Chief Executive Officer Bonus Terms for FY07 Under the
Section 162(m) Executive Officer Performance-Based Bonus Plan
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.
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.
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”):
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