Based Bonus Plan (the Plan) are designed to compensate the Chief Operating Officer (COO) for contributions to Sun during the fiscal year. The Plan provides for quarterly cash
compensation based on performance against the Plan measures.



Plan
Year/Performance Periods



The Plan year is Suns fiscal year
2006. The Performance Periods (as such term is defined in the Plan) are each of Suns four fiscal quarters during that fiscal year.



Eligibility



These terms apply to the person serving as Suns COO as of July 1, 2005. In order to receive a bonus payment with respect to any fiscal quarter, the participant must be serving as Suns COO as of the last
day of that fiscal quarter, except as provided below.



A participant who
retires, becomes disabled, or dies during any fiscal quarter may receive a prorated bonus for the period of time during the fiscal quarter that the participant provided services to Sun. A participant who leaves Sun prior to the end of a fiscal
quarter for any other reason, including but not limited to a reduction in force, voluntary resignation, or termination by Sun, will be ineligible for a bonus payment with respect to that fiscal quarter and any subsequent fiscal quarter during fiscal
year 2006.



Bonus Target



The participants bonus target under the Plan is 200% of the participants
Eligible Wages for fiscal year 2006, as determined below (the Bonus Target). The Bonus Target is divided between the four fiscal quarters of fiscal year 2006 as follows (each, a Quarterly Bonus Target):



|               |  |            |  |                       
|-------------- |  | ---------- |  | ----------------------
|Fiscal Quarter |  | Percentage |  | Quarterly Bonus Target
|FY06 Q1        |  | 10%        |  | 20%                   
|FY06 Q2        |  | 25%        |  | 50%                   
|FY06 Q3        |  | 25%        |  | 50%                   
|FY06 Q4        |  | 40%        |  | 80%                   



For example, for FY06 Q1, the
Quarterly Bonus Target would be 200% multiplied by 10%, or 20% of Eligible Wages for that quarter.



Payouts under the Plan are capped at the lesser of 300% of the Bonus Target or $7.5 million for fiscal year 2006.



Eligible Wages



Eligible Wages with respect to any fiscal quarter in fiscal year 2006 (Eligible Wages) shall be determined based upon the participants annual base salary on the last day of such fiscal quarter
(September 25, 2005 for FY06 Q1, December 25, 2005 for FY 06 Q2, March 26, 2006 for FY06 Q3, and June 30, 2006 for FY06 Q4).



For example, for FY06 Q2, assuming the participants annual base salary on December 25, 2005 was $900,000, the participants Eligible Wages would be $900,000.



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LOGO





Chief Operating Officer Bonus Terms for FY06 Under the

Section 162(m)
Executive Officer Performance-Based Bonus Plan



Eligible
Wages exclude relocation allowances, expense reimbursements, tuition reimbursement, car/transportation allowances, expatriate allowances, long-term disability payments, or other commissions and bonuses paid during each quarter of FY06.



Company Performance Measures



The Plan is based on performance against the following measures:



|1. | FY06 Q1- quarterly Operating Income;
|-- | ------------------------------------



|2. | FY06 Q2 - quarterly Operating Income;
|-- | -------------------------------------



|3. | FY06 Q3  quarterly Operating Income; and
|-- | -----------------------------------------



|4. | FY06 Q4- quarterly Operating Income, annual Free Cash Flow, and annual Revenue.
|-- | -------------------------------------------------------------------------------



For FY06 Q4, quarterly Operating Income, annual Free Cash Flow, and annual Revenue are relatively weighted as follows: 50%, 25% and 25%.



Operating Income: Operating Income is defined as GAAP
Operating Income adjusted to exclude the impact of the following:



| |  |  | Restructuring charges
| | - |  | ---------------------



| |  |  | In-process R & D charges
| | - |  | ------------------------



| |  |  | Intangible impairment charges
| | - |  | -----------------------------



| |  |  | Stock compensation expense
| | - |  | --------------------------



| |  |  | FY06 bonus accrual
| | - |  | ------------------



Free Cash Flow: Free Cash Flow is defined as GAAP Cash Flow from Operations, adjusted to exclude cash flow associated with:



| |  |  | Restructuring activity
| | - |  | ----------------------



| |  |  | Real estate transactions
| | - |  | ------------------------



Revenue: Revenue is defined as net revenue as reported in Suns consolidated operations analysis.



Bonus Plan Funding Percentage



Attached hereto is a schedule (the Schedule), which provides percentages based upon Suns actual performance against the Companys goal(s) with
respect to the Company Performance Measures for each quarter. The Bonus Plan Funding Percentage is determined for each fiscal quarter as follows:



1. With respect to the first three fiscal quarters: By referring to the Schedule, which provides a percentage based on Suns actual performance against its goal with
respect to quarterly Operating Income.



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LOGO





Chief Operating Officer Bonus Terms for FY06 Under the

Section 162(m)
Executive Officer Performance-Based Bonus Plan



2. With respect to the
fourth fiscal quarter: By referral to the Schedule, which provides percentages based on Suns actual performance against its goals with respect to quarterly Operating Income, annual Free Cash Flow and annual Revenue and then relatively
weighting these percentages as described above under the heading Company Performance Measures.



With respect to each fiscal quarter, this percentage is referred to as the Bonus Plan Funding Percentage.



Bonus Calculation



The participants quarterly bonus payment for each fiscal quarter of fiscal year 2006 will be calculated as follows:



Quarterly Bonus Target

x Bonus Plan Funding Percentage

x
Eligible Wages

= Actual Quarterly Bonus Payment*



| | 1. | Example: In FY06 Q2, if Sun achieves 100% of its Operating Income goal, the participants actual quarterly bonus payment will be calculated as follows:
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------



|                                            |  |   |  |   |         |  
|------------------------------------------- |  | - |  | - | ------- | -
|Quarterly Bonus Target                      |  |   |  |   | 50      | %
|Bonus Plan Funding Percentage               |  | X |  |   | 100     | %
|Eligible Wages                              |  | X |  | $ | 900,000 |  
|                                            |  |   |  |   |         |  
|Actual Quarterly Bonus Payment for FY06 Q2* |  |   |  | $ | 450,000 |  
|                                            |  |   |  |   |         |  



| | 2. | Example: In FY06 Q4, if Sun achieves 100% of its quarterly Operating Income goal, 70% of its annual Free Cash Flow goal, and 90% of its Revenue goal, the actual
participants quarterly bonus payment will be calculated as follows:
| | -- | -------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------



Step One  Determine Bonus Plan Funding Percentage:



|                                       |  |                          |  |                   
|-------------------------------------- |  | ------------------------ |  | ------------------
|Company Actual Performance for FY06 Q4 |  | Percentage from Schedule |  | Relative Weighting
|Quarterly Operating Income  100%      |  | 100%                     |  | 50%               
|Annual Free Cash Flow  70%            |  | 70%                      |  | 25%               
|Annual Revenue  90%                   |  | 90%                      |  | 25%               
|Bonus Plan Funding Percentage          |  |                          |  | 90%               



Step Two 
Determine actual quarterly bonus payment:



|                              |  |   |  |    |  
|----------------------------- |  | - |  | -- | -
|Quarterly Bonus Target        |  |   |  | 80 | %
|Bonus Plan Funding Percentage |  | X |  | 90 | %



Page 3 of 4



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LOGO





Chief Operating Officer Bonus Terms for FY06 Under the

Section 162(m)
Executive Officer Performance-Based Bonus Plan



|                                            |  |   |  |   |        
|------------------------------------------- |  | - |  | - | -------
|Eligible Wages                              |  | X |  | $ | 900,000
|                                            |  |   |  |   |        
|Actual Quarterly Bonus Payment for FY06 Q4* |  |   |  | $ | 648,000
|                                            |  |   |  |   |        

---

|* | Before applicable taxes and other withholdings, if any.
|- | -------------------------------------------------------



Bonus Payment



In the U.S., bonus awards are taxable income, and should be paid within 75 days after the close of each fiscal quarter. Bonuses are paid in accordance with local payroll schedules in countries outside the U.S and
subject to local and regional tax provisions.



Communication of Results



With respect to any particular fiscal quarter during fiscal year
2006, results will be communicated as soon as possible after Suns quarterly financial results are publicly announced.



General



This Plan is in all respects subject to the terms, definitions and provisions of Suns Section 162(m) Executive Officer Performance-Based Bonus Plan, which is incorporated herein by reference.



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