Document:

Representative form of performance restricted stock unit agreement

 Exhibit 10.5 
 SUN MICROSYSTEMS, INC. 
 PERFORMANCE RESTRICTED STOCK UNIT AGREEMENT 
 NOTICE OF GRANT 
 Sun
Microsystems, Inc. (“Sun”) is pleased to inform you that you,
[                                ], have been granted the number of Performance
Restricted Stock Units (“Performance Restricted Stock Units”) indicated below under Sun’s 1990 Long-Term Equity Incentive Plan (the “Plan”) and the terms of this Performance Restricted Stock Unit agreement (including the
Notice of Grant and Appendices A and B, all of which are the “Agreement”). Subject to the provisions of the Agreement and the Plan, the principal features of this grant are as follows: 
  

			
	 Grant Date:
	 	 [Date]

		
	Total Number of Performance Restricted Stock Units:	 	[To come]
		
	Scheduled Vesting:	 	25% of total Performance Restricted Stock Units vest one year
after the Grant Date, subject to Sun achieving the Performance
Target for Fiscal Year
[            ]. If the Performance Target is
achieved, 25% of the total Performance Restricted Stock Units
vest on the second, third and fourth anniversaries of the
Grant
Date. If the Performance Target is not achieved, all Restricted
Stock Units shall be canceled.
		
	Purchase Price per Share:	 	$[0.01 or 0.00067] payable in services rendered by you (no cash payment required)
		
	Acceptance Deadline:	 	You must accept this grant of Performance Restricted Stock Units prior to the Acceptance Deadline, which is sixty (60) days from the Grant Date.

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

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

 THIS AGREEMENT MUST BE ACCEPTED BY YOU BY THE ACCEPTANCE DEADLINE, OR THIS GRANT OF PERFORMANCE RESTRICTED STOCK UNITS WILL
AUTOMATICALLY BE CANCELED. 

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

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

 APPENDIX A 
 TERMS OF PERFORMANCE RESTRICTED STOCK UNITS 
  

	 	1.	Grant. Sun hereby grants to you under the Plan at the per share price of $0.01 or 0.00067 (the “Purchase Price”), the number of Performance Restricted Stock Units
indicated in the Notice of Grant, subject to all of the terms in this Agreement and the Plan. 

  

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

  

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

  

	 	4.	Vesting Schedule. 

  

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

  

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

 business day preceding the date on which your leave of absence terminates; or (ii) a date twelve
(12) months after the beginning of the leave of absence. These vesting suspension provisions will be applied in compliance with local law. Sun policies on leave of absence may vary outside the United States, in accordance with local law. The
preceding two sentences will apply only to those employees who are not subject to United States taxes. 
  

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

  

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

  

	 	(e)	Performance Target. The “Performance Target” shall be achieved if [describe performance targets]. The determination of whether or not the Performance
Target is achieved shall be made by the Leadership Development and Compensation Committee of the Board of Directors in its sole discretion as soon as practicable after the end of the fiscal year, and no Shares will be issued until such determination
is made. 

  

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

  

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

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

  

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

  

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

  

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

  

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

  

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

  

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

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

	 	10.	Rights as Stockholder. Neither you nor any person claiming under or through you will have any of the rights or privileges of a stockholder of Sun in respect of any Shares
deliverable hereunder unless and until certificates representing the Shares (which may be in book entry form) have been issued, recorded on the records of Sun or its transfer agents or registrars, and delivered to you (including through electronic
delivery to a brokerage account). Notwithstanding any other part of this Agreement, any quarterly or other regular, periodic dividends or distributions (as determined by Sun) will not affect unvested Performance Restricted Stock Units, and no
dividends or other distributions will be paid on unvested Performance Restricted Stock Units. Notwithstanding any other part of this Agreement, any quarterly or other regular, periodic dividends or distributions (as determined by Sun) paid on Shares
will accrue with respect to Performance Restricted Stock Units that are vested but unpaid pursuant to paragraph 4 or 5, and will be paid out at the same time or time(s) as the underlying Shares on which such dividends or other distributions
have accrued. After the issuance, recordation and delivery of any shares, you will have all the rights of a stockholder of Sun with respect to voting the Shares and receiving dividends and distributions on the Shares. 

  

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

 the date that you are no longer actively employed and will not be extended by any notice period mandated
under local law (e.g., active employment would not include a period of “garden leave” or similar period pursuant to local law), except as expressly provided herein, and that Sun will have the exclusive discretion to determine when you are
no longer actively employed for purposes of administering your grant of Performance Restricted Stock Units. 
  

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

  

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

 

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

  

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

  

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

  

	 	17.	Conditions for Issuance of Certificates for Stock. Any Shares deliverable to you may be either previously authorized but unissued Shares or issued Shares which have been
reacquired by Sun. Sun will not be required to issue any certificate or certificates for Shares hereunder prior to fulfillment of all the following conditions: (a) the admission of the Shares to listing on all stock exchanges on which the stock
is listed; and (b) the completion of any registration or other qualification of the Shares under any U.S. state or federal law or under the rulings or regulations of the Securities and Exchange 

 Commission or any other governmental regulatory body, which the Committee shall, in its absolute
discretion, deem necessary or advisable; and (c) the obtaining of any approval or other clearance from any U.S. state or federal governmental agency or any other governmental regulatory body, which the Committee shall, in its absolute
discretion, determine to be necessary or advisable; and (d) the lapse of a reasonable period of time following the date of vesting or other scheduled payout of the Performance Restricted Stock Units as the Committee may establish from time to
time for reasons of administrative convenience. 
  

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

  

	 	19.	Committee Authority. The Committee will have the power to interpret the Plan and this Agreement and to adopt such rules for the administration, interpretation and application
of the Plan as are consistent therewith and to interpret or revoke any rules (including, but not limited to, the determination of whether or not any Performance Restricted Stock Units have vested). All actions taken and all interpretations and
determinations made by the Committee will be final and binding upon you, Sun and all other persons. The Committee will not be personally liable for any action, determination or interpretation made in good faith with respect to the Plan or this
Agreement. 

  

	 	20.	Data Privacy. By accepting this Performance Restricted Stock Unit award or any Shares in payment thereof, you explicitly and unambiguously consent to the collection, use
and transfer, in electronic or other form, of your personal data as described in this document by and among, as applicable, the Employer, Sun and its Subsidiaries and affiliates for the exclusive purpose of implementing, administering and managing
your participation in the Plan. For the purpose of implementing, administering and managing the Plan, you understand that Sun and the Employer hold certain personal information about you, including, but not limited to, your name, home address and
telephone number, date of birth, Tax ID or other identification number, salary, nationality, job title, any Shares or directorships held in Sun, details of all Performance Restricted Stock Units or any entitlement to Shares awarded, canceled,
exercised, vested, unvested or outstanding in your favor, for the purpose of implementing, administering and managing the Plan (“Data”). You understand that Data may be transferred to any third parties assisting in the implementation,
administration and management of the Plan, that these recipients may be located in your country or elsewhere. Sun, as a global company, may transfer your personal data to countries which may not provide an adequate level of protection. Sun, however,
is committed to providing a suitable and consistent level of protection for your personal data regardless of the country in which it resides. You understand that you may request information regarding Sun’s stock plan administration by
contacting Global Stock Plan Services. You authorize the recipients to receive, possess, use, retain and transfer the Data, in electronic or other form, for the purposes of implementing, administering and managing your participation in the Plan,
including any requisite transfer of such Data as may be required to a broker or other third party with whom you deposit any Shares issued at vesting or other scheduled payout. You understand that Data will be held as long as is necessary to
implement, administer and manage the Plan. You understand that you may, at any time, view Data, request additional information about the storage and 

 processing of Data, require any necessary amendments to Data or refuse or withdraw the consents
herein, in any case without cost, by contacting in writing Global Stock Plan Services. You understand, however, that refusing or withdrawing your consent may affect your ability to participate in the Plan. For more information on the consequences of
your refusal to consent or withdrawal of consent, you understand that you may contact Global Stock Plan Services. 
  

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

  

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

  

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

  

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

  

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

  

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

  

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

  

	 	28.	No Effect on Employment or Service. YOU FURTHER ACKNOWLEDGE THAT NOTHING IN THIS AGREEMENT CONSTITUTES A CONTRACT OF EMPLOYEMENT AND THAT YOU AND SUN, INCLUDING ITS
SUBSIDIARIES AND AFFILIATES, EACH 

 RESERVES THE RIGHT TO TERMINATE THE EMPLOYMENT RELATIONSHIP AT ANY TIME AND FOR ANY REASON, WITH OR
WITHOUT CAUSE AND WITH OR WITHOUT NOTICE, WHEREVER ALLOWED BY LOCAL LAWS. 
  

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

  

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

 o O o 

 APPENDIX B 
 SUN MICROSYSTEMS, INC. 
 Performance Restricted Stock Unit AGREEMENT 
 Special Provisions for Performance Restricted Stock Units in Countries Outside the U.S. 
 This Exhibit includes special terms applicable to grantees in the countries below. These terms are in addition to those set forth in the Agreement.
Capitalized terms used but not defined herein will have the same meanings assigned to them in the Plan and the Agreement. 
 Please note that
the information below may relate to your exchange control obligations. Compliance with such obligations is your responsibility and neither Sun nor the Employer accepts any responsibility for such compliance. Also, exchange control regulations are
subject to change. As a result, you should consult with your advisor before sending/receiving funds to the U.S. or before selling Shares. 
 Argentina 
 The offering of the award of Performance Restricted Stock Units and Shares issued at vesting are offered
in a private transaction. This offer is not subject to the supervision of Argentine governmental authorities. 
 The Performance Restricted
Stock Units and Shares are being awarded by Sun on behalf of your local employer. The Performance Restricted Stock Units do not accrue on a monthly basis and will not be granted on a regular or monthly basis. 
 Canada 
 Consent to Receive
Information in English for Employees in Quebec. 
 The parties acknowledge that it is their express wish that the Agreement, as well as all
documents, notices and legal proceeds entered into, given or instituted pursuant hereto or relating directly or indirectly hereto, be drawn up in English. 
 Les parties reconnaissent avoir exigé la rédaction en anglais de cette convenzion, ainsi que de tous documents exécutés, avis donnés et procédures judiciaries
intentées, directement ou indirectement, relativement à ou suite à la présents convenzion. 
 China

 Please be advised of the following exchange control regulations that will apply when you sell Shares. 
 A PRC national is permitted to open foreign exchange accounts in China and to receive foreign exchange remitted from abroad or foreign exchange held in
China. There is no limit on the amount of foreign exchange that can be received and maintained in the foreign exchange accounts. However, difficulties may arise with the withdrawal and conversion of foreign currency from Chinese bank accounts. For
amounts between US$10,000 and US$50,000, you must produce documentation to the bank evidencing the source of the funds. If the amount exceeds US$50,000, local approval is required to withdraw and convert the currency. 

 Colombia 
 You may be required to register any foreign investments you hold abroad, including Shares of Sun, with the Bank of the Republic if the value of such foreign investments exceeds the applicable threshold. 
 Pursuant to Article 128 of the Colombian Labor Code, the Plan and related benefits do not constitute a component of “salary” for any legal
purpose. 
 Denmark 
 If you make or receive overseas payments in excess of DKK250,000, you will be required to file a report with the Danish National Bank. This report is required for statistical purposes only. In addition, if you establish an account holding
cash or shares abroad, you must report the account to the Danish National Bank. 
 If the Danish Stock Option Act applies to your grant of
Performance Restricted Stock Units, your Performance Restricted Stock Units will not be subject to Sun’s repurchase option upon involuntary termination of employment that is not in breach of contract. 
 France 
 You may hold Shares
acquired under the Plan outside France provided you declare all foreign accounts, whether open, current, or closed, in your income tax return. Furthermore, you must declare to the customs and excise authorities any cash or securities you import or
export without the use of a financial institution when the value of the cash or securities is equal to or exceeds €7,600. 
 Performance
Restricted Stock Units are being granted under a French tax-qualified plan. 
 Germany 
 Cross-border payments in excess of €12,500 must be reported monthly. If you use a German bank to effect a cross-border payment in excess of
€12,500 in connection with the sale or securities or the payment of dividends related to certain securities, the bank will make the report. In this case, you will not have to report the transaction. In addition, you must report any receivables
or payables or debts in foreign currency exceeding an amount of approximately €5,000,000 on a monthly basis. Finally, you must report on an annual basis, Shares holding exceeding 10% of the total voting capital of Sun. 
 Hong Kong 
 The contents of the
Agreement have not been reviewed by any regulatory authority in Hong Kong. You are advised to exercise caution in relation to the offer. If you have any doubt about any of the contents of the Agreement, you should obtain independent professional
advice. 
 India 
 Proceeds from the sale of Shares must be repatriated to India. You should obtain a foreign inward remittance certificate from the bank for your records to document compliance with this requirement and submit a copy of the foreign inward
remittance certificate to your employer. 

 By accepting this Performance Restricted Stock Unit award, you acknowledge that you understand and agree
that: (i) your decision to accept the award is voluntary; and (ii) an award granted under the Plan does not constitute a customary right or privilege. 
 Ireland 
 Performance Restricted Stock Units and Shares issued at vesting are offered in a
private transaction and not as a public offering. Only newly issued Shares will be used for the payment of Performance Restricted Stock Units to directors of Sun. 
 Directors and shadow directors of an Irish subsidiary are subject to certain notification requirements under the Companies Act. Directors and shadow directors must notify the Irish subsidiary in writing of their
interest in Sun and the number and class of Shares or rights to which the interest relates within five days of receipt or knowledge of receipt of the Performance Restricted Stock Units. Directors and shadow directors also must notify the Irish
subsidiary within five days of payment of their Performance Restricted Stock Units or of selling Shares acquired under the Plan. This disclosure requirement also applies to any rights or Shares acquired by director’s spouse or children (under
the age of 18). 
 Korea 
 When the Shares acquired under the Plan are sold, if the proceeds exceed US$100,000, such proceeds must be repatriated to Korea within six months. 
 Luxembourg 
 You are obligated to report any outward and inward remittance of funds to the
Banque Central de Luxembourg and/or the Service Central de La Statisque et des Etudes Economiques (the “STATEC”). If a Luxembourg financial institution is involved in the transaction, it will generally fulfill the reporting obligation on
your behalf. If the transaction does not involve a Luxembourg financial institution, you will have to report the transaction (regardless of the amount remitted or received) yourself to the STATEC on a specific form. The report has to be filed within
15 working days following the month during which the transaction occurred. 
 Netherlands 
 The Performance Restricted Stock Unit award is being made to you as an incentive for you to remain employed with your current Employer and is not
remuneration for services rendered. 
 Russia 
 If Performance Restricted Stock Units are granted to employees in Russia, the Performance Restricted Stock Units will be paid to you in cash at vesting. You will receive the cash equivalent of the fair market value of
the Shares at vesting. You will not be entitled to receive any Shares pursuant to the grant of Performance Restricted Stock Units. 
 When
you receive cash at vesting, you may be required to repatriate the funds to Russia through an “F” type account opened at an authorized bank in Russia. After you remit the sale proceeds back to Russia, you may transfer the funds to a
foreign bank account subject to the following limitations: (1) the foreign account may be opened only for individuals; (2) the foreign account may not be used for business activities; (3) you must give notice to the Russian tax
authorities about the opening/closing of each foreign account within one month after the account opening/closing; and (4) you must notify the account balances on your foreign accounts as of the beginning of each calendar year to the Russian tax
authorities. There may be additional restrictions if you send/receive more than US$150,000 into/out of Russia within a calendar year. 

 Singapore 
 The offer is being made on a private basis and is, therefore, exempt from registration in Singapore. 
 Directors of a Singapore subsidiary are subject to certain notification requirements under the Singapore Companies Act Directors must notify the Singapore subsidiary in writing of an interest (e.g., Shares) in Sun or any related
companies within two days of its acquisition or disposal. In addition, directors must notify the Singapore subsidiary of any interest held in Sun or any related company within two days of becoming a director. 
 Thailand 
 Any proceeds
received from the sale of Shares must be repatriated into Thailand, and they must be converted to Thai Baht within seven days of receipt. In the event that the amount of the proceeds from the sale of Shares is US$20,000 or more (or its equivalent
amount at market rate). You also are required to complete and submit a Foreign Exchange Transaction Form to the authorized agent to report the inward remittance of the proceeds to Thailand. 
 United Kingdom 
 Performance
Restricted Stock Units may only be settled in Shares. 
 You must also agree to certain National Insurance Contribution (NIC) passthrough
provisions in order to accept your grant. 
 Venezuela 
 This offering is personal, private, exclusive and non-transferable and is made to you because you meet the eligibility requirements set forth in the Plan.

 You agree that any modification of the Plan or its termination will not constitute a change or impairment of the terms and conditions of
your employment.Registrant's Section 162(m) Executive Officer Performance-Based Bonus Plan

 Exhibit 10.11 
 SUN MICROSYSTEMS, INC. 
 SECTION 162(M) EXECUTIVE OFFICER 
 PERFORMANCE-BASED BONUS PLAN 
 SECTION 1 
 BACKGROUND, PURPOSE AND DURATION 
 1.1 Effective Date. 
 Sun Microsystems, Inc., having established the Plan effective as of
August 9, 1995 and amended and restated the Plan effective as of July 1, 2001, hereby amends and restates the Plan, effective as of July 1, 2006, subject to ratification by an affirmative vote of the holders of a majority of the
Shares that are present in person or by proxy and entitled to vote at the 2006 Annual Meeting of Stockholders of the Company. 
 1.2 Purpose of the Plan.

 The Plan is intended to increase shareholder value and the success of the Company by motivating key executives (1) to perform to
the best of their abilities, and (2) to achieve the Company’s objectives. The Plan’s goals are to be achieved by providing such executives with incentive awards based on the achievement of goals relating to the performance of the
Company. The Plan is intended to permit the grant of awards that qualify as performance-based compensation under section 162(m) of the Code. 
 SECTION 2 
 DEFINITIONS 
 The following words and phrases shall have the following meanings unless a different meaning is plainly required by the context: 
 2.1 “1934 Act” 
 means the Securities Exchange Act of 1934, as amended. Reference to a specific section of the 1934
Act or regulation thereunder shall include such section or regulation, any valid regulation promulgated under such section, and any comparable provision of any future legislation or regulation amending, supplementing or superseding such section or
regulation. 
 2.2 “Actual Award” 
 means as to any Performance Period, the actual award (if any) payable to a Participant for the Performance Period. Each Actual Award is determined by the Payout Formula for the Performance Period, subject to the Committee’s authority
under Section 3.7 to eliminate or reduce the award otherwise determined by the Payout Formula. 

 2.3 “Affiliate” 
 means any corporation or other entity (including, but not limited to, partnerships and joint ventures) controlled by the Company. 
 2.4 “Board” 
 means the Board of Directors of the Company. 
 2.5 “Code” 
 means the Internal Revenue Code
of 1986, as amended. Reference to a specific section of the Code or regulation thereunder shall include such section or regulation, any valid regulation promulgated thereunder, and any comparable provision of any future legislation or regulation
amending, supplementing or superseding such section or regulation. 
 2.6 “Committee” 
 means the committee appointed by the Board (pursuant to Section 5.1) to administer the Plan. 
 2.7 “Company” 
 means Sun Microsystems,
Inc., a Delaware corporation, or any successor thereto. 
 2.8 “Disability” 
 means a permanent and total disability determined in accordance with uniform and nondiscriminatory standards adopted by the Committee from time to time.

 2.9 “Employee” 
 means any
employee of the Company or of an Affiliate, whether such employee is so employed at the time the Plan is adopted or becomes so employed subsequent to the adoption of the Plan. 
 2.10 “Participant” 
 means as to any Performance Period, an Employee who has been selected
by the Committee for participation in the Plan for that Performance Period. 
 2.11 “Payout Formula” 
 means as to any Performance Period, the formula or payout matrix established by the Committee pursuant to Section 3.5 in order to determine the
Actual Awards (if any) to be paid to Participants. The formula or matrix may differ from Participant to Participant. 
 2.12 “Performance
Period” 
 means the period of time established by the Committee in its sole discretion. 

 2.13 “Performance Goals” 
 means the goal(s) (or combined goal(s)) determined by the Committee (in its discretion) to be applicable to a Participant for a Target Award for a Performance Period. As determined by the Committee, the Performance
Goals for any Target Award applicable to a Participant may provide for a targeted level or levels of achievement using one or more of the following measures: (a) earnings (or loss) per share, (b) individual objectives that are measurable
and consistent with Section 162(m) of the Code, (c) net income (or loss) before or after taxes and before or after allocation or corporate overhead and bonus, (d) cash flow, operating cash flow, or cash flow or operating cash flow per
share (before or after dividends), (e) operating income, (or loss) before or after taxes (f) return on assets or net assets, (g) return on equity, (h) return on sales or net sales, (i) revenue, revenue growth or product
revenue growth, (j) total shareholder return, (k) earnings or loss per share; (l) attainment of strategic and operational initiatives, (m) appreciation in and/or maintenance of the price of the Shares or any other publicly traded
securities of the Company, (n) market shares, (o) gross profits, (p) earnings (or losses), including earnings or losses before taxes, earnings or losses before interest and taxes, earnings or losses before interest, taxes and
depreciation or earnings or losses before interest, taxes depreciation and amortization, (q) economic value-added models (or equivalent metrics), (r) comparisons with various stock market indices, (s) reduction in costs,
(t) return on capital, including return on total capital or return on invested capital, (u) cash flow return on investment, (v) improvement in or attainment of expense levels or working capital levels, (w) operating margin or
gross margin, (x) year-end cash, (y) cash margin, (z) debt reduction, (aa) stockholders’ equity, (bb) market share; (cc) research progress, including the development or programs, and (dd) recruiting and maintaining personnel.
Such performance goals also may be based solely by reference to the Company’s performance or the performance of an Affiliate, division, business segment or business unit of the Company, or based upon the relative performance of other companies
or upon comparisons of any of the indicators of performance relative to other companies. 
 2.14 “Plan” 
 means the Sun Microsystems, Inc. Section 162(m) Executive Officer Performance-Based Bonus Plan, as set forth in this instrument and as hereafter
amended from time to time. 
 2.15 “Retirement” 
 means, with respect to any Participant, a Termination of Service after attaining at least (a) age 65, (b) age 60 and 5 years of service with the Company or an Affiliate, or (c) age 55 and 10 years of
service with the Company or an Affiliate. 
 2.16 “Shares” 
 means shares of the Company’s common stock. 

 2.17 “Target Award” 
 means the target award payable under the Plan to a Participant for the Performance Period as determined by the Committee in accordance with Section 3.4. 
 2.18 “Termination of Service” 
 means a
cessation of the employee-employer relationship between a Participant and the Company or an Affiliate for any reason, including, but not by way of limitation, a termination by resignation, discharge, death, Disability, Retirement, or the
disaffiliation of an Affiliate, but excluding any such termination where there is a simultaneous reemployment by the Company or an Affiliate. 
 SECTION 3 
 SELECTION OF PARTICIPANTS AND DETERMINATION OF AWARDS 
 3.1 Selection of Participants. 
 The Committee, in its
sole discretion, shall select the Employees who are executive officers of the Company (within the meaning of Rule 3b-7 under the 1934 Act) and who shall be Participants for any Performance Period. Participation in the Plan is in the sole discretion
of the Committee, and on a Performance Period by Performance Period basis. Accordingly, an Employee who is a Participant for a given Performance Period in no way is guaranteed or assured of being selected for participation in any subsequent
Performance Period. 
 3.2 Determination of Performance Period. 
 The Committee, in its sole discretion, shall establish in writing whether the Performance period shall be the Company’s fiscal year or such other period of time. 
 3.3 Determination of Performance Goals. 
 The
Committee, in its sole discretion, shall establish the Performance Goals for each Participant for the Performance Period. Such Performance Goals shall be set forth in writing. The Performance Goals may differ from Participant to Participant and from
award to award. The Committee shall also determine and set forth in writing whether any significant elements shall be included in or excluded from the calculation of any Performance Goal with respect to any Participants, including
(a) restructurings, discontinued operations, extraordinary items, and other unusual or non-recurring charges, (b) an event either not directly related to the operations of the Company or not within the reasonable control of the
Company’s management, or (c) the cumulative effects of tax or accounting changes in accordance with U.S. generally accepted accounting principles. 
 3.4 Determination of Target Awards. 
 The Committee, in its sole discretions, shall establish a Target Award for each
Participant. Each Participant’s Target Award shall be determined by the Committee in its sole discretion, and each Target Award shall be set forth in writing. The Target Award may be denominated by reference to a number of Shares or an amount
of cash. 

 3.5 Determination of Payout Formula or Formulae. 
 The Committee, in its sole discretion, shall establish a Payout Formula or Formulae for purposes of determining the Actual Award (if any) payable to each
Participant. Each Payout Formula shall (a) be in writing, (b) be based on a comparison of actual performance to the Performance Goals, (c) provide for the payment of a Participant’s Target Award if the Performance Goals for the
Performance Period are achieved, and (d) provide for an Actual Award greater than or less than the Participant’s Target Award, depending upon the extent to which actual performance exceeds or falls below the Performance Goals.
Notwithstanding the preceding, in no event shall a Participant’s Actual Award for any Performance Period exceed $10,000,000 or 1,500,000 Shares for each 12 months in a Performance Period (proportionately adjusted for periods of less than 12
months). 
 3.6 Date for Determinations. 
 The Committee shall make all determinations under Sections 3.1 through 3.5 on or before the earlier of (i) 90 days after the commencement of each Performance Period or (ii) the expiration of 25% of the Performance Period.

 3.7 Determination of Actual Awards. 
 After the end of each Performance Period, the Committee shall certify in writing the extent to which the Performance Goals applicable to each Participant for the Performance Period were achieved or exceeded. The Actual Award for each
Participant shall be determined by applying the Payout Formula to the level of actual performance that has been certified by the Committee. Notwithstanding any contrary provision of the Plan, the Committee, in its sole discretion, may
(a) eliminate or reduce the Actual Award payable to any Participant below that which otherwise would be payable under the Payout Formula, and (b) determine what Actual Award, if any, will be paid in the event of a Termination of Service
prior to the end of the Performance Period. 
 SECTION 4 
 PAYMENT OF AWARDS 
 4.1 Right to Receive Payment. 
 Each Actual Award that may become payable under the Plan shall be paid solely from the general assets of the Company. Nothing in this Plan shall be
construed to create a trust or to establish or other than as an unsecured general creditor with respect to any payment to which he or she may be entitled. 
 4.2 Timing of Payment. 
 Payment of each Actual Award shall be made as soon as practicable after the end of the Performance
Period during which the Award was earned and the certification of the Committee provided for in Section 3.7. 

 4.3 Form of Payment. 
 Each Actual Award shall be paid in cash (or its equivalent) or Shares in a single lump sum, except as otherwise determined by the Committee. To the extent an Actual Award is paid in whole or in part in Shares, such
Shares shall be granted under the Company’s 1990 Long-Term Equity Incentive Plan or such other shareholder approved plan of the Company providing for payment of Shares. If (i) a Target Award denominated in cash is paid in Shares or
(ii) a Target Award denominated in Shares is paid in cash, the amount of cash or Shares shall be determined based on the closing per share selling price for Shares as quoted on the NASDAQ Stock Market on the date payment of the Actual Award
would otherwise have been made. 
 4.4 Payment in the Event of Death. 
 If a Participant dies prior to the payment of an Actual Award earned by him or her prior to death for a prior Performance Period, the Award shall be paid to his or her estate, except as provided in Section 6.6.

 SECTION 5 
 ADMINISTRATION 
 5.1 Committee is the Administrator. 
 The Plan shall be administered by the Committee. The Committee shall consist of not less than two (2) members of the Board. The members of the Committee shall be appointed from time to time by, and serve at the
pleasure of, the Board. Each member of the Committee shall qualify as an “outside director” under section 162(m) of the Code. If it is later determined that one or more members of the Committee do not so qualify, actions taken by the
Committee prior to such determination shall be valid despite such failure to qualify. 
 5.2 Committee Authority. 
 It shall be the duty of the Committee to administer the Plan in accordance with the Plan’s provisions. The Committee shall have all powers and
discretion necessary or appropriate to administer the Plan and to control its operation, including, but not limited to, the power to (a) determine which Employees who are executive officers shall be granted awards, (b) prescribe the terms
and conditions of awards, (c) interpret the Plan and the awards, (d) adopt such procedures and sub plans as are necessary or appropriate to permit participation in the Plan by Employees who are foreign nationals or employed outside of the
United States, (e) adopt rules for the administration, interpretation and application of the Plan as are consistent therewith, and (f) interpret, amend or revoke any such rules. 
 5.3 Decisions Binding. 
 All determinations and
decisions made by the Committee, the Board, and any delegate of the Committee pursuant to the provisions of the Plan shall be final, conclusive, and binding on all persons, and shall be given the maximum deference permitted by law. 

 5.4 Delegation by the Committee. 
 The Committee, in its sole discretion and on such terms and conditions as it may provide, may delegate all or part of its authority and powers under the Plan to one or more directors and/or officers of the Company;
provided, however, that the Committee may delegate its authority and powers only to the extent consistent with applicable laws (including the provisions of Section 162(m) of the Code) and the rules and regulations of the principal securities
market on which the Company’s securities are listed or qualified for trading. 
 SECTION 6 
 GENERAL PROVISIONS 
 6.1 Tax Withholding.

 The Company shall withhold all applicable taxes from any Actual Award, including any federal, state and local taxes (including, but not
limited to, the Participant’s FICA and SDI obligations). 
 6.2 No Effect on Employment. 
 Nothing in the Plan shall interfere with or limit in any way the right of the Company to terminate any Participant’s employment at any time, with or
without cause. For purposes of the Plan, transfer of employment of a Participant between the Company and any one of its Affiliates (or between Affiliates) shall not be deemed a Termination of Service. Employment with the Company and its Affiliates
is on an at-will basis only. The Company expressly reserves the right, which may be exercised at any time and without regard to when during a Performance Period such exercise occurs, to terminate any individual’s employment with or without
cause, and to treat him or her without regard to the effect which such treatment might have upon him or her as a Participant. 
 6.3 Participation.

 No Employee shall have the right to be selected to receive an award under this Plan, or, having been so selected, to be selected to
receive a future award. 
 6.4 Indemnification. 
 Each person who is or shall have been a member of the Committee, or of the Board, shall be indemnified and held harmless by the Company against and from (a) any loss, cost, liability, or expense that may be imposed upon or reasonably
incurred by him or her in connection with or resulting from any claim, action, suit, or proceeding to which he or she may be a party or in which he or she may be involved by reason of any action taken or failure to act under the Plan or any award,
and (b) from any and all amounts paid by him or her in settlement thereof, with the Company’s approval, or paid by him or her in satisfaction of any judgment in any such claim, action, suit, or proceeding against him or her, provided he or
she shall give the Company an opportunity, at its own expense, to handle and defend the same before he or she undertakes to handle and defend it on his or her own behalf. The foregoing right of indemnification shall not be exclusive of any other
rights of indemnification to which such persons may be entitled under the Company’s Certificate of Incorporation or Bylaws, by contract, as a matter of law, or otherwise, or under any power that the Company may have to indemnify them or hold
them harmless. 

 6.5 Successors. 
 All obligations of the Company under the Plan, with respect to awards granted hereunder, shall be binding on any successor to the Company, whether the existence of such successor is the result of a direct or indirect
purchase, merger, consolidation, or otherwise, of all or substantially all of the business or assets of the Company. 
 6.6 Beneficiary Designations.

 If permitted by the Committee, a Participant under the Plan may name a beneficiary or beneficiaries to whom an Actual Award which the
Participant has earned shall be paid in the event of the Participant’s death. Each such designation shall revoke all prior designations by the Participant and shall be effective only if given in a form and manner acceptable to the Committee. In
the absence of any such designation, any such Actual Award remaining unpaid at the Participant’s death shall be paid to the Participant’s estate. 
 6.7 Nontransferability of Awards. 
 No award granted under the Plan may be sold, transferred, pledged, assigned, or otherwise
alienated or hypothecated, other than by will, by the laws of descent and distribution, or to the limited extent provided in Section 6.6. All rights with respect to an award granted to a Participant shall be available during his or her lifetime
only to the Participant. 
 6.8 Deferrals. 
 The Committee, in its sole discretion, may permit a Participant to defer receipt of the payment of cash or Shares that would otherwise be delivered to a Participant under the Plan. Any such deferral elections shall be made under a plan or
arrangement consistent with the requirements of section 409A of the Code. 
 SECTION 7 
 AMENDMENT, TERMINATION AND DURATION 
 7.1 Amendment,
Suspension or Termination. 
 The Board, in its sole discretion, may amend or terminate the Plan, or any part thereof, at any time and for
any reason. The amendment, suspension or termination of the Plan shall not, without the consent of the Participant, alter or impair any rights or obligations under any Target Award theretofore granted to such Participant. No award may be granted
during any period of suspension or after termination of the Plan. 

 7.2 Duration of the Plan. 
 The Plan shall commence on the date specified herein, and subject to Section 7.1 (regarding the Board’s right to amend or terminate the Plan), shall remain in effect thereafter. 
 SECTION 8 
 LEGAL CONSTRUCTION

 8.1 Gender and Number. 
 Except
where otherwise indicated by the context, any masculine term used herein also shall include the feminine; the plural shall include the singular and the singular shall include the plural. 
 8.2 Severability. 
 In the event any provision of the Plan shall be held illegal or invalid for any
reason, the illegality or invalidity shall not affect the remaining parts of the Plan, and the Plan shall be construed and enforced as if the illegal or invalid provision had not been included. 
 8.3 Requirements of Law. 
 The granting of awards
under the Plan shall be subject to all applicable laws, rules and regulations, and to such approvals by any governmental agencies or national securities exchanges as may be required. 
 8.4 Governing Law. 
 The Plan and all awards shall be construed in accordance with and governed by the
laws of the State of California, but without regard to its conflict of law provision. 
 8.5 Captions. 
 Captions are provided herein for convenience only, and shall not serve as a basis for interpretation or construction of the Plan. 

 EXECUTION 
 IN WITNESS WHEREOF, Sun Microsystems, Inc., by its duly authorized officer, has executed the Plan on the date indicated below. 
  

					
		 	 SUN MICROSYSTEMS, INC.

			
	Date:
                                        
            , 2006	 	By:	 	  

		 		 	Michael A. Dillon
		 		 	Executive Vice President,
		 		 	General Counsel and Secretary
		 		 	Sun Microsystems, Inc.

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