Document:

Exhibit
10.3

LINENS
HOLDING CO.

6
Brighton Road

Clifton,
NJ  07015

August 16, 2006

George G. Golleher

145 Golden Eagle

Hailey, ID  83333

Re:  Grant of Stock Options

Dear George:

We are pleased to
inform you that you have been granted an option to purchase 10,000 shares of
common stock of Linens Holding Co. (the “Company”).  As further described below, the option is
denominated as an “Investment Option”. 
The Investment Option has not been granted under the Company’s Stock
Option Plan (the “Plan”), a copy of which is attached, and shall have no effect
on the number of options that may be awarded under the Plan.  However, in all other respects, the
Investment Option shall be treated as if it were awarded under the Plan, and
shall be subject to the terms and conditions of the Plan, except as
specifically modified hereby. 
Capitalized terms not otherwise defined in the text are defined in the
Plan.

1.                                       Investment
Option:  The key terms of the
Investment Option are as follows:

(a)                                  Number
of Shares.               10,000

(b)                                 Exercise
Price per Share.  $50.00

(c)                                  Vesting.  The Investment Option is fully vested and
immediately exercisable.

2.                                       Termination
of the Options:  Whether or not
exercisable or scheduled to become exercisable, the Investment Option will
terminate as provided in Section 5 of the Plan; provided that Section 5(a) of
the Plan shall not apply.

3.                                       No
Repurchase Right.  Section 8(c) of
the Plan shall not apply to any Shares you acquire upon exercise of the
Investment Option.

4.                                       Federal
Taxes:  The Investment Option granted
to you is treated as a “nonqualified option” for federal tax purposes, which
means that when you exercise, the excess of the value of the Shares issued on
exercise over the exercise price paid for the Shares is income to you, subject
to wage-based withholding and reporting. 
When you sell the Shares acquired upon exercise, the excess (or
shortfall) between the amount you receive upon the sale and the value of the
shares at the time of exercise is treated as capital gain (or loss).  State and local 

 

 

                                                taxes
may also apply.  You should consult your
personal tax advisor for more information concerning the tax treatment of your
Investment Option.

We are excited to
give you this opportunity to share in our future success.  Please indicate your acceptance of this
option grant and the terms of the Plan by signing and returning a copy of this
letter.

Sincerely,

	
  LINENS HOLDING CO.

  
	
   

  
	
  By:

  	
  /s/ ROBERT J. DINICOLA

  	
   

  
	
   

  	
  Robert J.
  DiNicola

  
	
   

  	
  Chairman of the
  Board and Chief Executive Officer

  
	
   

  	
   

  
	
  Agreed to and Accepted by:

  
	
   

  
	
  /s/ GEORGE G.
  GOLLEHER

  	
   

  
	
  Name: George G.
  Golleher

  	
   

  

 

 2EXHIBIT 10.1

MONACO COACH CORPORATION

1993 STOCK PLAN

RESTRICTED STOCK UNIT

AGREEMENT

THIS RESTRICTED
STOCK AGREEMENT (the “Agreement”) is effective as of (Date) (the “Date of Grant”),
between MONACO COACH CORPORATION (hereinafter called the “Company”) and (NAME)
(hereinafter called the “Participant”). 
Unless otherwise defined herein, the terms defined in the amended and
restated 1993 Stock Plan (the “Plan”) will have the same defined meanings in
this Agreement.

1.             Award Grant.  The Company hereby awards to
Participant (  #  ) Restricted Stock Units under the Plan.  Each Restricted Stock Unit represents a value
equal to the Fair Market of a Share on the date that it vests.  Prior to actual payment of any vested
Restricted Stock Units, such Restricted Stock Unit will represent an unsecured
obligation of the Company, payable (if at all) only from the general assets of
the Company.

2.             Obligation to Pay.  Subject
to any acceleration provisions set forth herein or in the Plan, one hundred
percent (100%) of the Restricted Stock Units will vest on the third anniversary
of the Date of Grant, subject to Participant continuing to be a Director
through such date.  Notwithstanding the
foregoing vesting schedule, in the event Participant ceases to be a Director as
the result of Participant’s Death, Disability or Retirement, 100% of the
Restricted Stock Units will immediately vest in full.  In addition, if on or following a Change of
Control Participant’s status as a Director or a director of the successor
corporation, as applicable, is terminated other than upon a voluntary
resignation by the Participant, then 100% of the Restricted Stock Units will
immediately vest in full.

For purposes of
this Section 2, Participant will be considered to have ceased to be a Director
as a result of his or her “Retirement” if Participant has provided five (5) or
more years of continual service as a Director through the date of such
termination.

3.             Payment
after Vesting.  Any
Restricted Stock Units that vest in accordance with Section 2 will be paid to
Participant (or in the event of Participant’s death, to his or her estate) in
whole Shares, subject to Participant satisfying any applicable tax withholding
obligations as set forth in Section 8. 
Notwithstanding the foregoing sentence, to the extent necessary to avoid
the imposition of any additional tax or income recognition under Section 409A
of the Code prior to or upon the actual payment of Shares pursuant to this
Award of Restricted Stock Units, any Restricted Stock Units that vest in accordance
with Section 2 will be paid to Participant (or in the event of Participant’s
death, to his or her estate) no earlier than six (6) months and one (1) day
following the date of Participant’s termination of employment with the Company
(or any Affiliate), subject to Section 8. 
The Participant will not be required to make any additional monetary
payment (other than applicable tax withholding, if any) upon settlement of the
Award.

4.             Payments after Death.  Any distribution or delivery to be
made to Participant under this Agreement will, if Participant is then deceased,
be made to Participant’s designated beneficiary, or if no beneficiary survives
Participant, the administrator or executor of Participant’s estate.  Any such transferee must furnish the Company
with (a) written notice of his or her status as transferee, and
(b) evidence satisfactory to the Company to establish the validity of the
transfer and compliance with any laws or regulations pertaining to said
transfer.

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5.             Rights as Stockholder.  Except as set forth in Section 4, neither
Participant nor any person claiming under or through Participant will have any
of the rights or privileges of a stockholder of the Company in respect of any
Shares deliverable hereunder, unless and until certificates representing such
Shares will have been issued, recorded on the records of the Company or its
transfer agents or registrars, and delivered to Participant.

6.             Dividend Equivalent Rights.  In the event cash dividends are paid with
respect to Common Stock on and after the Date of Grant and before the
settlement of the Award pursuant to Section 3, on the date this Award is
settled upon vesting of Restricted Stock Units pursuant to Section 3,
Participant will also receive an amount of cash equal to the per Share amount
of cash dividends so paid on or after the Date of Grant and before settlement
multiplied by the number of Shares actually deliverable upon settlement of this
Award.

7.             Effect on Employment.  Participant acknowledges and agrees that the
vesting of the Restricted Stock Units pursuant to Section 2 hereof is earned
only by Participant continuing to be an Employee through the applicable vesting
dates (and not through the act of being hired or acquiring Shares
hereunder).  Participant further
acknowledges and agrees that this Agreement, the transactions contemplated
hereunder and the vesting schedule set forth herein do not constitute an
express or implied promise of Participant continuing to be an Employee for the
vesting period, for any period, or at all, and will not interfere with the
Participant’s right or the right of the Company (or the Affiliate employing
Participant) to terminate Participant as an Employee at any time, with or
without cause.

8.             Tax Withholding.  Notwithstanding any contrary provision of
this Agreement, no certificate representing the Shares will be issued to
Participant and no cash will be paid pursuant to Section 6, unless and until
satisfactory arrangements (as determined by the Administrator) will have been
made by Participant with respect to the payment of income, employment and other
taxes which the Company determines must be withheld with respect to such Shares
so issuable and/or cash to be paid.  All
income, employment and other taxes related to this Restricted Stock Unit Award
and any Shares or cash delivered in payment thereof are the sole responsibility
of Participant.  Any cash payments to be
made pursuant to Section 6 hereof will be reduced to satisfy any applicable tax
withholding requirements with respect to such amounts.  The Administrator, in its sole discretion and
pursuant to such procedures as it may specify from time to time, may permit
Participant to satisfy such tax withholding obligation with respect to Shares
issuable hereunder, in whole or in part by one or more of the following
(without limitation): (a) paying cash, (b) electing to have the
Company withhold otherwise deliverable Shares having a Fair Market Value equal
to the amount required to be withheld, (c) delivering to the Company
already vested and owned Shares having a Fair Market Value equal to the
amount  required to be withheld, or
(d) selling a sufficient number of such Shares otherwise deliverable to
Participant through such means as the Company may determine in its sole
discretion (whether through a broker or otherwise) equal to the amount required
to be withheld.  The Company, in its sole
discretion, may use any cash amounts that are to be paid pursuant to Section 6
to satisfy any tax withholding otherwise due with respect to the issuance of
Shares pursuant to this Restricted Stock Unit Award.  If Participant fails to make satisfactory
arrangements for the payment of any required tax withholding obligations
hereunder at the time any applicable Restricted Stock Units otherwise are
scheduled to vest pursuant to Section 2, Participant will permanently forfeit
such Restricted Stock Units and the right to receive any Shares with respect
thereto and such Restricted Stock Units will be returned to the Company at no
cost to the Company.

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9.                     Additional Conditions to Issuance
of Stock.  If at any time the Company will determine, in
its discretion, that the listing, registration or qualification of the Shares
upon any securities exchange or under any state or federal law, or the consent
or approval of any governmental regulatory authority is necessary or desirable
as a condition to the issuance of Shares to Participant (or his estate), such
issuance will not occur unless and until such listing, registration,
qualification, consent or approval will have been effected or obtained free of
any conditions not acceptable to the Company. 
Where the Company determines that the delivery of the payment of any
Shares will violate federal securities laws or other applicable laws, the
Company will defer delivery until the earliest date at which the Company
reasonably anticipates that the delivery of Shares will no longer cause such
violation.  The Company will make all
reasonable efforts to meet the requirements of any such state or federal law or
securities exchange and to obtain any such consent or approval of any such
governmental authority.

10.                  Restrictions on Sale of
Securities.  Subject to Section 9, the Shares issued as
payment for vested Restricted Stock Units awarded under this Agreement will be
registered under the federal securities laws and will be freely tradable upon
receipt.  However, Participant’s
subsequent sale of the Shares will be subject to any market blackout-period
that may be imposed by the Company and must comply with the Company’s insider
trading policies, and any other applicable securities laws.

11.                  Successors. 
Subject to the limitation on the transferability of this grant contained
herein, this Agreement will be binding upon and inure to the benefit of the
heirs, legatees, legal representatives, successors and assigns of the parties
hereto.

12.                  Address for Notices.  Any
notice to be given to the Company under the terms of this Agreement will be
addressed to the Company, in care of it Secretary at Monaco Coach Corporation,
91320 Coburg Industrial Way, Coburg, Oregon 97408, or at such other address as
the Company may hereafter designate in writing.

13.                  Transferability. 
Except to the limited extent provided in Section 4, this grant and
the rights and privileges conferred hereby will not be transferred, assigned,
pledged or hypothecated in any way (whether by operation of law or otherwise)
and will not be subject to sale under execution, attachment or similar
process.  Upon any attempt to transfer,
assign, pledge, hypothecate or otherwise dispose of this grant, or any right or
privilege conferred hereby, or upon any attempted sale under any execution,
attachment or similar process, this grant and the rights and privileges
conferred hereby immediately will become null and void.

14.                  Plan Governs.  This
Agreement is subject to all terms and provisions of the Plan.  In the event of a conflict between one or
more provisions of this Agreement and one or more provisions of the Plan, the
provisions of the Plan will govern.

15.           Administrator
Authority.  The Administrator
will have the power to interpret the Plan and this Agreement and to adopt such
rules for the administration, interpretation and application of the Plan as are
consistent therewith and to interpret or revoke any such rules (including, but
not limited to, the determination of whether or not any Restricted Stock Units
have vested).  All actions taken and all
interpretations and determinations made by the Administrator in good faith will
be final and binding upon Participant, the Company and all other interested
persons.  No member of the Administrator
will be personally liable for any action, determination or interpretation made
in good faith with respect to the Plan or this Agreement.

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16.                  Electronic Delivery.  The
Company may, in its sole discretion, decide to deliver any documents related to
Restricted Stock Units awarded under the Plan or future Restricted Stock Units
that may be awarded under the Plan by electronic means or request Participant’s
consent to participate in the Plan by electronic means.  Participant hereby consents to receive such
documents by electronic delivery and agrees to participate in the Plan through
an on-line or electronic system established and maintained by the Company or
another third party designated by the Company.

17.                  Captions. 
Captions provided herein are for convenience only and are not to serve
as a basis for interpretation or construction of this Agreement.

18.                  Agreement Severable.  In
the event that any provision in this Agreement will be held invalid or
unenforceable, such provision will be severable from, and such invalidity or
unenforceability will not be construed to have any effect on, the remaining
provisions of this Agreement.

19.           Entire
Agreement.  This Agreement
constitutes the entire understanding of the parties on the subjects
covered.  The Participant expressly
warrants that he or she is not executing this Agreement in reliance on any
promises, representations, or inducements other than those contained herein.

20.           Modifications
to the Agreement.  This
Agreement constitutes the entire understanding of the parties on the subjects
covered.  The Participant expressly
warrants that he or she is not accepting this Agreement in reliance on any
promises, representations, or inducements other than those contained herein.  Modifications to this Agreement or the Plan
can be made only in an express written contract executed by a duly authorized
officer of the Company.  Notwithstanding
anything to the contrary in the Plan or this Agreement, the Company reserves
the right to revise this Agreement as it deems necessary or advisable, in its
sole discretion and without the consent of Participant, to comply with Section
409A of the Code or to otherwise avoid imposition of any additional tax or
income recognition under Section 409A of the Code prior to the actual payment
of Shares pursuant to this Award of Restricted Stock Units.

21.                  Amendment, Suspension or
Termination of the Plan.  By accepting this Award, the Participant
expressly warrants that he or she has received a right to acquire Shares under
the Plan, and has received, read and understood a description of the Plan.  The Participant understands that the Plan is
discretionary in nature and may be modified, suspended or terminated by the
Company at any time.

22.                  Governing Law.  This
Agreement shall be governed by the laws of the State of Oregon, without giving
effect to the conflict of law principles thereof.  For purposes of litigating any dispute that
arises under this Award of Restricted Stock Units or this Agreement, the
parties hereby submit to and consent to the jurisdiction of the State of Oregon, and agree that such litigation shall be conducted in the
courts of Lane County, Oregon, or the federal courts for the United States
located in or around Lane County, Oregon, and no other courts, where this Award
of Restricted Stock Units is made and/or to be performed.

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IN WITNESS WHEREOF, the parties have signed this
Agreement effective as of the date and year indicated above.

	
  

  	
   

  	
  MONACO COACH CORPORATION

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  By:

  	
   

  
	
   

  	
   

  	
   

  	
  Chairman and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
  ACCEPTED:

  	
   

  	
   

  	
   

  
	
   

  	
  Participant

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
  PRINT NAME:

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  
	
  DATE:

  	
   

  	
   

  	
   

  

 

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