Document:

Exhibit

Exhibit 10.3
Stock Option Grant Agreement
 	
			
	Name
[Participant Name]
	Employee ID
[Employee ID]

	Date of Grant
[Grant Date]
	Option Grant Price Per Share 
[Grant Price]

	Number of NSO Shares Granted
[Shares Granted]

This Non-Qualified Stock Option ("NSO") Grant Agreement (“Agreement”) gives you the right to purchase the total number of shares of Common Stock of 50 par value ("Common Stock") of J. C. Penney Company, Inc. ("Company") at the Option Grant Price Per Share shown above.  This grant is subject to all the terms, rules, and conditions of the 2016 J. C. Penney Company, Inc. Long-Term Incentive Plan (“Plan”) and the implementing resolutions (“Resolutions”) approved by the Human Resources and Compensation Committee (“Committee”) of the Company’s Board of Directors (“Board”).  Capitalized terms not otherwise defined herein shall have the respective meanings assigned to them in the Plan and the Resolutions.  In order to receive the benefits under this Agreement, you must affirmatively accept the terms of this Agreement by signing it, whether physically or via alternative electronic means acceptable to the Company, acknowledging your acceptance of the terms under which this Stock Option award is granted.  You have 90 days from the date this Agreement is made available to you, either physically or electronically to accept the terms of this Agreement. If you do not accept the terms of this Agreement in the applicable 90 day period the Stock Options that are the subject of this Agreement will be forfeited by you.  

Vesting Terms
This NSO will generally become exercisable (“Vest”) in [VESTING DATE] (the “Vest Date”). You must remain continuously employed by the Company through each respective Vest Date (unless your Employment terminates due to your Retirement, Disability, death, job restructuring, reduction in force, mutual consent, or unit closing) to Vest in your NSO; otherwise the NSOs granted will be forfeited.  

Employment Termination 
If your Employment terminates due to Retirement, Disability, death, job restructuring, reduction in force, mutual consent, or unit closing before any applicable Vest Date of your NSO, your NSO will vest on a pro-rata basis.  The pro-rata portion of your NSO that will vest will be determined by multiplying the “Number of NSO Shares Granted” from above by a fraction, the numerator of which is the number of months from the Grant Date to the effective date of your termination of Employment, inclusive, and the denominator of which is [VESTING MONTHS].  The number of NSOs that have already vested according to the terms herein, if any, will be subtracted from the prorated amount and the remaining prorated NSOs will become immediately exercisable.  Any NSOs which have not already vested or for which vesting is not accelerated will expire on such employment termination. 

Notwithstanding the foregoing, if you are party to a termination agreement, and your Employment is terminated due to an involuntary termination of Employment without Cause under, and as defined in that termination agreement, then the number of NSOs that will become exercisable will be determined according to the terms of the underlying termination agreement subject to (a) the execution and delivery of a release in such form as may be required by the Company and (b) the expiration of the applicable revocation period for such release.

If you voluntarily terminate your Employment or your Employment is terminated for Cause then all unvested and unexercised NSOs will expire as of the date of your Employment termination.
 
Please see the Plan for all terms, rules, and conditions, including the post-termination of Employment exercise period applicable to this NSO.  

Covenants and Representations
By accepting this award you hereby acknowledge that your duties to the Company require access to and creation of the Company’s confidential or proprietary information and trade secrets (collectively, the “Proprietary Information”).  The Proprietary Information has been and will continue to be developed by the Company and its subsidiaries and affiliates at substantial cost and constitutes valuable and unique property of the Company.  You further acknowledge that due to the nature of your position, you will have access to Proprietary Information affecting plans and operations 

in every location in which the Company (and its subsidiaries and affiliates) does business or plans to do business throughout the world, and your decisions and recommendations on behalf of the Company may affect its operations throughout the world.  Accordingly, by accepting this award you acknowledge that the foregoing makes it reasonably necessary for the protection of the Company’s business interests that you agree to the following covenants in connection with (i) your involuntary separation from service, as defined under Treasury regulation §1.409A-1(n), other than for Cause, or (ii) your voluntary separation from service:
Confidentiality.  You hereby covenant and agree that you shall not, without the prior written consent of the Company, during your employment with the Company or at any time thereafter disclose to any person not employed by the Company, or use in connection with engaging in competition with the Company, any Proprietary Information of the Company.
		
	(a)
	It is expressly understood and agreed that the Company’s Proprietary Information is all nonpublic information relating to the Company’s business, including but not limited to information, plans, and strategies regarding suppliers, pricing, marketing, customers, hiring and terminations, employee performance and evaluations, internal reviews and investigations, short term and long range plans, acquisitions and divestitures, advertising, information systems, sales objectives and performance, as well as any other nonpublic information, the nondisclosure of which may provide a competitive or economic advantage to the Company. Proprietary Information shall not be deemed to have become public for purposes of this Agreement where it has been disclosed or made public by or through anyone acting in violation of a contractual, ethical, or legal responsibility to maintain its confidentiality.

		
	(b)
	In the event you receive a subpoena, court order, or other summons that may require you to disclose Proprietary Information, on pain of civil or criminal penalty, you will promptly give notice to the Company of the subpoena or summons and provide the Company an opportunity to appear at the Company’s expense and challenge the disclosure of its Proprietary Information, and you shall provide reasonable cooperation to the Company for purposes of affording the Company the opportunity to prevent the disclosure of the Company’s Proprietary Information.

		
	(c)
	Nothing in this Agreement shall restrict you from, directly or indirectly, initiating communications with or responding to any inquiry from, or providing testimony before, the Securities and Exchange Commission (“SEC”), Financial Industries Regulatory Authority (“FINRA”), or any other self-regulatory organization or state or federal regulatory authority.

Nonsolicitation of Employees.  You hereby covenant and agree that during your employment with the Company and, in the event you, as noted above, (i) have a voluntary separation from service, or (ii) have an involuntary separation from service other than for Cause,  that for a period equal to (x) 18 months, if you are an Executive Vice President on the date of your separation from service, or (y) 12 months, if you are a Senior Vice President, thereafter, you shall not, without the prior written consent of the Company, on your own behalf or on the behalf of any person, firm or company, directly or indirectly, attempt to influence, persuade or induce, or assist any other person in so persuading or inducing, any of the employees of the Company (or any of its subsidiaries or affiliates) to give up his or her employment with the Company (or any of its subsidiaries or affiliates), and you shall not directly or indirectly solicit or hire employees of the Company (or any of its subsidiaries or affiliates) for employment with any other employer, without regard to whether that employer is a Competing Business, as defined below.
Noninterference with Business Relations. You hereby covenant and agree that during your employment with the Company and, in the event you, as noted above, (i) have a voluntary separation from service, or (ii) have an involuntary separation from service other than for Cause,  that for a period equal to (x) 18 months, if you are an Executive Vice President on the date of your separation from service, or (y) 12 months, if you are a Senior Vice President, thereafter, you shall not, without the prior written consent of the Company, on your own behalf or on the behalf of any person, firm or company, directly or indirectly, attempt to influence, persuade or induce, or assist any other person in so persuading or inducing, any person, firm or company to cease doing business with, reduce its business with, or decline to commence a business relationship with, the Company (or any of its subsidiaries or affiliates).
Noncompetition.  
		
	(a)
	You hereby covenant and agree that during your employment with the Company and, in the event you, as noted above, (i) have a voluntary separation from service, or (ii) have an involuntary separation from service other than for Cause,  that for a period equal to (x) 18 months, if you are an Executive Vice President on the date of your separation from service, or (y) 12 months, if you are a Senior Vice President, thereafter, you 

will not, except as otherwise provided for below, undertake any work for a Competing Business, as defined in (b).  
		
	(b)
	As used in this Agreement, the term “Competing Business” shall specifically include, but not be limited to: 

		
	(i)
	Kohl’s Corporation, Macy’s, Inc., Target Corporation, The TJX Companies, Inc., Ross Stores, Inc., Wal-Mart Stores, Inc., Amazon.com, Inc., and any of their respective subsidiaries or affiliates, or

		
	(ii)
	any business (A) that, at any time during the Severance Period,  competes directly with the Corporation through sales of merchandise or services in the United States or another country or commonwealth in which the Corporation, including its divisions, affiliates and licensees, operates, and (B) where the Executive performs services, whether paid or unpaid, in any capacity, including as an officer, director, owner, consultant, employee, agent, or representative, where such services involve the performance of (x) substantially similar duties or oversight responsibilities as those performed by the Executive at any time during the 12-month period preceding the Executive’s termination from the Corporation for any reason, or (y) greater duties or responsibilities that include such substantially similar duties or oversight responsibilities as those referred to in (x); or

		
	(iii)
	any business that provides buying office or sourcing services to any business of the types referred to in this section (b). 

		
	(c)
	For purposes of this section, the restrictions on working for a Competing Business shall include working at any location within the United States or Puerto Rico.  You acknowledge that the Company is a national retailer with operations throughout the United States and Puerto Rico and that the duties and responsibilities that you perform, or will perform, for the Company directly impact the Company’s ability to compete with a Competing Business in a nationwide marketplace.  You further acknowledge that you have, or will have, access to sensitive and confidential information of the Company that relates to the Company’s ability to compete in a nationwide marketplace.

Non-Disparagement.  You covenant that you will not make any statement or representation, oral or written, that could adversely affect the reputation, image, goodwill or commercial interests of the Company.  This provision will be construed as broadly as state or federal law permits, but no more broadly than permitted by state or federal law.  This provision is not intended to and does not prohibit you from participating in a governmental investigation concerning the Company, or providing truthful testimony in any lawsuit, arbitration, mediation, negotiation or other matter.  You agree not to incur any expenses, obligations or liabilities on behalf of the Company.
Enforcement and Injunctive Relief.  In addition to any other remedies to which the Company is entitled, on the Company’s becoming aware that you have breached, or potentially have breached, any of the Covenants and Representations set forth in this Agreement, above, the Company shall have a right to seek recoupment of the portion of any award under the Plan, or any plan or program that is a successor to the Plan, that (i) vested within the 12 months prior to the date of your voluntary separation from service or your involuntary separation from service other than for cause, each under and as defined in your termination agreement, and (ii) includes and is subject to these Covenants and Representations, including any proceeds or value received from the exercise or sale of that portion of any such awards. Further, if you shall breach any of the covenants contained herein, the Company may recover from you all such damages as it may be entitled to under the terms of this Agreement, any other agreement between the Company and you, at law, or in equity.  In addition, you acknowledge that any such breach of the Covenants and Representations in the Agreement is likely to result in immediate and irreparable harm to the Company for which money damages are likely to be inadequate.  Accordingly, you consent to injunctive and other appropriate equitable relief without the necessity of bond in excess of $500.00 upon the institution of proceedings therefor by the Company in order to protect the Company’s rights hereunder.
Recoupment
As provided in Section 12.19 of the Plan this Award is subject to any compensation recoupment policy adopted by the Board or the Committee prior to or after the effective date of the Plan, and as such policy may be amended from time to time after its adoption. 

This stock option grant does not constitute an employment contract.  It does not guarantee employment for the length of the vesting period or for any portion thereof.name-ex101_6.htm

Exhibit 10.1

NON-EXECUTIVE CHAIRMAN AGREEMENT

THIS NON-EXECUTIVE CHAIRMAN AGREEMENT (this “Agreement”), dated as of June 5, 2017, is entered into by and between Rightside Group, Ltd., a Delaware corporation (the “Company”) and David E. Panos (the “Chairman”).

WHEREAS, the Chairman desires to provide services to the Company, subject to the terms and conditions of this Agreement and the Company desires to retain the service of the Chairman as set forth herein.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

1.Term.  The Chairman’s service hereunder shall be for a term (the “Term”) commencing on June 3, 2017 (the “Effective Date”) and ending on the earliest to occur of (a) the first (1st) anniversary of the Effective Date, (b) the date on which the Chairman ceases to serve as the Chairman of the Company’s Board (the “Board”), whether due to removal, failure to be elected, resignation or otherwise, or (c) upon thirty (30) days prior written notice by either party to the other party.  

2.Duties.  During the Term, the Chairman shall serve as Chairman of the Board in a non-executive capacity and shall not be either an employee or officer of the Company.  The Chairman may serve on one or more committees of the Board consistent with this Section 2.  During the Term, the Chairman shall, in a manner consistent with applicable legal and corporate governance standards: (a) regularly attend and preside at Board meetings, (b) chair the annual meeting of the Company’s stockholders, (c) be eligible to serve on such committees of the Board as may be requested by the Nominating and Corporate Governance Committee of the Board, subject to applicable independence standards pursuant to applicable law and listing exchange regulations, (d) serve as a member of the Board of Directors for DMIH Limited, United TLD Holdco Limited and Rightside Domains Europe Limited, (e) advise the Company’s Chief Executive Officer on projects for strategy, corporate development, business development and/or marketing and (f) provide investor relations services.

3.Commitment. The Chairman will devote such reasonable time, attention, skill and efforts to the business and affairs of the Company as is necessary to discharge the duties and responsibilities assigned to the Chairman hereunder and under the Company’s applicable governing documents, and shall serve the Company faithfully and to the best of his ability.

4.Compensation and Benefits.

(a)Annual Cash Compensation.  During the Term, the Chairman shall receive a fee of one hundred ten thousand dollars ($110,000) per annum, which amount shall be in lieu of and not in addition to any director cash retainers/fees and other cash compensation paid to other Directors (including without limitation committee retainers and/or meeting fees paid pursuant to the Company’s Non-Employee Director Compensation Program, as in effect from time to time (the “Director Comp Program”)).  Payments to the Chairman set forth in this 

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Section 4(a) shall be made in substantially equal monthly installments within thirty (30) days of receipt of an invoice from the Chairman.

(b)Business Development and Special Projects. The Chairman and the Company’s Chief Executive Officer may from time to time agree on additional projects to be performed by the Chairman at mutually agreed rates during the Term.  

(c)Equity Awards.

(i) Annual Director Equity Awards. Subject to the terms and conditions applicable to annual equity award grants under the Director Comp Program, the Chairman shall be eligible to receive annual equity award grants under the Director Comp Program on the same terms and conditions generally applicable to members of the Board. 

(iii)Change in Control.  Notwithstanding anything to the contrary contained in this Agreement or in any applicable equity award agreement between the Chairman and the Company, if a Change in Control (as defined in the Company’s 2014 Incentive Award Plan) occurs and the Chairman remains in continuous service at least until immediately prior to the Change in Control, all outstanding Company equity awards held by the Chairman shall accelerate and vest in full (and, if applicable, become exercisable) immediately prior to such Change in Control.

(d) Business and Entertainment Expenses.  During the Term, upon submission of appropriate documentation in accordance with its policies in effect from time to time, the Company shall pay or reimburse the Chairman for all reasonable business-related expenses that the Chairman incurs in performing his duties under this Agreement. 

	

	
(e)Health Insurance Plan.  During the Term, the Chairman (and the Chairman’s spouse and/or eligible dependents to the extent provided in the applicable plans and programs) shall be eligible to participate in the health and welfare benefit plans and programs maintained by Rightside for the benefit of its employees from time to time, pursuant to the terms of such plans and programs including any medical, hospitalization, dental and vision insurance plans and programs.  

5.Termination of Services.

(a)General.  Subject to the provisions of this Section 5, nothing in this Agreement shall interfere with or limit in any way the right of the Company to terminate Chairman’s service with the Company in accordance with the Company’s governing documents and Washington corporate law, nor shall it interfere with or limit in any way the right of the Chairman to voluntarily terminate his services as Chairman and no longer provide the services contemplated hereby at his discretion.

	

	
(b)Obligations Upon Termination.  Upon expiration and/or termination of this Agreement and the termination of the Chairman’s service as non-executive Chairman of the Board:

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(i) Within thirty (30) days after the date of termination (or such earlier date as may be required by applicable law), the Company shall pay all amounts owing to the Chairman for services completed and/or reimbursable expenses (under Section 4(d) above) incurred through the termination date, including, but not limited to, any pro rata fee amount earned but not yet paid under Sections 4(a) and 4(b) of this Agreement.

(ii) Each of Section 6 (Confidential Information; Non-Solicitation and Non-Competition), Section 7 (Cooperation; Non-Disparagement), Section 8 (Liability Insurance), and Section 9(a) (Independent Contractor) hereof, as well as the Company Confidentiality Agreement (each, as defined below), shall survive termination of this Agreement and shall continue in effect, notwithstanding termination of this Agreement or the Chairman’s services hereunder. 

6.Confidential Information; Non-Solicitation and Non-Competition. The Chairman hereby acknowledges that the Chairman has previously entered into an agreement containing confidentiality and other protective covenants consistent with the form agreement to be signed by all employees of the Company (the “Company Confidentiality Agreement”).  While the Chairman is providing the services contemplated by this Agreement to the Company, Chairman shall not consult with or advise any other company providing domain name related services, including, but not limited to, registrar, registry, web-hosting, search monetization or after-market domain services.

7.Cooperation; Non-Disparagement. 

(a)The Chairman agrees not to disparage the Company or any of its affiliates and/or any officers, directors, employees, shareholders and/or agents in any manner intended or reasonably likely to be harmful to them or their business, business reputation or personal reputation.  The Company shall ensure that its directors and executive officers do not disparage the Chairman in any manner intended or reasonably likely to be harmful to the Chairman’s business or personal reputation. 

(b)The Chairman agrees that the Chairman will use commercially reasonable efforts to cooperate with the Company, to the extent reasonably requested by the Company, to consult, advise and provide relevant input with respect to any internal investigation or administrative, regulatory or judicial proceeding involving matters that are within the scope of the Chairman’s duties and responsibilities to the Company and its affiliates during the Term.

8.Liability Insurance.  The Company shall cover the Chairman under directors and officers liability insurance both during and, while potential liability exists, after the Term in the same amount and to the same extent, if any, as the Company covers its other current and former directors.

9.Miscellaneous.

(a)Independent Contractor.  The Chairman expressly acknowledges and agrees that, as of the Effective Date, he is solely an independent contractor and shall not be construed to be an employee of the Company in any matter under any circumstances or for any purposes whatsoever.  The Company shall not be obligated to (i) pay, on the account of the 

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Chairman, any unemployment tax or other taxes required under the law to be paid with respect to employees, (ii) withhold any monies from the fees of the Chairman for income tax purposes or (iii) provide the Chairman with any benefits except as otherwise expressly set forth elsewhere in this Agreement, including without limitation welfare, pension, retirement or workers’ compensation insurance.  The Chairman acknowledges and agrees that the Chairman is obligated to report as income all compensation received by the Chairman pursuant to this Agreement, and to pay any applicable income, self-employment and other taxes thereon.

(b) Governing Law.  This Agreement shall be governed by and construed in accordance with the laws of the State of Washington, without reference to principles of conflict of laws.  The captions of this Agreement are not part of the provisions hereof and shall have no force or effect.

(c)Notices.  All notices and other communications hereunder shall be in writing and shall be given by hand delivery to the other party or by registered or certified mail, return receipt requested, postage prepaid, addressed as follows:

If to the Chairman:  at the Chairman’s most recent address on the records of the Company.

If to the Company:

Rightside Group, Ltd. 

5808 Lake Washington Blvd. NE, Suite 300

Kirkland, WA 98303

Attn: General Counsel

 

or to such other address as either party shall have furnished to the other in writing in accordance herewith.  Notice and communications shall be effective when actually received by the addressee.

(d)Section 409A of the Code.  To the extent applicable, this Agreement shall be interpreted in accordance with Section 409A of the Internal Revenue Code and Department of Treasury regulations and other interpretive guidance issued thereunder (“Section 409A”).  Notwithstanding any provision of this Agreement to the contrary, if the Company determines that any compensation or benefits payable under this Agreement may be subject to Section 409A, the Company shall work in good faith with the Chairman to adopt such amendments to this Agreement or adopt other policies and procedures (including amendments, policies and procedures with retroactive effect), or take any other actions, that the Company determines are necessary or appropriate to avoid the imposition of taxes under Section 409A, including without limitation, actions intended to (i) exempt the compensation and benefits payable under this Agreement from Section 409A, and/or (ii) comply with the requirements of Section 409A; provided, however, that this Section 9(d) shall not create an obligation on the part of the Company to adopt any such amendment, policy or procedure or take any such other action, nor shall the Company have any liability for failing to do so.  Any right to a series of installment payments pursuant to this Agreement is to be treated as a right to a series of separate payments.  To the extent permitted under Section 409A, any separate payment or benefit under this 

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Agreement or otherwise shall not be deemed “nonqualified deferred compensation” subject to Section 409A to the extent provided in the exceptions in Treasury Regulation Section 1.409A-1(b)(4), Section 1.409A-1(b)(9) or any other applicable exception or provision of Section 409A.

(e)Severability.  The invalidity or unenforceability of any provision of this Agreement shall not affect the validity or enforceability of any other provision of this Agreement.

(f)Entire Agreement.  As of the Effective Date, this Agreement, together with the Company Confidentiality Agreement and the previously executed RSU Agreement between the Chairman and the Company, constitutes the final, complete and exclusive agreement between the Chairman and the Company with respect to the subject matter hereof and replaces and supersedes any and all other agreements, offers or promises, whether oral or written, by the Company and its subsidiaries and affiliates, or representative thereof.

(g) Amendment.  No amendment or other modification of this Agreement shall be effective unless made in writing and signed by the parties hereto.

	

	
(i)Counterparts.  This Agreement and any agreement referenced herein may be executed simultaneously in two or more counterparts, each of which shall be deemed an original but which together shall constitute one and the same instrument.

 

[SIGNATURE PAGE FOLLOWS]

 

 

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IN WITNESS WHEREOF, the Chairman has hereunto set the Chairman’s hand and, pursuant to the authorization from the Board, the Company has caused these presents to be executed in its name on its behalf, all as of the day and year first above written.

Rightside Group, Ltd., 
a Delaware corporation

	
 
	
By:
	
  /s/ Taryn Naidu
Name:  Taryn Naidu
Title:  CEO

“CHAIRMAN”

	
 
	
  
	
/s/ David E. Panos
David E. Panos

 

 

 

 

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