Document:

EXHIBIT 10.1

 

SUBSCRIPTION AGREEMENT

 

THIS SUBSCRIPTION AGREEMENT (this
“Agreement”), dated as of August 16, 2006, is between Linens Holding
Co., a Delaware corporation (the “Company”) and George G. Golleher, an
individual (the “Buyer”).

WHEREAS, the Company desires to
sell to Buyer and Buyer desires to purchase from the Company, 10,000 shares of
Common Stock (the “Purchased Shares”), on the terms and conditions set
forth herein; and

NOW, THEREFORE, in consideration
of the mutual promises contained herein, Buyer and the Company hereby agree as
follows:

ARTICLE I

DEFINITIONS

1.1           Definitions.  As used in this Agreement, the following
terms shall have the meanings indicated below:

“Agreement” has the meaning ascribed to it in
the introductory paragraph of this Agreement.

“Buyer” has the meaning ascribed to it in the
introductory paragraph of this Agreement.

“Closing” has the meaning ascribed to it in
Section 3.1.

“Closing Date” has the meaning ascribed to it
in Section 3.1.

“Common Stock” means the Common Stock, $0.01
par value per share, of the Company.

“Company” has the meaning ascribed to it in the
introductory paragraph of this Agreement.

“Contract” means any note, bond, mortgage,
indenture, lease, license, franchise, contract, real property lease, agreement,
instrument, obligation, understanding, arrangement or commitment, whether
written or oral and whether express or implied.

“Governmental Authority” means any court,
tribunal, arbitrator, authority, agency, commission, official or other
instrumentality of the United States, any foreign country or any domestic or
foreign state, county, city or other political subdivision.

“Law” means law, statute, ordinance, decree,
requirement, directive, order, judgment, rule, regulation or code of any
Governmental Authority.

 

 

“Person” means any natural person or any
corporation, general partnership, limited partnership, joint venture,
association, firm, joint stock company, trust, business trust, unincorporated
association, limited liability company, Governmental Authority or other entity.

“Purchased Shares” has the meaning ascribed to
it in the recitals.

“Purchase Price” has the meaning ascribed to it
in Section 2.2.

“Securities Act” means the Securities Act of
1933.

“Stockholders’ Agreement” means the
Stockholders’ Agreement, dated as of February 14, 2006, by and among, the
Company and the stockholders of the Company party thereto.

1.2           Interpretation.  In this Agreement, unless the context
otherwise requires, the singular shall include the plural, the masculine shall
include the feminine, and vice versa. 
The term “includes” or “including” shall mean “including without
limitation.”  References to a Section,
Article or Schedule shall mean a Section, Article or Schedule of this
Agreement.  Any reference to a “party” or
“parties” shall mean a party or the parties, respectively, to this Agreement.

ARTICLE
II

PURCHASE
AND SALE OF PURCHASED SHARES

2.1           Purchase and Sale of Purchased Shares.  Upon the terms and subject to the conditions
set forth in this Agreement, at the Closing, the Company shall sell and issue
to Buyer, and Buyer shall purchase, acquire and accept from the Company the
Purchased Shares.

2.2           Consideration for the Purchased Shares.  Upon the terms and subject to the conditions
set forth in this Agreement, in consideration of the sale and issuance to Buyer
of the Purchased Shares at the Closing, Buyer shall pay to the Company, at the
Closing, $50.00 for each share of Common Stock, or in the aggregate, five
hundred thousand dollars ($500,000.00) (the “Purchase Price”).

ARTICLE
III

THE
CLOSING

3.1           Closing.

(a)           The closing of the
purchase and sale of the Purchased Shares hereunder (the “Closing”)
shall take place simultaneously with the execution and delivery of this
Agreement (the date on which the Closing occurs is referred to herein as the “Closing
Date”).  The Closing shall take place
at the Company’s headquarters in Clifton, New Jersey.  The Closing shall be effective as of the
close of business on the Closing Date.

 2
 

 

 

(b)           At the Closing,
(i) Buyer shall deliver to the Company the Purchase Price by wire transfer
of immediately available funds to the account set forth on Schedule 3.1(b);
(ii) Buyer shall deliver to the Company a Joinder Agreement with respect
to the Stockholders’ Agreement duly executed by Buyer; and (iii) the
Company shall deliver to Buyer one or more certificates representing the
Purchased Shares.

ARTICLE
IV

REPRESENTATIONS
AND WARRANTIES OF SELLER

The Company hereby makes the following representations
and warranties to Buyer:

4.1           Organization and Good Standing.  The Company is a corporation, duly organized,
validly existing and in good standing under the Laws of the State of Delaware.

4.2           Authorization.  The Company has all requisite corporate
power and authority to execute and deliver this Agreement, to perform its
obligations hereunder and to consummate the transactions contemplated
hereby.  The execution, delivery and
performance of this Agreement by the Company and the consummation by the
Company of the transactions contemplated hereby have been duly and validly
authorized by all necessary corporate action and no other corporate proceedings
on the part of the Company are necessary to authorize this Agreement or to
consummate the transactions so contemplated. 
This Agreement, when executed and delivered by Buyer, shall constitute a
valid and legally binding obligation of the Company enforceable against it in
accordance with its terms, subject to applicable bankruptcy, insolvency,
reorganization, moratorium and similar laws affecting creditors; rights and
remedies generally, and subject, as to enforceability, to general principles of
equity, including principles of commercial reasonableness, good faith and fair
dealing (regardless of whether enforcement is sought in a proceeding at law or
in equity).

4.3           No Conflict.  Neither the execution, delivery or
performance by the Company of this Agreement nor the consummation by the
Company of the transactions contemplated hereby will, with or without the
giving of notice or the lapse of time or both, (i) violate any provision
of any organizational document of the Company or (ii) violate any Law or
other restriction of any Governmental Authority or court to which the Company
may be subject.  The execution and
delivery of this Agreement by the Company does not, and the performance of this
Agreement by the Company and the consummation by the Company of the
transactions contemplated hereby will not, require any consent, approval,
authorization or permit of, or any filing with or notification to, any
Governmental Authority.

4.4           Ownership and Issuance of Purchased Shares.  The Purchased Shares being purchased by
Buyer hereunder, when issued, sold, and delivered in accordance with the terms
of this Agreement for the consideration expressed herein, will be duly and
validly issued, fully paid, and nonassessable, and will be free of restrictions
on transfer other than restrictions on transfer under this Agreement and the
Stockholders Agreement and under applicable state and federal securities laws.

 3
 

 

 

ARTICLE V

REPRESENTATIONS
AND WARRANTIES OF BUYER

Buyer hereby makes the following representations and
warranties to the Company:

5.1           Authorization.  Buyer has full right, authority and power to
enter into this Agreement and all agreements, documents and instruments
executed by Buyer in connection herewith and to carry out the transactions
contemplated hereby and thereby.  All
action on the part of Buyer necessary for authorization, execution and delivery
of this Agreement and the performance of all Buyer’s obligations hereunder has
been taken and no other proceedings on the part of Buyer are necessary to
authorize this Agreement or to consummate the transactions contemplated
hereby.  This Agreement, when executed
and delivered by the Company, shall constitute a valid and legally binding
obligation of Buyer enforceable against it in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization, moratorium and
similar laws affecting creditors; rights and remedies generally, and subject,
as to enforceability, to general principles of equity, including principles of
commercial reasonableness, good faith and fair dealing (regardless of whether
enforcement is sought in a proceeding at law or in equity).

5.2           No Conflicts.  Neither the execution, delivery or performance
by Buyer of this Agreement nor the consummation by Buyer of the transactions
contemplated hereby will, with or without the giving of notice or the lapse of
time or both, (i) violate any Law or other restriction of any Governmental
Authority or court to which Buyer may be subject or (ii) conflict with,
result in a breach of, constitute a default under, result in the acceleration
of any right or obligation under, create in any party the right to accelerate,
terminate, modify, cancel or require any notice or consent under, any Contract
to which Buyer is a party or which any of Buyer’s properties or assets is
subject.  The execution and delivery of
this Agreement by Buyer does not, and the performance of this Agreement by
Buyer and the consummation by Buyer of the transactions contemplated hereby
will not, require any consent, approval, authorization or permit of, or any
filing with or notification to, any Governmental Authority.

5.3           Acquisition for Own Account.  The Purchased Shares will be acquired by
Buyer hereunder for investment for Buyer’s own account, not as a nominee or
agent, and not with a view to the public resale or distribution thereof inside
the United States within the meaning of the Securities Act.  Buyer has no present intention of selling,
granting any participation in, or otherwise disposing of the Purchased Shares,
in each case other than in a transaction that is exempt from the registration
requirements of the Securities Act.

5.4           Disclosure of Information.  Buyer has had full access to all information
(including, without limitation, information concerning the Company and its
subsidiaries) which it considers necessary or appropriate to make an informed
investment decision with respect to the transactions contemplated by this
Agreement.  Buyer acknowledges that Buyer
has received and/or reviewed all information to the extent that is has deemed
necessary and has conducted its own investigation and,  except for the representations and warranties
of the Company set forth in Article IV hereof, is not relying upon any
disclosure by the Company or any other Person.

 4
 

 

 

5.5           Investment Experience.  Buyer understands that the transactions
contemplated by this Agreement involve substantial risk.  Buyer is an “accredited investor”, as such
term is defined in Rule 501(a) of Regulation D under the Securities Act.  Without limiting the generality of the
foregoing, Buyer has experience as an investor and acknowledges that it is able
to fend for itself, can bear the economic risk of its investment in the
Purchased Shares, including the total loss of such investment, for an
indefinite period of time, and has such knowledge and experience in financial
and business matters that it is capable of evaluating the merits and risks of
its investment in the Purchased Shares and protecting its own interests in
connection with such investment.

5.6           Restricted Securities.  Buyer understands that the Purchased Shares
are characterized as “restricted securities” under the Securities Act inasmuch
as they are being acquired by Buyer hereunder in a transaction not involving a
public offering, and that the Purchased Shares may be resold without
registration under the Securities Act only in certain limited
circumstances.  In this connection, Buyer
represents that it is familiar with and understands the resale limitations
imposed by the Securities Act.  Buyer
understands that the Company has no present intention, and is under no
obligation, to register any of the Purchased Shares under the Securities Act or
any other securities law.  Buyer further
understands that the Purchased Shares (together with any securities that may be
issued to Buyer from time to time in respect thereof) are subject to the
restrictions on transfer set forth in this Section 5 and the Stockholders
Agreement.

ARTICLE
VI

GENERAL

6.1           Expenses. 
Each of the parties will bear its own costs and expenses incurred in
connection with the negotiation and execution of this Agreement and the
consummation of the transactions contemplated hereby.

6.2           Amendment. The provisions of this Agreement
may be amended at any time and from time to time with and only with an
agreement or consent in writing signed by the Company and Buyer.

6.3           Notices. 
All notices, requests and other communications hereunder must be in
writing and will be deemed to have been duly given only if (a) delivered
personally against written receipt, (b) sent by facsimile transmission,
(c) mailed by registered or certified mail, postage prepaid, return
receipt requested, or (d) mailed by reputable international overnight courier,
fee prepaid, to the parties hereto at the following addresses or facsimile
numbers:

	
  If to the Company, to:

  	
  Linens Holdings Co.

  
	
   

  	
  6 Brighton Road

  
	
   

  	
  Clifton, New Jersey 07012

  
	
   

  	
  Fax: 973-801-8859

  
	
   

  	
  Attn: General Counsel

  

 5
 

 

 

	
  with copies to:

  	
  Gardere Wynne Sewell LLP

  
	
   

  	
  1601 Elm Street, Suite 3000

  
	
   

  	
  Dallas, TX 75201-4761

  
	
   

  	
  Fax: (214) 999-3601

  
	
   

  	
  Attn: Ronald M. Gaswirth, Esq.

  
	
   

  	
   

  
	
  If to Buyer, to:

  	
  George G. Golleher

  
	
   

  	
  11 La Senda Place

  
	
   

  	
  Laguna Beach, CA 92561

  

 

All such notices, requests and other communications
will be deemed given, (w) if delivered personally as provided in this
Section 6.3, upon delivery, (x) if delivered by facsimile
transmission as provided in this Section 6.3, upon confirmed receipt,
(y) if delivered by mail as provided in this Section 6.3, upon the
earlier of the fifth business day following mailing and receipt, and
(z) if delivered by overnight courier as provided in this
Section 6.3, upon the earlier of the second business day following the
date sent by such overnight courier and receipt (in each case regardless of
whether such notice, request or other communication is received by any other
person to whom a copy of such notice is to be delivered pursuant to this
Section 6.3).  Any party hereto may
change the address to which notices, requests and other communications
hereunder are to be delivered by giving the other parties hereto notice in the
manner set forth herein.

6.4           No Third Party Beneficiaries.  Neither this Agreement nor any provision
hereof, nor any Schedule hereto or document executed or delivered in connection
herewith, shall create any right in favor of or impose any obligation upon any
Person other than the parties hereto, their respective successors and permitted
assigns.

6.5           Headings.  Captions and paragraph headings used herein
are for convenience only, are not a part of this Agreement and shall not be
used in construing it.

6.6           Entire Agreement.  This Agreement constitutes the full and
entire understanding and agreement between the parties with regard to the
subject matter hereof and supersedes all prior oral or written (and all
contemporaneous oral) agreements or understandings with respect to the subject
matter hereof.

6.7           Counterparts.  This Agreement may be executed in any number
of counterparts, each of which may be executed by less than all of the parties
hereto, each of which shall be enforceable against the parties actually
executing such counterparts, and all of which together shall constitute one
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.

6.8           Enforcement.  The parties expressly agree that the
provisions of this Agreement may be specifically enforced against each of the
parties hereto in any court of competent jurisdiction.

 6
 

 

 

6.9           Successors and Assigns.  Except as otherwise provided herein, the
provisions hereof shall inure to the benefit of, and be binding upon, the
successors, assigns, heirs, executors, and administrators of the parties
hereto.

6.10         Consent to Jurisdiction.  The parties hereto irrevocably submit, in any
legal action or proceeding relating to this Agreement, to the jurisdiction of
the courts of the United States located in the State of Delaware or in any
Delaware state court and consent that any such action or proceeding may be
brought in such courts and waive any objection that they may now or hereafter
have to the venue of such action or proceeding in any such court or that such
action or proceeding was brought in an inconvenient forum.

6.11         Governing Law.  This Agreement shall be governed by and
construed in accordance with the internal laws of the State of Delaware,
without giving effect to its principles of conflict of laws.

6.12         Severability.  If any provision of this Agreement shall
be invalid, illegal or unenforceable, the validity, legality and enforceability
of the remaining provisions shall not in any way be affected or impaired
thereby.

[Signature
page to follow]

 

 7

 

 

IN WITNESS WHEREOF, the parties
have duly signed this Agreement the day and year first written above.

	
   

  	
  THE COMPANY:

  
	
   

  	
   

  
	
   

  	
  LINENS HOLDING CO.

  
	
   

  	
   

  
	
   

  	
  By:

  	
  /s/ ROBERT J.
  DINICOLA

  
	
   

  	
   

  	
  Robert J. DiNicola

  
	
   

  	
   

  	
  Chairman of the Board and Chief Executive Officer

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  BUYER:

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  GEORGE G. GOLLEHER

  
	
   

  	
   

  	
   

  
	
   

  	
   

  	
  /s/ GEORGE G.
  GOLLEHERExhibit 10.2

 

JOINDER AGREEMENT

This Agreement is made and entered into as of the 16th
day of August, 2006, by and between Linens Holding Co. (the “Company”),
and the person whose name appears below (the “Admitted Stockholder”).

1.             Admission.  The Admitted Stockholder is hereby admitted
to the Company as a “Stockholder” (as such term is defined in the Stockholders’
Agreement) and shall have all the rights and be subject to all the obligations
of a Stockholder under the Stockholders’ Agreement, dated as of February 14,
2006 (the “Stockholders’ Agreement”), between the Company and the
stockholders party thereto.

2.             Agreement to be bound by
the Stockholders’ Agreement. 
The Admitted Stockholder acknowledges receipt of a copy of the
Stockholders’ Agreement, a copy of which is attached hereto.  The Admitted Stockholder agrees to be bound
by all the terms and conditions of such agreement, which are incorporated
herein.

3.             Capital Contribution and
Stock Grant.  The Admitted
Stockholder shall make a capital contribution pursuant to that certain
Subscription Agreement, dated as of the date hereof, between the Company and
the Admitted Stockholder, and shall be granted shares of common stock in the
Company, as set forth below:

	
  a.

  	
   

  	
  Capital Contribution
  ($):

  	
   

  	
  $

  	
  500,000

  	
   

  
	
  b.

  	
   

  	
  Number of shares of common stock in the Company:

  	
   

  	
  10,000

  	
   

  

 

4.             Counterparts.  This Agreement may be executed in multiple
counterparts.  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.

	
  Company:

  
	
   

  
	
  LINENS HOLDING CO.

  
	
   

  
	
  By:

  	
  /s/ ROBERT J. DINICOLA

  	
   

  
	
   

  	
  Robert J. DiNicola

  
	
   

  	
  Chairman of the Board and Chief Executive Officer

  
	
   

  	
   

  
	
  Admitted Stockholder:

  
	
   

  
	
  GEORGE G. GOLLEHER

  
	
   

  
	
  /s/ GEORGE G. GOLLEHER

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00109-of-00352.parquet"}]]