NON-STATUTORY STOCK OPTION AGREEMENT
SUN MICROSYSTEMS, INC. (the “Company”), a Delaware corporation, hereby grants to (the “Optionee”), an option to
purchase a total of shares of Common Stock (the “Shares”), at the price determined as provided herein, and in all
respects subject to the terms, definitions and provisions of the 1996 Equity Compensation Acquisition Plan (the “Plan”)
adopted by the Company which is incorporated herein by reference. The terms defined in the Plan shall have the same defined
1) NATURE OF THE OPTION
This option is intended by the Company and the Optionee to be a nonstatutory stock option, and does not qualify for
any special tax benefits to the Optionee. This option is not an Incentive Stock Option and is not subject to Section 7
(g) of the Plan.
2) OPTION PRICE
The option Price is for each share of Common Stock.
3) EXERCISE OF OPTION
This option shall be exercisable during its term in accordance with the provisions of Section 7 of the Plan as follows:
(i) RIGHT TO EXERCISE
(a) Subject to subsections 3(i)(b), (c) and (d), below, this option shall be exercisable cumulatively, to the extent of 20%
of the Shares subject to the option on or after and to the extent of an additional 20% of the Shares on each
yearly anniversary of such date thereafter.
(b) Notwithstanding subsection 3(i)(a), above, and subject to subsections 3(i)(c), 7 and 8, below, in the event of
Optionee’s death or disability, this option shall be exercisable cumulatively, to the extent of 1.6667% of the Shares
subject to the option on or after one month following the vesting commencement date and to the extent of an
additional 1.6667% of the Shares on each monthly anniversary of such date thereafter.
(c) This option may not be exercised for a fraction of a share.
(d) In the event of Optionee’s termination of employment, the exercisability of the option is governed