Document:

Exhibit 10.1

Chief Executive Officer Bonus
Terms for FY07 Under the

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

Plan Objective

Sun’s Chief Executive Officer
Bonus Terms for FY07 under its Section 162(m) Executive Officer Performance-Based
Bonus Plan (the “Plan”) are designed to compensate the Chief Executive Officer
(“CEO”) for contributions to Sun during the fiscal year.  The Plan provides for quarterly cash
compensation based on performance against the Plan measures.

 

Plan Year/Performance Periods

The Plan year is the Company’s
fiscal year 2007.  The performance
periods are each of the Company’s four fiscal quarters during that fiscal year.

 

Eligibility

These terms apply to the
person serving as Sun’s CEO as of July 1, 2006. 
In order to receive a bonus payment with respect to any fiscal quarter,
the participant must be serving as Sun’s CEO as of the last day of that fiscal
quarter, except as provided below.

A participant who retires,
becomes disabled, or dies during any fiscal quarter may receive a prorated
bonus for the period of time during the fiscal quarter that the participant
provided services to Sun.  A participant
who leaves Sun prior to the end of a fiscal quarter for any other reason, including
but not limited to a reduction in force, voluntary resignation, or termination
by Sun, will be ineligible for a bonus payment with respect to that fiscal
quarter and any subsequent fiscal quarter during fiscal year 2007.

 

Bonus Target

The participant’s bonus target
under the Plan is 200% of the participant’s Eligible Wages for fiscal year
2007, as determined below (the “Bonus Target”). 
The Bonus Target is divided between the four fiscal quarters of fiscal
year 2006 as follows (each, a “Quarterly Bonus Target”):

	
  Fiscal Quarter

  	
   

  	
  Percentage

  	
   

  	
  Quarterly Bonus Target

  
	
  FY07 Q1

  	
   

  	
  15%

  	
   

  	
  30%

  
	
  FY07 Q2

  	
   

  	
  25%

  	
   

  	
  50%

  
	
  FY07 Q3

  	
   

  	
  25%

  	
   

  	
  50%

  
	
  FY07 Q4

  	
   

  	
  35%

  	
   

  	
  70%

  

 

For example, for FY07 Q1, the Quarterly Bonus Target would be 200%
multiplied by 15%, or 30% of Eligible Wages for that quarter.

Payouts under the Plan are capped at 270% of the Bonus Target for fiscal
year 2007.  (Plan funding is capped at
200% of the target funding amount; in addition, for the Q4 payment, individual
performance can adjust the funded Q4 payment from 0% to 200%.)

 

Company Performance Measures

The Plan is based on Company performance against the following measures
(the “Company Performance Measures”):

1.               Q1 FY07-quarterly Operating Income (weighted
50%) and quarterly Revenue (weighted 50%);

2.               Q2 FY07-quarterly Operating Income (weighted
50%) and quarterly Revenue (weighted 50%);

3.               Q3 FY07-quarterly Operating Income (weighted
50%) and quarterly Revenue (weighted 50%);

 1
 

 

4.               Q4 FY07-quarterly Operating Income (weighted
50%) and quarterly Revenue (weighted 50%);

 

Additional funding maybe be allocated to the Q4
bonus payments if:

1.               Q4 financial performance on Revenue and
Operating Income are at least at target, and,

2.               Corporate annual goals for Solaris
adoption/conversion are met.

 

Company Performance Measure
Definitions

Operating Income: For purposes of calculating the bonus accrual under the Plan, “Operating
Income” is defined as Operating Income, calculated on a GAAP basis, adjusted to
exclude the impact of the following:

·             Restructuring
charges

·             In process R
& D charges

·             Intangible
impairment charges

·             Stock
Compensation Expense

·             FY07 Bonus
Accrual

·             Equity Based
Compensation Expense

Revenue: For purposes of calculating the bonus accrual under
the Plan, “Revenue” is defined as net revenue as reported in the Company’s
consolidated operations analysis.

 

Bonus
Plan Funding Percentage

The Company uses a schedule (the “Quarterly Bonus
Funding Schedule”), which provides percentages based upon the Company’s actual
performance against the Company’s goal(s) with respect to the Company
Performance Measures for each quarter. The Bonus Plan Funding Percentage is
determined for each fiscal quarter as follows:

1.               Q1-Q4 FY07: Funding based on actual performance
against goals with respect to quarterly Operating Income and quarterly Revenue,
weighted equally;

2.               Evaluating and funding each performance measure
independently;

3.               Additionally, with respect to Q4 FY07, there
maybe additional bonus funding based on the Corporate Solaris Goal, providing
up to an additional 6% of the bonus pool if the Q4 Revenue goal, Q4 Operating
Income and Corporate Solaris adoption/conversion annual goals are met.

 

Individual Performance

Q4 FY07 bonus calculation will
include a percentage multiplier based upon the Participant’s annual performance
(the “Individual Performance Percentage”.) The participant can receive 0-200%
of their bonus target based on achievement of documented individual objectives.

 

Eligible Wages

Eligible Wages with respect to
any fiscal quarter in fiscal year 2007 (“Eligible Wages”) shall be determined
based upon the participant’s annual base salary on the last day of such fiscal
quarter (October 1, 2006 for FY07 Q1, December 31, 2006 for FY07 Q2, April 1,
2007 for FY07 Q3, and June 30, 2007 for FY07 Q4).

 2
 

 

For example, for FY07 Q2,
assuming the participant’s annual base salary on December 31, 2006 was
$1,000,000, the participant’s Eligible Wages would be $1,000,000.

Eligible Wages exclude relocation allowances, expense reimbursements,
tuition reimbursement, car/transportation allowances, expatriate allowances,
long-term disability payments, or other commissions and bonuses paid during
each quarter of FY07.

 

Bonus Calculation

Q1 - Q3 FY07

The Participant’s quarterly
bonus payment for Q1- Q3 FY07 will be calculated as follows:

	
  

  	
   

  	
  Quarterly Bonus Target
  Percentage

  	
   

  
	
  x

  	
   

  	
  Bonus Plan Funding
  Percentage

  	
   

  
	
  x

  	
   

  	
  Eligible Wages

  	
   

  	
   

  
	
  =

  	
   

  	
  Actual Quarterly Bonus Payment

  	
   

  
					

 

Example:  In Q2, FY07, 
if the Company achieves 100% of Operating Income goal and 100% of
Revenue goal, the actual quarterly bonus payment will be calculated as follows:

	
  Quarterly Bonus Target Percentage

  	
   

  	
   

  	
   

  	
  50

  	
  %

  
	
  Bonus Plan Funding Percentage

  	
   

  	
  X

  	
   

  	
  100

  	
  %

  
	
  Eligible Wages

  	
   

  	
   

  	
  X

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
  Actual
  Quarterly Bonus Payment for Q2 FY07

  	
   

  	
   

  	
   

  	
  $

  	
  500,000

  	
   

  
								

 

Q4 FY07

The Participant’s quarterly
bonus payment for Q4 FY07 will be calculated as follows:

	
  

  	
   

  	
  Quarterly Bonus Target
  Percentage

  	
   

  
	
  x

  	
   

  	
  Bonus Plan Funding
  Percentage (Financial Measures and Corporate Solaris Goal, if applicable)

  	
   

  
	
  x

  	
   

  	
  Individual Performance
  Percentage

  	
   

  
	
  x

  	
   

  	
  Eligible Wages

  	
   

  	
   

  
	
  =

  	
   

  	
  Actual Quarterly Bonus Payment

  	
   

  
					

 

Example: In Q4 FY07,  if
the Company achieves 100% of its quarterly Operating Income goal and 100% of
its Revenue goal, and 100% of the Corporate Solaris goal, actual quarterly
bonus payment with an Individual Performance Percentage of 125% will be
calculated as follows:

Step One — Determine Bonus
Plan Funding Percentage:

 3
 

 

 

	
  Company Actual Performance for Q4 FY07

  	
   

  	
  Percentage from

  Schedule

  	
   

  	
  Relative Weighting

  	
   

  
	
  Quarterly Operating Income — 100%

  	
   

  	
  100%

  	
   

  	
  50

  	
  %

  
	
  Quarterly Revenue — 100%

  	
   

  	
  100%

  	
   

  	
  50

  	
  %

  
	
  Solaris Goal

  	
   

  	
  100%

  	
   

  	
  6

  	
  %

  
	
  Bonus
  Plan Funding Percentage

  	
   

  	
   

  	
   

  	
  106

  	
  %

  

 

Step Two — Determine actual
quarterly bonus payment:

 

	
  Quarterly Bonus Target Percentage

  	
   

  	
   

  	
   

  	
  70

  	
  %

  
	
  Bonus Plan Funding Percentage

  	
   

  	
  X

  	
   

  	
  106

  	
  %

  
	
  Individual Performance Percentage

  	
   

  	
  X

  	
   

  	
  125

  	
  %

  
	
  Eligible Wages

  	
   

  	
  X

  	
   

  	
  $

  	
  1,000,000

  	
   

  
	
  Actual
  Quarterly Bonus Payment for Q4 FY07

  	
   

  	
   

  	
   

  	
  $

  	
  927,500

  	
   

  

 

Bonus Payment

In the U.S., bonus awards are
taxable income, and will generally be paid within 2 and half months after the
close of each fiscal quarter. Bonuses are paid in accordance with local payroll
schedules in countries outside the U.S and subject to local and regional tax
provisions.

Communication of Results

With respect to any particular fiscal quarter during fiscal year 2007,
results will be communicated as soon as possible after the Company’s quarterly
financial results are publicly announced.

General Provisions and Plan
Governance

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

 

 4Exhibit
10.2

Executive Officer Bonus Terms
for FY07 Under the

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

Plan
Objective

Sun’s
Executive Officer Bonus Terms for FY07 under its Section 162(m) Executive
Officer Performance-Based Bonus Plan (the “Plan”) are designed to compensate
Executive Officers, other than the Chief Executive Officer, for contributions
to Sun during the fiscal year.  The Plan
provides for quarterly cash compensation based on performance against the Plan
measures.

 

Plan
Year/Performance Periods

The Plan year
is the Company’s fiscal year 2007.  The performance periods are
each of the Company’s four fiscal quarters during that fiscal year.

 

Eligibility

These
terms apply to persons serving as Executive Officers, other than the Chief
Executive Officer, as of July 1, 2006. 
In order to receive a bonus payment with respect to any fiscal quarter,
the participant must be serving as an Executive Officer as of the last day of
that fiscal quarter, except as provided below.

A participant who retires,
becomes disabled, or dies during any fiscal quarter may receive a prorated
bonus for the period of time during the fiscal quarter that the participant
provided services to Sun.  A participant
who leaves Sun prior to the end of a fiscal quarter for any other reason,
including but not limited to a reduction in force, voluntary resignation, or
termination by Sun, will be ineligible for a bonus payment with respect to that
fiscal quarter and any subsequent fiscal quarter during fiscal year 2007.

 

Bonus
Target

The
annual bonus targets under the Plan for Executive Officers, other than the
Chief Executive Officer, range from 45% to 100% (as approved for each
individual based on their role) of the participant’s Eligible Wages for fiscal
year 2007, as determined below (the “Bonus Targets”).  The Bonus Targets are divided between the
four fiscal quarters of fiscal year 2007 as follows (each, a “Quarterly Bonus
Target”):

	
  Fiscal Quarter

  	
   

  	
  Percentage

  	
   

  	
  Quarterly Bonus Target

  
	
  FY07 Q1

  	
   

  	
  15%

  	
   

  	
  6.75%
  to 15%

  
	
  FY07 Q2

  	
   

  	
  25%

  	
   

  	
  11.25%
  to 25%

  
	
  FY07 Q3

  	
   

  	
  25%

  	
   

  	
  11.25%
  to 25%

  
	
  FY07 Q4

  	
   

  	
  35%

  	
   

  	
  15.75%
  to 35%

  

 

For example, for FY07 Q1, for an individual with an annual Bonus Target
of 45%, the target would be multiplied by 15%, resulting in a bonus target of
6.75% of Eligible Wages for that quarter.

Plan funding is capped at 200% of the target funding amount; in
addition, for the Q4 payment, individual performance can adjust the funded Q4
payment from 0% to 200%.

 

Company
Performance Measures

The Plan is based on Company performance against the following measures
(the “Company Performance Measures”):

1.               Q1 FY07-quarterly Operating Income (weighted
50%) and quarterly Revenue (weighted 50%);

2.               Q2 FY07-quarterly Operating Income (weighted
50%) and quarterly Revenue (weighted 50%);

3.               Q3 FY07-quarterly Operating Income (weighted
50%) and quarterly Revenue (weighted 50%);

 1
 

 

4.               Q4 FY07-quarterly Operating Income (weighted
50%) and quarterly Revenue (weighted 50%);

Additional funding maybe be allocated to the Q4
bonus payments if:

1.               Q4 financial performance on Revenue and
Operating Income are at least at target, and,

2.               Corporate annual goals for Solaris
adoption/conversion are met.

 

Company
Performance Measure Definitions

Operating Income: For purposes of calculating the bonus accrual under the Plan, “Operating
Income” is defined as Operating Income, calculated on a GAAP basis, adjusted to
exclude the impact of the following:

·             Restructuring
charges

·             In process R
& D charges

·             Intangible
impairment charges

·             Stock
Compensation Expense

·             FY07 Bonus
Accrual

·             Equity Based
Compensation Expense

Revenue: For purposes of calculating the bonus accrual under
the Plan, “Revenue” is defined as net revenue as reported in the Company’s
consolidated operations analysis.

 

Bonus
Plan Funding Percentage

The Company uses a schedule (the “Quarterly Bonus
Funding Schedule”), which provides percentages based upon the Company’s actual
performance against the Company’s goal(s) with respect to the Company
Performance Measures for each quarter. The Bonus Plan Funding Percentage is
determined for each fiscal quarter as follows:

1.               Q1-Q4 FY07: Funding based on actual performance
against goals with respect to quarterly Operating Income and quarterly Revenue,
weighted equally;

2.               Evaluating and funding each performance measure
independently;

3.               Additionally, with respect to Q4 FY07, there
maybe additional bonus funding based on the Corporate Solaris Goal, providing
up to an additional 6% of the bonus pool if the Q4 Revenue goal, Q4 Operating
Income and Corporate Solaris adoption/conversion annual goals are met.

 

Individual
Performance

Q4 FY07 bonus
calculation will include a percentage multiplier based upon the Participant’s
annual performance (the “Individual Performance Percentage”.) The participant
can receive 0-200% of their bonus target based on achievement of documented
individual objectives.

 

Eligible
Wages

Eligible Wages with respect to any fiscal quarter in fiscal year 2007 (“Eligible
Wages”) shall be determined based upon the participant’s annual base salary on the
last day of such fiscal quarter (October 1, 2006 for FY07 Q1, December 31, 2006
for FY07 Q2, April 1, 2007 for FY07 Q3, and June 30, 2007 for FY07 Q4).

 2
 

 

For example, for FY07 Q2, assuming the participant’s annual base salary
on December 31, 2006 was $200,000, the participant’s Eligible Wages would be
$200,000.

Eligible
Wages exclude relocation allowances, expense reimbursements, tuition
reimbursement, car/transportation allowances, expatriate allowances, long-term
disability payments, or other commissions and bonuses paid during each quarter
of FY07.

 

Bonus
Calculation

Q1 - Q3 FY07

The
Participant’s quarterly bonus payment for Q1- Q3 FY07 will be calculated as
follows:

	
  

  	
   

  	
  Quarterly Bonus Target
  Percentage

  	
   

  
	
  x

  	
   

  	
  Bonus Plan Funding
  Percentage

  	
   

  
	
  x

  	
   

  	
  Eligible Wages

  	
   

  	
   

  
	
  =

  	
   

  	
  Actual Quarterly Bonus Payment

  	
   

  
					

 

Example:  In Q2, FY07, 
if the Company achieves 100% of Operating Income goal and 100% of
Revenue goal, the actual quarterly bonus payment will be calculated as follows:
(assumes a 45% annual bonus target)

	
  Quarterly Bonus Target Percentage

  	
   

  	
   

  	
   

  	
  11.25

  	
  %

  
	
  Bonus Plan Funding Percentage

  	
   

  	
  X

  	
   

  	
  100

  	
  %

  
	
  Eligible Wages

  	
   

  	
   

  	
  X

  	
   

  	
  $200,000

  	
   

  
	
  Actual
  Quarterly Bonus Payment for Q2 FY07

  	
   

  	
   

  	
   

  	
  $22,500

  	
   

  
							

 

Q4 FY07

The
Participant’s quarterly bonus payment for Q4 FY07 will be calculated as
follows:

	
  

  	
   

  	
  Quarterly Bonus Target
  Percentage

  	
   

  
	
  x

  	
   

  	
  Bonus Plan Funding
  Percentage (Financial Measures and Corporate Solaris Goal, if applicable)

  	
   

  
	
  x

  	
   

  	
  Individual Performance
  Percentage

  	
   

  
	
  x

  	
   

  	
  Eligible Wages

  	
   

  	
   

  
	
  =

  	
   

  	
  Actual Quarterly Bonus Payment

  	
   

  
					

 

Example: In Q4 FY07,  if
the Company achieves 100% of its quarterly Operating Income goal and 100% of
its Revenue goal, and 100% of the Corporate Solaris goal, actual quarterly
bonus payment with an Individual Performance Percentage of 125% will be
calculated as follows:

Step One — Determine Bonus Plan Funding Percentage:

 3
 

 

 

	
  Company Actual Performance for Q4 FY07

  	
   

  	
  Percentage from

  Schedule

  	
   

  	
  Relative Weighting

  	
   

  
	
  Quarterly Operating Income — 100%

  	
   

  	
  100%

  	
   

  	
  50

  	
  %

  
	
  Quarterly Revenue — 100%

  	
   

  	
  100%

  	
   

  	
  50

  	
  %

  
	
  Solaris Goal

  	
   

  	
  100%

  	
   

  	
  6

  	
  %

  
	
  Bonus
  Plan Funding Percentage

  	
   

  	
   

  	
   

  	
  106

  	
  %

  

 

Step Two — Determine actual quarterly bonus payment:

 

	
  Quarterly Bonus Target Percentage

  	
   

  	
   

  	
   

  	
  15.75

  	
  %

  
	
  Bonus Plan Funding Percentage

  	
   

  	
  X

  	
   

  	
  106

  	
  %

  
	
  Individual Performance Percentage

  	
   

  	
  X

  	
   

  	
  125

  	
  %

  
	
  Eligible Wages

  	
   

  	
  X

  	
   

  	
  $200,000

  	
   

  
	
  Actual
  Quarterly Bonus Payment for Q4 FY07

  	
   

  	
   

  	
   

  	
  $41,737

  	
   

  

 

 

Bonus
Payment

In the U.S., bonus awards are taxable income, and will generally be paid
within 2 and half months after the close of each fiscal quarter. Bonuses are
paid in accordance with local payroll schedules in countries outside the U.S
and subject to local and regional tax provisions.

 

Communication
of Results

With respect to any particular fiscal quarter during fiscal year 2007,
results will be communicated as soon as possible after the Company’s quarterly
financial results are publicly announced.

 

General
Provisions and Plan Governance

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

 4

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