Document:

DC426.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
EXECUTION COPY

	 	
Registration Rights Agreement

Dated as of January 26, 2007

	
By and among

Sun Microsystems, Inc.

	
and

KKR PEI Solar Holdings I, Ltd. KKR PEI Solar Holdings II, Ltd.

Citibank, N.A.

	
REGISTRATION RIGHTS AGREEMENT

     This Registration Rights Agreement (the “Agreement”) is made and entered into this 26th day of January, 2007, among Sun Microsystems, Inc., a Delaware corporation (the “Company”), and the purchasers named on Exhibit A of
the Purchase Agreement (as defined below) (collectively, the “Purchasers”).

     This Agreement is made pursuant to the Note Purchase Agreement, dated January 23, 2007, among the Company, the Purchasers, Sponsor solely for purposes of Articles 1 and 9 and Sections 5.5, 5.6 and 7.1
thereto and KKR PEI Investments, L.P. solely for purposes of Section 4.6 thereto (the “Purchase Agreement”), which provides for the sale by the Company to the Purchasers of (i)
$350,000,000 aggregate principal amount of the Company’s 0.625% Convertible Senior Notes due 2012 (the “2012 Notes”) and (ii) $350,000,000 aggregate principal amount
of the Company’s 0.750% Convertible Senior Notes due 2014 (the “2014 Notes,” and together with the 2012 Notes, the “Notes”). The Notes together with the shares of Common Stock (as defined below) into which the Notes are convertible are referred to herein as the “Securities.” In
order to induce the Purchasers to enter into the Purchase Agreement, the Company has agreed to provide the registration rights set forth in this Agreement. The execution of this Agreement is a condition to the closing under the Purchase
Agreement.

In consideration of the foregoing, the parties hereto agree as follows:

	 	
1. Definitions.

     As used in this Agreement, the following capitalized defined terms shall have the following meanings:

“1933 Act” shall mean the Securities Act of 1933, as amended.

“1934 Act” shall mean the Securities Exchange Act of l934, as amended. “1939 Act” shall mean
the Trust Indenture Act of 1939, as amended. “Additional Interest” shall have the meaning set forth in Section 2.4. “Affiliate” shall have the meaning given to it in the
Indentures.

     “Automatic Shelf Registration Statement” shall have the meaning set forth in Rule 405 of the 1933 Act.

	 	
“Bank Purchaser” means Citibank, N.A.

“Beneficially Own” or “Beneficial Ownership” shall have the meaning set forth in Rule
13d-

3 of the rules and regulations promulgated under the Exchange Act, except that for purposes of this 

Agreement the words “within sixty days” in Rule 13d-3(d)(1)(i) shall not apply, to the effect that a Person shall be deemed to be the beneficial owner of a security if that Person has the right to acquire beneficial
ownership of such security at any time, provided that for the avoidance of doubt, a Bank Purchaser shall be deemed to Beneficially Own Securities over which such Bank Purchaser is exercising its rights under Section 7 of the Security
Agreement.

     “Business Day” shall mean any calendar day on which the New York Stock Exchange, the NASDAQ Stock Market and the Securities and
Exchange Commission are open for trading or business, as the case may be.

“Closing Date” shall have the meaning given to it in the Purchase Agreement.

     “Common Stock” shall mean any shares of common stock, $0.00067 par value, of the Company and any other shares of common stock
as may constitute “Common Stock” for purposes of the Indentures.

     “Company” shall have the meaning set forth in the preamble and shall also include the Company’s successors.

     “Depositary” shall mean The Depository Trust Company and its successors or assigns, or any other depositary appointed by the
Company, provided, however, that such appointed depositary must have an address in the Borough of Manhattan, in the City of New York, unless no such depositary is available.

“Effectiveness Period” shall have the meaning set forth in Section (b).

“Free Writing Prospectus” shall have the meaning set forth in Rule 405 of the 1933 Act.

     “Holder” shall mean any Purchaser, for so long as it owns any Registrable Securities, and each of its successors, assigns and
direct and indirect transferees who become registered owners of Registrable Securities under the Indentures.

     “Indentures” shall mean, collectively, the Indenture relating to the 2012 Notes, dated as of the date hereof, between the Company
and U.S. Bank National Association, as Trustee, as the same may be amended, supplemented, waived or otherwise modified from time to time in accordance with the terms thereof, and the Indenture relating to the 2014 Notes, dated as of the date hereof,
between the Company and U.S. Bank National Association, as Trustee, as the same may be amended, supplemented, waived or otherwise modified from time to time in accordance with the terms thereof.

     “Initial Purchaser” shall mean an initial purchaser or placement agent in connection with the offer or sale of Securities pursuant
to a Sponsor Supported Distribution effected under Rule 144A under the Exchange Act.

“Issuer Free Writing Prospectus” shall have the meaning set forth in Rule 433 of the 1933

	
Act.

     “Majority Holders” shall mean Holders holding over 50% of the aggregate principal amount of the outstanding Notes constituting
Registrable Securities outstanding; provided, that, for the purpose of this definition, a holder of shares of Common Stock into which the Notes were converted shall be deemed to hold an
aggregate principal amount of the Notes (in addition to the principal amount of Notes held by such holder) equal to the product of (A) the quotient of (x) the number of such shares of Common Stock held by such holder and (y) the conversion rate (as
expressed in the number of shares of Common Stock issuable per $1,000 principal amount of the Notes) in effect at the time of the conversion of the Notes into such shares of Common Stock as determined in accordance with the Indenture and (B)
$1,000, provided further, that whenever the consent or approval of the Majority Holders or of a specified percentage of the Holders of Registrable Securities is required hereunder,
Notes, or Common Stock into which the Notes were converted, held by the Company or any Affiliate of the Company (other than the Sponsor or its Affiliates to the extent they are deemed to be “Affiliates” of the Company at such time) shall
be disregarded in determining whether such consent or approval was given by the Majority Holders or such specified percentage of the Holders of Registrable Securities.

     “Permitted Transfer” shall have the meaning given such term in Section 7.1(a) of the Purchase Agreement.

     “Person” shall mean an individual, partnership (general or limited), corporation, limited liability company, trust, unincorporated
organization or other entity, or a government or agency or political subdivision thereof.

     “Prospectus” shall mean the prospectus relating to the Securities included in a Shelf Registration Statement, including any
preliminary prospectus, and any such prospectus as amended or supplemented by any prospectus supplement, including any such prospectus supplement with respect to the terms of the offering of any portion of the Registrable Securities covered by a
Shelf Registration Statement, and by all other amendments and supplements to a prospectus, including post-effective amendments, and in each case including all materials incorporated by reference therein.

“Purchase Agreement” shall have the meaning set forth in the preamble.

“Purchasers” shall have the meaning set forth in the preamble.

     “Registrable Securities” shall mean all or any of the Securities; provided, however, that such Securities shall cease to be Registrable Securities when (i) a Shelf Registration Statement with respect to such Securities shall have become effective under the 1933 Act and such Securities shall have been sold or
transferred pursuant to such Shelf Registration Statement, (ii) such Securities have been transferred in compliance with Rule 144 under the 1933 Act (or any successor provision thereto), or are transferable pursuant to paragraph (k) of such Rule 144
(or any successor provision thereto) or (iii) such Securities shall have ceased to be outstanding.

“Registration Default” shall have the meaning set forth in Section 2.4.

     “Registration or Offering Expenses” shall mean any and all expenses incident to performance of or compliance by the Company with
this Agreement, including without limitation: (i) all SEC registration and filing fees, (ii) in the case of a Sponsor Supported Distribution for the benefit of the Purchasers, all reasonable fees and expenses incurred in connection with compliance
with state securities or blue sky laws (including reasonable fees and disbursements of counsel for any Underwriters, Initial Purchasers or Holders in connection with blue sky qualification of any of the Registrable Securities), (iii) all expenses of
the Company in preparing or assisting in preparing, word processing, printing and distributing any Shelf Registration Statement and any Prospectus, and, in the case of a Sponsor Supported Distribution, any offering or information memorandum, any
amendments or supplements thereto, any securities sales agreements and any other documents relating to the performance of and compliance with this Agreement, (iv) all fees and expenses incurred in connection with the listing, if any, of any of the
Registrable Securities on any securities exchange or exchanges, (v) all rating agency fees, if any (vi) the fees and disbursements of counsel for the Company and of the independent public accountants of the Company, including, in the case of a
Sponsor Supported Distribution, the expenses of any “comfort letters”), (vii) the reasonable fees and expenses of the Trustee, and any escrow agent or custodian, and (viii) the reasonable fees and expenses of a single counsel to the
Holders in connection with the Shelf Registration Statement (not to exceed in the aggregate $10,000) and in connection with a Sponsor Supported Distribution (not to exceed in the aggregate $50,000 for each Sponsor Supported Distribution),
which counsel shall be selected by the Majority Holders, but excluding any underwriting discounts and commissions and transfer taxes, if any, relating to the sale or disposition of Registrable Securities by a Holder and, except as provided under
clause (viii) above, all expenses and fees for all counsel and other professionals representing the Holders.

“Rule 144A” means Rule 144A under the 1933 Act.

     “SEC” shall mean the Securities and Exchange Commission or any successor agency or government body performing the functions
currently performed by the United States Securities and Exchange Commission.

“Securities” shall have the meaning set forth in the preamble.

“Security Agreement” shall have the meaning given such term in the Purchase Agreement.

“Shelf Effectiveness Deadline” shall have the meaning set forth in Section (a).

“Shelf Registration” shall mean a registration effected pursuant to Section 2.1.

     “Shelf Registration Statement” shall mean a “shelf” registration statement of the Company pursuant to the provisions of
Section 2.1 of this Agreement which covers all of the Registrable Securities on an appropriate form under Rule 415 under the 1933 Act, or any similar rule that may be adopted by the SEC, and all amendments and supplements to such registration
statement, including post-effective amendments, in each case including the Prospectus contained therein, all exhibits thereto and all materials incorporated by reference therein; provided, however, that a 

registration statement shall not be deemed a Shelf Registration Statement until such time as it includes a Prospectus relating to the Securities.

“Sponsor” shall mean Kohlberg Kravis & Roberts & Co. L.P.

     “Sponsor Purchasers” shall mean the Purchasers other than the Bank Purchaser and their Affiliates that acquire Beneficial Ownership
of Securities in a Permitted Transfer.

     “Sponsor Supported Distribution” means a distribution of Notes that are Registrable Securities in connection with which Purchasers
have utilized their rights for cooperation from the Company under Section 5 of this Agreement.

“Swap Default” shall have the meaning given such term in the Purchase Agreement.

     “Substantial Distribution” shall mean an offer and sale of an aggregate of at least $175 million principal amount of Securities
that are Registrable Securities by one or more of the Sponsor Purchasers or Bank Purchaser to purchasers that are not Affiliates of the Company, where such offer and sale is made pursuant to either Rule 144A or pursuant to a bona fide public
offering made pursuant to the Shelf Registration Statement. 

“Suspension Period” shall have the meaning set forth in Section 2.5.

“Trustee” shall mean the trustee with respect to the Securities under the Indentures.

“Well-Known Seasoned Issuer” shall have the meaning set forth in Rule 405 of the 1933 Act.

     “Underwriter” shall mean an underwriter, as defined in the 1933 Act, of the Securities in connection with an offering thereof under
a Shelf Registration Statement pursuant to and in accordance with a Sponsor Supported Distribution.

	
2.      		
Registration Under the 1933 Act.	
	 
	 	
2.1      		
Shelf Registration.	
	 
	 	 	
(a) The Company shall, at its cost, file with the SEC, and use its	
	 

reasonable efforts to cause to become effective, a Shelf Registration Statement relating to the offer and sale of the Registrable Securities by the Holders that have provided the Questionnaire and the other information pursuant to
Section (c), no later than 120 days after the Closing Date (the “Shelf Effectiveness Deadline”). If the Company is a Well-Known Seasoned Issuer at the time of filing the Shelf
Registration Statement with the SEC, such Shelf Registration Statement shall be designated by the Company as an Automatic Shelf Registration Statement.

     (b) The Company shall, at its cost, use its reasonable efforts, subject to Section 2.5, to keep the Shelf Registration Statement continuously effective in order to permit the Prospectus forming part
thereof to be usable by Holders until the earlier of (i) such time as all of the 

Securities cease to be Registrable Securities and (ii) the date that is seven years and three months after the date hereof (the “Effectiveness Period”).

     (c) Notwithstanding any other provision hereof, no Holder of Registrable Securities may include any of its Registrable Securities in the Shelf Registration Statement pursuant to this Agreement unless
the Holder furnishes to the Company a fully completed notice and questionnaire in the form attached hereto as Exhibit A (the “Questionnaire”) and such other information in writing
as the Company may reasonably request in writing for use in connection with the Shelf Registration Statement or Prospectus included therein and in any application to be filed with or under state securities laws. At least 30 days prior to the filing
of the Shelf Registration Statement, the Company will provide notice to the Holders of its intention to file the Shelf Registration Statement; provided, however, that if the Company elects
to register the Registrable Securities pursuant to a Prospectus to a Shelf Registration Statement that has already been declared effective, the Company will provide notice to the Holders of its intention to file the initial Prospectus at least 30
days prior to such filing. In order to be named as a selling securityholder in the Shelf Registration Statement or Prospectus at the time of effectiveness of the Shelf Registration Statement or such Prospectus, as applicable, each Holder must no
later than 20 days following notice by the Company of such filing, furnish in writing the completed Questionnaire and such other information that the Company may reasonably request in writing, if any, to the Company and the Company will include the
information from the completed Questionnaire and such other information, if any, in the Shelf Registration Statement and the Prospectus, as necessary and in a manner, so that upon effectiveness of the Shelf Registration Statement the Holder will be
permitted to deliver the Prospectus to purchasers of the Holder’s Registrable Securities. From and after the date that the Shelf Registration Statement becomes effective, upon receipt of a completed Questionnaire and such other information that
the Company may reasonably request in writing, if any, the Company will use its reasonable efforts to file any amendments or supplements to the Shelf Registration Statement necessary for such Holder to be named as a selling securityholder in the
Prospectus contained therein to permit such Holder to deliver the Prospectus to purchasers of the Holder’s Securities (subject to the Company’s right to suspend the Shelf Registration Statement as described in Section 2.5 below);
provided, however, that from and after the beginning of the calendar quarter first commencing after the nine month anniversary of
the Closing Date, the Company shall not be required to file an amendment or supplement to add Holders for such purpose except (x) in connection with a Sponsor Supported Distribution and (y) on no more than one other occasion per calendar quarter.
Holders that do not deliver a completed written Questionnaire and such other information, as provided for in this Section (c), will not be named as selling securityholders in the Prospectus. Each Holder named as a selling securityholder in the
Prospectus agrees to promptly furnish to the Company in writing all information required to be disclosed in order to make information previously furnished to the Company by the Holder not materially misleading and any other information regarding
such Holder and the distribution of such Holder’s Registrable Securities as the Company may from time to time reasonably request in writing.

     (d) Each Holder agrees that if such Holder wishes to sell Registrable Securities pursuant to a Shelf Registration Statement and related Prospectus it will do so only in accordance with Section (c) and
subject to Section 2.5. Each Holder agrees not to sell any 

Registrable Securities pursuant to the Shelf Registration Statement without delivering, or causing to be delivered, a Prospectus (excluding those materials incorporated by reference therein) to the purchaser thereof and, following
termination of the Effectiveness Period, to notify the Company, within ten days of a written request by the Company, of the amount of Registrable Securities sold pursuant to the Shelf Registration Statement and, in the absence of a response within
such period, the Company may assume that all of such Holder’s Registrable Securities have been so sold.

     (e) The Company agrees that, in the context of a registered Sponsor Supported Distribution and only for the period of 30 days from the earlier of the public announcement or commencement of marketing
efforts with respect to such Sponsor Supported Distribution, unless it obtains the prior consent of the managing Underwriter (which consent shall not be unreasonably withheld or delayed), and each Holder agrees that, unless it obtains the prior
written consent of the Company, it will not make any offer relating to the Securities that would constitute an Issuer Free Writing Prospectus, or that would otherwise constitute a Free Writing Prospectus required to be filed with the SEC. The
Company represents that any Issuer Free Writing Prospectus prepared by it or authorized by it in writing for use by such Holder will be delivered to each such Holder and will not include any information that conflicts with the information contained
in the Shelf Registration Statement or the Prospectus and, any such Issuer Free Writing Prospectus, when taken together with the information in the Shelf Registration Statement and the Prospectus, will not include any untrue statement of a material
fact or omit to state any material fact necessary in order to make the statements therein, in light of the circumstances under which they were made, not misleading.

     The Company agrees to supplement or amend the Shelf Registration Statement if required by the 1933 Act or the rules and regulations thereunder or by the instructions applicable to the registration
form used by the Company, or to the extent the Company does not reasonably object, as reasonably requested by the Purchasers with respect to information relating to such Purchasers or by the Trustee on behalf of the Holders covered by such Shelf
Registration Statement with respect to information relating to such Holders, and to furnish to the Holders of Registrable Securities copies of any such supplement or amendment promptly after it is used or filed with the SEC.

     2.2 Expenses. The Company shall pay all Registration and Offering Expenses in connection with the registration pursuant to Section 2.1 and,
without duplication, in connection with a Sponsor Supported Distribution pursuant to Section 5. Each Holder shall pay all underwriting and placement discounts and commissions, agency and placement fees, brokers commissions and transfer taxes, if
any, relating to the sale or disposition of such Holder’s Registrable Securities.

     2.3 Effectiveness. After a Shelf Registration Statement is effective, if the offering of Registrable Securities pursuant to a Shelf
Registration Statement is interfered with by any stop order, injunction or other order or requirement of the SEC or any other governmental agency or court, such Shelf Registration Statement will be deemed not to have been effective during the period
of such interference, until the offering of Registrable Securities pursuant to such Shelf Registration Statement may legally resume.

     2.4 Interest. In the event that (a) a Shelf Registration Statement has not become effective by the Shelf Effectiveness Deadline, (b) after
the Shelf Registration Statement has become effective, subject to Section 2.5, the Shelf Registration Statement fails to be effective or usable by the Holders (determined as if there were no trading restrictions which the Sponsor Purchasers and
their Affiliates are subject to under Section 7.1 of the Purchase Agreement at such time) without being succeeded within seven business days by a post-effective amendment or a report filed with the SEC pursuant to the 1934 Act that cures the failure
to be effective or usable or (c) the Shelf Registration Statement is unusable by the Holders for any reason (determined as if there were no trading restrictions which the Sponsor Purchasers and their Affiliates are subject to under Section 7.1 of
the Purchase Agreement at such time), and the number of days for which the Shelf Registration Statement shall not be usable (determined as if there were no trading restrictions which the Sponsor Purchasers and their Affiliates are subject to under
Section 7.1 of the Purchase Agreement at such time) exceeds any Suspension Period permitted by Section 2.5 hereunder (each such event being a “Registration Default”), additional
interest (“Additional Interest”), will accrue on the Notes that are Registrable Securities at a rate per annum of 0.25% of the principal amount of the Notes that are Registrable
Securities, payable periodically on February 1 and August 1 each year; provided, however, that, in no event shall Additional
Interest accrue at a rate per annum exceeding 0.25% of the principal amount of the Notes that are Registrable Securities; provided further that no Additional Interest shall accrue under
clauses (b) and (c) above with respect to any Holder that (x) does not deliver to the Company a completed Questionnaire and such other information that the Company may reasonably request, if any, as provided for in Section (c), and (y) is not named
as a selling securityholder in the Shelf Registration Statement. Notwithstanding the foregoing, in no event will Additional Interest be payable in connection with a Registration Default relating to a failure to register the Common Stock into which
the Notes are convertible; for the avoidance of doubt, if none of the Securities are registered then Additional Interest only will be payable in connection with the Registration Default relating to the failure to register the Notes. Upon the cure of
all Registration Defaults then continuing, the accrual of Additional Interest will automatically cease and the interest rate borne by the Notes will revert to the original interest rate at such time. Additional Interest shall be computed based on
the actual number of days elapsed in each six-month period between payment dates in which the Shelf Registration Statement is not effective or is unusable. Holders who have converted Notes into Common Stock will not be entitled to receive any
Additional Interest with respect to such Common Stock or the principal amount of the Notes converted.

     The Trustee shall be entitled, but shall not be obligated, on behalf of the Holders of Registrable Securities, to seek any available remedy for the enforcement of this Agreement, including for the
payment of any Additional Interest. Notwithstanding the foregoing, the parties agree that the sole monetary damages payable for a violation of the terms of this Agreement with respect to which Additional Interest are expressly provided shall be such
Additional Interest. Nothing shall preclude a Holder of Registrable Securities from pursuing or obtaining specific performance or equitable relief with regard to this Agreement. Each obligation to pay Additional Interest shall be deemed to accrue
from and including the day following the Registration Default to but excluding the day on which the Registration Default is cured.

     A Registration Default under clause (a) above shall be cured on the date that the Shelf Registration Statement becomes effective. A Registration Default under clauses (b) or (c) above shall be cured
on the date an amended Shelf Registration Statement becomes effective or the Company otherwise declares the Shelf Registration Statement and the Prospectus useable, as applicable.

     The parties agree that the Additional Interest provided for in this Section 2.4 constitutes a reasonable estimate of the damages that may be incurred by Holders of Registrable Securities and does not
constitute a penalty.

     2.5 Suspension. Notwithstanding any other provision hereof, the Company may suspend the use of any Prospectus, without incurring or accruing
any obligation to pay Additional Interest pursuant to Section 2.4, for a period not to exceed 90 consecutive calendar days or an aggregate of 120 calendar days in any twelve-month period, as such period may be reduced pursuant to Section 5(b) hereof
(each, a “Suspension Period”), if the Company shall have determined in good faith that because of valid business reasons (not including avoidance of the Company’s obligations
hereunder), including without limitation plans for a registered public offering, an acquisition or other proposed or pending corporate developments and similar events or because of filings with the SEC, it is in the best interests of the Company to
suspend such use, and prior to suspending such use the Company provides the Holders with written notice of such suspension, which notice need not specify the nature of the event giving rise to such suspension (and, upon receipt of such notice, each
Holder agrees not to sell any Registrable Securities pursuant to the Shelf Registration Statement until such Holder is advised in writing that the Prospectus may be used, which notice the Company agrees to provide promptly following the lapse of the
event or circumstances giving rise to such suspension). Each Holder shall keep confidential any communications received by it from the Company regarding the suspension of the use of the Prospectus (including, without limitation, the fact of the
suspension), except as required by applicable law.

	 	
3. Registration Procedures.

     In connection with the obligations of the Company with respect to the Shelf Registration, the Company shall:

     (a) at a reasonable time prior to filing the Shelf Registration Statement, any Prospectus forming a part thereof, any amendment to the Shelf Registration Statement or amendment or supplement to such
Prospectus (other than amendments and supplements that do nothing more than name Holders and provide information with respect thereto), furnish to the Purchasers or any Underwriter or designee thereof and one special counsel to the Purchasers or any
Underwriter or designee thereof copies of all such documents proposed to be filed and use its reasonable efforts to address in each such document when so filed with the SEC such comments as the Purchasers or any Underwriter or designee thereof and
such special counsel to the Purchasers or any Underwriter or designee thereof reasonably shall propose within three (3) Business Days of the delivery of such copies to the Purchasers or any Underwriter or designee thereof and counsel to the
Purchaser or any Underwriter or designee thereof. In addition, if any Holder that has provided the Questionnaire and the other information required by Section (c) shall so request in writing, a 

reasonable time prior to filing any such documents, the Company shall furnish to such Holder copies of all such documents proposed to be filed and use its reasonable efforts to reflect in each such document when so filed with the
SEC such comments as such Holder reasonably shall propose within three (3) Business Days of the delivery of such copies to such Holder;

     (b) prepare and file with the SEC such amendments and post-effective amendments to the Shelf Registration Statement as may be necessary under applicable law to keep the Shelf Registration Statement
effective for the Effectiveness Period, subject to Section 2.5; and cause each Prospectus to be supplemented by any required prospectus supplement, and as so supplemented to be filed in compliance with Rule 424 (or any similar provision then in
force) under the 1933 Act and use reasonable efforts to comply during the Effectiveness Period with the provisions of the 1933 Act, the 1934 Act and the rules and regulations thereunder required to enable the disposition of all Registrable
Securities covered by the Shelf Registration Statement in accordance with the intended method or methods of distribution (as provided to the Company in the Questionnaires) by the selling Holders thereof;

     (c) (i) notify each Holder of Registrable Securities of the filing of a Shelf Registration Statement or any post-effective amendment to a Shelf Registration Statement and of when any such Shelf
Registration Statement or any post-effective amendment to a Shelf Registration Statement has become effective; (ii) during the Effectiveness Period, furnish to each Holder of Registrable Securities that has provided the Questionnaires and the
information required by Section (c) and to each Underwriter, if any, without charge, as many copies of each Prospectus, including each preliminary Prospectus, and any amendment or supplement thereto and such other documents as such Holder or
Underwriter may reasonably request in writing, including financial statements and schedules and, if such Holder or Underwriter so requests, all exhibits thereto in connection with the sale or other disposition of the Registrable Securities; and
(iii) subject to Section 2.5 and to any notice by the Company in accordance with Section (e) of the existence of any fact of the kind described in Sections (e)(i), (ii), (iii), (iv) and (v), hereby consent to the use of the Prospectus or any
amendment or supplement thereto by each of the selling Holders and Underwriters of Registrable Securities that has provided the Questionnaire and the other information required by Section (c) in connection with the offering and sale of the
Registrable Securities covered by such Prospectus or any amendment or supplement thereto in the manner set forth therein;

     (d) use reasonable efforts to register or qualify or cooperate with the Holders and Underwriters in connection with the registration or qualification (or exemption from such registration or
qualification) of the Registrable Securities under all applicable state securities or “blue sky” laws of such jurisdictions as any Holder of Registrable Securities covered by a Shelf Registration Statement and each Underwriter shall
reasonably request in writing, and do any and all other acts and things which may be reasonably necessary or advisable to enable each such Holder and Underwriter to consummate the disposition in each such jurisdiction of such Registrable Securities
owned by such Holder; provided, however, that the Company shall not be required to (i) qualify as a foreign corporation or as a dealer in securities in any jurisdiction where it would not
otherwise be required to qualify but for this Section (d), or (ii) take any action which would subject it to general service of process or taxation in any such jurisdiction where it is not then so subject;

     (e) notify as promptly as reasonably practicable each Holder of Registrable Securities under a Shelf Registration that has provided the Questionnaire and the other information required by Section (c)
and, if requested by such Holder, confirm such advice in writing promptly (i) of any request, following the effectiveness of the Shelf Registration Statement under the 1933 Act, by the SEC or any state securities authority for post-effective
amendments and supplements to a Shelf Registration Statement and Prospectus or for additional information after the Shelf Registration Statement has become effective, (ii) of the issuance by the SEC or any state securities authority of any stop
order suspending the effectiveness of a Shelf Registration Statement or the initiation of any proceedings for that purpose, (iii) of the occurrence (but not the nature of or details concerning) of any event or the discovery of any facts during the
period a Shelf Registration Statement is effective which makes any statement made in such Shelf Registration Statement or the related Prospectus untrue in any material respect or which requires the making of any changes in such Shelf Registration
Statement or Prospectus in order to make the statements therein not misleading, (provided, however, that no notice by the Company
shall be required pursuant to this clause (iii) in the event that the Company either promptly files a Prospectus supplement to update the Prospectus or a Form 8-K or other appropriate 1934 Act report that is incorporated by reference into the Shelf
Registration Statement, which, in either case, contains the requisite information that results in such Shelf Registration Statement no longer containing any untrue statement of material fact or omitting to state a material fact necessary to make the
statements therein not misleading), (iv) of the receipt by the Company of any notification with respect to the suspension of the qualification of the Registrable Securities for sale in any jurisdiction or the initiation or threatening of any
proceeding for such purpose and (v) of any determination by the Company that a post-effective amendment to such Shelf Registration Statement would be required by applicable law; provided, however, that so long as all Registrable Securities are collectively held by the Sponsor Purchasers and/or the Bank Purchaser (in each case together with any Affiliate of such Sponsor Purchaser or Bank Purchaser), then, other than in the
context of a Sponsor Supported Distribution, the Company will not be required to notify such holders of any of the matters addressed in clauses (i), (iii) and (v) above during any time that the Sponsor Purchasers and their Affiliates may not
transfer any of the Registrable Securities as a result of the restrictions set forth in Section 7.1(c) of the Purchase Agreement; 

     (f) provided a Holder then holds at least $175 million aggregate principal amount of Registrable Securities, as promptly as reasonably practicable furnish to such Holder and any Underwriter or
designee thereof and one special counsel to the Sponsor Purchasers or, if after and during the continuance of a Swap Default, the Bank Purchaser, or any Underwriter or designee thereof on behalf of the Holders (i) copies of any comment letters
received from the SEC with respect to a Shelf Registration Statement or any documents incorporated therein and (ii) any other request by the SEC or any state securities authority for amendments or supplements to a Shelf Registration Statement and
Prospectus or for additional information with respect to the Shelf Registration Statement and Prospectus;

     (g) use reasonable efforts to obtain the withdrawal of any order suspending the effectiveness of a Shelf Registration Statement at the earliest practicable moment or, 

if any such order or suspension is made effective during any Suspension Period, at the earliest practicable moment after the Suspension Period;

     (h) upon the occurrence of any event or the discovery of any facts, each as contemplated by Sections (e)(i), (ii), (iii), (iv) and (v), as promptly as practicable after the occurrence of such an
event, use reasonable efforts to prepare a supplement or post-effective amendment to the Shelf Registration Statement or the related Prospectus or any document incorporated therein by reference or file any other required document so that, as
thereafter delivered to the purchasers of the Registrable Securities, such Prospectus will not contain at the time of such delivery any untrue statement of a material fact or omit to state a material fact necessary to make the statements therein, in
light of the circumstances under which they were made, not misleading; provided, however, that so long as all Registrable Securities are collectively held by the Sponsor Purchasers and/or
the Bank Purchaser (in each case together with any Affiliate of such Sponsor Purchaser or Bank Purchaser), then other than in the context of a Sponsor Supported Distribution, the Company will not be required to prepare or file any of the foregoing
during any time that the Sponsor Purchasers and their Affiliates may not transfer any of the Registrable Securities as a result of the restrictions set forth in Section 7.1(c) of the Purchase Agreement. Subject to the immediately preceding proviso,
at such time as such public disclosure is otherwise made or the Company determines that such disclosure is not necessary, in each case to correct any misstatement of a material fact or to include any omitted material fact, the Company agrees
promptly to notify each Holder that has provided the Questionnaire and the other information required by Section (c) of such determination and to furnish each Holder such number of copies of the Prospectus as amended or supplemented, as such Holder
may reasonably request;

     (i) (i) use reasonable efforts to cause the Indentures to be qualified under the 1939 Act in connection with the registration of the Registrable Securities, (ii) cooperate with the Trustee and the
Holders to effect such changes to the Indentures as may be required for the Indentures to be so qualified in accordance with the terms of the 1939 Act, and (iii) execute, and use reasonable efforts to cause the Trustee to execute, all documents as
may be required to effect such changes, and all other forms and documents required to be filed with the SEC to enable the Indentures to be so qualified in a timely manner;

     (j) use its commercially reasonable efforts to cause all Registrable Securities to be listed on any securities exchange or inter-dealer quotation system on which similar securities issued by the
Company are then listed;

     (k) make generally available to its security holders, as soon as reasonably practicable, earning statements covering at least 12 months (which need not be audited) satisfying the provisions of Section
11(a) of the 1933 Act and Rule 158 thereunder; and

     (l) make a reasonable effort to provide such information as is required for any filings required to be made with the National Association of Securities Dealers, Inc.

     Without limiting the provisions of Section (c), the Company may (as a condition to such Holder’s participation in the Shelf Registration) require each Holder of Registrable Securities to

furnish to the Company such information regarding the Holder and the proposed distribution by such Holder of such Registrable Securities as the Company may from time to time reasonably request in writing. Each Holder agrees
promptly to furnish to the Company in writing all information required to be disclosed in order to make the information previously furnished to the Company by such Holder not misleading, any other information regarding such Holder and the
distribution of such Registrable Securities as may be required to be disclosed in the Prospectus or Shelf Registration Statement under applicable law or pursuant to SEC comments and any information otherwise reasonably required by the Company to
comply with applicable law or regulations.

     Each Holder agrees that, upon receipt of any notice from the Company of the happening of any event or the discovery of any facts, each of the kind described in Section (e)(i), (ii), (iii), (iv) and
(v), such Holder will forthwith discontinue disposition of Registrable Securities pursuant to the Prospectus included in the Shelf Registration Statement until such Holder’s receipt of the copies of the supplemented or amended Prospectus
contemplated by Section (h) or written notice from the Company that the Shelf Registration Statement is again effective and no amendment or supplement is needed, and, if so directed by the Company, such Holder will deliver to the Company (at the
Company’s expense) all copies in such Holder’s possession, other than permanent file copies then in such Holder’s possession, of the Prospectus covering such Registrable Securities at the time of receipt of such notice.

     Notwithstanding anything in this Section 3 to the contrary, any and all obligations (including to provide documents, notices or cooperation) on the part of the Company for the benefit of any
Underwriter or Initial Purchaser, or any of their agents or counsel, shall apply only in the context of a Sponsor Supported Distribution.

	
4.      		
Indemnification; Contribution.	
	 
	 	
(a) Indemnification by the Company. The Company agrees to indemnify	
	 

and hold harmless each Purchaser, each Holder who provided the Questionnaire and the other information to the Company in accordance with Section (c), and each of their respective directors, officers and employees and agents and
each Person, if any, who controls such Purchaser or Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act (each of the foregoing is referred to herein as an “indemnified party”) (i) against any loss, claim,
damage, liability or expense, as incurred, to which such indemnified party may become subject, insofar as such loss, claim, damage, liability or expense (or actions in respect thereof as contemplated below) arises out of or is based upon (x) any
untrue statement or alleged untrue statement of a material fact contained in the Shelf Registration Statement (or any amendment or supplement thereto), including all documents incorporated therein by reference, or the omission or alleged omission
therefrom of a material fact, in each case, necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading, (y) any untrue statement or alleged untrue statement of a material fact
contained in any preliminary prospectus or the Prospectus (or any amendment or supplement thereto), including all documents incorporated therein by reference, or the omission or alleged omission therefrom of a material fact, in each case, necessary
in order to make the statements therein, in the light of the circumstances under which they were made, not misleading 

or (z) any untrue statement or alleged untrue statement of a material fact contained in any Issuer Free Writing Prospectus prepared by it or authorized by it in writing for use by such Holder (or any amendment or supplement
thereto), or the omission or alleged omission therefrom of a material fact, in each case, necessary in order to make the statements therein, in the light of the circumstances under which they were made, not misleading; (ii) against any and all loss,
liability, claim, damage and expense whatsoever, as incurred, to the extent of the aggregate amount paid in settlement of any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or of any claim
whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or omission; provided, that (subject to Section (d) below) any such settlement is effected
with the written consent of the Company; and (iii) against any and all reasonable out-of-pocket expense whatsoever, as incurred (including the reasonable fees and disbursements of counsel), reasonably incurred in investigating, preparing or
defending against any litigation, or any investigation or proceeding by any governmental agency or body, commenced or threatened, or any claim whatsoever based upon any such untrue statement or omission, or any such alleged untrue statement or
omission, to the extent that any such expense is not paid under subparagraph (i) or (ii) above; and to reimburse each indemnified party for any and all expenses (including the fees and disbursements of counsel chosen by the indemnified parties) as
such expenses are reasonably incurred by such indemnified party in connection with investigating, defending, settling, compromising or paying any such loss, claim, damage, liability, expense or action; provided,
however, that the foregoing indemnity agreement shall not apply to any loss, claim, damage, liability or expense to the extent, but only to the extent, arising out of or based upon any untrue statement or alleged untrue
statement or omission or alleged omission made in reliance upon and in conformity with written information furnished to the Company by any indemnified party expressly for use in the Shelf Registration Statement (or any amendment or supplement
thereto), any preliminary prospectus or the Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto). The indemnity agreement set forth in this Section (a) shall be in
addition to any liabilities that the Company may otherwise have.

     (b) Indemnification by the Holders. Each Holder who has provided the Questionnaire and the other information to the Company in accordance
with Section (c), severally, but not jointly, agrees to indemnify and hold harmless the Company, each Purchaser and the other selling Holders who have provided the Questionnaire and the other information to the Company in accordance with Section
(c), and each of their respective directors, officers, employees and agents and each Person, if any, who controls the Company, any Purchaser or any other selling Holder within the meaning of Section 15 of the 1933 Act or Section 20 of the 1934 Act,
against any and all loss, liability, claim, damage and expense described in the indemnity contained in Section (a), as incurred, but only with respect to untrue statements or omissions, or alleged untrue statements or omissions, made in the Shelf
Registration Statement (or any amendment thereto), any preliminary prospectus or the Prospectus included therein (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto) in reliance upon
and in conformity with written information with respect to such Holder furnished to the Company by or on behalf of such Holder expressly for use in the Shelf Registration Statement (or any amendment thereto), such preliminary prospectus or the
Prospectus (or any amendment or supplement thereto) or any Issuer Free Writing Prospectus (or any amendment or supplement thereto).

     (c) Notifications and Other Indemnification Procedures. Promptly after receipt by an indemnified party under this Section 4 of notice of the
commencement of any action, such indemnified party will, if a claim in respect thereof is to be made against an indemnifying party under this Section 4, notify the indemnifying party in writing of the commencement thereof, but the failure to so
notify the indemnifying party (1) will not relieve it from liability under paragraph (a), (b) or (c) above unless and to the extent it did not otherwise learn of such action and such failure results in the forfeiture by the indemnifying party of
substantial rights and defenses and (2) will not, in any event, relieve the indemnifying party from any obligations to any indemnified party other than the indemnification obligation provided in paragraph (a), (b) or (c) above. In case any such
action is brought against any indemnified party and such indemnified party seeks or intends to seek indemnity from an indemnifying party, the indemnifying party will be entitled to participate in, and, to the extent that it shall elect, jointly with
all other indemnifying parties similarly notified, by written notice delivered to the indemnified party promptly after receiving the aforesaid notice from such indemnified party, to assume the defense thereof with counsel reasonably satisfactory to
such indemnified party; provided, however, if the defendants in any such action include both the indemnified party and the indemnifying party and the indemnified party shall have reasonably
concluded that a conflict may arise between the positions of the indemnifying party and the indemnified party in conducting the defense of any such action or that there may be legal defenses available to it and/or other indemnified parties that are
different from or additional to those available to the indemnifying party, the indemnified party or parties shall have the right to select separate counsel to assume such legal defenses and to otherwise participate in the defense of such action on
behalf of such indemnified party or parties. Upon receipt of notice from the indemnifying party to such indemnified party of such indemnifying party’s election so to assume the defense of such action and approval by the indemnified party of
counsel, the indemnifying party will not be liable to such indemnified party under this Section 4 for any legal or other expenses subsequently incurred by such indemnified party in connection with the defense thereof unless (i) the indemnified party
shall have employed separate counsel in accordance with the proviso to the preceding sentence (it being understood, however, that the indemnifying party shall not be liable for the expenses of more than one separate counsel (other than local
counsel), reasonably approved by the indemnifying party, representing the indemnified parties who are parties to such action) or (ii) the indemnifying party shall not have employed counsel satisfactory to the indemnified party to represent the
indemnified party within a reasonable time after notice of commencement of the action, in each of which cases the fees and expenses of counsel shall be at the expense of the indemnifying party.

     (d) Settlements. The indemnifying party under this Section 4 shall not be liable for any settlement of any proceeding effected without its
written consent, which shall not be withheld unreasonably, but if settled with such consent or if there is a final judgment for the plaintiff, the indemnifying party agrees to indemnify the indemnified party against any loss, claim, damage,
liability or expense by reason of such settlement or judgment. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying party to reimburse the indemnified party for fees and expenses of counsel
as contemplated by Section (c) hereof, the indemnifying party agrees that it shall be liable for any settlement of any proceeding effected without its written consent if (i) such settlement is entered into more than 30 days after receipt by such
indemnifying party of the aforesaid request, (ii) such indemnifying party shall have 

received notice of the terms of such settlement at least 45 days prior to such settlement being entered into and (iii) such indemnifying party shall not have reimbursed the indemnified party in accordance with such request prior
to the date of such settlement. No indemnifying party shall, without the prior written consent of the indemnified party, effect any settlement, compromise or consent to the entry of judgment in any pending or threatened action, suit or proceeding in
respect of which any indemnified party is or could have been a party and indemnity was or could have been sought hereunder by such indemnified party, unless such settlement, compromise or consent (x) includes an unconditional release of such
indemnified party from all liability on claims that are the subject matter of such action, suit or proceeding and (y) does not include a statement as to or an admission of fault, culpability or a failure to act by or on behalf of any indemnified
party.

     (e) If the indemnification provided for in this Section 4 is for any reason unavailable to or insufficient to hold harmless an indemnified party in respect of any losses, liabilities, claims, damages
or expenses referred to therein, then each indemnifying party shall contribute to the aggregate amount of such losses, liabilities, claims, damages and expenses incurred by such indemnified party, as incurred, in such proportion as is appropriate to
reflect the relative fault of the Company on the one hand and the Holders on the other hand in connection with the statements or omissions which resulted in such losses, liabilities, claims, damages or expenses, as well as any other relevant
equitable considerations.

     The relative fault of the indemnifying parties on the one hand and the indemnified parties and the Purchasers on the other hand shall be determined by reference to, among other things, whether any
such untrue or alleged untrue statement of a material fact or omission or alleged omission to state a material fact relates to information supplied by the Company, or by the Holders and the parties’ relative intent, knowledge, access to
information and opportunity to correct or prevent such statement or omission.

     The Company and the Holders agree that it would not be just and equitable if contribution pursuant to this Section 4 were determined by pro rata allocation or by any other method of allocation which
does not take account of the equitable considerations referred to above in this Section 4. The aggregate amount of losses, liabilities, claims, damages and expenses incurred by an indemnified party and referred to above in this Section 4 shall be
deemed to include any reasonable out-of-pocket legal or other expenses reasonably incurred by such indemnified party in investigating, preparing or defending against any litigation, or any investigation or proceeding by any governmental agency or
body, commenced or threatened, or any claim whatsoever based upon any such untrue or alleged untrue statement or omission or alleged omission.

     Notwithstanding the provisions of this Section 4, no Holder shall be required to indemnify or contribute any amount in excess of the amount by which the total price at which the Securities sold by
such Holder exceeds the amount of any damages which such Holder has otherwise been required to pay by reason of such untrue or alleged untrue statement or omission or alleged omission.

     No Person guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of the 1933 Act) shall be entitled to contribution from any Person who was not guilty of such fraudulent
misrepresentation.

     For purposes of this Section 4, each director, officer, employee and agent of Holder, or each Person, if any, who controls any Holder within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act shall have the same rights to contribution as such Holder, and each director, officer, employee or agent of the Company, and each Person, if any, who controls the Company within the meaning of Section 15 of the 1933 Act or Section 20 of
the 1934 Act shall have the same rights to contribution as the Company.

	 	
5. Distributions by Purchasers

     (a) Each Purchaser hereby acknowledges the restrictions on the transfer of the Securities as set forth in Section 7 of the Purchase Agreement and expressly acknowledges that such provisions apply to
the terms of the Registration Rights Agreement with respect to such Purchaser and its Affiliates. 

     (b) If the Company shall at any time receive a written request from Purchasers then able to participate in a Substantial Distribution that in the aggregate have Beneficial Ownership of at least
$175 million principal amount of Registrable Securities (i) that the Company assist in a Substantial Distribution, (ii) stating that such Purchasers have a current bona fide intent to effectuate a Substantial Distribution and (iii) providing
verification that such Purchasers Beneficially Own an aggregate of at least $175 million principal amount of Registrable Securities, the Company will provide such Purchasers with its reasonable cooperation, as requested by such Purchasers, to
facilitate such Substantial Distribution; provided, however, that the Company shall only be required to assist the Purchasers with
an aggregate of two such Substantial Distributions; provided further, that the Company shall not be required to assist any Purchasers with a Substantial Distribution more than once in any
270 day period and; provided further, that the Company will only be required to provide Purchasers with such cooperation until the earlier of consummation of the Sponsor Supported
Distribution or 30 days following the earlier of the public announcement or commencement of marketing efforts with respect to such distribution. Under any circumstances and for such periods as the Company would be permitted to initiate a Suspension
Period pursuant to Section 2.5, the Company shall have the right to delay the commencement (e.g., the taking of any external activity, but not including internal, non-public preparatory work) of a Sponsor Supported Distribution (a “Delay
Period”) for a period of days which, when aggregated with any pending or prior Suspension Periods and Delay Periods, would not exceed the 90 and 120 day limits set forth in Section 2.5 without, in the context of a registered Sponsor Supported
Distribution, formally initiating a Suspension Period, provided that any such Delay Periods may not exceed and shall reduce (on a day-for-day basis) the 90 and 120 day limits referred to in Section 2.5 unless otherwise agreed by the Majority Holders
that are Sponsor Purchasers. In addition, under no circumstances shall the Company be required to commence a Sponsor Supported Distribution at any time during the three week period immediately preceding the scheduled public disclosure of results for
any quarter (the “Pre-Announcement Periods”) and any delay during that time shall not be counted against the Suspension Period. If a request for a Sponsor Supported Distribution has been made before any Delay Period or Pre-Announcement
Period, however, the Company will provide reasonable cooperation as is reasonably requested during such Delay Period or Pre-Announcement Period to permit such Sponsor Supported Distribution to be commenced promptly following the expiration of

such Delay Period or Pre-Announcement Period. For the avoidance of doubt, any Sponsor Supported Distribution shall not require any pre-clearance under any stock trading policies of the Company in effect at such time.

     For purposes of the two Substantial Distributions with which the Company is required to provide the Purchasers with assistance, it shall be deemed to be a Substantial Distributions for which the
Company has provided assistance if the Purchasers request such assistance and the Substantial Distribution is cancelled, terminated or otherwise not consummated, unless (i) such cancellation, termination or failure to consummate such Substantial
Distribution (x) is based upon material adverse information concerning the Company of which the Purchasers initiating such Substantial Distribution were not aware at the time of such request or (y) occurs prior to the time the Company has provided
significant assistance or cooperation with respect to such proposed Substantial Distribution or (ii) the Purchasers reimburse the Company for all of its reasonable, related third party costs and expenses.

     (c) To the extent the Shelf Registration Statement is effective and available for use at the time of any proposed sale or offer of any Securities by any Purchaser participating in such distribution,
each such Purchaser agrees that the sale and offer of such Securities made by it shall be made pursuant to such effective Shelf Registration Statement such that the transferee of such Securities will receive unrestricted Securities; provided, that (i) transfers of Securities between the Sponsor Purchasers and the Bank Purchaser pursuant to the terms of any Swap Agreement, and (ii) transfers of Securities by the Bank Purchaser
pursuant to its rights under Section 5(b) of a Swap Agreement upon a Swap Default or pursuant to the exercise of the Bank Purchaser’s rights under Section 7 of the Security Agreement in a transaction exempt from the registration requirements of
the Securities Act and in accordance with the provisions of the applicable Indenture shall not be subject to this requirement. 

     (d) In furtherance of the Company’s undertakings, and subject to the limitations, in Section 5(b), the Company agrees to use its reasonable efforts to enter into such customary agreements (on
terms reasonably acceptable to the Company) and take all other customary and appropriate actions in order to expedite or facilitate the disposition of the Registrable Securities being offered and sold in a Substantial Distribution by the Purchasers
in which the Company provides cooperation, including, but not limited to: 

     (i) obtaining opinions of counsel to the Company and updates thereof addressed to each selling Purchaser and the Underwriters or Initial Purchasers, if any, covering matters as are customarily
requested in opinions covering secondary resale offerings of companies of comparable size, maturities and lines of business as the Company;

     (ii) obtaining “comfort” letters and updates thereof from the Company’s independent certified public accountants (and, if necessary, any other independent certified public accountants
of any subsidiary of the Company or of any business acquired by the Company for which financial statements are, or are required to be, included in the Shelf Registration Statement or offering memorandum, as the case may be) addressed to the
Underwriters or Initial Purchasers, if any, and use reasonable efforts to have such letter 

addressed to the selling Purchasers (to the extent consistent with AU 722, Interim Financial Information, of the Public Company Accounting Oversight Board (United States), such letters covering matters as are customarily requested
in comfort letters covering secondary resale offerings of companies of comparable size, maturities and lines of business as the Company;

     (iii) making reasonably available for inspection by each Purchaser and the Underwriters or Initial Purchasers, if any, participating in any Substantial Distribution, and any attorney, accountant or
other agent retained by any such Purchaser or Underwriter or Initial Purchaser, all relevant financial and other records and pertinent corporate documents of the Company as are customarily made available in secondary resale offerings of companies of
comparable size, maturities and lines of business as the Company; 

     (iv) causing the Company’s officers, directors, employees, accountants and auditors to supply all relevant information, and causing appropriate persons to be reasonably available for discussions
concerning such documents, as reasonably requested by any such Purchaser, Underwriter, Initial Purchaser, attorney, accountant or agent in connection with any such Substantial Distribution as is customary for similar due diligence
examinations;

     (v) delivering such documents and certificates (including an offering or information memorandum in the context of a Substantial Distribution effected pursuant to Rule 144A) to the Purchasers and the
Underwriters or Initial Purchasers, if any, as may be reasonably requested by such Purchasers, Underwriters or Initial Purchasers and as are customarily delivered in secondary resale offerings of companies of comparable size, maturities and lines of
business as the Company; 

     (vi) making appropriate members of senior management reasonably available to participate in conference calls with potential investors and make presentations to ratings agencies as is reasonably
necessary and customary in secondary resale offerings of companies of comparable size, maturities and lines of business as the Company; and

     (vii) if an underwriting or purchase, sale or agency agreement is entered into, causing the same to set forth indemnification provisions and procedures substantially equivalent to the indemnification
provisions and procedures set forth in Section 4 with respect to the Underwriters or Initial Purchasers and all other parties to be indemnified pursuant to said Section or, at the request of any Underwriters or Initial Purchasers, in the form
customarily provided to such Underwriters or Initial Purchasers in similar types of transactions. 

     Other than as provided in this Section 5 (and in the context of a registered Substantial Distribution, the other applicable provisions of this Agreement), the Company shall not be obligated to
cooperate to facilitate any underwritten offering to facilitate a Substantial Distribution or otherwise.

     In connection with any Substantial Distribution in which the Company provides assistance to the Purchasers or the Underwriters or the Initial Purchasers thereto, if any, the Company may require each
Purchaser or Underwriter or Initial Purchaser, and their attorneys, accountants or agents retained by them, to maintain in confidence and not to disclose to any other person any information or records provided as part of such assistance and
reasonably designated by the Company as being confidential, until such time as (A) such information becomes a matter of public record (whether by virtue of its inclusion in such registration statement or otherwise), or (B) such person shall be
required so to disclose such information pursuant to a subpoena or order of any court or other governmental agency or body having jurisdiction over the matter (subject to the requirements of such order, and only after such person shall have given
the Company prompt prior written notice of such requirement), or (C) such information is required to be set forth in the Shelf Registration Statement or the prospectus or offering or information memorandum included therein or in an amendment to such
Shelf Registration Statement or an amendment or supplement to such prospectus in order that such Shelf Registration Statement, prospectus, amendment or supplement, complies with applicable requirements of the federal securities laws and the rules
and regulations of the Commission and does not contain an untrue statement of a material fact or omit to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading in light of the
circumstances then existing or (D) such information becomes available to any such person from a source other than the Company and such source is not bound by a confidentiality agreement or other confidentiality obligations or duties, as the case may
be.

     If any of the Registrable Securities to be sold in a Substantial Distribution are to be sold in an underwritten offering, the Underwriter or Underwriters and Initial Purchaser or Initial Purchasers
that will manage such offering will be selected by the Majority Holders of such Registrable Securities included in such offering and shall be reasonably acceptable to the Company. 

     (f) Notwithstanding anything herein to the contrary, any Bank Purchaser shall only be able to utilize the provisions under this Section 5 (i) in connection with the sale of Registrable Securities by
such Bank Purchaser pursuant to instructions from the Sponsor Purchasers with respect to sales of Registrable Securities pursuant to the Swap Agreements where one or more Sponsor Purchasers is the beneficiary of the proceeds of such Substantial
Distribution or (ii) in connection with a transfer pursuant to a Bank Purchaser Transfer Event (as that term is defined in the Purchase Agreement).

     (g) This Section 5 shall terminate, and the Purchasers shall have no rights pursuant to this Section 5, upon the earlier to occur of (i) the date on which the Purchasers collectively Beneficially Own
less than $175,000,000 in aggregate principal amount of Registrable Securities, based on principal amount in the case of Notes that are Registrable Securities and based on the product of (x) the effective Conversion Price and (y) the number of
shares of Common Stock held by the Purchasers that are Registrable Securities in the case of Common Stock, and (ii) the termination of the Effectiveness Period.

     (h) The rights granted to the Purchasers pursuant to this Section 5 shall only be for the benefit of the Purchasers, and may not be transferred, assigned or otherwise granted to any subsequent
Holder.

	
6.      		
Miscellaneous.	
	 
	 	
6.1 No Inconsistent Agreements. The Company has not entered into and the	
	 

Company will not after the date of this Agreement enter into any agreement with respect to its securities which conflicts with the rights granted to the Holders of Registrable Securities in this Agreement. The rights granted to
the Holders hereunder do not for the term of this Agreement conflict with the rights granted to the holders of the Company’s other issued and outstanding securities under any such agreements.

     6.2 Amendments and Waivers. The provisions of this Agreement may not be amended, qualified, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, unless the Company has obtained the written consent of the Majority Holders; provided, however, that no amendment, qualification, supplement, waiver or consent with respect to Sections 2.4 and 4 hereof shall be effective as against any Holder of Registered Securities unless consented to in
writing by such Holder; and provided, further, that the provisions of this Section 6.2 may not be amended, qualified, modified or supplemented, and waivers or consents to departures from the
provisions hereof may not be given, unless the Company has obtained the written consent of each Holder, except that any provision of this Section 6.2 which provides that an amendment to this Agreement may be made upon the written consent of the
Majority Holders may itself be amended, qualified, modified or supplemented, and waivers or consents to departures from any such provision may be given if the Company obtains the written consent of the Majority Holders. Notwithstanding the foregoing
(except the foregoing provisos), (i) a waiver or consent to departure from the provisions hereof with respect to a matter that relates exclusively to the rights of Holders whose Registrable Securities are being sold pursuant to a Shelf Registration
Statement and that does not directly or indirectly affect the rights of other Holders may be given by the Majority Holders, determined on the basis of the Registrable Securities being sold rather than registered under such Shelf Registration
Statement and (ii) this Agreement may be amended by a written agreement between the Company and the Purchasers, without the consent of the Holders of the Registrable Securities, in order to cure any ambiguity or to correct or supplement any
provision contained herein, provided that no such amendment shall adversely affect the interest of the Holders of Registrable Securities. Each Holder of Registrable Securities outstanding at the time of any amendment, modification, waiver or consent
pursuant to this Section 6.2, shall be bound by such amendment, modification, waiver or consent, whether or not any notice or writing indicating such amendment, modification, waiver or consent is delivered to such Holder. Notwithstanding the
foregoing, Section 5 may only be amended, qualified or supplemented if approved by the Majority Holders that are Sponsor Purchasers or, if after and during the continuance of a Swap Default, the Bank Purchaser. 

     6.3 Notices. All notices, consents and other communications provided for or permitted hereunder shall be made in writing by hand delivery,
registered first-class mail, facsimile, 

or any courier guaranteeing overnight delivery (a) if to a Holder, in the manner set forth in Section 12.03(b) of the applicable Indenture; and (b) if to the Company, initially at the Company’s address set forth in the
Purchase Agreement, and thereafter at such other address of which notice is given in accordance with the provisions of this Section 6.3

     All such notices and communications shall be deemed to have been duly given when delivered in person or by private courier with receipt, if telefaxed when verbal or email confirmation from the
recipient is received, or three (3) days after being deposited in the United States mail, first-class, registered or certified, return receipt requested, with postage paid.

     Copies of all such notices, demands, or other communications to any Holder shall be deemed to have been duly given, if such notice has been duly given to the Trustee under the Indentures, at the
address specified in such Indentures.

     6.4 Successor and Assigns. Except with respect to Section 5 hereof, which is only for the benefit of the Purchasers, this Agreement shall
inure to the benefit of and be binding upon the successors, assigns and transferees of each of the parties, including, without limitation and without the need for an express assignment, subsequent Holders; provided, however, that, nothing herein shall be deemed to permit any assignment,
transfer or other disposition of Registrable Securities in violation of the terms of the Purchase Agreement or the Indentures. If any transferee of any Holder shall acquire Registrable Securities, in any manner, whether by operation of law or
otherwise, such Registrable Securities shall be held subject to all of the terms of this Agreement, and by taking and holding such Registrable Securities such person shall be conclusively deemed to have agreed to be bound by and to perform all of
the terms and provisions of this Agreement, including the restrictions on resale set forth in this Agreement and, if applicable, the Purchase Agreement, and such person shall be entitled to receive the benefits hereof.

     6.5 Third Party Beneficiaries. Each Holder of Registrable Securities shall be a third party beneficiary to the agreements made hereunder
between the Company, on the one hand, and the Purchasers, on the other hand, and shall have the right to enforce such agreements directly to the extent it deems such enforcement necessary or advisable to protect its rights hereunder.

     6.6 Specific Enforcement. Without limiting the remedies available to the Purchasers and the Holders, the Company acknowledges that any
failure by the Company to comply with its obligations under Section 2.1 may result in material irreparable injury to the Purchasers or the Holders for which there is no adequate remedy at law, that it may not be possible to measure damages for such
injuries precisely and that, in the event of any such failure, any Purchaser or any Holder may seek such relief as may be required to specifically enforce the Company’s obligations under Sections 2.1.

     6.7 Counterparts. This Agreement may be executed in any number of counterparts and by the parties hereto in separate counterparts, each of
which when so executed shall be deemed to be an original and all of which taken together shall constitute one and the same agreement.

     6.8 Headings. The headings in this Agreement are for convenience of reference only and shall not limit or otherwise affect the meaning
hereof.

     6.9 GOVERNING LAW. THIS AGREEMENT SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK. 

     6.10 Severability. In the event that any one or more of the provisions contained herein, or the application thereof in any circumstance, is
held invalid, illegal or unenforceable, the validity, legality and enforceability of any such provision in every other respect and of the remaining provisions contained herein shall not be affected or impaired thereby.

     6.11 Entire Agreement. This Agreement is intended by the parties as a final expression of their agreement and intended to be a complete and
exclusive statement of the agreement and understanding of the parties hereto in respect of the subject matter contained herein. There are no restrictions, promises, warranties or undertakings, other than those set forth or referred to herein with
respect to the registration rights granted by the Company with respect to the Registrable Securities. This Agreement supersedes all prior agreements and understandings between the parties with respect to such subject matter.

     IN WITNESS WHEREOF, the parties have executed this Agreement as of the date first written above.

	
SUN MICROSYSTEMS, INC.

	
By:

	
Name:

Title: 

Confirmed and accepted as of the date first above written:

KKR PEI SOLAR HOLDINGS I, LTD.

	
By:

Name: Title: 

KKR PEI SOLAR HOLDINGS II, LTD.

	
By:

	 	
Name:

Title: 

	
CITIBANK, N.A.

	
By:

	 	
Name:

Title:

-2-

	
EXHIBIT A

SELLING SECURITYHOLDER QUESTIONNAIRE

     The undersigned beneficial owner (the “Selling Securityholder”) of the 0.625% Convertible Senior Notes due 2012 and/or the 0.750% Convertible Senior Notes due 2014 (collectively, the
“Notes”) of Sun Microsystems, Inc. (the “Company”) or the shares of the Company’s Common Stock, par value $0.00067 per share, issuable upon conversion of the Notes (the “Common Stock” and, together with the
Notes, the “Registrable Securities”) hereby gives notice to the Company of its intention to sell or otherwise dispose of Registrable Securities beneficially owned by it and listed below in Item 3 (unless otherwise specified under Item 3)
pursuant to the Shelf Registration Statement. The undersigned, by signing and returning this Selling Securityholder Questionnaire, understands that it will be bound by the terms and conditions of this Selling Securityholder Questionnaire and the
Registration Rights Agreement, dated as of January 26, 2007, among the Company and the Purchasers thereto.

     Pursuant to the Registration Rights Agreement, the undersigned has agreed to indemnify and hold harmless the Company’s directors, the Company’s officers and each person, if any, who controls
the Company within the meaning of either Section 15 of the Securities Act or Section 20 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), from and against certain losses arising in connection with statements
concerning the undersigned made in the Shelf Registration Statement or the related prospectus in reliance upon the information provided in this Selling Securityholder Questionnaire. The undersigned hereby acknowledges its obligations under the
Registration Rights Agreement to indemnify and hold harmless certain persons set forth therein.

     The undersigned hereby provides the following information to the Company and represents and warrants that such information is accurate and complete:

	
(1)      		
(a) Full Legal Name of Selling Securityholder:	
	 
	 	
(b)      		
Full Legal Name of Registered Holder (if not the same as (a) above) through which Registrable Securities listed in (3) below are held:	
	 
	 	
(c)      		
Full Legal Name of DTC Participant (if applicable and if not the same as (b) above) through which Registrable Securities listed in (3) below are held:	
	 
	
(2)      		
Address for Notices to Selling Securityholder:	
	 

A-1

	 	
Telephone (including area code):	
	 
	 	
Fax (including area code):	
	 
	 	
Contact Person:	
	 
	
(3)      		
Beneficial Ownership of Registrable Securities:	
	 
	 	
(a)      		
Type and Principal Amount/Number of Registrable Securities beneficially owned:	
	 
	 	
(b)      		
CUSIP No(s). of such Registrable Securities beneficially owned:	
	 
	
(4)      		
Beneficial Ownership of Other Securities of the Company Owned by the Selling Securityholder:	
	 
	 	
Except as set forth below in this Item (4), the undersigned is not the beneficial or registered owner of any securities of the Company other than the Registrable Securities listed above in Item (3).	
	 
	 	
(a)      		
Type and Amount of Other Securities beneficially owned by the Selling Securityholder:	
	 
	 	
(b)      		
CUSIP No(s). of such Other Securities beneficially owned:	
	 
	
(5)      		
Relationship with the Company:	
	 
	 	
Except as set forth below, neither the undersigned nor any of its affiliates, officers, directors or principal equity holders (5% or more) has held any position or office or has had any other material relationship with
the Company (or its predecessors or affiliates) during the past three years.	
	 
	 	
State any exceptions here:	
	 
	
(6)      		
Is the Selling Securityholder a registered broker-dealer?	
	 
	 	
Yes [ ]	
	 

A-2

No [ ]

If “Yes”, please answer subsection (a) and subsection (b):

	
(a)      		
Did the Selling Securityholder acquire the Registrable Securities as compensation for underwriting/broker-dealer activities to the Company?	
	 

	 	
Yes [ ]

No [ ]

	
(b)      		
If you answered “No” to question 6(a), please explain your reason for acquiring the Registrable Securities:	
	 

	
(7)      		
Is the Selling Securityholder an affiliate of a registered broker-dealer?	
	 
	 	
Yes [ ]	
	 
	 	
No [ ]	
	 
	 	
If “Yes”, please identify the registered broker-dealer(s), describe the nature of the affiliation(s) and answer subsection (a) and subsection (b):	
	 
	 	
(a)      		
Did the Selling Securityholder purchase the Registrable Securities in the ordinary course of business (if no, please explain)?	
	 

	
Yes 
		
 		
[ ] 
		
 		
 
	
	
No 
		
 		
[ ] 
		
 		
Explain: 
	

	
(b)      		
Did the Selling Securityholder have an agreement or understanding, directly or indirectly, with any person to distribute the Registrable Securities at the same time the Registrable Securities were originally purchased (if
yes, please explain)?	
	 

	
 
		
 		
 
		
 		
                        Yes 
		
 		
    [ ] 
		
 		
Explain: 
	
	
 
		
 		
 
		
 		
                        No 
		
 		
[ ] 
		
 		
 
	
	
(8) 
		
 		
Is the Selling Securityholder a non-public entity? 
		
 		
 
	
	
 
		
 		
Yes 
		
 		
[ ] 
		
 		
 
		
 		
 
	

A-3

	 	
No [ ]

	 	
If “Yes”, please answer subsection (a):

(a) Identify the natural person or persons that have voting or investment control over the Registrable Securities that the non-public entity owns:

	
(9)      		
Plan of Distribution:	
	 
	 	
Except as set forth below, the undersigned Selling Securityholder (including its donees and pledgees) intends to distribute the Registrable Securities listed above in Item (3) pursuant to the Shelf Registration Statement
only as follows (if at all): Such Registrable Securities may be sold from time to time directly by the undersigned Selling Securityholder or, alternatively, in accordance with the Registration Rights Agreement, through underwriters, broker-dealers
or agents. If the Registrable Securities are sold through underwriters or broker-dealers, the Selling Securityholders will be responsible for underwriting discounts or commissions or agent commissions. Such Registrable Securities may be sold in one
or more transactions at fixed prices, at prevailing market prices at the time of sale, at varying prices determined at the time of sale, or at negotiated prices. Such sales may be effected in transactions (which may involve cross or block
transactions) (i) on any national securities exchange or quotation service on which the Registrable Securities may be listed or quoted at the time of sale, (ii) in the over-the-counter market, (iii) in transactions otherwise than on such exchanges
or services or in the over-the-counter market, or (iv) through the writing of options. In connection with sales of the Registrable Securities or otherwise, the undersigned Selling Securityholder may enter into hedging transactions with
broker-dealers, which may in turn engage in short sales of the Registrable Securities in the course of hedging positions they assume. The undersigned Selling Securityholder may also sell Registrable Securities short and deliver Registrable
Securities to close out short positions, or loan or pledge Registrable Securities to broker-dealers that in turn may sell such securities.	
	 
	 	
State any exceptions here:	
	 

     The undersigned Selling Securityholder acknowledges that it understands its obligations to comply with the provisions of the Securities Exchange Act of 1934, as amended, and the rules thereunder
relating to stock manipulation, particularly Regulation M thereunder (or any successor rules or regulations), in connection with any offering of Registrable Securities pursuant to the Shelf Registration Agreement. The undersigned agrees that neither
it nor any person acting on its behalf will engage in any transaction in violation of such provisions.

     Pursuant to the Registration Rights Agreement, the Company has agreed under certain circumstances to indemnify the Selling Securityholder against certain liabilities.

A-4

     In the event the undersigned transfers all or any portion of the Registrable Securities listed in Item (3) above after the date on which such information is provided to the Company other than pursuant
to the Shelf Registration Statement, the undersigned agrees to notify the transferee(s) at the time of the transfer of its rights and obligations under this Selling Securityholder Questionnaire and the Registration Rights Agreement.

     In accordance with the undersigned’s obligation under the Registration Rights Agreement to provide such information as may be required by law or by the staff of the Commission for inclusion in
the Shelf Registration Statement, the undersigned agrees to promptly notify the Company of any inaccuracies or changes in the information provided herein that may occur subsequent to the date hereof at anytime while the Shelf Registration Statement
remains effective. All notices hereunder and pursuant to the Registration Rights Agreement shall be made in writing, by hand-delivery, first-class mail, or air courier guaranteeing overnight delivery to the address set forth below.

     By signing below, the undersigned consents to the disclosure of the information contained herein in its answers to Items (1) through (9) above and the inclusion of such information in the Shelf
Registration Statement and the related prospectus. The undersigned understands that such information will be relied upon by the Company in connection with the preparation or amendment of the Shelf Registration Statement and the related
prospectus.

     Once this Selling Securityholder Questionnaire is executed by the undersigned and received by the Company, the terms of this Selling Securityholder Questionnaire, and the representations, warranties
and agreements contained herein, shall be binding on, shall inure to the benefit of and shall be enforceable by the respective successors, heirs, personal representatives, and assigns of the Company and the undersigned with respect to the
Registrable Securities beneficially owned by the undersigned and listed in Item (3) above. This Selling Securityholder Questionnaire shall be governed in all respects by the laws of the State of New York.

     IN WITNESS WHEREOF, the undersigned, by authority duly given, has caused this Selling Securityholder Questionnaire to be executed and delivered either in person or by its duly authorized
agent.

	 	
Dated:

	
Beneficial Owner

	
By:

A-5

	
Name:

Title:

PLEASE RETURN THE COMPLETED AND EXECUTED 

SELLING SECURITYHOLDER QUESTIONNAIRE TO THE COMPANY AT:

	
SUN MICROSYSTEMS, INC.

4150 Network Circle

Santa Clara, CA 95054

Fax: (650) 786-8608

Attn: Michael Lehman

A-6DC427.pdf -- Converted by SEC Publisher 4.2, created by BCL Technologies Inc., for SEC Filing

	
EXECUTION COPY

NOTE PURCHASE AGREEMENT

BY AND BETWEEN

     SUN MICROSYSTEMS, INC., THE PURCHASERS NAMED HEREIN, KOHLBERG KRAVIS ROBERTS & CO., L.P.

AND 

KKR PEI INVESTMENTS, L.P.

January 23, 2007

	
 
		
 		
 
		
 		
EXECUTION COPY 
	
	
 
		
 		
                                                                    
 Table of Contents 
		
 		
 
	
	
 
	
	
1. Definitions 
		
 		
1 
	
	
 
	
	
2. Authorization, Purchase and Sale of Notes 
		
 		
7 
	
	
                    2.1 
		
 		
Authorization, Purchase and Sale 
		
 		
7 
	
	
                    2.2 
		
 		
Closing 
		
 		
7 
	
	
3. Representations and Warranties of the Company 
		
 		
7 
	
	
                    3.1 
		
 		
Organization and Power 
		
 		
7 
	
	
                    3.2 
		
 		
Capitalization 
		
 		
8 
	
	
                    3.3 
		
 		
Authorization 
		
 		
8 
	
	
                    3.4 
		
 		
Valid Issuance 
		
 		
9 
	
	
                    3.5 
		
 		
No Conflict 
		
 		
9 
	
	
                    3.6 
		
 		
Consents 
		
 		
9 
	
	
                    3.7 
		
 		
SEC Reports; Financial Statements. 
		
 		
10 
	
	
                    3.8 
		
 		
Absence of Certain Changes 
		
 		
10 
	
	
                    3.9 
		
 		
Absence of Litigation 
		
 		
10 
	
	
                    3.10 Compliance with Law 
		
 		
11 
	
	
                    3.11 Intellectual Property 
		
 		
11 
	
	
                    3.12 Employee Benefits 
		
 		
11 
	
	
                    3.13 Taxes 
		
 		
11 
	
	
                    3.14 Nasdaq Stock Market 
		
 		
12 
	
	
                    3.15 Company Not an “Investment Company.” 
		
 		
12 
	
	
                    3.16 General Solicitation; No Integration 
		
 		
12 
	
	
4. Representations and Warranties of Each Purchaser 
		
 		
12 
	
	
                    4.1 
		
 		
Organization 
		
 		
12 
	
	
                    4.2 
		
 		
Authorization 
		
 		
12 
	
	
                    4.3 
		
 		
No Conflict 
		
 		
13 
	
	
                    4.4 
		
 		
Consents 
		
 		
13 
	
	
                    4.5 
		
 		
Absence of Litigation 
		
 		
13 
	
	
                    4.6 
		
 		
Purchasers’ Financing 
		
 		
14 
	
	
                    4.7 
		
 		
Brokers 
		
 		
14 
	
	
                    4.8 
		
 		
Purchase Entirely for Own Account 
		
 		
14 
	
	
                    4.9 
		
 		
Investor Status 
		
 		
14 
	
	
                    4.10 Securities Not Registered 
		
 		
14 
	
	
5. Covenants 
		
 		
14 
	
	
                    5.1 
		
 		
HSR Approval 
		
 		
15 
	
	
                    5.2 
		
 		
Shares Issuable Upon Conversion 
		
 		
15 
	
	
                    5.3 
		
 		
PORTAL and CUSIPs 
		
 		
15 
	
	
                    5.4 
		
 		
Further Assurances 
		
 		
16 
	
	
                    5.5 
		
 		
Board Designee 
		
 		
16 
	

	
 
		
 		
EXECUTION COPY 
	
	
                    5.6 
		
 		
Standstill 
		
 		
17 
	
	
6. Conditions Precedent 
		
 		
20 
	
	
                    6.1 
		
 		
Conditions to the Obligation of the Purchasers to Consummate the Closing 
		
 		
20 
	
	
                    6.2 
		
 		
Conditions to the Obligation of the Company to Consummate the Closing 
		
 		
21 
	
	
7. Transfer of the Securities 
		
 		
21 
	
	
                    7.1 
		
 		
Transfer Restrictions 
		
 		
22 
	
	
8. Termination 
		
 		
23 
	
	
                    8.1 
		
 		
Conditions of Termination 
		
 		
24 
	
	
                    8.2 
		
 		
Effect of Termination 
		
 		
24 
	
	
9. Miscellaneous Provisions 
		
 		
24 
	
	
                    9.1 
		
 		
Public Statements or Releases 
		
 		
24 
	
	
                    9.2 
		
 		
Interpretation 
		
 		
24 
	
	
                    9.3 
		
 		
Notices 
		
 		
24 
	
	
                    9.4 
		
 		
Severability 
		
 		
26 
	
	
                    9.5 
		
 		
Governing Law 
		
 		
26 
	
	
                    9.6 
		
 		
Waiver 
		
 		
27 
	
	
                    9.7 
		
 		
Expenses; Transaction Fee 
		
 		
27 
	
	
                    9.8 
		
 		
Assignment 
		
 		
27 
	
	
                    9.9 
		
 		
Confidential Information 
		
 		
28 
	
	
                    9.10 Third Parties 
		
 		
28 
	
	
                    9.11 Counterparts 
		
 		
28 
	
	
                    9.12 Entire Agreement; Amendments 
		
 		
28 
	
	
                    9.13 Survival 
		
 		
29 
	

	
Exhibits 
		
 		
 
	
	
 
	
	
Exhibit A 
		
 		
Purchasers 
	
	
Exhibits B-1 and B-2 
		
 		
Forms of Indentures (including Forms of Notes) 
	
	
Exhibit C 
		
 		
Form of Registration Rights Agreement 
	
	
Exhibit D 
		
 		
Form of Legal Opinion 
	

     This NOTE PURCHASE AGREEMENT (this “Agreement”) is dated as of January 23, 2007, by and among Sun Microsystems, Inc., a Delaware
corporation (the “Company”), the purchasers named in Exhibit A attached hereto (each, a “Purchaser” and
collectively, the “Purchasers”), solely for purposes of Article 1, Sections 5.5, 5.6 and 7.1 and Article 9 hereof, Kohlberg Kravis Roberts & Co., L.P. (“Sponsor”) and solely for purposes of Section 4.6 hereof, KKR PEI Investments, L.P (“KKR PEI”). 

     WHEREAS, the Company has authorized the issuance of up to $350 million aggregate principal amount of its 0.625% Convertible Senior Notes due 2012 (the “2012
Notes”) and up to $350 million aggregate principal amount of its 0.750% Convertible Senior Notes due 2014 (the “2014 Notes” and together with
the 2012 Notes, the “Notes”) to be issued in accordance with the terms and conditions of the Indenture for the 2012 Notes and the Indenture for the 2014 Notes, respectively, in the
forms attached hereto as Exhibit B-1 and Exhibit B-2 (the “Indentures”), respectively, which Notes shall be convertible in part into authorized but unissued shares of common stock, $0.00067 par value per share, of the Company (the “Common Stock”); 

     WHEREAS, the Company desires to issue and sell to the Purchasers pursuant to this Agreement, and each Purchaser, severally, desires to purchase from the Company the aggregate principal amount of Notes
as is set forth opposite its name in Exhibit A hereto; 

     NOW THEREFORE, in consideration of the mutual agreements, representations, warranties and covenants herein contained, the parties hereto agree as follows: 

	 	
1. Definitions

     . As used in this Agreement, the following terms shall have the following respective meanings: 

     “Affiliate” shall mean, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under
direct or indirect common control with such Person, provided, that each Affiliated Entity, each Sponsor Purchaser and each Affiliate of an Affiliated Entity or a Sponsor Purchaser shall be
deemed (except as specifically provided in Section 5.6(f) and Section 7.1(c) hereof) to be an Affiliate of Sponsor. 

     “Affiliated Entity” shall mean any investment fund or holding company formed for investments purposes that is primarily managed,
advised or serviced by Sponsor or by an Affiliate of Sponsor, including but not limited to KKR PEI and its Subsidiaries. 

“Agreement” has the meaning set forth in the recitals hereof.

	 	
“Bank Purchaser” means Citibank, N.A

     “Bank Purchaser Transfer Event” shall mean (i) an exercise of the Bank Purchaser's rights under Section 7 of the Security
Agreements, (ii) an exercise of the Bank Purchaser's rights under 

Section 5(b) of a Swap Agreement upon a default under such agreement (a “Swap Default”) or (iii) the occurrence of the Scheduled Termination Date with respect to
a Swap Agreement.

     “Beneficially Own,” “Beneficially Owned,” or
“Beneficial Ownership” shall have the meaning set forth in Rule 13d-3 of the rules and regulations promulgated under the Exchange Act, except that for purposes of this Agreement
the words “within sixty days” in Rule 13d-3(d)(1)(i) shall not apply, to the effect that a Person shall be deemed to be the beneficial owner of a security if that Person has the right to acquire beneficial ownership of such security at any
time.

     “Benefit Plan” or “Benefit Plans” shall mean employee benefit
plans as defined in Section 3(3) of ERISA and all other employee benefit practices or arrangements, including, without limitation, any such practices or arrangements providing severance pay, sick leave, vacation pay, salary continuation for
disability, retirement benefits, deferred compensation, bonus pay, incentive pay, stock options or other stock-based compensation, hospitalization insurance, medical insurance, life insurance, scholarships or tuition reimbursements, maintained by
the Company or any of its Subsidiaries or to which the Company or any of its Subsidiaries is obligated to contribute for employees or former employees. 

“Board Designee” has the meaning set forth in Section 5.5(a) hereof. “Board of Directors”
means the Board of Directors of the Company. “Call Option” has the meaning set forth in Section 3.2(b) hereof. “Closing” has the meaning set forth in Section 2.2 hereof. “Closing Date” has the meaning set forth in Section 2.2 hereof. “Code” means the Internal Revenue Code of 1986, as amended. “Common Stock” has the meaning set forth in the recitals hereof.
“Company” has the meaning set forth in the recitals hereof.

“Confidential Information” has the meaning set forth in Section 9.9 hereof.

     “Control” (including the terms “controlling”
“controlled by” and “under common control with”) with respect to any Person means the possession, directly or
indirectly, of the power to direct or cause the direction of the management policies of such Person, whether through the ownership of voting securities, by contract or otherwise. 

“Designee Termination Date” has the meaning set forth in Section 5.5(c) hereof.

“ERISA” means the Employee Retirement Income Security Act of 1974, as amended.

- 2 -

     “Exchange Act” means the Securities Exchange Act of 1934, as amended, and all of the rules and regulations promulgated thereunder.

“Financial Statements” has the meaning set forth in Section 3.7(b) hereof. 

“GAAP” has the meaning set forth in Section 3.7(b) hereof. 

“HSR Act” means the Hart-Scott-Rodino Antitrust Improvements Act of 1976, as amended.

“Indentures” has the meaning set forth in Section 6.1(e) hereof.

      “Intellectual Property” means all intellectual property rights and related priority rights, arising from or in respect of the
following, whether protected, created or arising under the Laws of the United States or any other jurisdiction or under any international convention, including: (i) all patents and patent applications, including all continuations, divisionals,
continuations-in-part and provisionals and patents issuing thereon, and all reissues, reexaminations, substitutions, renewals and extensions thereof (collectively, “Patents”); (ii)
all trademarks, service marks, trade names, trade dress, logos, corporate names and other source or business identifiers, together with the goodwill associated with any of the foregoing, and all applications, registrations, renewals and extensions
thereof; (iii) all copyrights, works of authorship and moral rights, and all registrations, applications, renewals, extensions and reversions thereof; and (iv) all confidential and proprietary information or non-public discoveries, concepts, ideas,
research and development, technology, software, know-how, formulae, inventions, trade secrets, compositions, processes, techniques, technical data and information, procedures, designs, drawings, specifications, databases, customer lists, supplier
lists, pricing and cost information, and business and marketing plans and proposals, in each case excluding any rights in respect of any of the foregoing that comprise or are protected by Patents. 

“KKR PEI” has the meaning set forth in the recitals hereof.

     “Material Adverse Effect” means such facts, circumstances, events or changes that are, individually or in the aggregate, materially
adverse to (i) the business, financial condition, assets or continuing operations of the Company and its Subsidiaries taken as a whole or (ii) the Company’s ability to perform its obligations under this Agreement, but shall not include facts,
circumstances, events or changes (a) generally affecting any of the industries in which the Company, taken together with its Subsidiaries, operates, in the United States or elsewhere in the world or the economy or the financial or securities markets
in the United States or elsewhere in the world, in each case, except to the extent such facts, circumstances, events or changes disproportionately affect the Company and its Subsidiaries; (b) resulting from changes in applicable legal requirements,
GAAP or accounting standards; (c) resulting from a change in the Company’s stock price or the trading volume in the Common Stock in and of itself or (d) resulting from a failure to meet securities analysts’ published revenue or earnings
predictions for the Company in and of itself. 

“NASD” means the National Association of Securities Dealers, Inc.

- 3 -

“Non-Investor Affiliates” has the meaning set forth in Section 5.6(f) hereof.

“Notes”, “2012 Notes” and “2014 Notes” have the meanings set forth in the recitals hereof.

      “Own” in the context of Notes shall mean (i) the right to solely control the voting or direction of the voting of such Notes and
(2) bearing all or substantially all economic risk of loss or appreciation (less a fixed or floating interest rate return) in the value of, and any profit (less a fixed or floating interest rate return) derived from a transaction in, such
Notes.

“Permitted Transfer” has the meaning set forth in Section 7.1(a) hereof.

     “Person” means an individual, partnership, corporation, limited liability company, business trust, joint stock company, trust,
unincorporated association, joint venture or any other entity or organization. 

“Policy Termination Date” means the first to occur of:

(a) If a Designee Termination Date occurs after March 31, 2007, as a result of the events described in clause (v) of the definition of Designee Termination Date and if, at the time of such Designee Termination Date, there has
never been a Board Designee on the Board of Directors, three months following the Closing Date;

     (b) If a Designee Termination Date occurs after March 31, 2007, as a result of the events described in clause (v) of the definition of Designee Termination Date and if, at or prior to the time of such
Designee Termination Date, there has at any time been a Board Designee on the Board of Directors, three months following the occurrence of such Designee Termination Date;

     (c) If a Designee Termination Date occurs on or prior to March 31, 2007, as a result of the events described in clause (v) of the definition of Designee Termination Date, three months following the
occurrence of such Designee Termination Date;

     (d) If a Designee Termination Date occurs as a result of anything other than the events described in clause (v) of the definition of Designee Termination Date, the later of (i) the date that is three
months following such Designee Termination Date or (ii) the date of the resignation (other than the conditional resignation required pursuant to Section 5.5(a) hereof), retirement or removal of the Board Designee from the Board of
Directors.

 “Preferred Stock” has the meaning set forth in Section 3.2(a) hereof.

“Purchaser” and “Purchasers” have the meanings set forth in the recitals hereof.
“Purchaser Adverse Effect” has the meaning set forth in Section 4.3 hereof. “Representatives” has the meaning
set forth in Section 9.9 hereof. 

- 4 -

“Restricted Period” has the meaning set forth in Section 7.1(a) hereof. “Rights Agreement”
has the meaning set forth in Section 6.1(f) hereof. “SEC” shall mean the Securities and Exchange Commission. 

     “SEC Reports” means the Company’s Annual Report on Form 10-K for the fiscal year ended June 30, 2006, the Company’s
Quarterly Report on Form 10-Q for the fiscal quarter ended October 1, 2006, the Company’s Proxy Statement on Schedule 14A, filed on September 20, 2006, for its 2006 Annual Meeting of Stockholders, and any Current Reports on Form 8-K filed by
the Company on or after September 8, 2006, together in each case with any documents incorporated by reference therein or exhibits thereto. 

     “Securities” shall mean the Notes and the Common Stock or other securities issuable upon conversion of the Notes. 

     “Securities Act” shall mean the Securities Act of 1933, as amended, and all of the rules and regulations promulgated thereunder.

     “Security Agreements” means those two certain Security Agreements contemplated to be entered into by and between KKR PEI Solar
Holdings I, Ltd., a Cayman Islands limited company, and the Bank Purchaser and KKR PEI Solar Holdings II, Ltd., a Cayman Islands limited company, and the Bank Purchaser in connection with the transactions contemplated hereby in the form provided by
Sponsor to the Company concurrently with the execution of this Agreement (without giving effect to any subsequent amendment thereof unless consented to by the Company).

     “Significant Subsidiary” means, in respect of any Person, a Subsidiary of such Person that would constitute a “significant
subsidiary” as such term is defined under Rule 1-02(w) of Regulation S-X under the Securities Act and the Exchange Act.

“Sponsor” shall have the meaning set forth in the recitals hereof.

     “Sponsor Purchasers” shall mean the Purchasers (other than the Bank Purchaser) and their Affiliates that acquire Beneficial
Ownership of Securities in a Permitted Transfer.

“Standstill Termination Date” means the first to occur of:

     (a) If a Designee Termination Date occurs after March 31, 2007, as a result of the events described in clause (v) of the definition of Designee Termination Date and if, at the time of such Designee
Termination Date, there has never been a Board Designee on the Board of Directors, the date that is six months following the Closing Date; 

     (b) If a Designee Termination Date occurs after March 31, 2007, as a result of the events described in clause (v) of the definition of Designee Termination Date and if, at or prior to the time of such
Designee Termination Date, there has at any time been a Board Designee

- 5 -

on the Board of Directors, the later of (i) the date that is six months following such Designee Termination Date and (ii) the date that is the first anniversary of the Closing Date;

     (c) If a Designee Termination Date occurs on or prior to March 31, 2007, as a result of the events described in clause (v) of the definition of Designee Termination Date, the date that is the first
anniversary of the Closing Date; and 

     (d) If a Designee Termination Date occurs as a result of anything other than the events described in clause (v) of the definition of Designee Termination Date, the latest of (i) the date that is six
months following such Designee Termination Date, (ii) the date of the resignation (other than the conditional resignation required pursuant to Section 5.5(a) hereof), retirement or removal of the Board Designee from the Board of Directors and (iii)
the date that is the first anniversary of the Closing Date.

     “Subsidiary” when used with respect to any party means any corporation or other organization, whether incorporated or
unincorporated, at least a majority of the securities or other interests of which having by their terms ordinary voting power to elect a majority of the Board of Directors or others performing similar functions with respect to such corporation or
other organization is directly or indirectly owned or controlled by such party or by any one or more of its Subsidiaries, or by such party and one or more of its Subsidiaries. 

     “Swap Agreements” means those two letter agreements referencing “Convertible Note Total Return Swap Transaction”
contemplated to be entered into by and between KKR PEI Solar Holdings I, Ltd., a Cayman Islands limited company, and the Bank Purchaser and KKR PEI Solar Holdings II, Ltd., a Cayman Islands limited company, and the Bank Purchaser in connection with
the transactions contemplated hereby in the form provided by Sponsor to the Company concurrently with the execution of this Agreement (without giving effect to any subsequent amendment thereof unless consented to by the Company).

     “Tax Returns” shall mean returns, reports, information statements and other documentation (including any additional or supporting
material) filed or maintained, or required to be filed or maintained, in connection with the calculation, determination, assessment or collection of any Tax and shall include any amended returns required as a result of examination adjustments made
by the Internal Revenue Service or other Tax authority.

     “Taxes” shall mean any and all federal, state, local, foreign and other taxes, levies, fees, imposts, duties and charges of
whatever kind (including any interest, penalties or additions to the tax imposed in connection therewith or with respect thereto), whether or not imposed on the Company, including, without limitation, taxes imposed on, or measured by, income,
franchise, profits or gross receipts, and also ad valorem, value added, sales, use, service, real or personal property, capital stock, license, payroll, withholding, employment, social security, workers’ compensation, unemployment compensation,
utility, severance, production, excise, stamp, occupation, premium, windfall profits, transfer and gains taxes and customs duties. 

“Third Party” has the meaning set forth in Section 5.6(b)(i) hereof.

	
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     “Transaction Agreements” shall mean this Agreement, the Rights Agreement, the Indentures and the Notes.

“Transfer” has the meaning set forth in Section 7.1(a) hereof. 

“Transfer Instruction” has the meaning set forth in Section 7.1(e) hereof.

“Trustee” shall mean U.S. Bank National Association.

     “Voting Stock” means securities of any class or kind ordinarily having the power to vote generally for the election of directors,
managers or other voting members of the governing body of the Company or any successor thereto.

	 	
2. Authorization, Purchase and Sale of Notes

	 	
.

	 	
2.1 Authorization, Purchase and Sale

     . The Company has authorized (i) the initial sale and issuance to the Purchasers of the Notes and (ii) the issuance of up to 121,343,740 shares of Common Stock to be issued upon the conversion of the
Notes. Subject to and upon the terms and conditions set forth in this Agreement, at the Closing, the Company shall issue and sell to each Purchaser, and each Purchaser, severally, shall purchase from the Company the aggregate principal amount of
2012 Notes and the aggregate principal amount of 2014 Notes set forth opposite the name of such Purchaser under the headings “Principal Amount of 2012 Notes to be Purchased” and “Principal Amount of 2014 Notes to be Purchased,”
respectively, on Exhibit A hereto, at a purchase price equal to the principal amount of Notes purchased. 

	 	
2.2 Closing

     . Subject to the satisfaction or waiver of the conditions set forth in Section 6 of this Agreement, the closing of the purchase and sale of the Notes (the “Closing”) shall take place at the offices of Wilson Sonsini Goodrich & Rosati, 650 Page Mill Road, Palo Alto, CA on January 26, 2007 (the “Closing
Date”). At the Closing, the aggregate principal amount of the Notes shall be reflected in one or more global notes representing the Notes and held by the Depositary Trust Corporation or its nominee (or a custodian
on its behalf) or if such global notes are not available as of the Closing, the Company shall deliver to each Purchaser one or more Note(s) in the aggregate principal amount as set forth opposite such Purchaser’s name on Exhibit A, in each case against payment to the Company of the purchase price therefor by wire transfer to the Company of immediately available funds to an account to be designated by the Company.

3. Representations and Warranties of the Company

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     . Except as set forth in the SEC Reports, the Company hereby represents and warrants to each of the Purchasers as follows: 

	 	
3.1 Organization and Power

     . The Company and each of its Subsidiaries is a corporation or other organization duly organized, validly existing and in good standing (where relevant) under the laws of its jurisdiction of
organization, has the requisite power and authority to own, lease and operate its properties and to carry on its business as now conducted and is qualified to do business in each jurisdiction in which the character of its properties or the nature of
its business requires such qualification, except where such failures of such Subsidiaries to be so organized or existing, or of the Company or its Subsidiaries to be in good standing or to have such power and authority or to so qualify would not
reasonably be expected to have a Material Adverse Effect. 

	
                    3.2 
		
 		
Capitalization 
	
	
. 
		
 		
 
		
 		
 
	
	
 
		
 		
(a) 
		
 		
As of the date of this Agreement, the authorized shares of capital stock 
	

of the Company consist of 7,200,000,000 shares of Common Stock and 10,000,000 shares of preferred stock, par value $0.001 per share (“Preferred Stock”). As
of December 31, 2006, (i) the total number of outstanding shares of Common Stock was 3,541,409,821, the total number of shares of Common Stock issuable pursuant to outstanding options and other rights to acquire Common Stock was 519,757,507 and the
total number of shares of Common Stock maintained for future issuance under the Company’s Benefit Plans (exclusive of outstanding options and other rights to acquire Common Stock) was 362,898,046 and (ii) no shares of Preferred Stock or options
or rights to acquire Preferred Stock were outstanding. Since December 31, 2006 through the date hereof, (i) the Company has only issued options or other rights to acquire Common Stock in the ordinary course of business consistent with past practice
or pursuant to the Call Option and (ii) the only shares of capital stock issued by the Company were pursuant to outstanding options and other rights to purchase Common Stock. All such issued and outstanding shares of Common Stock have been duly
authorized and validly issued and are fully paid and nonassessable. No dividends have been declared or paid with respect to the shares of Common Stock since October 1, 2006.

     (b) As of the date of this Agreement, except as set forth in Section 3.2(a), except for certain option arrangements being entered into in connection with the transactions contemplated hereby (the
“Call Option”), and except for pursuant to the Company’s Benefit Plans, there are no existing options, warrants, calls, preemptive (or similar) rights, subscriptions or other
rights, agreements or commitments obligating the Company to issue, transfer or sell, or cause to be issued, transferred or sold, any capital stock of the Company or any securities convertible into or exchangeable for such capital stock, and there
are no outstanding contractual obligations of the Company to repurchase, redeem or otherwise acquire any of its shares of capital stock. 

- 8 -

     (c) Except as set forth in the Transaction Agreements and the Call Option, the Company has not granted to any Person the right to require the Company to register Common Stock on or after the date of
this Agreement. 

	 	
3.3 Authorization

     . The Company has all requisite corporate power to enter into the Transaction Agreements and to carry out and perform its obligations under the terms of the Transaction Agreements. All corporate
action on the part of the Company, its officers, directors and stockholders necessary for the authorization of the Securities, the authorization, execution, delivery and performance of the Transaction Agreements and the consummation of the
transactions contemplated herein has been taken. The execution, delivery and performance of the Transaction Agreements by the Company, the issuance of the Common Stock upon conversion of the Notes in accordance with their terms and the consummation
of the other transactions contemplated herein do not require any approval of the Company’s stockholders (other than such approval as has already been obtained). Assuming this Agreement constitutes the legal and binding agreement of the
Purchasers, this Agreement constitutes a legal, valid and binding obligation of the Company, enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization,
moratorium and similar laws relating to or affecting creditors generally or by general equity principles (regardless of whether such enforceability is considered in a proceeding in equity or at law). Upon their respective execution by the Company
and the other parties thereto and assuming that they constitute legal and binding agreements of the other parties thereto, each of the Rights Agreement and the Indentures will constitute a legal, valid and binding obligation of the Company,
enforceable against the Company in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws relating to or affecting creditors generally or by general equity
principles (regardless of whether such enforceability is considered in a proceeding in equity or at law).

	 	
3.4 Valid Issuance

     . The Notes being purchased by the Purchasers hereunder will, upon issuance pursuant to the terms hereof and the terms of the Indentures and upon payment therefor, be valid and legally binding
obligations of the Company, enforceable in accordance with their terms and the terms of the Indentures, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws relating to or affecting
creditors generally or by general equity principles (regardless of whether such enforceability is considered in a proceeding in equity or at law). At or prior to the Closing, the Company will have available for issuance the Common Stock issuable
upon conversion of the Notes. The Common Stock to be issued upon conversion of the Notes has been duly authorized, and upon conversion of the Notes all such Common Stock will be validly issued, fully paid and nonassessable. Subject to the accuracy
of the representations made by the Purchasers in Section 4 hereof, the Notes will be issued to the Purchasers in compliance with applicable exemptions from (i) the registration and prospectus delivery requirements of the Securities Act and (ii) the
registration and qualification requirements of all applicable securities laws of the states of the United States. The Company is a Well-Known Seasoned Issuer (as defined in the 

- 9 -

Rights Agreement) and is eligible to file as of the date hereof a registration statement on Form S-3 under the Securities Act. 

	 	
3.5 No Conflict

     . The execution, delivery and performance of the Transaction Agreements by the Company, the issuance of the Common Stock upon conversion of the Notes in accordance with their terms and the
consummation of the other transactions contemplated hereby will not (i) violate any provision of the Certificate of Incorporation or Bylaws of the Company or (ii) conflict with or result in any violation of or default (with or without notice or
lapse of time, or both) under, or give rise to a right of termination, cancellation or acceleration of any obligation, a change of control right or to a loss of a benefit under any agreement or instrument, credit facility, permit, franchise,
license, judgment, order, statute, law, ordinance, rule or regulations, applicable to the Company or its Subsidiaries or their respective properties or assets, except, in the case of clause (ii), as would not, individually or in the aggregate, be
reasonably expected to have a Material Adverse Effect. 

	 	
3.6 Consents

     . All consents, approvals, orders and authorizations required on the part of the Company or its Subsidiaries in connection with the execution, delivery or performance of this Agreement and the Notes
and the issuance of the Common Stock upon conversion of the Notes in accordance with their terms have been obtained or made, other than (i) the expiration or termination of any applicable waiting periods under the HSR Act or any foreign antitrust
requirements in connection with the issuance of Common Stock upon conversion of the Notes and (ii) such consents, approvals, orders and authorizations the failure of which to make or obtain would not reasonably be expected to have a Material Adverse
Effect. 

	
3.7      		
SEC Reports; Financial Statements.	
	 
	 	
(a) The Company has filed all required registration statements,	
	 

prospectuses, reports, schedules, forms, statements and other documents required to be filed by it with the SEC since January 1, 2005. The information contained or incorporated by reference in the SEC Reports was true and correct
in all material respects as of the respective dates of the filing thereof with the SEC (or if amended or superseded by a filing prior to the date of this Agreement, then on the date of such filing); and, as of such respective dates, the SEC Reports
did not contain an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements therein, in light of the circumstances under which they were made, not misleading. All of the
SEC Reports, as of their respective dates, complied as to form in all material respects with the applicable requirements of the Securities Act and the Exchange Act and the rules and regulations promulgated thereunder. 

     (b) The financial statements of the Company included in the SEC Reports (collectively, the “Financial Statements”) fairly present
in all material respects the consolidated financial position of the Company and its Subsidiaries as of the dates indicated, and the results of its operations and cash flows for the periods therein specified, all in accordance with United States

	
- 10 -

generally accepted accounting principles applied on a consistent basis (“GAAP”) throughout the periods therein specified (except as otherwise noted therein, and
in the case of quarterly financial statements except for the absence of footnote disclosure and subject, in the case of interim periods, to normal year-end adjustments). 

     (c) Except as disclosed in the SEC Reports, the Company and its Subsidiaries have not incurred any liabilities that are of a nature that would be required to be disclosed on a balance sheet of the
Company and its Subsidiaries or the footnotes thereto prepared in conformity with GAAP, other than (i) liabilities incurred in the ordinary course of business since October 1, 2006, and (ii) liabilities that would not reasonably be expected to have
a Material Adverse Effect. 

	 	
3.8 Absence of Certain Changes

     . Since June 30, 2006, there have not been any changes, circumstances, conditions or events which, individually or in the aggregate, have had, or would reasonably be expected to have, a Material
Adverse Effect. 

	 	
3.9 Absence of Litigation

     . There is no action, suit, proceeding, arbitration, claim, investigation or inquiry pending or, to the Company’s knowledge, threatened by or before any governmental body against the Company
which, individually or in the aggregate, would reasonably be expected to have a Material Adverse Effect, nor are there any orders, writs, injunctions, judgments or decrees outstanding of any court or government agency or instrumentality and binding
upon the Company or its Subsidiaries that would reasonably be expected to have a Material Adverse Effect. To the Company’s knowledge, the Company is not currently subject to any investigation by any governmental body with respect to any
allegation of “backdating” options granted to any employees or directors that would reasonably be expected to have a Material Adverse Effect.

	 	
3.10 Compliance with Law

. Neither the Company nor its Subsidiaries is in violation of, and the Company and its 

Subsidiaries have not received any notices of violations with respect to, any laws, statutes, ordinances, rules or regulations of any governmental body, court or government agency or instrumentality, except for violations which,
individually or in the aggregate, would not reasonably be expected to have a Material Adverse Effect. 

	 	
3.11 Intellectual Property

. Except as would not reasonably be expected to have a Material Adverse Effect: (a) the 

Company and each of its Subsidiaries owns, or possesses sufficient rights to use, all Intellectual Property necessary for the conduct of its business as currently conducted; (b) to the Company’s knowledge, the use by the
Company and its Subsidiaries of any Intellectual Property used in the conduct of the Company’s and its Subsidiaries’ business as currently conducted does not infringe on

	
- 11 -

or otherwise violate the rights of any Person; (c) the use of any licensed Intellectual Property by the Company or its Subsidiaries is in accordance with applicable licenses pursuant to which the Company or such Subsidiary
acquired the right to use such Intellectual Property and (d) to the knowledge of the Company, no Person is challenging, infringing on or otherwise violating any right of the Company or any of its Subsidiaries with respect to any Intellectual
Property owned by and/or exclusively licensed to the Company or its Subsidiaries.

	 	
3.12 Employee Benefits

. Except as would not be reasonably likely to result in a Material Adverse Effect, each 

Benefit Plan has been established and administered in accordance with its terms and in compliance with the applicable provisions of ERISA, the Code and other applicable laws, rules and regulations. The Company and its Subsidiaries
are in compliance with all federal, state, local and foreign requirements regarding employment, except for any failures to comply that are not reasonably likely, individually or in the aggregate, to have a Material Adverse Effect. As of the date
hereof, there is no material labor dispute, strike or work stoppage against the Company or any of its Subsidiaries pending or, to the knowledge of the Company, threatened which may interfere with the business activities of the Company or any of its
Subsidiaries, except where such dispute, strike or work stoppage is not reasonably likely, individually or in the aggregate, to have a Material Adverse Effect. 

	 	
3.13 Taxes

     . The Company and each of its Subsidiaries have filed all Tax Returns required to have been filed (or extensions have been duly obtained) and have paid all Taxes (as defined below) required to have
been paid by it, except where failure to file such Tax Returns or pay such Taxes would not, individually or in the aggregate, reasonably be expected to have a Material Adverse Effect. 

	 	
3.14 Nasdaq Stock Market

     . Shares of the Common Stock are registered pursuant to Section 12(b) of the Exchange Act and are listed on the Nasdaq Stock Market, and the Company has no action pending to terminate the registration
of the Common Stock under the Exchange Act or delist the Common Stock from Nasdaq Stock Market, nor has the Company received any notification that the SEC or the Nasdaq Stock Market is currently contemplating terminating such registration or
listing. 

	 	
3.15 Company Not an “Investment Company.”

     The Company has been advised of the rules and requirements under the Investment Company Act of 1940, as amended. The Company is not, and immediately after receipt of payment for the Notes will not be,
an “investment company” within the meaning of the Investment Company Act of 1940, as amended. 

	 	
3.16 General Solicitation; No Integration

- 12 -

     . Neither the Company nor any other person or entity authorized by the Company to act on its behalf has engaged in a general solicitation or general advertising (within the meaning of Regulation D of
the Securities Act) of investors with respect to offers or sales of the Notes. The Company has not, directly or indirectly, sold, offered for sale, solicited offers to buy or otherwise negotiated in respect of, any security (as defined in the
Securities Act) which, to its knowledge, is or will be integrated with the Notes sold pursuant to this Agreement.

4. Representations and Warranties of Each Purchaser

     . Each Purchaser, severally for itself and not jointly with the other Purchasers, represents and warrants to the Company as follows (provided, that the representations and warranties in Section 4.6 hereof are also made by KKR PEI with regard to each Sponsor Purchaser): 

	 	
4.1 Organization

     . Such Purchaser is duly organized, validly existing and in good standing under the laws of the jurisdiction of its organization and has the requisite power and authority to own, lease and operate its
properties and to carry on its business as now conducted. 

	 	
4.2 Authorization

     . Such Purchaser has all requisite corporate or similar power to enter into this Agreement and the other Transaction Agreements to which it will be a party and to carry out and perform its obligations
hereunder and thereunder. All corporate, member or partnership action on the part of such Purchaser or its stockholders, members or partners necessary for the authorization, execution, delivery and performance of this Agreement and the other
Transaction Agreements to which it will be a party and the consummation of the other transactions contemplated herein has been taken. Assuming this Agreement constitutes the legal and binding agreement of the Company, this Agreement constitutes a
legal, valid and binding obligation of such Purchaser, enforceable against such Purchaser in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws relating to
or affecting creditors generally or by general equity principles (regardless of whether such enforceability is considered in a proceeding in equity or at law). Upon their respective execution by such Purchaser and the other parties thereto and
assuming that they constitute legal and binding agreements of the Company, each of the other Transaction Agreements to which such Purchaser will be a party will constitute a legal, valid and binding obligation of such Purchaser, enforceable against
such Purchaser in accordance with its terms, except as such enforceability may be limited by bankruptcy, insolvency, reorganization, moratorium and similar laws relating to or affecting creditors generally or by general equity principles (regardless
of whether such enforceability is considered in a proceeding in equity or at law). 

	 	
4.3 No Conflict

. The execution, delivery and performance of the Transaction Agreements by such 

Purchaser, the issuance of the Common Stock upon conversion of the Notes in accordance with their

	
- 13 -

terms and the consummation of the other transactions contemplated hereby will not conflict with or result in any violation of or default by such Purchaser (with or without notice or lapse of time, or both) under, or give rise to a
right of termination, cancellation or acceleration of any obligation, a change of control right or to a loss of a material benefit under (i) any provision of the organizational documents of such Purchaser or (ii) any agreement or instrument, credit
facility, permit, franchise, license, judgment, order, statute, law, ordinance, rule or regulations, applicable to such Purchaser or its respective properties or assets, except, in the case of clause (ii), as would not, individually or in the
aggregate, be reasonably expected to materially delay or hinder the ability of such Purchaser to perform its obligations under the Transaction Agreements (a “Purchaser Adverse Effect”). 

	 	
4.4 Consents

     . All consents, approvals, orders and authorizations required on the part of such Purchaser in connection with the execution, delivery or performance of this Agreement and the Notes, the issuance of
the Common Stock upon conversion of the Notes in accordance with their terms and the consummation of the other transactions contemplated herein have been obtained or made, other than (i) the expiration or termination of the applicable waiting period
under the HSR Act or any foreign antitrust requirements in connection with the issuance of Common Stock upon conversion of the Notes and (ii) such consents, approvals, orders and authorizations the failure of which to make or obtain, individually or
in the aggregate, would not reasonably be expected to have a Purchaser Adverse Effect. 

	 	
4.5 Absence of Litigation

     . There is no action, suit, proceeding, arbitration, claim, investigation or inquiry pending or, to such Purchaser’s knowledge, threatened by or before any governmental body against such
Purchaser which, individually or in the aggregate, would reasonably be expected to have a Purchaser Adverse Effect, nor are there any orders, writs, injunctions, judgments or decrees outstanding of any court or government agency or instrumentality
and binding upon such Purchaser that would reasonably be expected to have a Purchaser Adverse Effect.

	 	
4.6 Purchasers’ Financing

     . At the Closing, such Purchaser will have all funds necessary to pay to the Company the purchase price for the Notes being purchased by such Purchaser hereby in immediately available funds.

	 	
4.7 Brokers

     . Such Purchaser has not retained, utilized or been represented by any broker or finder in connection with the transactions contemplated by this Agreement whose fees the Company would be required to
pay (other than pursuant to the reimbursement of expenses provisions of Section 9.7 hereof). 

	 	
4.8 Purchase Entirely for Own Account

	
- 14 -

     . Such Purchaser is acquiring the Securities for its own account, except as contemplated by the Swap Agreements and the Security Agreements, and not with a view to, or for sale in connection with, any
distribution of the Securities in violation of the Securities Act. Except as contemplated by the Swap Agreements and the Security Agreements, such Purchaser has no present agreement, undertaking, arrangement, obligation or commitment providing for
the disposition of the Securities.

	 	
4.9 Investor Status

. Such Purchaser certifies and represents to the Company that such Purchaser is an 

“accredited investor” as defined in Rule 501 of Regulation D promulgated under the Securities Act. Such Purchaser’s financial condition is such that it is able to bear the risk of holding the Notes for an indefinite
period of time and the risk of loss of its entire investment. Such Purchaser has been afforded the opportunity to ask questions of and receive answers from the management of the Company concerning this investment (except in the case of Bank
Purchaser who is purchasing the Notes to be purchased by it hereunder for the account of and at the request of the Sponsor Purchasers and for the purpose of entering into the transactions contemplated by the Swap Agreements and the Security
Agreements) and has sufficient knowledge and experience in investing in companies similar to the Company so as to be able to evaluate the risks and merits of its investment in the Company. 

	 	
4.10 Securities Not Registered

. Such Purchaser understands that the Securities have not been registered under the 

Securities Act, by reason of their issuance by the Company in a transaction exempt from the registration requirements of the Securities Act, and that the Securities must continue to be held by such Purchaser unless a subsequent
disposition thereof is registered under the Securities Act or is exempt from such registration. Such Purchaser understands that the exemptions from registration afforded by Rule 144 (the provisions of which are known to it) promulgated under the
Securities Act depend on the satisfaction of various conditions, and that, if applicable, Rule 144 may afford the basis for sales only in limited amounts. 

	 	
5. Covenants

	 	
.

	 	
5.1 HSR Approval

. The Company and the Sponsor Purchasers acknowledge that one or more filings under the 

HSR Act may be necessary in connection with the issuance of shares of Common Stock upon conversion of the Notes. The Sponsor Purchasers shall be solely responsible for determining whether any filings under the HSR Act or any
foreign antitrust requirements may be necessary in connection with any conversion of Notes held by them and will promptly notify the Company if any such filing is required. To the extent required, the Company will cooperate with the Sponsor
Purchasers in making any required filings under the HSR Act or any foreign antitrust requirements in connection with the issuance of shares of Common Stock upon conversion of Notes held by Sponsor Purchasers and the Company and the applicable
Sponsor Purchaser(s) shall share equally in the payment of the 

	
- 15 -

filing fees associated with any such filings. For the avoidance of doubt, any delivery of shares of Common Stock upon conversion of the Notes shall be subject to the terms and conditions of the Indentures, including all such terms
relating to compliance with the HSR Act or any foreign antitrust requirements.

	 	
5.2 Shares Issuable Upon Conversion

     . The Company will at all times have and keep available for issuance such number of shares of Common Stock as shall be sufficient to permit the conversion of the Notes into Common Stock as provided
for in the Notes and Indentures, including as may be adjusted for share splits, combinations or other similar transactions. The Company will cause any Common Stock issued upon conversion of the Notes to be listed with The Nasdaq Stock Market or such
other stock exchange or quotation system on which the Common Stock may then be listed by the Company. 

	 	
5.3 PORTAL and CUSIPs

. The Company will use its reasonable best efforts to (a) permit the Notes to be designated 

PORTAL securities in accordance with the rules and regulations adopted by the NASD relating to the PORTAL Market as of the Closing or as promptly as practicable thereafter and (b) obtain all necessary Committee on Uniform
Securities Identification Procedures numbers (CUSIP numbers) for the Notes required for creating a market in Notes traded pursuant to Rule 144A under the Securities Act or which are not “restricted securities” for purposes of Rule 144
under the Securities Act. Each Purchaser will provide all reasonable assistance and cooperation as may be requested by the Company to effectuate the intent and purposes of this Section 5.3. The Company will use its reasonable best efforts to cause
all Notes Beneficially Owned by the Purchasers to be issued (at the Closing and, failing that, as promptly as practicable thereafter) as an interest in the IAI Global Note (as defined in the applicable Indenture). Any interest in the IAI Global Note
(as defined in the applicable Indenture) will be held through a brokerage account established and maintained with the Bank Purchaser; provided, however, that three months following the later of the Designee Termination Date or such time as Sponsor ceases to have an Affiliate or designee on the Board of Directors, the requirement set forth in this
sentence shall terminate and, to the extent permitted by the Depositary Trust Corporation and the registrar for the Notes, such ownership interest may be transferred into the Restricted Global Note (as defined in the applicable
Indenture).

	 	
5.4 Further Assurances

     . Each party agrees to cooperate with each other and their respective officers, employees, attorneys, accountants and other agents, and, generally, do such other reasonable acts and things in good
faith as may be necessary to effectuate the intents and purposes of this Agreement, subject to the terms and conditions hereof and compliance with applicable law, including taking reasonable action to facilitate the filing of any document or the
taking of reasonable action to assist the other parties hereto in complying with the terms hereof.

	 	
5.5 Board Designee

- 16 -

	 	
.

     (a) Sponsor shall have the right to nominate pursuant to the terms and subject to the conditions of this Section 5.5 one nominee to the Company’s Board of Directors (the “Board Designee”). At the meeting of the Board of Directors scheduled for January 31, 2007, or within two months thereafter, the Company shall appoint the Board Designee to the Board of Directors and
shall, if necessary, expand its Board of Directors by one member to create a vacancy for such purpose; provided, however, that no such appointment shall be required unless such nominee shall (i) be qualified and suitable to serve as a member of the
Board of Directors under all applicable corporate governance policies or guidelines of the Company and the Board of Directors and applicable legal, regulatory and stock market requirements, (ii) meet the independence requirements with respect to the
Company of Section 4200(a)(15) of the Rules of the Nasdaq Stock Market or any successor thereto, and (iii) be acceptable to the Board of Directors (including the Corporate Governance and Nominating Committee of the Board of Directors) in its good
faith discretion. As of the date hereof, the Sponsor has designated Michael Marks as a nominee for Board Designee. The Sponsor will take all necessary action to cause any nominee for Board Designee to make himself or herself reasonably available for
interviews, to consent to such reference and background checks or other investigations and to provide such information (including information necessary to determine the nominee’s independence status under various requirements and institutional
investor guidelines as well as information necessary to determine any disclosure obligations of the Company) as the Board of Directors or its Corporate Governance and Nominating Committee may reasonably request. Provided that the Board Designee then
meets the requirements set forth in the second sentence of this Section 5.5(a) and the Sponsor Purchasers, collectively, then Own at least $350 million principal amount of the Notes, the Company shall nominate the Board Designee for re-election
as a director at the end of each term of such Board Designee as part of the slate proposed by the Company that is included in the proxy statement (or consent solicitation or similar document) of the Company relating to the election of the Board of
Directors. In the event that the Board Designee ceases to be a member of the Board of Directors, so long as the Sponsor Purchasers, collectively, Own at least $350 million principal amount of the Notes, Sponsor may select another person as a
nominee for Board Designee to fill the vacancy created thereby and, if the Board of Directors determines that such nominee meets the criteria set forth in the second sentence of this Section 5.5(a), such nominee shall become the Board Designee and
shall be appointed to fill such vacancy. It shall be a condition to the appointment or nomination for election or re-election of any Board Designee that such Board Designee tender a conditional resignation letter prior to his or her appointment or
nomination for election or re-election to the Board of Directors providing such Board Designee’s irrevocable offer of resignation from the Board of Directors effective upon the Designee Termination Date or upon such other circumstances as may
be provided for under the corporate governance policies or guidelines of the Company or the Board of Directors; provided, that the Board Designee shall not be required to submit his or her
conditional resignation from the Board of Directors under circumstances provided for under any such guideline added after the date hereof which would in its practical application discriminatorily affect only the Sponsor Purchasers and their
Affiliates and which is not reasonably supported by a rational legal or business purpose unrelated to the Sponsor Purchasers’ investment in the Securities (except as may be required by legal

- 17 -

or regulatory requirements) other than discriminatory treatment of the Sponsor Purchasers and their Affiliates. 

     (b) The Board Designee shall be subject to the policies and requirements of the Company and its Board of Directors, including the Corporate Governance Guidelines of the Board of Directors and the
Company’s Standards of Business Conduct, in a manner consistent with the application of such policies and requirements to other members of the Board of Directors. The Company shall indemnify the Board Designee and provide the Board Designee
with director and officer insurance to the same extent it indemnifies and provides insurance for the members of the Board of Directors pursuant to its organizational documents, applicable law or otherwise. 

     (c) All obligations of the Company pursuant to this Section 5.5 shall terminate upon the first to occur of: (i) such time as the Sponsor Purchasers, collectively, do not Own at least $350 million
principal amount of the Notes, (ii) the Company sells all or substantially all of its assets, (iii) any Person or “group” (as such term is used in Section 13 of the Exchange Act), directly or indirectly, obtains Beneficial Ownership of 50%
or more of the total outstanding voting power of the Voting Stock, (iv) the Company participates in any merger, consolidation or similar transaction unless immediately following the consummation of such transaction the stockholders of the Company
immediately prior to the consummation of such transaction continue to hold (in substantially the same proportion as their ownership of the Company’s voting stock immediately prior to the transaction) more than 50% of all of the outstanding
common stock or other securities entitled to vote for the election of directors of the surviving or resulting entity in such transaction, (v) the Sponsor irrevocably waives and terminates all of its rights under this Section 5.5, (vi) the Board
Designee is removed from the Board of Directors for cause by the stockholders of the Company or (vii) the Company delivers written notice that Sponsor or any Sponsor Purchaser has breached the terms of this Agreement in any material respect and the
Sponsor Purchaser does not cure any such breach within 10 days of such notice, provided that no cure period shall apply if such breach is of a nature which cannot be cured. The date of termination pursuant to this clause (c) of the obligations of
the Company pursuant to this Section 5.5 is sometimes referred to herein as the “Designee Termination Date”).

	
                    5.6 
		
 		
Standstill 
	
	
. 
		
 		
 
		
 		
 
	
	
 
		
 		
(a) 
		
 		
Sponsor agrees that, until the Standstill Termination Date, without the 
	

prior consent of the Board of Directors (excluding any Board Designee), Sponsor shall not and Sponsor shall cause each of its Affiliates not to, directly or indirectly:

     (i) acquire or Beneficially Own Voting Stock or authorize or make any offer to acquire Voting Stock, if the effect of such acquisition or offer (if consummated) would be to increase the percentage of
the Voting Stock represented by all shares of Voting Stock Beneficially Owned by Sponsor and its Affiliates to more than 5% of the Voting Stock outstanding (not including any Common Stock received by a Purchaser upon conversion of any
Note);

- 18 -

     (ii) authorize, commence, encourage, support or endorse any tender offer or exchange offer for shares of Voting Stock;

     (iii) make, or in any way participate, directly or indirectly, in any “solicitation” of “proxies” to vote (as such terms are used in the rules of the SEC), or seek to advise or
influence any Person with respect to the voting of any Voting Stock;

     (iv) publicly announce or submit to the Company a proposal or offer concerning (with or without conditions) any extraordinary transaction involving the Company or any successor thereto, any Subsidiary
or division thereof, or any of their securities or assets; 

     (v) form, join or in any way participate in a “group” as defined in Section 13(d)(3) of the Exchange Act, for the purpose of acquiring, holding, voting or disposing of any securities of the
Company; 

     (vi) take any action that could reasonably be expected to require the Company or any successor thereto to make a public announcement regarding the possibility of any of the events described in clauses
(i) through (v) above; 

	
 
		
 		
(vii) 
		
 		
enter into any arrangements with any third party concerning 
	
	
any of the foregoing; or 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
(viii) 
		
 		
request the Company or any of its Representatives, directly or 
	

indirectly, to amend or waive any provision of this Section 5.6.

     (b) The restrictions set forth in Section 5.6(a) will not apply if any of the following occurs (provided, that if any event described in this
Section 5.6(b) occurs and, during the twelve month period following such event, none of the transactions described in clauses (ii), (iii) or (iv) of the definition of Designee Termination Date has occurred, then the restrictions set forth in Section
5.6(a) will thereafter resume and continue to apply if a Board Designee is then serving as a member of the Board of Directors, provided, further, at the time of any such resumption of the restrictions set forth in Section 5.6(a), if the number of shares of Voting Stock then owned by Sponsor and its Affiliates then exceeds 5% of the Voting Stock outstanding (not including any
Common Stock received by a Purchaser upon conversion of any Notes), neither Sponsor nor any of its Affiliates shall be required to dispose of any shares of Voting Stock Beneficially Owned by them but, in such event, neither Sponsor nor any of its
Affiliates may then acquire Beneficial Ownership of additional Voting Stock (other than Common Stock received by a Purchaser upon conversion of any Notes) unless the Beneficial Ownership percentage of Sponsor and its Affiliates would, following such
acquisition, be an amount below 5% of the Voting Stock then outstanding (not including any Common Stock received by a Purchaser upon conversion of any Notes)):

     (i) a third party who is not an Affiliate of Sponsor (a “Third Party”) commences (within the meaning of Rule 14d-2 under the
Exchange Act) a bona fide tender or exchange offer for more than 50% of the outstanding Voting Stock and the Board of Directors 

- 19 -

does not recommend against the tender or exchange offer within ten (10) business days after the commencement thereof or such longer period as shall then be permitted under SEC rules; or

	
 
		
 		
(ii) 
		
 		
a Third Party acquires beneficial ownership of 50% of the 
	
	
outstanding Voting Stock; 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
(iii) 
		
 		
the Company enters into an agreement pursuant to which a 
	

Third Party would acquire all or substantially all of the stock or assets of the Company or the Company would be merged or consolidated with another Person, unless immediately following the consummation of such transaction the
stockholders of the Company immediately prior to the consummation of such transaction would continue to hold (in substantially the same proportion as their ownership of the Company’s voting stock immediately prior to the transaction) more than
50% of all of the outstanding common stock or other securities entitled to vote for the election of directors of the surviving or resulting entity in such transaction or any direct or indirect parent thereof; or

     (iv) the Company publicly announces that it is exploring strategic alternatives, or makes any similar public announcement indicating that it is actively seeking a “sale” of the Company and,
in any such event, such announcement is made with the approval of the Board of Directors.

     (c) Nothing in clause (ii) or clause (v) of Section 5.6(a) shall be construed to prohibit the Board Designee from confidentially, in good faith and in the performance of his or her duties as a member
of the Board of Directors, discussing a proposal made by the Company or a Third Party concerning any extraordinary transaction involving the Company or any successor thereto, any Subsidiary or division thereof, or any of their securities or assets,
with the Board of Directors and representatives of the Company and its advisors who are involved in the evaluation or execution of any such proposal on behalf of the Company.

     (d) Upon an increase in the Beneficial Ownership percentage of Sponsor and its Affiliates to an amount in excess of 5% of the Voting Stock outstanding (not including any Common Stock received by a
Purchaser upon conversion of any Notes) resulting solely from a repurchase or redemption of Voting Stock by the Company or any similar transaction that reduces the number of outstanding shares of Voting Stock of the Company, neither Sponsor nor any
of its Affiliates shall be required to dispose of any Securities Beneficially Owned by them; provided, however, that in such event,
neither Sponsor nor any of their Affiliates may acquire Beneficial Ownership of additional Voting Stock (other than Common Stock received by a Purchaser upon conversion of any Notes) unless the Beneficial Ownership percentage of Sponsor and its
Affiliates would, following such acquisition, be an amount below 5% of the Voting Stock then outstanding (not including any Common Stock received by a Purchaser upon conversion of any Notes).

     (e) Sponsor and each Sponsor Purchaser agree that, until the Standstill Termination Date, they shall promptly notify the Company of any new acquisition or disposition, or entry into any agreement or
arrangement which could reasonably result in any new acquisition or disposition, of Beneficial Ownership of Voting Stock or Securities by Sponsor or any of its Affiliates, including the material details thereof. 

	
- 20 -

     (f) Notwithstanding anything to the contrary provided elsewhere herein, Affiliates of the Sponsor not engaged in the private equity business (“Non-Investor
Affiliates”) shall not be considered “Affiliates” for purposes of this Section 5.6 if any actions taken by them are not taken under the direction of Sponsor or any of its Affiliates (other than
Non-Investor Affiliates) or any officer or general partner of Sponsor or any of its Affiliates (other than Non-Investor Affiliates) and if Confidential Information is not made available to such Non-Investor Affiliates or their
Representatives.

	 	
6. Conditions Precedent

	 	
.

6.1 Conditions to the Obligation of the Purchasers to Consummate the Closing

     . The several obligations of each Purchaser to consummate the transactions to be consummated at the Closing, and to purchase and pay for the Notes being purchased by it at the Closing pursuant to this
Agreement, are subject to the satisfaction of the following conditions precedent (provided that if the Sponsor Purchasers do not consummate the transactions contemplated by the Swap Agreements as of the Closing, they shall be deemed to have assumed
all of the obligations of the Bank Purchaser hereunder and the Bank Purchaser shall be deemed to have assigned all of its rights hereunder to the Sponsor Purchasers and shall be released from all obligations hereunder without payment of penalty to
the Company): 

     (a) The representations and warranties of the Company contained herein shall be true and correct on and as of the Closing Date with the same force and effect as though made on and as of the Closing
Date (it being understood and agreed by each Purchaser that for purposes of this Section 6.1(a), in the case of any representation and warranty of the Company contained herein (i) which is not hereinabove qualified by application thereto of a
materiality standard, such representation and warranty need be true and correct only in all material respects or (ii) which is made as of a specific date, such representation and warranty need be true and correct only as of such specific date).

     (b) The Company shall have performed in all material respects all obligations and conditions herein required to be performed or observed by the Company on or prior to the Closing Date. 

     (c) Each Purchaser shall have received a certificate, dated the Closing Date, signed by the Chief Executive Officer or the Chief Financial Officer of the Company, certifying on behalf of the Company
that the conditions specified in the foregoing Sections 6.1(a) and (b) have been fulfilled. 

     (d) The purchase of and payment for the Notes by each Purchaser shall not be prohibited or enjoined by any law or governmental or court order or regulation. 

- 21 -

	
 
		
 		
(e) 
		
 		
The Company and the Trustee shall have executed and delivered the 
	
	
Indentures. 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
(f) 
		
 		
The Company shall have executed and delivered the Registration 
	

Rights Agreement in the form attached hereto as Exhibit C (the “Rights Agreement”).

     (g) The Purchasers shall have received from counsel to the Company, an opinion substantially in the form attached hereto as Exhibit D.

6.2 Conditions to the Obligation of the Company to Consummate the Closing

. The obligation of the Company to consummate the transactions to be consummated at the 

Closing, and to issue and sell to each Purchaser the Notes to be purchased by it at the Closing pursuant to this Agreement, is subject to the satisfaction of the following conditions precedent: 

     (a) The representations and warranties contained herein of each Purchaser shall be true and correct on and as of the Closing Date, with the same force and effect as though made on and as of the
Closing Date (it being understood and agreed by the Company that, in the case of any representation and warranty of a Purchaser contained herein which is not hereinabove qualified by application thereto of a materiality standard, such representation
and warranty need be true and correct only in all material respects). 

     (b) Each Purchaser shall have performed in all material respects all obligations and conditions herein required to be performed or observed by such Purchaser on or prior to the Closing Date.

     (c) The Company shall have received a certificate, dated the Closing Date, on behalf of each Purchaser, signed by an officer thereof, certifying on behalf of each Purchaser that the conditions
specified in the foregoing Sections 6.2(a) and (b) have been fulfilled. 

     (d) The purchase of and payment for the Notes by each Purchaser shall not be prohibited or enjoined by any law or governmental or court order or regulation. 

	
(e)      		
The Trustee shall have executed and delivered the Indentures.	
	 
	
(f)      		
Each Purchaser shall have executed and delivered the Rights	
	 

	
Agreement.

	 	
7. Transfer of the Securities

	 	
.

	 	
7.1 Transfer Restrictions

	 	
.

- 22 -

     (a) No Sponsor Purchaser shall sell, assign, pledge, loan, hedge, transfer or otherwise dispose or encumber (collectively, “Transfer”) any of the Securities during the period commencing on the Closing Date and ending three months following the Closing Date (such three month period, the “Restricted Period”), except for Transfers to an Affiliated Entity, in each case that delivers a written instrument to the Company in form and substance reasonably satisfactory to the Company confirming that the transferee is subject to the
obligations of this Agreement (including the obligations contained in this Section 7) and is a Sponsor Purchaser hereunder (it being acknowledged and understood that no such Transfer by a Sponsor Purchaser shall relieve such Sponsor Purchaser from
its obligations or liabilities pursuant to this Agreement) (a “Permitted Transfer”) and except for the pledge of the Notes pursuant to the Security Agreements. 

     (b) Following the Restricted Period, no Sponsor Purchaser may Transfer any of the Securities except (1) pursuant to and in compliance with a Sponsor Supported Distribution (as defined in the Rights
Agreement), (2) at a time when trades in the Company’s securities are permitted pursuant to Section 7.1(c) below and in any event only pursuant to (i) a Transfer to the Company, (ii) a Permitted Transfer, (iii) a Transfer to a transferee that
is not Sponsor or an Affiliate of Sponsor, pursuant to an effective registration statement under the Securities Act, (iv) solely if no registration statement under the Securities Act is available for such sale, a Transfer to a “qualified
institutional buyer” that is not Sponsor or an Affiliate of Sponsor pursuant to Rule 144A under the Securities Act or (v) a Transfer to a transferee that is not Sponsor or an Affiliate of Sponsor pursuant to Rule 144 under the Securities Act or
pursuant to Regulation S under the Securities Act and (in the case of (v) only), if requested by the Company, upon delivery by such Sponsor Purchaser of an opinion of counsel reasonably satisfactory to the Company to the effect that the proposed
transfer is exempt from registration under the Securities Act and applicable state securities laws. The Company shall not register any Transfer of the Securities in violation of this Section 7.1. The Company may, and may instruct any transfer agent
for the Company to, place such stop transfer orders as may be required on the transfer books of the Company in order to ensure compliance with the provisions of this Section 7.1. 

     (c) Sponsor and each Sponsor Purchaser agree that, until the Policy Termination Date and except as otherwise permitted pursuant to a Sponsor Supported Distribution (as defined in the Rights Agreement)
pursuant to the Rights Agreement, Sponsor and any Affiliate of Sponsor will be subject to all trading and hedging restrictions to which any Board Designee is or would be subject, including the requirements of Section 16(c) of the Exchange Act and
the Company’s Market Communications and Stock Trading Policy; provided, that Sponsor and its Affiliates shall not be required to comply with any restriction on trading of securities of
the Company which is added to any policy of the Company by amendment or adoption after the date hereof which would in its practical application discriminatorily affect only Sponsor and its Affiliates and which is not reasonably supported by a
rational legal or business purpose unrelated to the Sponsor Purchasers’ investment in the Securities (except as may be required by legal or regulatory requirements) other than discriminatory treatment of Sponsor and its Affiliates. Sponsor
shall cause each of its Affiliates to comply with the restrictions set forth in this Section 7.1(c) and shall be responsible for any action or inaction by any of its Affiliates that is contrary to the terms of this Section 7.1(c). Sponsor agrees
that it and its Affiliates shall obtain pre-approval of Transfers to the 

- 23 -

extent required under such policies. The Company will use commercially reasonable efforts to respond as promptly as reasonably practicable to any request for pre-approval of Transfers by Sponsor and its Affiliates. Notwithstanding
anything to the contrary provided herein, Non-Investor Affiliates shall not be considered “Affiliates” for purposes of this Section 7.1(c) if any actions taken by them that would otherwise be prohibited by this Section 7.1(c) are not taken
under the direction of Sponsor or any Affiliate (other than Non-Investor Affiliates) of Sponsor or any officer or general partner of Sponsor or any Affiliate (other than Non-Investor Affiliates) of Sponsor and if Confidential Information is not made
available to such Non-Investor Affiliates or their Representatives.

     (d) The restrictions set forth in this Section 7.1 shall be in addition to the applicable transfer restrictions or other requirements set forth in the Indentures and the Purchasers acknowledge and
agree to be bound thereby.

     (e) No Bank Purchaser shall Transfer any of the Securities except pursuant to a written instruction by the Sponsor Purchasers (which shall include settlement elections under the Swap Agreements
(including in connection with a Swap Default where no such election is made)) (a “Transfer Instruction”) or pursuant to a Bank Purchaser Transfer Event. The Sponsor shall not issue
or deliver a Transfer Instruction to a Bank Purchaser with respect to any Transfer that would, as to timing, manner of sale or otherwise, not be permitted to be made by a Sponsor Purchaser at such time pursuant to this Section 7.1 and will promptly
notify the Company of any delivery of a Transfer Instruction to a Bank Purchaser and the terms thereof; provided that nothing in this Section 7.1 shall be deemed to prohibit or restrict the delivery of Notes by the Bank Purchaser to an Affiliated
Entity at any time in accordance with Section 7.1(a) hereof and the terms of the Swap Agreements.

     (f) The Bank Purchaser shall not knowingly permit any Transfer of ownership of interests in any Securities held in or through a brokerage account with the Bank Purchaser in violation of the
restrictions set forth in this Section 7.1 or the Indentures; provided, however, that the Bank Purchaser may rely on written
assurances from the Sponsor Purchasers that any such Transfer is in compliance with this Section 7.1 and the Indentures. Each of the Purchasers acknowledges and agrees that the Bank Purchaser shall promptly provide to the Company all information
known to it concerning the ownership of interests in the IAI Global Note (as defined in the Indenture) held in or through any such account by the Sponsor Purchasers (or held by the Bank Purchaser pursuant to the terms of any of the Swap Agreements
or the Security Agreements) as the Company may reasonably request and shall promptly provide all material information known to it concerning any transfers thereof promptly following the occurrence of any such transfer (including providing copies of
any written assurances referred to in the first sentence of this Section 7.1(f)). Each of the Purchasers agrees that it will provide the Company with all information known to it concerning Beneficial Ownership in Securities of such Purchaser for its
account as the Company may reasonably request and will provide the Company with all material information known to it concerning any Transfers thereof promptly following the occurrence of any such Transfer.

	 	
8. Termination

- 24 -

	 	
.

	 	
8.1 Conditions of Termination

     . Notwithstanding anything to the contrary contained herein, this Agreement may be terminated at any time before the Closing (a) by mutual consent of the Company and the Sponsor Purchasers, or (b) by
either party hereto if the Closing shall not have occurred on or prior to 1:00 

	
p.      		
m., California time, on the seventh day following the date hereof. 8.2 Effect of Termination	
	 

     . In the event of any termination pursuant to Section 8.1 hereof, this Agreement shall become null and void and have no effect, with no liability on the part of the Company or the Purchasers, or their
directors, officers, agents or stockholders, with respect to this Agreement, except for liability for any willful breach of this Agreement. 

	 	
9. Miscellaneous Provisions

	 	
.

	 	
9.1 Public Statements or Releases

     . Neither the Company nor any Purchaser shall make any public announcement with respect to the existence or terms of this Agreement or the transactions provided for herein without the prior approval
of the other parties, which shall not be unreasonably withheld or delayed. Notwithstanding the foregoing, nothing in this Section 9.1 shall prevent any party from making any public announcement it considers necessary in order to satisfy its
obligations under the law or under the rules of any national securities exchange. 

	 	
9.2 Interpretation

     . The words “hereof,” “herein” and “hereunder” and words of similar import when used in this Agreement will refer to this Agreement as a whole and not to any particular
provision of this Agreement, and section and subsection references are to this Agreement unless otherwise specified. The headings in this Agreement are included for convenience of reference only and will not limit or otherwise affect the meaning or
interpretation of this Agreement. Whenever the words “include,” “includes” or “including” are used in this Agreement, they will be deemed to be followed by the words “without limitation.” The phrases “the
date of this Agreement,” “the date hereof” and terms of similar import, unless the context otherwise requires, will be deemed to refer to the date set forth in the first paragraph of this Agreement. The meanings given to terms defined
herein will be equally applicable to both the singular and plural forms of such terms. All matters to be agreed to by any party hereto must be agreed to in writing by such party unless otherwise indicated herein.

References to agreements, policies, standards, guidelines or instruments, or to statutes or regulations, are to such agreements, policies, standards, guidelines or instruments, or statutes or regulations, as amended or
supplemented from time to time (or to successors thereto).

- 25 -

	 	
9.3 Notices

     . Any notices or other communications required or permitted to be given hereunder shall be in writing and shall be deemed to be given when delivered in person or by private courier with receipt, if
telefaxed when verbal or email confirmation from the recipient is received, or three (3) days after being deposited in the United States mail, first-class, registered or certified, return receipt requested, with postage paid and, 

	 	
if to the Company, addressed as follows:

	 	
Sun Microsystems, Inc.

4150 Network Circle

Santa Clara, CA 95054

Attention: Michael Lehman

Facsimile: (650) 786-8608

	 	
with copies to:

	 	
Sun Microsystems, Inc.

4150 Network Circle

Santa Clara, CA 95054

Attention: Michael Dillon

Facsimile: (650) 786-2368

	 	
and

	 	
Wilson Sonsini Goodrich & Rosati

650 Page Mill Road

Palo Alto, CA 94304 

Attention: John A. Fore, Esq. 

Facsimile: 415-493-6811 

if to any Purchaser, addressed as set forth in Exhibit A for such Purchaser with a copy to:

	 	
Simpson Thacher & Bartlett LLP

425 Lexington Ave.

New York, NY 10017

Attention: William R. Dougherty, Esq.

Facsimile: (212) 455-2502

	 	
if to Sponsor, addressed as follows:

	 	
Kohlberg Kravis Roberts & Co., L.P.

9 West 57th Street

New York, NY 10019

	
- 26 -

	 	
Attention: Christopher Lee

Facsimile: (212) 750-0003

	 	
with a copy to:

	 	
Simpson Thacher & Bartlett LLP

425 Lexington Ave.

New York, NY 10017

Attention: William R. Dougherty, Esq.

Facsimile: (212) 455-2502

     Any Person may change the address to which notices and communications to it are to be addressed by notification as provided for herein. 

	 	
9.4 Severability

     . If any part or provision of this Agreement is held unenforceable or in conflict with the applicable laws or regulations of any jurisdiction, the invalid or unenforceable part or provisions shall be
replaced with a provision which accomplishes, to the extent possible, the original business purpose of such part or provision in a valid and enforceable manner, and the remainder of this Agreement shall remain binding upon the parties hereto.

	 	
9.5 Governing Law.

     (a) This Agreement shall be governed by, and construed in accordance with, the laws of the State of Delaware. 

     (b) The Company and each of the Purchasers hereby irrevocably and unconditionally: 

(i) submits for itself and its property in any legal action or 

proceeding relating solely to this Agreement or the transactions contemplated hereby, to the general jurisdiction of the Chancery Court of the State of Delaware, and appellate courts thereof; 

     (ii) consents that any such action or proceeding may be brought in such courts, and waives any objection that it may now or hereafter have to the venue of any such action or proceeding in any such
court or that such action or proceeding was brought in an inconvenient court and agrees not to plead or claim the same to the extent permitted by applicable law; 

     (iii) agrees that service of process in any such action or proceeding may be effected by mailing a copy thereof by registered or certified mail (or any substantially similar form of mail), postage
prepaid, to the party, as the case may be, at its address set forth in Section 9.3 or at such other address of which the other party shall have been notified pursuant thereto; 

- 27 -

     (iv) agrees that nothing herein shall affect the right to effect service of process in any other manner permitted by law or shall limit the right to sue in any other jurisdiction for recognition and
enforcement of any judgment or if jurisdiction in the courts referenced in the foregoing clause (i) are not available despite the intentions of the parties hereto; 

     (v) agrees that final judgment in any such suit, action or proceeding brought in such a court may be enforced in the courts of any jurisdiction to which such party is subject by a suit upon such
judgment, provided that service of process is effected upon such party in the manner specified herein or as otherwise permitted by law; 

     (vi) agrees that to the extent that such party has or hereafter may acquire any immunity from jurisdiction of any court or from any legal process with respect to itself or its property, such party
hereby irrevocably waives such immunity in respect of its obligations under this Agreement, to the extent permitted by law; and

     (vii) irrevocably and unconditionally waives trial by jury in any legal action or proceeding in relation to this Agreement.

	 	
9.6 Waiver

     . No waiver of any term, provision or condition of this Agreement, whether by conduct or otherwise, in any one or more instances, shall be deemed to be, or be construed as, a further or continuing
waiver of any such term, provision or condition or as a waiver of any other term, provision or condition of this Agreement. 

	 	
9.7 Expenses; Transaction Fee

     . The Company shall pay the reasonable and documented out-of-pocket fees and expenses incurred by the Purchasers in connection with the proposed investment by Sponsor and its Affiliates in the
Company. On the Closing Date, the Company shall pay such fees and expenses upon receipt from Sponsor of written notice detailing such fees and expenses, together with appropriate supporting documentation evidencing the calculation of the amount of
such fees and expenses. In addition, on the Closing Date, the Company shall pay an Affiliate of Sponsor designated by Sponsor a transaction fee equal to one percent (1%) of the principal amount of the Notes sold at the Closing. For the avoidance of
doubt, such payments do not reflect compensation for any accounting, consulting, legal, investment banking, advisory or other services rendered by Sponsor. 

	 	
9.8 Assignment

     . Except for the assumption of obligations of a transferee pursuant to a Permitted Transfer, none of the parties may assign its rights or obligations under this Agreement or designate another person
(i) to perform all or part of its obligations under this Agreement or (ii) to have all or part of its rights and benefits under this Agreement, in each case without the prior written consent of the (x) Company and (y) Sponsor. In the event of any
assignment in accordance with the terms of this Agreement, the assignee shall specifically assume and be bound by the provisions of the Agreement 

	
- 28 -

by executing a writing agreeing to be bound by and subject to the provisions of this Agreement and shall deliver an executed counterpart signature page to this Agreement and, notwithstanding such assumption or agreement to be
bound hereby by an assignee, no such assignment shall relieve any party assigning any interest hereunder from its obligations or liability pursuant to this Agreement. 

	 	
9.9 Confidential Information

     . The Purchasers acknowledge that from time to time, Purchasers may be given access to non-public, proprietary information with respect to the Company (“Confidential
Information”). For purposes hereof, for any Purchaser, Confidential Information does not include, however, (i) information which is or becomes generally available to the public in accordance with law other than as
a result of a disclosure by the Purchaser or its directors, managing members, officers, employees, agents, legal counsel, financial advisors, accounting representatives or potential funding sources 

(“Representatives”) or its Affiliates, subsidiaries or franchisees in violation of this Section 9.9 or any other confidentiality agreement to which the Company
is a party or beneficiary, (ii) is, or becomes, available to the Purchasers on a non-confidential basis from a source other than the Company or any of its Affiliates or any of its Representatives, provided, that such source was not known to you (after reasonable investigation) to be bound by a confidentiality agreement with, or any other contractual, fiduciary or other legal obligation of
confidentiality to, us or any of our subsidiaries or any of our representatives, (iii) is already in the Purchasers’ possession (other than information furnished by or on behalf of the Company or directors, officers, employees, representatives
and/or agents of the Company), or (iv) is independently developed by the Purchasers without violating any of the confidentiality terms herein. Each Purchaser agrees (i) except as required by law or legal process, to keep all Confidential Information
confidential and not to disclose or reveal any such Confidential Information to any person other than those of its Representatives who need to know the Confidential Information for the purpose of evaluating, monitoring or taking any other action
with respect to the investment by the Purchaser in the Notes (or the Common Stock into which the Notes are convertible) and to cause those Representatives to observe the terms of this Section 9.9 and (ii) not to use Confidential Information for any
purpose other than in connection with evaluating, monitoring or taking any other action with respect to the investment by the Purchaser in the Notes (or the Common Stock into which the Notes are convertible). 

	 	
9.10 Third Parties

     . This Agreement does not create any rights, claims or benefits inuring to any person that is not a party hereto nor create or establish any third party beneficiary hereto. 

	 	
9.11 Counterparts

     . This Agreement may be signed in any number of counterparts, each of which shall be an original, but all of which together shall constitute one instrument. 

	 	
9.12 Entire Agreement; Amendments

- 29 -

. This Agreement, the Rights Agreement, the Confidential Disclosure Agreement dated 

October 2, 2006, and that certain letter agreement of even date herewith between the Company and Sponsor concerning reimbursement of expenses constitute the entire agreement between the parties hereto respecting the subject matter
hereof and supersedes all prior agreements, negotiations, understandings, representations and statements respecting the subject matter hereof, whether written or oral. No modification, alteration, waiver or change in any of the terms of this
Agreement shall be valid or binding upon the parties hereto unless made in writing and duly executed by the Company and the Sponsor or holders of 50% or more of the principal amount of the Notes issued pursuant to this Agreement (and/or the
equivalent shares of Common Stock to the extent some or all of the Notes have been converted to Common Stock, with shares of Common Stock being attributed a principal amount for such purpose equal to the principal amount of the Notes converted in
the issuance of such Common Stock); provided, that, notwithstanding the foregoing, this Agreement may be amended from time to time without the consent of any other party to include a transferee in a Permitted Transfer as a party and a signatory
hereto pursuant to Article 7 of this Agreement. 

	 	
9.13 Survival

     . The representations and warranties contained in this Agreement shall terminate upon the first to occur of the Closing or the termination of this Agreement pursuant to Section 8.1 hereof.

- 30 -

     IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above written. 

	
COMPANY: 

SUN MICROSYSTEMS, INC.

By:

Name:

Title:

[Signature Page to Note Purchase Agreement]

SPONSOR: 

KOHLBERG KRAVIS ROBERTS & CO., L.P. By: Name: Title:

PURCHASERS:

KKR PEI SOLAR HOLDINGS I, LTD. By: Name: Title:

KKR PEI SOLAR HOLDINGS II, LTD. By: Name: Title:

	
CITIBANK, N.A.

By:

Name:

Title:

[Signature Page to Note Purchase Agreement]

KKR PEI INVESTMENTS, L.P. By: Name: Title:

[Signature Page to Note Purchase Agreement]

	
EXHIBIT A
	
	
 
	
	
PURCHASERS
	
	
 
	
	
 
	
	
Purchaser Name and Address 
		
 		
Principal Amount of 2012 
		
 		
Principal Amount of 
	
	
 
		
 		
 
		
 		
Notes to be Purchased 
		
 		
2014 Notes to be 
	
	
 
		
 		
 
		
 		
 
		
 		
Purchased 
	
	
 
	
	
KKR PEI Solar Holdings I, Ltd. 
		
 		
$175,000,000 
		
 		
- 
	
	
c/o KKR PEI Investments, L.P. 
		
 		
 
		
 		
 
	
	
c/o Kohlberg Kravis Roberts & Co., L.P. 
		
 		
 
		
 		
 
	
	
9 West 57 th Street 
		
 		
 
		
 		
 
	
	
New York, NY 10019 
		
 		
 
		
 		
 
	
	
Fax: 
		
 		
(212) 750-0003 
		
 		
 
		
 		
 
	
	
Attn: 
		
 		
Christopher Lee 
		
 		
 
		
 		
 
	
	
 
	
	
KKR PEI Solar Holdings II, Ltd. 
		
 		
- 
		
 		
$175,000,000 
	
	
c/o KKR PEI Investments, L.P. 
		
 		
 
		
 		
 
	
	
c/o Kohlberg Kravis Roberts & Co., L.P. 
		
 		
 
		
 		
 
	
	
9 West 57 th Street 
		
 		
 
		
 		
 
	
	
New York, NY 10019 
		
 		
 
		
 		
 
	
	
Fax: 
		
 		
(212) 750-0003 
		
 		
 
		
 		
 
	
	
Attn: 
		
 		
Christopher Lee 
		
 		
 
		
 		
 
	
	
 
	
	
Citibank, N.A. 
		
 		
$175,000,000 
		
 		
$175,000,000 
	
	
333 West 34 th Street, 2 nd Floor 
		
 		
 
		
 		
 
	
	
New York, NY 10001 
		
 		
 
		
 		
 
	
	
Fax: 
		
 		
(212) 615-8985 
		
 		
 
		
 		
 
	
	
Attn: 
		
 		
Confirmations Unit 
		
 		
 
		
 		
 
	
	
 
	
	
 
		
 		
TOTAL 
		
 		
$ 350,000,000.00 
		
 		
$ 350,000,000.00 
	

-2-

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