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Exhibit 10.13  

 
 

AMENDED AND RESTATED
  EMPLOYMENT AGREEMENT    
    

        THIS AMENDED AND RESTATED EMPLOYMENT AGREEMENT (the "Agreement") is entered into on May 8, 2006 (the
"Execution Date"), to be effective for all purposes as of May 8, 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 Robert Homler (the "Executive"). 

        WHEREAS,
the Company and the Executive entered in an Employment Agreement on April 12, 2006, effective as of April 17, 2006 (the "Original
Employment Agreement"); and 

        WHEREAS,
the Company and the Executive now desire to amend certain provisions of the Original Employment Agreement and restate the Original Employment Agreement, as so amended, effective
as of the Effective Date. 

        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 Executive Vice President, Merchandising 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 an Executive Vice President. The Company may adjust the duties and responsibilities of the Executive as an Executive 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 $400,000 (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 50% 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 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.    During the Employment
Period and subject to the approval of the Option Committee of Holding, as defined in the Linens Holding Co. Stock Option Plan (the "Plan"), the
Executive shall be eligible to participate in and be granted stock options under the Plan to purchase shares of Common Stock, par value $0.01 per share, of Holding (the "Common
Stock"). 

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        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
(provided, however, that no such reduction shall be made for any benefits paid upon the Executive's
death under the Company's life insurance policy), (A) the Company shall pay to the Executive, guardian or personal 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 

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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. 

        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 

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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) 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. 

        (vii) The
Executive shall continue to be entitled to the fringe benefits available to the Executive immediately preceding the Executive's date of termination pursuant to  Section 4.3, in each case
(A) through the expiration of the Employment Period in effect immediately prior to the date of termination, or,
(B) in the event that Executive's Base Salary is being paid pursuant to Section 4.3(c)(ii), for the period set forth therein. 

        (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 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. 

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        (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. Notwithstanding the foregoing, the Payment Reduction shall not apply if the Executive would, on a net after-tax basis, receive less compensation than if the Payment were not so
reduced. 

        (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 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 

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

        (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 

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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. 

        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. 

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        (c)   Before
the Company may terminate the Executive for Cause pursuant to Section 4.4(a)(i), the Board shall deliver to
the Executive a written notice of the Company's intent to terminate the Executive for Cause, and the Executive shall have been given a reasonable opportunity to cure any such acts or omissions (which
are susceptible of cure as reasonably determined by the Board) within thirty (30) days after the Executive's receipt of such notice. 

        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, 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 

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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: 

        (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, 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). 

10

 

        (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
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 

11

 

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. 

        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. 

12

 

        (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 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 

13

 

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
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. 

14

 

        (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 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 UNDER OR RELATING TO THIS AGREEMENT OR THE EXECUTIVE'S  

15

 

 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 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. 

16

 

        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 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.
 

17

 

        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 

If
to the Executive, to: 

Robert
Homler

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]

18

        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      
 Robert J. DiNicola

Chairman of the Board and

        Chief Executive Officer
	

 	
 	
EXECUTIVE
	

 	
 	

/s/  ROBERT HOMLER      
 Name: Robert Homler

  

 
 

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. 

        "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. 

A-1

 

        "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
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-2

  

 
 

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.

	8.
	The
Company will pay for the Executive's relocation from the Pittsburgh, Pennsylvania area to the Clifton, New Jersey area in accordance with the Company's policy applicable to senior
executive officers. The relocation benefits will include, without limitation, payment of or reimbursement to the Executive for (a) closing costs payable by the Executive in connection with the
sale of the Executive's personal residence in Pennsylvania, (b) closing costs payable by the Executive in connection with the purchase of a new personal residence in the Clifton, New Jersey
area, and (c) to the extent (i) the sales price received by the Executive with respect to the sale of the Executive's Pennsylvania residence, net of closing costs payable by the
Executive in connection with such sale, plus the amount of such closing costs that are paid or reimbursed by the Company pursuant to clause (a) above is less than (ii) the original
purchase price paid by the Executive for such residence, plus closing and financing costs payable by the Executive in connection with such purchase, and less any amount of such closing or financing
costs that were paid on the Executive's behalf or reimbursed to the Executive, then an amount equal to the difference between the amount in clause (i) and the amount in clause (ii) plus
a tax gross-up with respect to such amount. 

B-1

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EXHIBIT A Definition of Change of Control

EXHIBIT B Fringe BenefitsQuickLinks
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Exhibit 10.16  

 
  SEPARATION AGREEMENT
  AND GENERAL RELEASE    
    

        This Separation Agreement and General Release ("Agreement") is entered into on April 10, 2006 (the
"Execution Date"), to be effective for all purposes as of March 24, 2006, by and between Jane Gilmartin
("Executive"), and Linens 'n Things, Inc., a Delaware corporation (the "Company"). (The Executive
and the Company are referred to collectively herein as the "Parties"). 

 
 

RECITALS    
    

        WHEREAS, the Executive has been employed by the Company as a Senior Executive pursuant to an Employment Agreement, dated as of July 20, 2005, by and
between the Company and Executive (the "Employment Agreement"); and 

        WHEREAS,
the Company terminated Executive's employment without Cause following a Change in Control (as such terms are defined in the Employment Agreement), effective March 24,
2006 (the "Separation Date"), and, in connection with such termination, the Parties have agreed to settle any and all related agreements between the
Parties and their affiliates in the manner set forth herein; 

        NOW
THEREFORE, in consideration of the promises and mutual covenants contained herein, and for other good and valuable consideration, the receipt and sufficiency of which are expressly
acknowledged, the Parties agree and promise as follows: 

        1.     TERMINATION.
To the extent not already effected, the Parties hereby confirm Executive's termination from all director, officer and/or other positions, as applicable, with
the Company and each of its affiliates, as of the Separation Date. 

        2.     BENEFITS.
With respect to any benefits or rights that Executive has accrued or earned as of the Separation Date under any of the Company's employee benefit plans,
Executive shall be entitled to such benefits pursuant to the terms of such plans, if any. 

        3.     TERMINATION
BENEFITS. 

        In
consideration of Executive's release of claims and Executive's other covenants and agreements contained herein and provided that Executive has not exercised any revocation rights as
provided in Section 5 below, the Company shall compensate the Executive with severance pay and benefits as follows ("Severance Compensation"),
effective within fourteen (14) days after the Executive's execution of this Agreement: 

        (a)   The
Company shall pay the Executive her remaining base salary for 2006 (if any remains to be paid), pro rata through the Separation Date, minus deductions authorized by
Executive and/or required by law, paid in accordance with the Company's normal payroll system and practices. 

        (b)   The
Company shall pay the Executive the single, aggregate lump sum amount of One Million, Fifty Thousand Dollars and No/100 ($1,050,000.00), minus deductions authorized
by Executive and/or required by law, which sum is equal to two times Executive's most recent base salary. This lump sum amount shall be payable in accordance with the Company's normal payroll system
and practices. 

        (c)   The
Company shall pay the Executive the single, aggregate lump sum amount of Four Hundred and Seventy-Two Thousand, Five Hundred Dollars and No/100
($472,500.00), minus deductions authorized by Executive and/or required by law, which sum is equal to two times 45% of Executive's most recent base salary. This lump sum amount shall be payable in
accordance with the Company's normal payroll system and practices. 

 

        (d)   The
Company shall pay the Executive the single, aggregate lump sum amount of Fifty-Nine Thousand, Sixty-Two Dollars, and 50/100 ($59,062.50),
minus deductions authorized by Executive and/or required by law, which sum is equal to Executive's pro rata incentive bonus for 2006, based on an award (as deemed by the Employment Agreement) equal to
45% of base salary. This lump sum amount shall be payable in accordance with the Company's normal payroll system and practices. 

        (e)   The
Parties acknowledge and agree that they are subject to the terms and conditions of the provisions set forth in Section 10(e)(ix) (including subparts
(A) and (B)) of the Employment Agreement and agree to continue to be bound by those terms and conditions in accordance therewith. 

        (f)    Section 18
of the Employment Agreement shall survive Executive's termination from employment, to the extent it is applicable. 

        4.     GENERAL
RELEASE BY EXECUTIVE. 

        (a)   Executive,
individually, and on behalf of, as applicable, Executive's current, former, and successor attorneys, representatives, guardians, heirs, assigns, successors,
executors, administrators, insurers, servants, agents, employees, affiliates, and entities does hereby irrevocably GENERALLY RELEASE, ACQUIT, AND DISCHARGE the Company and the Other Released Parties
(as defined in 4(b) below), from any and all Claims and Controversies (as defined in 4(c) below); provided, however, that nothing in this Agreement will
be considered a release of Executive's claims, if any, for (i) vested employment benefits pursuant to the Employee Retirement Income Security Act of 1974 as amended, (ii) worker's
compensation insurance coverage, (iii) unemployment insurance coverage, (iv) Executive's right to enforce this Agreement, (v) indemnification as an officer, director or employee
of the Company pursuant to the Company's Certificate of Incorporation, By-laws, or applicable state law, or (vi) coverage under the Company's directors' and officers' liability
insurance, if any. 

        (b)   For
the purposes of this Agreement, the term "Other Released Parties" means, as applicable, the Company's related and
affiliated entities (including corporations, limited liability companies, firms, associations, partnerships, and joint ventures), and with respect to the Company and its related and affiliated
entities, each of their respective predecessors and successors, and each of their past, present and future employees, officers, directors, stockholders, trustees, owners, partners, members,
representatives, administrators, assigns, attorneys, agents, servants, assigns, insurers, employee benefit programs (and the trustees, administrators, fiduciaries, and insurers of such programs),
specifically including, but not limited to, Linens Investors, LLC, Apollo Management V, LP, Apollo Investment Fund V, LP, and their affiliates. 

        (c)   For
the purposes of this Agreement, the term "Claims and Controversies" means any and all claims, debts, damages,
demands, liabilities, benefits, suits in equity, complaints, grievances, obligations, promises, agreements, rights, controversies, costs, losses, remedies, attorneys' fees and expenses, back pay,
front pay, severance pay, percentage recovery, injunctive relief, lost profits, emotional distress, mental anguish, personal injuries, liquidated damages, punitive damages, disability benefits,
interest, expert fees and expenses, reinstatement, other compensation, suits, appeals, actions, and causes of action, of whatever kind or character, including without limitation, any dispute, claim,
charge, or cause of action arising under the Civil Rights Act of 1964, Title VII, 42 U.S.C. §§ 2000e et seq., as amended (including the Civil Rights Act of 1991), the Civil
Rights Act of 1866, 42 U.S.C. §§ 1981 et seq., as amended, the Equal Pay Act of 1963 (EPA), 29 U.S.C. §§ 201 et seq., as amended, the Age Discrimination
in Employment Act of 1967, 29 U.S.C. §§ 621 et seq., as amended, the Americans with Disabilities Act of 1990 (ADA), 42 U.S.C. §§ 12101 et seq., as
amended, the Rehabilitation Act of 1973, 29 U.S.C. §§ 794 et seq., as amended, the Employee Retirement Income Security Act (ERISA), 29 U.S.C. §§ 1001 et
seq., as amended, the 

2

 

Consolidated
Budget and Reconciliation Act of 1985 (COBRA), §§ 1161 et seq., as amended, the Fair Labor Standards Act (FLSA), 29 U.S.C. §§ 201 et seq.,
as amended, the Family and Medical Leave Act (FMLA), 29 U.S.C. §§ 2601 et seq., as amended, the Labor Management Relations Act (LMRA), 29 U.S.C. §§ 141
et seq., as amended, the Employee Polygraph Protection Act, 29 U.S.C. §§ 2001 et seq., as amended, the Racketeer Influenced and Corrupt Organizations Act (RICO), 18 U.S.C.
§§ 1961 et seq., as amended, the Occupational Safety and Health Act (OSHA), 29 U.S.C. §§ 651 et seq., as amended, the Electronic Communications Privacy
Act, 18 U.S.C. 2510 et seq., and 2701 et seq., as amended, the Uniform Services Employment and Re-Employment Rights Act, 38 U.S.C. §§ 4301 et seq., as amended, the
Sarbanes-Oxley Act, 18 U.S.C. § 1514A, as amended, all other applicable state and federal fair employment laws, state and federal equal employment opportunity laws, and state and federal
labor statutes and regulations, and all other constitutional, federal, state, local, and municipal law claims, whether statutory, regulatory, common law (including without limitation, breach of the
Employment Agreement, other breach of express or implied contract, wrongful discharge in violation of public policy, breach of covenant of good faith and fair dealing, promissory estoppel, quantum
meruit, fraud, fraud in the inducement, fraud in the factum, statutory fraud, negligent misrepresentation, defamation, libel, slander, slander per se, retaliation, tortious interference with
prospective contract, tortious interference with business relationship, tortious interference with contract, invasion of privacy, intentional infliction of emotional distress, and any other common law
theory of recovery, whether legal or equitable, negligent or intentional), or otherwise, whether known or unknown to the Parties, foreseen or unforeseen, fixed or contingent, liquidated or
unliquidated, directly or indirectly arising out of or relating to any and all disputes now existing between Executive on the one hand, and the Company on the other hand, whether related to or in any
way growing out of, resulting from or to result from Executive's employment with and/or termination from the Company, for or because of any matter or thing done, omitted, or allowed to be done by the
Company or the Other Released Parties, as applicable, for any incidents, including those past and present, which existed or may have existed at any time prior to and/or contemporaneously with the
execution of this Agreement, including all past, present, and future damages, injuries, costs, expenses, attorney's fees, other fees, effects and results in any way related to or connected with such
incidents. 

        (d)   Executive
understands that Executive is releasing Claims of which Executive may not be aware. This is Executive's knowing and voluntary intent, even though Executive
recognizes that some day Executive might learn that some or all of the facts that Executive currently believes to be true are untrue and even though Executive might then regret having signed this
Agreement. Nevertheless, Executive is assuming that risk and Executive agrees that this Agreement shall remain effective in all respects in any such case. It is further understood and agreed that
Executive is waiving all rights under any statute or common law principle which otherwise limits application of a general release to claims which the releasing Party does not know or suspect to exist
in her favor at the time of signing the release which, if known by her, would have materially affected her settlement with the Party being released (releasee). Executive understands the significance
of doing so. 

        (e)   Neither
Executive nor her heirs, agents, representatives or attorneys have filed or caused to be filed any lawsuit, with respect to any Claim that Executive is releasing
in this Agreement. 

        (f)    Executive
acknowledges and represents that the Company has not provided any tax advice to her in connection with this Agreement and that she has been advised by the
Company to seek tax advice from her own tax advisors regarding this Agreement and payments that may be made to Executive pursuant to this Agreement, including specifically, the application of the
provisions of Section 409A of the Internal Revenue Code of 1986, as amended to such payments. 

3

 

        (g)   Executive
acknowledges that, regarding the severance compensation and benefits stated in paragraphs 10(e)(v), (vi), (vii) (first), and (vii) (second) of
the Employment Agreement, (i) there are no restricted stock awards, deferred stock awards, stock options awards, or rights to exercise vested stock options, outstanding as of the time of this
Agreement, and none shall be paid to Executive at any time, (ii) there is no outstanding balance owed to Executive for any incentive awards earned as of December 31, 2005, and none shall
be paid to Executive at any time, and (iii) there are no deferred compensation arrangements to be settled, and none shall be paid to Executive at any time. The Parties agree that all rights to
severance compensation and benefits stated in paragraphs 10(e)(v), (vi), (vii) (first), and (vii) (second) of the Employment Agreement, if any, are terminated effective as of the
Separation Date. 

        (h)   Except
as set forth in this Agreement and with respect to any vested benefits or rights under any of the Company's "employee benefit plans" within the meaning of
Section 3(3) of the Employee Retirement Income Security Act of 1974, as amended ("ERISA"), Executive acknowledges and agrees that she is not
entitled to receive any other compensation or benefits of any sort ("Other Compensation or Benefits") including, without limitation, salary, vacation,
sick leave, personal leave, bonuses, annual incentives, stock options, short-term or long-term disability benefits, or health care coverage (except as provided under applicable
state or federal law) from the Company or any Other Released Parties, at any time. Executive hereby waives and releases any right to Other Compensation or Benefits to the extent that they are embodied
in the Employment Agreement but not this Agreement; the Parties agree that this Agreement replaces and preempts the Employment Agreement with regard to Other Compensation and Benefits. 

        5.     REVIEW
AND REVOCATION PERIOD. Executive acknowledges that: (a) the consideration provided pursuant to this Agreement is in addition to any consideration that she
would otherwise be entitled to receive; (b) she has been provided a full and ample opportunity to review this Agreement, including a period of at least twenty-one (21) days
within which to consider it; (c) to the extent that Executive takes less than twenty-one (21) days to consider this Agreement prior to execution, she acknowledges that she
had sufficient time to consider this Agreement with counsel and that she expressly, voluntarily and knowingly waives any additional time; and (d) Executive is aware of her right to revoke this
Agreement at any time within the seven (7) day period following the date on which she signs the Agreement and that the Agreement shall not become effective or enforceable until the seven
(7) day revocation period expires (the "Revocation Expiration Date"). Any such revocation must be in writing, must specifically revoke this
Agreement, and must be received by the Chairman of the Board of Directors of the Company no later than 5:00 p.m. Eastern Standard Time on the Revocation Expiration Date. Executive further
understands that she shall relinquish any right she has to the Severance Compensation set forth in this Agreement if she exercises her right to revoke this Agreement. 

        6.     RETURN
OF THE COMPANY'S DOCUMENTS AND PROPERTY. 

        (a)   Executive
represents and warrants that she has returned all records, documents, proposals, notes, lists, files, and any and all other materials including, without
limitation, computerized and/or electronic information that refers, relates or otherwise pertains to the Company, its affiliates, and/or their respective partners, principals, officers, directors,
stockholders, managers, employees, agents, representatives, or insurance companies, or their respective predecessors, successors or assigns at any time. In addition, Executive represents and warrants
that she has returned to the Company all property or equipment that she has been issued during the course of her employment or which she otherwise currently possesses, including, without limitation,
keys, business credit cards, identification badges, or any similar items issued or provided by the Company and/or its affiliates. Executive is not authorized to retain any copies of any such records,
documents, proposals, notes, lists, files or materials, nor is she authorized to retain any other of the Company's or its affiliates' property or equipment. 

4

 

        (b)   Executive
represents and warrants that she has not incurred any outstanding charges on credit cards issued or provided by the Company and/or its affiliates, either as
personal charges or business expenses to be paid by the Company and/or its affiliates. Executive agrees that the Company may offset any amounts due the Company and/or its affiliates from Executive, if
any, against the final payment of base salary owed to Executive. 

        (c)   By
executing this Agreement, Executive is certifying that she has complied with Section 6 of this Agreement. The Company is not aware of any information contrary
to the Executive's representations and warranties contained in this Section 6 of the Agreement. 

        7.     CONFIDENTIALITY/INTELLECTUAL
PROPERTY. Executive acknowledges and agrees that she is subject to the terms and conditions of the Confidentiality/Intellectual Property
provisions set forth in Section 12 of the Employment Agreement and agrees to continue to be bound by those terms and conditions in accordance therewith, provided however, that Executive may
disclose this Agreement and the Employment Agreement to a future employer or entity engaging her services, if she first obtains the new employer's or entity's agreement to keep such documents and
their contents confidential. Executive further acknowledges and agrees that she has an obligation not to disclose any attorney work product and/or attorney-client communications of which she is aware
and/or to which she had access. 

        8.     NON-SOLICITATION.
Executive acknowledges and agrees that she is subject to the terms and conditions of the Non-solicitation of Employees provision
set forth in Section 14 of the Employment Agreement and agrees to continue to be bound by those terms and conditions in accordance therewith. 

        9.     COOPERATION
BY EXECUTIVE. The Parties acknowledge and agree that they are subject to the terms and conditions of the Litigation Cooperation provisions set forth in
Section 12 of the Employment Agreement and agree to continue to be bound by those terms and conditions in accordance therewith. 

        10.   NON-ADMISSION
OF LIABILITY. Nothing in this Agreement shall be construed as an admission of liability by Executive or the Released Parties; rather, Executive
and the Released Parties are resolving all matters arising out of their employer-employee relationship and all other relationships between Executive and the Released Parties, as to which the Released
Parties and Executive each deny any liability. 

        11.   NON-DISPARAGEMENT.
Except as otherwise required by law, Executive will not make, publish, or disseminate any derogatory statements or comments about the
Company or its respective officers and directors; or take any action which a reasonable person would expect would impair the good will, business reputation, or good name of any of them. Except as
otherwise required by law, Senior Executives of the Company with actual authority to speak or write on the matter will not make, publish, or disseminate any derogatory statements or comments about the
Executive; or take any action which a reasonable person would expect would impair the good will, business reputation, or good name of the Executive. 

5

 

        12.   ARBITRATION.
The Parties agree that any claim or controversy (including all claims pursuant to common and statutory law) relating to this Agreement or arising out or
relating to the subject matter of this Agreement (including, without limitation, Executives employment with or termination from the Company) shall be resolved exclusively through binding arbitration.
Subject to the terms and any exceptions provided in this Agreement, 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. All aspects of any such arbitration shall be kept strictly confidential by the Parties, so that the Parties shall not make any public or media comment
or unsealed lawsuit filing regarding the facts or circumstances of any dispute underlying such arbitration. The arbitration shall be administered by a single arbitrator with the American Arbitration
Association ("AAA") in accordance with its then-current applicable rules and procedures; the Company may select a different arbitration
administrator to fulfill this provision if AAA cannot serve. Any such arbitration proceeding shall take place exclusively in Clifton, New Jersey. The arbitrator will have the authority to award the
same remedies, damages and costs that a court could award, including injunctive relief and damages. The arbitrator shall issue a reasoned award explaining the decision, the reasons for the decision
and any damages awarded. The arbitrator's decision will be final and binding. The judgment on the award rendered by the arbitrator may be entered with and enforced by any court of competent
jurisdiction. In the event of arbitration under the terms of this Agreement, the fees charged by AAA and/or the individual arbitrator shall be borne equally by the Parties except as otherwise provided
herein. The Parties shall each bear their own costs and attorneys' fees incurred in arbitration except as otherwise provided herein. Either of the Parties may seek injunctive relief in arbitration;  provided,
however, that as a narrow exception to the arbitration agreement set forth herein, the Parties 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 4, 6, 7, 8, 11, and/or
12 of this Agreement. The exclusive venue of any such proceeding shall be Clifton, New Jersey. 

        13.   BINDING
EFFECT. This Agreement shall be binding and inure to the benefit of the Parties and their respective heirs, administrators, representatives, executors,
successors, and assigns. 

        14.   SEVERABILITY.
While the provisions contained in this Agreement are considered by the Parties to be reasonable in all circumstances, it is recognized that some provisions
may fail for technical reasons. Accordingly, it is hereby agreed and declared that if any one or more of such provisions shall, either by itself or themselves or taken with others, be adjudged to be
invalid as exceeding what is reasonable in all circumstances for the protection of the interests of the Company, but would be valid if any particular restrictions or provisions were deleted or
restricted or limited in a particular manner, then said provisions shall apply with any such deletions, restrictions, limitations, reductions, curtailments, or modifications as may be necessary to
make them valid and effective, and the remaining provisions shall be unaffected thereby. 

        15.   ENTIRE
AGREEMENT; MODIFICATION. This Agreement constitutes the entire understanding among the Parties with respect to the matters set forth herein, except as otherwise
stated in this Agreement, and may not be modified without the express written consent of the Parties. Except as specified herein (including but not limited to the terms of Sections 3, 4, 7, 8 and 9 of
this Agreement), this Agreement supersedes all prior written and/or oral and all contemporaneous oral agreements, understandings and negotiations regarding the subject matter hereof. 

        16.   INTERPRETATION;
GOVERNING LAW. This Agreement shall be construed as a whole according to its fair meaning and shall not be construed strictly for or against either
Party. Any uncertainty or ambiguity shall not be construed against the drafter. Captions are intended solely for convenience of reference and shall not be used in the interpretation of this Agreement.
This Agreement shall be governed by and construed and enforced pursuant to the laws of the State of New Jersey applicable to contracts made and entirely to be performed therein without regard to rules
relating to conflicts of law. 

6

 

        17.   VOLUNTARY
AGREEMENT; NO INDUCEMENTS. Each Party to this Agreement acknowledges and represents that she or it (a) has fully and carefully read this Agreement prior
to signing it, (b) has been, or has had the opportunity to be, advised by independent legal counsel of her or its own choice as to the legal effect and meaning of each of the terms and
conditions of this Agreement, and (c) is signing and entering into this Agreement as a free and voluntary act without duress or undue pressure or influence of any kind or nature whatsoever and
has not relied on any promises, representations or warranties regarding the subject matter hereof other than as set forth in this Agreement. 

        18.   WITHHOLDING.
Any payments provided for under this Agreement shall be paid net of any applicable withholding required under federal, state or local law and any additional
withholding to which the Executive has agreed. 

        19.   COUNTERPARTS.
This Agreement may be executed simultaneously in two or more counterparts, each of which shall be deemed an original and all of which together shall
constitute but 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. 

[Remainder
of this page intentionally left blank.] 

7

THIS AGREEMENT CONTAINS A PROVISION FOR BINDING ARBITRATION.

        IN
WITNESS WHEREOF, the Parties have executed this Agreement on the Execution Date, to be effective for all purposes as of the Separation Date. 

	EXECUTIVE	 	 
	

  	

 	
 	

 
	

/s/  JANE GILMARTIN      
 Jane Gilmartin	
 	

 
	
LINENS 'N THINGS, INC.	
 	

 
	

  	

 	
 	

 
	

By:	

/s/  A. DAVID BROWN      
	
 	

 
	Name:	A. David Brown	 	 
	Title:	SVP Human Resources	 	 

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SEPARATION AGREEMENT AND GENERAL RELEASE

RECITALS

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