Document:

SPLS EX 10.2 050413

Exhibit 10.2

Staples, Inc.
Employer ID: 04-2896127
500 Staples Drive
Framingham, MA 01702
«FirstName» «LastName»     EMPLOYEE ID:    
«Address1»    LOCATION:    
«Address2»
«City», «State»  «Zip»    
«Country»

Staples, Inc. (“Staples”) hereby awards to the recipient named above (the “Recipient”) the right to earn a number of shares of Common Stock of Staples determined in the manner set forth below (the “Shares”), in accordance with and subject to the terms, conditions, and restrictions of this Agreement (as defined below) and the Staples' Amended and Restated 2004 Stock Incentive Plan, as further amended or restated from time to time (the “Plan”). If the conditions described below are satisfied, the Shares will be issued on the March 2016 Board Meeting Date (as defined in Section 2(b) of the PSA Terms attached hereto).

Date of Agreement:                                [__________]
Performance Cycle:                         FY 2013 - FY2015     
Dollar Value of Shares at Target                            [__________]
March 2016 Board Meeting Date:                            See Section 2(b) of the PSA Terms

By your acceptance of this Performance Share Award Agreement (“PSA”), you agree that any Shares will be awarded under and governed by the terms and conditions of the Plan, the PSA and the Performance Share Award Agreement  - Terms and Conditions (“PSA Terms”), which is attached hereto (this PSA and the PSA Terms are together referred to as the “Agreement”).

Calculation of Dollar Value and Number of Shares Earned.  As more fully described in the PSA Terms, the dollar value of the Shares issued on the March 2016 Board Meeting Date shall be determined based on the product of (i) the Performance Objective Payout Amount (set forth below) determined based on the cumulative level of achievement of Sales Growth (“Sales Growth”) and Return on Net Assets Percentage (“RONA%” and, together with Sales Growth, the “Performance Objectives”), which will be established for each fiscal year of the three-year Performance Cycle and (ii) a total shareholder return multiplier (the “TSR Multiplier”) determined based on a comparison of Staples TSR (as defined below) over the three-year Performance Cycle against the TSR for the S&P 500 for such period.  The number of Shares issued on the March 2016 Board Meeting Date shall be the dollar value of such Shares determined based on the formula set forth in the preceding sentence divided by the closing price of the Common Stock on the March 2016 Board Meeting Date, with any fractional share rounded down to the nearest whole share.  The Shares, if any, issued to the Recipient on the March 2016 Board Meeting Date shall fully vested one day following the date of  issuance.  The determination of the dollar value and number of the Shares, if any, to be issued pursuant to this Agreement requires certification of the Staples Compensation Committee and the Staples Board of Directors at the end of the Performance Cycle as to the Performance Objectives Payout Amount and the TSR Multiplier. 
 
Performance Objective Payout Amount. The “Performance Objective Payout Amount” for purposes of calculating the dollar value and number of Shares earned pursuant to this Agreement shall be equal to the sum of the “Payout Amount” determined for each of the three fiscal years within the Performance Cycle.  The “Payout Amount” for each fiscal year shall be equal to the product of (i) 33.33%, for each of 2013 and 2014, and 33.34% for 2015, and (ii) the Dollar Value of Shares at Target (set forth above) and (iii) the “Payout Factor” for such fiscal year determined based on the level of achievement of Sales Growth and RONA% for such fiscal year.  Each Performance Objective shall be weighted 50% for purposes of determining the Payout Factor.  The Performance Objectives for 2013, the first year of the Performance Cycle, and the associated Payout Factor for 2013 based on achievement of those objectives, are set forth below.  The Performance Objectives for each of 2014 and 2015 shall be established in writing by the Compensation Committee within the first 90 days of each respective fiscal year.  

FY 2013Performance Objectives.  

	
			
	

FY 2013 RONA% and Sales Growth
 Performance Objectives

	RONA%
	Sales Growth
	Payout Factor

	 
	 
	25%

	 
	 
	50%

	 
	 
	75%

	 
	 
	100%

	 
	 
	125%

	 
	 
	150%

	 
	 
	200%

In measuring the achievement of the Performance Objectives for any fiscal year within the Performance Cycle and calculating the related Payout Factor for any fiscal year within the Performance Cycle, achievement will be linearly interpolated between the percentages set forth above based on actual results as determined and certified by the Committee.

    
TSR Multiplier.     The TSR Multiplier shall be (i) +25% if the three-year Staples TSR is in the top one- third of the S&P 500 TSR, (ii) -25% of the three year Staples TSR is in the bottom one-third of the S&P 500 TSR  and (iii) shall otherwise be 0%.  In each case, TSR shall be calculated over the three-year period of the Performance Cycle.    

	
		
	Accepted by:
	Staples, Inc.

	

______________________
«FirstName» «LastName»
	

Ronald L. Sargent
Chairman and Chief Executive Officer

PERFORMANCE SHARE AWARD AGREEMENT - Terms and Conditions

1.Award.  If all the conditions set forth in this Agreement are satisfied, on the March 2016 Board Meeting Date an award of Shares will be issued under the Plan to the Recipient named in the accompanying PSA.  No Shares will be delivered to the Recipient until the March 2016 Board Meeting Date, if at all, (except as provided in Section 7), and the Recipient shall have no rights to any Shares or any rights associated with such Shares (such as dividend or voting rights) until the March 2016 Board Meeting Date, if at all.  Except where the context otherwise requires, the term "Staples" shall include any parent and all present and future subsidiaries of Staples as defined in Sections 424(e) and 424(f) of the Internal Revenue Code of 1986, as amended or replaced from time to time (the "Code").  Capitalized terms used but not defined herein shall have the meaning ascribed to them in the PSA.

2.Conditions for the Award.  Except as provided in Sections 3 and 7, an issuance of Shares on the March 2016 Board Meeting Date shall be made only if:      

(a)    The Recipient is, and has continuously been, an employee of, or a consultant to, Staples (or any Surviving Corporation (as defined below)) beginning with the date of this Agreement and continuing through the March 2016 Board Meeting Date; and
(b)    The Performance Objectives during the Performance Cycle are achieved and the TSR Multiplier is achieved and applied.  The Committee must determine and certify on the date of its first regularly scheduled meeting following the end of the Performance Cycle (generally in March) whether, and to what extent, the Performance Objectives have been achieved and  the TSR Multiplier has been achieved, and then make a recommendation to the Board of Directors with respect to such determinations.  The Board of Directors, upon recommendation of the Committee, must then determine and certify on the date of its first regularly scheduled meeting following the end of the Performance Cycle (generally in March) whether, and to what extent, the Performance Objectives have been achieved and the TSR Multiplier has been achieved.  The date on which the Board of Directors certifies that the Performance Objectives have been achieved and certifies that the TSR Multiplier has been achieved shall be the “March 2016 Board Meeting Date” for purposes of this Agreement.  
To determine the number of Shares to be awarded for a Performance Cycle, the Committee shall apply the formula set forth under the heading Calculation of Dollar Value and Number of Shares Earned on the PSA that forms a part of this Agreement (subject to the other provisions of this Agreement, including Section 2(a), Section 3, Section 7 and Section 8).  In making its determination, the Committee shall adjust the Performance Objectives and TSR Multiplier to take into account accounting changes, acquisitions and divestitures and related charges, other special one-time or extraordinary gains and/or losses and other one-time or extraordinary events to the extent permitted under the Plan; provided that the Committee may not adjust the Performance Objectives or TSR Multiplier to take into account foreign currency exchange rate fluctuations, changes in corporate tax rates or recurring store closures consistent with historic patterns (with widespread, out of the ordinary store closures not being consistent with historic patterns).  In measuring the achievement of Performance Objectives for any fiscal year within a Performance Cycle and calculating the related Performance Objective Payout Factor at the end of the Performance Cycle, achievement will be linearly interpolated between the percentages set forth in the PSA based upon actual results as determined and certified by the Committee. 
		
	3.
	Employment Events Affecting Payment of Award.  

(a)    Except as provided in Section 3(b) and in Section 7, and subject to Section 8, if the Recipient is terminated by Staples other than for Cause (as defined below) or the Recipient Retires, in each case on or prior to the March 2016 Board Meeting Date, then the Recipient will nevertheless be issued on the March 2016 Board Meeting Date a number of Shares determined under Section 2(b) based on the product of (i) the sum of the Payout Amounts for the completed fiscal years within the Performance Cycle during which the Recipient was employed by Staples and, for partial fiscal years during which the Recipient was employed by Staples, a pro rata portion of the Payout Amounts for such fiscal year based on the days which the Recipient was employed by Staples, and (ii) the TSR Multiplier.  For purposes of this Agreement, “Retire” shall mean the Recipient terminates employment with the Company after attaining 

age 55 and at the time of such termination of employment the sum of the years of service (as determined by the Staples Board of Directors) completed by the Recipient plus the Recipient's age is greater than or equal to 65.
(b)    If the Recipient (i) dies or (ii) becomes disabled (within the meaning of Section 22(e)(3) of the Internal Revenue Code), in each case on or prior to the March 2016 Board Meeting Date, then the Recipient or his estate will nevertheless be issued on the March 2016 Board Meeting Date the number of Shares determined under Section 2(b) hereof as if the Recipient were still employed on the March 2016 Board Meeting Date.  
(c)    If the Recipient's relationship with Staples is terminated by Staples for Cause on or prior to the March 2016 Board Meeting Date no Shares will vest and this Agreement will be of no further force or effect as of the date of the termination of such relationship.  
(d)    Shares will be issued to the Recipient solely on account of the attainment of the Performance Objectives and application of the TSR Multiplier.  Accordingly, no Shares will be issued to the Recipient if the Recipient's employment with Staples or an Affiliate is terminated as set forth in Section 3(a) or Section 3(b) unless the Committee determines that the Performance Objectives Payout Amount and the TSR Multiplier, calculated in a manner set forth in this Agreement, result in the issuance of Shares hereunder, and the Committee authorizes the issuance of Shares as described in Section 2(b).
4.Delivery of Shares.  Staples shall, within 30 days of the March 2016 Board Meeting Date (or, if applicable, the date set forth in Section 7), effect the issuance of any Shares earned hereunder by delivering the Shares to a broker designated by the Recipient.  

5.No Special Employment or Similar Rights.  Nothing contained in the Plan or this Agreement shall be construed or deemed by any person under any circumstances to bind Staples to continue the employment or other relationship of the Recipient with Staples for the period prior to or after the March 2016 Board Meeting Date. 

		
	6.
	       Adjustment Provisions.

(a) Liquidation or Dissolution.  In the event of a liquidation or dissolution of Staples, this Agreement shall be of no further force or effect and no Shares shall be awarded hereunder, provided that if such liquidation or dissolution also constitutes a Change in Control as defined in Section 7(a) hereof, then the provisions of Section 7 and not the provisions of this Section 6(a) shall govern.
(b) Reorganization Event.  In the event of a Reorganization Event as defined in Section 9(c)(1) of the Plan, the Recipient shall, with respect to the Shares, be entitled to the rights and benefits, and be subject to the limitations, set forth in Section 9(c) of the Plan; provided that if such Reorganization Event also constitutes a Change in Control as defined in Section 7(a) hereof, then the provisions of Section 7 and not the provisions of this Section 6(b) shall govern.
(c)  Board Authority to Make Adjustments.  Any adjustments under this Section 6 will be made by the Board of Directors, whose determination as to what adjustments, if any, will be made and the extent thereof will be final, binding and conclusive.  No fractional shares will be issued with respect to Shares on account of any such adjustments.
		
	7.
	 Change in Control.  

(a)  Definitions.  For purposes of this Agreement, the following terms shall have the following meanings:  
(i)  A "Change in Control" shall be deemed to have occurred if (A) any "person", as such term is used in Sections 13(d) and 14(d) of the Securities Exchange Act of 1934 (the "Exchange Act") (other than Staples, any trustee or other fiduciary holding securities under an employee benefit plan of Staples, or any corporation owned directly or indirectly by the stockholders of Staples in substantially the same proportion as their ownership of stock of Staples), is or becomes the "beneficial owner" (as defined in Rule 13d-3 under the Exchange Act), directly or indirectly, of securities of Staples representing 30% or more of the combined voting power of Staples' then outstanding securities (other than pursuant to a merger or consolidation described in clause (1) or (2) of subsection (C) below); (B) individuals who, as of the date hereof, constitute the Board of Directors of Staples (as of the date hereof, the "Incumbent Board") cease for any reason to constitute at least a majority of the Board of Directors, provided that any person becoming a director subsequent to the date hereof whose election, or nomination for election by Staples' 

stockholders, was approved by a vote of at least a majority of the directors then comprising the Incumbent Board (other than an election or nomination of an individual whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of the directors of Staples, as such terms are used in Rule 14a-11 of Regulation 14A under the Exchange Act) shall be, for purposes of this Agreement, considered as though such person were a member of the Incumbent Board; (C) the stockholders of Staples approve a merger or consolidation of Staples with any other corporation, and such merger or consolidation is consummated, other than (1) a merger or consolidation which would result in the voting securities of Staples outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by being converted into voting securities of the surviving entity) more than 75% of the combined voting power of the voting securities of Staples or such surviving entity outstanding immediately after such merger or consolidation, or (2) a merger or consolidation effected to implement a recapitalization of Staples (or similar transaction) in which no "person" (as defined above) acquires more than 30% of the combined voting power of Staples' then outstanding securities; or (D) the stockholders of Staples approve an agreement for the sale or disposition by Staples of all or substantially all of Staples' assets, and such sale or disposition is consummated. 
(ii) "Surviving Corporation" shall mean (x) in the case of a Change in Control pursuant to clause (A) or clause (B) of Section 7(a)(i), Staples; (y) in the case of a Change in Control pursuant to clause (C) of Section 7(a)(i), the surviving or resulting corporation in such merger or consolidation; and (z) in the case of a Change in Control pursuant to Clause (D) of Section 7(a)(i), the entity acquiring the majority of the assets being sold or disposed of by Staples. 
(b) Effect of Change in Control. Notwithstanding the provisions of Section 2, if (i) a Change in Control of Staples occurs after the date of this Agreement and (ii) within one year following the closing of the Change in Control, but on or prior to the March 2016 Board Meeting Date, the employment of the Recipient is terminated by the Company without Cause (as defined in Section 8(c) hereof) or the Recipient terminates employment with the Company for Good Reason (as defined below), then the greater of (X) a number of Shares equal to the Dollar Value at Target or (Y) the number of Shares determined to be issuable under Section 2(b) of this Agreement will be issued to the Recipient.  Any Shares issued pursuant to this Section 7 shall be issued (A) within 10 days following the date of termination of employment of the Recipient, provided that the Change in Control qualifies as a “change in control event” within the meaning of Treasury Regulation Section 1.409A-3(i)(5)(i) or (b) on the March 2016 Board Meeting Date if the Change in Control does not so qualify.
For purposes of this Agreement, “Good Reason” shall mean (i) a material diminution in the duties, authority and responsibilities of the Recipient, (ii) a material reduction in the Recipient's base compensation or (iii) the relocation of the Recipient's principal place of employment by more than an additional 50 miles from his or her primary residence as of the closing of the Change in Control.  In order to terminated on account of Good Reason, (i) the Recipient must provide notice to the Company within 60 days of the event triggering Good Reason, (ii) the Company must have 30 days following the receipt of such notice to cure such event and (iii) the Recipient must actually terminate employment with the Company within six months following the date of the notice.
		
	8.
	Forfeiture and Recovery for Misconduct

(a)    Right of Recovery.
Notwithstanding any other provision of the Plan or this Agreement to the contrary, if the Board of Directors of Staples (or its authorized designee, the “Board”) determines during the Recovery Period (as defined in this Section 8(a) below) that a Recipient has engaged in any of the conduct set forth in clauses (ii) through (v) of Section 8(c) (which determination shall be conclusive, “Misconduct”), the Board, subject to the limitations set forth in this Section 8, may in its sole discretion (1) terminate such Recipient's participation in the Plan and/or (2) treat any right to earn Shares pursuant to this Agreement and the Plan as forfeited, and/or (3) demand that the Recipient pay in cash or transfer in Shares the amount described in Section 8(b); provided, however, that in the event the Board determines during the Recovery Period that the Recipient engaged in Misconduct as described in clause (v) of Section 8(c) (“Restatement Misconduct”), the Board shall in all circumstances, in addition to any other recovery action taken, require forfeiture and demand repayment pursuant hereto.
“Recovery Period” means (1) if the Misconduct relates to Restatement Misconduct, or the Misconduct consists of acts or omissions relating to Staples' financial matters that in the discretion of the Board are reasonably unlikely to be discovered prior to the end of the fiscal year in which the Misconduct occurred and the completion of the outside 

audit of Staples' annual financial statements, the period during which the Recipient is employed by Staples and the period ending 18 months after the Recipient's last day of employment; (2) if the Misconduct relates to the breach of any agreement between the Recipient and Staples, the term of the agreement and the period ending six months following the expiration of the agreement, and (3) in all other cases, the period during which the Recipient is employed by Staples and the period ending six months after the Recipient's last day of employment.  If during the Recovery Period the Board gives written notice to the Recipient of potential Misconduct, the Recovery Period shall be extended for such reasonable time as the Board may specify is appropriate for it to make a final determination of Misconduct and seek enforcement of any of its remedies described above.  Staples' rights pursuant to this Section 8 shall terminate on the effective date of a Change in Control and no Recovery Period shall extend beyond that date except with respect to any Recipient for which the Board prior to such Change in Control gave written notice to such Recipient of potential Misconduct.
For purposes of administratively enforcing its rights under this Section 8, during any period for which potential Misconduct has been identified by Staples, the Board may (1) suspend such Recipient's participation in the Plan, or with respect to any award under the Plan, or (2) temporarily withhold, in whole or in part, the award of any Shares pursuant to this Agreement and the vesting of any award or the transfer of any shares relating to any award made under the Plan.
 (b)    Amount of Recovery.
With respect to Misconduct described in Section 8(c)(ii) (breach of agreement) and Section 8(c)(iii) (violation of Code of Ethics), and in addition to Staples' right to effect a termination of participation and a forfeiture of any right to earn Shares under this Agreement and  the Plan, at the Board's discretion, vested Shares shall be deemed repurchased by Staples at a repurchase price of zero and ownership of all right, title and interest in and to the Shares shall be forfeited and revert to Staples as of the date of such termination; or, if the Recipient at such time no longer owns such Shares, Staples shall be entitled to recover from the Recipient the gross profit earned by the Recipient upon the disposition (whether by sale, gift, donation or otherwise) of such Shares.
With respect to Misconduct described in Section 8(c)(iv) (intentional deceitful acts), and in addition to Staples' right to effect a termination of participation and a forfeiture of outstanding awards and the Recipient's right to earn Shares under this Agreement and the Plan, the Board may recover from the Recipient the amount (in cash or Shares) determined by the Board in its sole discretion to represent the financial impact of the Misconduct upon Staples; provided, however, that such recovery amount shall be reduced by the value of any forfeited outstanding awards under this Agreement (value to be determined by the Dollar Value at Target for any such forfeited outstanding awards and the issuance date fair market value of any forfeited Shares) and any amounts recovered from the Recipient under Staples' cash bonus plans and other short term or long term incentive plans as a result of such Misconduct.
With respect to Restatement Misconduct, and in addition to Staples' right to effect a termination of participation and a forfeiture of outstanding awards and right to earn Shares under this Agreement and the Plan, vested Shares that were the subject of an award with a Performance Cycle that includes any portion of a fiscal year that is the subject of an accounting restatement shall be deemed repurchased by Staples at a repurchase price of zero and ownership of all right, title and interest in and to such Shares shall be forfeited and revert to Staples as of the date of such termination; or, if the Recipient at such time no longer owns such Shares, Staples shall be entitled to recover from the Recipient (1) the gross profit earned by the Recipient upon the disposition (whether by sale, gift, donation or otherwise) of such Shares and (2) the gross profit earned by the Recipient upon the disposition (whether by sale, gift, donation or otherwise) of any securities of Staples during the twenty-four (24) month period following the first public issuance of the financial statements that ate the subject of an accounting restatement.
The term “recover” or “recovered” shall include, but shall not be limited to, any right of set-off, reduction, recoupment, off-set, forfeiture, or other attempt by Staples to withhold or claim payment of an award or any proceeds thereof (including any proceeds from the sale or other disposition of Shares).  For purposes of any recovery of Shares, Staples may treat Shares as fungible and shall not be required to identify, trace, or recover specific Shares.  Staples' right of forfeiture and recovery of awards shall not limit any other right or remedy available to Staples for an Recipient's Misconduct, whether in law or equity, including but not limited to injunctive relief, terminating the Recipient's employment with Staples, or taking other legal action against the Recipient.

The amount that may be recovered under this Section 8 shall be determined on a gross basis without reduction for taxes paid or payable by a Recipient.
(c) Definition of Cause.  "Cause," as determined by Staples (or any successor) (which determination shall be conclusive), shall mean: 
(i)     Willful failure by the Recipient to substantially perform his or her duties with Staples (other than any failure resulting from incapacity due to physical or mental illness); provided, however, that Staples has given the Recipient a written demand for substantial performance, which specifically identifies the areas in which the Recipient's performance is substandard, and the Recipient has not cured such failure within 30 days after delivery of the demand.  No act or failure to act on the Recipient's part will be deemed “willful” unless the Recipient acted or failed to act without a good faith or reasonable belief that his or her conduct was in Staples' best interest; or
(ii)    Breach by the Recipient of any provision of any employment, consulting, advisory, proprietary information, non-disclosure, non-competition, non-solicitation or other similar agreement between the Recipient and Staples, including, without limitation, the Proprietary and Confidential Information Agreement and/or the Non-Compete and Non-Solicitation Agreement; or
(iii)    Violation by the Recipient of the Code of Ethics; or
(iv)    The Recipient's engagement in intentional deceitful act(s) that results in (1) an improper personal benefit, or (2) injury to Staples; or
(v)    The Recipient's engagement in fraud or willful misconduct (not acting in good faith or with reasonable belief that conduct was in the best interests of Staples) that significantly contributes to Staples preparing a material financial restatement, other than a restatement of financial statements that became materially inaccurate because of revisions to generally accepted accounting principles; or
(vi)    Failure by the Recipient to devote his or her full working time to the affairs of Staples except as may be authorized in writing by Staples' CEO or other authorized Staples official; or
(vii)    The Recipient's engagement in business other than the business of Staples except as may be authorized in writing by Staples' CEO or other authorized Staples official; or
(viii)    The Recipient's engagement in misconduct, which is demonstrably and materially injurious to Staples.
For purposes of the definition of Cause contained in Section 8(c)) regarding forfeiture and recovery for Misconduct, any reference therein to Staples (other than with respect to defining the Board of Directors) shall also include any entity that Staples directly or indirectly controls.
9.Withholding Taxes.  Staples' obligation to deliver the Shares shall be subject to the Recipient's satisfaction of all applicable federal, state and local income and employment tax withholding requirements.  Staples may deduct any such tax obligations from any payment of any kind otherwise due to the Recipient, including salary and bonus payments, and may withhold or sell a sufficient number of Shares on behalf of the Recipient to satisfy such tax obligations.  Subject to Staples' prior approval, which may be withheld in its sole discretion, the Recipient may elect to satisfy such tax withholding obligations (i) by causing Staples to withhold Shares or (ii) by delivering to Staples shares of Common Stock already owned by the Recipient.

10.Transferability.  This Agreement may not be sold, assigned, transferred, pledged, hypothecated or otherwise disposed of (whether by operation of law or otherwise) (collectively, a “transfer”) by the Recipient, except that this Agreement may be transferred by the laws of descent and distribution.  The Recipient may only transfer Shares that may be issued pursuant to this Agreement following a Vesting Date.  

		
	11.
	      Miscellaneous.  

(a)  Except as provided herein, this Agreement may not be amended or otherwise modified unless evidenced in writing and signed by Staples and the Recipient unless the Board of Directors determines that the 

amendment or modification, taking into account any related action, would not materially and adversely affect the Recipient.
(b)  All notices under this Agreement shall be mailed or delivered by hand to Staples at its main office, Attn: Secretary, and to the Recipient to his or her last known address on the employment records of Staples or at such other address as may be designated in writing by either of the parties to one another.
(c)  This Agreement shall be governed by and construed in accordance with the laws of the State of Delaware.Exhibit 10.17 Stock Option Plan 2014

		
			EXHIBIT 10.17
		

		
			 
		

		
			AVX CORPORATION
		

		
			2014 STOCK OPTION PLAN
		

		
			 
		

		
			 
		

		
			1.  Adoption and Purpose.  The Company hereby adopts this Plan providing for the granting of stock options to selected employees of the Company and its Subsidiaries.  The general purpose of the Plan is to promote the interests of the Company and its Subsidiaries by providing to their employees incentives to continue and increase their efforts with respect to, and remain in the employ of, the Company and its Subsidiaries.
		

		
			 
		

		
			Options granted under the Plan may be "incentive stock options" within the meaning of Section 422 of the Code or "nonqualified stock options", and the specific type of option granted shall be designated by the Committee upon grant.
		

		
			 
		

		
			2.  Administration.  The Plan will be administered by the Compensation Committee of the Board of Directors (the "Committee"), or, at the discretion of the Board from time to time, the Plan may be administered by the Board.  It is intended that at least two of the directors appointed to serve on the Committee shall qualify as (a) "outside directors" within the meaning of Section 162(m) of the Code and the regulations thereunder and (b) "Non-Employee Directors" within the meaning of Rule 16b-3(b)(3)(i) promulgated under the Exchange Act and that any such members of the Committee who do not so qualify shall abstain from participating in any decision to make or administer stock options that are made to participants who at the time of consideration for such stock option are, or who are anticipated to become, either (i) a "covered employee", as defined in Code Section 162(m)(3) or (ii) a person subject to the short-swing profit rules of Section 16 of the Exchange Act.  However, the mere fact that a Committee member shall fail to qualify under either of the foregoing requirements or shall fail to abstain from such action shall not invalidate any award made by the Committee which award is otherwise validly made under the Plan.  To the extent the Board has reserved any authority and responsibility or during any time that the Board is acting as administrator of the Plan, it shall have all the powers of the Committee hereunder, and any reference herein to the Committee (other than in this Section 2) shall include the Board.  
		

		
			 
		

		
			Subject to the express provisions of the Plan, the Committee shall have plenary authority, in its discretion, to administer the Plan and to exercise all powers and authority either specifically granted to it under the Plan or necessary and advisable in the administration of the Plan, including without limitation the authority to interpret the Plan; to prescribe, amend and rescind rules and regulations relating to the Plan; to determine the terms of all options granted under the Plan (which need not be identical), the purchase price of the shares covered by each option, the individuals to whom and the time or times at which options shall be granted, whether an option shall be an incentive stock option or a nonqualified stock option, when an option can be exercised and whether in whole or in installments, and the number of shares covered by each option; and to make all other necessary or advisable determinations with respect to the Plan.  The determination of the Committee on such matters shall be conclusive.
		

		
			 
		

		

		

		 

		

			1

		

		

			 

		

 

		The Plan shall be governed by and construed in accordance with the laws of Delaware. To the extent permitted under Delaware law, the Board or the Committee may expressly delegate to any individual or group of individuals some or all of the Committee's authority to grant awards under this Plan, except that no delegation of its duties and responsibilities may be made with respect to awards to any participant who is, or who is anticipated to be become, either (i) a "covered employee", as defined in Code Section 162(m)(3) or (ii) a person subject to the short-swing profit rules of Section 16 of the Exchange Act.  The acts of such delegates shall be treated hereunder as acts of the Committee, and such delegates shall report to the Committee regarding the delegated duties and responsibilities.
		

		
			 
		

		
			3.  Participants.  The Committee shall from time to time select the Corporate Officers and key employees of the Company and its Subsidiaries to whom options are to be granted, and who will, upon such grant, become participants in the Plan.
		

		
			 
		

		
			4.  Shares Subject to Plan.  The Committee may not grant options under the Plan for more than 10,000,000 shares of Common Stock, subject to any adjustment as provided in Section 13 hereof.  Shares to be optioned and sold may be made available from either authorized but unissued Common Stock, Common Stock held by the Company in its treasury, or Common Stock purchased on the open market.  Shares that by reason of the expiration of an option or otherwise are no longer subject to purchase pursuant to an option granted under the Plan will again be available for issuance under the Plan.
		

		
			 
		

		
			5.  Limitation on Number of Options.  The aggregate Fair Market Value (determined as of the time an incentive stock option is granted) of the stock with respect to which incentive stock options granted to an employee under the Plan are exercisable for the first time during any calendar year may not exceed $100,000, or such limit as may be amended in the Code.  To the extent that this dollar limitation is exceeded, the excess options shall be deemed to be non-qualified stock options.  
		

		
			 
		

		
			Notwithstanding any provision in the Plan to the contrary (but subject to adjustment as provided in Section 13), the maximum number of shares of Common Stock with respect to one or more options that may be granted during any one calendar year under the Plan to any one participant shall be 1,000,000.
		

		
			 
		

		
			6.  Grant of Options.  All options under the Plan shall be granted by the Committee or such person delegated by the Committee pursuant to Section 2.  The Committee or such delegate shall determine the number of shares of Common Stock to be offered from time to time by grant of options to employees who are participants of the Plan (it being understood that more than one option may be granted to the same employee).  Notification of the grant of an option shall be issued to the participants. Such notification shall include the vesting schedule, the term of the option and any additional rules or exercise rights specific to the grant. The grant of an option to an employee shall not be deemed either to entitle the employee to, or to disqualify the employee from, participation in any other grant of options under the Plan.
		

		
			 
		

		

		

		 

		

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		7.  Option Price.  The purchase price per share of the Common Stock for any option granted under the Plan shall be determined by the Committee, but shall not be less than 100% of the Fair Market Value per share of the Common Stock at the time the option is granted.  Notwithstanding the foregoing, no incentive stock option shall be granted to an employee who, at the time of such grant, is a Ten Percent Shareholder unless the option price per share is at least 110% of the Fair Market Value per share of the Common Stock subject to the incentive stock option at the time the option is granted. 
		

		
			 
		

		
			8.  Option Period.  The option period will begin on the date the option is granted, which will be the date the Committee authorizes the option.  No option may terminate later than the day prior to the tenth anniversary of the date the option is granted; provided,  however, that an incentive stock option granted to an employee who, at the time of such grant, is a Ten Percent Shareholder shall not be exercisable after the expiration of five years after the date of grant.  The Committee may provide for the exercise of options in installments and upon such terms, conditions and restrictions as it may determine.  
		

		
			 
		

		
			9.  Exercisability of Options.  The Committee shall prescribe the installments, if any, in which an option granted under the Plan shall become vested and exercisable. 
		

		
			 
		

		
			On the last date worked by any participant, whether due to voluntarily termination or his employment with the Company or Subsidiary is terminated for Cause, neither the Company, the Parent nor any Subsidiary shall have any further obligation to the participant hereunder, and the options (whether or not vested) shall immediately terminate in full. 
		

		
			 
		

		
			In the event a participant's employment is terminated by the Company for any reason other than for Cause, options may be exercised, to the extent vested and exercisable as of the last date worked by the participant, by the participant in accordance with its terms but in no event beyond the earlier of (x) 90 days after the last date worked by the participant, unless such period is extended in the discretion of the Committee, or (y) the scheduled expiration of such options.
		

		
			 
		

		
			10.  Payment; Method of Exercise.  Payment shall be made in cash or in shares of Common Stock already owned by the holder of the option (valued at Fair Market Value on the date of exercise) or partly in cash and partly in such shares; provided, however, that if shares are used to pay the exercise price of an option, such shares must have been held by the participant for at least such period of time, if any, as necessary to avoid variable accounting for the option.  The Committee, in its sole discretion, may authorize additional methods by which the exercise price of an option may be paid (including "cashless exercise" arrangements), and by which shares of Common Stock shall be delivered or deemed to be delivered to participants.  No shares may be issued until full payment of the purchase price therefore has been made, and a participant will have none of the rights of a stockholder until shares are issued to him.
		

		
			 
		

		
			Options shall be exercised by  notice to the Company.  Such notice shall state that the holder of the option elects to exercise the option, the number of shares in respect of which it is being exercised and the manner of payment for such shares or cashless exercise and shall be accompanied by payment of the full purchase price of such shares.
		

		
			 
		

		

		

		 

		

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		11.  Withholding Taxes.  The Company or any Parent or Subsidiary shall have the authority and the right to deduct or withhold, or require a participant to remit to the Company, an amount sufficient to satisfy federal, state, and local taxes (including the participant's FICA obligation) required by law to be withheld with respect to any exercise, lapse of restriction or other taxable event arising as a result of the Plan.  If shares of Common Stock are surrendered to the Company to satisfy withholding obligations in excess of the minimum withholding obligation, such shares must have been held by the participant as fully vested shares for such period of time, if any, as necessary to avoid variable accounting for the option.  With respect to withholding required upon any taxable event under the Plan, the Committee may require or permit that any such withholding requirement be satisfied, in whole or in part, by withholding from the option shares of Common Stock having a Fair Market Value on the date of withholding equal to the minimum amount (and not any greater amount) required to be withheld for tax purposes, all in accordance with such procedures as the Committee may establish.
		

		
			 
		

		
			12.  Rights in the Event of Death, Retirement or Incapacity.  If a participant's employment is terminated due to death, Retirement or Incapacity prior to the termination of his or her right to exercise an option in accordance with the provisions of his or her stock option without having fully exercised the option, then the total number of shares of Common Stock then underlying the option shall thereupon become exercisable.  In the event of Retirement, such exercisable options may only be exercised prior to the earlier of (x) 5 years after the last date worked by the participant, or (y) the scheduled expiration of such options.  In the event of a termination of a participant's employment due to death or Incapacity, or a participant's death following his or her termination of employment during the period in which his or her option remains exercisable, then notwithstanding the foregoing, such option may be exercised to the extent the option could have been exercised by the participant, by the participant's estate or by the person who acquired the right to exercise the option by bequest or inheritance only during the period within one year after the last date worked by the participant, but in no event beyond the original expiration date of the option.
		

		
			 
		

		
			13.  Effect of Certain Changes.    
		

		
			 
		

		
			(a)  If there is any change in the number of outstanding shares of Common Stock by reason of any stock dividend, stock split, recapitalization, combination, exchange of shares, merger, consolidation, liquidation, split-up, spin-off or other similar change in capitalization, any distribution to common shareholders, including a rights offering, other than cash dividends, or any like change, then the number of shares of Common Stock available for grant under Section 4, the authorization limits in Section 5, the number of such shares covered by outstanding options, and the price per share of such options shall be proportionately adjusted by the Committee to reflect such change or distribution; provided,  however, that any fractional shares resulting from such adjustment shall be eliminated.  Without limiting the foregoing, in the event of a subdivision of the outstanding shares of Common Stock (stock-split), a declaration of a dividend payable in shares of Common Stock, or a combination or consolidation of the outstanding shares of Common Stock into a lesser number of shares, the authorization limits under Sections 4 and 5 shall automatically be adjusted proportionately, and the shares of Common Stock then subject to each option shall automatically be adjusted proportionately without any change in the aggregate purchase price therefor.
		

		

		

		 

		

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			 (b)  In the event of a change in the Common Stock of the Company as presently constituted, the shares resulting from any such change shall be deemed to be the Common Stock within the meaning of the Plan.
		

		
			 
		

		
			(c)  In the event of a reorganization, recapitalization, merger, consolidation, acquisition of property or stock, extraordinary dividend or distribution, separation or liquidation of the Company, or any other event similarly affecting the Company, the Board or the Committee shall have the right, but not the obligation, notwithstanding anything to the contrary in this Plan, to provide that outstanding options granted under this Plan shall (i) be canceled in respect of a cash payment or the payment of securities or property, or any combination thereof, with a per share value determined by the Board in good faith to be equal to the value received by the stockholders of the Company in such event in the respect of each share of Common Stock, with appropriate deductions of exercise prices, or (ii) be assumed by another party to a transaction or otherwise be equitably converted or substituted in connection with such transaction.
		

		
			 
		

		
			(d)  To the extent that the foregoing adjustments relate to stock or securities of the Company, such adjustments shall be made by the Committee, whose determination in that respect shall be final, binding and conclusive. The Committee's determination need not be uniform and may be different for different participants whether or not such participants are similarly situated.  
		

		
			 
		

		
			14.  Nonexclusive Plan.  Neither the adoption of the Plan by the Board nor the submission of the Plan to the stockholders of the Company for approval shall be construed as creating any limitations on the power of the Board to adopt such other incentive arrangements as it may deem desirable, including, without limitation, the granting of stock options otherwise than under the Plan, and such arrangements may be either generally applicable or applicable only in specific cases.
		

		
			 
		

		
			15.  Assignability.  Nonqualified options may be transferred by gift to any member of the optionee's immediate family or to a trust for the benefit of one or more of such immediate family members, and nonqualified and incentive stock options may be transferred by the laws of descent and distribution.  Incentive stock options are otherwise non-transferable.  During an optionee's lifetime, options granted to an optionee may be exercised only by such optionee or by his or her guardian or legal representative unless the option has been transferred in accordance with the preceding sentence, in which case, it shall be exercisable only by such transferee.  For purposes of this Section 15, immediate family shall mean the optionee's spouse, children and grandchildren.
		

		
			 
		

		

		

		 

		

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		16.  Amendment or Discontinuance.  The Plan may be amended or discontinued by the Board without the approval of the stockholders of the Company, except that stockholder approval shall be required for any amendment that would (a) materially increase (except as provided in Section 13 hereof) the maximum number of shares of Common Stock for which options may be granted under the Plan, (b) materially expand the class of employees eligible to participate in the Plan, (c) expand the types of awards available under the Plan, (d) otherwise materially increase the benefits to participants under the Plan, or (e) otherwise constitute a material change requiring stockholder approval under applicable laws, policies or regulations or the applicable listing or other requirements of the principal stock exchange or the NASDAQ National Market on which the Common Stock is then listed or traded.  
		

		
			 
		

		
			17.  Options Previously Granted.  At any time and from time to time, the Committee may amend, modify or terminate any outstanding option without approval of the participant; provided, however:
		

		
			 
		

		
			(a)  Such amendment, modification or termination shall not, without the participant's consent, reduce or diminish the value of such option determined as if the option had been exercised on the date of such amendment or termination (with the per-share value of an option for this purpose being calculated as the excess, if any, of the Fair Market Value as of the date of such amendment or termination over the exercise price of such option);
		

		
			 
		

		
			(b)  The original term of an option may not be extended without the prior approval of the stockholders of the Company;
		

		
			 
		

		
			(c)  Except as otherwise provided in Section 13, the exercise price of an option may not be reduced, directly or indirectly, without the prior approval of the stockholders of the Company; and
		

		
			 
		

		
			(d)  No termination, amendment, or modification of the Plan shall adversely affect any option previously granted under the Plan, without the written consent of the participant affected thereby.  An outstanding option shall not be deemed to be "adversely affected" by a Plan amendment if such amendment would not reduce or diminish the value of such option determined as if the option had been exercised on the date of such amendment (with the per-share value of an option for this purpose being calculated as the excess, if any, of the Fair Market Value as of the date of such amendment over the exercise price of such option).
		

		
			 
		

		
			18.  Effect of Plan.  Neither the adoption of the Plan nor any action of the Board or Committee shall be deemed to give any Corporate Officer or employee any right to be granted an option to purchase Common Stock or any other rights except as may be evidenced in a valid resolution, action, or minutes of the Committee (or of such person delegated by the Committee pursuant to Section 2), or by a stock option agreement or notice, or any amendment thereto, duly authorized by the Board or Committee (or by such person delegated by the Committee pursuant to Section 2) and executed on behalf of the Company, and then only to the extent and on the terms and conditions expressly set forth therein.
		

		
			 
		

		

		

		 

		

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		19.  Term.  Unless sooner terminated by action of the Board, this Plan will terminate on August 1, 2024.  The Committee may not grant options under the Plan after that date, but options granted before that date will continue to be effective in accordance with their terms.  No incentive stock option may be granted pursuant to the Plan after the day immediately prior to the tenth anniversary of the date the Plan was adopted by the Board, or the termination of the Plan, if earlier.
		

		
			 
		

		
			20.  Effectiveness; Approval of Stockholders.  The Plan shall take effect upon its adoption by the Board, but its effectiveness and the exercise of any options shall be subject to the approval of the holders of a majority of the voting shares of the Company, which approval must occur within twelve months after the date on which the Plan is adopted by the Board.
		

		
			 
		

		
			21.  Definitions.  For the purpose of this Plan, unless the context requires otherwise, the following terms shall have the meanings indicated:
		

		
			 
		

		
			(a)  "Board" means the Board of Directors of the Company.
		

		
			 
		

		
			(b)  "Cause" means the commission of an act of dishonesty, gross incompetency or intentional or willful misconduct, which act occurs in the course of participant's performance of his duties as an employee.
		

		
			 
		

		
			(c)  "Code" means the Internal Revenue Code of 1986, as amended.
		

		
			 
		

		
			(d)  "Common Stock" means the Common Stock which the Company is currently authorized to issue or may in the future is authorized to issue (as long as the Common Stock varies from that currently authorized, if at all, only in amount of par value).
		

		
			 
		

		
			(e)  "Company" means AVX Corporation, a Delaware corporation.
		

		
			 
		

		
			(f)  "Exchange Act" means the Securities Exchange Act of 1934, as from time to time amended.
		

		
			 
		

		
			(g)  "Fair Market Value" means the closing price of a share of Common Stock on the date of grant (or, if not a trading day, on the last preceding trading day) as reported on the New York Stock Exchange Composite Transactions Tape or, if not listed on the New York Stock Exchange, the principal stock exchange or the NASDAQ National Market on which the Common Stock is then listed or traded; provided,  however, that if the Common Stock is not so listed or traded then the Fair Market Value shall be determined in good faith by the Committee.
		

		
			 
		

		

		

		 

		

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		(h)  "Incapacity" means any material physical, mental or other disability rendering the participant incapable of substantially performing his services hereunder that is not cured within 180 days of the first occurrence of such incapacity.  If the determination of Incapacity relates to an incentive stock option, "Incapacity" means Permanent and Total Disability, as defined in Section 22(e)(3) of the Code.  In the event of any dispute between the Company and the participant as to whether the participant is incapacitated as defined herein, the determination of whether the participant is so incapacitated shall be made by an independent physician selected by the Company's Board of Directors and the decision of such physician shall be binding upon the Company and the participant.
		

		
			 
		

		
			(i)  "Parent" means any corporation in an unbroken chain of corporations ending with the Company if, at the time of granting of the option, each of the corporations other than the Company owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain.
		

		
			 
		

		
			(j)  "Plan" means this AVX Corporation 2014 Stock Option Plan as amended from time to time.
		

		
			 
		

		
			(k)  “Retirement” means, with respect to any participant, the participant's retirement as an employee of the Company on or after reaching age 65, or as otherwise provided under a participant's terms of employment governed by a separate agreement.
		

		
			 
		

		
			(l)  "Subsidiary" means any corporation in an unbroken chain of corporations beginning with the Company if, at the time of the granting of the option, each of the corporations other than the last corporation in the unbroken chain owns stock possessing 50% or more of the total combined voting power of all classes of stock in one of the other corporations in the chain.  The "Subsidiaries" means more than one of any such corporations.
		

		
			 
		

		
			(m)  "Ten Percent Shareholder" means an individual who owns (or is treated as owning under Section 424(d) of the Code) stock possessing more than 10% of the total combined voting power of all classes of stock of the Company or any Subsidiary.
		

		
			 
		

		 

		

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