PRIVILEGED AND CONFIDENTIAL

Confidentiality Agreement

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Title: PRIVILEGED AND CONFIDENTIAL
Date: 3/22/2005
Industry: Retail (Department and Discount) Sector: Services

Exhibit 10.1

PRIVILEGED AND CONFIDENTIAL

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[letter from Compensation Committee Chair to MEU]

Dear Mike,

The purpose of this letter is to clarify certain aspects of the arrangement

under which you have agreed to serve as Chairman and Chief Executive Officer of

J. C. Penney Company. You are entitled to relocation, travel and expense

reimbursement and vacation benefits that are appropriate and reasonable for a

Chairman and Chief Executive

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