Document:

1990 Employee Stock Purchase Plan

 Exhibit 10.1 
  
 SUN MICROSYSTEMS, INC. 
 1990 EMPLOYEE STOCK PURCHASE PLAN 
 (Amended and Restated on June 22, 2005, to be effective as
of May 1, 2006) 
  
 1. Purpose. The purpose of the
Plan is to provide Employees of the Company and its Designated Subsidiaries with an opportunity to purchase Common Stock through accumulated payroll deductions or other approved contributions. The Plan consists of two programs, which are referred to
as the U.S. Program and the Global Program. The U.S. Program is intended to qualify as an employee stock purchase plan under Code Section 423(b) and the Global Program is not intended to so qualify. 
  
 2. Definitions. 
  
 (a) “Board” shall mean the Board of Directors of the
Company. 
  
 (b) “Code” shall mean the Internal
Revenue Code of 1986, as amended. 
  
 (c)
“Committee” shall mean a Committee designated by the Board to administer the Plan. If at any time no Committee shall be in office, then the Board shall exercise the functions of the Committee specified in the Plan and any references
herein to the Committee shall be construed as references to the Board. 
  
 (d) “Common Stock” shall mean the Company’s common stock, $0.00067 par value (as adjusted from time to time). 
  
 (e) “Company” shall mean Sun Microsystems, Inc., a Delaware corporation. 
  
 (f) “Compensation” shall mean regular straight time gross earnings, variable compensation for field sales
personnel, broad-based Company bonus programs, payments for overtime, shift premiums and lead pay, but shall exclude other compensation. 
  
 (g) “Corporate Affiliate” shall mean (i) for purposes of the U.S. Program any parent or subsidiary corporation of the Company (as
determined in accordance with Code Section 424), whether now existing or subsequently established, (ii) for purposes of the Global Program any affiliate controlling the Company or controlled by the Company directly or indirectly through
one or more intermediaries. 
  
 (h) “Designated
Subsidiary” shall mean any Corporate Affiliate as may be authorized from time to time by the Board to extend the benefits of the Plan to their Employees. 
  
 (i) “Employee” shall mean, subject to Section 11(c), any employee (including officers and directors
who are also employees) of the Company or a Designated Subsidiary. 

 (j) “Enrollment Date” shall mean the first Trading Day of each Offering Period.

  
 (k) “Exercise Date” shall mean the last
Trading Day of each Exercise Period. 
  
 (l) “Exercise
Period” shall mean a period commencing on an Enrollment Date and which is of such duration as the Committee shall determine. 
  
 (m) “Fair Market Value” per share of Common Stock on any relevant date shall be determined in accordance with the following provisions:

  
 (i) If the Common Stock is at the time traded on the Nasdaq
National Market, then the Fair Market Value shall be the U.S. Dollar closing selling price per share of Common Stock on the date in question, as such price is reported by the National Association of Securities Dealers on the Nasdaq National
Market and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the Fair Market Value shall be the U.S. Dollar closing selling price on the last preceding date for
which such quotation exists. 
  
 (ii) If the Common Stock is at
the time listed on any Stock Exchange, then the Fair Market Value shall be the U.S. Dollar closing selling price per share of Common Stock on the date in question on the Stock Exchange determined by the Committee to be the primary market for
the Common Stock, as such price is officially quoted in the composite tape of transactions on such exchange and published in The Wall Street Journal. If there is no closing selling price for the Common Stock on the date in question, then the
Fair Market Value shall be the U.S. Dollar closing selling price on the last preceding date for which such quotation exists. 
  
 (n) “Global Program” shall mean the component of the Plan intended to provide Employees of the Company and its Designated Subsidiaries
who are not subject to United States income tax the opportunity to purchase Common Stock through accumulated payroll deductions or other approved contributions. This component of the Plan is not intended to qualify for special tax treatment under
Code Section 423. 
  
 (o) “Offering Period”
shall mean the period beginning with the date an option is granted under the Plan and ending with the date determined by the Committee. During the term of the Plan, the duration of each Offering Period shall be determined from time to time by the
Committee, provided that no Offering Period may exceed 27 months in duration. If determined by the Committee, an Offering Period may include one or more Exercise Periods. 
  
 (p) “Plan” shall mean this 1990 Employee Stock Purchase Plan and shall apply to both the U.S. Program and
the Global Program. 
  
 (q) “Purchase Price”
shall mean an amount equal to 85% of the Fair Market Value of a share of Common Stock on the Exercise Date; provided however, that the Purchase Price may be adjusted by the Committee pursuant to Section 20. 

 (r) “Reserves” shall mean the number of shares of Common Stock covered by each option
under the Plan which has not yet been exercised and the number of shares of Common Stock which have been authorized for issuance under the Plan but not yet placed under option. 
  
 (s) “Stock Exchange” shall mean any national securities exchange registered under Section 6 of the
Securities Exchange Act of 1934, as amended, including, but not limited to the American Stock Exchange and the New York Stock Exchange. 
  
 (t) “Subsidiary” shall mean a corporation, domestic or foreign, of which not less than 50% of the voting stock is held by the Company or
by a Subsidiary, whether or not such corporation now exists or is hereafter organized or acquired by the Company or by a Subsidiary. 
  
 (u) “Trading Day” shall mean a day on which the Common Stock is open for trading on a Stock Exchange or the Nasdaq National Market, as
the case may be. 
  
 (v) “U.S. Program” shall
mean the component of the Plan intended to provide Employees of the Company and its Designated Subsidiaries who are subject to United States income tax with the opportunity to purchase Common Stock through accumulated payroll deductions or other
approved contributions. This component of the Plan is intended to qualify for special tax treatment under Code Section 423(b). 
  
 3. Stock Subject to the Plan. 
  
 (a) Subject to the provisions of Section 13 of the Plan, the total number of shares of Common Stock reserved and available for issuance pursuant to
the Plan shall not exceed 616,400,000 shares. The shares purchasable under the Plan may be either authorized but unissued or reacquired Common Stock, including shares of Common Stock purchased on the open market. 
  
 (b) A Plan participant will have no voting, dividend, or other stockholder
rights with respect to any shares of Common Stock covered by his or her option until such option has been exercised and such shares have been purchased and delivered to the participant as provided in Section 10. 
  
 (c) Shares of Common Stock to be delivered to a participant under the Plan
will be registered in the name of the participant. 
  
 4.
Eligibility. Any Employee of the Company or a Designated Subsidiary is eligible to participate in an Offering Period (as hereinafter defined) under the Plan except the following: 
  
 (a) Employees who are not employed by the Company or a Designated Subsidiary on the fifteenth (15th) day of the month
preceding the beginning of such Offering Period; 

 (b) Employees who would, by virtue of their participation in such Offering Period, be participating
simultaneously in more than one Offering Period under the Plan; 
  
 (c) Unless otherwise prohibited by the laws of the local jurisdiction, Employees who are customarily employed for less than twenty (20) hours per week or who are customarily employed for less than five (5) months in a calendar
year; and 
  
 (d) Notwithstanding any provision of the Plan to the
contrary, no Employee shall be granted an option under the Plan (i) to the extent that, immediately after such grant, such Employee (or any other person whose stock would be attributed to such Employee pursuant to Code Section 424(d))
would own capital stock of the Company or any Corporate Affiliate and/or hold outstanding options to purchase such stock possessing five percent (5%) or more of the total combined voting power or value of all classes of capital stock of the
Company or any Corporate Affiliate, or (ii) to the extent that his or her rights to purchase stock under all employee stock purchase plans (as defined in Code Section 423) of the Company or any Corporate Affiliate accrues at a rate which
exceeds $25,000 worth of Common Stock (determined on the basis of the Fair Market Value of the stock at the time such option is granted) for each calendar year in which such option is outstanding at any time. 
  
 5. Offering Periods. The Plan shall be implemented by consecutive
Offering Periods, each consisting of such number of Exercise Periods as the Committee shall determine, and shall continue until terminated in accordance with Section 21 hereof. The first Offering Period shall commence on a date to be determined
by the Committee. The Committee shall have the power to change the duration of Offering Periods and Exercise Periods with respect to future offerings without stockholder approval if such change is announced at least 15 days prior to the scheduled
beginning of the first Offering Period and Exercise Period to be affected. 
  
 6. Participation. 
  
 (a)
An Employee who is eligible under Section 4 of the Plan may become a participant in any Offering Period under the Plan only by completing a subscription agreement authorizing payroll deductions or other approved contributions in form and
substance satisfactory to the Committee and filing it with the Company during the open enrollment period prior to the applicable Enrollment Date, unless a later time for filing the subscription agreement is set by the Committee for all eligible
Employees with respect to a given Offering Period. 
  
 (b) Payroll
deductions or other approved contributions for a participant shall commence on the first payday following the Enrollment Date and shall continue until terminated by the participant as provided in Section 11. 

 7. Payroll Deductions. 
  
 (a) Except as otherwise prohibited by the laws of the local jurisdiction, at the time a participant files his or her
subscription agreement, he or she shall elect to have payroll deductions made (under this Plan and all employee stock purchase plans of the Company) on each payday during the Offering Period in an amount not exceeding a total of ten percent
(10%) (or such other percentage as the Committee may determine) of the Compensation which he or she receives on each payday during the Offering Period, and the aggregate of such payroll deductions (under this Plan and all employee stock
purchase plans of the Company) during the Offering Period shall not exceed a total of ten percent (10%) (or such other percentage as the Committee may determine) of the participant’s Compensation during said Offering Period. 
  
 (b) In jurisdictions where payroll deductions are not permitted under local
law, the eligible Employees may participate in the Plan by making contributions in the form that is acceptable and approved by the Board or Committee. Other approved contributions are subject to the same restrictions as set forth in this
Section 7. 
  
 (c) Only payroll deductions or other approved
contributions made for a participant shall be credited to his or her account under the Plan and will be withheld in whole percentages of Compensation only. 
  
 (d) A participant may discontinue his or her participation in the Plan as provided in Section 11. A participant’s subscription agreement shall
remain in effect for successive Offering Periods unless terminated as provided in Section 11. To increase or decrease the rate of payroll deductions or other approved contributions (within the limitations of Section 7(a)), (i) with
respect to the next Offering Period, a participant must complete and file with the Company during the open enrollment period prior to the Enrollment Date for such Offering Period, or (ii) with respect to the next Exercise Period within the same
Offering Period, a participant must complete and file with the Company prior to the commencement of the new Exercise Period within such Offering Period, a new subscription agreement authorizing a change in the payroll deduction or other approved
contributions rate. Except in the case of authorized leaves of absence (which shall be governed by Section 11(c) below), such change in rate shall be effective at the beginning of the next Offering Period or Exercise Period, as the case may be,
following the Company’s receipt of the new subscription agreement. 
  
 (e) Notwithstanding the foregoing, to the extent necessary to comply with Code Section 423(b)(8) and Section 4(d) herein, a participant’s payroll deductions or other approved contributions may be decreased to zero percent
(0%) by the Company at such time during any Exercise Period. Payroll deductions shall recommence at the rate provided in such participant’s subscription agreement at the beginning of the first Exercise Period which is scheduled to end in the
following calendar year, unless terminated by the participant as provided in Section 11. 
  
 (f) The Company will assess its requirements regarding tax, social insurance and payroll tax withholding (collectively the “Tax-Related Items”) in connection with the participant’s participation in the
Plan, including the grant of purchase rights, the exercise of such 

 
purchase rights, or the subsequent sale of shares of Common Stock acquired under the Plan. Prior to each of the aforementioned events, each participant must
make adequate arrangements satisfactory to the Company and/or the Designated Subsidiary employing the participant to satisfy all withholding obligations of the Company and/or the Designated Subsidiary employing the participant. At such time, the
Company and/or Designated Subsidiary may withhold all applicable Tax-Related Items (including any withholding required to make available to the Company or any Designated Subsidiary any tax deductions or benefit attributable to the sale or early
disposition by the participant of Common Stock under the Plan) and the Company and/or Designated Subsidiary may sell or arrange for the sale of Common Stock purchased by the participant to meet the minimum withholding obligations for Tax-Related
Items. The Company and/or the Designated Subsidiary employing the participant will return to the participant any estimated withholding which is collected but not required in satisfaction of the Tax-Related Items. To the extent that a participant is
unable to satisfy the payment of Tax-Related Items by the foregoing methods, the participant shall pay to the Company or the Designated Subsidiary employing the participant any amount of the Tax-Related Items that such entity may be required to
withhold as a result of participant’s participation in the Plan. 
  
 8. Grant of Option. 
  
 (a) On the Enrollment
Date of each Offering Period, each eligible participant in such Offering Period shall be granted an option to purchase on each Exercise Date during such Offering Period (at the applicable Purchase Price) up to the number of shares of Common Stock
determined by dividing such participant’s payroll deductions or other approved contributions accumulated prior to or on such Exercise Date and retained in the participant’s account as of the Exercise Date by the applicable Purchase Price.
Such purchase shall be subject to the limitations set forth in Sections 4(d), 7(e) and 13 hereof. 
  
 (b) No participant shall be permitted to purchase more than twenty-five thousand (25,000) shares of Common Stock on any one Exercise Date, subject to
any adjustments pursuant to Section 20. In addition, the maximum number of shares of Common Stock that may be purchased in total by all participants on any one Exercise Date shall not exceed forty-five million (45,000,000) shares, subject
to any adjustments pursuant to Section 20. The Committee may, for subsequent Offering Periods, increase or decrease, in its absolute discretion, the maximum number of shares of Common Stock that may be purchased per participant or in total by
all participants on each Exercise Date of such Offering Period. 
  
 (c) Exercise of the option shall occur as provided in Section 9, unless the participant has withdrawn pursuant to Section 11, and such option shall expire on the last day of the Offering Period. 
  
 9. Exercise of Option. Unless a participant withdraws from the Plan as
provided in Section 11 below, his or her option for the purchase of shares of Common Stock will be exercised automatically on the Exercise Date, and the maximum number of full shares subject to option shall be purchased for such participant at
the applicable Purchase Price with the accumulated 

 
payroll deductions or other approved contributions in his or her account, subject to the other limitations in the Plan. No fractional shares will be
purchased. Any payroll deductions or other approved contributions left over in a participant’s account after the Exercise Date shall be returned to the participant. During a participant’s lifetime, a participant’s option to purchase
Common Stock hereunder is exercisable only by him or her. 
  
 10.
Delivery. As promptly as practicable after each Exercise Date on which a purchase of Common Stock occurs, the Company shall arrange the delivery to each participant, as appropriate, the shares purchased upon exercise of his or her option in a
form determined by the Committee in its sole discretion. 
  
 11.
Withdrawal; Termination of Employment. 
  
 (a) A
participant may withdraw all (but not less than all) the payroll deductions credited to his or her account and not yet used to exercise his or her option under the Plan at any time prior to the close of an Exercise Period by (i) providing a
written notice of withdrawal in the form prescribed by the Committee for such purpose, or (ii) following an electronic or other withdrawal procedure prescribed by the Committee, provided such procedure is legally recognized by the laws of the
local jurisdiction. Such notice shall state whether the participant is withdrawing only from the applicable Exercise Period or entirely from the Offering Period. All of the participant’s payroll deductions or other approved contributions
credited to his or her account will be paid to such participant as promptly as practicable after receipt of notice of withdrawal and such participant’s option for the current Offering Period or Exercise Period (as specified in the notice) will
be automatically terminated, and no further payroll deductions or other approved contributions for the purchase of shares of Common Stock will be made during the Offering Period or Exercise Period, as applicable. If a participant withdraws from an
Offering Period, payroll deductions will not resume at the beginning of the succeeding Offering Period unless the participant delivers to the Company a new subscription agreement during the open enrollment period preceding the commencement of a
subsequent Offering Period in accordance with Section 6. If a participant withdraws from an Exercise Period, payroll deductions or other approved contributions will not resume at the beginning of any succeeding Exercise Period within the same
Offering Period unless written notice is delivered to the Company in form and substance satisfactory to the Committee within the open enrollment period preceding the commencement of the Exercise Period directing the Company to resume payroll
deductions. 
  
 (b) Upon a participant’s ceasing to be an
Employee for any reason, the payroll deductions or other approved contributions credited to such participant’s account during the Offering Period but not yet used to exercise the option will be returned to such participant or, in the case of
his or her death, to the person or persons entitled thereto under Section 16, and such participant’s option will be automatically terminated. 

 (c) Subject to the laws of the local jurisdiction, in the event an Employee’s customary employment
with the Company or a Designated Subsidiary is reduced below twenty (20) hours per week or five (5) months per calendar year during an Offering Period, he or she will be deemed to have elected to withdraw from the Plan and the payroll
deductions or other approved contributions credited to his or her account will be returned to such participant and such participant’s option terminated; provided that (i) if an Employee shall take an unpaid leave of absence approved by the
Company of more than thirty (30) days during an Offering Period in which the Employee is a participant, and the Employee’s right to re-employment is not guaranteed by statute or contract, he or she will be deemed to have withdrawn from the
applicable Exercise Period on the thirty-first (31st) day of such leave, (ii) if an Employee shall take a paid leave of absence approved by the Company of more than ninety (90) days during an Offering Period in which the Employee is a
participant, and the Employee’s right to re-employment is not guaranteed by statute or contract, he or she will be deemed to have withdrawn from the applicable Exercise Period on the earlier of (aa) the ninety-first (91st) day if the
Employee is paid for the entire ninety (90) day leave, or (bb) the last day upon which the Employee is paid provided he or she is paid for at least thirty (30) days; and (iii) if an Employee shall take a paid or unpaid leave of
absence of any duration during an Offering Period, and the Employee’s right to re-employment is guaranteed by statute or contract, he or she shall not be deemed to have withdrawn from the applicable Exercise Period and his or her option for the
purchase of shares of Common Stock will be exercised in accordance with Section 9 hereof. On the date, if any, upon which the Employee shall be deemed to have withdrawn from the applicable Exercise Period, the payroll deductions or other
approved contributions credited to his or her account will be returned to him or her, but he or she shall continue to be a participant in the applicable Offering Period during such authorized leave of absence until and unless such authorized leave
of absence terminates without his or her returning to his or her employment with the Company. 
  
 (d) A participant’s withdrawal from an Exercise Period (but not from the Offering Period) will not have any effect upon his or her ability to participate in subsequent Exercise Periods during the same Offering
Period. However, a participant’s withdrawal from an Offering Period makes him or her ineligible for future participation in that Offering Period. Withdrawal from an Exercise Period or from an Offering Period will not have any effect upon a
participant’s eligibility to participate in a succeeding Offering Period of the Plan or in any similar plan which may hereafter be adopted by the Company, provided that a participant may elect to participate in a succeeding Offering Period only
during the open enrollment period for such Offering Period and may not participate concurrently in more than one Offering Period. 
  
 (e) Notwithstanding the foregoing, unless otherwise determined by the Committee, if the Fair Market Value on the Enrollment Date of an Offering Period in
which a participant is enrolled (the “Current Offering Period”) is greater than the Fair Market Value on the Enrollment Date of a succeeding Offering Period (the “Succeeding Offering Period”), the participant’s enrollment in
the Current Offering Period automatically will be terminated immediately following the exercise of his or her option under the Current Offering Period on the Exercise Date that occurs immediately prior to the Enrollment Date of the Succeeding
Offering Period, 

 
and the participant automatically will be enrolled in the Succeeding Offering Period, unless the participant elects to remain in the former Offering Period
by delivery to the Company of a written notice in form and substance satisfactory to the Committee. 
  
 12. Interest. Unless otherwise required by the laws of the local jurisdiction, no interest shall accrue on the payroll deductions of a participant
in the Plan. 
  
 13. Stock. 
  
 (a) The maximum number of shares of Common Stock which shall be made
available for sale under the Plan, as set forth in Section 3 hereof, is subject to adjustment upon changes in capitalization of the Company as provided in Section 20. 
  
 (b) If the Committee determines that the total number of shares of Common Stock to be purchased pursuant to outstanding
purchase rights on any particular date exceed the number of shares then available for issuance under the Plan (an “over-subscription”), the Committee shall make a pro rata allocation of the available shares on a uniform and
nondiscriminatory basis and the payroll deductions of each participant, to the extent in excess of the aggregate purchase price payable for the Common Stock pro-rated to such individual, shall be refunded. 
  
 14. Administration. The Plan shall be administered by the Board or the
Committee appointed by the Board. The Committee shall consist of not less than two (2) persons (who are members of the Board), each of whom is an independent director. As used in this Plan, references to the “Committee” shall mean
either the Committee appointed by the Board to administer this Plan or the Board if no Committee has been established. Subject to the provisions of the Plan and the limitations of Code Section 423 or any successor provision in the Code, if
applicable, all questions of interpretation or application of the Plan shall be determined by the Committee and its decisions shall be final and binding upon all participants. Members of the Committee shall receive no compensation for their services
in connection with the administration of the Plan, other than standard fees as established from time to time by the Board for services rendered by Board members serving on Board committees. All expenses incurred in connection with the administration
of the Plan shall be paid by the Company. 
  
 15. Rules for
Foreign Jurisdictions. 
  
 (a) The Board or Committee may
adopt rules or procedures relating to the operation and administration of the Plan to accommodate the specific requirements of the law and procedures of foreign jurisdictions. Without limiting the generality of the foregoing, the Board or Committee
is specifically authorized to adopt rules and procedures regarding handling of payroll deductions or other approved contributions, payment of interest, conversion of local currency, payroll tax, withholding procedures and handling of stock
certificates that vary with local requirements. 

 (b) The Board or Committee may also adopt rules, procedures or sub-plans applicable to particular
Designated Subsidiaries or jurisdiction as part of the Global Program. The rules of such sub-plans under the Global Program may take precedence over other provisions of this Plan, with the exception of Section 3, but unless otherwise superseded
by the terms of such sub-plan, the provisions of the Plan shall govern the operation of such sub-plan. 
  
 16. Designation of Beneficiary. 
  
 (a) A participant may file a written designation of a beneficiary who is to receive any stock and cash, if any, from the participant’s account under
the Plan in the event of such participant’s death subsequent to an Exercise Date on which the option is exercised but prior to delivery to such participant of such stock and cash. In addition, a participant may file a written designation of a
beneficiary who is to receive any cash from the participant’s account under the Plan in the event of such participant’s death prior to exercise of the option. If a participant is married and the designated beneficiary is not the spouse,
spousal consent shall be required for such designation to be effective. 
  
 (b) Such designation of beneficiary may be changed by the participant at any time by written notice. In the event of the death of a participant and in the absence of a beneficiary validly designated under the Plan who is living at the time
of such participant’s death, the Company shall deliver such stock and/or cash to the executor or administrator of the estate of the participant, or if no such executor or administrator has been appointed (to the knowledge of the Company), the
Company, in its discretion, may deliver such stock and/or cash to the spouse or to any one or more dependents or relatives of the participant, or if no spouse, dependent or relative is known to the Company, then to such other person as the Company
may designate. 
  
 (c) All beneficiary designations herein shall
be made in such form and manner as the Committee may prescribe from time to time. 
  
 17. Transferability. Neither payroll deductions nor other approved contributions credited to a participant’s account nor any rights with regard to the exercise of an option or to receive shares of Common
Stock under the Plan may be assigned, transferred, pledged or otherwise disposed of in any way (other than by will, the laws of descent and distribution or as provided in Section 16 hereof) by the participant. Any such attempt at assignment,
transfer, pledge or other disposition shall be without effect, except that the Company may treat such act as an election to withdraw from an Offering Period in accordance with Section 11. 
  
 18. Use of Funds. Except as prohibited by the laws of a local
jurisdiction, all payroll deductions or other approved contributions received or held by the Company under the Plan may be used by the Company for any corporate purpose, and the Company shall not be obligated to segregate funds from such payroll
deductions or other approved contributions. 
  
 19.
Reports. Individual accounts will be maintained for each participant in the Plan. Statements of account will be given to participating Employees at least annually, which statements will set forth the amounts of payroll deductions, the
Purchase Price, the number of shares of Common Stock purchased and the remaining cash balance, if any. 

 20. Adjustments Upon Changes in Capitalization, Dissolution, Liquidation, Merger or Asset Sale.

  
 (a) Changes in Capitalization. Subject to any required
action by the stockholders of the Company, the Reserves, the price per share of Common Stock covered by each outstanding option under the Plan which has not yet been exercised, and the numerical limits of Sections 3 and 8 shall be proportionately
adjusted for any increase or decrease in the number of issued shares of Common Stock resulting from a stock split, reverse stock split, stock dividend, combination or reclassification of the Common Stock, or any other increase or decrease in the
number of shares of Common Stock effected without receipt of consideration by the Company; provided, however, that conversion of any convertible securities of the Company shall not be deemed to have been “effected without receipt of
consideration.” Such adjustment shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. Except as expressly provided herein, no issuance by the Company of stock of any class, or securities
convertible into stock of any class, shall affect, and no adjustment by reason thereof shall be made with respect to, the number or price of shares of Common Stock subject to an option. 
  
 (b) Dissolution or Liquidation. In the event of the proposed dissolution or liquidation of the Company, the Offering
Period then in progress shall be shortened by setting a new Exercise Date (the “New Exercise Date”), and shall terminate immediately prior to the consummation of such proposed action, unless otherwise provided by the Committee. The New
Exercise Date shall be before the date of the Company’s proposed dissolution or liquidation. The Committee shall make its best efforts to notify each participant in writing, at least ten (10) business days prior to the New Exercise Date,
that the Exercise Date for the participant’s option has been changed to the New Exercise Date and that the participant’s option shall be exercised automatically on the New Exercise Date, unless prior to such date the participant has
withdrawn from the Offering Period as provided in Section 11. 
  
 (c) Merger or Asset Sale. In the event of a proposed sale of all or substantially all of the assets of the Company, or the merger of the Company with or into another corporation, each option under the Plan shall be assumed or an
equivalent option shall be substituted by such successor corporation or a parent or subsidiary of such successor corporation, unless the Committee determines, in the exercise of its sole discretion and in lieu of such assumption or substitution, to
shorten the Offering Period (and, if applicable, the Exercise Period) then in progress by setting a new Exercise Date (the “New Exercise Date”) and any Offering Periods then in progress shall end on the New Exercise Date. The New Exercise
Date shall be before the date of the Company’s proposed sale or merger. If the Committee shortens the Offering Period (and the Exercise Period, if applicable) then in progress in lieu of assumption or substitution in the event of a merger or
sale of assets, the Committee shall make its best efforts to notify each participant in writing, at least ten (10) days prior to the New Exercise Date, that the Exercise 

 
Date for his or her option has been changed to the New Exercise Date and that his or her option will be exercised automatically on the New Exercise Date,
unless prior to such date he or she has withdrawn from the Offering Period or the Exercise Period as provided in Section 11. For purposes of this paragraph, an option granted under the Plan shall be deemed to be assumed if, following the sale
of assets or merger, the option confers the right to purchase, for each share of Common Stock subject to the option immediately prior to the sale of assets or merger, the consideration (whether stock, cash or other securities or property) received
in the sale of assets or merger by holders of Common Stock for each share of Common Stock held on the effective date of the transaction (and if such holders were offered a choice of consideration, the type of consideration chosen by the holders of a
majority of the outstanding shares of Common Stock); provided, however, that if such consideration received in the sale of assets or merger was not solely common stock of the successor corporation or its parent (as defined in Code
Section 424(e)), the Committee may, with the consent of the successor corporation and the participant, provide for the consideration to be received upon exercise of the option to be solely common stock of the successor corporation or its parent
equal in fair market value to the per share consideration received by holders of Common Stock in the sale of assets or merger. 
  
 21. Amendment or Termination. 
  
 (a) The Board may at any time and for any reason amend or terminate the Plan to become effective following the close of any Exercise Period. However, the
Plan may be amended or terminated immediately upon Board action, if and to the extent necessary to assure that the Company will not recognize, for financial reporting purposes, any compensation expense in connection with the shares of Common Stock
offered for purchase under the Plan, should the financial accounting rules applicable to the Plan be subsequently revised so as to require the Company to recognize a compensation expense in the absence of such amendment or termination. Except as
provided in Section 20 or herein, no such termination can affect options previously granted, provided that an Offering Period may be terminated by the Committee on any Exercise Date if the Committee determines that the termination of the Plan
is in the best interests of the Company and its stockholders. Except as provided in Section 20, no amendment may make any change in any option theretofore granted which adversely affects the rights of any participant. To the extent necessary
and desirable to comply with Code Section 423 (or any successor rule or provision or any other applicable law or regulation), the Company shall obtain stockholder approval in such a manner and to such a degree as is required thereby.

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

 (c) In no event may the Board effect any of the following amendments or revisions to the Plan without the
approval of the Company’s stockholders: (i) increase the number of shares of Common Stock issuable under the Plan, except for permissible adjustments in the event of certain changes in the Company’s capitalization pursuant to Sections
20(a) or 20(c), (ii) alter the purchase price formula so as to reduce the purchase price payable for the shares of Common Stock available for purchase under the Plan, (iii) modify the eligibility requirements for participation in the Plan,
or (iv) extend the duration of the Plan. 
  
 22.
Notices. All notices or other communications by a participant to the Company under or in connection with the Plan shall be deemed to have been duly given when received in the form specified by the Company at the location, or by the person,
designated by the Company for the receipt thereof. 
  
 23.
Conditions Upon Issuance of Shares. Shares of Common Stock shall not be issued with respect to an option unless the exercise of such option and the issuance and delivery of such stock pursuant thereto shall comply with all applicable
provisions of law of the United States or other country or jurisdiction, including, without limitation, the Securities Act of 1933, as amended, the Securities Exchange Act of 1934, as amended, the rules and regulations promulgated thereunder, and
the requirements of any stock exchange or quotation system upon which the stock may then be listed or quoted, and shall be further subject to the approval of counsel for the Company with respect to such compliance. 
  
 As a condition to the exercise of an option, the Company may require the
person exercising such option to represent and warrant at the time of any such exercise that the stock is being purchased only for investment and without any present intention to sell or distribute such stock if, in the opinion of counsel for the
Company, such a representation is required by any of the aforementioned applicable provisions of law. 
  
 24. Applicable Law. Except as otherwise expressly required under the laws of the local jurisdiction, the Plan and all rights hereunder shall be
governed by and construed in accordance with the laws of the state of California, United States of America without resort to that state’s conflict-of-laws rules. Should any provision of this Plan be determined by a court of competent
jurisdiction to be unlawful or unenforceable for a country, such determination shall in no way affect the application of that provision in any other country, or any of the remaining provisions of the Plan. 
  
 25. Designation of Subsidiaries. The Board or Committee may extend or
terminate the benefits of the Plan to any Designated Subsidiary at any time without the approval of the stockholders of the Company. 

 26. Equal Rights and Privileges. All eligible Employees participating in the U.S. Program shall
have equal rights and privileges under the Plan to the extent necessary to comply with Code Section 423(b)(5) and any related regulations. 
  
 27. Term of Plan. The Plan was adopted by the Board on October 16, 1990 and was subsequently approved by the Company’s stockholders at
the 1990 Annual Meeting of Stockholders held on December 13, 1990. Unless sooner terminated by the Board, the Plan shall terminate on December 12, 2010. No further purchase rights shall be granted or exercised, and no further payroll
deductions shall be collected under the Plan following such termination.2005 U.S. Non-Qualified Deferred Compensation Plan

 Exhibit 10.2 
  
 SUN MICROSYSTEMS, INC. 
  
 2005 U.S. NON-QUALIFIED DEFERRED COMPENSATION PLAN 
  
 Effective January 1, 2005 
  
 Sun Microsystems, Inc. (the “Company”), acting on behalf of itself and its U.S. subsidiaries, hereby adopts the Sun Microsystems, Inc. 2005 U.S.
Non-Qualified Deferred Compensation Plan (the “Plan”) effective January 1, 2005. 
  
 RECITALS 
  

	1.	The Company maintains the Plan, a deferred compensation plan for the benefit of a select group of management or highly compensated employees of the Company as well as members of the
Company’s Board of Directors. 

  

	2.	The Plan is the successor plan to the Sun Microsystems, Inc. U.S. Non-Qualified Deferred Compensation Plan (the “Prior Plan”). Effective December 31, 2004, the U.S.
Non-Qualified Deferred Compensation Plan shall be frozen and no new contributions shall be made to it; provided, however, that any deferrals made under the Prior Plan before January 1, 2005 shall continue to be governed by the terms and
conditions of the Prior Plan as in effect on December 31, 2004. 

  

	3.	Any deferrals made under the Prior Plan after December 31, 2004 shall be deemed to have been made under the Plan and all such deferrals shall be governed by the terms and
conditions of the Plan as it may be amended from time to time. 

  

	4.	Under the Plan, the Company is obligated to pay vested accrued benefits to Plan Participants and their Beneficiary or Beneficiaries from the Company’s general assets.

  

	5.	The Company has entered into an agreement (the “Trust Agreement”) with Wells Fargo Bank, N.A. pursuant to which Wells Fargo Bank, N.A., serves as the trustee (the
“Trustee”) under an irrevocable trust, to be used in connection with the Plan (the “Trust”). 

  

	6.	The Company intends to make contributions to the Trust so that such contributions will be held by the Trust and invested, reinvested and distributed, all in accordance with this
Plan and the Trust Agreement. 

  

	7.	The Company intends that amounts contributed to the Trust and the earnings thereon shall be used by the Trustee to satisfy the liabilities of the Company under the Plan with respect
to each Plan Participant for whom an Account (as defined below) has been established and such utilization shall be in accordance with the procedures set forth herein. 

	8.	The Company intends that the Trust be a “grantor trust” with the principal and income of the Trust treated as assets and income of the Company for federal and state income
tax purposes. 

  

	9.	The Company intends that the assets of the Trust shall at all times be subject to the claims of the general creditors of the Company as provided in the Trust Agreement.

  

	10.	The Company intends that the existence of the Trust shall not alter the characterization of the Plan as “unfunded” for purposes of the Employee Retirement Income Security
Act of 1974, as amended (“ERISA”), and shall not be construed to provide income to Plan Participants under the Plan prior to actual payment of the vested accrued benefits hereunder. 

  

	11.	The Company intends that the Plan comply with the requirements of Section 409A of the Code. 

  
 NOW THEREFORE, the Company does hereby adopt this Plan as follows and does also hereby agree that the Plan shall be
structured, held and disposed of as follows: 
  

	 	1.	Purpose. The Plan provides Participants an opportunity to defer payment of a portion of Employee salary and incentive bonus/commissions (for Sales Vice Presidents and
Directors); Employee annual and quarterly bonus awards; and Board of Directors’ Director Fees. 

  

	 	2.	Definitions. 

  

	 	(a)	Account means a bookkeeping account established pursuant to Section 5(a) of the Plan for Compensation that is subject to a Participant’s Deferred Compensation
Election. 

  

	 	(b)	Administrator means the Compensation Committee or such other person, company or entity as may be designated from time to time by the Compensation Committee except as
otherwise provided herein. 

  

	 	(c)	Beneficiary means the person or persons designated by the Participant or by the Plan under Section 11(b) of the Plan to receive payment of the Participant’s Account
in the event of the Participant’s death. 

  

	 	(d)	Board means the Board of Directors of the Company, as constituted from time to time. 

  

	 	(e)	Change of Control. A “Change of Control” shall be deemed, consistent with Section 409A of the Code and the proposed regulations promulgated thereunder, to
occur on the date that: 

  

	 	(i)	Any one person, or more than one person acting as a group (as defined in Proposed Regulation Section 1.409A-3(g)(5)(v)(B)), acquires ownership of stock of the Company, that
together with 

  

 2 

 stock held by such person or group, constitutes more than fifty percent (50%) of the total fair
market value or total voting power of the stock of the Company. However, if any one person, or more than one person acting as a group, is considered to own more than fifty percent (50%) of the total fair market value or total voting power of
the stock of the Company, the acquisition of additional stock by the same person or persons is not considered a Change of Control. This Section 2(e)(i) applies only when there is a transfer of stock of the Company (or the issuance of stock of
the Company) and stock in the Company remains outstanding after the transaction; or 
  

	 	(ii)	Any one person, or more than one person acting as a group (as defined in Proposed Regulation Section 1.409A-3(g)(5)(v)(B)), acquires (or has acquired during the twelve-month
period ending on the date of the most recent acquisition by such person or persons) assets from the Company that have a total “Gross Fair Market Value” (as defined in Proposed Regulation Section 1.409A-3(g)(5)(vii)(A)) equal to or
more than forty percent (40%) of the total Gross Fair Market Value of all of the assets of the Company immediately prior to such acquisition or acquisitions; or 

  

	 	(iii)	Any one person, or more than one person acting as a group (as defined in Proposed Regulation Section 1.409A-3(g)(5)(v)(B)), acquires (or has acquired during the twelve-month
period ending on the date of the most recent acquisition by such person or persons) ownership of stock of the Company possessing thirty-five percent (35%) or more of the total voting power of the stock of the Company; or

  

	 	(iv)	A majority of the members of the Board is replaced during any twelve-month period by directors whose appointment or election is not endorsed by a majority of the members of the
Board prior to the date of the appointment or election; provided, however, that no Change of Control shall be deemed to have occurred if any other corporation is a majority shareholder of the Company. 

  

	 	(f)	Code means the Internal Revenue Code of 1986, as amended. 

  

	 	(g)	Compensation Committee means the Leadership Development and Compensation Committee of the Board, appointed by the Board from time to time. 

  

	 	(h)	Company means Sun Microsystems, Inc. and its U.S. subsidiaries, and any successor organization thereto. 

  

	 	(i)	Compensation means: 

  

	 	(i)	The amount paid by the Company to an Eligible Employee as base salary; and 

  

 3 

	 	(ii)	The amount paid by the Company to an Eligible Employee as an annual or quarterly corporate bonus award and any other bonus/incentive award that is approved by the Administrator as
earnings that can be deferred under the Plan (some incentive/bonus awards will not be eligible for deferral); and 

  

	 	(iii)	For Sales Vice Presidents and Directors, incentive bonus/commissions; and 

  

	 	(iv)	In the case of an Eligible Board Member, the amount of his or her Director Fees from the Company. 

  
 For purposes of the foregoing, Compensation as described in clauses (i), (ii) and (iii) shall be eligible for
deferral only to the extent such amounts are otherwise subject to U.S. payroll reporting and withholding. 
  

	 	(j)	Deferred Compensation Election means an election by an Eligible Employee or Eligible Board Member to participate in the Plan in accordance with Section 4 of the Plan.

  

	 	(k)	Determination Date means each December 31. 

  

	 	(l)	Director Fees means any compensation payable with respect to an Eligible Board Member’s service as a member of the Board, including, but not limited to, meeting fees and
annual retainer fees. Director Fees do not include directors’ expense reimbursements, stock options, or other stock-based compensation. 

  

	 	(m)	Election Period means November/December of each Plan Year. 

  

	 	(n)	Eligible Board Member means a member of the Board (other than a member who is also an Eligible Employee) who meets the requirements set forth in Section 3 of the Plan.

  

	 	(o)	Eligible Employee means an officer of the Company or other common-law employee of the Company whose position is approved as a director level or higher and who otherwise meets
the requirements set forth in Section 3 of the Plan. 

  

	 	(p)	ERISA means the Employee Retirement Income Security Act of 1974, as amended. 

  

	 	(q)	Investment Committee means the Administrative Committee of the Sun Microsystems, Inc. Tax Deferred Retirement Savings Plan. 

  

	 	(r)	Key Employee means an Eligible Employee who, on a Determination Date, is 

  

	 	(i)	An officer of the Company having annual compensation greater than the compensation limit in Section 416(i)(1)(A)(i) of the Code, provided that no more than fifty officers of
the Company shall be determined to be Key Employees as of any Determination Date; 

  

 4 

	 	(ii)	A five percent owner of the Company; or 

  

	 	(iii)	A one percent owner of the Company having annual compensation from the Company of more than $150,000. 

  
 If an Eligible Employee is determined to be a Key Employee on a Determination Date, then such Eligible Employee shall be
considered a Key Employee for purposes of the Plan during the period beginning on the first April 1 following the Determination Date and ending on the next March 31. 
  

	 	(s)	Participant means an Eligible Board Member or an Eligible Employee who has elected to defer Compensation. 

  

	 	(t)	Plan means this Sun Microsystems, Inc. 2005 U.S. Non-Qualified Deferred Compensation Plan, as amended from time to time. 

  

	 	(u)	Plan Year means the calendar year. 

  

	 	(v)	Prior Plan means the Sun Microsystems, Inc. U.S. Non-Qualified Deferred Compensation Plan, as amended from time to time. 

  

	 	(w)	Retirement Date means the last day of the month coinciding with or following the Participant’s separation from Service following the earlier of his or her

  

	 	(i)	55th birthday, if the Participant’s full years of Service with the Company and its non-U.S. subsidiaries added to Participant’s age (in full years) equals or exceeds 65;
or 

  

	 	(ii)	20th year anniversary of Service (including Service with businesses acquired by the Company and designated by the Administrator for this purpose). 

  

	 	(x)	Service means: 

  

	 	(i)	Employment as a common-law employee of the Company or one of its non-U.S. subsidiaries; or 

  

	 	(ii)	Period served as an elected Board Member. 

  
 A Participant’s Service shall be determined by the Administrator in its sole discretion. A Participant’s Service shall not be deemed to have
separated from Service merely because the capacity in which the Participant renders Service to the Company or any of its non-U.S. subsidiaries changes from Eligible Employee to Eligible Board Member or vice-versa. Notwithstanding the foregoing, a
separation from Service will not be deemed to have occurred if 
  

 5 

 an Eligible Employee continues to provide services to the Company or any of its non-U.S. subsidiaries in a capacity other
than as an employee and if the former Eligible Employee is providing services at an annual rate that is fifty percent or more of the services rendered, on average, during the immediately preceding three full calendar years of employment with the
Company or any of its non-U.S. subsidiaries (or if employed by the Company or any of its non-U.S. subsidiaries less than three years, such lesser period) and the annual remuneration for such services is fifty percent or more of the annual
remuneration earned during the final three full calendar years of employment (of if less, such lesser period); provided, however, that a separation from Service will be deemed to have occurred if an Eligible Employee’s service with the Company
or any of its non-U.S. subsidiaries is reduced to an annual rate that is less than twenty percent of the services rendered, on average, during the immediately preceding three full calendar years of employment with the Company or any of its non-U.S.
subsidiaries (or if employed by the Company or any of its non-U.S. subsidiaries less than three years, such lesser period) or the annual remuneration for such services is less than twenty percent of the annual remuneration earned during the three
full calendar years of employment with the Company or any of its non-U.S. subsidiaries (or if less, such lesser period). 
  
 In addition to the foregoing, a separation from Service will not be deemed to have occurred while an Eligible Employee is on military leave, sick leave,
or other bona fide leave of absence if the period of such leave does not exceed six months, or if longer, so long as the Eligible Employee’s right to reemployment with the Company or any of its non-U.S. subsidiaries is provided either by
statute or contract. If the period of leave exceeds six months and the Eligible Employee’s right to reemployment is not provided either by statute or contract, then the employee is deemed to have separated from Service on the first day
immediately following such six-month period. 
  

	 	(y)	Unforeseeable Emergency means a severe financial hardship to the Participant or Beneficiary resulting from: 

  

	 	(i)	An illness or accident of the Participant or Beneficiary, the Participant’s or Beneficiary’s spouse, or the Participant’s or Beneficiary’s dependent (as defined
in Section 152(a) of the Code); or 

  

	 	(ii)	Loss of the Participant’s or Beneficiary’s property due to casualty (including the need to rebuild a home following damage to a home not otherwise covered by insurance);
or 

  

	 	(iii)	Other similar extraordinary and unforeseeable circumstances arising as a result of events beyond the control of the Participant or Beneficiary. 

  
 Hardship shall not constitute an Unforeseeable Emergency under the Plan to
the extent that it is, or may be, relieved by: 
  

	 	(i)	Reimbursement or compensation, by insurance or otherwise; 

  

	 	(iv)	Liquidation of the Participant’s or Beneficiary’s assets to the extent that the liquidation of such assets would not itself cause severe financial hardship. Such assets
shall include but not be limited to stock options, Company stock, and 401(k) plan balances; or 

  

 6 

	 	(v)	Cessation of deferrals under the Plan. 

  
 An Unforeseeable Emergency under the Plan does not include (among other events): 
  

	 	(ii)	Sending a child to college; or 

  

	 	(vi)	Purchasing a home. 

  

	 	3.	Eligibility. Participation in the Plan is limited to Eligible Board Members, and Eligible Employees who are members of a select group of management or highly compensated
employees. Such Eligible Board Member or Eligible Employee is eligible to participate in the Plan if he or she is paid through the Company’s U.S. payroll and not covered under a non-U.S. retirement plan. 

  

	 	4.	Election to Participate in Plan. 

  

	 	(a)	Deferral Election. An Eligible Employee or an Eligible Board Member may elect to participate in the Plan by submitting a Deferred Compensation Election in such form as the
Company may specify during any Election Period. Subject to the provisions of Sections 4(b) below, a Deferral Election must be made and become irrevocable not later than last day of the Plan Year preceding the Plan Year in which the Compensation
being deferred is earned. A Deferred Compensation Election made in the 2006 Plan Year or thereafter will remain in force until it is amended or revoked. Any such amendment or revocation will take affect on the first day of the Plan Year following
the Plan Year in which the Participant elects to amend or revoke the outstanding Deferred Compensation Election. In addition to the foregoing, a Participant’s Deferred Compensation Election shall be suspended if such Participant applies for and
is otherwise eligible to receive a distribution on account of an Unforeseeable Emergency. Such suspension shall continue through the end of Plan Year in which the Participant applies for a distribution due to an Unforeseeable Emergency and the
Participant must submit a new Deferred Compensation Election during an Election Period to resume participation in the Plan. 

  

	 	(b)	Deferral Election for Newly Eligible Employees and Newly Eligible Board Members. In the Administrator’s discretion, a newly Eligible Employee or a newly Eligible Board
Member may elect to participate in the Plan by submitting a Deferred Compensation Election in such form as the Company may specify; provided that such Deferred Compensation Election is made and becomes irrevocable not later than thirty days
following the date such newly Eligible Employee or Board Member first becomes eligible to participate in the Plan and provided further that such 

  

 7 

 Deferred Compensation Election applies only to Compensation earned after the date of the election. In
compliance with this Section 4(b), only a prorated portion of a Participant’s bonus may be deferred if the Participant’s initial Deferred Compensation Election is made after the performance period applicable to the bonus has begun.
Effective January 1, 2006 only a newly Eligible Employee whose position is approved as a vice president level or higher shall be permitted in the Administrator’s discretion to make a Deferred Compensation Election pursuant to this
Section 4(b). 
  

	 	(c)	Special Elections in 2005 regarding Deferrals. In accordance with IRS Notice 2005-1, A-20, (i) on or before March 11, 2005, Eligible Employees were permitted to
terminate Deferred Compensation Elections made with respect to salary and incentive award/commission Compensation earned during the period January 1, 2005 through March 20, 2006 and Deferred Compensation Elections made with respect to
fiscal year 2005 bonus Compensation that was otherwise payable in 2005 and (ii) on or before November 25, 2005 certain Eligible Employees were permitted to terminate Deferred Compensation Elections made with respect to 2005 bonus
Compensation, notwithstanding the fact that such Deferred Compensation Elections otherwise would have been irrevocable under Section 4(a) above. Elections made pursuant to this Section 4(c) are irrevocable and subject to any special
administrative rules imposed by the Administrator consistent with Section 409A of the Code and Notice 2005-1, A-20. No special election under this Section 4(c) shall be permitted after December 31, 2005. 

  

	 	(d)	Initial Deferral Election. Any Deferred Compensation Election under this Section 4 that is an initial Deferred Compensation Election also will include an election as to
the time and form of payment of the deferred Compensation. 

  

	 	(e)	Election Form. All Deferred Compensation Elections under this Section 4 shall be made in a manner prescribed for these purposes by the Administrator.

  

	 	5.	Accounts. 

  

	 	(a)	Establishment of Account. The Company shall establish an Account for the terms of the Deferred Compensation Election. 

  

	 	(b)	Credits to Account. A Participant’s Account shall be credited with an amount equal to the percentage of each Compensation payment which would have been payable currently
to the Participant but for the terms of the Deferred Compensation Election. Deferred Compensation for Participants shall be credited to the Participant’s Account as of the first day of the month in which such deferred amounts would otherwise be
paid to the Participant. 

  

 8 

	 	(c)	Vesting. Participants shall at all times be 100% vested in their deferrals under the Plan and all earnings or losses allocable thereto. 

  

	 	6.	Deferral Increments. 

  

	 	(a)	Minimum Deferral. The minimum deferral per Plan Year will be determined by the Administrator. 

  

	 	(b)	Maximum Deferral – Eligible Employees. The Participant who is an Eligible Employee may elect to defer (less any withholding requirements): 

  

	 	(i)	Up to 75% of any eligible annual or quarterly bonus award; and 

  

	 	(ii)	Up to 60% of base salary and incentive awards/commissions. 

  

	 	(c)	Maximum Deferral – Eligible Board Members. A Participant who is an Eligible Board Member may elect to defer (less any withholding requirements), up to 100% of his or her
Director Fees (to be credited to the account quarterly). 

  

	 	7.	Earnings or Losses on Accounts. 

  

	 	(a)	General Rule. Except as otherwise provided in the Plan, the amount in a Participant’s Account shall be adjusted for gain or loss based on the performance of the
investment options selected by the Participant (or Beneficiary following a Participant’s death) in accordance with Section 7(b) below. Gain or loss shall be computed daily. All distributions from the Account will be valued as of the end of
the last day of the month preceding the payment date. 

  

	 	(b)	Designation of Investment Indices by the Investment Committee. The Investment Committee shall specify two or more investment funds that shall serve as benchmarks for the
investment performance of amounts credited to the Accounts. Accounts shall be adjusted to reflect the gain or loss, net of any allocable costs or expenses, such accounts would experience had they actually been invested in the specified funds at the
relevant times. The Investment Committee may vary the available investment funds from time to time, but not more frequently than quarterly. A Participant (or Beneficiary following a Participant’s death) may select his or her investment options
for new deferrals or for amounts already credited to his or her Account, once per month effective as of the first day of the following month and in such manner as the Investment Committee may specify. 

  

	 	8.	Certain In-Service Account Distributions. 

  

	 	(a)	In-Service Account Distribution Elections. Each Participant may elect at the time of his or her initial Deferred Compensation Election or in accordance with Section 8(c)
below, to have one or more distributions of a 

  

 9 

 specified percentage or dollar amount of his or her Account commencing in his or her third year of Plan
participation, provided that the Participant has not separated from Service with the Company or any of its non-U.S. subsidiaries prior to the elected in-service distribution date. A Participant may delay once or cancel such in-service account
distribution election at any time, provided that such election must be made at least one year prior to the first day of the Plan Year in which the original distribution date was scheduled, and provided further that the newly elected distribution
date is at least five years after the originally scheduled distribution date. A Participant may not receive an in-service account distribution more frequently than once in a Plan Year whether such distribution is on account of an initial in-service
account distribution election or a modified in-service account distribution election. Any in-service account distribution shall be paid with the last payroll of the month following the distribution date elected by the Participant. 
  

	 	(b)	Previously Scheduled In-Service Account Distributions. In-service account distribution elections in effect under the Prior Plan and not otherwise modified pursuant to
Section 8(c) below shall remain in full force and effect with respect to the Plan. Notwithstanding the foregoing, in-service account distributions elections in effect under the Prior Plan pursuant to which distributions were scheduled to occur
in 2005 shall not apply to Compensation deferred in 2005 (and earnings thereon); provided, however, that if a Participant elected a distribution of one hundred percent of his Account in 2005 pursuant to an in-service account distribution election in
effect under the Prior Plan, then such election shall apply to Compensation deferred in 2005 (and earnings thereon). In-service account distribution elections in effect under the Prior Plan that apply, pursuant to this Section 8(b), to
Compensation deferred under the Plan and to Compensation deferred under the Prior Plan and pursuant to which distributions shall be made in 2006 and later, shall be applied pro rata to Compensation deferred under the Plan and the Prior Plan based on
the relative values of the Plan and Prior Plan accounts. 

  

	 	(c)	Special In-Service Account Distribution Election. Notwithstanding any other provision of the Plan to the contrary, a Participant may elect an in-service account distribution
or change the time of an in-service account distribution as elected in accordance with Section 8(a) or 8(b) above, provided that the election is made at least twelve months prior to the originally scheduled distribution date and the election is
made not later than December 31, 2006. An elections made pursuant to this Section 8(c) shall be treated as an initial in-service account distribution election and shall be subject to any special administrative rules imposed by the
Administrator including rules intended to comply with Section 409A of the Code and Notice 2005-1, A-19. No election under this Section 4(c) shall (i) result in an in-service distribution before the Participant’s third year of
Plan participation, (ii) result in a Participant receiving an in-service distribution more frequently than once in a Plan Year, (iii) change the 

  

 10 

 payment date of any distribution otherwise scheduled to be paid in 2006 or cause a payment to be paid in
2006, or (iv) be permitted after December 31, 2006. 
  

	 	9.	Statements. Quarterly, and/or at intervals determined by the Administrator, the Company shall prepare and deliver to each Participant a statement listing the amount credited
to such Account as of the applicable date. 

  

	 	10.	Form and Time of Payment of Accounts. 

  

	 	(a)	Distribution of Account upon Retirement. In the event of a Participant’s separation from Service on or after his or her Retirement Date, distribution of the
Participant’s Account shall begin with the last payroll of the month following the month in which the Participant separates from Service, and shall be made consistent with the form of distribution specified on the Participant’s Deferred
Compensation Election. After the first installment, future installments shall be paid with the second payroll of each Plan Year. Available forms shall include either a lump sum payment or a series of approximately equal annual installments over a
period of five years, ten years or fifteen years. For purposes of the Plan, installment payments shall be treated as a single distribution under Section 409A of the Code. Accounts subject to installment payouts shall continue to be adjusted for
gains or losses in the same manner as active Accounts. A Participant may modify his or her elected form of distribution (i.e., lump sum or installments) at any time prior to the date that is at least one year before the date the Participant
separates from Service, provided that the Participant’s distribution is delayed at least five years from the originally scheduled distribution date. If a Participant modifies his or her elected form of distribution but he or she separates from
Service less than one year following the date of the modification election, his or her prior elected form of distribution shall apply to any distribution. 

  

	 	(b)	Distribution Prior to Retirement. If a Participant separates from Service with the Company or any of its non-U.S. subsidiaries prior to his or her Retirement Date (other than
on account of death), distribution of the Participant’s Account shall begin with the last payroll of the month following the month in which the Participant separates from Service and shall be made consistent with the form of distribution
specified on the Participant’s Deferred Compensation Election. After the first installment, future installments shall be paid with the second payroll of each Plan Year. Available forms of distribution shall include either a lump sum payment or
a series of approximately equal annual installments over a period of five years. For purposes of the Plan, installment payments shall be treated as a single distribution under Section 409A of the Code. Accounts subject to installment payouts
shall continue to be adjusted for gains or losses in the same manner as active Accounts. A Participant may modify his or her elected form of distribution (i.e. lump sum or installments) at any time prior to the date that is at least one year before
the date the Participant separates from Service, provided that the 

  

 11 

 Participant’s distribution is delayed at least five years from the originally scheduled
distribution date. If a Participant modifies his or her elected form of distribution but he or she separates from Service less than one year following the date of the modification election, his or her prior elected form of distribution shall apply
to any distribution. 
  

	 	(c)	Previously Scheduled Distribution Elections. A distribution election applicable to a Participant’s separation from Service on or after his or her Retirement Date or a
Participant’s separation from Service prior to his or her Retirement Date in effect under the Prior Plan shall remain in full force and effect with respect to the Plan subject to the terms and conditions of Sections 10(a) and (b) above.

  

	 	(d)	Default Distribution Election. In the absence of an effective Deferred Compensation Election as to the timing and/or method of distribution of a Participant’s Account,
distribution of the Participant’s Account shall be made in one lump sum payment with the last payroll of the month following the month in which the Participant separates from Service. 

  

	 	(e)	Delayed Distribution to Key Employees. Notwithstanding any other provision of Sections 10(a), (b), (c) or (d) above, a distribution made to a Participant who is
designated as a Key Employee shall be delayed for a minimum of sixth months following the Participant’s separation from Service. Any payment that otherwise would have been made pursuant to Sections 10(a), (b), (c) or (d) above during
such sixth month period shall be made in one lump sum payment with the last payroll of the seventh month following the month in which the Participant separates from Service. The determination of which Participants are Key Employees shall be made by
the Administrator in its sole discretion in accordance with Section 2(r) of the Plan and Sections 416(i) and 409A of the Code and the regulations promulgated thereunder. 

  

	 	(f)	Separation from Service on account of Leave of Absence or Reduction in Service. Notwithstanding any other provision of this Section 10, any distribution triggered under
the Plan on account of a Participant’s separation from Service following (i) a military leave, sick leave, or other bona fide leave of absence that is more than six months in duration where the Participant’s right to reemployment with
the Company or any of its non-U.S. subsidiaries is not provided either by statute or contract or (ii) a reduction in the Participant’s service with the Company or any of its non-U.S. subsidiaries to an annual rate that is less than twenty
percent of the services rendered, on average, during the immediately preceding three full calendar years of employment with the Company or any of its non-U.S. subsidiaries (or if employed by the Company or any of its non-U.S. subsidiaries less than
three years, such lesser period) or the annual remuneration for such services is less than twenty percent of the annual remuneration earned during the three full calendar years of employment (or if less, such lesser period), shall begin with the
last payroll of the month following the month in which the Participant is no longer paid through the Company’s or any of its non-U.S. subsidiaries’ payroll. 

  

 12 

	 	(g)	Unforeseeable Emergency. In the event of a Participant’s Unforeseeable Emergency, and upon application by such Participant, the Administrator may determine at its sole
discretion that payment of all, or part, of such Participant’s Account shall be made in one lump sum payment with the last payroll of the month following the month in which the distribution is approved by the Administrator. Payments due to a
Participant’s Unforeseeable Emergency shall be permitted only to the extent reasonably required to satisfy the Participant’s need. 

  

	 	(h)	Prohibition on Acceleration. Notwithstanding any other provision of the Plan to the contrary, no distribution shall be made from the Plan that would constitute an
impermissible acceleration of payment as defined in Section 409A(3) of the Code and the regulations promulgated thereunder. 

  

	 	11.	Effect of Death of Participant. 

  

	 	(a)	Distributions. In the event of a Participant’s death while an Eligible Employee or Eligible Board Member (except in the case of a Participant’s suicide during the
first two years of his or her participation in the Plan), the Participant’s Account, together with an amount equal to two times the Participant’s actual deferrals under the Plan (exclusive of earnings) (the “supplemental survivor
benefit”) shall be distributed to the Participant’s Beneficiary. Notwithstanding the foregoing, the total supplemental survivor benefit shall not exceed Three Million Dollars ($3,000,000). In the event of (i) a Participant’s
death while no longer an Eligible Employee or Eligible Board Member (as applicable), or (ii) a Participant’s suicide during the first two years of his or her participation in the Plan, only the Participant’s Account, if any, shall be
distributed to the Beneficiary. The Participant’s supplemental survivor benefit shall be paid in a lump sum not later than twelve months following the Participant’s death and the Participant’s Account, if any, shall be distributed to
the Participant’s Beneficiary in three annual installments commencing with the last payroll of the month following the month in which the Participant dies. After the first installment, future installments shall be paid with the second payroll
of each Plan Year. The remaining Account balance (during the period of the installment payouts) shall continue to be adjusted for gains or losses in the same manner as active Accounts. 

  

	 	(b)	Beneficiary Designation. Upon enrollment in the Plan, each Participant shall file a prescribed form with the Company naming a person or persons as the Beneficiary who will
receive distributions payable under the Plan in the event of the Participant’s death. If the Participant does not name a Beneficiary, or if none of the named Beneficiaries is living at the time payment is due, then the Beneficiary shall be the
Participant’s spouse, or if none, the Participant’s children in equal shares, or if none, the Participant’s estate. 

  

 13 

 The Participant may change the designation of a Beneficiary at any time in accordance with procedures
established by the Administrator. Designation of a Beneficiary, or an amendment or revocation thereof, shall be effective only if made in the prescribed manner and received by the Company prior to the Participant’s death. 
  

	 	12.	General Duties of Trustee. The Trustee shall manage, invest and reinvest the Trust Fund as provided in the Trust Agreement. The Trustee shall collect the income on the Trust
Fund, and make distributions therefrom, all as provided in the Plan and in the Trust Agreement 

  

	 	13.	Withholding Taxes. All distributions under the Plan shall be subject to reduction in order to reflect tax withholding obligations imposed by law. 

  

	 	14.	Participant’s Unsecured Rights. The Account of any Participant, and such Participant’s right to receive distributions from his or her Account, shall be considered
an unsecured claim against the general assets of the Company; such Accounts are unfunded bookkeeping entries. The Company considers the Plan to be unfunded for tax purposes and for purposes of Title I of ERISA. No Participant shall have an interest
in, or make claim against, any specific asset of the Company pursuant to the Plan. 

  

	 	15.	Non-assignability of Interests. Except as provided under Section 19 of the Plan, the interest of a Participant under the Plan is not subject to option or assignable by
either voluntary or involuntary assignment or by operation of law, including without limitation to: bankruptcy, garnishment, attachment or other creditor’s process. Any act in violation of this Section 15 shall be void and without effect.

  

	 	16.	Limitation of Rights. 

  

	 	(a)	Bonuses. Nothing in this Plan shall be construed to give any Eligible Employee any right to be granted a bonus award. 

  

	 	(b)	Employment Rights. Neither the Plan nor deferral of any Compensation, nor any other action taken pursuant to the Plan, shall constitute, or be evidence of, any agreement or
understanding, express or implied, that the Company will employ an Eligible Employee for any period of time, in any position at any particular rate of compensation. The Company reserves the right to terminate an Eligible Employee’s Service at
any time for any reason, except as otherwise expressly provided in a written employment agreement. 

  

	 	17.	Administration of the Plan. The Plan shall be administered by the Administrator. The Administrator shall have full power and authority to administer, construe and determine
all questions that shall arise as to interpretations of the Plan’s provisions, including determination of eligibility, allocation of assets, method of payment, participation and benefits under the terms of the Plan, establish procedures for
administering the Plan, prescribe forms, and take any and all necessary actions in connection with the Plan. The Administrator’s interpretation and construction of the Plan shall be conclusive and binding on all persons, and

  

 14 

 will be given the maximum possible deference allowed by law. The Administrator may appoint such agents,
counsel, accountants, consultants and other persons as may be required to assist in administering the Plan and to allocate and delegate its power and authority described herein to one or more employees, officers or agents or to one or more persons
or organizations that it has employed to perform its administrative responsibilities. In the event that any Participants are found to be ineligible, that is, not members of a select group of management or highly compensated employees, according to a
determination made by the U.S. Department of Labor, the Administrator shall take whatever steps it deems necessary, in its sole discretion, to equitably protect the interests of the affected Participants. 
  

	 	18.	Amendment or Termination of the Plan. 

  

	 	(a)	General Rule. The Compensation Committee may amend, suspend, or terminate the Plan at any time; provided, however, that no such action shall reduce a Participant’s
Account under the Plan without the Participant’s written consent. In the event of termination of the Plan, the Accounts of Participants shall be distributed within the period beginning twelve months after the date the Plan was terminated and
ending twenty-four months after the date the Plan was terminated, or pursuant to Sections 8 or 10 of the Plan, if earlier. If the Plan is terminated and Accounts are distributed, the Company shall terminate all account balance non-qualified deferred
compensation plans with respect to all participants and shall not adopt a new account balance non-qualified deferred compensation plan for at least five years after the date the Plan was terminated. 

  

	 	(b)	Change of Control. The Compensation Committee may terminate the Plan thirty days prior to or twelve months following a Change of Control and distribute the Accounts of the
Participants within the twelve-month period following the termination of the Plan. If the Plan is terminated and Accounts are distributed, the Company shall terminate all substantially similar non-qualified deferred compensation plans sponsored by
the Company and all of the benefits of the terminated plans shall be distributed within twelve months following the termination of the plans. 

  

	 	(c)	Dissolution or Bankruptcy. The Plan shall automatically terminate upon a corporation dissolution of the Company that is taxed under Section 331 of the Code or with the
approval of a bankruptcy court pursuant to 11 U.S.C. Section 503(b)(1(A), provided that the Participants’ Accounts are distributed and included in the gross income of the Participants by the latest of (i) the Plan Year in which the
Plan terminates or (ii) the first Plan Year in which payment of the Accounts is administratively practicable. 

  

	 	19.	Domestic Relations Orders. 

  

	 	(a)	In General. The procedures established by the Company for the determination of the qualified status of domestic relations orders and for making distributions under qualified
domestic relations orders, as provided in Section 206(d) of ERISA, shall apply to the Plan, to the extent applicable. 

  

 15 

	 	(b)	Distributions. To the extent required to comply with a qualified domestic relations order, amounts awarded to an alternate payee under a qualified domestic relations order
shall be distributed in the form of a lump sum distribution as soon as administratively feasible following the determination of the qualified status of the domestic relations order. To the extent that the qualified domestic relations order does not
require an immediate lump sum distribution, the alternate payee shall have all rights regarding investment elections and distribution elections and withdrawal rights as if such alternate payee were a Participant. For purposes of determining
distributions to an alternate payee, “separation from Service” or “Retirement Date” shall be the separation from Service or Retirement Date of the Participant whose Account was the subject of the qualified domestic relations
order. 

  

	 	20.	Incompetency. In the event a benefit is payable to a minor or person declared incompetent or incapable of handling the disposition of his property, the Administrator may pay
such benefit to the guardian, legal representative or person having the care or custody of such minor, incompetent or incapable person. The Administrator may require proof of incompetency, minority or guardianship as it may deem appropriate prior to
distribution of the benefit. Such distribution shall completely discharge the Company from all liability with respect to such benefit. 

  

	 	21.	Choice of Law. The validity, interpretation, construction and performance of the Plan shall be governed by ERISA and the Code, and, to the extent that they are not preempted,
by the laws of the State of California, excluding California’s choice-of-law provisions. 

  

	 	22.	Claims and Review Procedure. 

  

	 	(a)	Informal Resolution of Questions. Any Participant or Beneficiary who has questions or concerns about his or her benefits under the Plan is encouraged to communicate with the
Administrator. If this discussion does not give the Participant or Beneficiary satisfactory results, a formal claim for benefits may be made within one year of the event giving rise to the claim in accordance with the procedures of this
Section 22. 

  

	 	(b)	Formal Benefits Claim – Review by Administrator. A Participant or Beneficiary may make a written request for review of any matter concerning his or her benefits under
this Plan. The claim must be addressed to the Administrator, 2005 U.S. Non-qualified Deferred Compensation Plan, Sun Microsystems, Inc., 4230 Network Circle, M\S USCA23-106, Santa Clara, California 95054. The Administrator shall decide the action to
be taken with respect to any such request and may require additional information if necessary to process the request. The Administrator shall review the request and shall issue his or her decision, in writing, no later than 90 days after the date
the request is received, 

  

 16 

 unless the circumstances require an extension of time. If such an extension is required, written notice
of the extension shall be furnished to the person making the request within the initial 90-day period, and the notice shall state the circumstances requiring the extension and the date by which the Administrator expects to reach a decision on the
request. In no event shall the extension exceed a period of 90 days from the end of the initial period. 
  

	 	(c)	Notice of Denied Request. If the Administrator denies a request in whole or in part, he or she shall provide the person making the request with written notice of the denial
within the period specified in Section 22(b) above. The notice shall set forth the specific reason for the denial, reference to the specific Plan provisions upon which the denial is based, a description of any additional material or information
necessary to perfect the request, an explanation of why such information is required, and an explanation of the Plan’s appeal procedures and the time limits applicable to such procedures, including a statement of the claimant’s right to
bring a civil action under Section 502(a) of ERISA following an adverse benefit determination on review. 

  

	 	(d)	Appeal to Administrator. 

  

	 	(i)	A person whose request has been denied in whole or in part (or such person’s authorized representative) may file an appeal of the decision in writing with the Administrator
within 60 days of receipt of the notification of denial. The appeal must be addressed to: Administrator, 2005 U.S. Non-qualified Deferred Compensation Plan, Sun Microsystems, Inc., 4230 Network Circle, M\S USCA23-106, Santa Clara, California 95054.
The Administrator, for good cause shown, may extend the period during which the appeal may be filed for another 60 days. The appellant and/or his or her authorized representative shall be permitted to submit written comments, documents, records and
other information relating to the claim for benefits. Upon request and free of charge, the applicant should be provided reasonable access to and copies of, all documents, records or other information relevant to the appellant’s claim.

  

	 	(ii)	The Administrator’s review shall take into account all comments, documents, records and other information submitted by the appellant relating to the claim, without regard to
whether such information was submitted or considered in the initial benefit determination. The Administrator shall not be restricted in his or her review to those provisions of the Plan cited in the original denial of the claim.

  

	 	(iii)	The Administrator shall issue a written decision within a reasonable period of time but not later than 60 days after receipt of the appeal, unless special circumstances require an
extension of 

  

 17 

 time for processing, in which case the written decision shall be issued as soon as possible, but not
later than 120 days after receipt of an appeal. If such an extension is required, written notice shall be furnished to the appellant within the initial 60-day period. This notice shall state the circumstances requiring the extension and the date by
which the Administrator expects to reach a decision on the appeal. 
  

	 	(iv)	If the decision on the appeal denies the claim in whole or in part written notice shall be furnished to the appellant. Such notice shall state the reason(s) for the denial,
including references to specific Plan provisions upon which the denial was based. The notice shall state that the appellant is entitled to receive, upon request and free of charge, reasonable access to, and copies of, all documents, records, and
other information relevant to the claim for benefits. The notice shall describe any voluntary appeal procedures offered by the Plan and the appellant’s right to obtain the information about such procedures. The notice shall also include a
statement of the appellant’s right to bring an action under Section 502(a) of ERISA. 

  

	 	(v)	The decision of the Administrator on the appeal shall be final, conclusive and binding upon all persons and shall be given the maximum possible deference allowed by law.

  

	 	(e)	Exhaustion of Remedies. No legal or equitable action for benefits under the Plan shall be brought unless and until the claimant has submitted a written claim for benefits in
accordance with Section 22(b) above, has been notified that the claim is denied in accordance with Section 22(c) above, has filed a written request for a review of the claim in accordance with Section 22(d) above, and has been
notified in writing that the Administrator has affirmed the denial of the claim in accordance with Section 22(d) above; provided, however, that an action for benefits may be brought after the Administrator has failed to act on the claim within
the time prescribed in Section 22(b) and Section 22(d), respectively. 

  

	 	(f)	Statute of Limitations. No legal or equitable action for benefits under the Plan may be commenced more than two years after the Administrator denies the claim on appeal or the
Administrator fails to act on the claim within the time prescribed in Section 22(b) and Section 22(d), respectively. 

  

	 	23.	Execution and Signature. To record the adoption of the Plan by the Compensation Committee, the Company has caused its duly authorized officer to affix the corporate name
hereto: 

  

			
	 SUN MICROSYSTEMS, INC.

		
	 By:
	 	 /s/ William N. MacGowan

	 Printed Name: William N. MacGowan

	 Title:
	 	 Senior Vice President, Human Resources

  

 18

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