Document:

Exhibit 10.9

EMPLOYMENT AGREEMENT

THIS EMPLOYMENT AGREEMENT (the “Agreement”) is
entered into on May 31, 2006 (the “Execution Date”), to be
effective for all purposes as of April 28, 2006 (the “Effective Date”),
by and between Linens ‘n Things, Inc., a Delaware corporation (the “Company”)
and wholly owned subsidiary of Linens Holding Co., a Delaware corporation (“Holding”),
and Francis M. Rowan (the “Executive”).

WHEREAS, the Company desires to employ the Executive
on the terms and subject to the conditions set forth herein and the Executive
has agreed to be so employed.

NOW, THEREFORE, in consideration of the mutual
representations, warranties, covenants and agreements set forth herein, and for
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, the parties hereto, intending to be legally bound, agree
as follows:

1.             Employment of Executive; Duties.

1.1          Title.  During the Employment Period (as defined in Section 2 hereof), the Executive shall
serve as Senior Vice President and Chief Financial Officer of the Company and
of Holding.  The Executive shall have the
normal duties, responsibilities and authority commensurate with such positions.

1.2          Duties.  During the Employment Period, the Executive
shall do and perform all services and acts necessary or advisable to fulfill
the duties and responsibilities of the Executive’s positions and shall render
such services on the terms set forth herein. 
In addition, the Executive shall have such other executive and managerial
powers and duties as may reasonably be assigned to the Executive, commensurate
with the Executive serving as a Senior Vice President.  The Company may adjust the duties and
responsibilities of the Executive as a Senior Vice President, notwithstanding
the specific title set forth in Section 1.1
hereof, based upon the Company’s needs from time to time.  Except for sick leave, reasonable vacations
and excused leaves of absence, the Executive shall, throughout the Employment
Period, devote substantially all the Executive’s working time, attention,
knowledge and skills faithfully, and to the best of the Executive’s ability, to
the duties and responsibilities of the Executive’s positions in furtherance of
the business affairs and activities of the Company and its subsidiaries and
Affiliates (as defined in Section 5.4(a)
hereof) and, except where the Company provides its written consent
otherwise, shall maintain the Executive’s principal residence within 75 miles
of the principal office of the Company as of the Effective Date.  The Executive shall at all times be subject
to, comply with, observe and carry out (a) the Company’s rules, regulations,
policies and codes of ethics and/or conduct applicable to its employees
generally and in effect from time to time and (b) such rules, regulations,
policies, codes of ethics and/or conduct, directions and restrictions as the
Board of Directors of the Company (the “Board”) may from time to time
reasonably establish or approve for senior executive officers of the Company.

2.             Term of Employment.

2.1          Employment
Period.  The
employment of the Executive hereunder shall continue until December 31, 2007
(the “Initial Employment Period”), unless terminated earlier in
accordance with the provisions of Section 4
of this Agreement.

2.2          Extension.  Unless terminated earlier in accordance with
the provisions of Section 4
of this Agreement, the employment of the Executive hereunder shall continue
after the end of the Initial Employment Period for additional one (1)-year
periods (each an “Extension Period” and, together with the Initial
Employment Period, the “Employment Period”), unless the Company or the
Executive notifies the other in writing not less than one (1) year prior to the
end of the Initial Employment Period, or the end of the applicable Extension
Period, of its or the Executive’s election, in its or the Executive’s sole
discretion, not to extend the Employment Period.

3.             Compensation and General Benefits.

3.1          Base
Salary.

(a)           During the
Employment Period, the Company agrees to pay to the Executive an annual base
salary in an amount equal to $250,000 (such base salary, as may be adjusted
from time to time pursuant to Section 3.1(b),
is referred to herein as the “Base Salary”).  The Executive’s Base Salary, less amounts
required to be withheld under applicable law, shall be payable in equal
installments in accordance with the Company’s normal payroll practices and
procedures in effect from time to time for the payment of salaries to officers
of the Company, but in no event less frequently than monthly.

(b)           The Board or the
Compensation Committee established by the Board (the “Compensation Committee”)
shall review the Executive’s performance on an annual basis and, based on such
review, may change the Base Salary, as it, acting in its sole discretion, shall
determine to be reasonable and appropriate.

3.2          Bonus.  With respect to the 2006 calendar year and
with respect to each calendar year that commences during the Employment Period,
the Executive shall be eligible to receive from the Company an annual
performance bonus (the “Annual Bonus”) on a basis and in an amount to be
determined by the Board or the Compensation Committee in the exercise of its
sole discretion for the applicable year. 
The target Annual Bonus, if any, will be 40% of the Base Salary.  Any Annual Bonus earned shall be payable in
full as soon as reasonably practicable following the determination thereof, but
in no event later than May 15 of the following year, and in accordance with the
Company’s normal payroll practices and procedures.  Except as otherwise expressly provided in Section 4 hereof, any Annual Bonus (or
portion thereof) payable under this Section 3.2
shall not be payable unless the Executive is employed by the Company on the
last day of the period to which such Annual Bonus relates.

3.3          Expenses.  During the Employment Period, in addition to
any amounts to which the Executive may be entitled pursuant to the other
provisions of this Section 3 or
elsewhere herein, the Executive shall be entitled to receive reimbursement from
the Company for all reasonable and necessary expenses incurred by the Executive
in performing the 

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Executive’s duties hereunder on behalf of the Company,
subject to, and consistent with, the Company’s policies for expense payment and
reimbursement, in effect from time to time.

3.4          Fringe
Benefits. 
During the Employment Period, in addition to any amounts to which the
Executive may be entitled pursuant to the other provisions of this Section 3 or elsewhere herein, the
Executive shall be entitled to participate in, and to receive benefits under,
(a) any benefit plans, arrangements or policies made available by the Company
to its employees generally, subject to and on a basis consistent with the
terms, conditions and overall administration of each such plan, arrangement or
policy and (b) without limiting the foregoing, the benefits set forth on Exhibit B attached hereto.

3.5          Stock
Options.

(a)           The Company shall
recommend to the Option Committee of Holding, as defined in the Linens Holding
Co. Stock Option Plan (the “Plan”), that the Executive be granted
nonqualified options to purchase a total of 10,000 shares of Common Stock, par
value $0.01 per share, of Holding (the “Common Stock”) with a per share
exercise price equal to the fair market value of the Common Stock on the date
of grant, as determined by the Option Committee, which is expected to be $50.00
per share (the “Options”).  The
Options shall have a term of seven (7) years from the date of grant and be
equally divided between a “Time Option” and a “Performance Option.”  The Time Option shall become vested and
exercisable in four equal annual installments
on each of the first four anniversaries of the date of grant, subject to
the Executive’s continued employment with the Company, and the Performance
Option shall become vested and exercisable upon satisfaction of the performance
criteria set forth in the grant letter. 
Except as otherwise provided herein, the Options shall be subject to the
terms and conditions of the Plan and the form of grant letter applicable for
other senior executives of the Company approved by the Option Committee.

(b)           During the
Employment Period and subject to the approval of the Option Committee, the
Executive shall be eligible to participate in and be granted additional stock
options under the Plan.

4.             Termination.

4.1          General.  The employment of the Executive hereunder
(and the Employment Period) shall terminate as provided in Section 2 hereof, unless earlier
terminated in accordance with the provisions of this Section 4.

4.2          Death
or Disability of the Executive.

(a)           The employment of
the Executive hereunder (and the Employment Period) shall terminate upon
(i) the death of the Executive and (ii) at the option of the Company,
upon not less than fifteen (15) days’ prior written notice to the Executive or
the Executive’s personal representative or guardian, if the Executive suffers a
“Total Disability” (as defined in Section 4.2(b)
hereof).  Upon termination for death or
Total Disability, subject to reduction by any benefits paid or payable to the
Executive, the Executive’s beneficiaries or estate under any Company-sponsored
disability benefit plan program or policy for the period following such date of
termination, (A) the Company shall pay to the Executive, guardian or personal

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representative, as the case may be, the Executive’s
current Base Salary for the remainder of the Employment Period in effect
immediately prior to the date of termination and (B) subject further to
the sole discretion of the Board or the Compensation Committee, the Company may
also pay to the Executive, guardian or personal representative, as the case may
be, a prorated share of the Annual Bonus pursuant to Section 3.2
hereof (based on the period of actual employment) that the Executive would have
been entitled to had the Executive worked the full year during which the
termination occurred, provided that bonus targets are met for the year of such
termination.  Any bonus shall be payable
as soon as reasonably practicable following the determination thereof, but in
no event later than May 15 of the following year, and in accordance with the
Company’s normal payroll practices and procedures.

(b)           For purposes of this
Agreement, “Total Disability” shall mean (i) if the Executive is
subject to a legal decree of incompetency (the date of such decree being deemed
the date on which such disability occurred), (ii) the written
determination by a physician selected by the Company that, because of a
medically determinable disease, injury or other physical or mental disability,
the Executive is unable substantially to perform, with or without reasonable
accommodation, the material duties of the Executive required hereby, and that
such disability has lasted for ninety (90) consecutive days or any one hundred
twenty (120) days during the immediately preceding twelve (12)-month period or
is, as of the date of determination, reasonably expected to last six (6) months
or longer after the date of determination, in each case based upon medically
available reliable information or (iii) Executive’s qualifying for
benefits under the Company’s long-term disability coverage, if any.  In conjunction with determining mental and/or
physical disability for purposes of this Agreement, the Executive hereby
consents to (x) any examinations that the Board or the Compensation
Committee determines are relevant to a determination of whether the Executive
is mentally and/or physically disabled or are required by the Company
physician, (y) furnish such medical information as may be reasonably requested
and (z) waive any applicable physician patient privilege that may arise
because of such examination.

(c)           With respect to
outstanding stock options and other equity-based awards held by the Executive
as of the date of termination pursuant to this Section 4.2, (i) any such options that are not
vested or exercisable as of such date of termination shall immediately expire
and any such equity-based awards that are not vested as of such date of
termination shall immediately be forfeited and (ii) any such options that
are vested and exercisable as of such date of termination shall expire
immediately following the expiration of the one hundred eighty (180)-day period
following such date of termination.

(d)           With respect to any
shares of Common Stock held by the Executive that are vested as of the date of
termination pursuant to this Section 4.2
(or issued pursuant to the exercise of options following such date of
termination pursuant to Section 4.2(c)
hereof), for the two hundred seventy (270)-day period following such date of
termination, the Company (or its designee) shall have the right to purchase
from the Executive or the Executive’s beneficiary, as applicable, and the
Executive or the Executive’s beneficiary hereby agrees to sell any or all such
shares to the Company (or the Company’s designee) for an amount equal to the
product of (i) the per share current fair market value of a share of
Common Stock (as determined by the Board in good faith) and (ii) the
number of shares so purchased.

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4.3          Termination
by the Company Without Cause or Resignation by the Executive For Good Reason.

(a)           The Company may
terminate the Executive’s employment without “Cause” (as defined in Section 4.3(g)), and thereby terminate
the Executive’s employment (and the Employment Period) under this Agreement at
any time with no requirement for notice to the Executive.

(b)           The Executive may
resign, and thereby terminate the Executive’s employment (and the Employment
Period), at any time for “Good Reason” (as defined in Section 4.3(f) hereof), upon not less
than sixty (60) days’ prior written notice to the Company specifying in
reasonable detail the reason therefore; provided, however, that
the Company shall have a reasonable opportunity to cure any such Good Reason
(to the extent possible) within sixty (60) days after the Company’s receipt of
such notice; and provided further that, if the Company is not seeking to
cure, the Company shall not be obligated to allow the Executive to continue
working during such period and may, in its sole discretion, accelerate such
termination of employment (and the Employment Period) to any date during such
period.

(i)            Executive may not terminate
employment under this Agreement for Good Reason regarding any of the Company’s
acts or omissions of which Executive had actual notice for sixty (60) days or
more prior to giving notice of termination for Good Reason.

(ii)           A determination of whether the
Executive legitimately has Good Reason for termination of the Executive’s
employment under this Agreement, and of whether the Company has effectively
cured and thus eliminated the grounds for such Good Reason, shall be made only
by the Chief Executive Officer of the Company (the “Chief Executive Officer”),
within the Chief Executive Officer’s sole judgment and discretion, acting in
good faith after having met with the Company’s Vice President of Human
Resources.

(c)           In the event the
Executive’s employment is terminated pursuant to this Section 4.3, then, subject to Section 4.3(d) hereof, the following
provisions shall apply:

(i)            The Company shall continue to pay
the Executive the Base Salary to which the Executive would have been entitled
pursuant to Section 3.1
hereof (at the Base Salary rate during the year of termination) had the
Executive remained in the employ of the Company until the expiration of the
Employment Period in effect immediately prior to the date of termination, with
all such amounts payable in accordance with the Company’s normal payroll
practices and procedures in the same manner and at the same time as though the
Executive remained employed by the Company.

(ii)           If such termination occurs upon or
within six (6) months following a Change of Control (as defined in Exhibit A attached hereto), the
Company shall continue to pay the Executive the Base Salary to which the 

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Executive would have been entitled pursuant
to Section 3.1 hereof (at the
Base Salary rate during the year of termination) for the greater of (A) the
period set forth in Section 4.3(c)(i)
hereof or (B) a two (2)-year period following such date of termination,
with all such amounts payable in accordance with the Company’s normal payroll
practices and procedures in the same manner and at the same time as though the
Executive remained employed by the Company.

(iii)          In the event the Executive’s employment
is terminated pursuant to this Section 4.3
without Cause, and if the Company has previously effected reductions in the
Executive’s Base Salary and the base salary of all executives at the same level
as the Executive, which reductions were substantially similar, then the Base
Salary rate for purposes of Section 4.3(c)(i)
or (ii) hereof shall be the Base
Salary rate in effect immediately prior to such reductions.

(iv)          Subject to the sole discretion of the
Board or the Compensation Committee, the Company may pay to the Executive a
prorated share of the Annual Bonus pursuant to Section 3.2 hereof (based on the period of actual
employment) that the Executive would have been entitled to had the Executive
worked the full year during which the termination occurred, provided that bonus
targets are met for the year of such termination.  The bonus shall be payable as soon as
reasonably practicable following the determination thereof, but in no event
later than May 15 of the following year, and in accordance with the Company’s
normal payroll practices and procedures.

(v)           With respect to outstanding options
and other equity-based awards held by the Executive as of the date of
termination pursuant to this Section 4.3,
(A) any such options that are not vested or exercisable as of such date of
termination shall immediately expire and any such equity-based awards that are
not vested as of such date of termination shall immediately be forfeited and
(B) any such options that are vested and exercisable as of such date of
termination shall expire immediately following the expiration of the ninety
(90)-day period following such date of termination.

(vi)          With respect to any shares of Common
Stock held by the Executive that are vested as of the date of termination
pursuant to this Section 4.3
(or issued pursuant to the exercise of options following such date of
termination pursuant to Section 4.3(c)(v)
hereof), for the one hundred eighty (180)-day period following such date of
termination, the Company (or its designee) shall have the right to purchase
from the Executive, and the Executive hereby agrees to sell any or all such
shares to the Company (or the Company’s designee), for an amount equal to the
product of (A) the per share current fair market value of a share of Common Stock
(as determined by the Board in good faith) and (B) the number of shares so
purchased.

(d)           As a condition
precedent to the Executive’s right to receive the benefits set forth in Section 4.3(c) hereof, the Executive
agrees to execute a release of the 

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Company and its respective Affiliates, officers,
directors, stockholders, employees, agents, insurers, representatives and
successors from and against any and all claims that the Executive may have
against any such Person (as defined in Section 5.4(f)
hereof) relating to the Executive’s employment by the Company and the
termination thereof, such release to be in form and substance reasonably
satisfactory to the Company.

(e)           Anything in this
Agreement to the contrary notwithstanding, if it shall be determined that any
payment, vesting, distribution or transfer by the Company or any successor, or
any Affiliate of the foregoing or by any other Person or that any other event
occurring with respect to the Executive and the Company for the Executive’s
benefit, whether paid or payable or distributed or distributable under the
terms of this Agreement or otherwise (including under any employee benefit
plan) (a “Payment”) would be subject to or result in the imposition of
the excise tax imposed by Section 4999 of the Internal Revenue Code of
1986, as amended (the “Code”) (and any regulations or guidance
promulgated or issued thereunder, any successor provision, and any similar
provision of state or local income tax law) (collectively, the “Excise Tax”),
then the amount of the Payment shall be reduced to the highest amount that may
be paid by the Company or other entity without subjecting any such Payment to
the Excise Tax (the “Payment Reduction”).  The Executive shall have the right to
designate those payments or benefits that shall be reduced or eliminated under
the Payment Reduction to avoid the imposition of the Excise Tax, subject to the
confirmation of the Accounting Firm (as defined herein) with respect to the
intended effect thereof.

(i)            Subject to the provisions of Section 4.3(e)(ii), all determinations
required to be made under this Section 4.3(e),
including whether and when a Payment is subject to Section 4999 and the
assumptions to be utilized in arriving at such determination and in determining
an appropriate Payment Reduction, shall be made by KPMG LLP, or any other
nationally recognized accounting firm that shall be the Company’s outside
auditors at the time of such determination (the “Accounting Firm”),
which Accounting Firm shall provide detailed supporting calculations to the
Executive and the Company within fifteen (15) business days of the receipt of
notice from the Company or the Executive that there will be a Payment that the
Person giving notice believes may be subject to the Excise Tax.  All fees and expenses of the Accounting Firm
shall be borne by the Company.  Any
determination by the Accounting Firm shall be binding upon the Company and the
Executive in determining whether a Payment Reduction is required and the amount
thereof (subject to Sections 4.3(e)(ii)
and (iii)), in the absence of
material mathematical or legal error.

(ii)           As a result of uncertainty in the
application of Section 4999 that may exist at the time of the initial
determination by the Accounting Firm, it may be possible that in making the
calculations required to be made hereunder, the Accounting Firm shall determine
that a Payment Reduction need not be made that properly should be made (an “Overpayment”)
or that a Payment Reduction not properly needed to be made should be made (an “Underpayment”).  If, within seventy-five (75) days after the
Accounting Firm’s initial determination under Section 4.3(e)(i),
the Accounting Firm shall determine that an Overpayment was made, any such
Overpayment shall be treated for all 

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purposes, to the extent practicable and
subject to applicable law, as a loan to the Executive with interest at the
applicable Federal rate provided for in Section 1274(d) of the Code and
shall be repaid by the Executive to the Company within thirty-five (35) days
after the Executive receives notice of the Accounting Firm’s determination; provided,
however, that the amount to be repaid by the Executive to the Company
either as a loan or otherwise as a lump sum payment (where a loan is not
practicable or permitted by law) shall be reduced to the extent that any
portion of the Overpayment to be repaid will not be offset by a corresponding
reduction in tax by reason of such repayment of the Overpayment.  If the Accounting Firm shall determine that
an Underpayment was made, any such Underpayment shall be due and payable by the
Company to the Executive within thirty-five (35) days after the Company
receives notice of the Accounting Firm’s determination.

(iii)          The Executive shall give written
notice to the Company of any claim by the Internal Revenue Service that, if
successful, would require the payment by the Executive of an Excise Tax, such
notice to be provided within fifteen (15) days after the Executive shall have
received written notice of such claim. 
The Executive shall cooperate with the Company in determining whether to
contest or pay such claim and shall not pay such claim without the written
consent of the Company, which shall not be unreasonably withheld, conditioned
or delayed.

(iv)          This Section 4.3(e)
shall remain in full force and effect following the termination of the
Executive’s employment for any reason until the expiration of the statute of
limitations on the assessment of taxes applicable to the Executive for all
periods in which the Executive may incur a liability for taxes (including
Excise Taxes), interest or penalties arising out of the operation of this
Agreement.

(f)            For purposes of
this Agreement, the Executive would be entitled to terminate the Executive’s
employment for “Good Reason” if without the Executive’s prior written
consent:

(i)            the Company fails to comply with any
material obligation imposed by this Agreement;

(ii)           the Company changes the Executive’s
position from that of a Senior Vice President; provided, however,
that (A) a change in the Executive’s duties or responsibilities without a
change in the Executive’s position as a Senior Vice President shall not
constitute Good Reason and (B) nothing herein shall prohibit the Company from
changing the Executive’s specific title as a Senior Vice President,
notwithstanding the specific title set forth in Section 1.1 hereof, based upon the Company’s needs from
time to time; or

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(iii)          the Company effects a reduction in the
Executive’s Base Salary, unless all executives at the same level as the
Executive receive a substantially similar reduction in base salary.

(g)           For purposes of this
Agreement, “Cause” means the occurrence of any one or more of the
following events, and the Company shall have the sole discretion to determine
the existence of Cause:

(i)            a failure by the Executive to comply
with any obligation under this Agreement;

(ii)           the Executive’s being indicted for
(A) any felony or (B) any misdemeanor that causes or is likely to cause harm or
embarrassment to the Company or any of its Affiliates, in the reasonable
judgment of the Board;

(iii)          theft, embezzlement or fraud by the
Executive in connection with the performance of the Executive’s duties
hereunder;

(iv)          the Executive’s engaging in any
activity that gives rise to a material conflict with the Company or any of its
Affiliates;

(v)           the misappropriation by the Executive
of any material business opportunity of the Company or any of its Affiliates;

(vi)          any failure to comply with, observe or
carry out the Company’s rules, regulations, policies and codes of ethics and/or
conduct applicable to its employees generally and in effect from time to time,
including (without limitation) those regarding conflicts, potential conflicts
of interest or the appearance of a conflict of interest

(vii)         any failure to comply with, observe or
carry out the rules, regulations, policies, directions, codes of ethics and/or
conduct and restrictions established or approved by the Board from time to time
for senior executive officers of the Company, including (without limitation)
those regarding conflicts, potential conflicts of interest or the appearance of
a conflict of interest;

(viii)        substance abuse or use of illegal drugs
that, in the reasonable judgment of the Board, (A) impairs the Executive’s
performance of the Executive’s duties hereunder or (B) causes or is likely to
cause harm or embarrassment to the Company or any of its Affiliates; and

(ix)           engagement in conduct that Executive
knows or should know is injurious to the Company or any of its Affiliates.

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4.4          Termination
For Cause, Voluntary Resignation Other Than For Good Reason or Election Not to
Extend the Employment Period.

(a)           (i) The Company
may, upon action of the Board, terminate the employment of the Executive (and
the Employment Period) at any time for “Cause,” (ii) the Executive may
voluntarily resign other than for Good Reason and thereby terminate the
Executive’s employment (and the Employment Period) under this Agreement at any
time upon not less than thirty (30)-days’ prior written notice or (iii) either
the Company or the Executive may elect not to extend or further extend the
Employment Period pursuant to Section 2.2
hereof.

(b)           The following
provisions shall apply upon termination by the Company for Cause, by the
Executive as the result of resignation for other than for Good Reason, or by
the Company or the Executive at the end of the Employment Period as the result
of an election not to extend or further extend the Employment Period:

(i)            The Executive shall be entitled to
receive all amounts of earned but unpaid Base Salary and benefits accrued
through the date of such termination. 
Except as provided below, all other rights of the Executive (and all
obligations of the Company) hereunder shall terminate as of the date of such
termination.

(ii)           With respect to outstanding options
and other equity-based awards held by the Executive as of the date of
termination pursuant to this Section 4.4,
(A) any such options that are not vested or exercisable as of such date of
termination shall immediately expire and any such equity-based awards that are
not vested as of such date of termination shall immediately be forfeited and
(B) any such options that are vested and exercisable as of such date of
termination shall expire immediately following the expiration of the ninety
(90)-day period following such date of termination.

(iii)          With respect to any shares of Common
Stock held by the Executive that are vested as of the date of termination
pursuant to this Section 4.4
(or issued pursuant to the exercise of options following such date of
termination pursuant to Section 4.4(b)(ii)
hereof), for the one hundred eighty (180)-day period following such date of
termination, the Company (or its designee) shall have the right to purchase
from the Executive and the Executive hereby agrees to sell any or all such
shares to the Company (or the Company’s designee) for an amount equal to the
product of (A) the per share current fair market value of a share of
Common Stock (as determined by the Board in good faith) and (B) the number
of shares so purchased.

4.5          Resignation
from Officer Positions.  Upon the termination of the Executive’s
employment for any reason (unless otherwise agreed in writing by the Company
and the Executive), the Executive will be deemed to have resigned, without any
further action by the Executive, from any and all officer, director and/or
director positions that the Executive, immediately prior to such termination,
(a) held with the Company or any of its Affiliates and (b) held with any other
entities at the direction of, or as a result of the Executive’s affiliation
with, 

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the Company or any of its Affiliates.  If for any reason this Section 4.5
is deemed to be insufficient to effectuate such resignations, then Executive
will, upon the Company’s request, execute any documents or instruments that the
Company may deem necessary or desirable to effectuate such resignations.  In addition, the Executive hereby designates
the Secretary or any Assistant Secretary of the Company and of any Affiliate to
execute any such documents or instruments as the Executive’s attorney-in-fact
to effectuate such resignations if execution by the Secretary or any Assistant
Secretary of the Company or Affiliate is deemed by the Company or the Affiliate
to be a more expedient means to effectuate such resignation or resignations.

4.6          Section
409A of the Code. 
Notwithstanding anything to the contrary in this Agreement, the parties
mutually desire to avoid adverse tax consequences associated with the
application of Section 409A of the Code to this Agreement and agree to
cooperate fully and take appropriate reasonable actions to avoid any such
consequences under Section 409A of the Code, including delaying payments and
reforming the form of the Agreement if such action would reduce or eliminate
taxes and/or interest payable as a result of Section 409A of the Code. In this
regard, notwithstanding anything to the contrary in this Section 4, to the extent necessary to
comply with Section 409A of the Code, any payment required under this Section 4 shall be deferred for a
period of six (6) months, regardless of the circumstances giving rise to or the
basis for such payment.

5.             Confidentiality, Work Product and Non-Competition and
Non-Solicitation.

5.1          Confidentiality.

(a)           In connection with
the Executive’s employment with the Company, the Company promises to provide
the Executive with access to “Confidential Information” (as defined in Section 5.4(d) hereof) in support of
the Executive’s employment duties.  The
Executive recognizes that the Company’s business interests require a
confidential relationship between the Company and the Executive and the fullest
practical protection and confidential treatment of all Confidential
Information.  At all times, both during
and after the Employment Period, the Executive shall not directly or
indirectly:  (i) appropriate,
download, print, copy, remove, use, disclose, divulge, communicate or otherwise
“Misappropriate” (as defined in Section 5.4(e) hereof) any Confidential
Information, including, without limitation, originals or copies of any
Confidential Information, in any media or format, except for the Company’s
benefit within the course and scope of the Executive’s employment or with the
prior written consent of the Chief Executive Officer; or (ii) take or
encourage any action that would circumvent, interfere with or otherwise
diminish the value or benefit of the Confidential Information to any of the
Company Parties (as defined in Section 5.4(b) hereof).

(b)           All Confidential
Information, and all other information and property affecting or relating to
the business of the Company Parties within the Executive’s possession, custody
or control, regardless of form or format, shall remain, at all times, the
property of the respective Company Parties, the appropriation, use and/or
disclosure of which is governed and restricted by this Agreement.

(c)           The Executive
acknowledges and agrees that:

 11
 

(i)            the Executive occupies a unique
position within the Company, and the Executive is and will be intimately
involved in the development and/or implementation of Confidential Information;

(ii)           in the event the Executive breaches
this Section 5.1 with respect
to any Confidential Information, such breach shall be deemed to be a
Misappropriation of such Confidential Information; and

(iii)          any Misappropriation of Confidential
Information will result in immediate and irreparable harm to the Company.

(d)           Upon receipt of any
formal or informal request, by legal process or otherwise, seeking the
Executive’s direct or indirect disclosure or production of any Confidential
Information to any Person, the Executive shall promptly and timely notify the
Company and provide a description and, if applicable, hand deliver a copy of
such request to the Company.  The
Executive irrevocably nominates and appoints the Company as the Executive’s
true and lawful attorney-in-fact to act in the Executive’s name, place and
stead to perform any act that the Executive might perform to defend and protect
against any disclosure of Confidential Information.

(e)           At any time the
Company may request, during or after the Employment Period, the Executive shall
deliver to the Company all originals and copies of Confidential Information and
all other information and property affecting or relating to the business of the
Company Parties within the Executive’s possession, custody or control,
regardless of form or format, including, without limitation any Confidential
Information produced by the Executive. 
Both during and after the Employment Period, the Company shall have the
right of reasonable access to review, inspect, copy and/or confiscate any
Confidential Information within the Executive’s possession, custody or control.

(f)            Upon termination or
expiration of this Agreement, the Executive shall immediately return to the
Company all Confidential Information, and all other information and property
affecting or relating to the business of the Company Parties, within the
Executive’s possession, custody or control, regardless of form or format,
without the necessity of a prior Company request.

(g)           During the
Employment Period, the Executive represents and agrees that the Executive will
not use or disclose any confidential or proprietary information or trade
secrets of others, including but not limited to former employers, and that the
Executive will not bring onto the premises of the Company or access such
confidential or proprietary information or trade secrets of such others, unless
consented to in writing by said others, and then only with the prior written
authorization of the Company.

5.2          Work
Product/Intellectual Property.

(a)           Assignment.  The Executive hereby assigns to the Company
all right, title and interest to all “Work Product” (as defined in Section 5.4(h) hereof) that
(i) relates to any of the Company Parties’ actual or anticipated business,
research and development or existing or future products or services, or
(ii)  is conceived, reduced to practice, 

 12
 

developed or made using any equipment, supplies,
facilities, assets, information or resources of any of the Company Parties
(including, without limitation, any intellectual property rights).

(b)           Disclosure.  The Executive shall promptly disclose Work
Product to the Chief Executive Officer and perform all actions reasonably
requested by the Company (whether during or after the Employment Period) to
establish and confirm the ownership and proprietary interest of any of the
Company Parties in any Work Product (including, without limitation, the
execution of assignments, consents, powers of attorney, applications and other
instruments).  The Executive shall not
file any patent or copyright applications related to any Work Product except
with the written consent of the Chief Executive Officer.

5.3          Non-Competition
and Non-Solicitation.

(a)           In consideration of
the Confidential Information being provided to the Executive as stated in Section 5.1 hereof, and other good and valuable new consideration as
stated in this Agreement, including, without limitation, employment and/or
continued employment with the Company, and the business relationships, Company
goodwill, work experience, client, customer and/or vendor relationships and
other fruits of employment that the Executive will have the opportunity to
obtain, use and develop under this Agreement, the Executive agrees to the restrictive
covenants stated in this Section 5.3.

(b)           During the
Employment Period and until the end of the Restricted Period (as defined in Section 5.4(g) hereof), the Executive
agrees that the Executive will not, directly or indirectly, on the Executive’s
own behalf or on the behalf of any other Person, within the United States of
America or in any other country or territory in which the businesses of the
Company are conducted:

(i)            engage in a Competing Business,
including, without limitation, by owning, managing, operating, controlling,
being employed by, providing services as a consultant or independent contractor
to or participating in the ownership, management, operation or control of any
Competing Business;

(ii)           induce or attempt to induce any
customer, vendor, supplier, licensor or other Person in a business relationship
with any Company Party, for or with which the Executive or employees working
under the Executive’s supervision had any direct or indirect responsibility or
contact during the Employment Period, (A) to do business with a Competing
Business or (B) to cease, restrict, terminate or otherwise reduce business with
the Company for the benefit of a Competing Business, regardless of whether the
Executive initiates contact; or

(iii)          (A) solicit, recruit, persuade,
influence or induce, or attempt to solicit, recruit, persuade, influence or
induce anyone employed or otherwise retained by any of the Company Parties
(including any independent contractor or consultant), to cease or leave their
employment or contractual or consulting relationship with any Company Party,
regardless of whether the 

 13
 

Executive initiates contact for such purposes
or (B) hire, employ or otherwise attempt to establish, for any Person, any
employment, agency, consulting, independent contractor or other business
relationship with any Person who is or was employed or otherwise retained by
any of the Company Parties (including any independent contractor or
consultant).

(c)           The parties hereto
acknowledge and agree that, notwithstanding anything in Section 5.3(b)(i) hereof, (i) the
Executive may own or hold, solely as passive investments, securities of Persons
engaged in any business that would otherwise be included in Section 5.3(b)(i), as long as with
respect to each such investment the securities held by the Executive do not
exceed five percent (5%) of the outstanding securities of such Person and such
securities are publicly traded and registered under Section 12 of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”), and
(ii) the Executive may serve on the board of directors (or other
comparable position) or as an officer of any entity at the request of the
Board; provided, however, that in the case of investments
otherwise permitted under clause (i) above, the Executive shall not be
permitted to, directly or indirectly, participate in, or attempt to influence,
the management, direction or policies of (other than through the exercise of
any voting rights held by the Executive in connection with such securities), or
lend the Executive’s name to, any such Person.

(d)           The Executive
acknowledges and agrees that, for purposes of this Section 5.3,
indirect acts by the Executive shall include, without limitation, an act by the
Executive’s spouse, ancestor, lineal descendant, lineal descendant’s spouse,
sibling or other member of the Executive’s immediate family.

(e)           The Executive
acknowledges that (i) the restrictive covenants contained in this Section 5.3 hereof are ancillary to and part of an otherwise
enforceable agreement, such being the agreements concerning Confidential
Information and other consideration as stated in this Agreement, (ii) at
the time that these restrictive covenants are made, the limitations as to time,
geographic scope and activity to be restrained, as described herein, are
reasonable and do not impose a greater restraint than necessary to protect the
good will and other legitimate business interests of the Company, including
without limitation, Confidential Information (including trade secrets), client,
customer and/or vendor relationships, client and/or customer goodwill and
business productivity, (iii) in the event of termination of the Executive’s
employment, the Executive’s experiences and capabilities are such that the
Executive can obtain gainful employment without violating this Agreement and
without the Executive incurring undue hardship, (iv) based on the relevant
benefits and other new consideration provided for in this Agreement, including,
without limitation, the disclosure and use of Confidential Information, the
restrictive covenants of this Section 5.3, as applicable according to their
terms, shall remain in full force and effect even in the event of the Executive’s
involuntary termination from employment, with or without Cause and (v) the
Executive has carefully read this Agreement and has given careful consideration
to the restraints imposed upon the Executive by this Agreement and consents to
the terms of the restrictive covenants in this Section 5.3, with the knowledge that this Agreement may
be terminated at any time in accordance with the provisions hereof.

 14

5.4          Definitions.  For purposes of this Agreement, the following
terms shall have the following meanings:

(a)           An “Affiliate”
of any specified Person means any other Person, whether now or hereafter
existing, directly or indirectly controlling or controlled by, or under direct
or indirect common control with, such specified Person.  For purposes hereof, “control” or any other
form thereof, when used with respect to any Person, means the power to direct
the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the
terms “controlling” and “controlled” shall have meanings correlative to the
foregoing.

(b)           “Company Parties”
means the Company, and its direct and indirect parents, subsidiaries and
Affiliates, and their successors in interest.

(c)           “Competing
Business” means any business that competes with any of the Company Parties,
including, without limitation, any enterprise that engages in, owns or operates
businesses that market, sell, distribute, manufacture or otherwise are involved
in the home textile, housewares or home accessories industries.

(d)           Confidential
Information.

(i)            Definition. “Confidential
Information” means any and all material, information, ideas, inventions,
formulae, patterns, compilations, programs, devices, methods, techniques,
processes, know how, plans (marketing, business, strategic, technical or
otherwise), arrangements, pricing and other data of or relating to any of the
Company Parties (as well as their customers and/or vendors) that is
confidential, proprietary or trade secret (A) by its nature, (B) based on how
it is treated or designated by a Company Party, (C) because the disclosure of
which would have a material adverse effect on the business or planned business
of any of the Company Parties and/or (D) as a matter of law.

(ii)           Exclusions.  Confidential Information does not include
material, data, and/or information (A) that any Company Party has voluntarily
placed in the public domain, (B) that has been lawfully and independently
developed and publicly disclosed by third parties, (C) that constitutes the
general non-specialized knowledge and skills gained by the Executive during the
Employment Period or (D) that otherwise enters the public domain through lawful
means; provided, however, that the unauthorized appropriation,
use or disclosure of Confidential Information by the Executive, directly or
indirectly, shall not affect the protection and relief afforded by this
Agreement regarding such information.

(iii)          Inclusions. Confidential
Information includes, without limitation, the following information (including
without limitation, compilations or collections of information) relating or
belonging to any Company Party (as well as their clients, customers and/or
vendors) and created, prepared, accessed, used or reviewed by the Executive
during or after the Employment 

 15
 

Period: 
(1) product and manufacturing
information, such as ingredients, combinations of ingredients and
manufacturing processes; (2) scientific
and technical information, such as research and development, tests
and test results, formulae and formulations, studies and analysis; (3) financial and cost information, such as
operating and production costs, costs of goods sold, costs of supplies and
manufacturing materials, non-public financial statements and reports, profit
and loss information, margin information and financial performance information;
(4) customer related information,
such as customer related contracts, engagement and scope of work letters,
proposals and presentations, customer-related contacts, lists, identities and
prospects, practices, plans, histories, requirements and needs, price
information and formulae and information concerning client or customer
products, services, businesses or equipment specifications; (5) vendor and supplier related information,
such as the identities, practices, history or services of any vendors or
suppliers and vendor or supplier contacts; (6) sales, marketing and price information, such as marketing and
sales programs and related data, sales and marketing strategies and plans,
sales and marketing procedures and processes, pricing methods, practices and
techniques and pricing schedules and lists; (7) database, software and other computer related information,
such as computer programs, data, compilations of information and records,
software and computer files, presentation software and computer-stored or
backed-up information including, but not limited to, e-mails, databases,
word processed documents, spreadsheets, notes, schedules, task lists, images
and video; (8) employee-related
information, such as lists or directories identifying employees,
representatives and contractors, and information regarding the competencies
(knowledge, skill, experience), compensation and needs of employees,
representatives and contractors and training methods; and (9) business- and operation-related information,
such as operating methods, procedures, techniques, practices and processes,
information about acquisitions, corporate or business opportunities,
information about partners and potential investors, strategies, projections and
related documents, contracts and licenses and business records, files,
equipment, notebooks, documents, memoranda, reports, notes, sample books,
correspondence, lists and other written and graphic business records.

(e)           “Misappropriate”,
or any form thereof, means:

(i)            the acquisition of any Confidential
Information by a Person who knows or has reason to know that the Confidential
Information was acquired by theft, bribery, misrepresentation, breach or
inducement of a breach of a duty to maintain secrecy or espionage through
electronic or other means (each, an “Improper Means”); or

(ii)           the disclosure or use of any
Confidential Information without the express consent of the Company by a Person
who (A) used Improper Means to acquire knowledge of the Confidential
Information, (B) at the time of disclosure or use, knew or had reason to know
that his or her knowledge of the Confidential Information was (x) derived from
or through a 

 16
 

Person who had utilized Improper Means to
acquire it, (y) acquired under circumstances giving rise to a duty to maintain
its secrecy or limit its use or (z) derived from or through a Person who owed a
duty to the Company to maintain its secrecy or limit its use or (C) before a
material change of his or her position, knew or had reason to know that it was
Confidential Information and that knowledge of it had been acquired by accident
or mistake.

(f)            “Person”
means any individual, corporation, partnership, limited liability company,
joint venture, association, business trust, joint-stock company, estate, trust,
unincorporated organization, government or other agency or political
subdivision thereof or any other legal or commercial entity.

(g)           “Restricted
Period” means the longer of (i) twelve (12) months after the date of
termination of employment (the Executive’s last day of work for the Company) or
(ii) the period during which the Executive is receiving payments from the
Company pursuant to Section 4 hereof.

(h)           “Work Product”
means all patents and patent applications, all inventions, innovations,
improvements, developments, methods, designs, analyses, drawings, reports,
creative works, discoveries, software, computer programs, modifications,
enhancements, know-how, formulations, concepts and ideas, and all similar or
related information (in each case whether or not patentable), all copyrights
and copyrightable works, all trade secrets, confidential information, and all other
intellectual property and intellectual property rights that are conceived,
reduced to practice, developed or made by the Executive either alone or with
others in the course of employment with the Company (including employment prior
to the date of this Agreement).

5.5          Remedies.  Because the Executive’s services are unique
and because the Executive has access to Confidential Information, the Executive
acknowledges and agrees that if the Executive breaches any of the provisions of
Section 5 hereof, the Company
may suffer immediate and irreparable harm for which monetary damages alone will
not be a sufficient remedy.  The
restrictive covenants stated in Section 5
hereof are without prejudice to the Company’s rights and causes of action at
law.

5.6          Interpretation;
Severability.

(a)           The Executive has
carefully considered the possible effects on the Executive of the covenants not
to compete, the confidentiality provisions and the other obligations contained
in this Agreement, and the Executive recognizes that the Company has made every
effort to limit the restrictions placed upon the Executive to those that are
reasonable and necessary to protect the Company’s legitimate business
interests.

(b)           The Executive
acknowledges and agrees that the restrictive covenants set forth in this
Agreement are reasonable and necessary in order to protect the Company’s valid
business interests.  It is the intention
of the parties hereto that the covenants, provisions and agreements contained
herein shall be enforceable to the fullest extent allowed by law.  If any covenant, provision or agreement
contained herein is found by a court having jurisdiction to be unreasonable in
duration, scope or character of restrictions, or otherwise to be 

 17
 

unenforceable,
such covenant, provision or agreement shall not be rendered unenforceable
thereby, but rather the duration, scope or character of restrictions of such
covenant, provision or agreement shall be deemed reduced or modified with
retroactive effect to render such covenant, provision or agreement reasonable
or otherwise enforceable (as the case may be), and such covenant, provision or
agreement shall be enforced as modified. 
If the court having jurisdiction will not review the covenant, provision
or agreement, the parties hereto shall mutually agree to a revision having an
effect as close as permitted by applicable law to the provision declared
unenforceable.  The parties hereto agree
that if a court having jurisdiction determines, despite the express intent of
the parties hereto, that any portion of the covenants, provisions or agreements
contained herein are not enforceable, the remaining covenants, provisions and
agreements herein shall be valid and enforceable.  Moreover, to the extent that any provision is
declared unenforceable, the Company shall have any and all rights under
applicable statutes or common law to enforce its rights with respect to any and
all Confidential Information or unfair competition by the Executive.

6.             Miscellaneous.

6.1          Public
Statements.

(a)           Media
Nondisclosure.  The Executive agrees
that during the Employment Period or at any time thereafter, except as may be
authorized in writing by the Company, the Executive will not directly or
indirectly disclose or release to the Media any information concerning or
relating to any aspect of the Executive’s employment or termination from
employment with the Company and/or any aspect of any dispute that is the
subject of this Agreement.  For the
purposes of this Agreement, the term “Media” includes, without
limitation, any news organization, station, publication, show, website, web log
(blog), bulletin board, chat room and/or program (past, present and/or future),
whether published through the means of print, radio, television and/or the
Internet or otherwise, and any member, representative, agent and/or employee of
the same.

(b)           Non-Disparagement.  The Executive agrees that during the
Employment Period or at any time thereafter, the Executive  will not make any statements, comments or
communications in any form, oral, written or electronic to any Media or any
customer, client or supplier of the Company or any of its Affiliates, which
would constitute libel, slander or disparagement of the Company or any of its
Affiliates, including, without limitation, any such statements, comments or
communications that criticize, ridicule or are derogatory to the Company or any
of its Affiliates; provided, however, that the terms of this Section 6.1(b) shall not apply to
communications between the Executive and, as applicable, the Executive’s attorneys
or other persons with whom communications would be subject to a claim of
privilege existing under common law, statute or rule of procedure.  The Executive further agrees that the
Executive will not in any way solicit any such statements, comments or
communications from others.

6.2          ARBITRATION.  SUBJECT TO THE RIGHTS UNDER SECTION 6.3
HEREOF TO SEEK INJUNCTIVE OR OTHER EQUITABLE RELIEF, BINDING ARBITRATION SHALL
BE THE EXCLUSIVE REMEDY FOR ANY AND ALL DISPUTES, CLAIMS OR CONTROVERSIES,
WHETHER STATUTORY, CONTRACTUAL OR OTHERWISE, BETWEEN THE PARTIES HERETO ARISING

 18
 

UNDER
OR RELATING TO THIS AGREEMENT OR THE EXECUTIVE’S EMPLOYMENT BY OR TERMINATION
FROM THE COMPANY (INCLUDING, BUT NOT LIMITED TO, THE AMOUNT OF DAMAGES, OR THE
CALCULATION OF ANY BONUS OR OTHER AMOUNT OR BENEFIT DUE)  (COLLECTIVELY, “DISPUTES”).  THE PARTIES EACH WAIVE THE RIGHT TO A JURY
TRIAL AND WAIVE THE RIGHT TO ADJUDICATE THEIR DISPUTES UNDER THIS AGREEMENT
OUTSIDE THE ARBITRATION FORUM PROVIDED FOR IN THIS AGREEMENT, EXCEPT AS
OTHERWISE PROVIDED IN THIS AGREEMENT.  In the event either party provides a notice of
arbitration of any dispute to the other party, the parties agree to submit that
dispute to a single arbitrator selected from a panel of arbitrators of JAMS
located in greater New York City-Southern New Jersey area.  The arbitration will be governed by the JAMS
Comprehensive Arbitration Rules and Procedures in effect at the time the
arbitration is commenced.  If for any
reason JAMS cannot serve as the arbitration administrator, the Company may
select an alternative arbitration administrator such as the American
Arbitration Association, to serve under the terms of this Agreement.

(a)           VENUE. 
THE PARTIES STIPULATE AND AGREE THAT THE EXCLUSIVE VENUE OF ANY SUCH
ARBITRATION PROCEEDING (AND OF ANY OTHER PROCEEDING, INCLUDING ANY COURT
PROCEEDING, UNDER THIS AGREEMENT) SHALL BE PASSAIC COUNTY, NEW JERSEY (THE “AGREED
VENUE”).

(b)           Authority and
Decision.  The arbitrator shall have
the authority to award the same damages and other relief that a court could
award.  The arbitrator shall issue a
reasoned award explaining the decision and any damages awarded.  The arbitrator’s decision will be final and
binding upon the parties and enforceable by a court of competent
jurisdiction.  The parties will abide by
and perform any award rendered by the arbitrator.  In rendering the award, the arbitrator shall
state the reasons therefor, including (without limitation) any computations of
actual damages or offsets, if applicable.

(c)           Fees and Costs.
 In the event of arbitration under the
terms of this Agreement, the fees charged by JAMS or other arbitration
administrator and the arbitrator shall be borne by the parties as determined by
the arbitrator, except for any initial registration fee, which the parties
shall bear equally.  Otherwise, the
parties shall each bear their own costs, expenses and attorneys’ fees incurred
in arbitration; provided, however, that the prevailing party
shall be entitled to recover and have awarded its attorneys’ fees, court costs,
arbitration expenses, and its portion of the fees and costs charged by JAMS or
other arbitration administrator, regardless of which party initiated the
proceedings, in addition to any other relief to which it may be entitled.

(d)           Limited Scope.  The following are excluded from binding
arbitration under this Agreement:  claims
for workers’ compensation benefits or unemployment benefits; replevin; and
claims for which a binding arbitration agreement is invalid as a matter of law.

6.3          Injunctive
Relief.  The
parties hereto may seek injunctive relief in arbitration; provided, however,
that as an exception to the arbitration agreement set forth in 

 19
 

Section 6.2
hereof, the parties, in addition to all other available remedies, shall each
have the right to initiate an action in any court of competent jurisdiction in
order to request injunctive or other equitable relief regarding the terms of Sections 5 or 6.2 hereof. 
The exclusive venue of any such proceeding shall be in the Agreed
Venue.  The parties agree (a) to submit
to the jurisdiction of any competent court in the Agreed Venue, (b) to waive
any and all defenses the Executive may have on the grounds of lack of
jurisdiction of such court and (c) that neither party shall be required to post
any bond, undertaking or other financial deposit or guarantee in seeking or
obtaining such equitable relief. 
Evidence adduced in any such proceeding for an injunction may be used in
arbitration as well.  The existence of
this right shall not preclude or otherwise limit the applicability or exercise
of any other rights and remedies that a party hereto may have at law or in
equity.

6.4          Settlement
of Existing Rights.  In exchange for the other terms of this
Agreement, the Executive acknowledges and agrees that: (a) the Executive’s
entry into this Agreement is a condition of employment and/or continued
employment with the Company, as applicable; (b) except as otherwise provided
herein, this Agreement will replace any existing employment agreement between
the parties and thereby act as a novation, if applicable; (c) the Executive is
being provided with access to Confidential Information, including, without
limitation, proprietary trade secrets of one or more Company Parties, to which
the Executive has not previously had access; (d) all Company inventions and
intellectual property developed by the Executive during any past employment
with the Company and all goodwill developed with the Company’s clients,
customers and other business contacts by the Executive during any past employment
with Company, as applicable, is the exclusive property of the Company; and (e)
all Confidential Information and/or specialized training accessed, created,
received or utilized by the Executive during any past employment with Company,
as applicable, will be subject to the restrictions on Confidential Information
described in this Agreement, whether previously so agreed or not.

6.5          Entire
Agreement; Waiver. 
This Agreement contains the entire agreement between the Executive and
the Company with respect to the subject matter hereof, and supersedes any and
all prior understandings or agreements, whether written or oral. No
modification or addition hereto or waiver or cancellation of any provision
hereof shall be valid except by a writing signed by the party to be charged
therewith.  No delay on the part of any
party to this Agreement in exercising any right or privilege provided hereunder
or by law shall impair, prejudice or constitute a waiver of such right or privilege.

6.6          Governing
Law.  This
Agreement shall be governed by and construed in accordance with the laws of the
State of New Jersey, without regard to principles of conflict of laws.

6.7          Successors
and Assigns; Binding Agreement.  The rights and obligations of the parties
under this Agreement shall be binding upon and inure to the benefit of the
parties hereto and their heirs, personal representatives, successors and
permitted assigns.  This Agreement is a
personal contract, and, except as specifically set forth herein, the rights and
interests of the Executive herein may not be sold, transferred, assigned,
pledged or hypothecated by any party without the prior written consent of the
others.  As used herein, the term “successor”
as it relates to the Company, shall include, but not be limited to, any
successor by 

 20
 

way of merger,
consolidation or sale of all or substantially all of such Person’s assets or
equity interests.

6.8          Representation
by Counsel; Independent Judgment.  Each of the parties hereto acknowledges that
(a) it or the Executive has read this Agreement in its entirety and understands
all of its terms and conditions, (b) it or the Executive has had the
opportunity to consult with any individuals of its or the Executive’s choice
regarding its or the Executive’s agreement to the provisions contained herein,
including legal counsel of its or the Executive’s choice, and any decision not
to was the Executive’s or its alone and (c) it or the Executive is entering
into this Agreement of its or the Executive’s own free will, without coercion
from any source, based upon its or the Executive’s own independent judgment.

6.9          Interpretation.  The parties and their respective legal
counsel actively participated in the negotiation and drafting of this
Agreement, and in the event of any ambiguity or mistake herein, or any dispute
among the parties with respect to the provisions hereto, no provision of this
Agreement shall be construed unfavorably against any of the parties on the
ground that the Executive, it, or the Executive’s or its counsel was the drafter
thereof.

6.10        Survival.  The provisions of Sections 4.3(e), 5 and 6
hereof shall survive the termination of this Agreement.

6.11        Notices.  All notices and communications hereunder
shall be in writing and shall be deemed properly given and effective when
received, if sent by facsimile or telecopy, or by postage prepaid by registered
or certified mail, return receipt requested, or by other delivery service which
provides evidence of delivery, as follows:

If to the Company, to:

Linens ‘n Things, Inc.

6 Brighton Road

Clifton, New Jersey  07015

Attention:  General Counsel

with a copy (which shall not constitute notice) to:

Gardere Wynne Sewell LLP

1601 Elm Street, Suite 3000

Dallas, Texas  75201-4761

Attention:  Ronald M. Gaswirth, Esq.

Telephone:  (214) 999-4601

Facsimile:  (214) 999-3601

E-mail:  rgaswirth@gardere.com

 21
 

If to the Executive, to:

Francis M. Rowan

at the most recent address of the

Executive on file with the Company

or to such other
address as one party may provide in writing to the other party from time to
time.

6.12        Counterparts.  This Agreement may be executed in one or more
counterparts, each of which shall be deemed an original and all of which
together shall constitute one and the same instrument.  Facsimile transmission of any signed original
document or retransmission of any signed facsimile transmission will be deemed
the same as delivery of an original.  At
the request of any party, the parties will confirm facsimile transmission by
signing a duplicate original document.

6.13        Captions.  Paragraph headings are for convenience only
and shall not be considered a part of this Agreement.

6.14        No
Third Party Beneficiary Rights.  Except as otherwise provided in this
Agreement, no entity shall have any right to enforce any provision of this
Agreement, even if indirectly benefited by it.

6.15        Withholding.  Any payments provided for hereunder shall be
paid net of any applicable withholding required under Federal, state or local
law and any additional withholding to which Executive has agreed.

[REMAINDER
OF PAGE INTENTIONALLY LEFT BLANK]

 22

IN WITNESS WHEREOF, the
parties have duly executed this Agreement, intending it as a document under
seal, on the Execution Date to be effective for all purposes as of the
Effective Date.

	
  

  	
  LINENS ‘N
  THINGS, INC.

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /S/ ROBERT J. DINICOLA

  	
   

  
	
   

  	
   

  	
   

  	
  Name:

  	
   

  	
   

  
	
  

  	
   

  	
   

  	
  Title:

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  
	
   

  	
  EXECUTIVE

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
   

  	
   

  	
   

  	
   

  
	
   

  	
  /s/ FRANCIS M.
  ROWAN

  	
   

  
	
   

  	
  Name: Francis M. Rowan

  	
   

  

 

EXHIBIT A

Definition of
Change of Control

“Change of
Control” means:

(1)           any event occurs the result of which
is that any “Person,” as such term is used in Sections 13(d) and 14(d) of
the Exchange Act, other than one or more Permitted Holders or their Related
Parties, becomes the beneficial owner, as defined in Rules l3d-3 and l3d-5
under the Exchange Act (except that a Person shall be deemed to have “beneficial
ownership” of all shares that any such Person has the right to acquire within
one year) directly or indirectly, of more than 50% of the Voting Stock of
Holding or any successor company, including, without limitation, through a
merger or consolidation or purchase of Voting Stock of Holding; provided that none of the Permitted Holders or their Related
Parties have the right or ability by voting power, contract or otherwise to
elect or designate for election a majority of the Board; provided
further that the transfer of 100% of the Voting Stock of Holding to
a Person that has an ownership structure identical to that of Holding prior to
such transfer, such that Holding becomes a wholly owned Subsidiary of such
Person, shall not be treated as a Change of Control;

(2)           after an initial public offering of
Capital Stock of Holding, during any period of two (2) consecutive years,
individuals who at the beginning of such period constituted the Board, together
with any new directors whose election by such Board or whose nomination for
election by the stockholders of Holding was approved by a vote of a majority of
the directors of Holding then still in office who were either directors at the
beginning of such period or whose election or nomination for election was
previously so approved, cease for any reason to constitute a majority of the
Board then in office;

(3)           the sale, lease, transfer, conveyance
or other disposition, in one or a series of related transactions other than a
merger or consolidation, of all or substantially all of the assets of Holding
and its Subsidiaries taken as a whole to any Person or group of related Persons
other than a Permitted Holder or a Related Party of a Permitted Holder; or

(4)           the adoption of a plan relating to
the liquidation or dissolution of Holding.

For purposes of this definition, the following terms
shall have the meanings set forth below:

An “Affiliate” of
any specified Person means any other Person, whether now or hereafter existing,
directly or indirectly controlling or controlled by, or under direct or
indirect common control with, such specified Person.  For purposes hereof, “control” or any other
form thereof, when used with respect to any Person, means the power to direct
the management and policies of such Person, directly or indirectly, whether
through the ownership of voting securities, by contract or otherwise; and the terms
“controlling” and “controlled” shall have meanings correlative to the
foregoing.

“Apollo” means Apollo Management
V, L.P. and its Affiliates or any entity controlled thereby or any of the
partners thereof.

 A-1
 

“Board” means the Board of
Directors of Holding or any committee thereof duly authorized to act on behalf
of such Board of Directors.

“Capital Stock” of any Person
means any and all shares, interests, rights to purchase, warrants, options,
participations or other equivalents of or interests in, however designated,
equity of such Person, including any Preferred Stock, but excluding any debt
securities convertible into such equity.

“Exchange Act” means the
Securities Exchange Act of 1934, as amended.

“Holding” means Linens Holding
Co., a Delaware corporation.

“Permitted Holder” means any of
Apollo, NRDC Real Estate Advisors I, LLC or Silver Point Capital Fund
Investments, LLC.

“Person” means any individual,
corporation, partnership, limited liability company, joint venture,
association, business trust, joint-stock company, estate, trust, unincorporated
organization, government or other agency or political subdivision thereof or
any other legal or commercial entity.

“Preferred Stock” as applied to
the Capital Stock of any corporation means Capital Stock of any class or
classes, however designated, that is preferred as to the payment of dividends,
or as to the distribution of assets upon any voluntary or involuntary
liquidation or dissolution of such corporation, over shares of Capital Stock of
any other class of such corporation.

“Related Party” means:

(1)           any controlling stockholder, 50% (or
more) owned Subsidiary, or immediate family member (in the case of an
individual) of any Permitted Holder; or

(2)           any trust, corporation, partnership,
limited liability company or other entity, the beneficiaries, stockholders,
partners, members, owners or Persons beneficially holding an 50% or more
controlling interest of which consist of any one or more Permitted Holders
and/or such other Persons referred to in the immediately preceding clause (1).

“Subsidiary” means, with respect
to any specified Person:

(1)           any corporation, association or other
business entity of which more than 50% of the total voting power of shares of
Capital Stock entitled (without regard to the occurrence of any contingency and
after giving effect to any voting agreement or stockholders’ agreement that
effectively transfers voting power) to vote in the election of directors,
managers or trustees of the corporation, association or other business entity
is at the time owned or controlled, directly or indirectly, by that Person or
one or more of the other Subsidiaries of that Person (or a combination
thereof); and

(2)           any partnership (a) the sole general
partner or the managing general partner of which is such Person or a Subsidiary
of such Person or (b) the only general 

 A-2
 

partners of which are
that Person or one or more Subsidiaries of that Person (or any combination
thereof).

“Voting Stock”
of an entity means all classes of Capital Stock of such entity then
outstanding and normally entitled to vote in the election of directors or all
interests in such entity with the ability to control the management or actions
of such entity.

Notwithstanding anything to the contrary in this
Exhibit A, the definition of Change of Control shall be interpreted
consistently with the definition of “Change of Control” contained in
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”),
and regulations and guidance issued by the Internal Revenue Service under
Section 409A of the Code, including IRS Notice 2005-1.

 A-3

EXHIBIT B

Fringe Benefits

1.                                       Health
insurance in accordance with the Company’s health insurance plan or program in
effect from time to time.

2.                                       Prescription
drug coverage in accordance with the Company’s health insurance plan or
program, or separate prescription drug coverage plan or program, in effect from
time to time.

3.                                       Dental
insurance in accordance with the Company’s dental insurance plan or program in
effect from time to time.

4.                                       Long-term
disability insurance in accordance with the Company’s long-term disability
insurance plan or program in effect from time to time.

5.                                       Eligibility
for life insurance coverage in such amount as the Company makes available to
its employees or executives, subject to a bi-weekly payroll deduction for the
premium and completion by the Executive of any authorization documentation.

6.                                       Cellular
telephone and service.

7.                                       Annual
financial planning services through Joel Isaacson Company, or a reasonable
substitute therefor, as may be determined by the Company from time to time.

 B-1Exhibit
4.1

Amendment
to Rights Agreement

This
Amendment to Rights Agreement, dated as of March 22, 2007 (this “Amendment”),
is entered into between Hilton Hotels Corporation, a Delaware corporation (the “Company”),
and The Bank of New York, a New York trust company (the “Rights Agent”).

W I T N E
S S E T H

WHEREAS, the Company and
ChaseMellon Shareholder Services L.L.C. entered into a Rights Agreement, dated
as of November 29, 1999 (as amended, the “Rights Agreement”);

WHEREAS, the Company and The
Bank of New York entered into an Amendment to Rights Agreement Changing Rights
Agent, dated as of February 15, 2001, pursuant to which The Bank of New York
was appointed Rights Agent under the Rights Agreement; and

WHEREAS, the Board of Directors
of the Company has determined that it is in the best interests of the Company
and its stockholders to amend the Rights Agreement to change the final
expiration date of the Rights Agreement from November 29, 2009 to March 22, 2007.

NOW, THEREFORE, in consideration
of the premises and the mutual agreements herein set forth, the parties hereby
agree as follows:

1.             The
Rights Agreement is hereby modified and amended, effective as of the date
hereof, by changing the date set forth in Section 7.1 (defined as the “Final
Expiration Date”) from “the Close of Business on November 29, 2009” to “the
Close of Business on March 22, 2007.”

2.             The
Exhibits to the Rights Agreement shall be restated to reflect this Amendment, including
all necessary conforming changes.

3.             Except
as expressly set forth herein, the Rights Agreement shall remain in full force
and otherwise shall be unaffected by this Amendment.

4.             This
Amendment may be executed in multiple counterparts and each of such
counterparts shall for all purposes be deemed to be an original, and all such
counterparts shall together constitute one and the same instrument.

 

IN WITNESS WHEREOF, the parties
hereto have caused this Amendment to be duly executed and attested, all as of
the day and year first above written.

	
  

  	
   

  	
   

  	
   

  	
  Hilton Hotels Corporation

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ Bryan S. White

  	
   

  	
  By:

  	
  /s/ David A. Thompson

  
	
   

  	
   

  	
   

  	
   

  	
  Senior Vice President and

  
	
   

  	
   

  	
   

  	
   

  	
  Controller

  
	
   

  	
   

  	
   

  	
   

  	
  The Bank of New York

  
	
  Attest:

  	
   

  	
   

  	
   

  
	
  By:

  	
  /s/ S.M. Dawkins

  	
   

  	
  By:

  	
  /s/ Steven Myers

  
	
   

  	
   

  	
   

  	
   

  	
  Steven Myers

  
	
   

  	
   

  	
   

  	
   

  	
  Vice President

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