Document:

Exhibit 10.5

 

SUBSCRIPTION AGREEMENT

(Grant of Series F
Shares)

 

SUBSCRIPTION AGREEMENT, dated as of [                ],
2005 (the “Agreement”), between Insight Communications Company, Inc.,
a Delaware corporation (the “Company”), and the participant whose name
appears on the signature page hereof (the “Participant”).  (Capitalized terms used in this Agreement and
not defined herein shall have the meaning ascribed to such terms in the Insight
Communications Company, Inc. 2005 Stock Incentive Plan (the “Plan”)).

 

W  I
T  N  E  S  S  E  T  H:

 

WHEREAS, the Board has approved the grant to the
Participant of the aggregate number of shares (the “Shares”) of Series F
non-voting common stock, par value $0.01 per share (the “Series F
Shares”), of the Company set forth on the signature page hereof, on
the terms and conditions set forth herein and in the Plan, and the Participant
and the Company desire to enter into this Agreement to evidence and confirm the
grant of such Shares; and

 

WHEREAS, the Board has adopted the Plan in order to
effect such grants.

 

NOW, THEREFORE, to implement the foregoing and in
consideration of the mutual agreements contained herein, the parties hereto
hereby agree as follows:

 

1.                                       Grant
of Series F Shares.  Subject to
the terms and conditions of this Agreement, the Securityholders Agreement and
the Plan, and subject to (i) the Participant becoming a party to
the Securityholders Agreement by executing and delivering to the Company a
joinder agreement in the form of Schedule A to the Securityholders Agreement
if the Participant is not already a party to such agreement and (ii) the
Participant’s delivery to the Company of duly executed and undated instruments
of transfer or assignment in blank, to be used by the Company only for
transfers required or permitted by the Plan, this Agreement or the
Securityholders Agreement, the Company hereby evidences and confirms its grant
to the Participant of the aggregate number of Series F Shares set forth on
the signature page hereof.  Upon
grant, one or more stock certificates registered in the Participant’s name and
representing the Shares, which certificates shall bear the legends set forth in
Section 7(b), will be delivered on behalf of the Participant to the
Secretary of the Company, to be held in custody until the later of the date (i) they
become Vested Shares (as defined in Section 3) and (ii) the
Participant requests such instrument from the Company.

 

2.                                       Plan.  The Shares granted hereunder are being issued
pursuant to and in accordance with the Plan and, as such, are subject in all
respects to the Plan, all of the terms of which are made a part of and
incorporated into this Agreement.  In the
event of

 

 

any conflict between any
term of this Agreement and the terms of the Plan, the terms of the Plan shall
control.

 

3.                                       Vesting.  Subject to the continued employment(1) of the
Participant by the Company or any Subsidiary thereof, the Series F Shares
granted hereunder shall generally vest in five equal annual installments
beginning on the first anniversary of the Grant Date specified on the signature
page hereof and continuing on each anniversary of such date until fully
vested.(2)  Shares that are vested are
referred to herein as “Vested Shares”. 
The Shares shall be subject to forfeiture prior to becoming Vested Shares
as provided herein and in the Plan.

 

4.                                       Rights
and Restrictions

 

(a)                                  Transfer
Restrictions.  The Participant shall
not sell, transfer, pledge, encumber or otherwise dispose of, whether directly
or indirectly (by merger or sale of equity in any direct or indirect holding
company or otherwise), and whether voluntarily or by operation of law (“Transfer”),
any Series F Shares to any Person other than the Company, except as
provided in the Plan and except for Transfers of Vested Shares permitted under
the Securityholders Agreement.

 

(b)                                 Voting
Rights.  The Participant shall have
no voting rights except as set forth in the Charter or as may be required under
the General Corporation Law of the State of Delaware.  The Participant, by becoming a party to the
Securityholders Agreement, shall grant an irrevocable proxy to vote the
Participant’s Shares pursuant to section 11 thereof.

 

(c)                                  Other
Rights and Obligations.  The
Participant shall be entitled to the rights and subject to the obligations
created under the Plan and the Securityholders Agreement, each to the extent
set forth therein.

 

(1)          For directors, all
references to employment in this agreement will be changed to “continued
service as a director of the Company”.  

 

(2)          For SRK:  All of the Series F Shares are immediately
vested.

 

For MSW:  Subject to the continued employment of
Participant by the Company or any subsidiary thereof, (i) 10% of the
Series F Shares are immediately vested, (ii) 80% of any such Series F
Shares shall vest in four equal annual installments beginning on the first
anniversary of Grant Date specified on the signature page hereof and continuing
on each anniversary thereof until the fourth anniversary thereof, and (iii)
the remaining 10% of any such Series F Shares shall vest on the fifth
anniversary of such Grant Date.

 

2

 

5.                                       Termination
of Services.  Notwithstanding
anything contained in this Agreement, the Plan or the Securityholders Agreement
to the contrary, if the Participant’s employment with the Company is terminated
for any reason, the Series F Shares granted to the Participant hereunder
shall be treated as set forth in this Section 5.

 

(a)                                  Due
to Death or Disability.  If the
Participant’s employment with the Company and its Subsidiaries is terminated by
reason of the Participant’s death or by the Company for Disability, all
unvested Series F Shares then held by the Participant shall vest and the
Participant shall be entitled to retain all Series F Shares then held by
the Participant (after taking into account this paragraph), subject to the
terms and conditions of the Plan and the Securityholders Agreement.

 

(b)                                 For
Any Other Reason.  If the Participant’s
employment with the Company and its Subsidiaries is terminated for any reason
other than death or Disability, (A) all Vested Shares then held by
the Participant shall remain outstanding and shall remain subject to the terms
and conditions of the Plan and the Securityholders Agreement and (B) all
Series F Shares then held by the Participant that are not Vested Shares
shall be immediately forfeited without payment therefor.(3)

 

(c)                                  Repurchase
Right.(4)  Upon any termination of
the Participant’s employment with the Company and its Subsidiaries prior to a
Qualified IPO or a Sale of the Company, the Company shall have the right to
repurchase and the Participant shall have the obligation to sell all or any
portion of the Shares that remain outstanding and have not been forfeited or
canceled as a result of such termination or otherwise for a cash payment equal
to the Fair Market Value (as defined in the Plan) of the Shares as of the date
of such termination.  The Company shall
have 180 days from the date of such termination of the Participant’s employment
during which to give notice in writing to the Participant (or, in the event of
the Participant’s death, the Participant’s estate) of its election to exercise
the Company purchase option, in whole or in part, including the number of
Shares that it is electing to purchase. 
The closing of any purchase of Shares pursuant to this Section 5(c) shall
take place at the principal office of the Company on the tenth business day
following the receipt by the Participant (or the Participant’s estate) of

 

(3)          For MSW add:  , provided that if the Participant’s
employment is terminated by the Company without Cause or by Participant for
Good Reason (as defined in the employment agreement between Participant and the
Company), Participant’s unvested Series F Shares shall vest in an amount equal
to the excess, if any, of 50% of the Series F Shares granted to the Participant
(vested and unvested), over the number of such Series F Shares that are then
vested.

 

(4)          Will not apply to SRK,
MSW or Eligible Directors.

 

3

 

written notice of the Company of its exercise of the Company’s purchase
option pursuant to this Section 5(c). 
At the closing, (i) the Company shall pay to the Participant
(or the Participant’s estate) an amount equal to the purchase price and (ii) the
Participant (or the Participant’s estate) shall deliver to the Company such
certificates or other instruments with respect to the Shares so purchased,
appropriately endorsed by the Participant (or the Participant’s estate), as the
Company may reasonably require.

 

(d)                                 Application
of the Purchase Price to Certain Loans. 
The Participant agrees that the Company shall be entitled to apply, or
to direct the application of, any amounts to be paid by the Company to purchase
Shares pursuant to Section 5(c) to discharge any indebtedness of the
Participant to, or guaranteed by, the Company or any of its Subsidiaries.

 

6.                                       Sale
of the Company.  Subject to the
continued employment of the Participant with the Company or any Subsidiary,
upon a Sale of the Company, the Series F Shares shall be treated as set
forth in Article IX of the Plan.

 

7.                                       Participant’s
Representations, Warranties, Covenants and Agreements.

 

(a)                                  Investment
Intention.  The Participant
represents and warrants that the Participant is acquiring the Series F
Shares solely for the Participant’s own account for investment and not with a
view to or for sale in connection with any distribution thereof.  The Participant agrees that the Participant
will not, directly or indirectly, offer, transfer, sell, pledge, hypothecate or
otherwise dispose of any of the Series F Shares (or solicit any offers to
buy, purchase or otherwise acquire or take a pledge of any Series F
Shares), except in compliance with the Securities Act of 1933, as amended (the “Securities
Act”), and the rules and regulations of the Securities and Exchange
Commission (the “Commission”) thereunder, and in compliance with
applicable state and foreign securities or “blue sky” laws.  The Participant further understands,
acknowledges and agrees that none of the Series F Shares may be
transferred, sold, pledged, hypothecated or otherwise disposed of (i) unless
(A) such disposition is pursuant to an effective registration
statement under the Securities Act, (B) the Participant shall have
delivered to the Company an opinion of counsel, which opinion and counsel shall
be reasonably satisfactory to the Company, to the effect that such disposition
is exempt from the provisions of section 5 of the Securities Act, (C) a
no-action letter from the Commission, reasonably satisfactory to the Company,
shall have been obtained with respect to such disposition, or (D) following
a Qualified IPO, in an exempt transaction under Rule 144, (ii) unless
such disposition is pursuant to registration under any applicable state and foreign
securities laws or an exemption therefrom and (iii) unless the
applicable provisions of the Plan, this Agreement and the Securityholders
Agreement shall have been complied with or have expired.

 

4

 

(b)                                 Legends.  The Grantee acknowledges that any certificate
evidencing the Series F Shares granted pursuant to this Agreement shall
bear the following legends:

 

“THE SHARES OF COMMON STOCK REPRESENTED BY THIS
CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS
AMENDED (THE “ACT”), AND ARE “RESTRICTED SECURITIES” AS DEFINED IN RULE
144 PROMULGATED UNDER THE ACT.  THE
COMMON STOCK MAY NOT BE SOLD OR OFFERED FOR SALE OR OTHERWISE DISTRIBUTED
EXCEPT (I) IN CONJUNCTION WITH AN EFFECTIVE REGISTRATION STATEMENT
FOR THE SHARES UNDER THE ACT, (II) IN COMPLIANCE WITH RULE 144 OR (III) OTHERWISE
PURSUANT TO AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS UNDER THE ACT.  THE SHARES REPRESENTED BY THIS CERTIFICATE MAY BE
TRANSFERRED ONLY IN ACCORDANCE WITH THE TERMS OF THE SECURITYHOLDERS AGREEMENT,
DATED AS OF DECEMBER 16, 2005, AMONG INSIGHT COMMUNICATIONS COMPANY, INC.
(THE “COMPANY”), AND THE OTHER PARTIES THERETO, A COPY OF WHICH IS ON
FILE WITH THE SECRETARY OF THE COMPANY.”

 

“THE SHARES REPRESENTED BY THIS CERTIFICATE ARE
SUBJECT TO (A) THE TRANSFER AND OTHER PROVISIONS OF A SUBSCRIPTION
AGREEMENT, DATED AS OF [      ,
2005]; AND (B) THE PROVISIONS
OF THE INSIGHT COMMUNICATIONS COMPANY, INC. 2005 STOCK INCENTIVE PLAN (THE “INCENTIVE
PLAN”) AND NEITHER THIS CERTIFICATE NOR THE SHARES REPRESENTED BY IT ARE
TRANSFERABLE EXCEPT IN ACCORDANCE WITH THE PROVISIONS OF THE SUBSCRIPTION
AGREEMENT AND THE INCENTIVE PLAN, COPIES OF WHICH ARE AVAILABLE FOR INSPECTION
AT THE OFFICES OF THE ISSUER.  NO
TRANSFER OF SUCH SHARES WILL BE MADE ON THE BOOKS OF THE ISSUER, AND SUCH
TRANSFER SHALL BE VOIDABLE, UNLESS ACCOMPANIED BY EVIDENCE OF COMPLIANCE WITH
THE TERMS OF SUCH PLAN AND AGREEMENTS.”

 

(c)                                  Securities
Law Matters.  The Participant
acknowledges receipt of advice from the Company that (i) the
Series F Shares have not been registered under the Securities Act or any
state or foreign securities or “blue sky” laws, (ii) it is not
anticipated that there will be any public market for the Series F Shares, (iii) the
Series F Shares must be held indefinitely and the Participant must
continue to bear the economic risk of the investment in the Series F
Shares unless the Series F Shares are subsequently registered under the
Securities Act and such state or foreign laws or an exemption from registration
is available, (iv) Rule 144 promulgated under the Securities
Act (“Rule 144”) is not presently available with respect to sales
of securities of the Company and the

 

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Company has made
no covenant to make Rule 144 available, (v) when and if the Series F
Shares may be disposed of without registration in reliance upon Rule 144,
such disposition can generally be made only in limited amounts in accordance
with the terms and conditions of such rule, (vi) the Company does
not plan to file reports with the Commission or make information concerning the
Company publicly available unless required to do so by law or agreement, (vii) if
the exemption afforded by Rule 144 is not available, sales of the Series F
Shares may be difficult to effect because of the absence of public information
concerning the Company, (viii) restrictive legends in the form
heretofore set forth shall be placed on the certificates representing the Series F
Shares and (ix) a notation shall be made in the appropriate records
of the Company indicating that the Series F Shares are subject to
restrictions on transfer set forth in this Agreement (including, but not
limited to, the Securityholders Agreement as incorporated by reference herein)
and, if the Company should in the future engage the services of a stock
transfer agent, appropriate stop-transfer restrictions will be issued to such
transfer agent with respect to the Series F Shares.

 

(d)                                 Compliance
with Rule 144.  If any of the Series F
Shares are to be disposed of in accordance with Rule 144, the Participant
shall transmit to the Company an executed copy of Form 144 (if required by
Rule 144) no later than the time such form is required to be transmitted
to the Commission for filing and such other documentation as the Company may
reasonably require to assure compliance with Rule 144 in connection with
such disposition.

 

(e)                                  Investor
Status.  The Participant represents
and warrants that, as of the date hereof, the Participant is an officer,
employee or director of the Company or a Subsidiary.

 

(f)                                    Restrictions
on Sale upon Public Offering.  The
Participant agrees that, in the event that the Company files a registration
statement under the Securities Act with respect to an underwritten public
offering of any Series F Shares, the Participant will not effect any
public sale (including a sale under Rule 144) or distribution of any Series F
Shares (other than as part of such underwritten public offering) during the 20
days prior to and the 180 days after the effective date of such registration
statement.

 

(g)                                 Section 83(b) Election.  The Participant agrees that, within 20 days
after the issuance of the Shares to the Participant, the Participant shall make
an election pursuant to section 83(b) of the Code, with respect to
the Series F Shares issued under this Agreement, and acknowledges that the
Participant will be solely responsible for any and all tax liabilities payable
by the Participant in connection with the Participant’s purchase and receipt of
the Series F Shares or attributable to the Participant’s failing to make
such an election.

 

6

 

8.                                       Representations
and Warranties of the Company.  The
Company represents and warrants to the Participant that (a) the
Company has been duly organized and is an existing limited liability company in
good standing under the laws of the State of Delaware, (b) this
Agreement has been duly authorized, executed and delivered by the Company and
constitutes a valid and legally binding obligation of the Company enforceable
against the Company in accordance with its terms, and (c) the Series F
Shares, when issued, delivered and paid for in accordance with the terms
hereof, will be duly and validly issued, fully paid and nonassessable.

 

9.                                       Miscellaneous.

 

(a)                                  Binding
Effect; Benefits; Assignability. 
This Agreement shall be binding upon and inure to the benefit of the
parties to this Agreement and their respective successors, heirs, executors and
assigns.  Nothing in this Agreement,
express or implied, is intended or shall be construed to give any person other
than the parties to this Agreement or their respective successors, heirs,
executors or assigns any legal or equitable right, remedy or claim under or in
respect of any agreement or any provision contained herein.  Neither this Agreement nor any right, remedy,
obligation or liability arising hereunder or by reason hereof shall be
assignable by the Company or the Participant without the prior written consent of
the other party; provided that the Company shall have the right to
assign any and all rights under Section 5(c).

 

(b)                                 Amendment.  This Agreement may be amended, modified or
supplemented only by a written instrument executed by the Participant and the
Company.

 

(c)                                  Entire
Agreement.  This Agreement, the
Securityholders Agreement , the Charter and any employment agreement which the
Participant has entered into with the Company constitute the entire agreement
between the Participant and the Company with respect to the subject matter
hereof, and supersede all undertakings and agreements, whether oral or in
writing, previously entered into by the parties with respect thereto.

 

(d)                                 Tax
Withholding.  Whenever any cash or
other payment is to be made hereunder or with respect to the Shares, the
Company or any Subsidiary shall have the power to withhold an amount (in cash
or in Common Shares otherwise deliverable to Participant upon vesting)
sufficient to satisfy federal, state, and local withholding tax requirements
relating to such transaction and the Company or such Subsidiary may defer the
payment of cash or other payment until such requirements are satisfied.

 

(e)                                  No
Right to Continued Employment. 
Nothing in the Plan or this Agreement shall interfere with or limit in
any way the right of the Company or any of its Subsidiaries to terminate the
Participant’s employment at any time, or confer upon the Participant any right
to continue in the employ of the Company or any of its Subsidiaries.

 

7

 

(f)                                    Section and
Other Headings, etc.  The section and
other headings contained in this Agreement are for reference purposes only and
shall not affect the meaning or interpretation of this Agreement.

 

(g)                                 Counterparts.  This Agreement may be executed in any number
of counterparts, each of which shall be deemed to be an original and all of
which together shall constitute one and the same instrument.  The parties hereto agree to accept a signed
facsimile copy of this Agreement as a fully binding original.

 

(h)                                 Applicable
Law.  THIS AGREEMENT SHALL BE
GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAW OF THE STATE OF NEW YORK,
WITHOUT REGARD TO THE APPLICATION OF RULES OF CONFLICT OF LAW THAT WOULD APPLY
THE LAWS OF ANY OTHER JURISDICTION, EXCEPT TO THE EXTENT THAT THE CORPORATE LAW
OF THE STATE OF DELAWARE SPECIFICALLY AND MANDATORILY APPLIES.

 

---Signature page follows---

 

8

 

IN WITNESS WHEREOF, the Company and the Participant
have executed this Agreement as of the date first above written.

 

	
   

  	
  INSIGHT COMMUNICATIONS

  COMPANY

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name:

  	
   

  
	
   

  	
   

  	
  Title:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  PARTICIPANT

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
   

  
	
   

  	
   

  	
  Name: «Name»

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  Address of the Participant:

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  «Address»

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Number of Series F Shares Granted

  	
  «Shares»

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  Grant Date

  	
  December 16, 2005

  	
   

  

 

9Exhibit 10.1

 

SEVERANCE AGREEMENT

 

This Severance Agreement (the “Agreement”) is entered into this 21st
day of December, 2005, by and between The J. Jill Group, Inc., a Delaware
corporation (“J. Jill”), on behalf of itself and the other entities encompassed
within the definition of the term “Company” as set forth in Section 7(c),
and Gordon R. Cooke (the “Employee”). 
This Agreement sets forth the agreement of the parties relating to the
severance arrangements for the Employee under certain circumstances.  Capitalized terms used in this Agreement are
defined in Section 7 hereof.

 

1.                                       Severance Pay and Associated Benefits Upon
a Qualified Termination.

 

(a)                                  Severance Benefits.  In the event of a Qualified Termination, and
subject to the provisions of Sections 2 and 5 below, the Company will provide
the payments and benefits described in this Section 1 (collectively, the “Severance
Benefits”).

 

(b)                                 Severance Pay. 
The Company will make a one-time, lump-sum payment to the Employee in
the gross amount of one year of the Employee’s annual base salary in effect
immediately prior to the Qualified Termination (the “Severance Payment”).

 

(c)                                  Medical Insurance. 
The Employee’s rights under the so-called COBRA statute (which gives the
Employee the right to continue to participate in the Company’s group medical
plans for a period of time at the Employee’s own expense) shall become
effective as of the Termination Date. 
For a 12-month period from the Termination Date, or until the Employee
becomes eligible for group medical plans from a new employer offering
substantially equal insurance, whichever is sooner,
the Company will pay the same portion of the premium for the Employee’s
existing medical and/or dental insurance as it would have paid (and the
Employee will pay the same portion of the premium for such insurance as the
Employee would have paid) if the Employee had continued to be employed at the
Company.  The Employee will notify the
Company’s Human Resources Department in writing within 72 hours of accepting
any such reemployment with such insurance eligibility.  Nothing herein shall prevent the Company from
making changes in its medical insurance plan, to the extent that such changes
are generally applicable to employees of the Company.

 

(d)                                 Withholdings. 
The Company may deduct from the Employee’s Severance Payment and any
other payments otherwise due to the Employee, such withholding taxes and
similar governmental payments and charges as may be required.

 

(e)                                  Timing for
Payment; Section 409A Restrictions.  Section 409A
of the Internal Revenue Code of 1986, as amended (the “Code”), places certain
restrictions on when severance payments may be issued.  In the event the Severance Benefits become
due, the Severance Payment shall be issued on the earlier of (i) the date
six (6) months after the Termination Date, or (ii) the death of the
Employee.  However, the restrictions in
the previous sentence shall not apply, and the Severance Payment shall be made
not later than the fifth day following the expiration of the seven-day revocation
period described in Section 2 without revocation of the Release and
Waiver by
the Employee, if (i) the Company determines in good faith that the
Severance Payment can be made at that time without violating the restrictions
under Section 409A, or (ii) the Severance Payment meets the following
requirements:

 

 

(A)  The entire amount of the Severance
Payment does not exceed the lesser of (I) two times the Employees’ annual
compensation or (II) two times the §401(a)(17) limit of the Code.  Each limit is determined using the
compensation or §401(a)(17) limit in the calendar year before the year in which
the Termination Date occurs, and for purposes of this exception, the Employee’s
annual compensation is determined with reference to Treasury Regulation Section 1.415-2(d)(2),
which generally includes base salary and bonuses; and

 

(B)  All amounts are paid by December 31
of the second calendar year following the year in which the Termination Date
occurs (e.g. if employment terminates in 2005, all payments must be made by December 31,
2007).

 

2.                                       Release and Waiver.

 

In return for
the payments and benefits provided to the Employee as set forth in Section 1
above, the Employee agrees to execute the Release and Waiver in the form
attached as Exhibit A hereto. 
For a period of seven days after the Employee has executed such Release
and Waiver, the Employee may revoke the Release and Waiver.  The Release and Waiver shall become
effective, and the Severance Benefits described in Section 1 shall become
due, only upon the expiration of the seven-day revocation period without revocation
of the Release and Waiver by the Employee. 
Notwithstanding the foregoing, the Company and the Employee agree that
the terms of this Agreement shall survive the Release and Waiver and that
claims to enforce the terms of this Agreement are not discharged by the Release
and Waiver.

 

3.                                       Cooperation.

 

In connection
with any termination of the Employee’s employment, the Employee agrees to
cooperate with the Company in promptly transitioning the Employee’s duties and
activities within the Company to the person or persons designated by the
Company to receive them.

 

4.                                       Confidentiality; Nondisparagement.

 

(a)                                  Confidentiality.  The Employee agrees to keep the terms of this
Agreement confidential, and agrees not to disclose the terms of this Agreement
to third parties except to the Employee’s immediate family and legal or
financial advisers and except as required by law or legal process and then only
after notice is given to the Company in accordance with Section 6(g) below
such that, where feasible, the Company will have a reasonable opportunity to
oppose disclosure.  The Employee
understands that any breach of this confidentiality provision will constitute
grounds for termination by the Company of the Employee’s employment for Cause
as defined in Section 7(a).

 

(b)                                 Nondisparagement. 
The Employee agrees not to take any action or make any statement,
written or oral, which disparages the Company, its officers, or its management,
business or personnel practices, or which disrupts or impairs the Company’s
normal operations.  The provisions of
this Section 4(b) shall not apply to any truthful statement required
to be made by the Employee in any legal proceeding or pursuant to any
governmental or regulatory investigation.

 

(c)                                  Non-Solicitation.  The
Employee agrees that, during the Employee’s employment with the Company and for
a period of one year after the termination of the Employee’s employment with
the Company for any reason, the Employee will not directly or 

 

2

 

indirectly solicit, attempt to hire, or hire
any employee of the Company (or any person who may have been employed by the
Company during the last year of the term of the Employee’s employment with the Company), or assist in such
hiring by any other person or business entity or encourage, induce or attempt
to induce any such employee to terminate his or her employment with the
Company.

 

5.                                       Remedies.  

 

The Employee
acknowledges and agrees that the Employee’s obligations arising under Section 4
above are of the essence to this Agreement and that the Employee’s breach of
any of these obligations will terminate the Company’s obligations to the
Employee under Section 1 of this Agreement.  Should the Employee breach any such
obligations the Employee shall further be required to pay back to the Company
the full value of any benefit that the Employee has derived under Section 1
above.  The Employee further acknowledges
and affirms that money damages cannot adequately compensate the Company for any
breach by the Employee of Section 4 of this Agreement and that the Company
is entitled to equitable relief in any Massachusetts or other court of
competent jurisdiction to prevent or otherwise restrain any actual or
threatened breach of the provisions of said Sections and/or compel specific
performance of, or other compliance with, the terms thereof.    

 

6.                                       Miscellaneous.

 

(a)                                  At-Will
Employment.  This Agreement is not a
contract to employ the Employee for a definite time period, and is not intended
to be and does not constitute a contract or part of a contractual agreement for
continued employment, either express or implied, between the Company and the
Employee, it being acknowledged that the Employee’s employment is “at will” and
that either the Employee or the Company may terminate the employment
relationship at any time, for any or no reason, with or without Cause and with
or without prior notice.

 

(b)                                 Successors and Assigns.  
This Agreement shall be binding upon and inure to the benefit of the
respective legal representatives, heirs, successors, assigns, and present and
former employees and agents of the parties hereto to the extent permitted by
law.

 

(c)                                  Attorneys Fees. 
Each party shall bear his or its own attorney’s fees and expenses.

 

(d)                                 Governing Law. 
This Agreement shall be interpreted in accordance with the substantive
laws of The Commonwealth of Massachusetts and without regard to any conflict of
laws provisions.

 

(e)                                  Effect on Other Agreements; Modification.  This
Agreement supersedes any prior oral or written understanding or agreement
relating to severance payments to be made to the Employee following termination
of employment with the Company (including
without limitation the letter agreement between the Employee and the Company
dated December 21, 1995), except
the Change in Control Severance Agreement between the Employee and the Company
dated as of the date hereof and the Agreement to Protect Corporate Property
between the Employee and the Company effective as of December 10, 2004.  This Agreement may be modified only in a
writing signed by both parties.

 

3

 

(f)                                    Execution.  This Agreement may be
executed in one or more counterparts, each of which when so executed shall be
deemed to be an original, and all such counterparts together shall constitute
but one and the same instrument.

 

(g)                                 Notices.  For the purpose of this
Agreement, notices and all other communications provided for in this Agreement
shall be in writing and shall be deemed to have been duly given when delivered
or when mailed by United States registered mail, return receipt requested,
postage prepaid, addressed to the respective addresses set forth below, or to
such other address as either party may have furnished to the other in writing
in accordance herewith, except that notice of change of address shall be
effective only upon actual receipt:

 

To the Company:

 

The J. Jill Group, Inc.

4 Batterymarch Park

Quincy, Massachusetts  02169-7468

Attention: Senior Vice President/Human
Resources

 

with a copy to:

 

David R. Pierson, Esq.

Foley Hoag LLP

Seaport World Trade Center West

155 Seaport Boulevard

Boston, Massachusetts 02210-2600

 

To the Employee:

 

Gordon R. Cooke

400 East 57th St.

New York, New York 10022

 

7.                                       Definitions.

 

For purposes of this Agreement, the following terms shall have the
meanings indicated below:

 

(a)                                  “Cause” for termination by the
Company of the Employee’s employment shall mean (i) any material breach by
the Employee of this Agreement or any other agreement to which the Employee and
the Company are both parties, (ii) any act or omission to act by the
Employee which may have a material and adverse effect on the Company’s business
or on the Employee’s ability to perform services for the Company, including,
without limitation, the commission of any crime involving moral turpitude or
any felony, or (iii) any material misconduct or material neglect of duties
by the Employee in connection with the business or affairs of the Company.

 

(b)                                 “Code”
shall have the meaning given that term in Section 1(e) hereof.

 

4

 

(c)                                  “Company” shall mean The J.
Jill Group, Inc., any successor to its business or assets which assumes
this Agreement, by operation of law or otherwise, and any of its Subsidiaries.

 

(d)                                 “Employee” shall mean the
individual named in the first paragraph of this Agreement.

 

(e)                                  “Good Reason” for termination
by the Employee of the Employee’s employment shall be a termination based on one
or more of the following events occurring without the Employee’s express
written consent:  (a) a substantial
adverse alteration in the nature or status of the Employee’s responsibilities; (b) a
reduction by the Company in the Employee’s annual base salary as in effect on
the date hereof or as the same may be increased from time to time; or (c) the
Company’s requiring that the Employee’s principal place of business be at an
office located more than 25 miles from (i) the site of the Employee’s
principal place of business immediately prior to the resignation or (ii) New
York, New York, except for required travel on the Company’s business to an
extent substantially consistent with the Employee’s past business travel
obligations.

 

(f)                                    “Qualified Termination” shall mean
the Employee’s employment by the Company is terminated (i) by the Employee
for Good Reason or (ii) by the Company for any reason other than for
Cause.

 

(g)                                 “Severance Benefits” shall have the
meaning given that term in Section 1(a) hereof.

 

(h)                                 “Severance Payment” shall have
the meaning given that term in Section 1(b) hereof.

 

(i)                                     “Subsidiary” shall mean any
corporation, partnership or other entity, at least a majority of the
outstanding voting shares or controlling interest of which is at the time
directly or indirectly owned or controlled (either alone or through
Subsidiaries or together with Subsidiaries) by The J. Jill Group, Inc. or
another Subsidiary.

 

(j)                                     “Termination Date” shall mean
the date that the Employee’s employment by the Company terminates for any
reason or no reason.

 

[signature page follows]

 

5

 

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

 

	
   

  	
  THE J. JILL GROUP, INC.

  
	
   

  	
   

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ Ruth M. Owades

  	
   

  
	
   

  	
   

  	
  Duly Authorized

  
	
   

  	
   

  
	
   

  	
  EMPLOYEE

  
	
   

  	
   

  
	
   

  	
  /s/ Gordon R. Cooke

  	
   

  
	
   

  	
  Gordon R. Cooke

  
					

 

6

 

EXHIBIT A

 

GENERAL RELEASE AND
WAIVER OF ALL CLAIMS

(INCLUDING
AGE DISCRIMINATION IN EMPLOYMENT ACT CLAIMS)

 

In
consideration of the payment, benefits and other agreements set forth in the
Severance Agreement dated December 21, 2005 between The J. Jill Group, Inc.
(“J. Jill”) and Gordon R. Cooke (the “Employee”) to which this General Release
and Waiver Of All Claims is attached (the “Agreement”), the Employee, for
himself and for his heirs, executors, estates, agents, representatives,
attorneys, insurers, successors and assigns (collectively, the “Releasors”),
hereby voluntarily releases and forever discharges J. Jill and its subsidiaries
(direct and indirect), affiliates, related companies, divisions, and
predecessor and successor companies (J. Jill and such subsidiaries, affiliates,
related companies, divisions and predecessor and successor companies being
collectively referred to as the “Company”), and each of its and their present,
former and future shareholders, officers, directors, employees, agents,
representatives, attorneys, insurers, heirs, successors and assigns in their
capacities as such (J. Jill, its subsidiaries, affiliates, related companies,
divisions and predecessor and successor companies and its and their present,
former and future shareholders, officers, directors, employees, agents,
representatives, attorneys, insurers, heirs, successors and assigns in their
capacities as such being collectively referred to as the “Releasees”) from all
actions, causes of action, suits, debts, sums of money, accounts, covenants,
contracts, agreements, promises, damages, judgments, demands and claims which the
Releasors ever had, or now have, or hereafter can, shall or may have, for, upon
or by reason of any matter or cause whatsoever arising from the beginning of
the world to the date of the execution of this Release and Waiver, whether
known or unknown, in law or equity, whether statutory or common law, whether
federal, state, local or otherwise, including but not limited to claims arising
out of or in any way related to the Employee’s employment by the Company
(including his hiring), or the termination of that employment, whether as a
contractor or employee, or any related matters (including but not limited to
claims, if any, arising under the Age Discrimination in Employment Act of 1967,
as amended, the Civil Rights Act of 1866, Title VII of the Civil Rights Act of
1964, as amended, the Civil Rights Act of 1991, as amended, the Americans With
Disabilities Act of 1990, as amended, the Family and Medical Leave Act of 1993,
the Immigration Reform and Control Act of 1986, the Massachusetts Law Against
Discrimination (Mass. Gen. Laws ch. 151B§1 et  seq.), the
Massachusetts Payment of Wages Act, the Massachusetts Civil and Equal Rights
Acts, and federal or Massachusetts laws, statutes and regulations, including
common or constitutional law).

 

The Employee
represents and warrants that the Employee knowingly and voluntarily waives all
rights or claims arising prior to the Employee’s execution of this Release and
Waiver that the Employee may have against the Releasees, or any of them, to
receive any payment, benefit or remedial relief as a consequence of an action
brought on the Employee’s behalf in any state or federal agency and/or as a
consequence of any litigation concerning any facts alleged in any such action.

 

The Employee
further represents that:

 

A-1

 

(a)                                  The
Company has advised the Employee to consult with an attorney of the Employee’s
choosing concerning the rights waived in this Release and Waiver.  The Employee has carefully read and fully
understands this Release and Waiver, and is voluntarily entering
into this Release and Waiver.

 

(b)                                  The Employee understands that the Employee has 21 days
to review this Release and Waiver prior to its execution.  If at any time prior to the end of the 21 day
period, the Employee executes this Release and Waiver, the Employee
acknowledges that such early execution is a knowing and voluntary waiver of the
Employee’s right to consider this Release and Waiver for at least 21 days and is due to the Employee’s belief
that the Employee has had ample time in which to consider and understand this
Release and Waiver and in which to review this Release and Waiver with an
attorney.

 

(c)                                  The Employee understands that, for a period
of seven days after the Employee has executed this Release and Waiver, the
Employee may revoke this Release and Waiver by giving notice in writing of such
revocation to the Company in accordance with Section 6(g) of the
Agreement.  If at any time after the end
of the seven-day period the Employee accepts any of the payments or benefits
provided by the Company as described in the Agreement, such acceptance will
constitute an admission by the Employee that the Employee did not revoke this
Release and Waiver during the revocation period and will further constitute an
admission by the Employee that this Release and Waiver has become effective and
enforceable.

 

(d)                                  The Employee understands the effect of this
Release and Waiver and that the Employee gives up any rights the Employee may
have, in particular but without limitation, under the Federal Age
Discrimination in Employment Act and the Massachusetts Law Against
Discrimination (Mass. Gen. Laws ch. 151B§1 et  seq.).

 

(e)                                  The Employee understands that the Employee is
receiving benefits pursuant to the Agreement that the Employee would not
otherwise be entitled to if the Employee did not enter into this Release and
Waiver.

 

(f)                                    The
Employee acknowledges that the severance pay and
associated benefits specified in the Agreement represent all payments and
benefits owed to the Employee and that upon receipt of said payments and
benefits, the Employee shall have received all payments and benefits owed to
the Employee in connection with the Employee’s employment with the Company and
that no additional payments or benefits are due.

 

Signed and sealed this          
day of                    ,
200  .

 

Please note that you may revoke this Release
and Waiver within 7 days of signing, in which case this Release and Waiver
shall be void.

 

	
   

  	
   

  	
   

  
	
   

  	
  Gordon R. Cooke

  

 

A-2

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