Document:

EX 10.2

 EXHIBIT 10.2 

CONSULTING AGREEMENT 

THIS CONSULTING SERVICES AGREEMENT (the “Agreement”), is entered into as of October 1, 2014 by and between MeadWestvaco
Corporation, a Delaware corporation (the “Company”), James A. Buzzard (“Consultant”). 
 BACKGROUND 

The Company previously entered into an agreement with Consultant to obtain the services of Consultant for the purpose of providing advisory
services to the Company in support of the company’s manufacturing and commercial activities and Consultant agreed to provide such services, all subject to certain the terms and conditions (“Original Agreement”) . 

The Original Agreement recently expired and Company and Consultant each wish to extend the relationship, subject to certain terms and
conditions for an additional period of two months (“Agreement”). 
 The Company and Consultant acknowledge that Consultant’s
relationship with the Company is one of confidence and trust and will involve Consultant being privy to confidential information including but not limited to information that qualifies as a trade secret under applicable law. 

NOW, THEREFORE, in consideration of the mutual promises hereinafter set forth, and intending to be legally bound hereby, the Company and
Consultant hereby agree as follows: 
 1. Services to be Provided. During the term of this Agreement, Consultant shall provide
the Company with advisory services in support of the development of certain projects and initiatives relative to the company’s manufacturing and commercial activities as specified from time to time (the “Services”). 

2. Term. The term of this Agreement shall begin on October 1, 2014 and shall continue until November 30, 2014 unless
terminated prior thereto pursuant to paragraph 6 below. The Agreement may be extended in 30 day increments subject to the mutual agreement of the parties. 

3. Compensation; No Benefits. 

(a) As compensation for Consultant’s performance of the Services to be performed under this Agreement, Company shall pay Consultant a
monthly retainer of $15,000. Company agrees to pay Consultant for reasonable travel and other expenses directly related to Company work upon the submission of suitable invoices in accordance with customary Company policy. Payment of expenses will be
approved only after a review of all documentation supporting such expenses consistent with such Company policy. 
 (b) Consultant is not an
employee of Company and will not be entitled to participate in or receive any benefit or right as a Company employee under any Company employee benefit and welfare plans, including, without limitation, employee insurance, pension, savings and
security plans as a result of his/her entering into this Agreement. 

 4. Independent Contractor; Performance. 

(a) Independent Contractor Status. For purposes of this Agreement and all Services to be provided hereunder, Consultant (and any individual or
entity acting on his behalf) shall not be considered a partner, co-venturer, agent, employee, or representative of the Company, but shall remain in all respects an independent contractor, and neither party shall have any right or authority to make
or undertake any promise, warranty or representation, to execute any contract, or otherwise to assume any obligation or responsibility in the name of or on behalf of the other party. 

(b) Performance. Consultant will perform all Services in a professional manner, consistent with industry standards, in accordance with the
highest ethical standards, and in compliance with applicable legal and regulatory requirements. Consultant (and any employee or entity actin on his behalf) shall also comply with the terms and conditions of the MeadWestvaco Code of Conduct
(“Code of Conduct”) and is encouraged to report or ask questions about any conduct observed or performed by a MeadWestvaco employee, which Consultant believes violates any policy addressed in the Code of Conduct as in effect on the date of
this Agreement (or as subsequently amended or replaced). 
 (c) Survival. The provisions of this paragraph 4 shall survive the expiration or
sooner termination of the term of this Agreement. 
 5. Confidentiality. 

(a) Company Information. Consultant agrees at all times during the term of this Agreement and thereafter, to hold in strictest confidence, and
not to use, except in connection with Consultant’s performance of the Services, and not to disclose to any person or entity without written authorization of the President or Chairman of the Company, any Confidential Information of the Company.
As used herein, “Confidential Information” means any Company proprietary or confidential information, technical data, trade secrets or know-how, including, but not limited to, research, product plans, products, services, customer lists and
customers, markets, software, developments, inventions, processes, formulas, technology, designs, drawings, engineering, marketing, distribution and sales methods and systems, sales and profit figures, finances and other business information
disclosed to Consultant by the Company, either directly or indirectly in writing, orally or by drawings or inspection of documents or other tangible property. Confidential information also includes, but is not limited to, information that qualifies
as a trade secret under applicable law. However, Confidential Information does not include any of the foregoing items which have become publicly known and made generally available through no wrongful act of Consultant. 

(b) Consultant-Restricted Information. Consultant agrees that during the term of this Agreement Consultant will not improperly use or disclose
any proprietary or confidential information or trade secrets of any person or entity with whom Consultant has an agreement or duty to keep such information or secrets confidential. 

(c) Third Party Information. Consultant recognizes that the Company has received and in the future will receive from third parties their
confidential or proprietary information 

 
subject to a duty on the Company’s part to maintain the confidentiality of such information and to use it only for certain limited purposes. Consultant agrees at all times during the term of
this Agreement and thereafter, to hold in strictest confidence, and not to use, except in connection with Consultant’s performance of the Services, and not to disclose to any person or entity, or to use it except as necessary in performing the
Services, consistent with the Company’s agreement with such third party. 
 (d) Survival. The provisions of this paragraph 5 shall
survive the expiration or sooner termination of the term of this Agreement. 
 6. Termination. Notwithstanding the provisions
of paragraph 2: the Company may terminate the term of this Agreement (i) for any reason whatsoever upon thirty (30) days’ prior written notice to Consultant, and (ii) immediately upon written notice to Consultant, if Consultant
engages in misconduct, or if any of the Services is performed or is being performed in an unsatisfactory manner, each of which shall be as determined by the Company in its sole discretion. In the event of any termination of the term of this
Agreement, the Company shall be responsible for any portion of the compensation owned to Consultant under paragraph 3 for any Services rendered prior to the effective date of such termination. Within five days after any termination of the term of
this Agreement, Consultant shall deliver to the Company all work product resulting from the performance of the Services. 
 7. No
Conflicting Agreements. Consultant represents that Consultant is not a party to any existing agreement which would prevent Consultant from entering into and performing this Agreement. Consultant will not enter into any other agreement that
is in conflict with Consultant’s obligations under this Agreement. 
 8. Return of Company Property. Promptly upon the
expiration or sooner termination of the term of this Agreement, and earlier if requested by the Company at any time, Consultant shall deliver to the Company (and will not keep in Consultant’s possession or deliver to anyone else) all
Confidential Information of the Company and all software, documentation devices, records, data, notes, reports, proposals, lists, correspondence, specifications, drawings, blueprints, sketches, materials, equipment, other documents or property, or
reproductions of any aforementioned items developed by Consultant as part of or in connection with the Services or otherwise belonging to the Company. Consultant shall not remove any the Company property from the Company premises without written
authorization from the Company. 
 9. Equitable Relief. Consultant agrees that it would be impossible or inadequate to measure
and calculate the Company’s damages from any breach of the covenants set forth in paragraphs 5 and 8 of this Agreement. Accordingly, Consultant agrees that if Consultant breaches any of such covenants, the Company will have available, in
addition to any other right or remedy available, the right to obtain an injunction from a court of competent jurisdiction restraining such breach or threatened breach and to specific performance of any such provision of this Agreement restraining
such a breach (or threatened breach) and to specific performance of this Agreement. Consultant further agrees that no bond or other security shall be required in obtaining such equitable relief and hereby consents to the issuance of such injunction
and to the ordering of specific performance. 

 10. Entire Agreement, Amendment and Assignment. This Agreement is the sole
agreement between Consultant and the Company with respect to the Services to be performed hereunder and it supersedes all prior agreements and understandings with respect thereto, whether oral or written. No modification to any provision of this
Agreement shall be binding unless in writing and signed by both Consultant and the Company. No waiver of any rights under this agreement, will be effective unless in writing signed by the party to be charged. All of the terms and provisions of this
Agreement shall be binding upon and inure to the benefit of and be enforceable by the respective heirs, executors, administrators, legal representatives, successors and assigns of the parties hereto, except that the duties and responsibilities of
Consultant hereunder are of a personal nature and shall not be assignable or delegable in whole or in part by Consultant. 
 11.
Governing Law. This Agreement shall be governed by and interpreted in accordance with laws of the Commonwealth of Virginia without giving effect to any conflict of laws provisions. Consultant consents to personal jurisdiction of the
state and federal courts located in the Commonwealth of Virginia for any lawsuit filed there against Consultant by the Company arising from or related to this Agreement, to the exclusion of all other courts, and Consultant accepts service of process
by registered or certified mail to the address set forth below (or to such other address provided to the Company) as if Consultant were personally served within the Commonwealth of Virginia. 

12. Severability. If any provision of this Agreement or application thereof to anyone or under any circumstances is adjudicated
to be invalid or unenforceable in any jurisdiction, such invalidity or unenforceability shall not affect any other provision or application of this Agreement which can be given effect without the invalid or unenforceable provision or application and
shall not invalidate or render unenforceable such provision or application in any other jurisdiction. 
 IN WITNESS WHEREOF, the
undersigned, intending to be legally bound, have duly executed this Agreement as of the date first above written. 
  

			
		
	By:	 	/s/ Robert A. Feeser
		
	 Name:
	 	Robert A. Feeser
	 Title:
	 	Executive Vice President
	 Date:
	 	October 30, 2014
	
	 James A. Buzzard

	
	/s/ James A. Buzzard
		
	 Date:
	 	October 29, 2014Exhibit 10.3 - Nonqualified Stock Option Agreement

Exhibit 10.3

+SPARTON CORPORATION 
NONQUALIFIED STOCK OPTION AGREEMENT
THIS NONQUALIFIED STOCK OPTION AGREEMENT (Agreement) is made this [DATE], between SPARTON CORPORATION (Company) and [NAME], an employee of the Company or one of its subsidiaries (Employee), pursuant to Section 6.A. of the 2010 Sparton Corporation Long Term Stock Option Incentive Plan (Plan).  Capitalized terms used but not defined herein have the meanings given such terms in the Plan.
IT IS AGREED AS FOLLOWS:
1.Grant of Option. Pursuant to the Plan, the Company hereby grants to the Employee the option to purchase [NUMBER] shares of the Company’s common stock (Option Shares), on the terms and conditions herein set forth in this Agreement (Option). The Option Shares are not intended to be incentive stock options (ISOs) qualifying under the provisions of Section 422 of the Internal Revenue Code of 1986, as amended.
2.    Purchase Price. The purchase price of the shares covered by this Option shall be [AMOUNT] per share. The Committee has determined that such price is fair market value of a share of the Company’s common stock on this date.
3.    Term of Option. The term of this Option shall be for a period of 10 years, subject to earlier termination as provided in subsequent paragraphs of this Agreement. 
4.    Employee’s Agreement. Employee’s employment by the Company shall be at the sole discretion of the Company, and this Agreement shall not impose on the Company any obligation to retain the Employee in its employ for any period. In the event of the termination of Employee’s employment by the Company for any reason prior to the one year anniversary of the date of this Agreement this Option shall terminate, unless this Option becomes exercisable as provided in paragraph 7 of this Agreement.
5.    Vesting and Exercise of Option.
		
	(a)
	Vesting Periods. The Option shall vest at a rate of 25% per year commencing on the first anniversary of the date of the grant (described above) and 25% on each subsequent date until 100% vested. Employee must be employeed on the date vesting is to occur or any outstanding and unvested portion of the Option shall be forfeited. 

		
	(b)
	Exercise Periods. Subject to the terms and conditions of this Agreement and the Plan (including, but not limited to, the conditions set forth in paragraph 7), the Option Shares are exercisable as soon as they have vested under Paragraph 5(a). 

		
	(c)
	Notice and Conditions. This Option may be exercised at any time during the term of this Option, by written notice to the Company (Notice) as to any or all of the vested Option Shares, but not as to less than 100 shares at any one time, unless the number purchased is the total number of shares remaining to be purchased under this Agreement. The Notice shall state the number of shares with respect to which the Option is being exercised, shall be signed by the person exercising this Option, and shall be accompanied by payment of the full purchase price of the shares. This Agreement shall be submitted to the Company 

Detroit_4086429_2

Exhibit 10.3

with the Notice for purposes of recording the shares being purchased, if exercised in part, or for purposes of cancellation of this Agreement if all shares then subject to this Agreement are being purchased. In the event this Option shall be exercised pursuant to paragraph 7(c) hereof by any person other than the Employee, such Notice shall be accompanied by appropriate proof of the right of such person to exercise the Option.
		
	(d)
	Payment Terms. Payment of the purchase price shall be made by: (a) cash, check, bank draft or money order, payable to the order of the Company; (b) the delivery by the Employee of unencumbered shares of common stock of the Company (provided that any shares acquired pursuant to the exercise of an option have been held by Employee for a period of at least six consecutive months) with a fair market value on the date of exercise equal to the total purchase price of the shares to be purchased; (c) the delivery of the portion of the Option under this Agreement with a fair market value on the date of exercise equal to the total purchase price of shares to be purchased; or (d) a combination of (a), (b) and (c). Subject to the conditions set forth in paragraphs 7(b) and 12, upon exercise of all or a portion of this Option, the Company shall issue to the Employee a stock certificate representing the number of shares with respect to which this Option was exercised.

6.    Transferability of Option. Except as provided below, this Option shall not be sold, transferred, assigned, pledged or hypothecated in any way, shall not be assignable by operation of law, and shall not be subject to execution, levy, attachment or similar process. Except as provided in this Agreement, any attempted sale, transfer, assignment, pledge, hypothecation or other disposition of this Option contrary to the terms hereof, and any execution, levy, attachment or similar process upon the Option, shall be null and void and without effect.
7.    Termination of Employment, Retirement, Disability and Death.
		
	(a)
	Termination of Employment other than Retirement, Disability or Death. In the event the Employee ceases to be employed by the Company for any reason other than Retirement, Disability or Death, this Option shall, to the extent rights to purchase shares hereunder have accrued at the date of such termination and shall not have been fully exercised, be exercisable, in whole or in part, at any time within a period of 90 days following cessation of the Employee’s employment, subject, however, to prior expiration of the term of this Option and any other limitations upon its exercise in effect at the date of exercise.

		
	(b)
	Retirement or Disability. In the event the Employee ceases to be employed by the Company by reason of Retirement or Disability, this Option shall, to the extent rights to purchase shares hereunder have accrued at the date of such Retirement or Disability and have not been fully exercised, be exercisable, in whole or in part, at any time within the period of three years following such termination of employment, subject, however, to prior expiration of the term of this Option and any other limitations upon its exercise in effect at the date of exercise. If the Employee dies after such Retirement or Disability, this Option shall be exercisable in accordance with paragraph 7(c) hereof.

		
	(c)
	Death. In the event of the Employee’s death, this Option shall, to the extent rights to purchase shares hereunder have accrued at the date of death and shall not have been fully exercised, be exercisable, in whole or in part, by the personal representative of the Employee’s estate, by any person or persons who shall have acquired this Option directly 

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Detroit_4086429_2

Exhibit 10.3

from the Employee by bequest or inheritance at any time during the following periods: (i) if Employee dies while employed by the Company, at any time within six months after the date of death, or (ii) if Employee dies during the extended exercise period following termination of employment specified in paragraph 7(b), at any time within the longer time of such extended period or six months after the date of death, subject, however, in each case, to the prior expiration of the term of this Option and any other limitations on the exercise of such Option in effect at the date of exercise.
		
	(d)
	Termination of Option. If this Option is not exercised within whichever of the exercise periods specified in paragraph 7(a), 7(b) or 7(c) is applicable, this Option shall terminate upon earlier of the expiration of such exercise period or the period specified in Paragraph 3.

		
	(e)
	Vesting. Upon Termination of Employment and Termination of the Option, vesting shall cease and no additional share shall become vested after the date of the Termination of Employment or Termination of the Option.

8.    Tax Withholding. The exercise of this Option is subject to the satisfaction of withholding tax or other withholding liabilities, if any, under federal, state and local laws in connection with such exercise or the delivery or purchase of shares pursuant hereto. The exercise of this Option shall not be effective unless applicable withholding shall have been effected or obtained in the preceding manner or in any other manner acceptable to the Committee.
9.    Rights as a Shareholder. Employee shall have no rights as a shareholder with respect to any shares covered hereby until Employee shall have become the holder of record of such shares. No adjustment shall be made for dividends, distributions or other rights for which the record date is prior to the date on which Employee shall have become the holder of record thereof, except as provided in paragraph 9.
10.    Modification, Extension and Renewal. Subject to the terms and conditions and within the limitations of the Plan, the Committee, subject to approval of the Board of Directors, may modify or renew this Option, or accept its surrender (to the extent not theretofore exercised) and authorize the granting of a new option or options in substitution therefor (to the extent not theretofore exercised). Notwithstanding the foregoing, no modification shall, without the consent of the Employee, alter or impair any rights or obligations hereunder.
11.    Postponement of Delivery of Shares and Representations. The Company, in its discretion, may postpone the issuance and/or delivery of shares upon any exercise of this Option until completion of such stock exchange listing, or registration, or other qualification of such shares under any state and/or federal law, rule or regulation as the Company may consider appropriate, and may require any person exercising this Option to make such representations, including a representation that it is the Employee’s intention to acquire shares for investment and not with a view to distribution thereof, and furnish such information as it may consider appropriate in connection with the issuance or delivery of the shares in compliance with applicable laws, rules and regulations. In such event, no shares shall be issued to such holder unless and until the Company is satisfied with the accuracy of any such representations.
12.    Subject to Plan. This Option is subject to the terms and provisions of the Plan. If any inconsistency exists between the provisions of this Agreement and the Plan, the Plan shall govern.

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Detroit_4086429_2

Exhibit 10.3

13.    Exempt from 409A. This Option is intended to be exempt from 409A under the stock rights exemption, as described in Treasury Regulation 1.409A-1(b)(5)(i). This Option shall be interpreted in a manner consistent with the intent that this Option be exempt from 409A.
[The rest of this page is intentionally blank. Signatures are on the following page.] 

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Detroit_4086429_2

Exhibit 10.3

IN WITNESS WHEREOF, this Nonqualified Stock Option Agreement has been executed the date first above written.
 
SPARTON CORPORATION

By:____________________________
Cary B. Wood
Its:  Chief Executive Officer 
 

EMPLOYEE 
 
 
_______________________________ 
[NAME]

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Detroit_4086429_2

Exhibit 10.3

RECORD OF EXERCISE 

	
				
	

Date
	

Number of Shares

	

Price Per Share

	Shares Subject  
to Option After Exercise

	 
	 
	 
	 

	 
	 
	 
	 

	 
	 
	 
	 

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Detroit_4086429_2

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