Document:

Registrant's 1990 Long-Term Equity Incentive Plan

 Exhibit 10.1 
 SUN MICROSYSTEMS, INC. 
 1990 LONG-TERM EQUITY INCENTIVE PLAN 
 AMENDED EFFECTIVE JANUARY 1, 2005 
 AMENDED FURTHER AS OF JANUARY 25, 2006 
 1. Purpose of the Plan. The purpose of the Sun Microsystems, Inc. 1990 Long-Term Equity Incentive
Plan is to enable Sun Microsystems, Inc. to provide an incentive to eligible employees, consultants and Officers whose present and potential contributions are important to the continued success of the Company, to afford them an opportunity to
acquire a proprietary interest in the Company, and to enable the Company to enlist and retain in its employ the best available talent for the successful conduct of its business. It is intended that this purpose will be effected through the granting
of (a) stock options, (b) stock purchase rights, (c) restricted stock units, (d) stock appreciation rights, and (e) long-term performance awards. 
 2. Definitions. As used herein, the following definitions shall apply: 
 (a) “Board” means the
Board of Directors of the Company. 
 (b) “Code” means the Internal Revenue Code of 1986, as amended. 
 (c) “Committee” means the Committee or Committees referred to in Section 5 of the Plan. If at any time no Committee shall be in office,
then the functions of the Committee specified in the Plan shall be exercised by the Board. 
 (d) “Common Stock” means the Common
Stock, $0.00067 par value (as adjusted from time to time), of the Company. 
 (e) “Company” means Sun Microsystems, Inc., a
corporation organized under the laws of the state of Delaware, or any successor corporation. 
 (f) “Disability” means a
disability, whether temporary or permanent, partial or total, as determined by the Committee. 
 (g) “Exchange Act” means the
Securities Exchange Act of 1934, as amended. 
 (h) “Fair Market Value” means, as of any date, the value of Common Stock determined
as follows: 
 (i) the last reported sale price of the Common Stock of the Company on the NASDAQ National Market System or, if no such
reported sale takes place on any such day, the average of the closing bid and asked prices, or 

 (ii) if such Common Stock shall then be listed on a national securities exchange, the last reported sale
price or, if no such reported sale takes place on any such day, the average of the closing bid and asked prices on the principal national securities exchange on which the Common Stock is listed or admitted to trading, or 
 (iii) if such Common Stock shall not be quoted on such National Market System nor listed or admitted to trading on a national securities exchange, then
the average of the closing bid and asked prices, as reported by The Wall Street Journal for the over-the-counter market, or 
 (iv) if none of
the foregoing is applicable, then the Fair Market Value of a share of Common Stock shall be determined by the Board in its discretion. 
 (i)
“Incentive Stock Option” means an Option intended to be and designated as an “Incentive Stock Option” within the meaning of Section 422 of the Code. 
 (j) “Long-Term Performance Award” means an award under Section 11 below. A Long-Term Performance Award shall permit the recipient to
receive a cash or stock bonus (as determined by the Committee) upon satisfaction of such performance factors as are set out in the recipient’s individual grant. Long-Term Performance Awards will be based upon the achievement of Company,
Subsidiary and/or individual performance factors or upon such other criteria as the Committee may deem appropriate. 
 (k) “Nonstatutory
Stock Option” means any Option that is not an Incentive Stock Option. 
 (l) “Officer” means an officer of the Company within
the meaning of Section 16 of the Exchange Act and the rules and regulations promulgated thereunder. 
 (m) “Option” means any
option to purchase shares of Common Stock granted pursuant to Section 7 below. 
 (n) “Plan” means this 1990 Long-Term Equity
Incentive Plan, as hereinafter amended from time to time. 
 (o) “Restricted Stock” means shares of Common Stock acquired pursuant
to a grant of Stock Purchase Rights under Section 9 below. 
 (p) “Restricted Stock Unit” means an award made pursuant to
Section 10 below. A Restricted Stock Unit entitles the recipient to receive shares of Common Stock after meeting specified vesting criteria. 
 (q) “Right” means and includes Stock Appreciation Rights and Stock Purchase Rights granted pursuant to the Plan. 
  

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 (r) “Special Reserve” means a number of shares reserved and available for issuance under the
terms of the Plan equal to 3% of the total shares reserved under the Plan as determined by and set forth under Section 4 below as such section may be amended from time to time in accordance with the terms of this Plan. 
 (s) “Stock Appreciation Right” means an award made pursuant to Section 8 below, which right permits the recipient to receive an amount of
Common Stock or cash equal in value to the difference between the Fair Market Value of Common Stock on the date of grant of the Option and the Fair Market Value of Common Stock on the date of exercise of the Stock Appreciation Right. 
 (t) “Stock Purchase Right” means the right to purchase Common Stock pursuant to a restricted stock purchase agreement entered into between the
Company and the purchaser under Section 9 below. 
 (u) “Subsidiary” means a corporation, domestic or foreign, of which not
less than 50% of the voting shares are 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. 
 3. Eligible Participants. Any Officer, consultant, or other employee of the Company or of a Subsidiary whom the Committee deems to have the potential to contribute to
the future success of the Company shall be eligible to receive awards under the Plan; provided, however, that any Options intended to qualify as Incentive Stock Options shall be granted only to employees of the Company or its Subsidiaries.

 4. Stock Subject to the Plan. Subject to Sections 12 and 13, the total number of shares of Common Stock reserved and available for distribution pursuant
to the Plan shall be 1,287,475,000 shares. The shares may be authorized, but unissued, or reacquired Common Stock. Subject to Sections 12 and 13 below, if any shares of Common Stock that have been optioned under an Option cease to be subject to such
Option (other than through exercise of the Option), or if any Right, Option, Restricted Stock Unit or Long-Term Performance Award granted hereunder is forfeited or any such award otherwise terminates prior to the issuance to the participant of
Common Stock, the shares (if any) that were reserved for issuance pursuant to such Right, Option, Restricted Stock Unit or Long-Term Performance Award shall again be available for distribution in connection with future awards or Option grants under
the Plan; provided, however, that shares of Common Stock that have actually been issued under the Plan, whether upon exercise of an Option or Right or in satisfaction of a Restricted Stock Unit or Long-Term Performance Award, shall not in any event
be returned to the Plan and shall not become available for future distribution under the Plan. 
 5. Administration. 
 (a) Procedure. 
 (i) Multiple Administrative
Bodies. The Plan may be administered by different Committees with respect to different groups of service providers. 
 (ii)
Section 162(m). To the extent that a Committee determines it to be desirable to 
  

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 qualify awards granted hereunder as “performance-based compensation” within the meaning of
Section 162(m) of the Code, the Plan shall be administered by a Committee consisting solely of two or more “outside directors” within the meaning of Section 162(m) of the Code. 
 (iii) Rule 16b-3. To the extent desirable to qualify transactions hereunder as exempt under Rule 16b-3 promulgated under the Exchange Act (“Rule
16b-3”), the transactions contemplated hereunder shall be structured to satisfy the requirements for exemption under Rule 16b-3. 
 (iv)
Other Administration. Other than as provided above, the Plan shall be administered by (A) the Board, or (B) a Committee, which committee shall be constituted to satisfy applicable securities laws, Delaware corporate law and the Code.

 (b) Authority. A Committee, if there be one, shall have full power to implement and carry out the Plan, subject to the general purposes,
terms, and conditions of the Plan and to the direction of the Board (including the specific duties delegated by the Board to such Committee), which power shall include, but not be limited to, the following: 
 (i) to select the Officers, consultants and other employees of the Company and/or its Subsidiaries to whom Options, Rights, Restricted Stock Units and/or
Long-Term Performance Awards may from time to time be granted hereunder; 
 (ii) to determine whether and to what extent Options, Rights,
Restricted Stock Units and/or Long-Term Performance Awards, or any combination thereof, are granted hereunder; 
 (iii) to determine the
number of shares of Common Stock to be covered by each such award granted hereunder; 
 (iv) to approve forms of agreement for use under the
Plan; 
 (v) to determine the terms and conditions, not inconsistent with the terms of the Plan, of any award granted hereunder (including,
but not limited to, the share price and any restriction or limitation, or any vesting acceleration or waiver of forfeiture restrictions regarding any Option or other award and/or the shares of Common Stock relating thereto, based in each case on
such factors as the Committee shall determine, in its sole discretion); 
 (vi) to determine whether and under what circumstances an Option
may be settled in cash or Restricted Stock under Section 7(j) instead of Common Stock; 
 (vii) to determine the form of payment that
will be acceptable consideration for exercise of an Option or Right or the purchase of Common Stock in satisfaction of a Restricted Stock Unit granted under the Plan; 
  

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 (viii) to determine, to the extent permitted by Section 409A of the Code, whether and under what
circumstances Common Stock and other amounts payable with respect to an award under this Plan shall be deferred either automatically or at the election of the participant (including providing for and determining the amount (if any) of any deemed
earnings on any deferred amount during any deferral period); 
 (ix) to reduce, to the extent permitted by Section 409A of the Code, the
exercise price of any Option or Right or the purchase price of any Common Stock issued in satisfaction of a Restricted Stock Unit; 
 (x) to
determine the terms and restrictions applicable to Stock Purchase Rights and the Restricted Stock purchased by exercising such Rights; 
 (xi)
to determine the terms and restrictions applicable to Restricted Stock Units and the Common Stock issued in satisfaction of Restricted Stock Units; and 
 (xii) to allow participants to satisfy withholding tax obligations by electing to have the Company withhold from the shares of Common Stock to be issued upon exercise or satisfaction of an award that number of shares
having a Fair Market Value equal to the amount required to be withheld. The Fair Market Value of the Shares to be withheld shall be determined on the date that the amount of tax to be withheld is to be determined. All elections by a participant to
have shares withheld for this purpose shall be made in such form and under such conditions as the Committee may deem necessary or advisable and shall be subject to the consent or disapproval of the Committee. 
 (c) Rules. The Committee shall have the authority to construe and interpret the Plan, to prescribe, amend and rescind rules and regulations relating to
the Plan, and to make all other determinations necessary or advisable for the administration of the Plan. 
 6. Duration of the Plan. The Plan shall remain
in effect until terminated by the Board under the terms of the Plan, provided that in no event may Incentive Stock Options be granted under the Plan later than October 15, 2010. 
 7. Stock Options. The Committee, in its discretion, may grant Options to eligible participants and shall determine whether such Options shall be Incentive Stock Options or Nonstatutory Stock Options. Each Option shall
be evidenced by a written Option agreement which shall expressly identify the Option as an Incentive Stock Option or as a Nonstatutory Stock Option, and be in such form and contain such provisions as the Committee shall from time to time deem
appropriate. Without limiting the foregoing, the Committee may, at any time, or from time to time, authorize the Company, with the consent of the respective recipients, to issue new Options including Options in exchange for the surrender and
cancellation of any or all outstanding Options or Rights. Option agreements shall contain the following terms and conditions: 
 (a) Exercise
Price; Number of Shares. The exercise price of the Option, which shall be approved 
  

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 by the Committee, must be equal to or greater than the Fair Market Value of the Common Stock at the time the Option is
granted. The Option agreement shall specify the exercise price and the number of shares of Common Stock to which it pertains. 
 (b) Waiting
Period; Exercise Dates; Term. At the time an Option is granted, the Committee will determine the terms and conditions to be satisfied before shares may be purchased, including the dates on which shares subject to the Option may first be purchased.
The Committee may specify that an Option may not be exercised until the completion of the waiting period specified at the time of grant. (Any such period is referred to herein as the “waiting period.”) At the time an Option is granted, the
Committee shall fix the period within which such Option may be exercised, which shall not be less than the waiting period, if any, nor, in the case of an Incentive Stock Option, more than 10 years from the date of grant. 
 (c) Form of Payment. The consideration to be paid for the shares of Common Stock to be issued upon exercise of an Option, including the method of
payment, shall be determined by the Committee (and, in the case of an Incentive Stock Option, shall be determined at the time of grant) and may consist entirely of (i) cash, (ii) certified or cashier’s check, (iii) promissory
note (provided that Officers may not exercise an Option using a promissory note), (iv) other shares of Common Stock (including, in the discretion of the Committee, Restricted Stock) which (A) either have been owned by the option
holder for more than six months on the date of surrender or were not acquired, directly or indirectly, from the Company, and (B) have a Fair Market Value on the date of surrender equal to the aggregate exercise price of the shares as to which
said Option shall be exercised, (v) delivery of a properly executed exercise notice together with irrevocable instructions to a broker to promptly deliver to the Company the amount of sale or loan proceeds required to pay the exercise price,
(vi) delivery of an irrevocable subscription agreement for the shares which obligates the option holder to take and pay for the shares not more than 11 months after the date of delivery of the subscription agreement or (vii) any
combination of the foregoing methods of payment. 
 (d) Effect of Termination of Employment, Retirement or Death of Employee Participants. In
the event that an option holder during his or her lifetime ceases to be an employee of the Company or of any Subsidiary for any reason, including retirement, any Option, including any unexercised portion thereof, which was otherwise exercisable on
the date of termination of employment, shall expire within such time period as is determined by the Committee; provided, however, that in the case of an Incentive Stock Option the Option shall expire unless exercised within a period of 3 months from
the date on which the option holder ceased to be an employee, but in no event after the expiration of the term of such Option as set forth in the Option agreement. If in any case the Committee shall determine that an employee shall have been
discharged for Just Cause (as defined below) such employee shall not thereafter have any rights under the Plan or any Option that shall have been granted to him or her under the Plan. For purposes of this Section, “Just Cause” means the
termination of employment of an employee shall have taken place as a result of (i) willful breach or neglect of duty; (ii) failure or refusal to work or to comply with the Company’s rules, policies, and practices;
(iii) dishonesty; (iv) insubordination; (v) being under the influence of drugs (except to the extent medically prescribed) or alcohol while on duty or on Company premises; (vi) conduct endangering, or likely to endanger, the
health or safety of another employee; or (vii) conviction of a felony. In the event of the death of an employee option holder, that portion of the Option which had become exercisable on the date of death 
  

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 shall be exercisable by his or her personal representatives, heirs, or legatees within six months or such time period as
is determined by the Committee but in no event after the expiration of the term of such Option as set forth in the Option agreement. In the event of the death of an option holder within one month after termination of employment or service, that
portion of the Option which had become exercisable on the date of termination shall be exercisable by his or her personal representatives, heirs, or legatees within six months or such time period as is determined by the Committee but in no event
after the expiration of the term of such Option as set forth in the Option agreement. In the event that an option holder ceases to be an employee of the Company or of any Subsidiary for any reason, including death or retirement, prior to the lapse
of the waiting period, if any, his or her Option shall terminate and be null and void to the extent unvested. 
 (e) Leave of Absence. The
employment relationship shall not be considered interrupted in the case of: (i) sick leave; (ii) military leave; (iii) any other leave of absence approved by the Committee, provided that such leave is for a period of not more than 3
months (or not more than 30 days for unpaid leave), unless reemployment upon the expiration of such leave is guaranteed by contract or statute, or unless provided otherwise pursuant to formal policy adopted from time to time by the Company and
issued and promulgated to employees in writing; or (iv) a transfer between locations of the Company or between the Company, its Subsidiaries or its successor. In the case of any employee on an approved leave of absence, the Committee may make
such provisions respecting suspension of vesting of the Option while on leave from the employ of the Company or a Subsidiary as it may deem appropriate, except that in no event shall an Option be exercised after the expiration of the term set forth
in the Option agreement. 
 (f) Acceleration of Exercisability or Waiting Period. The Committee may accelerate the earliest date on which
outstanding Options (or any installments thereof) are exercisable. 
 (g) Special Incentive Stock Option Provisions. In addition to the
foregoing, Options granted under the Plan which are intended to be Incentive Stock Options under Section 422 of the Code shall be subject to the following terms and conditions: 
 (i) Dollar Limitation. To the extent that the aggregate Fair Market Value of the shares of Common Stock with respect to which Options designated as
Incentive Stock Options become exercisable for the first time by any individual during any calendar year (under all plans of the Company) exceeds $100,000, such Options shall be treated as Nonstatutory Stock Options. For purposes of the preceding
sentence, (i) Options shall be taken into account in the order in which they were granted and (ii) the Fair Market Value of the shares shall be determined as of the time the Option with respect to such shares is granted. 
 (ii) 10% Stockholder. If any person to whom an Incentive Stock Option is to be granted pursuant to the provisions of the Plan is, on the date of grant,
the owner of Common Stock (as determined under Section 424(d) of the Code) possessing more than 10% of the total combined voting power of all classes of stock of the Company or of any Subsidiary, then the following special provisions shall be
applicable to the Incentive Stock Option granted to such individual: 
 (A) The exercise price per share of the Common Stock subject to such
Incentive Stock Option shall not be less than 110% of the Fair Market Value of the Common Stock on the date of grant; and 
  

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 (B) The Option shall not have a term in excess of five years from the date of grant. 
 Except as modified by the preceding provisions of this Section 7(g) and except as otherwise required by Section 422 of the Code, all of the provisions of the
Plan shall be applicable to the Incentive Stock Options granted hereunder. 
 (h) Other Provisions. Each Option granted under the Plan may
contain such other terms, provisions, and conditions not inconsistent with the Plan as may be determined by the Committee. 
 (i) Options to
Consultants. Options granted to consultants shall not be subject to Sections 7(b) and 7(d) of the Plan, but shall have such terms and conditions pertaining to the waiting period (if any), exercise date, and effect of termination of the consulting
relationship as the Committee shall determine in each case. 
 (j) Buyout Provisions. The Committee may at any time offer to buy out, for a
payment in cash or Common Stock (including Restricted Stock), an Option previously granted, based on such terms and conditions as the Committee shall establish and communicate to the option holder at the time that such offer is made. Any such offer
made to an Officer shall comply with the applicable provisions of Rule 16b-3. This provision is intended only to clarify the powers of the Committee and shall not in any way be deemed to create any rights on the part of option holders to receive
buyout offers or payments. 
 (k) Limitations on Grants to Employees. Notwithstanding anything to the contrary herein, the following
limitations shall apply to grants of Options: 
 (i) No eligible participant shall be granted, in any fiscal year of the Company, Options to
purchase more than 4,800,000 shares. 
 (ii) In connection with his or her initial employment, an eligible participant may be granted Options
to purchase up to an additional 6,400,000 shares which shall not count against the limit set forth in subsection (i) above. 
 (iii) The
foregoing limitations shall be adjusted proportionately in connection with any change in the Company’s capitalization as described in Section 12. 
 (iv) If an Option is cancelled (other than in connection with a transaction described in Section 13), the cancelled Option will be counted against the limit set forth in this paragraph (k). For this purpose, if
the exercise price of an Option is reduced, the transaction will be treated as a cancellation of the Option and the grant of a new Option. 
 8. Stock
Appreciation Rights. Stock Appreciation Rights may be granted only in connection with an Option, either concurrently with the grant of the Option or at any time thereafter during the term of the Option. The following provisions apply to such Stock
Appreciation Rights. 
  

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 (a) Exercise of Right. The Stock Appreciation Right shall entitle the option holder to exercise the Right
by surrendering to the Company unexercised a portion of the underlying Option as to which Option holder has a right to exercise. The Option holder shall receive in exchange from the Company an amount in cash or Common Stock equal in value to the
excess of (x) the Fair Market Value on the date of exercise of the Right of the Common Stock covered by the surrendered portion of the underlying Option over (y) the exercise price of the Common Stock covered by the surrendered portion of
the underlying Option, as determined in accordance with Section 7(a) above. Notwithstanding the foregoing, the Committee may place limits on the amount that may be paid upon exercise of a Stock Appreciation Right; provided, however, that such
limit shall not restrict the exercisability of the underlying Option. 
 (b) Option Cancelled. When a Stock Appreciation Right is exercised,
the underlying Option, to the extent surrendered, shall no longer be exercisable. 
 (c) Exercisability Requirement. A Stock Appreciation
Right shall be exercisable only when and to the extent that the underlying Option is exercisable and shall expire no later than the date on which the underlying Option expires. 
 (d) In-the-Money Requirement. A Stock Appreciation Right may only be exercised at a time when the Fair Market Value of the Common Stock covered by the
underlying Option exceeds the exercise price of the Common Stock covered by the underlying Option. 
 (e) Incentive Stock Option
Requirements. In the event that a Stock Appreciation Right is granted that relates to an Incentive Stock Option, such Right shall contain such additional or different terms as may be necessary under applicable regulations to preserve treatment of
the Incentive Stock Option as such under Section 422 of the Code. 
 (f) Form of Payment. The Company’s obligation arising upon the
exercise of a Stock Appreciation Right shall be paid currently and may be paid in Common Stock or in cash, or in any combination of Common Stock and cash, as the Committee in its sole discretion may determine. Shares of Common Stock issued upon the
exercise of a Stock Appreciation Right shall be valued at the Fair Market Value of the Common Stock as of the date of exercise. 
 9. Stock Purchase Rights.

 (a) Rights to Purchase. Stock Purchase Rights may be issued either alone, in addition to, or in tandem with other awards granted under the
Plan and/or cash awards made outside of the Plan. After the Committee determines that it will offer Stock Purchase Rights under the Plan, it shall advise the offeree in writing of the terms, conditions and restrictions related to the offer,
including the number of shares of Common Stock that such person shall be entitled to purchase, the price to be paid, which price in the case of individuals subject to Section 16 of the Exchange Act shall not be more than $0.00067 per share (the
par value of the Company’s Common Stock, as adjusted from time to time, and the 
  

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 minimum price permitted by the Delaware General Corporation Law), and the time within which such person must accept such
offer, which shall in no event exceed 60 days from the date the Stock Purchase Right was granted. The offer shall be accepted by execution of a Restricted Stock purchase agreement in the form determined by the Committee. Shares purchased pursuant to
the grant of a Stock Purchase Right shall be referred to herein as “Restricted Stock.” 
 (b) Repurchase Option. The Restricted
Stock purchase agreement shall grant the Company a repurchase option exercisable upon the voluntary or involuntary termination of the purchaser’s employment with the Company for any reason (including death or Disability). The purchase price for
shares repurchased pursuant to the Restricted Stock purchase agreement shall be the original price paid by the purchaser and may be paid by cancellation of any indebtedness of the purchaser to the Company. The repurchase option shall lapse as to not
more than 50% of such shares at a date not earlier than 2-1/2 years from the date of grant of the Restricted Stock and as to the remaining shares at a date not earlier than 5 years from the date of grant of the Restricted Stock. The Committee shall
exercise its repurchase option in accordance with the above. Notwithstanding the foregoing, with respect to Restricted Stock granted out of and subject to the restrictions of the Special Reserve, the Committee may in its discretion exercise its
repurchase option and such repurchase option shall lapse as to such shares at such a rate as the Committee may, in its discretion, determine. 
 (c) Other Provisions. The Restricted Stock purchase agreement shall contain such other terms, provisions and conditions not inconsistent with the Plan as may be determined by the Committee in its sole discretion. In addition, the provisions
of Restricted Stock purchase agreements need not be the same with respect to each purchaser. 
 10. Restricted Stock Units. 
 (a) Awards. Restricted Stock Units may be issued either alone, in addition to, or in tandem with other awards granted under the Plan and/or cash awards
made outside of the Plan. After the Committee determines that it will offer Restricted Stock Units under the Plan, it shall advise the offeree in writing of the terms, conditions and restrictions related to the offer, including the number of shares
of Common Stock issuable in satisfaction of such Restricted Stock Units, the price to be paid, which price in the case of individuals subject to Section 16 of the Exchange Act shall not be more than $0.00067 per share (the par value of the
Company’s Common Stock, as adjusted from time to time, and the minimum price permitted by the Delaware General Corporation Law), and the time within which such person must accept such offer, which shall in no event exceed 60 days from the date
the Restricted Stock Unit was granted. The offer shall be accepted by execution of a Restricted Stock Unit agreement in the form determined by the Committee. 
 (b) Vesting. The Restricted Stock Unit agreement shall provide for vesting that shall cease upon the voluntary or involuntary termination of the purchaser’s employment with the Company for any reason (including
death or Disability). Restricted Stock Units shall vest as to not more than 50% of such shares at a date not earlier than 2-1/2 years from the date of grant of the Restricted Stock Unit and as to the remaining shares at a date not earlier than 5
years from the date of grant of the Restricted Stock Unit. Notwithstanding the foregoing, Restricted Stock Units granted out of and subject to the restrictions of the Special Reserve shall vest at such a rate as the Committee may, in its discretion,
determine. 
  

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 (c) Other Provisions. The Restricted Stock Unit agreement shall contain such other terms, provisions and
conditions not inconsistent with the Plan as may be determined by the Committee in its sole discretion. In addition, the provisions of Restricted Stock Unit agreements need not be the same with respect to each purchaser. 
 11. Long-Term Performance Awards. 
 (a) Awards. Long-Term
Performance Awards are cash or stock bonus awards that may be granted either alone, in addition to or in tandem with other awards granted under the Plan and/or awards made outside of the Plan. Long-Term Performance Awards shall not require payment
by the recipient of any consideration for the Long-Term Performance Award or for the shares of Common Stock covered by such award. The Committee shall determine the nature, length and starting date of any performance period (the “Performance
Period”) for each Long-Term Performance Award and shall determine the performance and/or employment factors to be used in the determination of the value of Long-Term Performance Awards and the extent to which such Long-Term Performance Awards
have been earned. Shares issued pursuant to a Long-Term Performance Award may be made subject to various conditions, including vesting or forfeiture provisions. Long-Term Performance Awards may vary from participant to participant and between groups
of participants and shall be based upon the achievement of Company, Subsidiary and/or individual performance factors or upon such other criteria as the Committee may deem appropriate. Performance Periods may overlap and participants may participate
simultaneously with respect to Long-Term Performance Awards that are subject to different Performance Periods and different performance factors and criteria. Long-Term Performance Awards shall be confirmed by, and be subject to the terms of, a
written Long-Term Performance Award agreement. 
 (b) Value of Awards. At the beginning of each Performance Period, the Committee may
determine for each Long-Term Performance Award subject to such Performance Period the range of dollar values and/or numbers of shares of Common Stock to be issued to the participant at the end of the Performance Period if and to the extent that the
relevant measures of performance for such Long-Term Performance Award are met. Such dollar values or numbers of shares of Common Stock may be fixed or may vary in accordance with such performance or other criteria as may be determined by the
Committee. 
 (c) Adjustment of Awards. Notwithstanding the provisions of Section 20 hereof, the Committee may, after the grant of
Long-Term Performance Awards, adjust the performance factors applicable to such Long-Term Performance Awards to take into account changes in the law or in accounting or tax rules and to make such adjustments as the Committee deems necessary or
appropriate to reflect the inclusion or exclusion of the impact of extraordinary or unusual items, events or circumstances in order to avoid windfalls or hardships. 
 (d) Termination. Unless otherwise provided in the applicable Long-Term Performance Award agreement, if a participant terminates his or her employment or his or her consultancy during a Performance Period because of
death or Disability, the Committee may in its discretion provide for an 
  

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 earlier payment in settlement of such award, which payment may be in such amount and under such terms and conditions as
the Committee deems appropriate. Unless otherwise provided in the applicable Long-Term Performance Award agreement, if a participant terminates employment or his or her consultancy during a Performance Period for any reason other than death or
Disability, then such a participant shall not be entitled to any payment with respect to the Long-Term Performance Award subject to such Performance Period, unless the Committee shall otherwise determine in its discretion. 
 (e) Form of Payment. The earned portion of a Long-Term Performance Award may be paid currently or on a deferred basis consistent with Section 409A
of the Code (with such interest or earnings equivalent as may be determined by the Committee). Payment shall be made in the form of cash or whole shares of Common Stock, including Restricted Stock, or a combination thereof, either in a lump sum
payment or in installments, all as the Committee shall determine at the time of grant. 
 (f) Reservation of Shares. In the event that the
Committee grants a Long-Term Performance Award that is payable in cash or Common Stock, the Committee may (but need not) reserve an appropriate number of shares of Common Stock under the Plan at the time of grant of the Long-Term Performance Award.
If and to the extent that the full amount reserved is not actually paid in Common Stock, the shares of Common Stock representing the portion of the reserve for that Long-Term Performance Award that is not actually issued in satisfaction of such
Long-Term Performance Award shall again become available for award under the Plan. If shares of Common Stock are not reserved by the Committee at the time of grant, then (i) no shares shall be deducted from the number of shares available for
grant under the Plan at that time and (ii) at the time of payment of the Long-Term Performance Award, only the number of shares actually issued to the participant shall be so deducted. If there are not a sufficient number of shares available
under the Plan for issuance to a participant at the time of payment of a Long-Term Performance Award, any shortfall shall be paid by the Company in cash. 
 12. Recapitalization. In the event that dividends are payable in Common Stock or in the event there are splits, subdivisions, or combinations of shares of Common Stock, the number of shares available under the Plan shall be increased or
decreased proportionately, as the case may be, and the number of shares of Common Stock deliverable in connection with any Option, Right, Restricted Stock Unit or Long-Term Performance Award theretofore granted shall be increased or decreased
proportionately, as the case may be, without change in the aggregate purchase price (where applicable). 
 13. Reorganization. In case the Company is merged
or consolidated with another corporation and the Company is not the surviving corporation, or in case the property or stock of the Company is acquired by another corporation, or in case of separation, reorganization, or liquidation of the Company,
the Committee, or the board of directors of any corporation assuming the obligations of the Company hereunder, shall, as to outstanding Options, Rights, Restricted Stock Units or Long-Term Performance Awards either (a) make appropriate
provision for the protection of any such outstanding Options, Rights, Restricted Stock Units or Long-Term Performance Awards by the assumption or substitution on an equitable basis of appropriate stock of the Company or of the merged, consolidated,
or otherwise reorganized corporation which will be issuable in respect to the shares of Common Stock, provided that in the case of Options, such assumption or substitution comply with Section 424(a) of the Code, or (b) upon written notice
to the participant, provide that the Option or Right must be exercised within 30 days of the date of such notice or it will be terminated. In any such case, the Committee may, in its discretion, advance the lapse of vesting periods, waiting periods,
and exercise dates. 
  

 12 

 14. Employment or Consulting Relationship. Nothing in the Plan or any award made hereunder shall interfere with or limit
in any way the right of the Company or of any Subsidiary to terminate any recipient’s employment or consulting relationship at any time, with or without cause, nor confer upon any recipient any right to continue in the employ or service of the
Company or any Subsidiary. 
 15. General Restriction. Each award shall be subject to the requirement that, if, at any time, the Committee shall determine,
in its discretion, that the listing, quotation, registration, or qualification of the shares subject to such award upon any securities exchange or quotation system or under any state or federal law, or the consent or approval of any government
regulatory body, is necessary or desirable as a condition of, or in connection with, such award or the issue or purchase of shares thereunder, such award may not be exercised in whole or in part unless such listing, quotation, registration,
qualification, consent, or approval shall have been effected or obtained free of any conditions not acceptable to the Committee. 
 16. Rights as a
Stockholder. The holder of an Option, Right, Restricted Stock Unit or Long-Term Performance Award shall have no rights as a stockholder with respect to any shares covered by such Option, Right, Restricted Stock Unit or Long-Term Performance Award
until the date of exercise. Once an Option, Right, Restricted Stock Unit or Long-Term Performance Award is exercised by the holder thereof, the participant shall have the rights equivalent to those of a stockholder, and shall be a stockholder when
his or her holding is entered upon the records of the duly authorized transfer agent of the Company. Except as otherwise expressly provided in the Plan, no adjustment shall be made for dividends or other rights for which the record date is prior to
the date such stock certificate is issued. 
 17. Nonassignability of Awards. No awards made hereunder, including Options, Rights, Restricted Stock Units and
Long-Term Performance Awards, shall be assignable or transferable by the recipient other than by will or by the laws of descent and distribution or pursuant to a qualified domestic relations order as defined by the Code or Title I of the Employee
Retirement Income Security Act, or the rules thereunder, and in no event shall such awards be assigned or transferred in a manner that is inconsistent with the specific Plan provisions relating thereto. The designation of a beneficiary by a
participant does not constitute a transfer. During the life of the recipient, an Option, Right, Restricted Stock Unit or Long-Term Performance Award shall be exercisable only by him or her or by a transferee permitted by this Section 17.

 18. Withholding Taxes. Whenever, under the Plan, shares are to be issued in satisfaction of Options, Rights, Restricted Stock Units or Long-Term
Performance Awards granted hereunder, the Company shall have the right to require the recipient to remit to the Company an amount sufficient to satisfy federal, state, and local withholding tax requirements prior to the delivery of any certificate
or certificates for such shares. Whenever, under the Plan, payments are to be made to participants in cash, such payments shall be net of an amount sufficient to satisfy federal, state, and local withholding tax requirements. 
 19. Nonexclusivity of the Plan. Neither the adoption or amendment of the Plan by the Board, the 
  

 13 

 submission of the Plan or any amendments thereto to the stockholders of the Company for approval, nor any provision of
the Plan shall be construed as creating any limitations on the power of the Board or the Committee to adopt and implement such additional compensation arrangements as it may deem desirable, including, without limitation, the awarding of cash or the
granting of stock options, stock appreciation rights, stock purchase rights, restricted stock units or long-term performance awards outside of the Plan, and such arrangements may be either generally applicable to a class of employees or consultants
or applicable only in specified cases. 
 20. Amendment, Suspension, or Termination of the Plan. The Board may at any time amend, alter, suspend, or
terminate the Plan, but no amendment, alteration, suspension, or termination shall be made which would impair the rights of any grantee under any grant theretofore made, without his or her consent. In addition, to the extent necessary and desirable
to comply with Rule 16b-3 under the Exchange Act or under Section 422 of the Code (or any other applicable law), the Company shall obtain stockholder approval of any Plan amendment in such a manner and to such a degree as is required by
such applicable law. 
 21. Effective Date of the Plan. The Plan shall become effective upon approval of the Board and shall be subject to stockholder
approval within 11 months of adoption by the Board. Options, Rights, Restricted Stock Units and Long-Term Performance Awards may be granted and exercised under the Plan only after there has been compliance with all applicable federal and state
securities laws. 
  

 14Representative form of restricted stock unit grant agreement under the 1990 Plan

 Exhibit 10.4 
 SUN MICROSYSTEMS, INC. 
 RESTRICTED STOCK UNIT AGREEMENT 
 NOTICE OF GRANT 
 Sun
Microsystems, Inc. (“Sun”) is pleased to inform you that you, [                    ], have been granted the number of restricted
stock units (“Restricted Stock Units”) indicated below under Sun’s 1990 Long-Term Equity Incentive Plan (the “Plan”) and the terms of this Restricted Stock Unit agreement (including the Notice of Grant and Appendices A and
B, all of which are the “Agreement”). Subject to the provisions of the Agreement and the Plan, the principal features of this grant are as follows: 
  

			
	Grant Date:	  	[Date]
		
	Total Number of Restricted Stock Units:	  	[To come]
		
	Scheduled Vesting:	  	50% of total Restricted Stock Units vest 2.5 years after Grant Date; remaining 50% vest 5 years after Grant Date*
		
	Purchase Price per Share:	  	$.00067 payable in services rendered by you (no cash payment required)
		
	Acceptance Deadline:	  	You must accept this grant of Restricted Stock Units prior to the Acceptance Deadline, which is sixty (60) days from the Grant Date.

	*	Except as otherwise provided in the Agreement or by the terms of the Plan, you will not vest in the Restricted Stock Units unless you remain employed by Sun or one of its
Subsidiaries through the applicable vesting date. 

 Your acceptance of this grant either by signature below or by electronic
acceptance indicates your understanding that this grant is subject to all of the terms described in this Agreement, including Appendices A and B, and the Plan. Important additional information on vesting and forfeiture of the Restricted Stock
Units covered by this grant is contained in paragraphs 4 through 5 and paragraph 7 of Appendix A. PLEASE BE SURE TO READ ALL OF APPENDIX A, WHICH CONTAINS THE SPECIFIC TERMS OF THIS GRANT. 
 THIS AGREEMENT MUST BE ACCEPTED BY YOU BY THE ACCEPTANCE DEADLINE, OR THIS GRANT OF RESTRICTED STOCK UNITS WILL AUTOMATICALLY BE CANCELED.

  

							
	SUN MICROSYSTEMS, INC.	 		 	GRANTEE
				
	By:	 	 /s/ Michael A. Dillon
	 		 	  

	Title:	 	Senior VP, General Counsel and Secretary	 		 	[Name]

 APPENDIX A 
 TERMS OF RESTRICTED STOCK UNITS 
  

	 	1.	Grant. Sun hereby grants to you under the Plan at the per share price of $.00067 (the “Purchase Price”), the number of Restricted Stock Units indicated in the
Notice of Grant, subject to all of the terms in this Agreement and the Plan. The Purchase Price equals the par value of a share of Sun Common Stock (a “Share”). 

  

	 	2.	Payment of Purchase Price. When Shares are issued to you in payment for the Restricted Stock Units, the Purchase Price will be deemed paid through services rendered by you
(not in cash), and will be subject to the appropriate tax withholdings. 

  

	 	3.	Sun’s Obligation to Pay. Unless and until the Restricted Stock Units have vested in the manner set forth in paragraphs 4 or 5, you will have no right to payment of
the Restricted Stock Units. Until any vested Restricted Stock Units actually are paid, the Restricted Stock Units will be an unsecured obligation of Sun. Any vested Restricted Stock Units will be paid in Shares. Only whole Shares will be issued.

  

	 	4.	Vesting Schedule. 

  

	 	(a)	General. Except as otherwise provided in this paragraph 4 and paragraph 5 of this Agreement, and subject to paragraph 7, the Restricted Stock Units are scheduled to vest
in accordance with the vesting schedule shown in the Notice of Grant. Restricted Stock Units scheduled to vest on any date actually will vest only if you continue to be employed by Sun or one of its Subsidiaries through the applicable vesting date,
except to the extent otherwise provided in this Agreement, by Sun in a written agreement between you and an authorized officer of Sun or in accordance with the then-applicable written policies of Sun. In all instances in which Restricted Stock Units
continue to vest after you cease to be employed by Sun or one of its Subsidiaries, the payment of such accelerated Restricted Stock Units nevertheless will be made at the same time or times such Restricted Stock Units would have been paid had they
vested in accordance with the vesting schedule shown in the Notice of Grant. 

  

	 	(b)	Leave of Absence. Notwithstanding the above, vesting of the Restricted Stock Units will be suspended if you take an authorized unpaid leave of absence (including a leave of
absence for military, educational, disability or personal purposes, but except as may be required by law) of more than thirty (30) days or an authorized paid leave of absence of more than ninety (90) days. The vesting schedule shown in the
Notice of Grant will be delayed for the number of days that the authorized unpaid leave of absence or authorized paid leave of absence extends beyond the periods set forth above. The suspension of vesting will commence on the thirty-first
(31st) day of an authorized unpaid leave of absence of more than thirty (30) days or, in the case of an
authorized paid leave of absence of more than ninety (90) days, on the ninety-first (91st) day of the
leave and the suspension will end on the earlier of: (i) the last business day preceding the date on which your leave of absence terminates; or (ii) a date twelve (12) months after the beginning of the leave of

 absence. These vesting suspension provisions will be applied in compliance with local law. Sun policies
on leave of absence may vary outside the United States, in accordance with local law. The preceding two sentences will apply only to those employees who are not subject to United States taxes. 
  

	 	(c)	Disability. Notwithstanding the above, if your employment with Sun (or the employing Subsidiary) terminates as a result of your Disability, during the twelve (12) months
following your termination, you will continue to vest as to the number of Restricted Stock Units that would have vested if you had remained an employee of Sun (or the employing Subsidiary) during that period. For purposes of this Agreement,
“Disability” means your total and permanent disability as defined in Section 22(e)(3) of the Code. 

  

	 	(d)	Death. Notwithstanding the above, if your employment with Sun (or the employing Subsidiary) terminates as a result of your death, the Restricted Stock Units granted under
this Agreement will continue to vest during the twelve (12) months following your death as to the number of Restricted Stock Units that would have vested had you remained an employee of Sun (or the employing Subsidiary) during that period.

  

	 	5.	Committee Discretion. The Committee, in its discretion, may accelerate the vesting of some or all of the Restricted Stock Units at any time, subject to the terms of the Plan.
If so accelerated, the Restricted Stock Units will be considered as having vested as of the date specified by the Committee. If the Committee, in its discretion, accelerates the vesting of any Restricted Stock Units, the payment of the accelerated
Restricted Stock Units nevertheless will be made at the same time or times as if the Restricted Stock Units had vested in accordance with the vesting schedule shown on the Notice of Grant (whether or not you remain employed by Sun or one of its
Subsidiaries). 

  

	 	6.	Payment after Vesting. Any Restricted Stock Units that vest while you remain employed by Sun or one of its Subsidiaries in accordance with paragraph 4 will be paid to you (or
in the event of your death, to your estate) in Shares as soon as administratively practicable following the date of vesting, subject to paragraph 9. Any Restricted Stock Units that continue to vest after you cease to be employed by Sun or one
of its Subsidiaries as provided in paragraph 4 or that vest in accordance with paragraph 5 will be paid to you (or in the event of your death, to your estate) in Shares in accordance with the provision of such paragraphs, subject to
paragraph 9. For each Restricted Stock Unit that vests, you will receive one Share. 

  

	 	7.	Forfeiture. Except as expressly provided herein, any Restricted Stock Units that have not vested at the time you cease to be employed by Sun or one of its Subsidiaries will
be forfeited and automatically transferred to and reacquired by Sun at no cost to Sun. 

  

	 	8.	Death. Any distribution or delivery to be made to you under this Agreement will, if you are then deceased, be made to the administrator or executor of your estate. The
administrator or executor must furnish Sun with (a) written notice of his or her status as transferee, and (b) evidence satisfactory to Sun to establish the validity of the transfer and compliance with any applicable laws or regulations.

  

	 	9.	Withholding of Taxes. Regardless of any action Sun or the company that employs you (the “Employer”) takes with respect to any or all income tax, social insurance,
payroll 

 tax, payment on account or other tax-related withholding (“Tax-Related Items”), you acknowledge
that the ultimate liability for all Tax-Related Items legally due by you is and remains your responsibility and that Sun and/or the Employer (1) make no representations or undertakings regarding the treatment of any Tax-Related Items in
connection with any aspect of the grant of Restricted Stock Units, including the grant, vesting and lapse of repurchase rights, the subsequent sale of Shares and/or the receipt of any dividends; and (2) do not commit to structure the terms of
the grant or any aspect of the grant of Restricted Stock Units to reduce or eliminate your liability for Tax-Related Items. When the Shares are issued as payment for vested Restricted Stock Units, you will recognize immediate U.S. taxable income if
you are a U.S. taxpayer. If you are a non-U.S. taxpayer, you will be subject to applicable taxes in your jurisdiction. Sun or the Employer is required to withhold from you an amount that is sufficient to pay the minimum federal, state and local
income, employment and any other applicable taxes required to be withheld by Sun or the Employer with respect to the Shares. Sun or the Employer may, in its discretion, meet this withholding requirement in any one or more of the three following
ways: 
  

	 	(a)	by withholding or selling a portion of the Shares that otherwise would be paid out for your vested Restricted Stock Units. 

  

	 	(b)	by withholding the amount necessary to pay the applicable taxes from your paycheck, with no withholding of Shares. 

  

	 	(c)	by requiring you to make alternate arrangements to meet the withholding obligation. 

  

	 	(d)	or such other method as Sun or the Committee may elect in compliance with local law. 

 No payment of Shares will be made to you (or your estate) for Restricted Stock Units unless and until satisfactory arrangements (as determined by Sun) have been made by you to fulfill Sun’s (or the
Employer’s) obligation to withhold or collect any income and other taxes with respect to the Restricted Stock Units. By accepting this grant, you expressly consent to the withholding of Shares and to any additional (or alternative) cash
withholding as provided for in this paragraph 9. All income and other taxes related to the Restricted Stock Unit award and any Shares delivered in payment thereof are your sole responsibility. 
  

	 	10.	Rights as Stockholder. Neither you nor any person claiming under or through you will have any of the rights or privileges of a stockholder of Sun in respect of any Shares
deliverable hereunder unless and until certificates representing the Shares (which may be in book entry form) have been issued, recorded on the records of Sun or its transfer agents or registrars, and delivered to you (including through electronic
delivery to a brokerage account). Notwithstanding any other part of this Agreement, any quarterly or other regular, periodic dividends or distributions (as determined by Sun) will not affect unvested Restricted Stock Units, and no dividends or other
distributions will be paid on unvested Restricted Stock Units. Notwithstanding any other part of this Agreement, any quarterly or other regular, periodic dividends or distributions (as determined by Sun) paid on Shares will accrue with respect to
Restricted Stock Units that are vested but 

 unpaid pursuant to paragraph 4 or 5, and will be paid out at the same time or time(s) as the
underlying Shares on which such dividends or other distributions have accrued. After the issuance, recordation and delivery of any shares, you will have all the rights of a stockholder of Sun with respect to voting the Shares and receiving dividends
and distributions on the Shares. 
  

	 	11.	Nature of Grant. In accepting the offer to acquire Shares, you acknowledge that: (a) the Plan is established voluntarily by Sun, it is discretionary in nature and it may
be modified, amended, suspended or terminated by Sun at any time, unless otherwise provided in the Plan and this Agreement; (b) the grant of Restricted Stock Units is voluntary and occasional and does not create any contractual or other right
to receive future grants of restricted stock units, or benefits in lieu of such grants even if restricted stock units have been granted repeatedly in the past; (c) all decisions with respect to future Restricted Stock Unit grants, if any, will
be at the sole discretion of Sun; (d) you are voluntarily participating in the Plan; (e) the grant of Restricted Stock Units is an extraordinary item that does not constitute compensation of any kind for services of any kind rendered to
Sun or the Employer, and which is outside the scope of your employment contract, if any; (f) the Restricted Stock Units are not part of normal or expected compensation or salary for any purposes, including, but not limited to, calculating any
severance, resignation, termination, redundancy, end of service payments, bonuses, long-service awards, pension or retirement benefits or similar payments; (g) the future value of the Shares is unknown and cannot be predicted with certainty;
(h) in consideration of the grant of Restricted Stock Units, no claim or entitlement to compensation or damages will arise from the termination of vesting or diminution in value of the Shares resulting from termination of your active employment
by Sun or the Employer (for any reason whatsoever and whether or not in breach of contract or local labor laws) and you irrevocably release Sun and the Employer from any such claim that may arise; if, notwithstanding the foregoing, any such claim is
found by a court of competent jurisdiction to have arisen, then, by signing this Agreement, you will be deemed irrevocably to have waived your entitlement to pursue such claim; and (i) notwithstanding any terms or conditions of the Plan to the
contrary, in the event of involuntary termination of your active employment (whether or not in breach of contract or local labor laws), your right to continued vesting, if any, will terminate effective as of the date that you are no longer actively
employed and will not be extended by any notice period mandated under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law), except as expressly provided herein, and that
Sun will have the exclusive discretion to determine when you are no longer actively employed for purposes of administering your grant of Restricted Stock Units. 

  

	 	12.	Address for Notices. Any notice to be given to Sun under the terms of this Agreement must be addressed to Sun, in care of its Secretary, at 4150 Network Circle, Santa Clara,
CA 95054, or at such other address as Sun may hereafter designate in writing. 

  

	 	13.	Grant is Not Transferable. Except to the limited extent provided in paragraph 8 above, this grant (and the associated rights and privileges) cannot be transferred,
assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and will not be subject to sale under execution, attachment or similar process. Upon any attempt to transfer, assign, pledge, hypothecate or otherwise dispose of
this grant, or of any associated right or privilege, or upon any attempted sale under any execution, attachment or similar process, this grant and the associated rights and privileges will immediately become null and void. 

	 	14.	Restrictions on Sale of Securities. The Shares issued as payment for vested Restricted Stock Units will be registered under the U.S. federal securities laws and will be
freely tradable upon receipt. However, your subsequent sale of the Shares will be subject to any market blackout-period that may be imposed by Sun and must comply with Sun’s insider trading policies, and any other applicable securities or other
laws. 

  

	 	15.	Delay in Payment. Notwithstanding any other part of this Agreement, any Restricted Stock Unit otherwise payable to you pursuant to this Agreement will not be paid during the
six-month period following your termination of employment unless Sun determines, in its good faith judgment, that the payment would not cause you to incur an additional tax under Section 409A of the Code and any temporary or final Treasury
Regulations and Internal Revenue Service guidance thereunder (“Section 409A”). If the payment of any amounts are delayed as a result of the previous sentence, any Restricted Stock Unit otherwise payable to you during the six
(6) months following your termination will accrue during such six-month period and will become payable in Shares on the date six (6) months and one (1) day following the date of your termination. 

  

	 	16.	Binding Agreement. Subject to the limitation on the transferability of this grant contained herein, this Agreement will be binding upon and inure to the benefit of the heirs,
legatees, legal representatives, successors and assigns of the parties hereto. 

  

	 	17.	Conditions for Issuance of Certificates for Stock. Any Shares deliverable to you may be either previously authorized but unissued Shares or issued Shares which have been
reacquired by Sun. Sun will not be required to issue any certificate or certificates for Shares hereunder prior to fulfillment of all the following conditions: (a) the admission of the Shares to listing on all stock exchanges on which the stock
is listed; and (b) the completion of any registration or other qualification of the Shares under any U.S. state or federal law or under the rulings or regulations of the Securities and Exchange Commission or any other governmental regulatory
body, which the Committee shall, in its absolute discretion, deem necessary or advisable; and (c) the obtaining of any approval or other clearance from any U.S. state or federal governmental agency or any other governmental regulatory body,
which the Committee shall, in its absolute discretion, determine to be necessary or advisable; and (d) the lapse of a reasonable period of time following the date of vesting or other scheduled payout of the Restricted Stock Units as the
Committee may establish from time to time for reasons of administrative convenience. 

  

	 	18.	Plan Governs. This Agreement is subject to all terms and provisions of the Plan. In the event of a conflict between this Agreement and the Plan, the Plan will govern.
Capitalized terms used and not defined in this Agreement will have the meaning set forth in the Plan. 

  

	 	19.	Committee Authority. The Committee will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application
of the Plan as are consistent therewith and to interpret or revoke any rules (including, but not limited to, the determination of whether or not any Restricted Stock Units have vested). All actions taken and all interpretations and determinations
made by the 

 Committee will be final and binding upon you, Sun and all other persons. The Committee will not be
personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this Agreement. 
  

	 	20.	Data Privacy. By accepting this Restricted Stock Unit award or any Shares in payment thereof, you explicitly and unambiguously consent to the collection, use and transfer,
in electronic or other form, of your personal data as described in this document by and among, as applicable, the Employer, Sun and its Subsidiaries and affiliates for the exclusive purpose of implementing, administering and managing your
participation in the Plan. For the purpose of implementing, administering and managing the Plan, you understand that Sun and the Employer hold certain personal information about you, including, but not limited to, your name, home address and
telephone number, date of birth, Tax ID or other identification number, salary, nationality, job title, any Shares or directorships held in Sun, details of all Restricted Stock Units or any entitlement to Shares awarded, canceled, exercised, vested,
unvested or outstanding in your favor, for the purpose of implementing, administering and managing the Plan (“Data”). You understand that Data may be transferred to any third parties assisting in the implementation, administration and
management of the Plan, that these recipients may be located in your country or elsewhere. Sun, as a global company, may transfer your personal data to countries which may not provide an adequate level of protection. Sun, however, is committed to
providing a suitable and consistent level of protection for your personal data regardless of the country in which it resides. You understand that you may request information regarding Sun’s stock plan administration by contacting Global Stock
Plan Services. You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan, including any requisite
transfer of such Data as may be required to a broker or other third party with whom you deposit any Shares issued at vesting or other scheduled payout. You understand that Data will be held as long as is necessary to implement, administer and manage
the Plan. You understand that you may, at any time, view Data, request additional information about the storage and processing of Data, require any necessary amendments to Data or refuse or withdraw the consents herein, in any case without cost, by
contacting in writing Global Stock Plan Services. You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of your refusal to consent or
withdrawal of consent, you understand that you may contact Global Stock Plan Services. 

  

	 	21.	Country-Specific Terms. Appendix B of this Agreement contains additional terms that apply to employees in certain countries. You should review Appendix B to determine any
additional terms that will apply to your grant of Restricted Stock Units. 

  

	 	22.	Captions. Captions used in this Agreement are for convenience only and are not to serve as a basis for interpretation or construction of this Agreement.

  

	 	23.	Agreement Severable. In the event that any provision in this Agreement is held invalid or unenforceable, the provision will be severable from, and the invalidity or
unenforceability will not be construed to have any effect on, the remaining provisions of this Agreement. 

	 	24.	Entire Agreement. This Agreement constitutes the entire understanding of the parties on the subjects covered. You expressly warrant that you are not executing this Agreement
in reliance on any promises, representations, or inducements other than those contained in the Agreement. 

  

	 	25.	Modifications to the Agreement. Modifications to this Agreement or the Plan can be made only in an express written contract executed by a duly authorized officer of Sun.
Notwithstanding anything to the contrary in the Plan or this Agreement, Sun reserves the right to revise this Agreement as it deems necessary or advisable, in its sole discretion and without your consent, to comply with Section 409A or to
otherwise avoid imposition of any additional tax or income recognition under Section 409A prior to the actual payment of Shares pursuant to this award of Restricted Stock Units. 

  

	 	26.	Amendment, Suspension or Termination of the Plan. By accepting this award, you expressly warrant that you have received a right to purchase stock under the Plan, and has
received, read and understood a description of the Plan. You understand that the Plan is discretionary in nature and may be modified, suspended or terminated by Sun at any time. 

  

	 	27.	Electronic Delivery. Sun may, in its sole discretion, decide to deliver any documents related to the grant of Restricted Stock Units and participation in the Plan or future
restricted stock units that may be granted under the Plan by electronic means or to request your consent to participate in the Plan by electronic means. You hereby consent to receive such documents by electronic delivery and, if requested, to agree
to participate in the Plan through an on-line or electronic system established and maintained by Sun or another third party designated by Sun. 

  

	 	28.	No Effect on Employment or Service. YOU FURTHER ACKNOWLEDGE THAT NOTHING IN THIS AGREEMENT CONSTITUTES A CONTRACT OF EMPLOYEMENT AND THAT YOU AND SUN, INCLUDING ITS
SUBSIDIARIES AND AFFILIATES, EACH RESERVES THE RIGHT TO TERMINATE THE EMPLOYMENT RELATIONSHIP AT ANY TIME AND FOR ANY REASON, WITH OR WITHOUT CAUSE AND WITH OR WITHOUT NOTICE, WHEREVER ALLOWED BY LOCAL LAWS. 

  

	 	29.	Notice of Governing Law. This grant of Restricted Stock Units is governed by, and will be construed in accordance with, the laws of the State of Delaware without regard to
principles of conflict of laws. For purposes of litigating any dispute that arises directly or indirectly from the relationship of the parties evidenced by this grant or the Agreement, the parties agree to submit to and consent to the exclusive
jurisdiction of the State of California and agree that such litigation will be conducted only in the courts of Santa Clara County, California, or the federal courts for the United States for the Northern District of California, and no other courts,
where this grant is made and/or to be performed. 

  

	 	30.	Solicitation of Employees. You agree that both while employed by Sun (including its subsidiaries and affiliates) and for twelve (12) months immediately following the
termination of employment with Sun, you shall not either directly or indirectly solicit, induce, recruit or encourage any of Sun’s employees to leave their employment either for yourself or for any other person or entity.

 APPENDIX B 
 SUN MICROSYSTEMS, INC. 
 RESTRICTED STOCK UNIT AGREEMENT 
 Special Provisions for Restricted Stock Units in Countries Outside the U.S. 
 This Exhibit includes special terms applicable to grantees in the countries below. These terms are in addition to those set forth in the Agreement.
Capitalized terms used but not defined herein will have the same meanings assigned to them in the Plan and the Agreement. 
 Please note that
the information below may relate to your exchange control obligations. Compliance with such obligations is your responsibility and neither Sun nor the Employer accepts any responsibility for such compliance. Also, exchange control regulations are
subject to change. As a result, you should consult with your advisor before sending/receiving funds to the U.S. or before selling Shares. 
 Argentina 
 The offering of the award of Restricted Stock Units and Shares issued at vesting are offered in a private
transaction. This offer is not subject to the supervision of Argentine governmental authorities. 
 The Restricted Stock Units and Shares are
being awarded by Sun on behalf of your local employer. The Restricted Stock Units do not accrue on a monthly basis and will not be granted on a regular or monthly basis. 
 Canada 
 Consent to Receive Information in English for Employees in Quebec. 
 The parties acknowledge that it is their express wish that the Agreement, as well as all documents, notices and legal proceeds entered into, given or
instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English. 
 Les parties reconnaissent avoir
exigé la rédaction en anglais de cette convenzion, ainsi que de tous documents exécutés, avis donnés et procédures judiciaries intentées, directement ou indirectement, relativement à ou suite
à la présents convenzion. 
 China 
 Please be advised of the following exchange control regulations that will apply when you sell Shares. 
 A PRC national is permitted to open foreign exchange accounts in China and to receive foreign exchange remitted from abroad or foreign exchange held in
China. There is no limit on the amount of foreign exchange that can be received and maintained in the foreign exchange accounts. However, difficulties may arise with the withdrawal and conversion of foreign currency from Chinese bank accounts. For
amounts between US$10,000 and US$50,000, you must produce documentation to the bank evidencing the source of the funds. If the amount exceeds US$50,000, local approval is required to withdraw and convert the currency. 
 Colombia 
 You may be required
to register any foreign investments you hold abroad, including Shares of Sun, with the Bank of the Republic if the value of such foreign investments exceeds the applicable threshold. 

 Pursuant to Article 128 of the Colombian Labor Code, the Plan and related benefits do not constitute a
component of “salary” for any legal purpose. 
 Denmark 
 If you make or receive overseas payments in excess of DKK250,000, you will be required to file a report with the Danish National Bank. This report is
required for statistical purposes only. In addition, if you establish an account holding cash or shares abroad, you must report the account to the Danish National Bank. 
 If the Danish Stock Option Act applies to your grant of Restricted Stock Units, your Restricted Stock Units will not be subject to Sun’s repurchase option upon involuntary termination of employment that is not in
breach of contract. 
 France 
 You may hold Shares acquired under the Plan outside France provided you declare all foreign accounts, whether open, current, or closed, in your income tax return. Furthermore, you must declare to the customs and
excise authorities any cash or securities you import or export without the use of a financial institution when the value of the cash or securities is equal to or exceeds €7,600. 
 Restricted Stock Units are being granted under a French tax-qualified plan. 
 Germany 
 Cross-border payments
in excess of €12,500 must be reported monthly. If you use a German bank to effect a cross-border payment in excess of €12,500 in connection with the sale or securities or the payment of dividends related to certain securities, the bank
will make the report. In this case, you will not have to report the transaction. In addition, you must report any receivables or payables or debts in foreign currency exceeding an amount of approximately €5,000,000 on a monthly basis. Finally,
you must report on an annual basis, Shares holding exceeding 10% of the total voting capital of Sun. 
 Hong Kong 

The contents of the Agreement have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the
offer. If you have any doubt about any of the contents of the Agreement, you should obtain independent professional advice. 
 India 
 Proceeds from the sale of Shares must be repatriated to India. You should obtain a foreign inward remittance
certificate from the bank for your records to document compliance with this requirement and submit a copy of the foreign inward remittance certificate to your employer. 
 By accepting this Restricted Stock Unit award, you acknowledge that you understand and agree that: (i) your decision to accept the award is voluntary; and (ii) an award granted under the Plan does not
constitute a customary right or privilege. 
 Ireland 
 Restricted Stock Units and Shares issued at vesting are offered in a private transaction and not as a public offering. Only newly issued Shares will be
used for the payment of Restricted Stock Units to directors of Sun. 
 Directors and shadow directors of an Irish subsidiary are subject to
certain notification requirements under the Companies Act. Directors and shadow directors must notify the Irish subsidiary in writing of their 

 interest in Sun and the number and class of Shares or rights to which the interest relates within five days of receipt or
knowledge of receipt of the Restricted Stock Units. Directors and shadow directors also must notify the Irish subsidiary within five days of payment of their Restricted Stock Units or of selling Shares acquired under the Plan. This disclosure
requirement also applies to any rights or Shares acquired by director’s spouse or children (under the age of 18). 
 Korea

 When the Shares acquired under the Plan are sold, if the proceeds exceed US$100,000, such proceeds must be repatriated to Korea within
six months. 
 Luxembourg 
 You are obligated to report any outward and inward remittance of funds to the Banque Central de Luxembourg and/or the Service Central de La Statisque et des Etudes Economiques (the “STATEC”). If a Luxembourg financial institution
is involved in the transaction, it will generally fulfill the reporting obligation on your behalf. If the transaction does not involve a Luxembourg financial institution, you will have to report the transaction (regardless of the amount remitted or
received) yourself to the STATEC on a specific form. The report has to be filed within 15 working days following the month during which the transaction occurred. 
 Netherlands 
 The Restricted Stock Unit award is being made to you as an incentive for you to
remain employed with your current Employer and is not remuneration for services rendered. 
 Russia 
 If Restricted Stock Units are granted to employees in Russia, the Restricted Stock Units will be paid to you in cash at vesting. You will receive the cash
equivalent of the fair market value of the Shares at vesting. You will not be entitled to receive any Shares pursuant to the grant of Restricted Stock Units. 
 When you receive cash at vesting, you may be required to repatriate the funds to Russia through an “F” type account opened at an authorized bank in Russia. After you remit the sale proceeds back to Russia,
you may transfer the funds to a foreign bank account subject to the following limitations: (1) the foreign account may be opened only for individuals; (2) the foreign account may not be used for business activities; (3) you must give
notice to the Russian tax authorities about the opening/closing of each foreign account within one month after the account opening/closing; and (4) you must notify the account balances on your foreign accounts as of the beginning of each
calendar year to the Russian tax authorities. There may be additional restrictions if you send/receive more than US$150,000 into/out of Russia within a calendar year. 
 Singapore 
 The offer is being made on a private basis and is, therefore, exempt from
registration in Singapore. 
 Directors of a Singapore subsidiary are subject to certain notification requirements under the Singapore
Companies Act Directors must notify the Singapore subsidiary in writing of an interest (e.g., Shares) in Sun or any related companies within two days of its acquisition or disposal. In addition, directors must notify the Singapore subsidiary
of any interest held in Sun or any related company within two days of becoming a director. 
 Thailand 
 Any proceeds received from the sale of Shares must be repatriated into Thailand, and they must be converted to Thai Baht within seven days of receipt. In
the event that the amount of the proceeds from the sale of Shares is US$20,000 or more (or its equivalent amount at market rate). You also are required to complete and submit a Foreign Exchange Transaction Form to the authorized agent to report the
inward remittance of the proceeds to Thailand. 

 United Kingdom 
 Restricted Stock Units may only be settled in Shares. 
 You must also agree to certain National Insurance Contribution (NIC) passthrough provisions in order to accept your grant. 
 Venezuela 
 This offering is personal, private, exclusive and non-transferable and is made to
you because you meet the eligibility requirements set forth in the Plan. 
 You agree that any modification of the Plan or its termination
will not constitute a change or impairment of the terms and conditions of your employment.

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