Document:

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Exhibit 10.4      MATERIAL CONTRACTS

PRODUCTS SUPPLY AND DISTRIBUTION AGREEMENT (THE "AGREEMENT") DATED AS OF, APRIL
1, 2000, BY AND BETWEEN KYOCERA CORPORATION, A CORPORATION ORGANIZED UNDER THE
LAWS OF JAPAN, AND ITS SUBSIDIARIES ("KC"), AND AVX CORPORATION, A
DELAWARE CORPORATION, AND ITS SUBSIDIARIES, ("AVX").

WHEREAS KC is a manufacturer and supplier of certain KC Products, as defined
below, and desires that the KC Products be sold to customers located within the
AVX Territory, as defined below, and that AVX act as its non-exclusive
distributor for the KC Products within the AVX Territory;

WHEREAS AVX is a manufacturer and supplier of certain AVX Products, as defined
below, and desires that the AVX Products be sold to customers located within the
KC Territory, as defined below, and desires that KC act as its nonexclusive
distributor for the AVX Products within the KC Territory; and

WHEREAS KC desires to purchase the AVX Products for resale to customers within
the KC Territory and AVX desires to purchase the KC Products for resale to
customers within the AVX Territory.

NOW, THEREFORE, in consideration of the foregoing premises and in consideration
of the mutual covenants and conditions contained in the Agreement, the parties
hereto agree as follows:

ARTICLE I

DEFINITIONS

SECTION 1.01. DEFINED TERMS. As used herein, the following terms shall have the
meanings as set forth below:

"AVX PRODUCTS" shall mean the Products manufactured and supplied under AVX's
trademark and brand names listed in Schedule II attached hereto.

"AVX TERRITORY" shall mean the countries listed in Schedule I attached hereto,
in which AVX shall act as a distributor of the KC Products on the terms and
conditions herein described.

"DISTRIBUTOR" shall mean AVX, acting as a distributor of the KC Products in the
AVX Territory, or KC, acting as a distributor of the AVX Products in the KC
Territory, as the context so requires, on the terms and conditions herein
described.

"KC PRODUCTS" shall mean the Products manufactured and supplied under KC's
trademark and brand names listed in Schedule II attached hereto.

"KC TERRITORY" shall mean the countries listed in Schedule I attached hereto, in
which KC shall act as a distributor of the AVX Products on the terms and
conditions herein described.

"PRODUCTS" shall mean the AVX Products or the KC Products, as the context so
requires.

"PURCHASE PRICE" shall be determined from time to time by mutual agreement of
Supplier and Distributor.

"SUPPLIER" shall mean AVX, acting as manufacturer and supplier of the AVX
Products, or KC, acting as manufacturer and supplier of the KC Products, as the
context so requires, on the terms and conditions herein described.

"TERRITORY" shall mean the AVX Territory or the KC Territory, as the context so
requires.

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ARTICLE II

APPOINTMENT; ACCEPTANCE

SECTION 2.01. Supplier hereby appoints Distributor as its nonexclusive
distributor (with the right to appoint representatives and subdistributors) for
the Products within the Territory; provided, however, Supplier shall not appoint
any other person, business entity, distributor, or sales representative in the
Territory, or license any other party to manufacture or sell in the Territory,
without giving Distributor one year's advance written notice, unless a shorter
period is otherwise mutually agreed in writing.

SECTION 2.02. A manufacturing subsidiary developed outside the Territory by
Supplier may sell its manufactured products from that facility directly to
agreed customers within a limited territory, agreed to by both parties, outside
the Territory agreed by Distributor.

SECTION 2.03. Distributor hereby accepts the appointment made by Section 2.01
and agrees to use its best efforts to develop a market for the Products within
the Territory. The Distributor shall furnish to Supplier such reports and
information relating to this Agreement (including, but not limited to,
activities and products of competitors, possible new products, and future
customer requirements) which may be requested from time to time by Supplier or
which the Distributor shall become aware of during the term of this Agreement.
The Distributor shall keep Supplier informed about technological innovations or
improvements related to the manufacture or use of the Products. The Distributor
shall make available to Supplier annual and quarterly marketing reports of
Distributor regarding the Products.

SECTION 2.04. In the event two or more resellers/distributors contribute sales
activities in the same product sale transaction involving drop shipments or
order transfers, the Distributor who receives customer orders shall pay a
commission to the other reseller(s)/distributor(s) as its compensation under the
Split Commission Agreement.

SECTION 2.05. It is understood that Distributor is an independent contractor and
shall not have the right to assume or create any obligation of any kind, express
or implied, on behalf of Supplier, except as expressly provided for in this
Agreement. Nothing herein shall be deemed to establish or otherwise create a
relationship of principal and agent between Supplier and Distributor.

ARTICLE III

TERM AND TERMINATION

SECTION 3.01. The term of this Agreement shall be one year. Subject to Section
3.02 below, this Agreement shall be automatically renewed at the end of the
first year, and each succeeding year, for an additional year.

SECTION 3.02. This Agreement may be terminated by either party by written notice
to the other party given not less than three months prior to the expiration date
of the current term.

SECTION 3.03. Either party shall have the right to terminate this Agreement if:
(a) a judgment or decree is entered against the other party approving a petition
for an arrangement, liquidation, dissolution or similar relief relating to
bankruptcy or insolvency and such judgment or decree remains unvacated for 30
days; or (b) the other party shall file a voluntary petition relating to
bankruptcy, insolvency or other relief from debtors or shall seek to consent or
acquiesce in the appointment of any trustee, receiver or the liquidation of any
of such party's property.

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ARTICLE IV

DISTRIBUTOR'S RESPONSIBILITIES

SECTION 4.01. During the term of this Agreement, Distributor shall:

(a) use its best efforts to market, advertise and otherwise promote the sale and
distribution of Products to purchasers throughout the Territory;

(b) take all reasonable and necessary action to satisfy the demand for the
Products and applicable accessories throughout the Territory and attempt to
increase the demand for the Products by, among other things, servicing all
customer accounts with reasonable frequency and soliciting new customer
accounts;

(c) maintain adequate sales, warehouse and service facilities for the effective
distribution of Products;

(d) maintain an inventory of Products sufficient to meet the reasonably
anticipated purchase requirements of its customers;

(e) maintain an adequate staff of sales personnel who are trained in and capable
of the effective demonstration, use and sales of Products;

(f) make prompt payment of all Supplier invoices for Products in accordance with
Section 7.05;

(g) comply with all policies and programs of Supplier issued at any time in
connection with the Products;

(h) immediately forward to Supplier any information concerning all charges,
complaints or claims of damage relating to the performance or function of any of
the Products that may come to Distributor's attention; and

(i) assume all market, credit (i.e., bad debt) and inventory risks for Products
which are merchantable (i.e., suitable for sale).

SECTION 4.02. Distributor shall bear the cost of any taxes, levies, duties or
fees of any kind, nature or description whatsoever levied within the Territory
applicable to the purchase or resale of the products sold by Supplier to
Distributor.

SECTION 4.03. Distributor agrees and warrants that it has obtained and will
hereafter maintain in full force and effect all necessary business licenses,
sales permits and other authorizations required by law.

SECTION 4.04. The Distributor shall be authorized, from time to time and upon
terms and conditions mutually agreed upon by Distributor and Supplier, to accept
orders from customers in the Territory which provide for direct shipment of the
Products by Supplier to such customers.

ARTICLE V

SUPPLIER'S RESPONSIBILITIES

SECTION 5.01. Supplier shall be obligated to Distributor as follows:

(a) to provide, without charge, sales and technical information regarding
Products as Supplier deems reasonably necessary;

(b) to provide such samples of Products as Supplier deems reasonably necessary
and appropriate; and

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(c) to use best efforts to perfect the right to export into and sell Products
within the Territory, including export licenses, government approvals, and all
such other legal requirements related to product design, specifications and
safety standards.

SECTION 5.02. Except as provided in Section 4.04 of this Agreement, Distributor
shall buy and resell Products for its own account, and shall have complete
discretion and freedom to determine the prices, terms and conditions, and
customers for all resales of Products within the Territory.

SECTION 5.03. Neither party shall possess, nor shall either party hold itself
out to third persons as possessing, any power or authority to bind the other
party in any way.

SECTION 5.04. This Agreement is not intended to create, and should not be
construed as creating, any agency, joint venture, partnership, or
employer/employee relationship between Supplier and Distributor.

SECTION 5.05. Supplier shall bear the cost of any taxes, levies, duties or fees
of any kind, nature or description levied within the country of origin for
shipments of the Products by Supplier to Distributor.

SECTION 5.06. Should Supplier discontinue a Product or a product line, or cease
doing business, Supplier shall, at Distributor's option, repurchase all unsold
Product from the Distributor at a mutually agreed price. Distributor shall have
the right to cancel any unfilled purchase order backlog for such Products
without incurring any liability to Supplier.

SECTION 5.07. Supplier authorizes the use by the Distributor of its company
names, including, without limitation, brand names, trade names, trademarks, and
service marks, in connection with the transactions contemplated under this
Agreement.

SECTION 5.08. Supplier shall obtain from a reputable insurance carrier and
maintain in force during the term of this Agreement, and for a reasonable period
thereafter, commercially reasonably levels of product liability insurance in
connection with the manufacture and subsequent sale, distribution and use of the
Products in the Territory.

ARTICLE VI

DISCONTINUATION OF SALE OF PRODUCTS

SECTION 6.01. Supplier shall have the right at any time to effect changes in, or
discontinue the sale of, any of its Products without incurring any liability to
Distributor except as provided in Section 5.06; provided, however, that Supplier
shall use best efforts to provide Distributor with at least 90 days' prior
written notice of Product discontinuation. Distributor will make its best
efforts to sell or otherwise liquidate remaining inventory of Products.

ARTICLE VII

PURCHASE ORDER AND SHIPMENT

SECTION 7.01. Supplier shall have the right, in its sole and absolute
discretion, to reject any purchase order, in whole or in part, placed by
Distributor, and no purchase order shall be binding upon Supplier unless
accepted by Supplier in writing or by the delivery of Products in whole or in
partial fulfillment thereof. All purchase orders shall be governed by the
provisions of this Agreement.

SECTION 7.02. In the event that Supplier ships more than 14 days in advance of a
required shipping date, Distributor may postpone payment until the due date
applicable to the original shipping date. Any refusal of the customer to take
product due to late delivery is the responsibility of the Supplier, as long as
the customer's claim is according to the customer agreement which the Supplier
agrees with.

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SECTION 7.03. Supplier warrants that all Products shall conform to the
applicable specifications, drawings, samples, and descriptions set forth in this
Agreement and purchase orders issued hereunder.

SECTION 7.04 Payment terms shall be forty-nine days from the Bill of Exchange
date, interest free, provided, however, Supplier may agree to extend the payment
terms subject to Distributor's agreement to pay interest, at a rate to be
mutually determined by the-parties prior to the extension, for the payment
period exceeding 49 days. All Supplier invoices shall be paid in full without
any deductions or credits of any kind. Any requests for credit or deductions by
Distributor (e.g., for a shortage in shipment quantity, quality defects, or for
goods damaged in transit) shall be provided in the form of a separate invoice to
Supplier.

SECTION 7.05. Unless otherwise mutually agreed, all purchase transactions
between Supplier and Distributor shall be denominated in U.S. dollars.

SECTION 7.06. The parties acknowledge that the terms of any purchase order and
the transactions contemplated under this Agreement shall be equivalent to those
terms which an independent unrelated party would agree to at arm's-length and
are subject to the approval of the AVX Board of Directors (or the Special
Advisory Committee thereof).

ARTICLE VIII

SECTION 8.01. Supplier warrants that all Products sold hereunder shall meet
specifications mutually agreed upon between both parties. Supplier further
warrants that it has the right to transfer full-unencumbered title to all
Products sold hereunder. Distributor may extend to its customer only those
warranties set forth above. Supplier will take responsibility for all customer
warranty claims properly honored by Distributor under those warranties set forth
above. Distributor shall consult Supplier before honoring any customer warranty
claim.

SECTION 8.02. Distributor agrees that it will not make any representations,
warranties or guarantees in connection with the Products other than as
authorized by Supplier in Section 8.01 above.

SECTION 8.03. Distributor shall immediately advise Supplier of any claim for
damages or breach of warranty with respect to the Products asserted by a
customer of Distributor and shall cooperate with Supplier in the defense or
handling of such claims.

SECTION 8.04. Distributor shall promptly furnish Supplier with product samples
and any related information when a warranty claim is made by a customer of
Distributor.

ARTICLE IX

INDEMNIFICATION

SECTION 9.01. Supplier shall save, hold harmless and defend Distributor and its
affiliated companies from any costs, attorneys' fees, damages or penalties of
any kind on account of, or resulting from, any claim or action for infringement
of any existing or future patent, copyright, or trademark in the Territory or
any foreign country mutually agreed upon by both parties, or misappropriation of
any trade secret or other intellectual property right with respect to the
Products sold under this Agreement, where the infringement or misappropriation
arises from Supplier's Products. Supplier shall defend any such claim or action
at its own expense provided that Distributor promptly notifies Supplier upon
learning of any such claim or action. Notwithstanding the foregoing, it shall be
Distributor's obligation to save, hold harmless and defend Supplier where the
above claims or actions arise from or are attributable to, Distributor's
nonstandard specifications.

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ARTICLE X

MISCELLANEOUS

SECTION 10.01. ARBITRATION. All disputes, controversies, or differences which
may arise between the parties, out of or in relation to or in connection with
this Agreement, or breach thereof, shall be finally settled by arbitration
pursuant to the Japan-America Trade Arbitration Agreement of September 16, 1952,
by which each party hereto is bound. Such Arbitration shall be held in Osaka,
Japan if initiated by AVX and shall be held in South Carolina if initiated by
Kyocera.

SECTION 10.02. WAIVER. The failure of either party to enforce at any time any
provision of this Agreement or to require at any time performance by the other
party of any provision hereof will not be construed to be a present or future
waiver of such provisions or in any way affect the validity of this Agreement or
any provision hereof or the right of the other party thereafter to enforce each
and every such provision. One or more express waivers by either party of any
provision, condition or requirement of this Agreement will not constitute a
waiver of any future obligation to comply with such provision, condition or
requirement, unless so provided in a writing signed by the parties hereto.

SECTION 10.03. ENTIRE AGREEMENT; AMENDMENT. This Agreement constitutes the
complete and full understanding between the parties hereto with respect to the
subject matter hereof, and this Agreement supersedes all. prior and
contemporaneous agreements or understandings between the parties hereto relating
to the subject matter thereof. This Agreement may not be modified or amended
except with the written consent of both parties.

SECTION 10.04. ASSIGNMENT. This Agreement and the rights and obligations of a
party under this Agreement may not be assigned or transferred without the prior
written consent of the other party hereto.

SECTION 10.05. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which will constitute an original but all of which when
taken together will constitute but one instrument. Counterparts may be delivered
by facsimile.

SECTION 10.06. SEVERABILITY. If any provision or provisions hereof shall, to any
extent, be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby and will be valid and enforceable to the fullest
extent permitted by law.

SECTION 10.07. CAPTIONS. Captions contained in this Agreement are inserted as a
matter of convenience and do not define, limit, extend or describe the scope of
this Agreement or the intent of any provision.

SECTION 10.08. NOTICES. All notices or other communications required or
permitted to be given hereunder shall be in writing and shall be delivered by
hand or sent by prepaid telex, cable or telecopy, or sent, postage prepaid, by
registered, certified or express mail (return receipt requested) or reputable
overnight courier service, and shall be deemed given when so delivered by hand,
telexed cabled or telecopied, or if mailed, ten days after mailing (two business
days in the case of express mail or overnight courier service), as follows (or
at such other address for a party as may be specified by like notice):

KYOCERA CORPORATION
6 Takeda Tobadono-cho,
Fushimi-ku, Kyoto 612-8501, Japan

Attention: President

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AVX CORPORATION
17th Avenue South
Myrtle Beach, South Carolina 29577
U.S.A.

Attention: Chief Financial Officer

SECTION 10.09. NO THIRD PARTY BENEFICIARIES. AVX and KC agree that the
execution, delivery and performance of this Agreement are not intended to create
any contractual rights benefiting any third parties and that in the event of
breach or failure to perform by either party of its covenants or agreements
contained in this Agreement such party shall be liable only to the other party
hereto.

SECTION 10.10. GOVERNING LAW. This Agreement shall be governed and interpreted
in accordance with the internal laws of South Carolina applicable to agreements
made and to be performed entirely within such State, without regard to conflicts
of law principles.

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the date first written above.

KYOCERA CORPORATION,                          AVX CORPORATION,

by                                             by

  /s/ YASUO NISHIGUCHI                            /s/ BENEDICT P. ROSEN
  ------------------------                        ----------------------------
  Name: Yasuo Nishiguchi                          Name: Benedict P. Rosen
  Title: President                                Title: Chief Executive Officer

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SCHEDULE I

TERRITORY

"AVX Territory" for purposes of this Agreement shall be:

All territories (excluding Japan)(1)

"KC Territory" for purposes of this Agreement shall be:

Japan

--------------------------
(1)  In the case of electrical connectors, the AVX Territory shall mean all
     territories, excluding Japan and all worldwide affiliates of certain
     Japanese companies identified by KC.

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SCHEDULE II

PRODUCTS SUPPLY AND DISTRIBUTOR AGREEMENT

PRODUCT LIST

AVX PRODUCTS

Tantalum Capacitors
Ceramic Capacitors
Thin Films
Connectors
Ferrites
Films
Power Capacitors
Advanced Products
Any other products mutually agreed upon by AVX and KC.

KC PRODUCTS

Chip Capacitors
Timing Devices
Ceramic Piezo Products
Resistive Components
Hybrids
Print and Fire Substrate
Connectors
Any other products mutually agreed upon by KC and AVX.

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Exhibit 10.5      MATERIAL CONTRACTS

DISCLOSURE AND OPTION TO LICENSE AGREEMENT (THE "AGREEMENT") DATED AS OF APRIL
1, 2000, BY AND BETWEEN KYOCERA CORPORATION, A CORPORATION ORGANIZED UNDER THE
LAWS OF JAPAN ("KC"), AND AVX CORPORATION, A DELAWARE CORPORATION ("AVX")

WHEREAS KC is engaged in the development, manufacture and sale of multilayer
ceramic capacitors and various other ceramic products and possesses patents or
patent applications, know-how and other valuable confidential information as to
such developments, manufacture and products;

WHEREAS AVX is also engaged in the development, manufacture and sale of
multilayer ceramic capacitors and various other ceramic products and possesses
patents or patent applications, know-how and other valuable confidential
information as to such developments, manufacture and products; and

WHEREAS KC and AVX are each desirous of engaging in an exchange of their
respective valuable confidential information in order to promote the technical
progress of each of the companies.

NOW, THEREFORE, for and in consideration of the mutual promises and covenants
set forth herein, and other good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, the parties hereto hereby agree as
follows:

ARTICLE I

DEFINITIONS

The following terms shall have the following meanings for purposes of this
Agreement unless otherwise clearly required by the context:

SECTION 1.01. DISCLOSING PARTY. "Disclosing Party" shall mean the party hereto
that discloses Confidential Information to the other party as contemplated in
this Agreement.

SECTION 1.02. RECEIVING PARTY. "Receiving Party" shall mean the party hereto
that receives Confidential Information from the other party as contemplated in
this Agreement.

SECTION 1.03. CONFIDENTIAL INFORMATION. "Confidential Information" shall mean
all of the technical and other information, know-how and data (including without
limitation designs, drawings, manuals, procedures, techniques, processes,
methods, practices, specifications and the like) relating to the manufacture or
use of multilayer ceramic capacitors and various other technical ceramic
products. Confidential Information shall include all information and documents
marked "confidential," "proprietary" or by some similar designation and all
other information and documents not so marked, but which the Receiving Party
believes or reasonably should believe are confidential or proprietary
information of the Disclosing Party.

ARTICLE II

EXCHANGE OF CONFIDENTIAL INFORMATION

During the term of this Agreement, KC and AVX shall exchange Confidential
Information at such times, by such means and at such places as shall from time
to time be mutually agreed upon by KC and AVX.

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ARTICLE III

RESTRICTIONS ON DISCLOSURE OR USE OF CONFIDENTIAL INFORMATION

The Receiving Party acknowledges that the Confidential Information is a valuable
proprietary asset of the Disclosing Party. The Receiving Party acknowledges that
disclosure by the Disclosing Party to the Receiving Party of any of the
Confidential Information, whether written, oral or in any other form or medium,
is made in strictest confidence and solely for the limited purposes defined by
this Agreement. The Receiving Party agrees that:

(a) the Receiving Party shall not employ any of the Confidential Information of
the Disclosing Party in a product that is sold by the Receiving Party or in the
manufacture of such a product unless the Disclosing party agrees in writing to
such use, which the Disclosing Party may agree to in its sole discretion or may
only agree to pursuant to a royalty-bearing license agreement as provided for in
Article VI;

(b) the Receiving Party shall at all times use its best efforts to maintain the
Confidential Information as confidential and secret. The Receiving Party shall
at all times use at least the same degree of care to avoid unauthorized
disclosure, use or publication of any of the Confidential Information as it
employs and as a prudent business person would employ with respect to its own
confidential information;

(c) the Receiving Party may disclose the Confidential Information to its own
employees so long as the Receiving Party has determined prior to such disclosure
that disclosure to such employees is reasonably necessary, that such employees
are aware of the confidential nature of the Confidential Information and of the
obligation of the Receiving Party under this Agreement and that such employee is
by contract, or by local custom, enforceably obligated to maintain the
confidentiality of such information and is obligated to perform the obligations
of the Receiving Party set forth in this Agreement;

(d) the Receiving Party shall not disclose any of the Confidential Information
to any individual or entity outside of the Receiving Party without the prior
written consent of the Disclosing Party in each instance, which consent may be
withheld for any reason or for no reason and, if granted, may be granted on such
terms as the Disclosing Party may in its sole discretion establish from time to
time;

(e) the Receiving Party shall not any time use any of the Confidential
Information to provoke an interference with any patent application which the
Disclosing Party has filed or hereafter may file with respect to any products or
any of the Confidential Information or to amend any claim in any pending patent
application to expand the claim to read on, cover or dominate any invention
(whether or-not patentable) disclosed in the Confidential Information;

(f) the Confidential Information shall at all times remain the property of the
Disclosing Party and no license in such Confidential Information shall be
implied. Except as provided in Article VI below, the Receiving Party
acknowledges that it acquires no right, title or interest in or to any of the
Confidential Information by reason of the Disclosing Party's disclosure of any
of the Confidential Information under this Agreement; and

(g) immediately following each and every request by the Disclosing Party, the
Receiving Party shall return to the Disclosing Party all documents and materials
of any nature (and copies thereof) comprising the Confidential Information given
to or in the possession of the Receiving Party.

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ARTICLE IV

LIMITATION

The Receiving Party shall have no obligation with respect to any Confidential
Information which:

(a) is already known to the Receiving Party and with respect to which the
Receiving Party notifies the Disclosing Party within 30 days after disclosure
that such Confidential Information is already known to the Receiving Party;

(b) is or becomes publicly known through no wrongful act of the Receiving Party;

(c) is disclosed to the Receiving Party by a third person not in violation of
any obligation of nondisclosure owed to the Disclosing Party; or

(d) is approved for released by written authorization of the Disclosing Party.

The receiving Party has the burden of proving the existence of any of the above
exceptions. The Disclosing Party has the right to inspect the Receiving Party's
records to determine the source of any Confidential Information claimed to be
within any of the above exceptions.

ARTICLE V

ENFORCEMENT

In the event of any breach or threatened breach by the Receiving Party of any of
the provisions of Article III above, the Disclosing Party, in addition to any
other rights and remedies, shall, without the necessity of proving actual
damages or the posting of any bond or similar security, be entitled to temporary
and permanent injunctive relief to prevent such breach or threatened breach.

ARTICLE VI

LICENSE REQUEST

SECTION 6.01. REQUEST FOR LICENSE. At any time during the term of this
Agreement, the Receiving Party shall have the right to request a license from
the Disclosing Party as to any of the Confidential Information and the
applicable patents (if any) of the Disclosing Party relating thereto.

SECTION 6.02. EXERCISE OF OPTION. The request of the Receiving Party to license
such Confidential Information and applicable patents (if any) of the Disclosing
Party relating thereto shall be exercised by delivery to the Disclosing Party of
a written request specifying the Confidential Information and patents (if any)
relating thereto that the Receiving Party desires to license.

SECTION 6.03. TERMS OF LICENSE. Upon receiving such a request pursuant to
Section 6.02, the Disclosing Party may decline to license such Confidential
Information or it may elect to attempt to agree upon the terms and provisions of
such license, which may include, without limitation, a royalty rate and/or other
payment for the licensing of such Confidential Information and patents (if any);
provided, however, that such agreed upon rate and/or other payment shall be
equivalent to that which an independent unrelated party would agree to at
arm's-length. The parties acknowledge that the terms of any such license are
subject to the approval of the AVX Board of Directors (or the Special Advisory
Committee thereof). The agreed upon rate and/or other payment shall be

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documented and supported at the time of the agreement between the parties
hereto. In the event that the parties hereto are unable to agree upon a rate
and/or other payment, then no license will be granted.

ARTICLE VII

NO IMPLIED LICENSE

Except as provided in Article VI above, nothing contained herein shall be deemed
to constitute the grant by either party hereto to the other of any right, title,
interest or license in or to any confidential information, trademarks,
copyrights, trade secrets, patents, patent applications or other proprietary
rights.

ARTICLE VIII

TERM AND TERMINATION

SECTION 8.01. TERM. The term of this Agreement shall run for 5 years from April
1, 2000. This Agreement may be continued by the mutual agreement of the parties
for one year and for each one year thereafter, upon terms then negotiated. In
the event of the termination or expiration of the term of this Agreement, except
as otherwise provided in Section 6.03 of this Agreement, each party shall return
to the other party all documents and materials of any nature (and copies
thereof) comprising Confidential Information given to or in the possession of
such other party.

SECTION 8.02. TERMINATION. This Agreement may be terminated immediately at the
option of one party in case the other party becomes involved in receivership,
bankruptcy or insolvency proceedings or in the event of action by any government
which would render impossible performance of any obligations under this
Agreement by either party. In any case wherein a breach of any of the covenants
of this Agreement by either party is not remedied within a 90 day period, this
Agreement may be terminated if written notice of default without such 90 day
remedy is given by the other party in the manner provided in Section 9.08 of
this Agreement.

ARTICLE IX

MISCELLANEOUS

SECTION 9.01. ARBITRATION. All disputes, controversies, or differences which may
arise between the parties, out of or in relation to or in connection with this
Agreement, or breach thereof, shall be finally settled by arbitration pursuant
to the Japan-America Trade Arbitration Agreement of September 16, 1952, by which
each party hereto is bound. Such Arbitration shall be held in Osaka, Japan if
initiated by AVX and shall be held in South Carolina if initiated by Kyocera.

SECTION 9.02. WAIVER. The failure of either party to enforce at any time any
provision of this Agreement or to require at any time performance by the other
party of any provision hereof will not be construed to be a present or future
waiver of such provisions or in any way affect the validity of this Agreement or
any provision hereof or the right of the other party thereafter to enforce each
and every such provision. One or more express waivers by either party of any
provision, condition or requirement of this Agreement will not constitute a
waiver of any future obligation to comply with such provision, condition or
requirement, unless so provided in a writing signed by the parties hereto.

SECTION 9.03. ENTIRE AGREEMENT; AMENDMENT. This Agreement constitutes the
complete and full understanding between the parties hereto with respect to the
subject matter hereof, and this Agreement supersedes all prior and
contemporaneous agreements or understandings between the parties hereto relating
to the subject matter thereof. This Agreement may not be modified or amended
except with the written consent of both parties.

                                       4
<PAGE>   5

SECTION 9.04. ASSIGNMENT. This Agreement and the rights and obligations of a
party under this Agreement may not be assigned or transferred without the prior
written consent of the other party hereto.

SECTION 9.05. COUNTERPARTS. This Agreement may be executed in two or more
counterparts, each of which will constitute an original but all of which when
taken together will constitute but one instrument. Counterparts may be delivered
by facsimile.

SECTION 9.06. SEVERABILITY. If any provision or provisions hereof shall, to any
extent, be invalid, illegal or unenforceable, the validity, legality and
enforceability of the remaining provisions hereof shall not in any way be
affected or impaired thereby and will be valid and enforceable to the fullest
extent permitted by law.

SECTION 9.07. CAPTIONS. Captions contained in this Agreement are inserted as a
matter of convenience and do not define, limit, extend or describe the scope of
this Agreement or the intent of any provision.

SECTION 9.08. NOTICES. All notices or other communications required or permitted
to be given hereunder shall be in writing and shall be delivered by hand or sent
by prepaid telex, cable or telecopy, or sent, postage prepaid, by registered,
certified or express mail (return receipt requested) or reputable overnight
courier service, and shall be deemed given when so delivered by hand, telexed
cabled or telecopied, or if mailed, ten days after mailing (two business days in
the case of express mail or overnight courier service), as follows (or at such
other address for a party as may be specified by like notice):

KYOCERA CORPORATION
6 Takeda Tobadono-cho,
Fushimi-ku, Kyoto 612-8501, Japan

Attention: President

AVX CORPORATION
17th Avenue South
Myrtle Beach, South Carolina 29577
U.S.A.

 Attention:   Chief Financial Officer

SECTION 9.09. NO THIRD PARTY BENEFICIARIES. AVX and KC agree that the execution,
delivery and performance of this Agreement are not intended to create any
contractual rights benefiting any third parties and that in the event of breach
or failure to perform by either party of its covenants or agreements contained
in this Agreement such party shall be liable only to the other party hereto.

SECTION 9.10. GOVERNING LAW. This Agreement shall be governed and interpreted in
accordance with the internal laws of South Carolina applicable to agreements
made and to be performed entirely within such State, without regard to conflicts
of law principles.

IN WITNESS WHEREOF, the parties have caused this Agreement to be duly executed
as of the date first written above.

KYOCERA CORPORATION,                           AVX CORPORATION

by                                         by

  /s/ YASUO NISHIGUCHI                         /s/ BENEDICT P. ROSEN
  --------------------------------             --------------------------
  Name: Yasuo Nishiguchi                       Name: Benedict P. Rosen
  Title: President                             Title: Chief Executive Officer

                                       5

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