Document:

EX-4.14

 Exhibit 4.14 

UNLESS THIS CERTIFICATE IS PRESENTED BY AN AUTHORIZED REPRESENTATIVE OF THE DEPOSITORY TRUST COMPANY, A NEW YORK CORPORATION (“DTC”), NEW YORK, NEW
YORK, TO THE COMPANY OR ITS AGENT FOR REGISTRATION OF TRANSFER, EXCHANGE OR PAYMENT, AND ANY CERTIFICATE ISSUED IS REGISTERED IN THE NAME OF CEDE & CO. OR IN SUCH OTHER NAME AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC (AND ANY
PAYMENT IS MADE TO CEDE & CO. OR TO SUCH OTHER ENTITY AS IS REQUESTED BY AN AUTHORIZED REPRESENTATIVE OF DTC), ANY TRANSFER, PLEDGE OR OTHER USE HEREOF FOR VALUE OR OTHERWISE BY OR TO ANY PERSON IS WRONGFUL INASMUCH AS THE REGISTERED OWNER
HEREOF, CEDE & CO., HAS AN INTEREST HEREIN. 
 TRANSFERS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS IN WHOLE, BUT NOT IN PART, TO
NOMINEES OF DTC OR TO A SUCCESSOR THEREOF OR SUCH SUCCESSOR’S NOMINEE AND TRANSFERS OF PORTIONS OF THIS GLOBAL SECURITY SHALL BE LIMITED TO TRANSFERS MADE IN ACCORDANCE WITH THE RESTRICTIONS SET FORTH IN THE INDENTURE REFERRED TO ON THE REVERSE
HEREOF. 
  

	 No. ___ 
	 $_______ 

 as
revised by the Schedule of Increases and 
 Decreases in Global Debt Security attached hereto 

CUSIP No: 92343V CZ5 
 ISIN No: US92343VCZ53 

Common Code: 119521092 
 Verizon Communications
Inc. 
 4.672% Notes due 2055 
 Verizon
Communications Inc., a corporation duly organized and existing under the laws of the State of Delaware (herein referred to as the “Company”), for value received, hereby promises to pay to Cede & Co. or registered assigns, the
principal sum of ________________ Dollars ($ _________), as revised by the Schedule of Increases and Decreases in Global Debt Security attached hereto, on March 15, 2055, to pay interest on said principal sum from March 13, 2015, or from
the most recent interest payment date to which interest has been paid or duly provided for. Interest will be payable semiannually on March 15 and September 15 of each year, commencing September 15, 2015. Interest will accrue at the
rate of 4.672% per annum until the principal hereof shall have become due and payable, and on any overdue principal and (to the extent that payment of such interest is enforceable under applicable law) on any overdue installment of interest at
the same rate per annum. 
 The interest installment so payable, and punctually paid or duly provided for, on any interest payment date will, as provided in
the Indenture hereinafter referred to, be paid to the person in whose name this Debt Security (or one or more Predecessor Securities, as defined in said Indenture) is registered at the close of business on the regular record date for such interest
installment, which shall be the March 1 or September 1, as the case may be (whether or not a Business Day), next preceding such interest payment date. However, interest that the Company pays on the maturity date shall be payable to the
person to whom the principal hereof shall be payable. Any such interest installment not so punctually paid or duly provided for shall forthwith cease to be payable to the registered holder on such regular record date, and may be paid to the person
in whose name this Debt Security (or one or more Predecessor Securities) is registered at the close of business on a special record date to be fixed by the Trustee for the payment of such defaulted interest, notice of which shall be given to the
registered holders of this series of Debt Securities as provided in the Indenture, or may be paid at any time in any other lawful manner not inconsistent with the requirements of any securities exchange on which the Debt Securities may be listed,
and upon such notice as may be required by such exchange, all as more fully provided in the Indenture hereinafter referred to. The principal of and the interest on this Debt Security shall be payable at the office or agency of the Company maintained
for that purpose in the City of New York, State of New York in any coin or currency of the United States of America which at the time of payment is legal tender for payment of public and private debts; provided, however, that payment of interest may
be made at the option of the Company by check mailed to the registered holder at such address as shall appear in the Security Register. This Debt Security shall not be entitled to any benefit under the Indenture hereinafter referred to, or be valid
or become obligatory for any purpose, until the Certificate of Authentication hereon shall have been signed by or on behalf of the Trustee. 
 The
provisions of this Debt Security are continued on the reverse side hereof and such continued provisions shall for all purposes have the same effect as though fully set forth at this place. 

 IN WITNESS WHEREOF, the Company has caused this instrument to be executed. 

 

							
	Dated:				VERIZON COMMUNICATIONS INC.
				
					By		 
							Name:
							Title:

 CERTIFICATE OF AUTHENTICATION 

This is one of the Securities of the series designated herein referred to in the within-mentioned Indenture. 

U.S. Bank National Association 
 as
Trustee, Authenticating Agent and Security Registrar 
 By ________________________________________  

Authorized Signatory 
 Dated: 

 (FORM OF REVERSE OF DEBT SECURITY) 

This Debt Security is one of a duly authorized series of Debt Securities of the Company (herein sometimes referred to as the “Securities”), all
issued or to be issued in one or more series under and pursuant to an Indenture dated as of December 1, 2000, duly executed and delivered by the Company, as successor in interest to Verizon Global Funding Corp. and U.S. Bank National
Association, as successor to Wachovia Bank, National Association, formerly known as First Union National Bank (hereinafter referred to as the “Trustee”), as amended and supplemented (the “Indenture”), to which Indenture reference
is hereby made for a description of the rights, limitation of rights, obligations, duties and immunities thereunder of the Trustee, the Company and the holders of the Securities. By the terms of the Indenture, the Securities are issuable in series
which may vary as to amount, date of maturity, rate of interest and in other respects as in the Indenture provided. This Debt Security is one of the series designated on the face hereof (herein called the “Debt Securities”) unlimited in
aggregate principal amount. 
 Beneficial interests in this global Debt Security may be held in minimum denominations of $2,000 and integral multiples of
$1,000 in excess of $2,000. This global Debt Security shall be exchangeable for Debt Securities in definitive form registered in the names of persons other than the Depository or its nominee only if (i) the Depository notifies the Company that
it is unwilling or unable to continue as the Depository or if at any time such Depository is no longer registered or in good standing under the Securities Exchange Act of 1934 or other applicable statute and a successor depository is not appointed
by the Company within 90 days or (ii) the Company executes and delivers to the Trustee an Officers’ Certificate that the global Debt Security shall be so exchangeable. To the extent that the global Debt Security is exchangeable pursuant to
the preceding sentence, it shall be exchangeable for Debt Securities registered in such names as the Depository shall direct. Debt Securities represented by this global Debt Security that may be exchanged for Debt Securities in definitive form under
the circumstances described in this paragraph will be exchangeable only for Debt Securities in definitive form issued in minimum denominations of $2,000 and integral multiples of $1,000 in excess of $2,000. Notwithstanding any other provision
herein, this global Debt Security may not be transferred except as a whole by the Depository to a nominee of such Depository or by a nominee of such Depository to such Depository or another nominee of such Depository. 

In case an Event of Default, as defined in the Indenture, with respect to the Debt Securities shall have occurred and be continuing, the principal of all of
the Debt Securities may be declared, and upon such declaration shall become, due and payable, in the manner, with the effect and subject to the conditions provided in the Indenture. 

The Indenture contains provisions permitting the Company and the Trustee, with the consent of the holders of not less than a majority in aggregate principal
amount of the Securities of each series affected at the time outstanding, as defined in the Indenture, to execute supplemental indentures for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of
the Indenture or of any supplemental indenture or of modifying in any manner the rights of the holders of the Securities; provided, however, that no such supplemental indenture shall, among other things, (i) extend the fixed maturity of any
Securities of any series, or reduce the principal amount thereof, or reduce the rate or extend the time of payment of interest thereon, or reduce any premium payable upon the redemption thereof, without the consent of the holder of each Debt
Security so affected or (ii) reduce the aforesaid percentage of Debt Securities, the holders of which are required to consent to any such supplemental indenture, without the consent of the holders of each Debt Security then outstanding and
affected thereby. The Indenture also contains provisions permitting the holders of a majority in aggregate principal amount of the Securities of any series at the time outstanding, on behalf of the holders of Securities of such series, to waive any
past default in the performance of any of the covenants contained in the Indenture, or established pursuant to the Indenture with respect to such series, and its consequences, except a default in the payment of the principal of, or premium, if any,
or interest on any of the Securities of such series. Any such consent or waiver by the registered holder of this Debt Security (unless revoked as provided in the Indenture) shall be conclusive and binding upon such holder and upon all future holders
and owners of this Debt Security and of any Debt Security issued in exchange herefor or in place hereof (whether by registration of transfer or otherwise), irrespective of whether or not any notation of such consent or waiver is made upon this Debt
Security. 
 No reference herein to the Indenture and no provision of this Debt Security or of the Indenture shall alter or impair the obligation of the
Company, which is absolute and unconditional, to pay the principal of and interest on this Debt Security at the times and place and at the rate and in the money herein prescribed. 

The Debt Securities are issuable as registered Debt Securities without coupons. 

The Debt Securities shall be in minimum denominations of $2,000 and integral multiples of $1,000 in excess of $2,000. Debt Securities may be exchanged, upon
presentation thereof for that purpose, at the office or agency of the Company in the City of New York, State of New York, for other Debt Securities of authorized denominations, and for a like aggregate principal amount and series, and upon payment
of a sum sufficient to cover any tax or other governmental charge in relation thereto. 
 The Debt Securities may be redeemed on not less than 30 nor more
than 60 days’ prior notice given as provided in the Indenture, in whole or from time to time in part, at any time prior to maturity at the option of the Company, at a redemption price equal to the greater of (i) 100% of the principal
amount thereof, or (ii) the sum of the present values of the remaining scheduled payments of principal and interest thereon (exclusive of interest accrued to the date of redemption) discounted to the date of redemption on a semiannual basis
(assuming a 360-day year consisting of twelve 30-day months) at the Treasury Rate plus 35 basis points, plus, in either case, accrued and unpaid interest on the principal amount being redeemed to, but excluding, such redemption date. 

 “Treasury Rate” means, with respect to any redemption date, (i) the yield, under the heading which
represents the average for the immediately preceding week, appearing in the most recently published statistical release published by the Board of Governors of the Federal Reserve System designated as “Statistical Release H. 15(519)” or any
successor publication which is published weekly by the Board of Governors of the Federal Reserve System and which establishes yields on actively traded United States Treasury securities adjusted to constant maturity under the caption “Treasury
Constant Maturities,” for the maturity corresponding to the Comparable Treasury Issue (if no maturity is within three months before or after the Remaining Life, yields for the two published maturities most closely corresponding to the
Comparable Treasury Issue will be determined and the Treasury Rate shall be interpolated or extrapolated from those yields on a straight-line basis, rounding to the nearest month), or (ii) if such release (or any successor release) is not
published during the week preceding the calculation date or does not contain such yields, the rate per annum equal to the semiannual equivalent yield to maturity of the Comparable Treasury Issue, calculated using a price for the Comparable Treasury
Issue (expressed as a percentage of its principal amount) equal to the Comparable Treasury Price for the redemption date. 
 “Business Day” means
any calendar day that is not a Saturday or a Sunday or legal holiday in New York, New York and on which commercial banks are open for business in New York, New York. 

“Comparable Treasury Issue” means the United States Treasury security selected by the Independent Investment Banker as having a maturity comparable
to the remaining term (the “Remaining Life”) of the Debt Securities to be redeemed that would be utilized, at the time of selection and in accordance with customary financial practice, in pricing new issues of corporate debt securities of
comparable maturity to the remaining term of such Debt Security. 
 “Independent Investment Banker” means an independent investment banking or
commercial banking institution of national standing appointed by the Company. 
 “Comparable Treasury Price” means (i) the average of three
Reference Treasury Dealer Quotations for such redemption date, or (ii) if the Independent Investment Banker is unable to obtain three Reference Treasury Dealer Quotations, the average of all quotations obtained. 

“Reference Treasury Dealer” means (i) any independent investment banking or commercial banking institution of national standing and any of its
successors appointed by the Company and any of its successors, provided, however, that if any of the foregoing shall cease to be a primary U.S. Government securities dealer in the United States, referred to as a Primary Treasury Dealer, the Company
shall substitute therefor another Primary Treasury Dealer, and (ii) any other Primary Treasury Dealer selected by the Independent Investment Banker and approved in writing by the Company. 

“Reference Treasury Dealer Quotations” means, with respect to each Reference Treasury Dealer and any redemption date, the average, as determined by
the Independent Investment Banker, of the bid and asked prices for the Comparable Treasury Issue (expressed in each case as a percentage of its principal amount) quoted in writing to the Independent Investment Banker at 3:30 p.m., New York City
time, on the third Business Day preceding such redemption date. In the event of redemption of this Debt Security in part only, a new Debt Security of like tenor for the unredeemed portion hereof and otherwise having the same terms as this Debt
Security shall be issued in the name of the holder hereof upon the presentation and surrender hereof. 
 As provided in the Indenture and subject to certain
limitations therein set forth, this Debt Security is transferable by the registered holder hereof on the Security Register of the Company, upon surrender of this Debt Security for registration of transfer at the office or agency of the Company in
the City of New York, State of New York accompanied by a written instrument or instruments of transfer in form satisfactory to the Company or the Security Registrar duly executed by the registered holder hereof or his attorney duly authorized in
writing, and thereupon one or more new Debt Securities of authorized denominations and for the same aggregate principal amount and series will be issued to the designated transferee or transferees. No service charge will be made for any such
transfer, but the Company may require payment of a sum sufficient to cover any tax or other governmental charge payable in relation thereto. 
 Prior to due
presentment for registration of transfer of this Debt Security, the Company, the Trustee, any paying agent and any Security Registrar for the Debt Securities may deem and treat the registered holder hereof as the absolute owner hereof (whether or
not this Debt Security shall be overdue and notwithstanding any notice of ownership or writing hereon made by anyone other than the Security Registrar for the Debt Securities) for the purpose of receiving payment of or on account of the principal
hereof and (subject to Section 310 of the Indenture) interest due hereon and for all other purposes, and neither the Company nor the Trustee nor any paying agent nor any Security Registrar for the Debt Securities shall be affected by any notice
to the contrary. 
 No recourse shall be had for the payment of the principal of or the interest on this Debt Security, or for any claim based hereon, or
otherwise in respect hereof, or based on or in respect of the Indenture, against any incorporator, stockholder, officer or 

  
 2 

 
director, past, present or future, as such, of the Company or of any predecessor or successor corporation, whether by virtue of any constitution, statute or rule of law, or by the enforcement of
any assessment or penalty or otherwise, all such liability being, by the acceptance hereof and as part of the consideration for the issuance hereof, expressly waived and released. 

The Depository by acceptance of this global Debt Security agrees that it will not sell, assign, transfer or otherwise convey any beneficial interest in this
global Debt Security unless such beneficial interest is in an amount equal to an authorized denomination for Debt Securities of this series. 
 Capitalized
terms used herein and not otherwise defined herein shall have the respective meanings set forth in the Indenture. 

  
 3 

 SCHEDULE OF INCREASES OR DECREASES IN GLOBAL DEBT SECURITY 

The following increases or decreases in this global Debt Security have been made: 

 

									
	 Date of Exchange
	  	 Amount of decrease in

principal amount of this
 global Debt
Security
	  	 Amount of increase in

principal amount of
 this global Debt
Security
	  	 Principal amount of this

global Debt Security
 following such
decrease or
 increase
	  	 Signature of authorized
signatory
of Trustee

  
 4Exhibit 10.1

 

CONSULTING AGREEMENT

 

This Consulting Agreement (the “Agreement”) is made as of July 6, 2015 (the “Effective Date”), by and among Bradley Lukow (“Consultant”) and 99 Cents Only Stores LLC (the “Company”).

 

RECITALS

 

WHEREAS, Consultant was formerly the Chief Financial Officer, Secretary and Treasurer of the Company.

 

WHEREAS, the Company desires to engage Consultant as an independent contractor to provide the Services described herein.

 

THEREFORE, the Company and Consultant agree as follows:

 

ARTICLE I
 CONSULTING ENGAGEMENT

 

1.1                   Services.

 

(a)                                 The Company hereby engages Consultant to perform, and Consultant agrees to perform, the following services (the “Services”) to the extent requested by the President and Chief Executive Officer (which may include the Interim President and Chief Executive Officer) (“CEO”) of the Company during the Term (as defined below), for and to the benefit of the Company (the “Engagement”):

 

(i)                                     Providing transition services to the incoming Chief Financial Officer (the “CFO”) to the extent requested by the CEO;

 

(ii)                                  Preparing a weekly status report for the Company in form and substance agreed to by Consultant and the CEO; and

 

(iii)                               Other services as reasonably requested by the CEO.

 

(b)                                 Consultant agrees that proper performance of the Services will require between five and ten hours of his business time each week.  Consultant and the Company agree that Consultant is required to provide less than 20% of the average level of services performed during the term of Consultant’s employment with the Company.

 

(c)                                  Consultant shall observe all rules, policies and practices of the Company applicable to independent contractors.  The Company shall own all data, information, and other work developed or obtained by Consultant pursuant to this Agreement.  Consultant shall be solely responsible for obtaining any workers compensation insurance or similar insurance or disability coverage for himself, and Consultant waives all rights to recovery from the Company or any of its affiliates, or coverage pursuant to the Company’s or any of its affiliates’ insurance policies for, any injuries that Consultant sustains while performing services for or on behalf of the Company or its affiliates.

 

(d)                                 Consultant may not use the name logos, trademarks, or depictions of the Company or any of its affiliates or any variation thereof in any promotional, advertising or marketing literature, or in any other way.

 

 

(e)                                  During the Term, Consultant shall (i) not directly or indirectly discuss the Company or any of its affiliates with any vendor, supplier, lender, partner, insurer or prospective employee of the Company or any of its affiliates, except as expressly approved by the CEO, and (ii) promptly inform the CEO of all communications with any such vendor, supplier, lender, partner, insurer or prospective employee.

 

1.2                   Consulting Fee.  As consideration for the Services, the Company shall compensate Consultant at the rate of $3,000.00 per month (the “Monthly Consulting Fee”) during the Term (pro-rated for any partial months), payable in arrears beginning on the 30th day following the Effective Date; provided that the Company shall have the right to withhold or offset such amounts to satisfy Consultant’s obligations pursuant to Section 1.3(a).

 

1.3                   Signing Bonus Repayment.  Consultant acknowledges that pursuant to the terms of the Offer Letter dated October 9, 2014 and the Term Sheet attached thereto, Consultant is required to repay his Signing Bonus of $550,000 (the “Signing Bonus”) to the Company within 60 days following June 21, 2015.  Notwithstanding the foregoing, Consultant shall be required to repay the Signing Bonus as follows:

 

(a)                                 Consultant shall pay the full Monthly Consulting Fee to the Company each month during the Term toward repayment of the Signing Bonus.

 

(b)                                 If (i) the Engagement is terminated by the Company pursuant to Section 2.2(a)(ii), by Consultant pursuant to Section 2.3, or upon expiration of the Engagement pursuant to Section 2.4 and (ii) Consultant executes, and does not revoke, a valid release of claims in favor of the Company in the form attached hereto as Exhibit A within 30 days following the Termination Date (the “Release”), Consultant shall not be required to repay the portion of the Signing Bonus remaining after application of the Monthly Consulting Fee pursuant to Section 1.3(a).

 

(c)                                  If (i) the Engagement is terminated by the Company pursuant to Section 2.2(a)(i) or (ii) Consultant fails to execute, or executes and then revokes, the Release within 30 days following the Termination Date Consultant shall be required to repay the portion of the Signing Bonus remaining after application of the Monthly Consulting Fee pursuant to Section 1.3(a), within 60 days of the Termination Date.

 

1.4                   Expense Reimbursement.

 

(a)                                 The Company shall reimburse Consultant in accordance with the Company’s standard policies and procedures for all documented reasonable out-of-pocket expenses that have been incurred (i) with the written pre-approval of the CEO, (ii) during the Term and (iii) in connection with the provision of the Services.  Consultant shall not use any facilities, funds, or equipment owned or administered by the Company or any of its affiliates in the performance of the Services, and shall not be entitled to any reimbursement for the use of his own facilities and equipment.

 

(b)                                 All expense reimbursement will be subject to the Company’s expense reimbursement policies as the same are in effect from time to time.

 

2

 

1.5                   Status of Consultant as Independent Contractor.  Consultant shall operate as an independent contractor to the Company. This Agreement shall not create, or be construed to create, any association, partnership, joint venture, employee or agency relationship between Consultant, on the one hand, and the Company, on the other.  Consultant shall not directly or indirectly represent himself as (or otherwise imply that he is) a partner, member, principal, officer, employee, or agent of the Company or any of its affiliates.  Without limiting the foregoing:

 

(a)                                 Subject to the terms and conditions of this Agreement, Consultant shall retain discretion over the methods, details, means, techniques and procedures by which the Services are rendered, as long as the objectives set forth in Section 1.1(a) are met in a manner satisfactory to the Company.

 

(b)                                 Consultant is not eligible for, and Consultant hereby waives any claim to, wages, incentive compensation, profit sharing participation, stock options, other equity awards, health coverage and any other benefits provided to employees of the Company or any of its affiliates, including the stock options granted to Consultant pursuant to its 2012 Stock Incentive Plan and the Non-Qualified Stock Option Agreement between Consultant and Number Holdings, Inc. dated February 5, 2015.  Concurrently with the execution of this Agreement, Consultant shall execute the acknowledgement attached hereto as Attachment I.

 

(c)                                  If applicable, Consultant will receive an IRS 1099 statement and related tax statements. Consultant will file all required tax returns and pay all taxes (including, without limitation,  estimated taxes, self-employment and all other taxes, fees, additions to tax, interest and penalties that may be assessed, imposed, or incurred as a result of the Monthly Consulting Fees or other compensation provided hereunder) in accordance with all provisions of applicable law.  At the Company’s request, Consultant shall provide proof of required tax payments.

 

1.6                   No Commitments.  Consultant shall not have the power or authority (and shall not hold himself out as having the power or authority) to enter into contracts, agreements or understandings, or to borrow money or incur debts or liabilities, on behalf of the Company or any of its affiliates.

 

1.7                   Representations. Consultant represents and warrants that (a) he has the right, power and authority to enter into this Agreement and to perform fully all of his obligations hereunder and (b) its execution, delivery and performance of this Agreement and the performance of the Services by Consultant do not and will not conflict with or result in any breach or default under any other agreement of Consultant.

 

ARTICLE II
 TERM AND TERMINATION

 

2.1                   Term.

 

(a)                                 Definitions.

 

(i)                                     “Term” means the period from the Effective Date through the Termination Date.

 

(ii)                                  “Expiration Date” means June 21, 2016.

 

3

 

(iii)                               “Termination Date” means the Expiration Date, or if earlier, the date of termination of the Engagement pursuant to Section 2.2, 2.3 or 2.4 or otherwise.

 

(iv)                              “Cause” means:

 

(A)                               Consultant’s (x) being indicted for or charged with a felony under United States or applicable state law (or Canadian law equivalent) or (y) conviction of, or plea of guilty or nolo contendere to a misdemeanor where imprisonment is imposed (other than for a traffic-related offense);

 

(B)                               perpetration by Consultant of an illegal act, dishonesty, or fraud that could cause economic injury to the Company or any of its affiliates or any act of moral turpitude by Consultant;

 

(C)                               Consultant’s insubordination or refusal to perform his duties or responsibilities for any reason other than illness or incapacity or unsatisfactory performance of his duties for the Company or any of its affiliates;

 

(D)                               willful and deliberate failure by Consultant to perform Consultant’s duties;

 

(E)                                Consultant’s willful misconduct or gross negligence with regard to the Company or any of its affiliates;

 

(F)                                 Consultant’s unlawful appropriation of a material corporate opportunity of the Company or any of its affiliates; or

 

(G)                               Consultant’s breach of any agreement with the Company or any of its affiliates, including the Fair Competition Agreement between Consultant and the Company and any other confidentiality, nondisparagement or other restrictive covenant entered into between Consultant and the Company or any of its affiliates.

 

(b)                                 The Company on the one hand, and Consultant, on the other, shall have the right to terminate the Engagement for any reason or for no reason prior to the Expiration Date, in accordance with Section 2.2 or 2.3, as applicable.

 

2.2                   Termination by the Company.

 

(a)                                 The Company may terminate the Engagement:

 

(i)                                     immediately in the event of any action by Consultant constituting Cause; or

 

(ii)                                  (A) with 30 days’ notice to Consultant at any time prior to December 21, 2015, or (B) immediately at any time on or after December 21, 2015, in each case, for any reason other than any action by Consultant constituting Cause.

 

(b)                                 In the event of a termination of the Engagement by the Company pursuant to Section 2.2(a), Consultant shall be entitled to all accrued Monthly Consulting Fees, subject to Section 1.3(a), and all approved and unpaid Expense Reimbursements, in each case, through the Termination Date, and to no other amounts.  Consultant’s obligation to repay the Signing Bonus in connection with such termination shall be determined in accordance with Section 1.3.

 

4

 

2.3                   Termination by Consultant. Consultant may terminate the Engagement prior to the Expiration Date upon written notice to the Company.  Consultant shall be entitled to all accrued Monthly Consulting Fees, subject to Section 1.3(a), and approved and unpaid Expense Reimbursements, in each case, through the Termination Date, and to no other amounts.  Consultant’s obligation to repay the Signing Bonus in connection with such termination shall be determined in accordance with Section 1.3.

 

2.4                   Expiration.  Unless earlier terminated as described above, the Engagement shall terminate automatically on the Expiration Date, in which case Consultant shall be entitled to all accrued Monthly Consulting Fees, subject to Section 1.3(a), and approved and unpaid Expense Reimbursements, in each case, through the Termination Date and to no other amounts.  Consultant’s obligation to repay the Signing Bonus in connection with such termination shall be determined in accordance with Section 1.3.

 

ARTICLE III
 GENERAL PROVISIONS

 

3.1                   Governing Law.  This Agreement, the terms of Consultant’s Engagement, and any contest, dispute, controversy or claim arising hereunder or related hereto (collectively, “Disputes”), shall be governed by and construed in accordance with the laws of the State of California without regard to conflict of law principles that would require the application of the laws of another jurisdiction.

 

3.2                   Dispute Resolution.  All Disputes shall be resolved in accordance with the Arbitration of Disputes Agreement previously executed by Consultant.

 

3.3                   Notification.  Consultant shall notify the Company within 15 days of accepting any other employment, consulting, independent contractor or any other position pursuant to which Consultant provides services to a third party.

 

3.4                   Entire Agreement. This Agreement, together with any other documents incorporated herein by reference and related exhibits and schedules, constitutes the sole and entire agreement of the parties to this Agreement with respect to the subject matter contained herein, and supersedes all prior and contemporaneous understandings, agreements, representations and warranties, both written and oral, with respect to such subject matter, including the letter to Consultant from Andrew Giancamilli as CEO, dated June 19, 2015.  This Agreement does not supersede the Separation and Release Agreement dated June 26, 2015, the Arbitration of Disputes Agreement and the Fair Competition Agreement previously executed by Consultant, which remain in full force and effect notwithstanding Consultant’s status as an independent contractor of the Company.

 

3.5                   Severability.  If any provision of this Agreement shall be held to be invalid or unenforceable for any reason, the remaining provisions shall continue to be valid and enforceable.  If a court finds that any provision of this Agreement is invalid or unenforceable, but that by limiting such provision it would become valid and enforceable, then such provision shall be deemed to be written, construed and enforced as so limited.

 

3.6                   Notices.  All notices required or permitted under this Agreement shall be in writing and shall be deemed delivered when delivered in person or deposited in the U.S. mail, postage prepaid, or transmitted via facsimile or electronic mail addressed as follows:

 

5

 

If to the Company:

 

99 Cents Only Stores LLC

4000 Union Pacific Avenue
 Commerce, CA 90023
 Facsimile: (323) 307-9611
 Attention: General Counsel

 

If to Consultant, at Consultant’s then-current home address on file with the Company.

 

3.7                   Assignment and Transfer.  Consultant’s rights and obligations under this Agreement shall not be transferable by assignment or otherwise, and any purported assignment, transfer or delegation thereof shall be void.  This Agreement shall inure to the benefit of, and be binding upon and enforceable by, any purchaser of substantially all of the Company’s assets, any corporate successor to the Company or any assignee thereof.

 

3.8                   Code Section 409A Compliance.  The intent of the parties is that payments and benefits under this Agreement comply with, or be exempt from, Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”) and the regulations and guidance promulgated thereunder (collectively “Code Section 409A”) and, accordingly, to the maximum extent permitted, this Agreement shall be interpreted to be in compliance therewith; provided, that the Company does not guarantee to Consultant any particular tax treatment with respect to this Agreement and any payments hereunder.  In no event whatsoever shall the Company be liable for any additional tax, interest or penalties that may be imposed on Consultant by Code Section 409A or any damages for failing to comply with Code Section 409A.

 

For purposes of Code Section 409A, Consultant’s right to receive any installment payments pursuant to this Agreement shall be treated as a right to receive a series of separate and distinct payments.  Whenever a payment under this Agreement specifies a payment period with reference to a number of days (e.g., “payment shall be made within ten calendar days following the date of termination”), the actual date of payment within the specified period shall be within the sole discretion of the Company.  In no event may Consultant, directly or indirectly, designate the calendar year of any payment to be made under this Agreement that is considered non-qualified deferred compensation.

 

With regard to any provision herein that provides for reimbursement of costs and expenses or in-kind benefits, except as permitted by Code Section 409A, (i) the right to reimbursement or in-kind benefits shall not be subject to liquidation or exchange for another benefit; (ii) the amount of expenses eligible for reimbursement, or in-kind benefits, provided during any taxable year shall not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other taxable year; provided, that this clause (ii) shall not be violated with regard to expenses reimbursed under any arrangement covered by Internal Revenue Code Section 105(b) solely because such expenses are subject to a limit related to the period the arrangement is in effect; and (iii) such payments shall be made on or before the last day of the Consultant’s taxable year following the taxable year in which the expense was incurred.

 

3.9                   Interpretation.  The headings and captions of this Agreement are provided for convenience only and are intended to have no effect in construing or interpreting this Agreement.  The language in all parts of this Agreement shall be in all cases construed according to its fair meaning and not strictly for or against the Company or Consultant.  As used herein:  (a) reference to any agreement, document or instrument means such agreement, document or instrument as amended or modified and in effect from time to time in accordance with the terms thereof; (b) reference to any law, rule or regulation

 

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means such law, rule or regulation as amended, modified, codified, replaced or reenacted, in whole or in part, and in effect from time to time, including rules and regulations promulgated thereunder, and reference to any section or other provision of any law, rule or regulation means that provision of such law, rule or regulation from time to time in effect and constituting the substantive amendment, modification, codification, replacement or reenactment of such section or other provision; (c) “hereunder,” “hereof,” “hereto,” and words of similar import shall be deemed references to this Agreement as a whole and not to any particular article, section or other provision hereof; (d) “including” (and with correlative meaning “include”) means including without limiting the generality of any description preceding such term; (e) “or” is used in the inclusive sense of “and/or”; and (f) references to documents, instruments or agreements shall be deemed to refer as well to all addenda, exhibits, schedules or amendments thereto.

 

3.10            Counterparts.  This Agreement may be executed in multiple counterparts, each of which shall be considered to have the force and effect of an original.

 

3.11            Each Party the Drafter.  Consultant understands the terms and conditions set forth in this Agreement and acknowledges having had adequate time to consider whether to agree to the terms and conditions and to consult a lawyer or other advisor of Consultant’s choice.  This Agreement and the provisions contained herein shall not be construed or interpreted for or against any party to this Agreement because that party drafted or caused that party’s legal representative to draft any of its provisions.

 

3.12            Amendment and Waiver.  This Agreement may be amended, waived or discharged only by a writing signed by Consultant and by a duly authorized representative of the Company.  No failure or neglect of either party hereto in any instance to exercise any right, power or privilege hereunder or under law shall constitute a waiver of any other right, power or privilege or of the same right, power or privilege in any other instance.  All waivers by either party hereto must be contained in a written instrument signed by the party to be charged and, in the case of the Company, by a duly authorized representative of the Company. The rights and remedies provided by this Agreement are cumulative, and the exercise of any right or remedy by either party hereto (or by its successor), whether pursuant to this Agreement, to any other agreement, or to law, shall not preclude or waive its right to exercise any or all other rights and remedies.

 

[Signature Page Follows]

 

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IN WITNESS WHEREOF, the parties execute this Agreement.

 

	
 
    	
99 Cents Only Stores LLC
    
	
 
    	
 
    	
 
    
	
 
    	
 
    	
 
    
	
 
    	
By: 
    	
/s/ Paul Dolby
    
	
 
    	
Title: 
    	
Senior Vice President —   Human Resources
    
	
 
    	
 
    	
 
    
	
 
    	
 
    
	
 
    	
Bradley Lukow
    
	
 
    	
 
    
	
 
    	
 
    
	
 
    	
/s/ Bradley Lukow
    

 

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EXHIBIT A

 

FORM OF RELEASE

 

 

ATTACHMENT I

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