A DESCRIPTION OF THE PROBLEM :
The first code example doesn't work. Further the name pen is misleading.

EXPECTED VERSUS ACTUAL BEHAVIOR :
EXPECTED -
    public void paint(Graphics graphics) {
        
        Point2D pt2d = new Point2D.Float(10, 10);
        Graphics2D g2d = (Graphics2D)graphics;
        FontRenderContext frc = g2d.getFontRenderContext();
        
        AttributedString paragraphText = new AttributedString(text);
        paragraphText.addAttribute(TextAttribute.FONT, new Font("sans", Font.PLAIN, 10));
        LineBreakMeasurer measurer = new LineBreakMeasurer(paragraphText.getIterator(), frc);
        float wrappingWidth = getSize().width - 10;
         
        while (measurer.getPosition() < paragraphText.getIterator().getEndIndex()) {
            
            TextLayout layout = measurer.nextLayout(wrappingWidth);
            
            pt2d.setLocation(pt2d.getX(),pt2d.getY()+ layout.getAscent());
            float dx = layout.isLeftToRight() ?
                0 : (wrappingWidth - layout.getAdvance());
            
            layout.draw(g2d, (float)pt2d.getX() + dx, (float)pt2d.getY());
            pt2d.setLocation(pt2d.getX(), pt2d.getY() + layout.getDescent() + layout.getLeading());
        }
    }

ACTUAL -
public void paint(Graphics graphics) {

     Point2D pen = new Point2D(10, 20);
     Graphics2D g2d = (Graphics2D)graphics;
     FontRenderContext frc = g2d.getFontRenderContext();

     // let styledText be an AttributedCharacterIterator containing at least
     // one character

     LineBreakMeasurer measurer = new LineBreakMeasurer(styledText, frc);
     float wrappingWidth = getSize().width - 15;

     while (measurer.getPosition() < fStyledText.length()) {

         TextLayout layout = measurer.nextLayout(wrappingWidth);

         pen.y += (layout.getAscent());
         float dx = layout.isLeftToRight() ?
             0 : (wrappingWidth - layout.getAdvance());

         layout.draw(graphics, pen.x + dx, pen.y);
         pen.y += layout.getDescent() + layout.getLeading();
     }
 }

URL OF FAULTY DOCUMENTATION :
http://java.sun.com/javase/6/docs/api/java/awt/font/LineBreakMeasurer.html