Document:

Exhibit 4.2

 

(33rd Series U.S. Participants)

 

 

AGREEMENT CONCERNING

ALLOCATION OF THE STOCK ACQUISITION
RIGHTS 

OF SONY CORPORATION

FOR THE FISCAL YEAR 2016

 

 

SONY CORPORATION (hereinafter
referred to as the “Corporation”) and ___________________ (hereinafter referred to as the “Qualified Person”)
enter into this Agreement as follows in connection with the allocation of the stock acquisition rights (hereinafter referred to
as the “Options”) to be issued by the Corporation pursuant to the provisions of the terms and conditions of the Options
(hereinafter referred to as the “Terms and Conditions”) set forth in Exhibit 1 attached hereto and pursuant to the
special resolution adopted at the 99th Ordinary General Meeting of Shareholders held on June 17, 2016 and the resolution adopted
at the meeting of the Board of Directors held on November 1, 2016:

 

 

Article
1(Purpose and Administration)

The primary purpose
of allocating the Options to the Qualified Person is to give the Qualified Person an incentive to contribute towards the improvement
of the business performance of the Sony Group (the Corporation and its group companies) and thereby improve such business performance
by making the economic interest, which the Qualified Person will receive, correspond to the business performance of the Corporation.
This Agreement and the Terms and Conditions shall be administered by the Corporation, and such representative corporate executive
officers or other persons as the Corporation may designate from time to time who represent the Corporation in respect of this Agreement,
the Terms and Conditions and the Options.

 

Article
2(Restrictions under the Terms and Conditions and this Agreement)

The Options shall
be subject to (1) the Terms and Conditions, which are attached to this Agreement as Exhibit 1, and (2) the conditions and restrictions
provided for in this Agreement. The Qualified Person agrees to be bound by the conditions and restrictions set forth in the Terms
and Conditions and this Agreement. Notwithstanding the provisions of the Terms and Conditions, the exercise of the Options is further
subject to such additional conditions as set forth herein. In particular, the exercise of the Options is subject to the restrictions
under Articles 5 and 7.

 

Article
3(Subscription for and Allocation of the Options)

The Qualified
Person hereby applies for the subscription for Options issued in accordance with the Terms and Conditions, and pursuant to this
Agreement, the Corporation

    	 

    	 

    

allocates such number of the Options
to the Qualified Person in accordance with the following terms on November 22, 2016 (hereinafter referred to as the “Allotment
Date”).

		(1)	Number of the Options allocated to the Qualified Person:

(________
shares may be issued or transferred upon the exercise by the Qualified Person of all Options allocated to the Qualified Person
pursuant to this Agreement.)

		(2)	Class and number of shares to be issued or transferred upon exercise of each Option:

100 shares of common stock
of the Corporation

		(3)	Amount to be paid per share to be issued or transferred upon exercise of the Options (hereinafter
referred to as the “Exercise Price”) is initially as set forth in Exhibit 2 attached hereto.

		(4)	Period during which the Options may be exercised:

From and including November
22, 2017, to and including November 21, 2026 (hereinafter referred to as the “Term”). If the last day of such period
falls on a holiday of the Corporation, the immediately preceding business day shall be the last day of such period. However, exercise
of the Options is subject to the restrictions provided for in Article 5.

The number of
shares to be issued or transferred upon exercise of each Option and the Exercise Price may be adjusted pursuant to the provisions
of the Terms and Conditions.

 

Article
4 (Information on Corporation and its Shares)

		(1)	Trade name of the Corporation:

SONY CORPORATION

		(2)	Total number of shares authorized to be issued by the Corporation:

3,600,000,000 shares

		(3)	Number of shares constituting one (1) unit of shares:

100
shares

		(4)	Transfer Agent

Mitsubishi UFJ Trust and
Banking Corporation

4-5, Marunouchi 1-chome,
Chiyoda-ku, Tokyo

(Business office)Mitsubishi
UFJ Trust and Banking Corporation

Corporate
Agency Division

4-5, Marunouchi
1-chome, Chiyoda-ku, Tokyo

		(5)	Application of the Act on Transfer of Bonds, Shares, etc.

    	-2- 

    	 

    

The provisions of the Act
on Transfer of Bonds, Shares, etc. will apply to shares of common stock of Sony Corporation to be issued or transferred upon exercise
of each Option.

Article
5(Vesting, Conditions for Exercise of the Options and Prohibition of Disposition)

		(1)	Vesting and exercise of the Options are further subject to the restrictions and conditions as set
forth in Exhibit 3 attached hereto.

		(2)	Except as provided in Article 7, the Options, whether vested or unvested, are nontransferable by
the Qualified Person.

		(3)	Exercise of the Options are further subject to any restriction on trading set forth under Sony
Corporation of America’s Policy Regarding Securities Trading or any other similar policy maintained by Sony group companies
(hereinafter referred to as the “Sony Group Companies”) and applicable to the Qualified Person, as in effect from time
to time.

		(4)	Exercise of the Options may be restricted for limited periods of time as deemed reasonably necessary
by Sony Corporation to ensure proper administration (including but not limited to restrictions on exercise at or around the end
of each fiscal quarter) and as communicated to the applicable Qualified Person.

		(5)	In no circumstances shall any Qualified Person request the Corporation to purchase the Options
held by him/her.

 

Article
6(Procedures for Exercising the Options)

Procedures for
exercising the Options shall be provided for in the Terms and Conditions, and in addition, detailed matters concerning such procedures
shall be provided for in a separate document to be separately provided and delivered by the Corporation or one of its subsidiaries
to the Qualified Person no later than the date on which the Options held by the Qualified Person first become exercisable pursuant
to Article 5.

 

Article
7(Inheritance of the Options)

Upon the death
of the Qualified Person, outstanding Options that are vested and exercisable and granted to such Qualified Person may be exercised
only by the executors or administrators of the Qualified Person’s estate or by any person or persons who shall have acquired
such right to exercise by will or by the laws of descent and distribution, provided that no transfer by will or the laws of descent
and distribution of any Option, or the right to exercise any Option, shall be effective to bind the Corporation unless the Corporation
shall have been furnished with (a) a written notice thereof and a copy of the will and/or such evidence as the Corporation may
deem necessary to establish the validity of the transfer and (b) an agreement by the transferee to comply with all the terms and
conditions of the Options that are or would have been applicable to the Qualified Person (other than any terms and conditions relating
to employment with the Corporation or one of its subsidiaries) and to be bound by the acknowledgements made by the Qualified Person
in connection with the grant

    	-3- 

    	 

    

of the Options. Options that are
not vested and exercisable at the death of the Qualified Person will terminate.

Article
8(Issuance of ADRs)

The Corporation
currently maintains an American Depositary Receipt program in the United States pursuant to which American Depositary Receipts
or “ADRs” represent shares of common stock of the Corporation. During the time the Corporation maintains an American
Depositary Receipt program in the United States, the Qualified Persons who exercise the Options will generally receive ADRs in
lieu of shares of common stock of the Corporation as follows. Upon exercise of an Option, shares of common stock of the Corporation
acquired upon the exercise of such Option shall be issued in the name of the depositary or its nominee under the Sony American
Depositary Receipt Program for the benefit of the Qualified Person. Upon receipt of shares of common stock of the Corporation upon
the exercise of an Option, the depositary under the Sony American Depositary Receipt Program shall immediately and automatically
issue ADRs representing such shares of common stock of the Corporation in the name of the applicable Qualified Person and shall
deliver such ADRs to such Qualified Person (or to an account held for the benefit of such Qualified Person) as soon as practicable
following the effective date on which such issuance occurs. For simplicity, all references in this Agreement and the Terms and
Conditions to shares of common stock of the Corporation will be deemed to also refer to ADRs.

 

Article
9(Treatment in Events of Corporate Transaction)

1.       In
the event of any corporate transaction excluding (a) a consolidation, amalgamation or merger in which the Corporation is not the
continuing corporation, or (b) share exchange (kabushiki-kokan) or share transfer (kabushiki-iten) pursuant to which
the Corporation is to become a wholly-owned subsidiary of another corporation involving the Corporation, including a dissolution
or liquidation of the Corporation, a sale of all or substantially all of the Corporation’s assets, a corporate split, or
any other similar transaction, the Corporation may (x) cause the entity resulting from such transaction to execute an agreement
providing that a holder of the Options shall have the right during the Term and upon the exercise of the Options to receive the
class and amount of shares and other securities and property receivable upon such transaction by a holder of the number of shares
in respect of which the Options could have been exercised immediately prior to such transaction or (y) prevent from being exercised,
effective immediately upon the occurrence of such transaction, each Option outstanding immediately prior to such transaction (whether
or not then exercisable).

2.       In
the event that the Corporation enters into a definitive agreement or makes a decision by board resolution or by shareholder approval
at the shareholders’ meeting to effectuate one (1) or more of the transactions or events described in the immediately preceding
Paragraph, the Corporation may provide not less than twenty days advance notice to the Qualified Person from the consummation of
such transaction or event and give the Qualified Person the opportunity to exercise their Options (whether or not such Options
are then vested or exercisable), immediately prior to, and subject to, the consummation of such transaction or event.

 

    	-4- 

    	 

    

Article
10(Withholding by the Corporation)

In connection
with Item (2) of Condition 13 of the Terms and Conditions, the Corporation or its designee is authorized to withhold from any payment
relating to an Option or from any payroll or other payment to the Qualified Person, amounts of withholding and other taxes or fees
due in connection with the Option, and to take any other action to the extent permissible under applicable law as the Corporation
may deem advisable to enable the Corporation and the Qualified Person to satisfy obligations for the payment of withholding taxes,
other tax obligations and other costs and fees relating to the Options. This authority shall include, either on a mandatory or
elective basis in the discretion of the Corporation, authority (a) to withhold or receive shares of common stock of the Corporation
or other property and (b) to make cash payments in respect thereof in satisfaction of the Qualified Person’s tax obligations
and other costs and fees relating to the Options.

 

Article
11(Condition Subsequent)

This Agreement
shall terminate, automatically, without any procedures being taken, in the event that the Qualified Person is not in the position
of director, corporate executive officer, officer or employee of the Corporation or of the Sony Group Companies on the Allotment
Date.

 

Article
12(Compliance with the Applicable Securities Law, Etc.)

The Qualified
Person shall, in selling the shares of common stock of the Corporation acquired upon exercise of the Options, confirm in advance
with the Corporation that such proposed sale is permissible under any and all applicable policies, programs, arrangements or other
provisions relating to insider trading maintained by the Corporation or any of its subsidiaries and shall comply with any and all
applicable laws and regulations, including but not limited to U.S. and Japanese laws.

 

Article
13(Amendment to this Agreement and Treatment of Matters Not Provided for in this Agreement)

1.       Except
as otherwise provided in this Agreement (including any Exhibit to this Agreement), this Agreement (including any Exhibit to this
Agreement) cannot be modified or amended in any manner except by a further agreement expressly stating the intention to modify
this Agreement and which is signed by both parties to this Agreement.

2.       Notwithstanding
the immediately preceding Paragraph, if it is found out that this Agreement is not in compliance with the Companies Act, the Financial
Instruments and Exchange Act, the Income Tax Act, the Corporation Tax Act or any other related laws or regulations of Japan or
any applicable laws of any other jurisdiction, or if this Agreement becomes not in compliance therewith as a result of amendments
thereto which become effective after the conclusion of this Agreement, the Corporation may, without the consent of the Qualified
Person, with notice to the Qualified Person, adequately establish, amend or eliminate the subject provisions.

    	-5- 

    	 

    

3.       With
respect to matters not provided for in this Agreement or documents provided under Article 6 of this Agreement, such matters shall
be determined by consultation in good faith between the Corporation and the Qualified Person. In the event that the Qualified Person
rejects such consultation, or in the event that such consultation fails to bring an agreement, such matters shall be decided by
the Corporation and such representative corporate executive officers or other persons as the Corporation may designate from time
to time to represent the Corporation in respect of the Terms and Conditions, the Options and this Agreement. Decisions of the Corporation
or such representative corporate executive officers or other persons as the Corporation may designate from time to time to represent
the Corporation in respect of the Terms and Conditions, the Options and this Agreement shall be final and binding on all parties.
None of the Corporation or such representative corporate executive officers or other persons as the Corporation may designate from
time to time to represent the Corporation in respect of the Terms and Conditions, the Options or this Agreement shall be liable
to any Qualified Person for any action, omission or determination relating to the Terms and Conditions, the Options or this Agreement.

 

Article
14(Manner of Notice)

Notices by the
Corporation to the Qualified Person under the Terms and Conditions and this Agreement shall be made in any of the following manners:

		(1)	delivering (including mailing) a written notice to the address of the Qualified Person set forth
in the register of the Options;

		(2)	sending documents to the Qualified Person at his/her department in the Corporation (including any
Sony Group Company) or sending electronic data to the e-mail address of the Qualified Person at the Corporation (including any
Sony Group Company); or

		(3)	giving notice on the web site of the Corporation (including any Sony Group Company) or its duly
authorized designee.

 

Article
15(Construction)

Nothing herein
shall be construed to give the Qualified Person any right or entitlement to receive options to purchase common stock of the Corporation
in the future from the Corporation or any of its subsidiaries. Nothing contained herein shall confer upon the Qualified Person
any right to continue in the employment of the Corporation or any of its subsidiaries or constitute any contract or agreement of
employment or interfere in any way with the right of the Corporation or its subsidiaries to reduce or modify a Qualified Person’s
compensation in existence at the time of the granting of any Option or otherwise, or to terminate a Qualified Person’s employment
or change the Qualified Person’s position or the terms of employment with or without cause. Nothing contained herein shall
prevent the Corporation from, and the Corporation expressly reserves the right to, modify the terms and conditions of options to
purchase common stock of the Corporation, if any, that are or may be granted in the future.

 

    	-6- 

    	 

    

Article
16(Governing Law and Jurisdiction)

This Agreement
shall be governed by and construed in accordance with the laws of Japan. The Tokyo District Court shall have the exclusive jurisdiction
for settling any and all disputes that arise under or in connection with this Agreement.

    	-7- 

    	 

    

IN WITNESS WHEREOF, this Agreement
and the grant of the Options provided for herein shall be effective as of the date that either: (i) two (2) originals of this Agreement
have been prepared and executed by seal impressions or signatures by the Corporation and the Qualified Person, each party retaining
one (1) original or (ii) the Qualified Person has accepted the grant of Options via electronic means, in accordance with procedures
specified by the Corporation (including any Sony Group Company) for such purpose, by providing a valid electronic signature.

 

 

 

SONY CORPORATION

7-1, Konan 1-chome, Minato-ku,
Tokyo

 

 

 

By:                                                     

Kazuo Hirai

President and Chief Executive
Officer,

Representative Corporate Executive
Officer

Date: November 21, 2016

 

 

QUALIFIED PERSON

 

 

By:                                                    

Name:

 

Address:

Date: November 21, 2016

 

 

    	-8- 

    	 

    

 

(33rd Series Non-US Participants)

 

 

AGREEMENT CONCERNING

ALLOCATION OF THE STOCK ACQUISITION
RIGHTS 

OF SONY CORPORATION

FOR THE FISCAL YEAR 2016

 

 

SONY CORPORATION (hereinafter
referred to as the “Corporation”) and ___________________ (hereinafter referred to as the “Qualified Person”)
enter into this Agreement as follows in connection with the allocation of the stock acquisition rights (hereinafter referred to
as the “Options”) to be issued by the Corporation pursuant to the provisions of the terms and conditions of the Options
(hereinafter referred to as the “Terms and Conditions”) set forth in Exhibit 1 attached hereto and pursuant to the
special resolution adopted at the 99th Ordinary General Meeting of Shareholders held on June 17, 2016 and the resolution adopted
at the meeting of the Board of Directors held on November 1, 2016:

 

 

Article
1(Purpose and Administration)

The primary purpose
of allocating the Options to the Qualified Person is to give the Qualified Person an incentive to contribute towards the improvement
of the business performance of the Sony Group (the Corporation and its group companies) and thereby improve such business performance
by making the economic interest, which the Qualified Person will receive, correspond to the business performance of the Corporation.
This Agreement and the Terms and Conditions shall be administered by the Corporation, and such representative corporate executive
officers or other persons as the Corporation may designate from time to time who represent the Corporation in respect of this Agreement,
the Terms and Conditions and the Options.

 

Article
2(Restrictions under the Terms and Conditions and this Agreement)

The Options shall
be subject to (1) the Terms and Conditions, which are attached to this Agreement as Exhibit 1, and (2) the conditions and restrictions
provided for in this Agreement. The Qualified Person agrees to be bound by the conditions and restrictions set forth in the Terms
and Conditions and this Agreement. Notwithstanding the provisions of the Terms and Conditions, the exercise of the Options is further
subject to such additional conditions as set forth herein. In particular, the exercise of the Options is subject to the restrictions
under Articles 5 and 7.

 

Article
3(Subscription for and Allocation of the Options)

The Qualified
Person hereby applies for the subscription for Options issued in accordance with the Terms and Conditions, and pursuant to this
Agreement, the Corporation allocates such number of the Options to the Qualified Person in accordance with the following terms
on November 22, 2016 (hereinafter referred to as the “Allotment Date”).

    	 

    	 

    

		(1)	Number of the Options allocated to the Qualified Person:

(________
shares may be issued or transferred upon the exercise by the Qualified Person of all Options allocated to the Qualified Person
pursuant to this Agreement.)

		(2)	Class and number of shares to be issued or transferred upon exercise of each Option:

100 shares of common stock
of the Corporation

		(3)	Amount to be paid per share to be issued or transferred upon exercise of the Options (hereinafter
referred to as the “Exercise Price”) is initially as set forth in Exhibit 2 attached hereto.

		(4)	Period during which the Options may be exercised:

From and including November
22, 2017, to and including November 21, 2026 (hereinafter referred to as the “Term”). If the last day of such period
falls on a holiday of the Corporation, the immediately preceding business day shall be the last day of such period. However, exercise
of the Options is subject to the restrictions provided for in Article 5.

The number of
shares to be issued or transferred upon exercise of each Option and the Exercise Price may be adjusted pursuant to the provisions
of the Terms and Conditions.

 

Article
4 (Information on Corporation and its Shares)

		(1)	Trade name of the Corporation:

SONY CORPORATION

		(2)	Total number of shares authorized to be issued by the Corporation:

3,600,000,000 shares

		(3)	Number of shares constituting one (1) unit of shares:

100
shares

		(4)	Transfer Agent

Mitsubishi UFJ Trust and
Banking Corporation

4-5, Marunouchi 1-chome,
Chiyoda-ku, Tokyo

(Business office)Mitsubishi
UFJ Trust and Banking Corporation

Corporate
Agency Division

4-5, Marunouchi
1-chome, Chiyoda-ku, Tokyo

		(5)	Application of the Act on Transfer of Bonds, Shares, etc.

The provisions of the Act on
Transfer of Bonds, Shares, etc. will apply to shares of common stock of Sony Corporation to be issued or transferred upon exercise
of each Option.

 

    	-2- 

    	 

    

Article
5(Vesting, Conditions for Exercise of the Options and Prohibition of Disposition)

		(1)	Vesting and exercise of the Options are further subject to the restrictions as set forth in Exhibit
3 attached hereto.

		(2)	Except as provided in Article 7, the Options, whether vested or unvested, are nontransferable by
the Qualified Person.

		(3)	Exercise of the Options are further subject to any restriction on trading set forth under Sony
Corporation of America’s Policy Regarding Securities Trading or any other similar policy maintained by Sony group companies
(hereinafter referred to as the “Sony Group Companies”) and applicable to the Qualified Person, as in effect from time
to time.

		(4)	Exercise of the Options may be restricted for limited periods of time as deemed reasonably necessary
by Sony Corporation to ensure proper administration (including but not limited to restrictions on exercise at or around the end
of each fiscal quarter) and as communicated to the applicable Qualified Person.

		(5)	In no circumstances shall any Qualified Person request the Corporation to purchase the Options
held by him/her.

 

Article
6(Procedures for Exercising the Options)

Procedures for
exercising the Options shall be provided for in the Terms and Conditions, and in addition, detailed matters concerning such procedures
shall be provided for in a separate document to be separately provided and delivered by the Corporation or one of its subsidiaries
to the Qualified Person no later than the date on which the Options held by the Qualified Person first become exercisable pursuant
to Article 5.

 

Article
7(Inheritance of the Options)

Upon the death
of the Qualified Person, outstanding Options that are vested and exercisable and granted to such Qualified Person may be exercised
only by the executors or administrators of the Qualified Person’s estate or by any person or persons who shall have acquired
such right to exercise by will or by the laws of descent and distribution, provided that no transfer by will or the laws of descent
and distribution of any Option, or the right to exercise any Option, shall be effective to bind the Corporation unless the Corporation
shall have been furnished with (a) a written notice thereof and a copy of the will and/or such evidence as the Corporation may
deem necessary to establish the validity of the transfer and (b) an agreement by the transferee to comply with all the terms and
conditions of the Options that are or would have been applicable to the Qualified Person (other than any terms and conditions relating
to employment with the Corporation or one of its subsidiaries) and to be bound by the acknowledgements made by the Qualified Person
in connection with the grant of the Options. Options that are not vested and exercisable at the death of the Qualified Person will
terminate.

 

    	-3- 

    	 

    

Article
8(Issuance of ADRs)

The Corporation
currently maintains an American Depositary Receipt program in the United States pursuant to which American Depositary Receipts
or “ADRs” represent shares of common stock of the Corporation. During the time the Corporation maintains an American
Depositary Receipt program in the United States, the Qualified Persons who exercise the Options will generally receive ADRs in
lieu of shares of common stock of the Corporation as follows. Upon exercise of an Option, shares of common stock of the Corporation
acquired upon the exercise of such Option shall be issued in the name of the depositary or its nominee under the Sony American
Depositary Receipt Program for the benefit of the Qualified Person. Upon receipt of shares of common stock of the Corporation upon
the exercise of an Option, the depositary under the Sony American Depositary Receipt Program shall immediately and automatically
issue ADRs representing such shares of common stock of the Corporation in the name of the applicable Qualified Person and shall
deliver such ADRs to such Qualified Person (or to an account held for the benefit of such Qualified Person) as soon as practicable
following the effective date on which such issuance occurs. For simplicity, all references in this Agreement and the Terms and
Conditions to shares of common stock of the Corporation will be deemed to also refer to ADRs.

 

Article
9(Treatment in Events of Corporate Transaction)

1.       In
the event of any corporate transaction excluding (a) a consolidation, amalgamation or merger in which the Corporation is not the
continuing corporation, or (b) share exchange (kabushiki-kokan) or share transfer (kabushiki-iten) pursuant to which
the Corporation is to become a wholly-owned subsidiary of another corporation involving the Corporation, including a dissolution
or liquidation of the Corporation, a sale of all or substantially all of the Corporation’s assets, a corporate split, or
any other similar transaction, the Corporation may (x) cause the entity resulting from such transaction to execute an agreement
providing that a holder of the Options shall have the right during the Term and upon the exercise of the Options to receive the
class and amount of shares and other securities and property receivable upon such transaction by a holder of the number of shares
in respect of which the Options could have been exercised immediately prior to such transaction or (y) prevent from being exercised,
effective immediately upon the occurrence of such transaction, each Option outstanding immediately prior to such transaction (whether
or not then exercisable).

2.       In
the event that the Corporation enters into a definitive agreement or makes a decision by board resolution or by shareholder approval
at the shareholders’ meeting to effectuate one (1) or more of the transactions or events described in the immediately preceding
Paragraph, the Corporation may provide not less than twenty days advance notice to the Qualified Person from the consummation of
such transaction or event and give the Qualified Person the opportunity to exercise their Options (whether or not such Options
are then vested or exercisable), immediately prior to, and subject to, the consummation of such transaction or event.

 

Article
10(Withholding by the Corporation)

In connection
with Item (2) of Condition 13 of the Terms and Conditions, the Corporation or its designee is authorized to withhold from any payment
relating to an Option or from any

    	-4- 

    	 

    

payroll or other payment to the
Qualified Person, amounts of withholding and other taxes or fees due in connection with the Option, and to take any other action
to the extent permissible under applicable law as the Corporation may deem advisable to enable the Corporation and the Qualified
Person to satisfy obligations for the payment of withholding taxes, other tax obligations and other costs and fees relating to
the Options. This authority shall include, either on a mandatory or elective basis in the discretion of the Corporation, authority
(a) to withhold or receive shares of common stock of the Corporation or other property and (b) to make cash payments in respect
thereof in satisfaction of the Qualified Person’s tax obligations and other costs and fees relating to the Options.

 

Article
11(Condition Subsequent)

This Agreement
shall terminate, automatically, without any procedures being taken, in the event that the Qualified Person is not in the position
of director, corporate executive officer, officer or employee of the Corporation or of the Sony Group Companies on the Allotment
Date.

 

Article
12(Compliance with the Applicable Securities Law, Etc.)

The Qualified
Person shall, in selling the shares of common stock of the Corporation acquired upon exercise of the Options, confirm in advance
with the Corporation that such proposed sale is permissible under any and all applicable policies, programs, arrangements or other
provisions relating to insider trading maintained by the Corporation or any of its subsidiaries and shall comply with any and all
applicable laws and regulations, including but not limited to U.S. and Japanese laws.

 

Article
13(Representations, Warranties, Covenants and Confirmations)

The Qualified
Person shall represent, warrant, covenant and confirm the matters set forth in Exhibit 4 attached hereto for the benefit of the
Corporation.

 

Article
14(Amendment to this Agreement and Treatment of Matters Not Provided for in this Agreement)

1.       Except
as otherwise provided in this Agreement (including any Exhibit to this Agreement), this Agreement (including any Exhibit to this
Agreement) cannot be modified or amended in any manner except by a further agreement expressly stating the intention to modify
this Agreement and which is signed by both parties to this Agreement.

2.       Notwithstanding
the immediately preceding Paragraph, if it is found out that this Agreement is not in compliance with the Companies Act, the Financial
Instruments and Exchange Act, the Income Tax Act, the Corporation Tax Act or any other related laws or regulations of Japan or
any applicable laws of any other jurisdiction, or if this Agreement becomes not in compliance therewith as a result of amendments
thereto which become effective after the conclusion of this Agreement, the Corporation may, without the consent of the Qualified
Person, with notice to the Qualified Person, adequately establish, amend or eliminate the subject provisions.

    	-5- 

    	 

    

3.       With
respect to matters not provided for in this Agreement or documents provided under Article 6 of this Agreement, such matters shall
be determined by consultation in good faith between the Corporation and the Qualified Person. In the event that the Qualified Person
rejects such consultation, or in the event that such consultation fails to bring an agreement, such matters shall be decided by
the Corporation and such representative corporate executive officers or other persons as the Corporation may designate from time
to time to represent the Corporation in respect of the Terms and Conditions, the Options and this Agreement. Decisions of the Corporation
or such representative corporate executive officers or other persons as the Corporation may designate from time to time to represent
the Corporation in respect of the Terms and Conditions, the Options and this Agreement shall be final and binding on all parties.
None of the Corporation or such representative corporate executive officers or other persons as the Corporation may designate from
time to time to represent the Corporation in respect of the Terms and Conditions, the Options or this Agreement shall be liable
to any Qualified Person for any action, omission or determination relating to the Terms and Conditions, the Options or this Agreement.

 

Article
15(Manner of Notice)

Notices by the
Corporation to the Qualified Person under the Terms and Conditions and this Agreement shall be made in any of the following manners:

		(1)	delivering (including mailing) a written notice to the address of the Qualified Person set forth
in the register of the Options;

		(2)	sending documents to the Qualified Person at his/her department in the Corporation (including any
Sony Group Company) or sending electronic data to the e-mail address of the Qualified Person at the Corporation (including any
Sony Group Company); or

		(3)	giving notice on the web site of the Corporation (including any Sony Group Company) or its duly
authorized designee.

 

Article
16(Construction)

Nothing herein
shall be construed to give the Qualified Person any right or entitlement to receive options to purchase common stock of the Corporation
in the future from the Corporation or any of its subsidiaries. Nothing contained herein shall confer upon the Qualified Person
any right to continue in the employment of the Corporation or any of its subsidiaries or constitute any contract or agreement of
employment or interfere in any way with the right of the Corporation or its subsidiaries to reduce or modify a Qualified Person’s
compensation in existence at the time of the granting of any Option or otherwise, or to terminate a Qualified Person’s employment
or change the Qualified Person’s position or the terms of employment with or without cause. Nothing contained herein shall
prevent the Corporation from, and the Corporation expressly reserves the right to, modify the terms and conditions of options to
purchase common stock of the Corporation, if any, that are or may be granted in the future.

 

    	-6- 

    	 

    

Article
17(Governing Law and Jurisdiction)

This Agreement
shall be governed by and construed in accordance with the laws of Japan. The Tokyo District Court shall have the exclusive jurisdiction
for settling any and all disputes that arise under or in connection with this Agreement.

    	-7- 

    	 

    

IN WITNESS WHEREOF, this Agreement
and the grant of the Options provided for herein shall be effective as of the date that either: (i) two (2) originals of this Agreement
have been prepared and executed by seal impressions or signatures by the Corporation and the Qualified Person, each party retaining
one (1) original or (ii) the Qualified Person has accepted the grant of Options via electronic means, in accordance with procedures
specified by the Corporation (including any Sony Group Company) for such purpose, by providing a valid electronic signature.

 

 

 

SONY CORPORATION

7-1, Konan 1-chome, Minato-ku,
Tokyo

 

 

 

By:                                                    

Kazuo Hirai

President and Chief Executive
Officer,

Representative Corporate Executive
Officer

Date: November 21, 2016

 

 

QUALIFIED PERSON

 

 

By:                                                    

Name:

 

Address:

Date: November 21, 2016

 

 

    	-8- 

    	 

    

Exhibit 1

 

 

TERMS AND CONDITIONS OF THE THIRTY-THIRD
SERIES OF

STOCK ACQUISITION RIGHTS

FOR SHARES OF COMMON STOCK OF SONY CORPORATION

 

 

These terms and conditions
of the stock acquisition rights shall apply to the Thirty-Third Series of Stock Acquisition Rights for Shares of Common Stock (hereinafter
referred to as the “Options”) of Sony Corporation (hereinafter referred to as the “Corporation”) issued
on November 22, 2016 by the Corporation in accordance with the special resolution adopted at the 99th Ordinary General Meeting
of Shareholders held on June 17, 2016 and the resolution adopted at the meeting of the Board of Directors held on November 1, 2016:

 

		1.	Aggregate Number of Options

 

17,281

 

		2.	Class and Number of Shares to be Issued or Transferred upon Exercise of Options

 

The class of shares to be issued
or transferred upon exercise of the Options shall be shares of common stock, and the number of shares to be issued or transferred
upon exercise of each Option (hereinafter referred to as the “Number of Granted Shares”) shall be 100 shares.

 

The aggregate number of shares
to be issued or transferred upon exercise of the Options shall be 1,728,100 shares of common stock of the Corporation (hereinafter
referred to as the “Common Stock”). However, in the event that the Number of Granted Shares is adjusted pursuant to
Condition 3 below, the aggregate number of shares to be issued or transferred upon exercise of the Options shall be adjusted to
the number obtained by multiplying the Number of Granted Shares after adjustment by the aggregate number of the Options as prescribed
in Condition 1 above.

 

		3.	Adjustment of Number of Granted Shares

 

		(1)	In the event that the Corporation conducts a stock split (including free distribution of shares
(musho-wariate)) or consolidation of the Common Stock, the Number of Granted Shares shall be adjusted in accordance with
the following formula:

 

	Number of Granted Shares after adjustment	=	Number of Granted Shares before adjustment	x	Ratio of split or consolidation

 

		(2)	An adjustment to the Number of Granted Shares under the immediately preceding Item shall be made
only with respect to the Number of Granted Shares for the Options which have not been exercised at the time of the adjustment.
Any fraction less than one (1) share resulting from the adjustment shall be disregarded.

 

		(3)	The effective date of the Number of Granted Shares after adjustment shall be the same day as the
date on which the Exercise Price after adjustment becomes effective as provided for in Item (2) of Condition 7 with regard to the
adjustment of the Exercise Price pursuant to Condition 7 for the same reason as the adjustment of the Number of Granted Shares.

 

		(4)	When the Number of Granted Shares is adjusted, the Corporation shall give notice of necessary matters
to each holder of the Options registered in the register of Options, no later than the day immediately preceding the effective
date of the Number of Granted Shares after adjustment; provided, however, that if the Corporation is unable to give such notice
no later than the day immediately preceding such effective date, the Corporation shall promptly give such notice on or after such
effective date.

 

		4.	Payment in exchange for Options

 

The Options are issued without
payment of any consideration to the Corporation.

    	 

    	 

    

		5.	Allotment Date of Options

 

November 22, 2016 (hereinafter
referred to as the “Allotment Date”)

 

		6.	Amount of Assets to be Contributed upon Exercise of Options

 

The amount of assets to be contributed
upon exercise of the Options shall be the amount obtained by multiplying the amount to be paid per share to be issued or transferred
upon exercise of the Options (hereinafter referred to as the “Exercise Price”) by the Number of Granted Shares. The
Exercise Price is initially as set forth in Exhibit 2 attached to the Agreement concerning Allocation of the Stock Acquisition
Rights of Sony Corporation for the Fiscal Year 2016 dated November 21, 2016.

 

		7.	Adjustment of Exercise Price

 

		(1)	In the event that the Corporation conducts a stock split (including free distribution of shares
(musho-wariate)) or consolidation of the Common Stock after the Allotment Date of the Options, the Exercise Price shall
be adjusted in accordance with the following formula, and any fraction less than one (1) cent resulting from the adjustment shall
be rounded up to the nearest one (1) cent:

 

	Exercise Price after adjustment	=	Exercise Price before adjustment	x	1
	Ratio of split or consolidation

 

		(2)	In the case that the Exercise Price is adjusted pursuant to the immediately preceding Item, the
effective date of the Exercise Price after adjustment shall be as set forth below:

 

The Exercise Price after adjustment
shall become effective, in the case of a stock split, on and after the day immediately following the record date for such stock
split, and in the case of a stock consolidation, on and after the effective date thereof.

 

 

		(3)	In addition to the cases in Item (1) of this Condition where the Exercise Price is required to
be adjusted, the Exercise Price shall be adjusted in a manner deemed to be appropriate by the Corporation in the following cases.

 

		(i)	When the Exercise Price is required to be adjusted due to a merger, corporate split (split by new
incorporation or by absorption) or reduction of the amount of capital of the Corporation.

 

		(ii)	In addition to Item (i) above, when the Exercise Price is required to be adjusted due to the occurrence
of an event that causes or may cause a change in the total number of the issued Common Stock.

 

		(4)	When the Exercise Price is adjusted, the Corporation shall give notice of necessary matters to
each holder of the Options registered in the register of Options, no later than the day immediately preceding the effective date
of the Exercise Price after adjustment; provided, however, that if the Corporation is unable to give such notice no later than
the day immediately preceding such effective date, the Corporation shall promptly give such notice on or after such effective date.

 

		8.	Period during which Options May be Exercised

 

From and including November 22,
2017, up to and including November 21, 2026. If the last day of such period falls on a holiday of the Corporation, the immediately
preceding business day shall be the last day of such period.

 

		9.	Conditions for Exercise of Options

 

		(1)	No Option may be exercised in part.

 

		(2)	In the event of a resolution being passed at a general meeting of shareholders of the Corporation
for an agreement for any consolidation, amalgamation or merger (other than a consolidation, amalgamation or merger in which the
Corporation is the continuing corporation), or in the event of a

    	2 

    	 

    

resolution being passed at a general
meeting of shareholders of the Corporation (or, where a resolution of a general meeting of shareholders is not necessary, at a
meeting of the Board of Directors of the Corporation) for any agreement for share exchange (kabushiki-kokan) or any plan
for share transfer (kabushiki-iten) pursuant to which the Corporation is to become a wholly-owned subsidiary of another
corporation, the Options may not be exercised on and after the effective date of such consolidation, amalgamation or merger, such
share exchange (kabushiki-kokan), or such share transfer (kabushiki-iten).

 

		10.	Restrictions under the U.S. Securities Act and Other Matters

 

The Corporation shall not be obligated
to effect the registration pursuant to the U.S. Securities Act of 1933, as amended, of any Common Stock to be issued or transferred
upon exercise of the Options or to effect similar compliance under any state laws. Notwithstanding anything herein to the contrary,
the Corporation shall not be obligated to issue or cause to be issued or delivered any Common Stock pursuant to these terms and
conditions unless and until the Corporation is advised by its legal counsel that the issuance and delivery of such Common Stock
is in compliance with all applicable laws, regulations of governmental authorities and the requirements of any securities exchange
on which the Common Stock is traded. The Corporation may require, as a condition to the issuance and transfer of the Common Stock
pursuant to these terms and conditions, that the recipient of such Common Stock make such covenants, agreements and representations,
and that records and any other documentation of such Common Stock bear such legends, as the Corporation deems necessary or desirable.

 

The exercise of any Option granted
hereunder shall only become effective at such time as counsel to the Corporation shall have determined that the issuance and transfer
of the Common Stock pursuant to such exercise is in compliance with all applicable laws, regulations of governmental authorities
and the requirements of any securities exchange on which the Common Stock is traded. The Corporation may, in its sole discretion,
defer the effectiveness of the exercise of an Option granted hereunder to allow the issuance and transfer of the Common Stock upon
such exercise to be made pursuant to registration or an exemption from registration or other methods for compliance available under
federal or state securities laws. The Corporation shall inform the holder of such Option in writing of the decision to defer the
effectiveness of the exercise of such Option granted hereunder. During the period that the effectiveness of the exercise of an
Option has been deferred, the holder of such Option may, by a written notice, withdraw such exercise and obtain the refund of any
amounts paid in connection with such exercise.

 

		11.	Mandatory Repurchase of Options

 

Not applicable.

 

		12.	Restrictions on Acquisition of Options through Transfer

 

The Options cannot be acquired
through transfer (other than any transfer of Options that are vested and exercisable upon the death of a holder of the Options
to such holder’s estate or beneficiaries), unless such acquisition is expressly approved by the Board of Directors of the
Corporation.

 

		13.	Application for Exercise of Options and Manner of Payment

 

		(1)	In the case of exercise of the Options, the holder of the Options shall exercise the Options by
submitting an exercise request together with the information required by the Corporation either electronically or telephonically
through the process designated by the Corporation from time to time.

 

		(2)	With completion of the process for Exercise of the Options as provided in (1) above, the entire
amount of the Exercise Price to be paid in upon exercise of the Options, including any applicable taxes and all other costs or
fees associated with the exercise (hereinafter referred to as the “Amount of Payment”) shall be paid in cash to an
account designated by the Corporation at the payment handling place provided for in Condition 15 at or before the date and time
designated by the Corporation. The entitlement of a holder of the Options to the receipt of the Common Stock upon exercise of an
Option is subject to the payment in full of any federal, state, local and foreign taxes of any kind required to be withheld with
respect to the exercise of such Option, as well as the payment in full of any costs or fees (such as brokerage fees) associated
with the exercise of such Option.

 

    	3 

    	 

    

		(3)	Except as provided for in Condition 10, any holder of the Options who has completed the process
as provided in (1) above, may not cancel such exercise thereafter.

 

		14.	Place where Applications for Exercise of Options are Made

 

Sony Corporation of America, Human
Resources, or its duly authorized designee

 

15.Payment
Handling Place on Exercise of Options

 

Sumitomo Mitsui Banking Corporation,
Head Office (or any successor bank of such bank from time to time and/or any successor office of such office)

 

		16.	Effective Date and Time of Exercise of Options

 

Except as provided
for in Condition 10, the exercise of the Options shall become effective when the holder of the Options has duly completed the process
set forth in Items (1) and (2) of Condition 13 and the Corporation or its designee has accepted the exercise.

 

		17.	Matters concerning the Amount of Capital and the Additional Paid-in Capital Increased by the Issuance
of Shares upon Exercise of Options

 

		(1)	The amount of capital increased by the issuance of shares upon exercise of the Options shall be
the amount obtained by multiplying the maximum limit of capital increase, as calculated in accordance with the provisions of Paragraph
1, Article 17 of the Company Accounting Ordinance of Japan, by 0.5, and any fraction less than one (1) yen arising as a result
of such calculation shall be rounded up to the nearest one (1) yen.

 

		(2)	The amount of additional paid-in capital increased by the issuance of shares upon exercise of the
Options shall be the amount obtained by deducting the capital to be increased, as provided in (1) above, from the maximum limit
of capital increase, as also provided in (1) above.

 

		18.	Handling of Matters Relating to Abolition of Unit Share System

 

In the case that the Corporation
abolishes the unit share system after the Allotment Date of the Options, the Corporation may take necessary measures for handling
the related matters thereto in a manner deemed as appropriate by the Corporation in accordance with the provisions of the Companies
Act of Japan and consistent with these terms and conditions.

 

		19.	Handling of Matters Relating to Amendments to Companies Act, and other Laws and Regulations

 

In the case that provisions of
the Companies Act of Japan and/or other Japanese laws and regulations relating to the shares or the stock acquisition rights are
amended after the Allotment Date of the Options, the Corporation may take necessary measures for handling the matters relating
thereto in a manner deemed as appropriate by the Corporation in accordance with the provisions of the Companies Act of Japan and/or
other Japanese laws and regulations then in effect and consistent with these terms and conditions.

 

 

    	4 

    	 

    

Exhibit 2

 

EXERCISE PRICE

 

Amount to be paid
per share to be issued or transferred upon exercise of the Options (hereinafter referred to as the “Exercise Price”)
is initially US$ 31.06.

Provided, however,
that if the U.S. dollar amount obtained by dividing the closing price of shares of common stock of the Corporation in the regular
trading thereof on the Tokyo Stock Exchange (hereinafter referred to as the “Closing Price”) on the Allotment Date
(as defined in Article 3 of the Agreement concerning Allocation of the Stock Acquisition Rights of Sony Corporation for the Fiscal
Year 2016 dated November 21, 2016) (if there is no Closing Price on such date, the Closing Price on the immediately preceding trading
day) by the average of the exchange rate quotations by a leading commercial bank in Tokyo for selling spot U.S. dollars by telegraphic
transfer against yen for ten (10) consecutive trading days (excluding days on which there is no Closing Price) immediately prior
to the Allotment Date (hereinafter referred to as the “Reference Exchange Rate”) (any fraction less than one (1) cent
arising as a result of such calculation shall be rounded up to the nearest one (1) cent) is higher than US$ 31.06, then the amount
equal to the U.S. dollar amount obtained by dividing the Closing Price on the Allotment Date by the Reference Exchange Rate (any
fraction less than one (1) cent arising as a result of such calculation shall be rounded up to the nearest one (1) cent) shall
be the initial Exercise Price. In this case, the Corporation shall notify such initial Exercise Price to the Qualified Person by
sending a notice (hereinafter referred to as the “Notice”) on or about November 22, 2016. The provisions with respect
to the initial Exercise Price in the Notice shall automatically supersede the provisions in this Exhibit 2.

 

    	 

    	 

    

Exhibit 3

 

VESTING AND EXERCISE CONDITIONS FOR NON-US PARTICIPANTS

 

Set forth below are
the provisions concerning the restrictions of vesting and exercise of the Options provided for in Item (1) of Article 5 of the
Agreement Concerning Allocation of the Stock Acquisition Rights of Sony Corporation for the Fiscal Year 2016 (hereinafter referred
to as the “Agreement”). Unless otherwise provided for, the terms used in this Exhibit 3 shall have the same meaning
as used in the Agreement.

 

Article 1
(Restrictions on and Conditions for Exercise of the Options and Prohibition of Disposition)

 

		(1)	Notwithstanding Item (4) of Article 3 of the Agreement, the Options
shall be vested and become exercisable in three approximately equal annual installments beginning on the first anniversary of the
date of the grant.

		(2)	In case that the Qualified Person forfeits either status as a director,
corporate executive officer, officer or employee of the Corporation or of the Sony Group Companies by falling under any of the
following items, the exercise of the Options shall be subject to the restrictions provided for in such following item; provided,
however, that in no case may any Options be exercised after the period provided for in Item (4) of Article 3 of the Agreement.

		(i)	If the Qualified Person is subject to punitive dismissal or resignation
under instruction pursuant to the rules of employment of the Corporation or of the Sony Group Companies or removed from office:

The Qualified Person may not exercise
the Options on and after the day on which he/she forfeits the status as a director, corporate executive officer, officer or employee
of the Corporation or of the Sony Group Companies (hereinafter referred to as the “Status Forfeit Date”);

		(ii)	If the Qualified Person ceases to be a director, corporate executive
officer, officer or employee of the Corporation or of the Sony Group Companies due to his/her death:

Subject to the provision of Article
7 of the Agreement, the heir of the Qualified Person may exercise the Options which are exercisable pursuant to Item (1) of this
Article as of the Status Forfeit Date (hereinafter referred to as the “Exercisable Options”) until and including the
last day of the one (1) year period commencing on the date immediately following the Status Forfeit Date (if the last day of this
one (1) year period falls on a holiday of the Corporation, the immediately preceding business day shall be the last day of such
period), but may not exercise the Options which are not exercisable pursuant to Item (1) of this Article as of the Status Forfeit
Date (hereinafter referred to as the “Unexercisable Options”) on and after the Status Forfeit Date; provided, however,
that if the Corporation allows the heir of the Qualified Person to exercise the Unexercisable Options, all of the Unexercisable
Options shall become exercisable on the Status Forfeit Date (or the Commencement Date of Exercisable Period, if the Status Forfeit
Date falls on a day before the Commencement Date of Exercisable

    	 

    	 

    

Period) and the heir of the Qualified
Person may exercise the Unexercisable Options until and including the last day of the one (1) year period commencing on the date
immediately following the Status Forfeit Date (if the last day of this one (1) year period falls on a holiday of the Corporation,
the immediately preceding business day shall be the last day of such period), subject to the provision of Article 7 of the Agreement;
and

		(iii)	If the Qualified Person forfeits the status as a director, corporate
executive officer, officer or employee of the Corporation or of the Sony Group Companies due to any other events:

The Qualified Person may exercise
the Exercisable Options until and including the last day of the one (1) year period commencing on the date immediately following
the Status Forfeit Date (if the last day of this one (1) year period falls on a holiday of the Corporation, the immediately preceding
business day shall be the last day of such period), but may not exercise the Unexercisable Options on and after the Status Forfeit
Date; provided, however, that if the Corporation allows the Qualified Person to exercise the Unexercisable Options, all of the
Unexercisable Options shall become exercisable on the Status Forfeit Date (or the Commencement Date of Exercisable Period, if the
Status Forfeit Date falls on a day before the Commencement Date of Exercisable Period) and the Qualified Person may exercise the
Unexercisable Options until and including the last day of the one (1) year period commencing on the date immediately following
the Status Forfeit Date (if the last day of this one (1) year period falls on a holiday of the Corporation, the immediately preceding
business day shall be the last day of such period).

		(3)	The Qualified Person may not exercise the Options in any of the following
cases:

		(i)	If the Qualified Person works for a competitor of the Corporation
or of the Sony Group Companies as such competitor’s officer, employee or consultant, and any of the designated Representative
Corporate Executive Officer(s) of the Corporation determines not to permit the exercise by such Qualified Person of the Options
allocated to such Qualified Person.

		(ii)	If the Qualified Person is regarded by the Corporation to have performed
any act of disloyalty against the Corporation or the Sony Group Companies.

		(iii)	If the Qualified Person violates any provision of the Agreement.

		(4)	The Qualified Person is not authorized to transfer, pledge or otherwise
dispose of all or part of the Options.

 

 

2

    	 

    	 

    

Exhibit 4

 

REPRESENTATIONS AND WARRANTIES FOR NON-US PARTICIPANTS

 

The Qualified Person confirms the following
matters pursuant to Article 13 of the Allocation Agreement.

 

1.       (Employment
Contract)

I understand that nothing in the
Sony Corporation Stock Acquisition Rights Plan (the “Plan”) terms form part of my employment contract, unless my employment
contract expressly states otherwise. Participation in the Plan does not create any right to continued employment.

 

I understand that neither the participation
in the Plan nor the grant of an Option creates any rights to participate in the Plan or to be granted any stock acquisition right,
Option or award in the future. The Plan may cease to be operated in the future although any existing Options granted under the
Plan will continue in accordance with the Allocation Agreement, Exhibits, and the Terms and Conditions.

 

I understand that I have no claim
or right of action in respect of any decision, omission or discretion which may operate to my disadvantage even if it is unreasonable,
irrational or might otherwise be regarded as being in breach of any duty, except as set out in the relevant Plan documentation.

 

I understand I have no right to
compensation for any loss in relation to the Plan, including any loss in relation to:

		·	a reduction of rights
or expectations under the Plan in any circumstances (including lawful or unlawful termination of employment);

		·	any exercise of a discretion
or a decision taken in relation to an award or to the Plan, or any failure to exercise a discretion or take a decision; and

		·	the operation, suspension,
termination or amendment of the Plan.

 

I understand that as the grant by
the Corporation is entirely discretionary, the benefits and rights acquired under the Plan do not constitute “base salary”
or other regular employment earnings and that nothing in the rules or operation of the Plan forms part of my contract of employment
or employment relationship, which rights are separate from and not affected by,

    	 

    	 

    

the Plan. I understand and agree
that under no circumstances will the benefits derived from the Plan be included as part of my employment earnings for purposes
of calculating any of the Corporation’s and/or the Sony group companies’ (including my employer) obligations to me
for bonus, retirement, severance, or any other such payments.

 

2.       (Data
Protection)

I consent to the collection, use
and disclosure by the Corporation and/or companies in the Sony group (including my employer) of any personal information or data
necessary for the administration of the Plan.

 

Subject to legislative requirements,
the information may be retained after my Options are exercised or cancelled. I understand that I can contact the Secretariat of
the Stock Option Plan, Corporate Human Resources, Sony Corporation or the Human Resources Department of Sony Corporation of America
(in accordance with the contact information provided to me under separate cover), if I have any queries in respect of this statement.

 

I understand that the information
provided to the Corporation, the companies in the Sony group (including my employer), and/or to their duly authorized third party
designee(s) retained for the purpose of assisting the Corporation or the Sony group companies with administration of the Options
and provided in relation to the Plan will be used in relation to the administration of my Options under the Plan.

 

The Corporation and/or any of the
companies in the Sony group (including my employer) may give information to others (including people acting as agents of the Corporation
and/or any of the companies in the Sony group) in connection with the administration of the Plan on the understanding that they
will keep the information secure.

 

In order to process the information
the Corporation and/or companies in the Sony group (including my employer) may transfer the information to other countries that
may have a different level of statutory protection for my information than in my home country.

 

I understand that I have a right
to access certain information that the Plan holds about me and in order to exercise this right, I can contact the Secretariat of
the Stock Option Plan, Corporate Human Resources, Sony Corporation or the Human Resources Department of Sony Corporation of America
(in accordance with the contact information provided to me under separate cover).

    	 

    	 

    

 

[Italy:

I understand that the conferral
of the information is optional and even if I refuse the conferral of the information, this refusal brings me no disadvantage. I
also understand that I have a right to object, in whole or in part, to the processing of the information.]

 

3.       (Payment
of Tax, Social Security or Other Amounts)

I authorize the Corporation and
companies in the Sony group (including my employer) to withhold any amounts or make such arrangements as they consider necessary
to meet any liability due to taxation, social security or other amounts in respect of my participation in the Plan. These arrangements
may include the sale or reduction in number of any shares of the Corporation (hereinafter referred to as the “Shares”)
unless I, as the participant in the Plan, discharge the liability myself.

 

4.       (Tax
Filings)

By signing the Allocation Agreement,
I agree to:

		(1)	make all neccessary personal tax filings in the territory where I am tax resident in relation to
this Plan;

 

		(2)	make any required foreign exchange filings or notifications in relation to my holding of rights
under the Plan in the territory where I am foreign exchange resident; and

 

		(3)	comply with any requirements to notify my employer of my interests in rights relating to the Shares
(whether these requirements are based on the internal rules of the Corporation, the Sony group, my employer or applicable law).

 

5.       (Pensions)

I understand and agree that this
grant of Options to me will not affect my pension rights in any way. No additional contributions will be made by the Corporation
or by any other member of the Sony group (including my employer) as a result of my participation in this Plan. Any pension I may
receive will not be increased by my participation in this Plan.

 

6.       (Tax
Treatment)

I understand and agree that neither
the Corporation nor any member of the Sony group (including my employer) has arranged for any special tax treatment to apply to
these Options. The Options are not tax qualified in any jurisdiction.

    	 

    	 

    

 

[European Union (excluding Austria):

The Qualified Person is being offered participation
in the Plan in order to provide an additional incentive and to encourage employee share ownership and so increase the interest
of the Qualified Person in the success of the Corporation. Further information about the Corporation can be obtained from www.sony.com.
The aggregate number of Shares to be issued or transferred upon exercise of the Options being offered under the Plan will not exceed
1,728,100. The obligation to publish a prospectus under the EU Prospectus Directive does not apply to the offer of the Plan because
of Article 4(1)(e) of that directive.]

 

[Austria:

Options are offered to the Qualified Person
by the Corporation, a Japanese corporation with its principal place of business at 7-1, Konan 1-chome, Minato-ku, Tokyo, Japan,
in accordance with the terms of the Plan. More information about the Corporation is available on www.sony.com. The Qualified Person
is being offered Options under the Plan in order to provide an additional incentive and to encourage employee share ownership and
so increase the interest of the Qualified Person in the Corporation’s success. The aggregate number of Shares to be issued
or transferred upon exercise of the Options being offered under the Plan will not exceed 1,728,100.

 

This document was compiled in accordance with
s3 ss1 no12 of the Austrian Capital Market Act (KMG) and the corresponding Regulation of the Financial Market Authority (Finanzmarktaufsicht
– FMA) on the mandatory requirements as to the content of a document replacing a prospectus, as published in the Austrian
Federal Gazette BGBl II No. 236/2005. This document replaces a prospectus in accordance with the Austrian Capital Market Act.]

 

[Argentina:

This is a private offer. It is not subject
to the supervision of the Argentine Securities Exchange Commission (Comision Nacional de Valores (CNV)) or any other governmental
authority in Argentina.

 

The Qualified Person agrees that the Allocation
Agreement is drawn up in English.]

 

[Australia:

The Qualified Person confirms that he/she acknowledges
and understands the following matters.

 

    	 

    	 

    

		1.	The Exercise Price will be calculated in the future on the Allotment
Date in accordance with Exhibit 2 of the Agreement. By way of example only, if the Allotment Date was the date of the offer of
the Options under the Agreement (being November 21, 2016), the Exercise Price would be US$ 31.06,
of which the Australian dollar equivalent is A$ 42.55 (calculated at the rate of A$ 1 = US$
0.73, the rate of exchange at the closing of November 21, 2016).

 

		2.	The Corporation undertakes that upon request, the information about
the current market price of the Shares of the Corporation and the Exercise Price throughout the offer period (including information
about the Australian dollar equivalent of that price and of the Exercise Price) will be provided to the Qualified Person within
a reasonable time of such request being made to Sony Computer Entertainment Australia Pty Limited (Level 1, 63-73 Ann Street, Surry
Hills, NSW 2010 Australia, Tel: +61-2-9324-9500, Fax: +61-2-9324-9558) or Sony (Australia) Pty Limited (33-39 Talavera Road, NORTH
RYDE NSW, 2113, Tel:+61-29-887-6666, Fax: +61-29-887-4351).

 

		3.	Any advice given by the Corporation in connection with the Options
is general advice only. Nothing in the documentation is to be taken to constitute a recommendation or statement of opinion that
is intended to influence a person or persons in making a decision to acquire any Options and the Qualified Person should consider
obtaining his/her own financial product and/or legal advice from an independent person. The documentation does not take into account
the objectives, financial situation or needs of any particular person. Before acting on the information contained in the documentation,
or making a decision to participate, the Qualified Person should seek professional advice as to whether such participation is appropriate
in light of his or her personal circumstances.

 

		4.	The Qualified person has no rights until the Exercise Price is determined
on the Allotment Date in accordance with Exhibit 2 of the Agreement.]

 

[Brazil:

This document is solely for the use and information
of persons to whom they are addressed and no other person. This document is addressed only to the Qualified Person and may not
be reproduced or copied in any form.

 

The Options granted under the Plan have not been
and will not be publicly issued, placed, distributed, offered or negotiated in the Brazilian capital markets and, as a result,
will not be registered with the Brazilian Securities Commission (Comissão de Valores Mobiliários, the

    	 

    	 

    

CVM). Therefore, the Options granted under the
Plan will not be offered or sold in Brazil, except in circumstances which do not constitute a public offering, placement, distribution
or negotiation under the Brazilian capital markets regulation.]

 

[Canada:

The Qualified Person agrees that the Allocation
Agreement is drawn up in English.] [Note: This wording is for grantees who are resident in, or report to work in Quebec]

 

[Note regarding Chile: In order to comply with
the translation requirement in Chile, Spanish translation of the principal terms and conditions of the JPY plan are inserted in
Exhibit 4 of the JPY plan in 2016. However, corresponding Spanish translation is deleted in this Exhibit 4 for USD plan, because
there is no grantee in Chile under this USD Plan in 2016.]

 

    	 

    	 

    

 

[Denmark:

 

 

	
        1       Tildelingstidspunkt
        for aktieoptioner i Sony Corporation (”Optionerne”) 

         

         

        Aftale Vedrørende Tildeling af Aktieoptioner
        i Sony Corporation for Regnskabsåret 2016 (”Tildelingsaftalen”) er indgået mellem Sony Corporation og modtageren
        (den ”Kvalificerede Person”) pr 21. november 2016 Datoen for tildelingen af Optionerne er den 22. november 2016.

         

         

        2       Kriterier
        eller betingelser for tildelingen 

         

        Optioner tildeles direktionsmedlemmer og medarbejdere
        udvalgt af Sony Corporation (”Selskabet”), som underskriver Tildelingsaftalen af 21. november 2016.

         

        3       Udnyttelsestidspunktet
        eller udnyttelsesperioden eller information om hvorledes udnyttelsestidspunkt fastsættes 

         

        Optionerne modnes og kan udnyttes i tre omtrent
        lige store årlige rater, fra og med årsdagen for tildelingen.

         

         

        4       Tegningskursen
        eller information om hvorledes tegningskursen fastsættes 

         

        Beløbet som erlægges pr. aktie
        udstedt eller overdraget når Optionerne udnyttes (herefter ”Udnyttelseskursen”) er som udgangspunkt US$ 31.06.

         

        Det forudsættes dog, at såfremt det US-dollar beløb,
        der opnås ved at dele slutkursen for aktier i selskabet i den regulære handel hermed på Tokyo Stock Exchange
        (herefter ”Slutkursen”) den 22. november 2016 (”Tildelingsdatoen”) (såfremt der ikke er nogen Slutkurs
        denne dato, vil Slutkursen på den umiddelbart forudgående handelsdag være gældende) med den gennemsnitlige
        kursnotering hos en ledende erhvervsbank i Tokyo, som sælger spot US-dollar ved telegrafisk overførsel af yen i ti
        (1o) på hinanden følgende handelsdage (eksklusiv dage hvor der ikke er nogen Slutkurs) umiddelbart forud for Tildelingsdatoen
        (herefter ”Referencekursen”) (eventuelle decimaler efter en sådan beregning mindre end en (1) cent skal rundes
        op til nærmeste hele cent) er højere end US$ 31.06, så skal beløbet svarende til US-dollar beløbet
        beregnet ved at dele Slutkursen på Tildelingsdatoen med Referencekursen (eventuelle decimaler efter en sådan beregning
        mindre end en (1) cent skal rundes op til nærmeste hele cent) skal udgøre den første Udnyttelseskurs. I så
        fald skal Selskabet oplyse en sådan første Udnyttelseskurs til den Kvalificerede Person ved fremsendelse af meddelelse
        herom (herefter ”Meddelelsen”) på eller omkring den 22. november 2016.

         

         

         

        5       Medarbejderens
        rettigheder ved ansættelsesforholdets ophør 

         

        (1)       I
        tilfælde af at den Kvalificerede Person mister sin position som bestyrelsesmedlem, direktionsmedlem eller medarbejder i Selskabet
        eller i Sony-koncernen på grund af en af følgende årsager, skal udnyttelsen af Optionerne være underlagt
        de begrænsninger, der er beskrevet nedenfor; dog forudsat at Optionerne under ingen omstændigheder kan udnyttes efter
        perioden angivet under punkt 3 ovenfor.

         

         

        (i) Såfremt den Kvalificerede Person
        bortvises eller opsiges på grund af misligholdelse i henhold til Selskabets eller Sony Koncernens ansættelsesregler
        eller fjernes fra embedet:

         

         

        Den Kvalificerede Person kan ikke udnytte Optionerne
        på eller efter datoen på hvilken han/hun mister sin position som bestyrelsesmedlem, direktionsmedlem eller medarbejder
        i Selskabet eller Sony Koncernen (herefter “Fortabelsesdatoen”);

         

         

        (ii) Såfremt den Kvalificerede Person
        ophører med at være bestyrelsesmedlem, direktionsmedlem eller medarbejder i Selskabet eller i Sony Koncernen på
        grund af den Kvalificerede Persons død:

         

        I henhold til bestemmelse 7 i Tildelingsaftalen
kan arvingerne til den Kvalificerede Person udnytte Optionerne, som kan udnyttes i henhold til punkt (1) i denne bestemmelse pr.
Fortabelsesdatoen (herefter de “Modnede Optioner”) indtil og inklusive den sidste dag i et (1) års perioden
som begynder dagen efter Fortabelsesdatoen (hvis den sidste dag af denne et (1) års periode er en feriedag i Selskabet,
vil den efterfølgende bankdag udgøre den sidste dag i perioden), men kan dog ikke udnytte Optionerne, som ikke er
modnede i henhold til afsnit 1 i denne bestemmelse pr. Fortabelsesdatoen (herefter de ”Ikke Modnede Optioner”), på
og efter Fortabelsesdagen dog forudsat at såfremt Selskabet tillader arvingerne til den Kvalificerede Person at udnytte
de Ikke Modnede Optioner, modner alle de Ikke Modnede Optioner på Fortabelsesdatoen (eller på Startdatoen for Udnyttelsesperioden,
såfremt Fortabelsesdatoen falder på en dato før Startdatoen for Udnyttelsesperioden), og den Kvalificerede
Person kan udnytte de Ikke Modnede Optioner til og med den sidste dag i et (1) års perioden, som begynder dagen efter Fortabelsesdagen
(hvis den sidste dag af denne et (1) års periode er en feriedag i Selskabet, vil den efterfølgende bankdag udgøre
den sidste dag i perioden) i henhold til bestemmelserne i bestemmelse 7 i Tildelingsaftalen; og

         

        (iii) Såfremt den Kvalificerede
Person mister sin position som bestyrelsesmedlem, direktionsmedlem eller medarbejder i Selskabet eller i Sony Koncernen på
grund af andre for-hold:

         

        Den Kvalificerede Person kan
udnytte de Modnede Optioner indtil og inklusive den sidste dag i et (1) års perioden, som begynder dagen efter Fortabelsesdagen
(hvis den sidste dag af denne et (1) års periode er en feriedag i Selskabet, vil den efterfølgende bankdag udgøre
den sidste dag i perioden), men kan dog ikke udnytte de Ikke Modnede Optioner på og efter Fortabelsesdagen dog forudsat
at såfremt Selskabet tillader den Kvalificerede Person at udnytte de Ikke Modnede Optioner, modner alle de Ikke Modnede
Optioner på Fortabelsesdatoen (eller på Startdatoen for Udnyttelsesperioden, såfremt Fortabelsesdatoen falder
på en dato før Startdatoen for Udnyttelsesperioden), og arvingerne til den Kvalificerede Person kan udnytte de Ikke
Modnede Optioner til og med den sidste dag i et (1) års perioden, som begynder dagen efter Fortabelsesdagen (hvis den sidste
dag af denne et (1) års periode er en feriedag i Selskabet, vil den efterfølgende bankdag udgøre den sidste
dag i perioden). 

         

        (2)       Den
Kvalificerede Person kan ikke udnytte Optionerne i følgende tilfælde: 

         

        (i) Såfremt den Kvalificerede Person
        arbejder for en konkurrent til Selskabet eller Sony Koncernen som denne konkurrents direktionsmedlem, medarbejder eller konsulent,
        og en af de udvalgte Repræsentanter for Ledelsen i Selskabet vælger ikke at tillade en sådan Kvalificeret Persons
        udnyttelse af Optionerne tildelt til denne Kvalificerede Person.

         

        (ii) Såfremt den Kvalificerede Person
        af Selskabet anses for at have udøvet illoyale handlinger mod Selskabet eller Sony Koncernen.

         

        (iii) Såfremt den Kvalificerede Person
        misligholder bestemmelserne i denne Aftale.

         

        6       Økonomiske
        aspekter af deltagelse i aktieoptionsprogrammet 

         

        Aktieoptioner er risikobetonede værdipapirer,
        der er afhængige af aktiemarkedet. Som følge heraf er der ingen garanti for, at udnyttelsen af Optionerne udløser
        en fortjeneste. Tildelingen af Optionerne har ingen økonomiske konsekvenser for den Kvalificerede Person.
	
        1       The
        time of the grant of the stock ac

        quisition rights of Sony Corporation
        (the “Options”) 

         

        The Agreement Concerning Allocation of the
        Stock Acquisition rights of Sony Corporation for the Fiscal Year 2016 (the “Allocation Agreement”) is entered into
        between Sony Corporation and the grantee (the “Qualified Person”) as of November 21, 2016. The date of the grant of
        the Options is November 22, 2016.

         

        2       The
        criteria or conditions for the grant 

         

        Options are granted to officers and employees
        selected by Sony Corporation (the “Corporation”) who sign the Allocation Agreement as of November 21, 2016.

         

        3       The
        exercise time or exercise period or information on how the exercise time is determined 

         

         

        The Options shall vest and become exercisable
        in three approximately equal annual installments beginning on the first anniversary of the date of the grant.

         

        4       The
        subscription price or information on how the subscription price is fixed 

         

        Amount to be paid per Share to be issued or
        transferred upon exercise of the Options (hereinafter referred to as the “Exercise Price”) is initially US$ 31.06.

         

        Provided, however, that if the U.S. dollar
        amount obtained by dividing the closing price of Shares of the Corporation in the regular trading thereof on the Tokyo Stock Exchange
        (hereinafter referred to as the “Closing Price”) on November 22, 2016 (the “Allotment Date”) (if there
        is no Closing Price on such date, the Closing Price on the immediately preceding trading day) by the average of the exchange rate
        quotations by a leading commercial bank in Tokyo for selling spot U.S. dollars by telegraphic transfer against yen for ten (10)
        consecutive trading days (excluding days on which there is no Closing Price) immediately prior to the Allotment Date (hereinafter
        referred to as the “Reference Exchange Rate”) (any fraction less than one (1) cent arising as a result of such calculation
        shall be rounded up to the nearest one (1) cent) is higher than US$ 31.06, then the amount equal to the U.S. dollar amount obtained
        by dividing the Closing Price on the Allotment Date by the Reference Exchange Rate (any fraction less than one (1) cent arising
        as a result of such calculation shall be rounded up to the nearest one (1) cent) shall be the initial Exercise Price. In this case,
        the Corporation shall notify such initial Exercise Price to the Qualified Person by sending a notice (hereinafter referred to as
        the “Notice”) on or about November 22, 2016.

         

        5       The
        employee’s rights in connection with the termination of employment 

         

        (1)       In
        case that the Qualified Person forfeits either status as a director, corporate executive officer, officer or employee of the Corporation
        or of the Sony Group Companies by falling under any of the following items, the exercise of the Options shall be subject to the
        restrictions provided for in such following item; provided, however, that in no case may any Options be exercised after the period
        provided for in Item (4) of Article 3 of the Allocation Agreement.

         

        (i) If the Qualified Person is subject to punitive
        dismissal or resignation under instruction pursuant to the rules of employment of the Corporation or of the Sony Group Companies
        or removed from office:

         

        The Qualified Person may not exercise the Options
        on and after the day on which he/she forfeits the status as a director, corporate executive officer, officer or employee of the
        Corporation or of the Sony Group Companies (hereinafter referred to as the “Status Forfeit Date”);

         

        (ii) If the Qualified Person ceases to be a
        director, corporate executive officer, officer or employee of the Corporation or of the Sony Group Companies due to his/her death:

         

         

        Subject to the provision of Article 7
        of the Allocation Agreement, the heir of the Qualified Person may exercise the Options which are exercisable pursuant to Item (1)
        of this Article as of the Status Forfeit Date (hereinafter referred to as the “Exercisable Options”) until and including
        the last day of the one (1) year period commencing on the date immediately following the Status Forfeit Date (if the last day of
        this one (1) year period falls on a holiday of the Corporation, the immediately preceding business day shall be the last day of
        such period), but may not exercise the Options which are not exercisable pursuant to Paragraph 1 of this Article as of the Status
        Forfeit Date (hereinafter referred to as the “Unexercisable Options”) on and after the Status Forfeit Date; provided,
        however, that if the Corporation allows the heir of the Qualified Person to exercise the Unexercisable Options, all of the Unexercisable
        Options shall become exercisable on the Status Forfeit Date (or the Commencement Date of Exercisable Period, if the Status Forfeit
        Date falls on a day before the Commencement Date of Exercisable Period) and the heir of the Qualified Person may exercise the Unexercisable
        Options until and including the last day of the one (1) year period commencing on the date immediately following the Status Forfeit
        Date (if the last day of this one (1) year period falls on a holiday of the Corporation, the immediately preceding business day
        shall be the last day of such period) subject to the provision of Article 7 of the Allocation Agreement; and

         

        (iii) If the Qualified Person forfeits the
        status as a director, corporate executive officer, officer or employee of the Corporation or of the Sony Group Companies due to
        any other events:

         

        The Qualified Person may exercise the Exercisable
        Options until and including the last day of the one (1) year period commencing on the date immediately following the Status Forfeit
        Date (if the last day of this one (1) year period falls on a holiday of the Corporation, the immediately preceding business day
        shall be the last day of such period), but may not exercise the Unexercisable Options on and after the Status Forfeit Date; provided,
        however, that if the Corporation allows the Qualified Person to exercise the Unexercisable Options, all of the Unexercisable Options
        shall become exercisable on the Status Forfeit Date (or the Commencement Date of Exercisable Period, if the Status Forfeit Date
        falls on a day before the Commencement Date of Exercisable Period) and the Qualified Person may exercise the Unexercisable Options
        until and including the last day of the one (1) year period commencing on the date immediately following the Status Forfeit Date
        (if the last day of this one (1) year period falls on a holiday of the Corporation, the immediately preceding business day shall
        be the last day of such period).

         

        (2)       The
        Qualified Person cannot exercise the Options in any of the following cases:

         

        (i) If the Qualified Person works for a competitor
        of the Corporation or of the Sony Group Companies as such competitor’s officer, employee or consultant, and any of the designated
        Representative Corporate Executive Officer(s) of the Corporation determines not to permit the exercise by such Qualified Person
        of the Options allocated to such Qualified Person.

         

        (ii) If the Qualified Person is regarded by
        the Corporation to have performed any act of disloyalty against the Corporation or the Sony Group Companies.

         

        (iii) If the Qualified Person violates any
        provision of the Agreement.

         

        6       The
        financial aspects of participating in the stock option program 

         

        Stock options are risky securities that are influenced by the
        share market. Consequently, there is no guarantee that the exercise of the Options will yield a profit. The grant of the Options
        has no financial consequences for the Qualified Person.]

         

         

 

[Germany:

Options granted under the Plan are provided
on an ex-gratia basis and not in satisfaction of any right or expectation of the Qualified Person. The Qualified Person acknowledges
that he/she has no such right or expectation in relation to the Option or any future grant of options.]

 

[Hong Kong:

The contents of the Plan documents have not
been reviewed by any regulatory authority in Hong Kong. The Qualified Person is advised to exercise caution in relation to the
offer under the Plan. If the Qualified Person is in any doubt about any of the contents of this document, he/she should obtain
independent professional advice.]

 

[India:

No invitation, offer or sale to purchase or
subscribe to the shares of Sony Corporation (“Securities”) is made or intended to be made to the public in India through
the Allocation Agreement or any amendment or supplement thereto. Neither the Allocation Agreement nor any amendment or supplement
thereto is a prospectus, offer document or advertisement nor has it been or will be submitted or registered as a prospectus or
offer document under any applicable law or regulation in India. Neither the Allocation Agreement nor any amendment or supplement
thereto has been reviewed, approved, or recommended by any Registrar of Companies in India, the Securities and Exchange Board of
India, the Reserve Bank of India, any

    	 

    	 

    

stock exchange in India or any other Indian
regulatory authority.

Accordingly, no person may make any invitation,
offer or sale of any Securities, nor may the Allocation Agreement nor any amendment or supplement thereto nor any other document,
material, notice or circular in connection with the invitation, offer or sale for subscription or purchase of any Securities ("Offer")
be circulated or distributed whether directly or indirectly to, or for the account or benefit of, any person resident in India,
other than strictly on a private and confidential basis and so long as any such Offer is not calculated to result, directly or
indirectly, in the Securities becoming available for subscription or purchase by persons other than those receiving such offer
or invitation. Notwithstanding the foregoing, in no event shall the Offer be made directly or indirectly, in any circumstances
which would constitute an offer to the public in India within the meaning of any applicable law or regulation.

Any Offer of Securities to a person in India
shall be made subject to compliance with all applicable Indian laws including, without limitation, the Foreign Exchange Management
Act, 1999, as amended, and any guidelines, rules, regulations, circulars or notifications issued by the Reserve Bank of India,
the Securities and Exchange Board of India and any other Indian regulatory authority.

Each investor in the Securities acknowledges,
represents and agrees that it is eligible to invest in the Company and the Securities under applicable laws and regulations in
India and that it is not prohibited or debarred under any law or regulation from acquiring, owning or selling the Securities.]

 

[Note regarding Turkey: Although there is no
grantee in Turkey under USD plan in 2016, we remained the disclaimer below to be in compliance with the requirement in Turkey for
remainder purpose.

No information in this document is provided
for the purpose of offering, marketing and sale by any means of any capital market instruments in the Republic of Turkey. Therefore,
this document may not be considered as an offer made or to be made to residents of the Republic of Turkey.

The Plan has not been and will not be registered
with the Turkish Capital Market Board (the “CMB”) under the provisions of the Capital Market Law (Law No. 2499) (the
“Capital Market Law”). Accordingly, neither this document nor any other material may be utilized in connection with
any offering to the public within the Republic of Turkey without the prior approval of the CMB. However, according to Article 15
(d) (ii) of the Decree No.32 there is no restriction on the purchase or sale of Shares by residents of the Republic of Turkey,
provided that: they purchase or sell such Shares in the financial markets outside of the Republic of Turkey; and such sale and
purchase is made through banks, and/or licensed brokerage institutions in the Republic of Turkey.]

    	 

    	 

    

 

[France:

 

 

	
        PRINCIPALES MODALITES DE LA TRENTE TROISIÈME
        SERIE

        D’OPTIONS D’ACHAT D'ACTIONS

        CONCERNANT LES ACTIONS ORDINAIRES DE LA SONY CORPORATION

         

        Les
présentes modalités concernant les options d’achat d'actions s'appliquent à la trente troisième
Série d’Options d’Achat d'Actions
Ordinaires (ci-après les « Options ») de la Sony Corporation (ci-après la « Société »)
émis le 22 novembre 2016 par la Société: 

         

        1.       Nombre
        d'Options attribuées à la Personne Qualifiée (telle que définie dans le présent Article)

         

        (________ actions pourront être émises
        ou transférées lors de l'exercice, par la personne ayant signé le Contrat d'Attribution tel que définit
        ci-dessous à l'Article 16 (ci-après la « Personne Qualifiée »), de toutes les Options
        attribuées à la Personne Qualifiée.)

         

        2.       Nombre
        total d'Options

         

        17,281 (le nombre maximum d'actions de la Société
        pouvant être émises lors de l'exercice de l'Option est de 1,728,100)

         

        3.      Classe
        et nombre d'actions devant être émises ou cédées lors de l'exercice de chaque Option

         

        100 actions ordinaires de la Société
(ci-après les « Actions Ordinaires ») 

         

        4.       Montant
        à payer par action devant être émise ou cédée lors de l'exercice des Options (ci-après
        « Cours d'Exercice »)

         

        Le Cours d'Exercice initial est de 31.06 US$.

         

        Sous réserve, cependant, que si le montant
        en dollars US obtenu en divisant le cours de clôture des actions ordinaires de la Société dans le cadre des
        transactions régulières effectuées à la Bourse de Tokyo (ci-après le « Cours de Clôture »)
        à la Date d'Attribution (telle que définie à l'Article 6 des présentes Principales Modalités
        (ci-après les « Conditions »)) (en l'absence de Cours de Clôture à cette date, le Cours
        de Clôture du jour de bourse précédent) par la moyenne des taux de change cotés par une banque commerciale
        de premier plan à Tokyo pour la vente spot de dollars US par transfert télégraphique contre des yens pendant
        dix (10) jours de bourse consécutifs (à l'exclusion des jours n'ayant pas de Cours de Clôture) immédiatement
        avant la Date d'Attribution (ci-après le « Taux de Change de Référence ») (toute fraction
        inférieure à un (1) cent résultant de ce calcul sera arrondie au un (1) cent le plus proche) est supérieur
        à 31.06 US$, alors le montant égal au montant en dollars US obtenu en divisant le Cours de Clôture à
        la Date d'Attribution par le Taux de Change de Référence (toute fraction inférieure à un (1) résultant
        de ce calcul sera arrondie au un (1) cent) sera le Cours d'Exercice initial. Dans ce cas, la Société devra indiquer
        le Cours d'Exercice initial en question à la Personne Qualifiée en lui envoyant un avis (ci-après l'« Avis »)
        le ou aux alentours du, 22 novembre 2016. Les dispositions concernant le Cours d'Exercice initial indiqué dans l'avis annuleront
        et remplaceront automatiquement les dispositions des présentes.

         

        5.       Période
        durant laquelle les Options pourront être exercées

         

        A partir du 22 novembre 2017 inclus, jusqu'au
        21 novembre 2026 inclus (ci-après la « Durée »). Si le dernier jour de la période en
        question tombe un jour férié pour la Société, le jour ouvrable le précédant immédiatement
        sera le dernier jour de la période en question. Cependant, l'exercice des Options est assujetti aux restrictions prévues
        à l'Article 8 des Conditions.

         

        6.       Paiement
        contre Options

         

        Les Options sont émises sans aucun paiement
        au profit de la Société.

        7.       Date
        d'Enregistrement des Options

         

        21 novembre 2016

         

        8.       Date
        d'Attribution des Options

         

        22 novembre 2016 (ci-après la « Date
        d'Attribution »)

         

        9.       Acquisition
        des Droits

         

        Nonobstant l'Article 4 des Conditions, les Options
        seront acquises et deviendront exerçables en trois tranches annuelles approximativement équivalentes démarrant
        au premier anniversaire de la date d'octroi.

         

        10.       Conditions
        à l'Exercice des Options

         

        (1)       Aucune
        Option ne pourra être exercée en partie.

         

        (2)       En
        cas de vote d'une résolution, lors d'une assemblée générale des actionnaires de la Société,
        en faveur d'un accord de consolidation ou de fusion (autre qu'une consolidation ou une fusion dont la société résultante
        est la Société), ou en cas de vote d'une résolution, lors d'une assemblée générale des
        actionnaires de la Société (ou, si une résolution d'une assemblée générale des actionnaires
        n'est pas nécessaire, lors d'une réunion du Conseil d'Administration de la Société) concernant un accord
        d'échange de parts (kabushiki-kokan) ou d'un plan de transfert de parts (kabushiki-iten) en vertu duquel la Société
        deviendrait filiale à 100% d'une autre société, les Options ne pourront pas être exercées à
        ou après la date de prise d'effet de la consolidation ou de la fusion en question, de l'échange de parts (kabushiki-kokan),
        ou du transfert de parts (kabushiki-iten).

         

         

        (3)       Si
        la Personne Qualifiée renonce à l'un des statuts suivants : administrateur, CEO (Corporate Executive Officer),
        directeur ou employé de la Société ou des Sociétés du Groupe Sony en tombant dans l'une des
        catégories suivantes, l'exercice des Options sera assujetti aux restrictions prévues pour la catégorie en
        question ; sous réserve, cependant, qu'en aucun cas les Options ne puissent être exercées après
        les Durées indiquées à l'Article 4 des Conditions.

         

        (i) Si la Personne Qualifiée fait l'objet
        d'un licenciement pour faute ou d'une démission par demande en vertu des règles sur l'emploi de la Société
        ou des Sociétés du Groupe Sony ou si elle est démise de ses fonctions :

        

        La Personne Qualifiée ne pourra pas exercer les Options à ou après la date à laquelle elle aura renoncé
        à son statut d'administrateur, de CEO, directeur ou d'employé de la Société ou des Sociétés
        du Groupe Sony (ci-après la « Date de Renoncement à Statut ») ;

         

         

        (ii) Si la Personne Qualifiée cesse
        d'être administrateur, CEO, directeur ou employé de la Société ou du Group Sony par suite de son décès :

        

        Sous réserve des dispositions de l'Article 9, Alinéa (2) des Conditions, l'héritier de la Personne Qualifiée
        pourra exercer les Options exerçables en vertu de l'Article 7 à compter de la Date de Renonciation à Statut
        (ci-après les « Options Exerçables ») jusques et y compris le dernier jour de la période
        d'un (1) an commençant à la date suivant immédiatement la Date de Renonciation à Statut (si le dernier
        jour de cette période d'un (1) an tombe un jour férié pour la Société, le jour ouvrable le précédant
        immédiatement sera le dernier jour de la période en question), mais ne pourra pas exercer les Options non exerçables
        en vertu de l'Article 7 à compter de la Date de Renonciation à Statut (ci-après les « Options Non
        Exerçables ») à la Date de Renonciation à Statut ou passé celle-ci ; sous réserve,
        toutefois, que si la Société autorise l'héritier de la Personne Qualifiée à exercer les Options
        Non Exerçables, l'ensemble de celles-ci deviendront exerçables à la Date de Renonciation à Statut (ou
        à la Date de Commencement de la Période d'Exercice, si la Date de Renonciation à Statut tombe un jour précédant
        la Date de Commencement de la Période d'Exercice) et l'héritier de la Personne Qualifiée pourra exercer les
        Options Non Exerçables jusques et y compris le dernier jour de la période d'un (1) an commençant à
        la date suivant immédiatement la Date de Renonciation à Statut (si le dernier jour de cette période d'un (1)
        an tombe un jour férié pour la Société, le jour ouvrable le précédant immédiatement
        sera le dernier jour de la période en question), sous réserve des dispositions de l'Article 9, Alinéa (2)
        des Conditions ; et

         

        (iii) Si la Personne Qualifiée renonce
        au statut d'administrateur, de CEO, directeur ou d'employé de la Société ou du Groupe Sony par suite d'autres
        événements :

         

         

        La Personne Qualifiée pourra exercer
        les Options Exerçables jusques et y compris le dernier jour de la période d'un (1) an commençant à
        la date suivant immédiatement la Date de Renonciation à Statut (si le dernier jour de cette période d'un (1)
        ans tombe un jour férié pour la Société, le jour ouvrable le précédant immédiatement
        sera le dernier jour de la période en question), mais ne pourra pas exercer les Options Non Exerçables à la
        Date de Renonciation à Statut ni par la suite; sous réserve, toutefois, que si la Société autorise
        l'héritier de la Personne Qualifiée à exercer les Options Non Exerçables, l'ensemble de celles-ci deviendront
        exerçables à la Date de Renonciation à Statut (ou à la Date de Commencement de la Période d'Exercice,
        si la Date de Renonciation à Statut tombe un jour précédant la Date de Commencement de la Période d'Exercice)
        et la Personne Qualifiée pourra exercer les Options Non Exerçables jusques et y compris le dernier jour de la période
        d'un (1) an commençant à la date suivant immédiatement la Date de Renonciation à Statut (si le dernier
        jour de cette période d'un (1) an tombe un jour férié pour la Société, le jour ouvrable le précédant
        immédiatement sera le dernier jour de la période en question).

         

        (4)       La
        Personne Qualifiée ne pourra pas exercer les Options dans les cas suivants :

         

         

        (i) Si la Personne Qualifiée travaille
        pour un concurrent de la Société ou du Groupe Sony en qualité de cadre, d'employé ou de consultant
        du concurrent en question, et que l'un quelconque des CEO désignés pour représenter la Société
        décide de ne pas permettre l'exercice, par la Personne Qualifiée en question, des Options qui lui ont été
        attribuées.

         

        (ii) Si la Personne Qualifiée est considérée
        par la Société comme ayant commis un acte déloyal à l'égard de la Société ou du
        Groupe Sony.

         

        (iii) Si la Personne Qualifiée viole
        une quelconque disposition du Contrat.

         

        (5)       La
        Personne Qualifiée n'est pas autorisée à céder, à nantir ni à se défaire d'une
        quelconque autre manière de tout ou partie des Options.

         

        (6)       L'exercice
        des Options est en outre assujetti à toute restriction sur les transactions prévue par le Règlement de la
        Sony Corporation of America Concernant les Transactions sur Titres ou tout autre règlement semblable mis en œuvre par
        le Groupe Sony (ci-après le « Groupe Sony ») et applicable à la Personne Qualifiée,
        tel qu'il peut être en vigueur de manière ponctuelle.

         

        11.       Interdiction
        de Cession

         

        (1)       Sauf
        disposition contraire de l'Alinéa (2) ci-dessous, les Options, acquises ou non, ne sont pas cessibles par la Personne Qualifiée.

         

        (2)       En
        cas de décès de la Personne Qualifiée, les Options en circulation qui auront été acquises et
        sont exerçables et accordées à la Personne Qualifiée en question, ne pourront être exercées
        que par les exécuteurs ou les administrateurs testamentaires de la Personne Qualifiée ou par toute personne ayant
        acquis le droit de les exercer en vertu du testament ou de la législation sur les successions, sous réserve qu'aucun
        transfert par testament ou en vertu de législation sur les successions d'une quelconque Option, ou du droit d'exercer une
        quelconque Option, ne pourra contraindre la Société à moins que cette dernière ait reçu (a)
        un avis écrit dans ce sens et une copie du testament et/ou les preuves qu'elle jugera nécessaires pour établir
        la validité du transfert et (b) un accord par lequel le cessionnaire s'engage à se conformer à l'ensemble
        des modalités des Options qui s'appliquent ou se seraient appliquées à la Personne Qualifiée (autres
        que les modalités relatives à l'emploi au sein de la Société ou de l'une de ses filiales) et à
        être lié par les engagements de la Personne Qualifiée concernant l'octroi des Options. Les Options non acquises
        ni exerçables lors du décès de la Personne Qualifiée deviendront nulles.

         

        12.       Rachat
        / Achat d'Options

         

        Le rachat obligatoire des Options ne s'applique
        pas. En outre, en aucun cas une quelconque Personne Qualifiée ne pourra demander à la Société d'acheter
        les Options qu'elle détient.

         

         

        13.       Restrictions
        concernant l'Acquisition d'Options par l'intermédiaire d'un Transfert

         

        Les Options ne peuvent pas être acquises
        par le transfert (autre qu'un quelconque transfert d'Options acquises et exerçables au décès d'un détenteur
        des Options au profit de la succession ou des bénéficiaires du détenteur en question), à moins que
        cette acquisition soit expressément approuvée par le Conseil d'Administration de la Société.

         

        14.       Lieu
        de Dépôt des Demandes d'Exercice des Options

         

        Sony Corporation of America, Ressources Humaines,
        ou son représentant dûment désigné

         

        15.       Lieu
        de Traitement des Paiements lors de l'Exercice des Options

         

        Sumitomo Mitsui Banking Corporation, Siège
        (ou toute autre banque lui succédant de temps à autre et/ou tout bureau succédant à ce bureau)

         

         

        16.       Emission
        des ADR (Certificats Américains de Dépôt)

         

        La Société gère actuellement
        un plan d'ADR aux Etats-Unis, en vertu duquel des Certificats Américains de Dépôt (American Depositary Receipts
        ou « ADR ») représentent des actions ordinaires de la Société. Durant la période
        où la Société gère ce programme d'ADR aux Etats-Unis, les Personnes Qualifiées exerçant
        les Options recevront des ADR au lieu d'actions ordinaires de la Société, et ce comme décrit ci-dessous. Lors
        de l'exercice d'une Option, les actions ordinaires de la Société acquises par suite de cet exercice seront émises
        au nom du dépositaire ou de la personne qu'il aura désignée dans le cadre du Plan d'ADR de Sony au profit
        de la Personne Qualifiée. A réception des actions ordinaires de la Société suite à l'exercice
        d'une Option, le dépositaire dans le cadre du plan d'ADR de Sony émettra immédiatement et de manière
        automatique les ADR représentant les actions ordinaires en question de la Société au nom de la Personne Qualifiée
        concernée et livrera les ADR en question à celle-ci (ou sur un compte détenu au profit de celle-ci) dès
        que possible suite à la date effective de l'émission. Par souci de simplicité, toute référence
        faite dans le Contrat d'Attribution (tel que défini ci-dessous à l'Article 16 des Conditions) et dans les Conditions
        aux actions ordinaires de la Société sera considérée comme étant une référence
        aux ADR.

         

         

         

         

        17.       Traitement
        en Cas de Transaction d'Entreprise

         

        (1)       En
        cas de quelconque transaction d'entreprise, à l'exclusion (a) d'une consolidation ou d'une fusion dont la société
        résultante n'est pas la Société ou (b) d'un échange de parts (kabushiki-kokan) ou d'un transfert de
        parts (kabushiki-iten) en vertu duquel la Société devient une filiale à 100% d'une autre société
        affectant la Société, y compris la dissolution ou la liquidation de la Société, la vente de tout ou
        d'une partie substantielle des actifs de la Société, de scission d'entreprise ou de toute autre transaction semblable,
        la Société pourra (x) exiger de l'entité résultant de la transaction en question qu'elle signe un accord
        prévoyant que tout détenteur des Options ait le droit, pendant la Durée et lors de l'exercice des Options,
        de recevoir la catégorie et la quantité d'actions et d'autres titres et actifs qui lui sont dus suite à ladite
        transaction par tout détenteur du nombre d'actions au titre desquelles les Options auraient pu être exercées
        immédiatement avant la transaction en question ou (y) empêcher l'exercice, avec prise d'effet immédiate lors
        de la réalisation de la transaction en question, de chaque Option en circulation immédiatement avant la transaction
        ou non (que l'option en question soit alors exerçable ou non).

         

        (2)       Si
        la Société signe un contrat définitif ou prend une décision par résolution de son Conseil d'Administration
        ou par approbation de ses actionnaires lors de l'assemblée des actionnaires visant à effectuer une ou plusieurs des
        transactions ou opérations décrites dans le paragraphe qui précède, la Société pourra
        fournir un préavis d'au moins vingt jours à la Personne Qualifiée à compter de la réalisation
        de la transaction ou de l'opération en question et donner à cette Personne Qualifiée la possibilité
        d'exercer ses Options (que les Options en question soient alors ou non acquises et exerçables), immédiatement avant,
        et sous réserve de, la réalisation de la transaction ou de l'opération en question.

         

        18.       Condition
        Résolutoire au Contrat d'Attribution conclu avec la Personne Qualifiée

         

        L'accord concernant l'attribution des Options
        d’Achat d'Actions Sony Corporation pour l'Exercice 2016 conclu entre la Personne Qualifiée et la Société
        en date du 21 novembre 2016 (ci-après le « Contrat d'Attribution »), expirera automatiquement, sans
        aucune procédure particulière, si la Personne Qualifiée n'occupe pas le poste d'administrateur, de CEO, directeur
        ou d'employé de la Société ou du Groupe Sony à la Date d'Attribution.

         

         

         

        19.       Questions
        relatives aux Montants de Capital et de Primes d'Emission supplémentaires générés par l'Emission d'Actions
        lors de l'Exercice des Options

         

        (1)       Le
        montant de capital supplémentaire généré par l'émission d'actions lors de l'exercice des Options
        sera le montant obtenu en multipliant le plafond d'augmentation de capital, calculé conformément aux dispositions
        de l'Alinéa 1, Article 17 des Règles Comptables de la Société, au Japon (Company Accounting Ordinance
        of Japan), par 0,5, et toute fraction inférieure à un (1) yen résultant de ce calcul sera arrondie au un (1)
        yen le plus proche.

         

        (2)       Le
        montant de la prime d'émission supplémentaire générée par l'émission d'actions lors de
        l'exercice des Options sera le montant obtenu en déduisant le capital supplémentaire, visé en (1) ci-dessus,
        du plafond d'augmentation de capital, également visé en (1) ci-dessus.

         

        20.       Déclarations,
        Garanties, Engagements et Confirmations

         

        La Personne Qualifiée émettra les
        déclarations, les garanties, les engagements et les confirmations énoncés dans l'Annexe aux présentes.

         

        21.       Interprétation

         

        Rien de ce qui figure ici ni dans le Contrat d'Attribution
        ne saurait être interprété comme donnant à la Personne Qualifiée un quelconque droit de recevoir
        des options ou d'acheter des actions ordinaires de la Société à l'avenir auprès de la Société
        ou de l'une quelconque de ses filiales. Rien de ce qui figure ici ni dans le Contrat d'Attribution ne saurait conférer à
        la Personne Qualifiée de quelconque droit de rester employée par la Société ou l'une quelconque de
        ses filiales, ni ne saurait constituer de contrat de travail ni interférer, de quelque manière que ce soit, avec
        le droit de la Société ou de ses filiales de réduire ou de modifier la rémunération de la Personne
        Qualifiée en vigueur au moment de l'octroi d'une quelconque Option ou autrement, ni de dénoncer le contrat de travail
        d'une Personne Qualifiée ni de changer le poste de la Personne Qualifiée ou les conditions de son emploi, avec ou
        sans justification. Rien de ce qui figure ici ni dans le Contrat d'Attribution ne saurait empêcher la Société,
        et la Société se réserve expressément le droit, de modifier les modalités des options d'achat
        d'actions ordinaires de la Société, le cas échéant, qui sont ou pourraient être accordées
        à l'avenir.

         

         

         

        Annexe

         

        DECLARATIONS ET GARANTIES POUR LES PARTICIPANTS
        NON AMERICAINS

         

        La Personne Qualifiée émet les
        confirmations suivantes en vertu de l'Article 17 des Conditions.

         

        1.       (Contrat
        de Travail)

        Je comprends que rien de ce qui figure dans les
        modalités du Plan d’Options d’Achat d'Actions de la Sony Corporation (le « Plan ») ne
        fait partie de mon contrat de travail, sauf indication contraire figurant explicitement dans ce dernier. La participation au Plan
        ne donne aucun droit au maintien de mon emploi.

         

        Je comprends que ni la participation au Plan,
        ni l'octroi d'une Option, ne crée pour moi le droit de participer au Plan ni de me voir accorder des Options ni d'autres
        avantages à l'avenir. Le Plan pourra cesser de fonctionner à l'avenir, bien que toute Option existante accordée
        en vertu de ce Plan continuera conformément au Contrat d'Attribution, aux Annexes au Contrat d'Attribution et aux Modalités.

         

        Je comprends que je ne peux revendiquer aucun
        droit d’agir suite à une quelconque décision, omission ou mesure discrétionnaire qui pourrait intervenir
        à mon détriment, même si celle-ci s'avérait déraisonnable, irrationnelle ou pouvait être
        autrement considérée comme constituant une violation d'une quelconque obligation, hormis ce qui est prévu
        dans la documentation du Plan considéré.

         

        Je comprends que je n'ai aucun droit à
        compensation en cas de perte résultant du Plan, y compris de perte due à :

        ·        
        une réduction de mes droits ou de mes attentes
        en vertu du Plan, quelles qu'en soient les circonstances (y compris la dénonciation, légitime ou non, de mon contrat
        de travail) ;

        ·        
        l'exercice d'une mesure discrétionnaire
        ou d'une décision prise concernant un avantage ou concernant le Plan, ou le non exercice d'une mesure discrétionnaire
        ou la non-prise de décision ; ou

        ·        
        l'exploitation, la suspension, la dénonciation
        ou l'amendement du Plan.

         

        Je comprends que l'octroi de droits par la Société
        est entièrement discrétionnaire et que, par conséquent, les avantages et les droits acquis en vertu du Plan
        ne constituent ni du « salaire de base » ni une quelconque autre rémunération régulière
        au titre de l'emploi, et qu'aucun aspect du règlement ni du fonctionnement du Plan ne fait partie de mon contrat de travail
        ni de ma relation avec mon employeur, les droits résultant de ce contrat et de cette relation étant distincts du
        Plan et n'en étant nullement affectés. Je comprends et je reconnais qu'en aucun cas les avantages tirés du
        Plan ne seront inclus dans la rémunération liée à mon emploi aux fins de calculer les obligations de
        la Société et/ou du Groupe Sony (y compris mon employeur) en termes de primes, de retraite, d'indemnités de
        départ ou d'autres paiements de même nature.

         

        2.       (Protection
        des Données)

        Je consens à la collecte, à l'utilisation
        et à la divulgation, par la Société et/ou les sociétés du Groupe Sony (y compris mon employeur),
        de toutes informations ou données personnelles nécessaires à l'administration du Plan.

         

        Sous réserve des exigences légales,
        les informations pourront être conservées après exercice ou annulation de mes Options. Je comprends que je
        peux contacter le Secrétariat du Plan de Stock Options, les Ressources Humaines de la Société, la Sony Corporation
        ou le Service des Ressources Humaines de la Sony Corporation of America (en utilisant les coordonnées qui m’auront
        été communiquées sous pli séparé), si j'ai des questions concernant la présente déclaration.

         

        Je comprends que les informations fournies à
        la Société, aux sociétés du Groupe Sony (y compris mon employeur) et/ou à leurs représentants
        tiers dûment autorisés choisis aux fins d'aider la Société ou les sociétés du Groupe Sony
        à administrer les Options et fournies dans le cadre du Plan, seront utilisées pour l'administration de mes Options
        en vertu du Plan.

         

         

        La Société et/ou les sociétés
        du Groupe Sony (y compris mon employeur) pourront communiquer des informations à d'autres entités (y compris des
        personnes agissant en qualité d'agents de la Société et/ou l'une quelconque des sociétés du
        Groupe Sony) dans le cadre de l'administration du Plan, sous réserve que ces entités préservent la sécurité
        des informations en question.

         

        Pour traiter les informations, la Société
        et/ou les sociétés du Groupe Sony (y compris mon employeur) pourront transmettre les informations à d'autres
        pays qui pourront assurer un niveau de protection obligatoire de ces informations potentiellement différent de celui qui
        prévaut dans mon pays de résidence.

         

        Je comprends que j'ai le droit d'accéder
        à certaines informations que détient le Plan me concernant et que, pour exercer ce droit, je peux contacter le Secrétariat
        du Plan de Stock Options, les Ressources Humaines de la Société, la Sony Corporation ou le Service des Ressources
        Humaines de la Sony Corporation of America (en utilisant les coordonnées qui m’auront été communiquées
        sous pli séparé).

         

        3.       (Paiement
        des Taxes, Charges de Sécurité Sociale et Autres Montants)

        J'autorise la Société et les sociétés
        du Groupe Sony (y compris mon employeur) à retenir tout montant ou à prendre toutes mesures qu'elles jugeront nécessaires
        pour honorer toute dette relative aux impôts, aux charges de sécurité sociale et aux autres montants se rapportant
        à ma participation au Plan. Ces mesures pourront comprendre la vente ou la réduction du nombre d'actions de la Société
        (ci-après les « Actions ») à moins qu'en ma qualité de participant au Plan, je n'honore
        la dette moi-même.

         

        4.       (Déclarations
        Fiscales)

        En signant le Contrat d'Attribution, je m'engage
        à :

        (1)       effectuer
        toutes les déclarations fiscales personnelles obligatoires sur le territoire où je suis résident fiscal au
        titre de ce Plan ;

         

        (2)       effectuer
        toutes déclarations ou notifications relatives au contrôle des changes concernant les droits que je détiens
        en vertu du Plan sur le territoire où je suis résident assujetti au contrôle des changes ; et à

         

        (3)       me
        conformer à toutes mes obligations d'informer mon employeur de mes avoirs en termes de droits relatifs aux Actions (que
        ces obligations soient basées sur le règlement interne de la Société, du Groupe Sony, de mon employeur
        ou de la législation en vigueur).

         

        5.       (Retraites)

        Je comprends et reconnais que cet octroi d'Options
        en ma faveur n'affectera en aucune manière mes droits à la retraite. Aucune contribution supplémentaire ne
        sera faite par la Société ni par aucun autre membre du Groupe Sony (y compris mon employeur) par suite de ma participation
        à ce Plan. Toute retraite que je percevrai ne sera en aucun cas augmentée par ma participation à ce Plan.

         

        6.       (Traitement
        Fiscal)

        Je comprends et accepte que ni la Société
        ni aucun membre du Groupe Sony (y compris mon employeur) n'a prévu de traitement fiscal particulier s'appliquant à
        ces Options. Les Options ne font l'objet d'aucune fiscalité particulière dans aucune juridiction quelle qu'elle soit.
	
        PRINCIPAL TERMS AND CONDITIONS OF THE THIRTY
        THIRD SERIES OF

        STOCK ACQUISITION RIGHTS

        FOR SHARES OF COMMON STOCK OF SONY CORPORATION

         

         

        These terms and conditions of the stock acquisition
        rights shall apply to the Thirty Third Series of Stock Acquisition Rights for Shares of Common Stock (hereinafter referred to as
        the “Options”) of Sony Corporation (hereinafter referred to as the “Corporation”) issued on November 22,
        2016 by the Corporation:

         

        1.       Number
        of the Options allocated to the Qualified Person (as defined in this Article)

         

        (________ shares may be issued or transferred
        upon the exercise by the person who entered into the Allocation Agreement as defined below in Article 16 (hereinafter referred
        to as the “Qualified Person”) of all Options allocated to the Qualified Person.)

         

        2.       Aggregate
        number of Options

         

        17,281 (the maximum number of the shares of the
        Corporation to be issued upon exercise of the Option is 1,728,100)

         

        3.       Class
        and number of shares to be issued or transferred upon exercise of each Option

         

        100 shares of common stock of the Corporation
        (hereinafter referred to as the “Common Stock”)

         

        4.       Amount
        to be paid per share to be issued or transferred upon exercise of the Options (hereinafter referred to as the “Exercise Price”)

         

        The Exercise Price is initially US$ 31.06.

         

        Provided, however, that if the U.S. dollar amount
        obtained by dividing the closing price of shares of common stock of the Corporation in the regular trading thereof on the Tokyo
        Stock Exchange (hereinafter referred to as the “Closing Price”) on the Allotment Date (as defined in Article 6 of this
        Principal Terms and Conditions (hereinafter referred to as the “Conditions”)) (if there is no Closing Price on such
        date, the Closing Price on the immediately preceding trading day) by the average of the exchange rate quotations by a leading commercial
        bank in Tokyo for selling spot U.S. dollars by telegraphic transfer against yen for ten (10) consecutive trading days (excluding
        days on which there is no Closing Price) immediately prior to the Allotment Date (hereinafter referred to as the “Reference
        Exchange Rate”) (any fraction less than one (1) cent arising as a result of such calculation shall be rounded up to the nearest
        one (1) cent) is higher than US$ 31.06, then the amount equal to the U.S. dollar amount obtained by dividing the Closing Price
        on the Allotment Date by the Reference Exchange Rate (any fraction less than one (1) cent arising as a result of such calculation
        shall be rounded up to the nearest one (1) cent) shall be the initial Exercise Price. In this case, the Corporation shall notify
        such initial Exercise Price to the Qualified Person by sending a notice (hereinafter referred to as the “Notice”) on
        or about November 22, 2016. The provisions with respect to the initial Exercise Price in the Notice shall automatically supersede
        the provisions hereto.

         

        5.       Period
        during which the Options may be exercised

         

        From and including November 22, 2017, up to and
        including November 21, 2026 (hereinafter referred to as the “Term”). If the last day of such period falls on a holiday
        of the Corporation, the immediately preceding business day shall be the last day of such period. However, exercise of the Options
        is subject to the restrictions provided for in Article 8 of the Conditions.

         

        6.       Payment
        in exchange for Options

         

        The Options are issued without payment of any
        consideration to the Corporation.

        7.       Enrollment
        Date of Options

         

        November 21, 2016

         

        8.       Allotment
        Date of Options

         

        November 22, 2016 (hereinafter referred to as
        the “Allotment Date”)

         

        9.       Vesting

         

        Notwithstanding Article 4 of the Conditions, the
        Options shall be vested and become exercisable in three approximately equal annual installments beginning on the first anniversary
        of the date of the grant.

         

        10.       Conditions
        for Exercise of Options

         

        (1)       No
        Option may be exercised in part.

         

         

        (2)       In
        the event of a resolution being passed at a general meeting of shareholders of the Corporation for an agreement for any consolidation,
        amalgamation or merger (other than a consolidation, amalgamation or merger in which the Corporation is the continuing corporation),
        or in the event of a resolution being passed at a general meeting of shareholders of the Corporation (or, where a resolution of
        a general meeting of shareholders is not necessary, at a meeting of the Board of Directors of the Corporation) for any agreement
        for share exchange (kabushiki-kokan) or any plan for share transfer (kabushiki-iten) pursuant to which the Corporation is to become
        a wholly-owned subsidiary of another corporation, the Options may not be exercised on and after the effective date of such consolidation,
        amalgamation or merger, such share exchange (kabushiki-kokan), or such share transfer (kabushiki-iten).

         

        (3)       In
        case that the Qualified Person forfeits either status as a director, corporate executive officer, officer or employee of the Corporation
        or of the Sony Group Companies by falling under any of the following items, the exercise of the Options shall be subject to the
        restrictions provided for in such following item; provided, however, that in no case may any Options be exercised after the Terms
        set forth in Article 4 of the Conditions.

         

         

        (i) If the Qualified Person is subject to punitive
        dismissal or resignation under instruction pursuant to the rules of employment of the Corporation or of the Sony Group Companies
        or removed from office:

        

        The Qualified Person may not exercise the Options on and after the day on which he/she forfeits the status as a director, corporate
        executive officer, officer or employee of the Corporation or of the Sony Group Companies (hereinafter referred to as the “Status
        Forfeit Date”);

         

        (ii) If the Qualified Person ceases to be a
        director, corporate executive officer, officer or employee of the Corporation or of the Sony Group Companies due to his/her death:

        

        Subject to the provision of Article 9, Paragraph (2) of the Conditions, the heir of the Qualified Person may exercise the Options
        which are exercisable pursuant to Article 7 as of the Status Forfeit Date (hereinafter referred to as the “Exercisable Options”)
        until and including the last day of the one (1) year period commencing on the date immediately following the Status Forfeit Date
        (if the last day of this one (1) year period falls on a holiday of the Corporation, the immediately preceding business day shall
        be the last day of such period), but may not exercise the Options which are not exercisable pursuant to Article 7 as of the Status
        Forfeit Date (hereinafter referred to as the “Unexercisable Options”) on and after the Status Forfeit Date; provided,
        however, that if the Corporation allows the heir of the Qualified Person to exercise the Unexercisable Options, all of the Unexercisable
        Options shall become exercisable on the Status Forfeit Date (or the Commencement Date of Exercisable Period, if the Status Forfeit
        Date falls on a day before the Commencement Date of Exercisable Period) and the heir of the Qualified Person may exercise the Unexercisable
        Options until and including the last day of the one (1) year period commencing on the date immediately following the Status Forfeit
        Date (if the last day of this one (1) year period falls on a holiday of the Corporation, the immediately preceding business day
        shall be the last day of such period) subject to the provision of Article 9, Paragraph (2) of the Conditions; and

          

         

        (iii) If the Qualified Person forfeits the
        status as a director, corporate executive officer, officer or employee of the Corporation or of the Sony Group Companies due to
        any other events:

        

        

        The Qualified Person may exercise the Exercisable
        Options until and including the last day of the one (1) year period commencing on the date immediately following the Status Forfeit
        Date (if the last day of this one (1) year period falls on a holiday of the Corporation, the immediately preceding business day
        shall be the last day of such period), but may not exercise the Unexercisable Options on and after the Status Forfeit Date; provided,
        however, that if the Corporation allows the Qualified Person to exercise the Unexercisable Options, all of the Unexercisable Options
        shall become exercisable on the Status Forfeit Date (or the Commencement Date of Exercisable Period, if the Status Forfeit Date
        falls on a day before the Commencement Date of Exercisable Period) and the Qualified Person may exercise the Unexercisable Options
        until and including the last day of the one (1) year period commencing on the date immediately following the Status Forfeit Date
        (if the last day of this one (1) year period falls on a holiday of the Corporation, the immediately preceding business day shall
        be the last day of such period).

         

         

         

        (4)       The
        Qualified Person may not exercise the Options in any of the following cases:

         

        (i) If the Qualified Person works for a competitor
        of the Corporation or of the Sony Group Companies as such competitor’s officer, employee or consultant, and any of the designated
        Representative Corporate Executive Officer(s) of the Corporation determines not to permit the exercise by such Qualified Person
        of the Options allocated to such Qualified Person.

         

        (ii) If the Qualified Person is regarded by
        the Corporation to have performed any act of disloyalty against the Corporation or the Sony Group Companies.

         

        (iii) If the Qualified Person violates any
        provision of the Agreement.

         

        (5)       The
        Qualified Person is not authorized to transfer, pledge or otherwise dispose of all or part of the Options.

         

         

        (6)       Exercise
        of the Options are further subject to any restriction on trading set forth under Sony Corporation of America’s Policy Regarding
        Securities Trading or any other similar policy maintained by Sony group companies (hereinafter referred to as the “Sony Group
        Companies”) and applicable to the Qualified Person, as in effect from time to time.

         

        11.       Prohibition
        of Disposition

         

        (1)       Except
        as provided in Paragraph (2) below, the Options, whether vested or unvested, are nontransferable by the Qualified Person.

         

        (2)       Upon
        the death of the Qualified Person, outstanding Options that are vested and exercisable and granted to such Qualified Person may
        be exercised only by the executors or administrators of the Qualified Person’s estate or by any person or persons who shall
        have acquired such right to exercise by will or by the laws of descent and distribution, provided that no transfer by will or the
        laws of descent and distribution of any Option, or the right to exercise any Option, shall be effective to bind the Corporation
        unless the Corporation shall have been furnished with (a) a written notice thereof and a copy of the will and/or such evidence
        as the Corporation may deem necessary to establish the validity of the transfer and (b) an agreement by the transferee to comply
        with all the terms and conditions of the Options that are or would have been applicable to the Qualified Person (other than any
        terms and conditions relating to employment with the Corporation or one of its subsidiaries) and to be bound by the acknowledgements
        made by the Qualified Person in connection with the grant of the Options. Options that are not vested and exercisable at the death
        of the Qualified Person will terminate.

         

        12.       Repurchase/Purchase
        of Options

         

        Mandatory repurchase of the Options is not
        applicable. In addition, in no circumstances shall any Qualified Person request the Corporation to purchase the Options held by
        him/her.

         

        13.       Restrictions
        on Acquisition of Options through Transfer

         

         

        The Options cannot be acquired through transfer
        (other than any transfer of Options that are vested and exercisable upon the death of a holder of the Options to such holder’s
        estate or beneficiaries), unless such acquisition is expressly approved by the Board of Directors of the Corporation.

         

         

        14.       Place
        where Applications for Exercise of Options are Made

         

        Sony Corporation of America, Human Resources,
        or its duly authorized designee

         

         

        15.       Payment
        Handling Place on Exercise of Options

         

        Sumitomo Mitsui Banking Corporation, Head Office
        (or any successor bank of such bank from time to time and/or any successor office of such office)

         

         

        16.       Issuance
        of ADRs

         

         

        The Corporation currently maintains an American
        Depositary Receipt program in the United States pursuant to which American Depositary Receipts or “ADRs” represent
        shares of common stock of the Corporation. During the time the Corporation maintains an American Depositary Receipt program in
        the United States, the Qualified Persons who exercise the Options will generally receive ADRs in lieu of shares of common stock
        of the Corporation as follows. Upon exercise of an Option, shares of common stock of the Corporation acquired upon the exercise
        of such Option shall be issued in the name of the depositary or its nominee under the Sony American Depositary Receipt Program
        for the benefit of the Qualified Person. Upon receipt of shares of common stock of the Corporation upon the exercise of an Option,
        the depositary under the Sony American Depositary Receipt Program shall immediately and automatically issue ADRs representing such
        shares of common stock of the Corporation in the name of the applicable Qualified Person and shall deliver such ADRs to such Qualified
        Person (or to an account held for the benefit of such Qualified Person) as soon as practicable following the effective date on
        which such issuance occurs. For simplicity, all references in the Allocation Agreement (as defined below in Article 16 of the Conditions)
        and the Conditions to shares of common stock of the Corporation will be deemed to also refer to ADRs.

         

        17.       Treatment
        in Event of Corporate Transaction

         

        (1)       In
        the event of any corporate transaction excluding (a) a consolidation, amalgamation or merger in which the Corporation is not the
        continuing corporation, or (b) share exchange (kabushiki-kokan) or share transfer (kabushiki-iten) pursuant to which the Corporation
        is to become a wholly-owned subsidiary of another corporation involving the Corporation, including a dissolution or liquidation
        of the Corporation, a sale of all or substantially all of the Corporation’s assets, a corporate split, or any other similar
        transaction, the Corporation may (x) cause the entity resulting from such transaction to execute an agreement providing that a
        holder of the Options shall have the right during the Term and upon the exercise of the Options to receive the class and amount
        of shares and other securities and property receivable upon such transaction by a holder of the number of shares in respect of
        which the Options could have been exercised immediately prior to such transaction or (y) prevent from being exercised, effective
        immediately upon the occurrence of such transaction, each Option outstanding immediately prior to such transaction (whether or
        not then exercisable).

         

        (2)       In
        the event that the Corporation enters into a definitive agreement or makes a decision by board resolution or by shareholder approval
        at the shareholders’ meeting to effectuate one or more of the transactions or events described in the immediately preceding
        paragraph, the Corporation may provide not less than twenty days advance notice to the Qualified Person from the consummation of
        such transaction or event and give the Qualified Person the opportunity to exercise their Options (whether or not such Options
        are then vested or exercisable), immediately prior to, and subject to, the consummation of such transaction or event.

         

         

         

        18.       Condition
        Subsequent of the Allocation Agreement with the Qualified Person

         

        The agreement concerning the allocation of
        the Stock Acquisition Rights of Sony Corporation for the Fiscal Year 2016 between the Qualified Person and the Corporation dated
        November 21, 2016 (hereinafter referred to as the “Allocation Agreement”), shall terminate, automatically, without
        any procedures being taken, in the event that the Qualified Person is not the position of director, corporate executive officer,
        officer or employee of the Corporation or of the Sony Group Companies on the Allotment Date.

         

        19.       Matters
        concerning the Amount of Capital and the Additional Paid-in Capital Increased by the Issuance of Shares upon Exercise of Options

         

         

        (1)       The
        amount of capital increased by the issuance of shares upon exercise of the Options shall be the amount obtained by multiplying
        the maximum limit of capital increase, as calculated in accordance with the provisions of Paragraph 1, Article 17 of the Company
        Accounting Ordinance of Japan, by 0.5, and any fraction less than one (1) yen arising as a result of such calculation shall be
        rounded up to the nearest one (1) yen.

         

         

        (2)       The
        amount of additional paid-in capital increased by the issuance of shares upon exercise of the Options shall be the amount obtained
        by deducting the capital to be increased, as provided in (1) above, from the maximum limit of capital increase, as also provided
        in (1) above.

         

        20.       Representations,
        Warranties, Covenants and Confirmations

         

        The Qualified Person shall represent, warrant,
        covenant and confirm the matters set forth in the Exhibit hereto.

         

         

        21.       Construction

         

        Nothing herein or the Allocation Agreement
        shall be construed to give the Qualified Person any right or entitlement to receive options to purchase common stock of the Corporation
        in the future from the Corporation or any of its subsidiaries. Nothing contained herein or the Allocation Agreement shall confer
        upon the Qualified Person any right to continue in the employment of the Corporation or any of its subsidiaries or constitute any
        contract or agreement of employment or interfere in any way with the right of the Corporation or its subsidiaries to reduce or
        modify a Qualified Person’s compensation in existence at the time of the granting of any Option or otherwise, or to terminate
        a Qualified Person’s employment or change the Qualified Person’s position or the terms of employment with or without
        cause. Nothing contained herein or the Allocation Agreement shall prevent the Corporation from, and the Corporation expressly reserves
        the right to, modify the terms and conditions of options to purchase common stock of the Corporation, if any, that are or may be
        granted in the future.

         

         

         

         

        Exhibit

         

        REPRESENTATIONS AND WARRANTIES FOR NON-US PARTICIPANTS

         

        The Qualified Person confirms the following
        matters pursuant to Article 17 of the Conditions.

         

        1.       (Employment
        Contract)

        I understand that nothing in the Sony Corporation
        Stock Acquisition Rights Plan (the “Plan”) terms form part of my employment contract, unless my employment contract
        expressly states otherwise. Participation in the Plan does not create any right to continued employment.

         

        I understand that neither the participation in
        the Plan nor the grant of an Option creates any rights to participate in the Plan or to be granted any stock acquisition right,
        Option or award in the future. The Plan may cease to be operated in the future although any existing Options granted under the
        Plan will continue in accordance with the Allocation Agreement, Exhibits to the Allocation Agreement, and the Terms and Conditions.

         

        I understand that I have no claim or right of
        action in respect of any decision, omission or discretion which may operate to my disadvantage even if it is unreasonable, irrational
        or might otherwise be regarded as being in breach of any duty, except as set out in the relevant Plan documentation.

         

         

         

        I understand I have no right to compensation for
        any loss in relation to the Plan, including any loss in relation to:

        ·        
        a reduction of rights or expectations under the
        Plan in any circumstances (including lawful or unlawful termination of employment);

         

        ·        
        any exercise of a discretion or a decision taken
        in relation to an award or to the Plan, or any failure to exercise a discretion or take a decision; and

         

        ·        
        the operation, suspension, termination or amendment
        of the Plan.

         

        I understand that as the grant by the Corporation
        is entirely discretionary, the benefits and rights acquired under the Plan do not constitute “base salary” or other
        regular employment earnings and that nothing in the rules or operation of the Plan forms part of my contract of employment or employment
        relationship, which rights are separate from and not affected by, the Plan. I understand and agree that under no circumstances
        will the benefits derived from the Plan be included as part of my employment earnings for purposes of calculating any of the Corporation’s
        and/or the Sony group companies’ (including my employer) obligations to me for bonus, retirement, severance, or any other
        such payments.

         

         

         

        2.       (Data
        Protection)

        I consent to the collection, use and disclosure
        by the Corporation and/or companies in the Sony group (including my employer) of any personal information or data necessary for
        the administration of the Plan.

         

        Subject to legislative requirements, the information
        may be retained after my Options are exercised or cancelled. I understand that I can contact the Secretariat of the Stock Option
        Plan, Corporate Human Resources, Sony Corporation or the Human Resources Department of Sony Corporation of America (in accordance
        with the contact information provided to me under separate cover), if I have any queries in respect of this statement.

         

         

        I understand that the information provided to
        the Corporation, the companies in the Sony group (including my employer), and/or to their duly authorized third party designee(s)
        retained for the purpose of assisting the Corporation or the Sony group companies with administration of the Options and provided
        in relation to the Plan will be used in relation to the administration of my Options under the Plan.

         

        The Corporation and/or any of the companies in
        the Sony group (including my employer) may give information to others (including people acting as agents of the Corporation and/or
        any of the companies in the Sony group) in connection with the administration of the Plan on the understanding that they will keep
        the information secure.

         

         

        In order to process the information the Corporation
        and/or companies in the Sony group (including my employer) may transfer the information to other countries that may have a different
        level of statutory protection for my information than in my home country.

         

         

        I understand that I have a right to access certain
        information that the Plan holds about me and in order to exercise this right, I can contact the Secretariat of the Stock Option
        Plan, Corporate Human Resources, Sony Corporation or the Human Resources Department of Sony Corporation of America (in accordance
        with the contact information provided to me under separate cover).

         

        3.       (Payment
        of Tax, Social Security or Other Amounts)

        I authorize the Corporation and companies in the
        Sony group (including my employer) to withhold any amounts or make such arrangements as they consider necessary to meet any liability
        due to taxation, social security or other amounts in respect of my participation in the Plan. These arrangements may include the
        sale or reduction in number of any shares of the Corporation (hereinafter referred to as the “Shares”) unless I, as
        the participant in the Plan, discharge the liability myself.

         

        4.       (Tax
        Filings)

        By signing the Allocation Agreement, I agree to:

        (1)       make
        all neccessary personal tax filings in the territory where I am tax resident in relation to this Plan;

         

         

        (2)       make
        any required foreign exchange filings or notifications in relation to my holding of rights under the Plan in the territory where
        I am foreign exchange resident; and

         

         

        (3)       comply
        with any requirements to notify my employer of my interests in rights relating to the Shares (whether these requirements are based
        on the internal rules of the Corporation, the Sony group, my employer or applicable law).

         

         

        5.       (Pensions)

        I understand and agree that this grant of Options
        to me will not affect my pension rights in any way. No additional contributions will be made by the Corporation or by any other
        member of the Sony group (including my employer) as a result of my participation in this Plan. Any pension I may receive will not
        be increased by my participation in this Plan.

         

        6.       (Tax
        Treatment)

        I understand and agree that neither the Corporation
        nor any member of the Sony group (including my employer) has arranged for any special tax treatment to apply to these Options.
        The Options are not tax qualified in any jurisdiction.]Exhibit 10.1

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (this "Agreement") between AptarGroup, Inc., a Delaware corporation (the "Company"), and Stephan B. Tanda (the "Executive") is entered into as of November 21, 2016. In consideration of the covenants contained herein, the parties agree as follows:

1.            Employment. The Company shall employ the Executive, and the Executive agrees to be employed by the Company, upon the terms and subject to the conditions set forth herein for the period beginning on February 1, 2017, or such other date, not to be later than March 1, 2017, as shall be agreed to by the Chairman of the Board of Directors of the Company (the "Board") and the Executive (the "Start Date"), and ending on December 31, 2019, unless earlier terminated pursuant to Section 4 hereof; provided, however, that such term shall automatically be extended as of each January 1st commencing January 1, 2018, for one additional year unless either the Company or the Executive shall have terminated this automatic extension provision by written notice to the other party at least 30 days prior to the automatic extension date; and provided further that in no event shall such term extend beyond December 31, 2030.  The term of employment in effect from time to time hereunder is hereinafter called the "Employment Period."

2.            Position and Duties. During the Employment Period, the Executive shall serve as the President and Chief Executive Officer of the Company and shall have the normal duties, responsibilities and authority of an executive serving in such position, reporting to and subject to the direction of the Board. During the Employment Period, the Executive shall devote his best efforts and his full business time to the business and affairs of the Company and its subsidiaries; provided that the Executive may continue to serve as a director of one of the two companies on whose board the Executive sits as of the date of this Agreement (the Executive to notify the Company prior to the Start Date as to which one of the two he has selected).  The Executive shall not serve as a director of any other for-profit entity without first receiving the approval of the Board.  The Executive shall be appointed to serve as a member of the Board effective at or promptly following the Start Date. At each annual meeting of the Company's stockholders during the Employment Period, the Company shall nominate the Executive to serve as a member of the Board, with such Board service subject to any required stockholder approval.  Upon the termination of the Executive's service as President and Chief Executive Officer for any reason, he shall be deemed, unless otherwise agreed to by the Company, to have also resigned as a member of the Board and from any other positions held with the Company or any of its affiliates.

3.            Compensation and Benefits.

(a)            The Company shall pay the Executive a salary during the Employment Period, in monthly installments, initially at the rate of $1,000,000 per annum. The Compensation Committee of the Board (the "Compensation Committee") may, in its sole discretion increase (but not decrease) such salary (such annual salary, as in effect from time to time, the "Base Salary").

(b)            Beginning in fiscal year 2017, the Executive shall be eligible to participate in the annual cash bonus program maintained for senior executive officers of the Company (the "Annual Incentive Program").  The actual amount of the annual bonus earned by and payable to the Executive for any year or portion of a year, as applicable, shall be determined upon the satisfaction of goals and objectives established by the Compensation Committee, following consultation with the Executive, and shall be subject to such other terms and conditions of the Annual Incentive Program as in effect from time to time (including, without limitation, any ability to elect to receive a portion of such annual bonus payment in the form of restricted stock units); provided, however, that with respect to the Executive's bonus for fiscal year 2017, to be paid, depending on the level of attainment of goals and objectives set by the Compensation Committee, in fiscal year 2018:

(i)  the Executive's (A) threshold bonus amount will be set at 50% of Base Salary, (B) target bonus amount will be set at 100% of Base Salary and (C) maximum bonus amount will be set at 200% of Base Salary; and

(ii)  the Executive's bonus shall not be less than $500,000, provided that the Company achieves the performance goal that the Compensation Committee will approve in connection with Executive's participation in the Annual Incentive Program for 2017.

Each bonus paid under the Annual Incentive Program shall be paid to Executive no later than March 15th of the calendar year following the calendar year in which the bonus is earned.

 

 

(c)            In each fiscal year during the Employment Period in which the Executive is actively serving as President and Chief Executive Officer on the regularly-scheduled date of annual grants of long-term incentives to senior executives, the Company shall provide to Executive a long-term incentive award.  The size and form of each such award shall be determined by the Compensation Committee; provided that for fiscal year 2017, the long-term incentive award to be made to the Executive shall be comprised of (i) options to purchase Company Common Stock having a Black-Scholes value of $1,900,000, such option award to be awarded pursuant to the Company's standard form of Option Award Agreement for option awards to senior executives and (ii) an award under the Company's Total Shareholder Return Outperformance Plan with a target cash award amount of $750,000 ("Target") with three year cliff vesting and a payout range of 0%-250% of Target, subject to the achievement of the underlying performance goals.

(d)            The Executive will forfeit certain equity awards provided to him by his former employer (the "Former Employer") as a consequence of his departure from such Former Employer.  In recognition of this, the Company will:

(i)            pay to the Executive in a lump sum within five business days of May 15, 2017, subject to the Executive's continued employment with the Company through such date, a cash payment in U.S. dollars in an amount equal to the product of (A) 18,990 and (B) the average closing price of one ordinary share of Koninklijke DSM N.V. (Royal DSM), as reported on Euronext Amsterdam during December 2016 (the "DSM Reference Share Price") (such average closing price to be calculated by (x) adding together the closing price in Euros on each day on which the Euronext Amsterdam was open for trading during December 2016 (each such day a "December 2016 Trading Day"), (y) dividing this sum by the total number of December 2016 Trading Days and (z) converting the resulting amount from Euros into U.S. dollars using the Average Conversion Ratio.   The "Average Conversion Ratio" shall be determined by (i) taking the Euro-into-U.S. Dollar exchange rate as in effect for each December 2016 Trading Day, expressed as a number of U.S. dollars (as reported for such day by Bloomberg Markets at www.bloomberg.com/quote/EURUSD:CUR, or if such information is no longer available at such source, from any successor or comparable source), (ii) adding together those amounts, and (iii) dividing this sum by the total number of December 2016 Trading Days;

2

 

(ii)          pay to the Executive in a lump sum within five business days of May 15, 2018, subject to the Executive's continued employment with the Company through such date, a cash payment in an amount equal to the product of (A) 20,511 and (B) the DSM Reference Share Price;

(iii)          pay to the Executive in a lump sum within five business days of May 15, 2019, subject to the Executive's continued employment with the Company through such date, a cash payment in an amount equal to the product of (A) 16,043 and (B) the DSM Reference Share Price;

Notwithstanding the foregoing, the Company shall not be required to make any payment to the Executive (i) pursuant to 3(d)(i) if and to the extent that the Former Employer pays the Executive for the 18,990 restricted stock units currently held by the Executive that are scheduled to vest in March 2017, (ii) pursuant to 3(d)(ii) if and to the extent that the Former Employer pays the Executive for the 20,511 restricted stock units currently held by the Executive that are scheduled to vest in March 2018 and (iii) pursuant to Section 3(d)(iii) if and to the extent that the Former Employer pays the Executive for the 24,064 restricted stock units currently held by the Executive that are scheduled to vest in March 2019.

(e)          The Executive is a participant in the annual incentive program for fiscal year 2016 maintained by the Former Employer (the "Former Employer 2016 Annual Incentive Program"). The Executive's expectation is that the Former Employer will in March 2017 pay the Executive in full the amount that he will have earned (the "Earned Amount") under the Former Employer 2016 Annual Incentive Program. To the extent the Former Employer does not pay the Earned Amount to the Executive, the Company will pay to the Executive, no later than May 31, 2017, an amount, to be mutually agreed between the Company and the Executive, designed to be approximately equivalent to the Earned Amount; provided that the Executive shall be required to pay back to the Company any amount received from the Company pursuant to this Section 3(e) if and to the extent that the Former Employer pays the Earned Amount to the Executive after the Company has made the payment contemplated hereby.

(f)          The Company shall reimburse the Executive for all reasonable expenses incurred by him in the ordinary course of performing his duties under this Agreement that are consistent with the Company's policies in effect from time to time.

(g)          The Executive shall participate in the Company's Employees' Retirement Plan and Supplemental Executive Retirement Plan (the "Supplemental Plan"), and any successor or replacement plans; provided, however, that nothing in this Agreement shall prohibit the Company from amending or terminating such plans. The Executive shall commence benefit accruals under the Supplemental Plan commencing on the Start Date and will at all times be deemed to be fully vested in such benefit accruals.

(h)          During the Employment Period, the Executive shall be entitled to participate in the Company's executive benefit programs on the same basis as the other most senior executives of the Company, which programs consist of those benefits (including insurance, vacation, company car or car allowance and/or other benefits) for which substantially all of the executives of the Company are from time to time generally eligible, as determined from time to time by the Board or Compensation Committee.

3

(i)          The Executive shall also be entitled, subject to the limitation included in the next sentence, to reimbursement for additional expenses related to his change in employment and relocation. This reimbursement, which shall be for reasonable expenses associated with matters such as moving, househunting, sale of home, purchase of home (but not purchase price), temporary living expenses, spousal travel, tax planning services, financial advisory services and legal services, shall be limited to $250,000, which shall be paid in 2017. In addition, with respect to any such reimbursement for Relocation Expenses, the Company shall pay to the Executive an additional amount (the "Relocation Expense Gross-Up") equivalent to any taxes paid by the Executive with respect to such reimbursed Relocation Expenses and the payment of the Relocation Expense Gross-Up. Relocation Expenses shall include expenses associated with moving, househunting, home sale and purchase (but not purchase price), legal services related to home sale and purchase, spousal travel and temporary living expenses, but shall not include legal services not related to home sale and purchase, financial planning or tax planning expenses. Payment of the Relocation Expense Gross-Up shall be made on or as soon as practicable following the day on which the required tax is remitted by or on behalf of Executive (but not later than the end of the taxable year following the year in which such tax is remitted).

(j)          In addition to participation in the Company's executive benefit programs pursuant to Section 3(g) and Section 3(h), the Executive shall be entitled during the Employment Period to:

(i)          supplemental term life insurance coverage in an amount equal to the Executive's annual salary, but only if and so long as such additional coverage is available at standard rates from the insurer providing term life insurance coverage under the executive benefit programs or a comparable insurer acceptable to the Company; provided, that if such supplemental life insurance coverage is not available and if the Employment Period ends on account of the Executive's death, the Company shall pay to the Executive's estate (or such person or persons as the Executive may designate in a written instrument signed by him and delivered to the Company prior to his death) a lump sum amount, payable within 90 days following the Executive's death, equal to the excess of (A) the amount of the Executive's annual salary then in effect over (B) the amount of term life insurance coverage provided to the Executive by the Company.

(ii)        supplementary long-term disability coverage in an amount which will increase maximum covered annual compensation to 66 2/3% of the Executive's Base Salary; but only if and so long as supplementary coverage is available at standard rates from the insurer providing long-term disability coverage under the executive benefit program or a comparable insurer acceptable to the Company.

(k)          The Executive shall be entitled to six weeks of paid vacation each fiscal year.

(l)          Notwithstanding anything herein to the contrary, if the Company terminates the Executive's employment for Cause (as defined herein) or Executive resigns from the Company without Good Reason (as defined herein), in each case, prior to the one-year anniversary of the Start Date, Executive shall repay to the Company any amounts paid pursuant to Section 3(d)(i) or Section 3(i) within ten (10) days of Executive's termination of employment; provided, further, to the extent permitted by applicable law and in accordance with Section 409A of the Internal Revenue Code of 1986, as amended (the "Code"), if the Executive is required to repay any such amounts, then the Company shall be entitled to offset the required repayment amount against any compensation or other amounts due from the Company to the Executive.

4

For the avoidance of doubt, none of the compensation or other benefits described in this section 3 or elsewhere in this Agreement shall be payable to the Executive if he does not commence work for the Company as its President and Chief Executive Officer.

4.              Termination of Employment.

(a)          The Employment Period shall end upon the first to occur of: (i) the expiration of the term of this Agreement pursuant to Section 1 hereof; (ii) termination of the Executive's employment by the Company on account of the Executive's having become unable (as determined by the Board in good faith) to regularly perform his duties hereunder by reason of illness or incapacity for a period of more than six consecutive months ("Termination for Disability"); (iii) termination of the Executive's employment by the Company for Cause ("Termination for Cause"); (iv) termination of the executive's employment by the Company other than a Termination for Disability or a Termination for Cause ("Termination Without Cause"); (v) the Executive's death or (vi) termination of the Executive's employment by the Executive for any reason following written notice to the Company at least 90 days prior to the date of such termination ("Termination by the Executive"). All references in this Agreement to the Executive's termination of employment and to the end of the Employment Period shall mean a "separation from service" within the meaning of Section 409A of the Code.

(b)          For purposes of this Agreement, "Cause" shall mean (i) the commission of a felony involving moral turpitude, (ii) the commission of a fraud, (iii) the commission of any material act involving dishonesty with respect to the Company or any of its subsidiaries or affiliates, (iv) gross negligence or willful misconduct with respect to the Company or any of its subsidiaries or affiliates, (v) breach of any provision of Section 5 or Section 6 hereof or (vi) any other breach of this Agreement which is material and which is not cured within 30 days following written notice thereof to the Executive by the Company.

(c)          If the Employment Period ends for any reason set forth in Section 4(a), except as otherwise provided in this Section 4, the Executive shall cease to have any rights to salary, bonus (if any) or benefits hereunder, other than (i) any unpaid salary accrued through the date of such termination, (ii) any bonus payable based on actual performance, but only if such termination occurs during the third or fourth quarter of the Company's fiscal year, such bonus to be prorated and paid in accordance with Company policy (with such prorated bonus paid no later than the March 15th immediately following the end of the fiscal year in which such prorated bonus was earned), (iii) any unpaid expenses which shall have been incurred as of the date of such termination, (iv) to the extent provided in any benefit plan in which the Executive has participated, any plan benefits which by their terms extend beyond termination of the Executive's employment and (v) a lump sum, calculated in accordance with the assumptions used or to be used in preparing the financial statements for the fiscal year prior to the fiscal year in which the termination of employment occurs, payable within 30 business days of such termination, equal to the present value of any qualified pension benefits Executive would lose in connection with such termination; provided that no payment shall be required by this clause (v) in connection with a termination that occurs later than five years following the Start Date. Notwithstanding the foregoing, if the Employment Period ends on account of a Termination for Cause, the Executive shall not be entitled to any amounts under Section 4(c)(ii) or 4(c)(v).

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(d)          If the Employment Period ends on account of Termination for Disability, in addition to the amounts described in Section 4(c) hereof, the Executive shall receive the disability benefits to which he is entitled under any disability benefit plan in which the Executive has participated as an employee of the Company.

(e)          If the Employment Period ends on account of the Executive's death, the Company shall pay to the Executive's estate (or such person or persons as the Executive may designate in a written instrument signed by him and delivered to the Company prior to his death), in addition to the amount payable pursuant to Section 3(j), amounts equal to one-half of the amounts the Executive would have received as Base Salary had the Employment Period remained in effect until the second anniversary of the date of the Executive's death, at the times such amounts would have been paid absent such termination of employment.

(f)          If the Employment Period ends on account of Termination without Cause, in addition to the amounts described in Section 4(c) hereof, the Company shall, subject to Section 4(k) hereof:

(i)           pay to the Executive an amount equal to the product of (A) 1.5 and (B) the sum of (1) Executive's annual Base Salary in effect immediately prior to Executive's termination of employment hereunder and (2) the greater of (i) Executive's target bonus under the Annual Incentive Program for the year in which the termination of employment occurs and (ii) the average of the annual bonuses paid or payable, including by reason of any deferral, to the Executive by the Company and its affiliated companies in respect of the two fiscal years of the Company immediately preceding the fiscal year in which Executive's employment is terminated, such amount to be paid to the Executive in 18 equal monthly installments paid during the first 18 months following the Executive's termination of employment in accordance with the Company's regularly scheduled payroll schedule;

(ii)          pay to the Executive within thirty (30) days following the effective date of such termination of employment, a lump sum equal to the payments that are contemplated by Section 3(d) hereof but have not been made as of the date of termination of employment;

(iii)          in lieu of the amounts specified in Section 4(c)(ii), the Company shall pay the Executive a bonus under the Annual Incentive Program for the year of termination, payable at the same time as annual cash bonuses are paid to senior management, based on actual achievement of performance targets (as if the Executive had remained employed through the end of the applicable performance period), subject, however, to proration based on the number of days in the applicable performance period that had elapsed prior to the date of termination; and

(iv)          for a period of eighteen (18) months commencing on the date of termination, the Company shall continue to keep in full force and effect all policies of medical, disability and life insurance with respect to the Executive and his dependents with the same level of coverage, upon the same terms and otherwise to the same extent as such policies shall have been in effect immediately prior to the date of termination or, if more favorable to the Executive, as provided generally with respect to other peer executives of the Company, and the Company and the Executive shall share the costs of the continuation of such insurance coverage in the same proportion as such costs were shared immediately prior to the date of termination; provided, that if the provision of such benefits shall result in adverse tax consequences to the Company with respect to its benefit plans, the Company shall provide such benefits under comparable policies purchased by the Company to the extent permitted by applicable law.

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(g)          Notwithstanding the foregoing provisions of this Section 4, in the event of a Change in Control (as defined in Exhibit A hereto), the employment of the Executive hereunder shall not be terminated by the Company or any successor to the Company within two years following such Change in Control unless the Executive receives written notice of such termination from the Company or such successor at least 30 days prior to the date of such termination. In addition, the Executive agrees that he shall not terminate his employment hereunder, other than for Good Reason, within one year following a Change in Control unless the Company or any successor to the Company receives written notice of such termination from the Executive at least six months prior to the date of such termination. In the event of a termination of employment by the Company or its successor other than a Termination for Cause, a Termination for Disability or due to the Executive's death (in which case the provisions of Section 4(c), 4(d) or 4(e), as the case may be, shall apply), within two years following a Change in Control, or in the event that the Executive terminates his employment hereunder for Good Reason (as defined in Section 4(h) hereof) within two years following a Change in Control:

(i)          the Company shall, subject to Section 4(k) hereof, pay to the Executive within 30 days following the date of termination, in addition to the amounts and benefits described in Sections 4(c)(i), (iii), (iv) and (v) and Section 4(f)(ii) hereof:

(A)          a cash amount equal to the sum of (i) the Executive's annual bonus in an amount at least equal to the average of the annual bonuses paid or payable, including by reason of any deferral, to the Executive by the Company and its affiliated companies in respect of the three fiscal years of the Company immediately preceding the fiscal year in which the Change in Control occurs, multiplied by a fraction, the numerator of which is the number of days in the fiscal year through the date of termination and the denominator of which is 365 or 366, as applicable, and (ii) any accrued vacation pay to the extent not theretofore paid; plus

(B)          a lump-sum cash amount in an amount equal to (i) three (3) times the Executive's highest annual base salary from the Company and its affiliated companies in effect during the 12-month period prior to the date of termination, plus (ii) three (3) times the average of the annual bonuses paid or payable, including by reason of any deferral, to the Executive by the Company and its affiliated companies in respect of the three fiscal years of the Company immediately preceding the fiscal year in which the Change in Control occurs; provided, however, that any amount paid pursuant to this Section 4(g)(i)(B) shall be paid in lieu of any other amount of severance relating to salary or bonus continuation to be received by the Executive upon termination of employment of the Executive under Section 4(f) or any other provision of this Agreement or under any severance plan, policy or arrangement of the Company;

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(ii)          for a period of three (3) years commencing on the date of termination, the Company shall continue to keep in full force and effect all policies of medical, disability and life insurance with respect to the Executive and his dependents with the same level of coverage, upon the same terms and otherwise to the same extent as such policies shall have been in effect immediately prior to the date of termination or, if more favorable to the Executive, as provided generally with respect to other peer executives of the Company, and the Company and the Executive shall share the costs of the continuation of such insurance coverage in the same proportion as such costs were shared immediately prior to the date of termination; provided, that if the provision of such benefits shall result in adverse tax consequences to the Company with respect to its benefit plans, the Company shall provide such benefits under comparable policies purchased by the Company to the extent permitted by applicable law; and

(iii)          the Company shall pay to the Executive any compensation previously deferred by the Executive (together with any interest and earnings thereon) in accordance with the terms of the plans pursuant to which such compensation was deferred.

(h)          For purposes of this Agreement "Good Reason" shall mean (x) a reduction by the Company in the Executive's rate of annual salary in effect immediately prior to the Change in Control, (y) a material reduction in any benefit afforded to the Executive pursuant to any benefit plan of the Company in effect immediately prior to the Change in Control, unless all comparable executives of the Company suffer a substantially similar reduction or (z) the relocation of the Executive's office to a location more than 60 miles from the Company's current headquarters in Crystal Lake, Illinois.

(i)          Notwithstanding anything in this Agreement to the contrary, in the event it shall be determined that any payment or distribution by the Company or its affiliated companies to or for the benefit of the Executive (whether paid or payable or distributed or distributable pursuant to the terms of this Agreement or otherwise, but determined without regard to any adjustment required under this Section 4(i) (in the aggregate, the "Total Payments") would be subject to the excise tax imposed by Section 4999 of the Code (the "Excise Tax"), and if it is determined that (A) the amount remaining, after the Total Payments are reduced by an amount equal to all applicable federal and state taxes (computed at the highest applicable marginal rate), including the Excise Tax, is less than (B) the amount remaining, after taking into account all applicable federal and state taxes (computed at the highest applicable marginal rate), after payment or distribution to or for the benefit of the Executive of the maximum amount that may be paid or distributed to or for the benefit of the Executive without resulting in the imposition of the Excise Tax, then the Total Payments shall be reduced so that the Total Payments are one dollar ($1) less than such maximum amount. In the event that the Total Payments shall be reduced pursuant to this Section 4(i), then such reduced payment shall be determined by reducing the Total Payments otherwise payable to the Executive in the following order: (i) by reducing the payments due under Section 4(g)(i); (ii) by reducing any cash payments not subject to Section 409A of the Code; (iii) by eliminating the acceleration of vesting of any stock options (and if there is more than one option award so outstanding, then the acceleration of the vesting of the stock option with the highest exercise price shall be reduced first and so on); and (iv) by reducing the payments of any restricted stock, restricted stock units, performance awards or similar equity-based awards that have been awarded to the Executive by the Company (and if there be more than one such award held by the Executive, by reducing the awards in the reverse order of the date of their award, with the oldest award reduced first and the most-recently awarded reduced last).

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(j)          If the Executive's employment terminates at the expiration of the Term of this Agreement following a delivery by the Company of a notice of non-extension as contemplated by Section 1 of this Agreement, then (i) the Company shall pay to the Executive an amount equal to the sum of (A) the Executive's annual Base Salary in effect immediately prior to the Executive's termination of employment hereunder and (B) the Executive's target bonus under the Annual Incentive Program for the year of termination, such amount to be paid to the Executive in 12 equal monthly installments paid on each of the first 12 monthly payroll dates following the termination of employment and (ii) the Executive shall remain eligible to be paid the amounts described in Section 4(c)(i), (ii), (iii), (iv) and (v), and, for the avoidance of doubt, the Executive shall not be entitled to any other payments (including under Sections 4(f) or 4(g) of this Agreement) other than those contemplated by the Company's benefit and other plans in which the Executive participates.

(k)          Notwithstanding any other provision of this Agreement, if on the date that the Employment Period ends, (i) the Company is a publicly traded corporation and (ii) the Company determines that the Executive is a "specified employee," as defined in Section 409A of the Code, then to the extent that any amount payable under this Agreement (A) is payable as a result of the Executive's separation from service, (B) constitutes the payment of nonqualified deferred compensation within the meaning of Section 409A of the Code and (C) under the terms of this Agreement would be payable prior to the six-month anniversary of the date on which the Employment Period ends, such payment shall be delayed until the earlier of (1) the six-month anniversary of the date on which the Employment Period ends and (2) the death of the Executive. To the extent any payment hereunder constitutes the payment of nonqualified deferred compensation within the meaning of Section 409A of the Code and such payment is conditioned upon Executive's execution and non-revocation of a release and which is to be paid or provided during a designated period that begins in one taxable year and ends in a second taxable year, such payment shall be paid or provided in the later of the two taxable years. Notwithstanding the requirement of Section 4(g)(i) hereof that payments to the Executive thereunder be made in a lump sum, if a Change in Control within the meaning of this Agreement does not constitute a "change in control event" within the meaning of Section 409A of the Code, the amounts payable pursuant to Section 4(g)(i) hereof shall be paid to the Executive, but with respect to the timing thereof, such payments shall be made in the installments, and during the period, described in Section 4(f) hereof. Each amount payable under this Agreement as a result of the separation of the Executive's service shall constitute a "separately identified amount" within the meaning of Treasury Regulation §1.409A-2(b)(2). This Agreement shall be interpreted and construed in a manner that avoids the imposition of taxes and other penalties under Section 409A of the Code ("409A Penalties"). In the event the terms of this Agreement would subject the Executive to 409A Penalties, the Company and the Executive shall cooperate diligently to amend the terms of this Agreement to avoid such 409A Penalties, to the extent possible. Any reimbursement (including any advancement) payable to the Executive pursuant to this Agreement shall be conditioned on the submission by the Executive of all expense reports reasonably required by the Company under any applicable expense reimbursement policy, and shall be paid to the Executive within 30 days following receipt of such expense reports (or invoices), but in no event later than the last day of the calendar year following the calendar year in which the Executive incurred the reimbursable expense. Any amount of expenses eligible for reimbursement, or in-kind benefit provided, during a calendar year shall not affect the amount of expenses eligible for reimbursement, or in-kind benefit to be provided, during any other calendar year. The right to any reimbursement or in-kind benefit pursuant to this Agreement shall not be subject to liquidation or exchange for any other benefit. Notwithstanding the foregoing, under no circumstances shall the Company be responsible for any taxes, penalties, interest or other losses or expenses incurred by the Executive due to any failure to comply with Section 409A of the Code.

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(l)          The Executive's execution and non-revocation of a complete and general release, substantially in the form attached hereto as Exhibit B, is an express condition of the Executive's right to receive termination payments and benefits under this Agreement.

(m)          It is expressly understood that all of the Company's obligations under this Section 4, including the obligation to make payments or provide benefits to the Executive, shall cease in the event the Executive shall breach any provision of Section 5 or Section 6 of this Agreement.

5.              Confidential Information. The Executive acknowledges that the information, observations and data obtained by him while employed by the Company pursuant to this Agreement, as well as those obtained by him while employed by the Company or any of its subsidiaries or affiliates or any predecessor thereof prior to the date of this Agreement, concerning the business or affairs of the Company or any of its subsidiaries or affiliates or any predecessor thereof ("Confidential Information") are the property of the Company or such subsidiary or affiliate. Therefore, the Executive agrees that he shall not, subject to Section 16 hereof, disclose to any unauthorized person or use for his own account any Confidential Information without the prior written consent of the Board unless and except to the extent that such Confidential Information becomes generally known to and available for use by the public other than as a result of the Executive's acts or omissions to act. The Executive shall deliver to the Company at the termination of the Employment Period, or at any other time the Company may request, all memoranda, notes, plans, records, reports, computer tapes and software and other documents and data (and copies thereof) relating to the Confidential Information or the business of the Company or any of its subsidiaries or affiliates which he may then possess or have under his control.

6.              Noncompetition; Nonsolicitation.

(a)          The Executive acknowledges that in the course of his employment with the Company pursuant to this Agreement he will become familiar, and during the course of his employment by the Company or any of its subsidiaries or affiliates or any predecessor thereof prior to the date of this Agreement he has become familiar, with trade secrets and customer lists of and other confidential information concerning the Company and its subsidiaries and affiliates and predecessors thereof and that his services have been and will be of special, unique and extraordinary value to the Company.

(b)          The Executive agrees that during the Employment Period and for 18 months thereafter in the case of either Termination for Good Reason following a Change in Control or Termination without Cause, or for two years thereafter in the case of termination of employment for any other reason, (the "Noncompetition Period") he shall not in any manner, directly or indirectly, through any person, firm or corporation, alone or as a member of a partnership or as an officer, director, stockholder, investor or employee of or in any other corporation or enterprise or otherwise, engage or be engaged, or assist any other person, firm corporation or enterprise in engaging or being engaged, in any business then actively being conducted by the Company or any of its subsidiaries in any geographic area in which the Company or any of its subsidiaries is conducting such business (whether through manufacturing or production, calling on customers or prospective customers, or otherwise). Notwithstanding the foregoing, subsequent to the Employment Period the Executive may engage or be engaged, or assist any other person, firm, corporation or enterprise in engaging or being engaged, in any business activity which is not competitive with a business activity being conducted by the Company or any of its subsidiaries at the time subsequent to the Employment Period that the Executive first engages or assists in such business activity.

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(c)          The Executive further agrees that during the Noncompetition Period he shall not in any manner, directly or indirectly (i) induce or attempt to induce any employee of the Company or of any of its subsidiaries or affiliates to terminate or abandon his employment, or any customer of the Company or any of its subsidiaries or affiliates to terminate or abandon its relationship, for any purpose whatsoever, or (ii) in connection with any business to which Section 6(b) applies, call on, service, solicit or otherwise do business with any then current or prospective customer of the Company or of any of its subsidiaries or affiliates.

(d)          Nothing in this Section 6 shall prohibit the Executive from being (i) a stockholder in a mutual fund or a diversified investment company or (ii) a passive owner of not more than 2% of the outstanding stock of any class of a corporation any securities of which are publicly traded, so long as the Executive has no active participation in the business of such corporation.

(e)          If, at the time of enforcement of this Section 6, a court holds that the restrictions stated herein are unreasonable under circumstances then existing, the parties hereto agree that the maximum period, scope or geographical area reasonable under such circumstances shall be substituted for the stated period, scope or area and that the court shall be allowed to revise the restrictions contained herein to cover the maximum period, scope and area permitted by law.

7.          Enforcement. Because the services of the Executive are unique and the Executive has access to confidential information of the Company, the parties hereto agree that the Company would be damaged irreparably in the event any provision of Section 5 or Section 6 hereof were not performed in accordance with its terms or were otherwise breached and that money damages would be an inadequate remedy for any such nonperformance or breach. Therefore, the Company or its successors or assigns shall be entitled, in addition to other rights and remedies existing in their favor, to an injunction or injunctions to prevent any breach or threatened breach of any of such provisions and to enforce such provisions specifically (without posting a bond or other security).

8.          Survival. Sections 5, 6, 7, 16 and 17 hereof shall survive and continue in full force and effect in accordance with their respective terms, notwithstanding any termination of the Employment Period.

9.          Notices. Any notice provided for in this Agreement shall be in writing and shall be either personally delivered, or sent by certified mail, return receipt requested, postage prepaid, addressed (a) if to the Executive, to his last known address shown on the payroll records of the Company, and if to the Company, to AptarGroup, Inc., 475 West Terra Cotta Avenue, Suite E, Crystal Lake, Illinois 60014, attention: Chairman of the Compensation Committee of the Board of Directors or (b) to such other address as either party shall have furnished to the other in accordance with this Section 9.

10.          Severability. Whenever possible, each provision of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under applicable law or rule in any jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or unenforceable provision had never been contained herein.

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11.          Entire Agreement. This Agreement constitutes the entire agreement and understanding between the parties with respect to the subject matter hereof and supersedes and preempts any prior understandings, agreements or representations by or between the parties, written or oral, which may have related in any manner to the subject matter hereof.

12.          Successors and Assigns. This Agreement shall inure to the benefit of and be enforceable by the Executive and his heirs, executors and personal representatives, and the Company and its successors and assigns. Any successor or assignee of the Company shall assume the liabilities of the Company hereunder.

13.          Governing Law. This Agreement shall be governed by the internal laws (as opposed to the conflicts of law provisions) of the State of Illinois.

14.          Amendment and Waiver. The provisions of this Agreement may be amended or waived only with the prior written consent of the Company and the Executive, and no course of conduct or failure or delay in enforcing the provisions of this Agreement shall affect the validity, binding effect or enforceability of this Agreement.

15.          Withholding. All payments and benefits under this Agreement are subject to withholding of all applicable taxes.

16.          No Interference. Nothing in this Agreement prohibits the Executive from filing a charge with, or reporting possible violations of federal law or regulation to any governmental agency or entity, including but not limited to the U.S. Equal Opportunity Commission, the Department of Justice, the Securities and Exchange Commission, Congress, and any agency Inspector General, or making other disclosures that are protected under the whistleblower provisions of federal law or regulation. The Executive does not need the prior authorization of the Company to make any such reports or disclosures and is not required to notify the Company that he has made such reports or disclosures. In addition, this Agreement does not limit the Executive's right to receive an award for information provided to any government agencies. Furthermore, nothing in this Agreement shall limit the Executive's ability (i) to disclose in confidence trade secrets to federal, state, and local government officials, or to an attorney, for the sole purpose of reporting or investigating a suspected violation of law or (ii) disclose trade secrets in a document filed in a lawsuit or other proceeding, but only if the filing is made under seal and protected from public disclosure. Nothing in this Agreement is intended to conflict with 18 U.S.C. § 1833(b) or create liability for disclosures of trade secrets that are expressly allowed by 18 U.S.C. § 1833(b).

17.          Compensation Subject to Recoupment. Notwithstanding any provisions in this Agreement or any other agreement or arrangement to the contrary, any incentive-based compensation, equity-based compensation or compensation otherwise subject to clawback under applicable law, in each case, paid or payable pursuant to the terms of this Agreement or any other agreement or arrangement with the Company, shall be subject to forfeiture, recovery by the Company or other action pursuant to any clawback or recoupment policy of the Company, including without limitation any such policy which the Company may be required to adopt under the Dodd-Frank Wall Street Reform and Consumer Protection Act and implementing rules and regulations thereunder, or as otherwise required by law.

18.          No Conflict. The Executive represents and warrants that the Executive is not bound by any employment contract, restrictive covenant, or other restriction or subject to any other limitation preventing the Executive from carrying out the Executive's responsibilities for the Company, or which is in any way inconsistent with the terms of this Agreement. The Executive further represents and warrants that the Executive shall not disclose to the Company or induce the Company to use any confidential or proprietary information or material belonging to any previous employer or others.

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IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the date first written above.

 

 

	 	APTARGROUP, INC.	 
	 	 	 
	 	 	 
	 	 	 	 	 
	
 

	
 

	By: 	/s/ King W. Harris	 
	 	 	Name:	King W. Harris	 
	 	 	 		 
	 	 	Title:	Chairman of the Board of Directors	 

	 	EXECUTIVE:	 
	 	 	 	 	 
	
 

	 	
By: 

	/s/ Stephan B. Tanda	 
	 	 	 	Stephan B. Tanda	 
	 	 	 		 
	 	 	 	 	 

 

13

 

Exhibit A to

 Employment Agreement

 

DEFINITION OF CHANGE IN CONTROL

 

"Change in Control" means:

(1) the acquisition by any individual, entity or group (a "Person"), including any "person" within the meaning of Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the "Exchange Act"), of beneficial ownership within the meaning of Rule 13d-3 promulgated under the Exchange Act, of more than 50% of either (i) the then outstanding shares of common stock of the Company (the "Outstanding Company Common Stock") or (ii) the combined voting power of the then outstanding securities of the Company entitled to vote generally in the election of directors (the "Outstanding Company Voting Securities"); provided, however, that the following acquisitions shall not constitute a Change in Control: (A) any acquisition directly from the Company (excluding any acquisition resulting from the exercise of a conversion or exchange privilege in respect of outstanding convertible or exchangeable securities unless such outstanding convertible or exchangeable securities were acquired directly from the Company), (B) any acquisition by the Company, (C) any acquisition by an employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company or (D) any acquisition by any corporation pursuant to a reorganization, merger or consolidation involving the Company, if, immediately after such reorganization, merger or consolidation, each of the conditions described in clauses (i), (ii) and (iii) of subsection (3) of this Exhibit A shall be satisfied; and provided further that, for purposes of clause (B), if any Person (other than the Company or any employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation controlled by the Company) shall become the beneficial owner of more than 50% of the Outstanding Company Common Stock or more than 50% of the Outstanding Company Voting Securities by reason of an acquisition by the Company and such Person shall, after such acquisition by the Company, become the beneficial owner of any additional shares of the Outstanding Company Common Stock or any additional Outstanding Company Voting Securities and such beneficial ownership is publicly announced, such additional beneficial ownership shall constitute a Change in Control;

(2) individuals who, as of the date hereof, constitute the Board (the "Incumbent Board") cease for any reason to constitute at least a majority of such Board; provided, however, that any individual who becomes a director of the Company subsequent to the date hereof whose election, or nomination for election by the Company's stockholders, was approved by the vote of at least a majority of the directors then comprising the Incumbent Board shall be deemed to have been a member of the Incumbent Board; and provided further, that no individual who was initially elected as a director of the Company as a result of an actual or threatened solicitation by a Person other than the Board for the purpose of opposing a solicitation by any other Person with respect to the election or removal of directors or any other actual or threatened solicitation of proxies or consents by or on behalf of any Person other than the Board shall be deemed to have been a member of the Incumbent Board;

Exhibit A -1

(3) consummation of a reorganization, merger or consolidation unless, in any such case, immediately after such reorganization, merger or consolidation, (i) 50% or more of the then outstanding shares of common stock of the corporation resulting from such reorganization, merger or consolidation and 50% or more of the combined voting power of the then outstanding securities of such corporation entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals or entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such reorganization, merger or consolidation and in substantially the same proportions relative to each other as their ownership, immediately prior to such reorganization, merger or consolidation, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (ii) no Person (other than the Company, any employee benefit plan (or related trust) sponsored or maintained by the Company or the corporation resulting from such reorganization, merger or consolidation (or any corporation controlled by the Company) and any Person which beneficially owned, immediately prior to such reorganization, merger or consolidation, directly or indirectly, more than 50% of the Outstanding Company Common Stock or the Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, more than 50% of the then outstanding shares of common stock of such corporation or more than 50% of the combined voting power of the then outstanding securities of such corporation entitled to vote generally in the election of directors and (iii) at least a majority of the members of the board of directors of the corporation resulting from such reorganization, merger or consolidation were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such reorganization, merger or consolidation; or

(4) consummation of (i) a plan of complete liquidation or dissolution of the Company or (ii) the sale or other disposition of all or substantially all of the assets of the Company other than to a corporation with respect to which, immediately after such sale or other disposition, (A) 50% or more of the then outstanding shares of common stock thereof and 50% or more of the combined voting power of the then outstanding securities thereof entitled to vote generally in the election of directors is then beneficially owned, directly or indirectly, by all or substantially all of the individuals and entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities immediately prior to such sale or other disposition and in substantially the same proportions relative to each other as their ownership, immediately prior to such sale or other disposition, of the Outstanding Company Common Stock and the Outstanding Company Voting Securities, as the case may be, (B) no Person (other than the Company, any employee benefit plan (or related trust) sponsored or maintained by the Company or such corporation (or any corporation controlled by the Company) and any Person which beneficially owned, immediately prior to such sale or other disposition, directly or indirectly, more than 50% of the Outstanding Company Common Stock or the Outstanding Company Voting Securities, as the case may be) beneficially owns, directly or indirectly, more than 50% of the then outstanding shares of common stock thereof or more than 50% of the combined voting power of the then outstanding securities thereof entitled to vote generally in the election of directors and (C) at least a majority of the members of the board of directors thereof were members of the Incumbent Board at the time of the execution of the initial agreement or action of the Board providing for such sale or other disposition.

 

Exhibit A -2

 

Exhibit B to

 Employment Agreement

FORM OF RELEASE AGREEMENT

Stephan B. Tanda (the "Executive") and AptarGroup, Inc., a Delaware corporation (the "Company") hereby enter into this Release Agreement ("Release") in accordance with the Employment Agreement between the Company and the Executive dated as of November 21, 2016 (the "Agreement").  Capitalized terms not expressly defined in this Release shall have the meanings set forth in the Agreement:

1.            The Executive understands and agrees that the Executive's execution of this Release within 21 days after (but not before) the date of the termination of his employment with the Company, without revocation thereof as provided therein, is among the conditions precedent to the Company's obligation to provide any of the payments or benefits set forth in Section 4 of the Agreement.  The Company will provide such payments or benefits in accordance with the terms of the Agreement once the conditions set forth therein and in this Release have been met.

2.            The Executive is aware of his legal rights concerning his employment and termination of employment with the Company.  The Executive further represents that he understands that the amounts paid under the Agreement constitute a full and complete satisfaction of any claims, asserted or unasserted, known or unknown, that he has or may have against the Company or an affiliate.  Accordingly, in exchange for the amounts paid under the Agreement, the Executive individually and on behalf of his spouse, heirs, successors, legal representatives and assigns hereby agrees not to sue or instigate any grievance, charge, action, or suit at law or in equity and unconditionally releases, dismisses, and forever discharges the Company, including its predecessors, successors, parents, subsidiaries, affiliated corporations, limited liability companies and partnerships, and all of their employee benefit plans, officers, directors, fiduciaries, employees, assigns, representatives, agents, and counsel (collectively the "Released Parties") from any and all claims, demands, liabilities, obligations, agreements, damages, debts, and causes of action arising out of, or in any way connected with, the Executive's employment or termination of employment with the Company or any of the Released Parties.  This waiver and release includes, but is not limited to, all claims and causes of action arising under or related to Title VII of the Civil Rights Act of 1964, as amended; the Civil Rights Act of 1991; the Civil Rights Act of 1866; the Age Discrimination in Employment Act of 1967, as amended; the Americans with Disabilities Act; the Employee Retirement Income Security Act of 1974, as amended; the Sarbanes-Oxley Act of 2002; the Older Workers Benefit Protection Act of 1990; the Worker Adjustment and Retraining Notification Act; the Family and Medical Leave Act; all state and federal statutes and regulations; any other federal, state or local law; all oral or written contract rights, including any rights under any Company incentive plan, program, or labor agreement; and all claims arising under common law including breach of contract, tort, or for personal injury of any sort, or any other legal theory, whether legal or equitable; provided, however, nothing herein will release the Company from any claims or damages based on (i) any right the Executive may have to enforce the Agreement, (ii) any right or claim that arises after the date of this Release, (iii) the Executive's eligibility for indemnification in accordance with applicable laws or the certificate of incorporation and by-laws of the Company or its affiliates, or any applicable insurance policy, with respect to any liability the Executive incurs or incurred as an employee or officer of the Company or its affiliates or (iv) any right the Executive may have to obtain contribution as permitted by law in the event of entry of judgment against the Executive as a result of any act or failure to act for which the Executive and the Company are jointly liable.

Exhibit B -1

3.            By signing below, the Executive acknowledges that he has thoroughly read this Release and that he has full understanding and knowledge of its terms and conditions.  He also acknowledges that he has been advised to consult an attorney prior to executing this Release and that he has up to 21 days to review this Release before signing it. The Executive understands that he may revoke this Release within 7 days after he signs it, in which case the Agreement will not go into effect and the Executive will not receive the payments or benefits that are being provided by the Agreement.  The Executive also understands that if he does not revoke this Release within 7 days after he signs it, this Release shall become effective as of such date and will be complete, final and binding on the Executive and the Company.

4.            This Release and the Agreement are the entire agreement of the parties regarding the matters described in such agreements and supersede any and all prior and/or contemporaneous agreements, oral or written, between the parties regarding such matters.  For the avoidance of doubt, nothing in this Release is intended to supersede Section 16 (No Interference) of the Agreement. This Release is governed by the internal laws of the State of Illinois, may be signed in counterparts, and may be modified only by a writing signed by all parties.

THE PARTIES STATE THAT THEY HAVE READ THE FOREGOING, THAT THEY UNDERSTAND EACH OF ITS TERMS, AND THAT THEY SIGN BELOW INTENDING TO BE BOUND HERETO.

Exhibit B -2

 

	_______________________________________________	Date: ________________________________________________________
	
Stephan B. Tanda

	
                                                    

	
 

ACCEPTED FOR APTARGROUP, INC.

 

 

By:___________________________                                                                                               

Name:

Title:

 

Date:__________________________                                                                                    

Exhibit B -3

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