Document:

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                                                                   Exhibit 10(c)
                                   Agreement

     This Agreement (the "Agreement") is entered into between J. C. Penney
Company, Inc. (the "Company"), and James E. Oesterreicher (the "Associate") as
of September 30, 2000.

     In consideration of the Associate's agreement in March, 2000 to remain as
the Company's Chairman of the Board and Chief Executive Officer for a then
indefinite period until his successor was in place, Associate's agreement to
assist in the subsequent transition, and following his retirement and during the
term hereof to be available as needed, and in order to provide Associate with
appropriate office and clerical support, and in consideration of the following
covenants and mutual promises, the Company and the Associate have agreed to
enter into this Agreement.

     While an executive with the Company, Associate has been entrusted with,
acquired, or developed substantial knowledge and expertise of a special nature
relating to the business, financial and functional areas of the Company, as well
as other information and knowledge concerning the Company and its internal
business affairs.  As an executive of the Company and in such capacity Associate
has obtained highly confidential business, customer, and strategic information,
as well as business and other information relating to the internal affairs of
the Company.

     Payments.   Following the execution of this Agreement, the Company shall
make a lump sum payment to Associate in the amount of $3,000,000.

     Non-Competition, Nonsolicitation and Confidentiality.   For the period
beginning on the date hereof and ending on September 29, 2003 (the "Agreement
Term") the Associate agrees that he will not become employed by, be or become an
officer or director of, agree personally to perform services for, or enter into
a consulting arrangement with a company included in the S&P 500 Retail Index for
department stores (individually and collectively, the "Competitors").  During
the Agreement Term, the Associate further agrees that he will not (i) directly
or indirectly seek to employ on behalf of Associate or any other person or
entity, any person who is employed at the time by the Company; (ii) be engaged
in or be involved with, directly or indirectly, any investments in any
Competitor; or (iii) solicit any customer of the Company on behalf of or for the
benefit of a Competitor.  The Associate further agrees not to disclose, in any
manner except to authorized representatives of the Company or when compelled by
legal process after notice to the Company (if such notice is feasible by a good
faith effort), information about or related to the Company that was obtained by
the Associate during his employment with the Company, other than information
generally available to the public.
<PAGE>

     Release and Waiver.  In consideration of the benefits provided under this
Agreement, the Associate has entered into the Release and Waiver which is
attached hereto as Exhibit A. This Release and Waiver shall for purposes of
this Agreement be treated as incorporated into this Section in the form attached
hereto.

     Severability.  If all or any part of this Agreement is declared by any
court or governmental authority to be unlawful or invalid, such unlawfulness or
invalidity shall not invalidate any other portion of this Agreement. Any
section or a part of a section declared to be unlawful or invalid shall, if
possible, be construed in a manner which will give effect to the terms of the
section to the fullest extent possible while remaining lawful and valid.

     Amendment.  This Agreement shall not be altered, amended, or modified
except by written instrument executed by the Company and the Associate.  A
waiver of any portion of this Agreement shall not be deemed a waiver of any
other portion of this Agreement.

     Counterparts.  This Agreement may be executed in counterparts, each of
which shall be deemed to be an original, but all of which together will
constitute one and the same instrument.

     Applicable Law.  The provisions of this Agreement shall be governed,
construed, interpreted and enforced in accordance with the laws of the State of
Texas, without regard to its choice of law or conflict of law principles.

                                        J. C. Penney Company, Inc.

                                        By: /s/ JANE C. PFEIFFER
                                           -------------------------------
                                        Title: Chairman of P&C Committee
                                              ----------------------------

                                           /s/ JAMES E. OESTERREICHER
                                        --------------------------------
                                             James E. Oesterreicher

                                       2
<PAGE>

                                   EXHIBIT A

                              WAIVER AND RELEASE

--------------------------------------------------------------------------------
TWO ORIGINALS OF THIS WAIVER AND RELEASE MUST BE SIGNED AFTER TERMINATION OF
EMPLOYMENT. AFTERWARDS, BOTH ORIGINALS MUST BE RETURNED TO CHARLES R. LOTTER
EXECUTIVE VICE PRESIDENT, SECRETARY, AND GENERAL COUNSEL, AT 6501 LEGACY DRIVE,
PLANO, TEXAS 75024-3698 WITHIN 21 DAYS OF TERMINATION OR WITHIN 21 DAYS OF
RECEIPT OF THE WAIVER AND RELEASE, WHICHEVER OCCURS LATER. YOU MAY NOT MAKE ANY
CHANGES TO THIS FORM.
--------------------------------------------------------------------------------

This Waiver and Release ("Release") is entered into on this 8th day of November,
2000, between James E. Oesterreicher (hereinafter, "Associate") and J.C. Penney
Company, Inc., (referred to as the "Company").

James E. Oesterreicher is entering into this Release also on behalf of his
heirs, executors, administrators, successors and assigns (collectively referred
to for purposes of this Release as "Associate").  The Company is entering into
this Release through its designated official also for its past and present
subsidiaries and affiliates, its Welfare, Retirement, Pension and Benefit
committees and plans including all Voluntary Employee Beneficiary Plans, and its
past and present officers, directors, associates, insurers, and agents in their
personal or official capacities (collectively referred to for purposes of this
Release as the "Company").

For the promises, agreements and other valuable consideration noted herein and
in the Agreement, it is agreed as follows:

1.  Associate agrees that this Release is an enforceable legal document and that
    he has been encouraged to review it with his attorney. He has had a period
    of not less than twenty-one (21) days in which to review the provisions of
    this Release with his counsel. Associate acknowledges that if he chooses to
    sign the Release before the expiration of twenty-one (21) days, Associate is
    doing so knowingly and voluntarily, under no pressure from the Company. He
    agrees that this Release sets forth his entire understanding with the
    Company, supersedes all prior agreements or understandings between them, and
    may not be modified, altered, or changed except upon prior written consent
    by the Associate and the Company. Associate is entering into this Release of
    his own free will.

2.  Associate, for and in consideration of the benefits set forth in that
    certain Agreement dated as of September 30, 2000 between Associate and the
    Company (the "Agreement"), does hereby acknowledge full and complete
    satisfaction of, and does unconditionally release and forever discharge the
    Company from any and all claims, demands, liabilities, obligations, causes
    or causes of action of whatever kind or nature, whether known or unknown,
    suspected or unsuspected by him, which he now has, or at anytime had,
    against the Company, including specifically but not exclusively and without
    limiting the generality of the foregoing, any and all claims

                                       i
<PAGE>

    relating to discrimination under any federal, state, or local statute,
    including the Age Discrimination in Employment Act, as amended, 29 U.S.C.
    Sec. 621, et seq., including the Older Workers Benefits Protection Act,
    Title VII of the Civil Rights Act, as amended, 42 U.S.C. Sec. 2000e, et
    seq., ERISA, or claims in contract or tort including emotional distress
    which arise out of or in any way relate to his employment with, and
    separation from, the Company (including this Release and his voluntary
    election to accept the terms and conditions of the Release, but excluding
    the parties' performance under the Release).

    Associate understands that he is releasing claims that he may not know about
    and this is his intent. Associate expressly waives all rights under any laws
    that are intended to prevent unknown claims from being released. Associate
    understands the significance of doing so.

3.  Associate also expressly waives any right or claim that he may have, or
    assert to have, regarding employment or reinstatement to employment with the
    Company or to any type of benefit which is not outlined herein unless
    otherwise due him in accordance with Company plans. In furtherance of this
    Release, Associate agrees that he will not under any circumstances seek
    personal relief by submitting an Internal Review Process request or Notice
    of Intent to Arbitrate a Termination Claim under the JCPenney Alternative
    Program or by filing a charge or lawsuit against the Company for any such
    claim in any federal, state or local court, or administrative agency, except
    for those statutory rights which are nonwaivable.

4.  Associate will have seven days to revoke this Release after it has been
    signed by Associate and returned to the Company, such revocation to be
    effected by means of written memorandum signed by him and delivered to the
    individual denoted in the box on the first page of this Waiver and Release.
    If such a signed, written notice of revocation is not actually received by
    the individual designated above (delivery to any post office or other
    delivery agent is insufficient) by the close of business on the tenth
    calendar day following execution, this Release becomes effective and fully
    enforceable by either Associate or the Company. If Associate violates
    paragraph 2 of this Release, the Company shall be entitled to an immediate
    refund of the lump sum payment to Associate described in the Agreement, and
    to recover reasonable attorneys' fees incurred by the Company because of
    such violation.

5.  Associate expressly agrees to reimburse the Company for any and all damages
    which the Company may incur as a result of the assertion of any claim by any
    attorney against the Company for attorney's fees, costs or disbursements for
    services rendered to or on behalf of Associate in this matter.

                                      ii
<PAGE>

7.  Associate certifies he has made no changes to this Release other than
    providing his name and the date the Release is entered into in the first two
    paragraphs above and signing and providing the information required in the
    signature section below.

 /s/ JAMES E. OESTERREICHER
-----------------------------           J. C. Penney Company, Inc.
Signature of Associate

James E. Oesterreicher
-----------------------------           By:  /s/ JANE C. PFEIFFER
Printed Name of Associate                   ----------------------------

       [omitted]
-----------------------                 Date:  11/8/00
Social Security Number                        --------------------------

                                      iii<PAGE>
                                                                    Exhibit 10.1

                       AMENDMENT NO. 1 TO LOAN DOCUMENTS
                       ---------------------------------

                                                          As of November 1, 2000

FOOTHILL CAPITAL CORPORATION
2450 Colorado Avenue
Suite 3000 West
Santa Monica, California 90404

Ladies and Gentlemen:

     Foothill Capital Corporation ("Foothill"), as assignee of Banc of America
Commercial Finance Corporation, formerly known as NationsCredit Commercial
Corporation ("Banc of America"), and National Home Centers, Inc. ("Borrower")
have entered into certain financing arrangements pursuant to the Loan and
Security Agreement dated as of July 15, 1998 between Banc of America and
Borrower (the "Loan Agreement") and all other Loan Documents at any time
executed and/or delivered in connection therewith or related thereto, all of
which have been duly assigned by Banc of America to Foothill. All capitalized
terms used herein shall have the meaning assigned thereto in the Loan Agreement,
unless otherwise defined herein.

     Borrower has requested that Foothill decrease the Interest Rate applicable
to the Loans and other monetary Obligations, and Foothill is willing to agree to
the foregoing, on and subject to the terms and conditions in this Amendment No.
1 to Loan Document (this "Amendment").

     In consideration of the foregoing and for other good and valuable
consideration, the receipt and sufficiency of which are hereby acknowledged by
the parties hereto, the parties hereto hereby agree as follows:

     1    Reduction of Interest Rate. Section 3(a) of Schedule A to the Loan
          --------------------------
Agreement is hereby amended and restated in its entirety to read as follows:

          "(a)  Revolving Loans:   0.375% per annum in excess of the Prime Rate"

                                       1
<PAGE>

     2.   Representations, Warranties and Covenants. In addition to the
          -----------------------------------------
continuing representations, warranties and convenants heretofore or hereafter
made by Borrower to Foothill pursuant to the Loan Agreement and the other Loan
Documents, Borrower hereby represents, warrants and covenants with and to
Foothill as follows (which representations, warranties and covenants are
continuing and shall survive the execution and delivery hereof and shall be
incorporated into and made a part of the Loan Document):

     (a)  No Event of Default exists on the date of this Amendment (after giving
effect to the amendments to the Loan Agreement); and

     (b)  This Amendment has been duly executed and delivered by Borrower and is
in full force and effect as of the date hereof, and the agreements and
obligations of Borrower contained herein constitute its legal, valid and binding
obligations enforceable against it in accordance with the terms hereof.

     3.   Conditions Precedent.  The effectiveness of the amendment contained
          --------------------
herein shall be subject to the following:

     (a)  the receipt by Foothill of an original of this Amendment, duly
authorized, executed and delivered by Borrower and each Obligor;

     (b)  no Event of Default shall have occurred and be continuing and no event
shall have occurred or condition be existing and continuing which, with notice
or passage of time or both, would constitute an Event of Default.

     4.   Effect of this Amendment. Except as modified pursuant hereto, no other
          ------------------------
changes or modifications to the Loan Agreement and the other Loan Documents are
intended or implied and in all other respects the Loan Agreement and the other
Loan Documents are hereby specifically ratified, restated and confirmed by all
parties hereto as of the effective date hereof. To the extent of any conflict
between the terms of this Amendment and any of the Loan Documents, the terms of
this Amendment shall control. The Loan Agreement, the other Loan Documents
amended hereby and this Amendment shall be read and be construed as one
agreement.

     5.   Further Assurances. The parties hereto shall execute and deliver such
          ------------------
additional documents and take additional actions as may be necessary or
desirable to effectuate the provisions and purposes of this Amendment.

     6.   Governing Law. The validity, interpretation and enforcement of the
          -------------
Amendment and any dispute arising out of the relationship between the parties
hereto, whether in contract, tort, equity or otherwise, shall be governed by the
internal laws of the State of New York (without giving effect to principles of
conflicts of law).

                                       2
<PAGE>

     7.   Binding Effect.  This Amendment shall be binding upon and inure to the
          --------------
benefit of each of the parties hereto and their respective successors and
assigns.

     8.   Counterparts.  This Amendment may be executed in any number of
          ------------
counterparts, but all of such counterparts when executed shall together
constitute but one and the same agreement.  In making proof of this Amendment,
it shall not be necessary to produce or account for more than one counterpart
thereof signed by each of the parties hereto.

                  REMAINDER OF PAGE INTENTIONALLY LEFT BLANK

                                       3
<PAGE>

BORROWER:
--------

NATIONAL HOME CENTERS, INC.

By: /s/ Dwain A. Newman
    -------------------
Title: Chairman, C.E.O.
      ----------------

ACKNOWLEDGED AND AGREED TO
--------------------------
BY THE GUARANTOR:
----------------

DWAIN A. NEWMAN

/s/ Dwain A. Newman
-------------------

AGREED:
------

FOOTHILL CAPITAL CORPORATION

By: /s/ [ILLEGIBLE]
    -----------------

Title: Vice President
       --------------

                                       4

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