Document:

EX-10.2

Exhibit 10.2

FORM OF VULCAN MATERIALS COMPANY

CHANGE OF CONTROL EMPLOYMENT AGREEMENT

(Modified Double Trigger)

EMPLOYMENT AGREEMENT

     AGREEMENT by and between Vulcan Materials Company, a New Jersey corporation (the “Company”)
and                                                              (the “Executive”), dated as of the ___day of ___, 2008.

     The Board of Directors of the Company (the “Board”), has determined that it is in the best
interests of the Company and its shareholders to assure that the Company will have the continued
dedication of the Executive, notwithstanding the possibility, threat or occurrence of a Change of
Control (as defined below) of the Company. The Board believes it is imperative to diminish the
inevitable distraction of the Executive by virtue of the personal uncertainties and risks created
by a pending or threatened Change of Control and to encourage the Executive’s full attention and
dedication to the Company currently and in the event of any threatened or pending Change of
Control, and to provide the Executive with compensation and benefits arrangements upon a Change of
Control which ensure that the compensation and benefits expectations of the Executive will be
satisfied and which are competitive with those of other corporations. Therefore, in order to
accomplish these objectives, the Board has caused the Company to enter into this Agreement.

NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1. Certain Definitions. (a) The “Effective Date” shall mean the first date during
the Change of Control Period (as defined in Section 1(b)) on which a Change of Control (as defined
in Section 2) occurs. Anything in this Agreement to the contrary notwithstanding, if a Change of
Control occurs and if the Executive’s employment with the Company is terminated prior to the date
on which the Change of Control occurs, and if it is reasonably demonstrated by the Executive that
such termination of employment (i) was at the request of a third party who has taken steps
reasonably calculated to effect a Change of Control or (ii) otherwise arose in connection with or
anticipation of a Change of Control, then for all purposes of this Agreement the “Effective Date”
shall mean the date immediately prior to the date of such termination of employment.

     (b) The “Change of Control Period” shall mean the period commencing on the date hereof and
ending on the third anniversary of the date hereof; provided, however, that commencing on the date
one year after the date hereof, and on each annual anniversary of such date (such date and each
annual anniversary thereof shall be hereinafter referred to as the “Renewal Date”), unless
previously terminated, the Change of Control Period shall be automatically extended so as to
terminate three years from such Renewal Date, unless at least 60 days prior to the Renewal Date the
Company shall give notice to the Executive that the Change of Control Period shall not be so
extended.

 

 

     2. Change of Control. For the purpose of this Agreement, a “Change of Control” shall
mean:

     (a) The acquisition by any individual, entity or group (within the meaning of Section 13(d)(3)
or 14(d)(2) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”)) (a “Person”)
of beneficial ownership (within the meaning of Rule 13d-3 promulgated under the Exchange Act) of
20% or more of either (i) the then outstanding shares of common stock of the Company (the
“Outstanding Company Common Stock”) or (ii) the combined voting power of the then outstanding
voting securities of the Company entitled to vote generally in the election of directors (the
“Outstanding Company Voting Securities”); provided, however, that for purposes of this subsection
(a), the following acquisitions shall not constitute a Change of Control: (i) any acquisition
directly from the Company, (ii) any acquisition by the Company, (iii) any acquisition by any
employee benefit plan (or related trust) sponsored or maintained by the Company or any corporation
controlled by the Company or (iv) any acquisition by any corporation pursuant to a transaction
which complies with clauses (i), (ii) and (iii) of subsection (c) of this Section 2; or

     (b) Individuals who, as of the date hereof, constitute the Board (the “Incumbent Board”) cease
for any reason to constitute at least a majority of the Board; provided, however, that any
individual becoming a director subsequent to the date hereof whose election, or nomination for
election by the Company’s shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board shall be considered as though such individual were a
member of the Incumbent Board, but excluding, for this purpose, any such individual whose initial
assumption of office occurs as a result of an actual or threatened election contest with respect to
the election or removal of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board; or

     (c) Consummation of a reorganization, merger or consolidation or sale or other disposition of
all or substantially all of the assets of the Company (a “Business Combination”), in each case,
unless, following such Business Combination, (i) all or substantially all of the individuals and
entities who were the beneficial owners, respectively, of the Outstanding Company Common Stock and
Outstanding Company Voting Securities immediately prior to such Business Combination beneficially
own, directly or indirectly, more than 60% of, respectively, the then outstanding shares of common
stock and the combined voting power of the then outstanding voting securities entitled to vote
generally in the election of directors, as the case may be, of the corporation resulting from such
Business Combination (including, without limitation, a corporation which as a result of such
transaction owns the Company or all or substantially all of the Company’s assets either directly or
through one or more subsidiaries) in substantially the same proportions as their ownership,
immediately prior to such Business Combination of the Outstanding Company Common Stock and
Outstanding Company Voting Securities, as the case may be, (ii) no Person (excluding any
corporation resulting from such Business Combination or any employee benefit plan (or related
trust) of the Company or such corporation resulting from such Business Combination) beneficially
owns, directly or indirectly, 20% or more of, respectively, the then outstanding shares of common
stock of the corporation resulting from such Business Combination or the combined voting power of
the then outstanding voting securities of such corporation except to the extent that such ownership
existed prior to the Business Combination and (iii) at least a majority of the members of the board
of directors of the corporation resulting from such Business Combination were members of the
Incumbent Board at the time of the execution of the initial agreement, or of the action of the
Board, providing for such Business Combination; or

     (d) Approval by the shareholders of the Company of a complete liquidation or dissolution of
the Company.

 

 

     3. Employment Period. The Company hereby agrees to continue the Executive in its
employ, and the Executive hereby agrees to remain in the employ of the Company subject to the terms
and conditions of this Agreement, for the period commencing on the Effective Date and ending on the
second anniversary of such date (the “Employment Period”).

     4. Terms of Employment. (a) Position and Duties. (i) During the Employment
Period, (A) the Executive’s position (including status, offices, titles and reporting
requirements), authority, duties and responsibilities shall be at least commensurate in all
material respects with the most significant of those held, exercised and assigned at any time
during the 120-day period immediately preceding the Effective Date and (B) the Executive’s services
shall be performed at the location where the Executive was employed immediately preceding the
Effective Date or any office or location less than 35 miles from such location.

     (ii) During the Employment Period, and excluding any periods of vacation and sick leave to
which the Executive is entitled, the Executive agrees to devote reasonable attention and time
during normal business hours to the business and affairs of the Company and, to the extent
necessary to discharge the responsibilities assigned to the Executive hereunder, to use the
Executive’s reasonable best efforts to perform faithfully and efficiently such responsibilities.
During the Employment Period it shall not be a violation of this Agreement for the Executive to (A)
serve on corporate, civic or charitable boards or committees, (B) deliver lectures, fulfill
speaking engagements or teach at educational institutions and (C) manage personal investments, so
long as such activities do not significantly interfere with the performance of the Executive’s
responsibilities as an employee of the Company in accordance with this Agreement. It is expressly
understood and agreed that to the extent that any such activities have been conducted by the
Executive prior to the Effective Date, the continued conduct of such activities (or the conduct of
activities similar in nature and scope thereto) subsequent to the Effective Date shall not
thereafter be deemed to interfere with the performance of the Executive’s responsibilities to the
Company.

     (b) Compensation. (i) Base Salary. During the Employment Period, the
Executive shall receive an annual base salary (“Annual Base Salary”), which shall be paid at a
monthly rate, at least equal to twelve times the highest monthly base salary paid or payable,
including any base salary which has been earned but deferred, to the Executive by the Company and
its affiliated companies in respect of the twelve-month period immediately preceding the month in
which the Effective Date occurs. During the Employment Period, the Annual Base Salary shall be
reviewed no more than 12 months after the last salary increase awarded to the Executive prior to
the Effective Date and thereafter at least annually. Any increase in Annual Base Salary shall not
serve to limit or reduce any other obligation to the Executive under this Agreement. Annual Base
Salary shall not be reduced after any such increase and the term Annual Base Salary as utilized in
this Agreement shall refer to Annual Base Salary as so increased. As used in this Agreement, the
term “affiliated companies” shall include any company controlled by, controlling or under common
control with the Company.

     (ii) Annual Bonus. In addition to Annual Base Salary, the Executive shall be awarded,
for each fiscal year ending during the Employment Period, an annual bonus (the “Annual Bonus”) in
cash at least equal to the greater of (A) the average of the Executive’s bonuses under the
Company’s Management Incentive Plan, or any comparable bonus under any predecessor or successor
plan (the “Bonus Plan”) for the last three full fiscal years prior to the Effective Date and (B)
the Executive’s annual bonus under the Bonus Plan, determined based on the target annual bonus
percentage and the Annual Base Salary in effect with respect to the Executive immediately prior to
the Effective Date for

 

 

the fiscal year in which the Effective Date occurs (and, in all cases, annualized in the event that
the Executive was not employed by the Company for the whole of any such fiscal year) (the “Recent
Annual Bonus”). Each such Annual Bonus shall be paid between January 1 and March 15 (inclusive) of
the year following the end of the fiscal year for which the Annual Bonus is awarded.

     (iii) Long-Term Incentives. During the Employment Period, the Executive shall be
entitled to participate in all long-term incentive plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated companies, but in
no event shall such plans, practices, policies and programs provide the Executive with incentive
opportunities (measured with respect to both regular and special incentive opportunities, to the
extent, if any, that such distinction is applicable), less favorable, in the aggregate, than the
most favorable of those provided by the Company and its affiliated companies for the Executive
under such plans, practices, policies and programs as in effect at any time during the 120-day
period immediately preceding the Effective Date or if more favorable to the Executive, those
provided generally at any time after the Effective Date to other peer executives of the Company and
its affiliated companies.

     (iv) Savings and Retirement Plans. During the Employment Period, the Executive shall
be entitled to participate in all savings and retirement plans, practices, policies and programs
applicable generally to other peer executives of the Company and its affiliated companies, but in
no event shall such plans, practices, policies and programs provide the Executive with savings
opportunities and retirement benefit opportunities, in each case, less favorable, in the aggregate,
than the most favorable of those provided by the Company and its affiliated companies for the
Executive under such plans, practices, policies and programs as in effect at any time during the
120-day period immediately preceding the Effective Date or if more favorable to the Executive,
those provided generally at any time after the Effective Date to other peer executives of the
Company and its affiliated companies.

     (v) Welfare Benefit Plans. During the Employment Period, the Executive and/or the
Executive’s family, as the case may be, shall be eligible for participation in and shall receive
all benefits under welfare benefit plans, practices, policies and programs provided by the Company
and its affiliated companies (including, without limitation, medical, prescription, dental,
disability, employee life, group life, accidental death and travel accident insurance plans and
programs) to the extent applicable generally to other peer executives of the Company and its
affiliated companies, but in no event shall such plans, practices, policies and programs provide
the Executive with benefits which are less favorable, in the aggregate, than the most favorable of
such plans, practices, policies and programs in effect for the Executive at any time during the
120-day period immediately preceding the Effective Date or, if more favorable to the Executive,
those provided generally at any time after the Effective Date to other peer executives of the
Company and its affiliated companies.

     (vi) Expenses. During the Employment Period, the Executive shall be entitled to
receive prompt reimbursement for all reasonable expenses incurred by the Executive in accordance
with the most favorable policies, practices and procedures of the Company and its affiliated
companies in effect for the Executive at any time during the 120-day period immediately preceding
the Effective Date or, if more favorable to the Executive, as in effect generally at any time
thereafter with respect to other peer executives of the Company and its affiliated companies. Any
reimbursement includable in the Executive’s gross income for federal income tax purposes shall be
paid, if at all, by the last day of the Executive’s taxable year next following the Executive’s
taxable year in which the related expense is incurred.

 

 

     (vii) Fringe Benefits. During the Employment Period, the Executive shall be entitled
to fringe benefits, including, without limitation, tax and financial planning services, payment of
club dues, and, if applicable, use of an automobile and payment of related expenses, in accordance
with the most favorable plans, practices, programs and policies of the Company and its affiliated
companies in effect for the Executive at any time during the 120-day period immediately preceding
the Effective Date or, if more favorable to the Executive, as in effect generally at any time
thereafter with respect to other peer executives of the Company and its affiliated companies.

     (viii) Office and Support Staff. During the Employment Period, the Executive shall be
entitled to an office or offices of a size and with furnishings and other appointments, and to
personal secretarial and other assistance, at least equal to the most favorable of the foregoing
provided to the Executive by the Company and its affiliated companies at any time during the
120-day period immediately preceding the Effective Date or, if more favorable to the Executive, as
provided generally at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

     (ix) Vacation. During the Employment Period, the Executive shall be entitled to paid
vacation in accordance with the most favorable plans, policies, programs and practices of the
Company and its affiliated companies as in effect for the Executive at any time during the 120-day
period immediately preceding the Effective Date or, if more favorable to the Executive, as in
effect generally at any time thereafter with respect to other peer executives of the Company and
its affiliated companies.

     5. Termination of Employment. (a) Death or Disability. The Executive’s
employment shall terminate automatically upon the Executive’s death during the Employment Period.
If the Company determines in good faith that the Disability of the Executive has occurred during
the Employment Period (pursuant to the definition of Disability set forth below), it may give to
the Executive written notice in accordance with Section 12(b) of this Agreement of its intention to
terminate the Executive’s employment. In such event, the Executive’s employment with the Company
shall terminate effective on the 30th day after receipt of such notice by the Executive (the
“Disability Effective Date”), provided that, within the 30 days after such receipt, the Executive
shall not have returned to full-time performance of the Executive’s duties. For purposes of this
Agreement, “Disability” shall mean the absence of the Executive from the Executive’s duties with
the Company on a full-time basis for 180 consecutive business days as a result of incapacity due to
mental or physical illness or injury which is determined to be total and permanent by a physician
selected by the Company or its insurers and acceptable to the Executive or the Executive’s legal
representative.

     (b) Cause. The Company may terminate the Executive’s employment during the Employment
Period for Cause. For purposes of this Agreement, “Cause” shall mean:

     (i) the willful and continued failure of the Executive to perform substantially the
Executive’s duties with the Company or one of its affiliates (other than any such failure resulting
from incapacity due to physical or mental illness), after a written demand for substantial
performance is delivered to the Executive by the Board or the Chief Executive Officer of the
Company which specifically identifies the manner in which the Board or Chief Executive Officer
believes that the Executive has not substantially performed the Executive’s duties, or

 

 

     (ii) the willful engaging by the Executive in illegal conduct which is materially and
demonstrably injurious to the Company. For purposes of this provision, no act or failure to act,
on the part of the Executive, shall be considered “willful” unless it is done, or omitted to be
done, by the Executive in bad faith or without reasonable belief that the Executive’s action or
omission was in the best interests of the Company. Any act, or failure to act, based upon
authority given pursuant to a resolution duly adopted by the Board or upon the instructions of the
Chief Executive Officer or a senior officer of the Company or based upon the advice of counsel for
the Company shall be conclusively presumed to be done, or omitted to be done, by the Executive in
good faith and in the best interests of the Company. The cessation of employment of the Executive
shall not be deemed to be for Cause unless and until there shall have been delivered to the
Executive a copy of a resolution duly adopted by the affirmative vote of not less than
three-quarters of the entire membership of the Board at a meeting of the Board called and held for
such purpose (after reasonable notice is provided to the Executive and the Executive is given an
opportunity, together with counsel, to be heard before the Board), finding that, in the good faith
opinion of the Board, the Executive is guilty of the conduct described in subparagraph (i) or (ii)
above, and specifying the particulars thereof in detail.

     (c) Good Reason. The Executive’s employment may be terminated by the Executive for
Good Reason. For purposes of this Agreement, “Good Reason” shall mean:

     (i) the assignment to the Executive of any duties inconsistent in any respect with the
Executive’s position (including status, offices, titles and reporting requirements), authority,
duties or responsibilities as contemplated by Section 4(a) of this Agreement, or any other action
by the Company which results in a diminution in such position, authority, duties or
responsibilities, excluding for this purpose an isolated, insubstantial and inadvertent action not
taken in bad faith and which is remedied by the Company promptly after receipt of notice thereof
given by the Executive;

     (ii) any failure by the Company to comply with any of the provisions of Section 4(b) of this
Agreement, other than an isolated, insubstantial and inadvertent failure not occurring in bad faith
and which is remedied by the Company promptly after receipt of notice thereof given by the
Executive;

     (iii) the Company’s requiring the Executive to be based at any office or location other than
as provided in Section 4(a)(i)(B) hereof or the Company’s requiring the Executive to travel on
Company business to a substantially greater extent than required immediately prior to the Effective
Date;

     (iv) any purported termination by the Company of the Executive’s employment otherwise than as
expressly permitted by this Agreement; or

     (v) any failure by the Company to comply with and satisfy Section 11(c) of this Agreement.
For purposes of this Section 5(c), any good faith determination of “Good Reason” made by the
Executive shall be conclusive. Anything in this Agreement to the contrary notwithstanding and
except as set forth below, a termination by the Executive for any reason during the 30-day period
immediately following the first anniversary of the Effective Date shall be deemed to be a
termination for Good Reason for all purposes of this Agreement (the “30-day Window Trigger”);
provided, however, that, in the event, a resolution is duly adopted by the affirmative vote of not
less than three-quarters of the entire membership of the Incumbent Board at the time of the
execution of the initial agreement, or of the action of the Board, providing for such Business
Combination, finding that, in the good faith

 

 

opinion of such Incumbent Board, the Company is or will be the surviving corporation following the
occurrence of a Change of Control event described in Section 2(c) hereof, the 30-day Window Trigger
shall be inapplicable.

     (d) Notice of Termination. Any termination by the Company for Cause, or by the
Executive for Good Reason, shall be communicated by Notice of Termination to the other party hereto
given in accordance with Section 12(b) of this Agreement. For purposes of this Agreement, a
“Notice of Termination” means a written notice which (i) indicates the specific termination
provision in this Agreement relied upon, (ii) to the extent applicable, sets forth in reasonable
detail the facts and circumstances claimed to provide a basis for termination of the Executive’s
employment under the provision so indicated and (iii) if the date on which the termination will
become effective is other than the date of receipt of such notice, specifies the termination date
(which date shall be not more than thirty days after the giving of such notice). The failure by
the Executive or the Company to set forth in the Notice of Termination any fact or circumstance
which contributes to a showing of Good Reason or Cause shall not waive any right of the Executive
or the Company, respectively, hereunder or preclude the Executive or the Company, respectively,
from asserting such fact or circumstance in enforcing the Executive’s or the Company’s rights
hereunder.

     (e) Date of Termination. “Date of Termination” means the date on which the Executive
incurs a separation from service with the Company within the meaning of Section 409A of the
Internal Revenue Code of 1986, as amended (the “Code”).

     6. Obligations of the Company upon Termination. (a) Good Reason; Other Than for
Cause, Death or Disability. If, during the Employment Period, the Company shall terminate the
Executive’s employment other than for Cause or Disability or the Executive shall terminate
employment for Good Reason:

     (i) the Company shall pay to the Executive in cash the aggregate of the following amounts, and
such amounts shall be paid in a lump sum in the seventh month following the Date of Termination
except that the “Accrued Obligations” (as defined below) shall be paid in a lump sum within 30 days
after the Date of Termination:

     A. the sum of (1) the Executive’s Annual Base Salary through the Date of Termination to the
extent not theretofore paid, (2) the product of (x) the higher of (I) the Annual Bonus for the full
fiscal year in which the Date of Termination occurs, determined based on actual individual and
corporate performance through the Date of Termination, and (II) the Recent Annual Bonus (provided
that this clause (II) shall not apply if a Change in Control does not occur before the payment date
for the lump sum payment described in this Section 6(a)(i)) and (y) a fraction, the numerator of
which is the number of days in the current fiscal year through the Date of Termination, and the
denominator of which is 365, to the extent not theretofore paid and (3) any accrued vacation pay,
in each case to the extent not theretofore paid (the sum of the amounts described in clauses (1),
(2), and (3) shall be hereinafter referred to as the “Accrued Obligations”); and

     B. the amount equal to the product of (1) three and (2) the sum of (x) the Executive’s Annual
Base Salary, (y) the higher of (I) the Annual Bonus for the full fiscal year in which the Date of
Termination occurs, determined based on actual individual and corporate performance through the
Date of Termination and (II) the Recent Annual Bonus and (z) the aggregate dollar value of the
annual long-term incentive awards granted to the Executive as determined in accordance with the
Company’s

 

 

policies and procedures for determining annual long-term incentive awards as in effect immediately
prior to the Effective Date based on the Executive’s Annual Base Salary and the Executive’s annual
long-term incentive award percentage in effect immediately prior to the Effective Date for the
fiscal year in which the Effective Date occurs; and

     C. an amount equal to the excess of (a) the actuarial equivalent of the benefit under the
Company’s qualified defined benefit retirement plan (the “Retirement Plan”) (utilizing actuarial
assumptions no less favorable to the Executive than those in effect under the Company’s Retirement
Plan immediately prior to the Effective Date), and the Unfunded Supplemental Benefit Plan for
Salaried Employees or its successor plan or any other excess or supplemental retirement plan in
which the Executive participates (together, the “SERP”) which the Executive would receive if the
Executive’s employment continued for three years after the Date of Termination assuming for this
purpose that all accrued benefits are fully vested, and, assuming that the Executive’s compensation
in each of the three years is that required by Section 4(b)(i) and Section 4(b)(ii), over (b) the
actuarial equivalent of the Executive’s actual benefit (paid or payable), if any, under the
Retirement Plan and the SERP as of the Date of Termination; and

     D. an amount equal to the additional Company matching contributions that would have been made
on the Executive’s behalf in the Company’s Thrift Plan for Salaried Employees or any successor plan
(the “Thrift Plan”) (assuming continued participation on the same basis as immediately prior to the
Effective Date), plus the additional amount of any benefit the Executive would have accrued under
the SERP as a result of contribution limitations in the Thrift Plan, which the Executive would
receive if the Executive’s employment continued for three years after the Date of Termination,
assuming for this purpose that the Executive’s compensation in each of the three years is that
required by Section 4(b)(i) and Section 4(b)(ii) and that the Company’s matching contributions are
determined pursuant to the applicable provisions of the Thrift Plan and the SERP, as in effect
during the 12-month period immediately prior to the Effective Date; and

     (ii) for three years after the Executive’s Date of Termination, or such longer period as may
be provided by the terms of the appropriate plan, program, practice or policy, the Company shall
continue benefits to the Executive and/or the Executive’s family at least equal to those which
would have been provided to them in accordance with the plans, programs, practices and policies
described in Section 4(b)(v) of this Agreement if the Executive’s employment had not been
terminated or, if more favorable to the Executive, as in effect generally at any time thereafter
with respect to other peer executives of the Company and its affiliated companies and their
families, subject to the payment requirements of paragraph (viii), below; provided, however, that
if the Executive becomes reemployed with another employer and is eligible to receive medical or
other welfare benefits under another employer provided plan, the medical and other welfare benefits
described herein shall be secondary to those provided under such other plan during such applicable
period of eligibility. For purposes of determining eligibility (but not the time of commencement
of benefits) of the Executive for retiree benefits pursuant to such plans, practices, programs and
policies, the Executive shall be considered to have remained employed until three years after the
Date of Termination and to have retired on the last day of such period; and

     (iii) for three years after the Executive’s Date of Termination, or such longer period as may
be provided by the terms of the appropriate plan, program, practice or policy, the Company shall
continue to provide to the Executive and/or the Executive’s family fringe benefits at least equal
to those which would have been provided to them in accordance with the plans, programs, practices
and

 

 

policies described in Section 4(b)(vii) of this Agreement if the Executive’s employment had not
been terminated or, if more favorable to the Executive, as in effect generally at any time
thereafter with respect to other peer executives of the Company and its affiliated companies and
their families, subject to the payment requirements of paragraph (viii), below; and

     (iv) upon the Date of Termination, the Executive shall have the right and option to purchase
the automobile which the Company was providing to the Executive immediately prior to the Date of
Termination in accordance with the Company’s practice for retiring employees as in effect
immediately prior to the Effective Date (provided that, to the extent such option results in a
benefit that is includable in the Executive’s gross income for federal income tax purposes and such
taxable amount exceeds the amount specified in Treas. Reg. § 1.409A-1(b)(9)(v)(D) (i.e., generally
the limit under Section 402(g) of the Code), such purchase must occur, if at all, in the seventh
month following the Date of Termination).

     (v) the Company shall, at its sole expense as incurred, provide the Executive with
outplacement services the scope and provider of which shall be selected by the Executive in his
sole discretion, provided that the aggregate cost of such services shall not exceed $50,000, and
provided that (A) such expense shall not be incurred later than the last day of the second taxable
year of the Executive following the Date of Termination, (B) any reimbursement for such expenses
shall not be paid to the Executive later than the last day of the third taxable year of the
Executive following the Date of Termination, and (C) the amount of such expenses shall not exceed
the amount of “reasonable outplacement expenses,” as determined under Treas. Reg. §
1.409A-1(b)(9)(v)(A); and

     (vi) amounts credited to the Executive’s account under the Executive Deferred Compensation
Plan shall be paid in the manner and at the time specified under that plan; and

     (vii) to the extent not theretofore paid or provided, the Company shall timely pay or provide
to the Executive any other amounts or benefits required to be paid or provided or which the
Executive is eligible to receive under any plan, program, policy or practice or contract or
agreement of the Company and its affiliated companies (such other amounts and benefits shall be
hereinafter referred to as the “Other Benefits”), subject to the payment requirements of paragraph
(viii), below; and

     (viii) to the extent that any coverage, payments, reimbursements or in-kind benefits provided
under paragraph (ii), (iii), or (vii) this Section 6(a) would be includable in the Executive’s
gross income for federal income tax purposes (such benefits, together, shall be hereinafter
referred to as “Specified Benefits”), and would otherwise be paid in the first six months following
the Date of Termination, such Specified Benefits shall instead be paid in the seventh month
following the Date of Termination, unless such Specified Benefits are:

     A. reimbursements or in-kind benefits that the Executive could otherwise deduct as business
expenses under Sections 162 or 167 of the Code (disregarding limitations based on adjusted gross
income); or

     B. reimbursements of medical expenses that meet the following requirements: (1) the expenses
are incurred and paid by the Executive (or incurred by the Executive and paid by the Company
directly to the service provider on the Executive’s behalf); (2) the expenses would be allowable as
a deduction to the Executive under Section 213 of the Code (disregarding the requirement

 

 

that the deduction under that section apply only to expenses that exceed 7.5% of adjusted gross
income); and (3) the expenses are not reimbursed from a source other than the Company.

     (b) Death. If the Executive’s employment is terminated by reason of the Executive’s
death during the Employment Period, this Agreement shall terminate without further obligations to
the Executive’s legal representatives under this Agreement, other than for payment of Accrued
Obligations and the timely payment or provision of Other Benefits. Accrued Obligations shall be
paid to the Executive’s estate or beneficiary, as applicable, in a lump sum in cash within 30 days
of the Date of Termination. With respect to the provision of Other Benefits, the term Other
Benefits as utilized in this Section 6(b) shall include, without limitation, and the Executive’s
estate and/or beneficiaries shall be entitled to receive, benefits at least equal to the most
favorable benefits provided by the Company and affiliated companies to the estates and
beneficiaries of peer executives of the Company and such affiliated companies under such plans,
programs, practices and policies relating to death benefits, if any, as in effect with respect to
other peer executives and their beneficiaries at any time during the 120-day period immediately
preceding the Effective Date or, if more favorable to the Executive’s estate and/or the Executive’s
beneficiaries, as in effect on the date of the Executive’s death with respect to other peer
executives of the Company and its affiliated companies and their beneficiaries.

     (c) Disability. If the Executive’s employment is terminated by reason of the
Executive’s Disability during the Employment Period, this Agreement shall terminate without further
obligations to the Executive under this Agreement, other than for payment of Accrued Obligations
and the timely payment or provision of Other Benefits (subject to the six-month delay as described
in subsection 6(a)(viii)). Accrued Obligations shall be paid to the Executive in a lump sum in
cash within 30 days of the Date of Termination. With respect to the provision of Other Benefits,
the term Other Benefits as utilized in this Section 6(c) shall include, and the Executive shall be
entitled after the Disability Effective Date to receive, disability and other benefits at least
equal to the most favorable of those generally provided by the Company and its affiliated companies
to disabled executives and/or their families in accordance with such plans, programs, practices and
policies relating to disability, if any, as in effect generally with respect to other peer
executives and their families at any time during the 120-day period immediately preceding the
Effective Date or, if more favorable to the Executive and/or the Executive’s family, as in effect
at any time thereafter generally with respect to other peer executives of the Company and its
affiliated companies and their families.

     (d) Cause; Other than for Good Reason. If the Executive’s employment shall be
terminated for Cause during the Employment Period, this Agreement shall terminate without further
obligations to the Executive other than the obligation to pay to the Executive (x) his Annual Base
Salary through the Date of Termination, (y) any amount of any compensation previously deferred by
the Executive under the EDCP (which shall be paid in accordance with the terms of the EDCP), and
(z) Other Benefits (subject to the six-month delay as described in subsection 6(a)(viii)), in each
case to the extent theretofore unpaid. If the Executive voluntarily terminates employment during
the Employment Period, excluding a termination for Good Reason, this Agreement shall terminate
without further obligations to the Executive under this Agreement, other than for Accrued
Obligations and the timely payment or provision of Other Benefits. In such case, all Accrued
Obligations shall be paid to the Executive in a lump sum in cash within 30 days of the Date of
Termination.

     7. Non-exclusivity of Rights. Nothing in this Agreement shall prevent or limit the
Executive’s continuing or future participation in any plan, program, policy or practice provided by
the Company or any of its affiliated companies and for which the Executive may qualify, nor,
subject to

 

 

Section 12(f), shall anything herein limit or otherwise affect such rights as the Executive may
have under any contract or agreement with the Company or any of its affiliated companies. Amounts
which are vested benefits or which the Executive is otherwise entitled to receive under any plan,
policy, practice or program of or any contract or agreement with the Company or any of its
affiliated companies at or subsequent to the Date of Termination shall be payable in accordance
with such plan, policy, practice or program or contract or agreement except as explicitly modified
by this Agreement.

     8. Full Settlement. The Company’s obligation to make the payments provided for in
this Agreement and otherwise to perform its obligations hereunder shall not be affected by any
set-off, counterclaim, recoupment, defense or other claim, right or action which the Company may
have against the Executive or others. In no event shall the Executive be obligated to seek other
employment or take any other action by way of mitigation of the amounts payable to the Executive
under any of the provisions of this Agreement and such amounts shall not be reduced whether or not
the Executive obtains other employment. The Company agrees to pay as incurred, to the full extent
permitted by law, all legal fees and expenses which the Executive may reasonably incur as a result
of any contest (regardless of the outcome thereof) by the Company, the Executive or others of the
validity or enforceability of, or liability under, any provision of this Agreement or any guarantee
of performance thereof (including as a result of any contest by the Executive about the amount of
any payment pursuant to this Agreement), plus in each case interest on any delayed payment at the
applicable Federal rate provided for in Section 7872(f)(2)(A) of the “Code”. Any reimbursement of
legal fees paid to the Executive pursuant to this Section 8 shall be paid no later than the end of
the Executive’s taxable year next following the Executive’s taxable year of the Executive in which
the related expense is incurred, and, if paid on account of a separation from service, no earlier
than the seventh month following the Executive’s separation from service.

     9. Certain Additional Payments by the Company. (a) Anything in this Agreement to
the contrary notwithstanding and except as set forth below, in the event it shall be determined
that any payment or distribution by the Company or its affiliates to or for the benefit of the
Executive (whether paid or payable or distributed or distributable pursuant to the terms of this
Agreement or otherwise, but determined without regard to any additional payments required under
this Section 9) (a “Payment”) would be subject to the excise tax imposed by Section 4999 of the
Code or any interest or penalties are incurred by the Executive with respect to such excise tax
(such excise tax, together with any such interest and penalties, are hereinafter collectively
referred to as the “Excise Tax”), then the Executive shall be entitled to receive an additional
payment (a “Gross-Up Payment”) in an amount such that after payment by the Executive of all taxes
(including any interest or penalties imposed with respect to such taxes), including, without
limitation, any income taxes (and any interest and penalties imposed with respect thereto) and
Excise Tax imposed upon the Gross-Up Payment, the Executive retains an amount of the Gross-Up
Payment equal to the Excise Tax imposed upon the Payments. Notwithstanding the foregoing
provisions of this Section 9(a), if it shall be determined that the Executive is entitled to a
Gross-Up Payment, but that the Executive, after taking into account the Payments and the Gross-Up
Payment, would not receive a net after-tax benefit of at least $50,000 (taking into account both
income taxes and any Excise Tax) as compared to the net after-tax proceeds to the Executive
resulting from an elimination of the Gross-Up Payment and a reduction of the Payment, in the
aggregate, to an amount (the “Reduced Amount”) such that the receipt of the Payments would not give
rise to any Excise Tax, then no Gross-Up Payment shall be made to the Executive and the Payments,
in the aggregate, shall be reduced to the Reduced Amount. The Gross-Up Payment, if any, will be
paid no later than the end of the Executive’s taxable year next following the Executive’s taxable
year in which the Excise Tax is paid and no earlier than the seventh month following the Date of
Termination.

 

 

     (b) Subject to the provisions of Section 9(c), all determinations required to be made under
this Section 9, including whether and when a Gross-Up Payment is required and the amount of such
Gross-Up Payment and the assumptions to be utilized in arriving at such determination, shall be
made by Deloitte & Touche LLP or such other certified public accounting firm as may be designated
by the Executive (the “Accounting Firm”) which shall provide detailed supporting calculations both
to the Company and the Executive within 15 business days of the receipt of notice from the
Executive that there has been a Payment, or such earlier time as is requested by the Company. In
the event that the Accounting Firm is serving as accountant or auditor for the individual, entity
or group effecting the Change of Control, the Executive shall appoint another nationally recognized
accounting firm to make the determinations required hereunder (which accounting firm shall then be
referred to as the Accounting Firm hereunder). All fees and expenses of the Accounting Firm shall
be borne solely by the Company. Any Gross-Up Payment, as determined pursuant to this Section 9,
shall be paid by the Company to the Executive within five days of the receipt of the Accounting
Firm’s determination. Any determination by the Accounting Firm shall be binding upon the Company
and the Executive. As a result of the uncertainty in the application of Section 4999 of the Code
at the time of the initial determination by the Accounting Firm hereunder, it is possible that
Gross-Up Payments which will not have been made by the Company should have been made
(“Underpayment”), consistent with the calculations required to be made hereunder. In the event
that the Company exhausts its remedies pursuant to Section 9(c) and the Executive thereafter is
required to make a payment of any Excise Tax, the Accounting Firm shall determine the amount of the
Underpayment that has occurred and any such Underpayment shall be promptly paid by the Company to
or for the benefit of the Executive.

     (c) The Executive shall notify the Company in writing of any claim by the Internal Revenue
Service that, if successful, would require the payment by the Company of the Gross-Up Payment.
Such notification shall be given as soon as practicable but no later than ten business days after
the Executive is informed in writing of such claim and shall apprise the Company of the nature of
such claim and the date on which such claim is requested to be paid. The Executive shall not pay
such claim prior to the expiration of the 30-day period following the date on which it gives such
notice to the Company (or such shorter period ending on the date that any payment of taxes with
respect to such claim is due). If the Company notifies the Executive in writing prior to the
expiration of such period that it desires to contest such claim, the Executive shall:

     (i) give the Company any information reasonably requested by the Company relating to such
claim,

     (ii) take such action in connection with contesting such claim as the Company shall reasonably
request in writing from time to time, including, without limitation, accepting legal representation
with respect to such claim by an attorney reasonably selected by the Company,

     (iii) cooperate with the Company in good faith in order effectively to contest such claim, and

     (iv) permit the Company to participate in any proceedings relating to such claim;
provided, however, that the Company shall bear and pay directly all costs and expenses (including
additional interest and penalties) incurred in connection with such contest and shall indemnify and
hold the Executive harmless, on an after-tax basis, for any Excise Tax or income tax (including
interest and penalties with respect thereto) imposed as a result of such representation and payment
of costs and

 

 

expenses. Without limitation on the foregoing provisions of this Section 9(c), the Company shall
control all proceedings taken in connection with such contest and, at its sole option, may pursue
or forgo any and all administrative appeals, proceedings, hearings and conferences with the taxing
authority in respect of such claim and may, at its sole option, either direct the Executive to pay
the tax claimed and sue for a refund or contest the claim in any permissible manner, and the
Executive agrees to prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the Company shall
determine; provided, however, that if the Company directs the Executive to pay such claim and sue
for a refund, the Company shall advance the amount of such payment to the Executive, on an
interest-free basis and shall indemnify and hold the Executive harmless, on an after-tax basis,
from any Excise Tax or income tax (including interest or penalties with respect thereto) imposed
with respect to such advance or with respect to any imputed income with respect to such advance;
and further provided that any extension of the statute of limitations relating to payment of taxes
for the taxable year of the Executive with respect to which such contested amount is claimed to be
due is limited solely to such contested amount. Furthermore, the Company’s control of the contest
shall be limited to issues with respect to which a Gross-Up Payment would be payable hereunder and
the Executive shall be entitled to settle or contest, as the case may be, any other issue raised by
the Internal Revenue Service or any other taxing authority.

     (d) If, after the receipt by the Executive of an amount advanced by the Company pursuant to
Section 9(c), the Executive becomes entitled to receive any refund with respect to such claim, the
Executive shall (subject to the Company’s complying with the requirements of Section 9(c)) promptly
pay to the Company the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Executive of an amount advanced by
the Company pursuant to Section 9(c), a determination is made that the Executive shall not be
entitled to any refund with respect to such claim and the Company does not notify the Executive in
writing of its intent to contest such denial of refund prior to the expiration of 30 days after
such determination, then such advance shall be forgiven and shall not be required to be repaid and
the amount of such advance shall offset, to the extent thereof, the amount of Gross-Up Payment
required to be paid.

     10. Confidential Information. The Executive shall hold in a fiduciary capacity for
the benefit of the Company all secret or confidential information, knowledge or data relating to
the Company or any of its affiliated companies, and their respective businesses, which shall have
been obtained by the Executive during the Executive’s employment by the Company or any of its
affiliated companies and which shall not be or become public knowledge (other than by acts by the
Executive or representatives of the Executive in violation of this Agreement). After termination
of the Executive’s employment with the Company, the Executive shall not, without the prior written
consent of the Company or as may otherwise be required by law or legal process, communicate or
divulge any such information, knowledge or data to anyone other than the Company and those
designated by it. In no event shall an asserted violation of the provisions of this Section 10
constitute a basis for deferring or withholding any amounts otherwise payable to the Executive
under this Agreement.

     11. Successors. (a) This Agreement is personal to the Executive and without the
prior written consent of the Company shall not be assignable by the Executive otherwise than by
will or the laws of descent and distribution. This Agreement shall inure to the benefit of and be
enforceable by the Executive’s legal representatives.

     (b) This Agreement shall inure to the benefit of and be binding upon the Company and its
successors and assigns.

 

 

     (c) The Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation or otherwise) to all or substantially all of the business and/or assets of the
Company to assume expressly and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession had taken place. As
used in this Agreement, “Company” shall mean the Company as hereinbefore defined and any successor
to its business and/or assets as aforesaid which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

     12. Miscellaneous. (a) This Agreement shall be governed by and construed in
accordance with the laws of the State of New Jersey without reference to principles of conflict of
laws. The captions of this Agreement are not part of the provisions hereof and shall have no force
or effect. This Agreement may not be amended or modified otherwise than by a written agreement
executed by the parties hereto or their respective successors and legal representatives.

     (b) All notices and other communications hereunder shall be in writing and shall be given by
hand delivery to the other party or by registered or certified mail, return receipt requested,
postage prepaid, addressed as follows:

If to the Executive:

     The most recent address on file at the Company

If to the Company:

     Vulcan Materials Company

     P.O. Box 385014

     Birmingham, Alabama 35238-5014

     Attention: General Counsel

or to such other address as either party shall have furnished to the other in writing in accordance
herewith. Notice and communications shall be effective when actually received by the addressee.

     (c) The invalidity or unenforceability of any provision of this Agreement shall not affect the
validity or enforceability of any other provision of this Agreement.

     (d) The Company may withhold from any amounts payable under this Agreement such Federal,
state, local or foreign taxes as shall be required to be withheld pursuant to any applicable law or
regulation.

     (e) The Executive’s or the Company’s failure to insist upon strict compliance with any
provision of this Agreement or the failure to assert any right the Executive or the Company may
have hereunder, including, without limitation, the right of the Executive to terminate employment
for Good Reason pursuant to Section 5(c)(i) (v) of this Agreement, shall not be deemed to be a
waiver of such provision or right or any other provision or right of this Agreement.

     (f) The Executive and the Company acknowledge that, except as may otherwise be provided under
any other written agreement between the Executive and the Company, the employment

 

 

of the Executive by the Company is “at will” and, subject to Section 1(a) hereof, prior to the
Effective Date, the Executive’s employment and/or this Agreement may be terminated by either the
Executive or the Company at any time prior to the Effective Date, in which case the Executive shall
have no further rights under this Agreement; provided, that this Agreement may not be terminated by
the Company if it is reasonably demonstrated by the Executive that such termination (i) was at the
request of a third party who has taken steps reasonably calculated to effect a Change of Control or
(ii) otherwise arose in connection with or anticipation of a Change of Control. From and after the
Effective Date this Agreement shall supersede any other agreement between the parties with respect
to the subject matter hereof.

     IN WITNESS WHEREOF, the Executive has hereunto set the Executive’s hand and, pursuant to the
authorization from its Board of Directors, the Company has caused these presents to be executed in
its name on its behalf, all as of the day and year first above written.

	 	 	 	 	 
	 	VULCAN MATERIALS COMPANY

 	 
	 	By:  	 	 
	 	 	Name:  	Orin R. Smith 	 
	 	 	Title:  	Chairman of the Compensation CommitteeEX-10.1

Exhibit 10.1

EXECUTIVE AGREEMENT

Rolando de Aguiar

     THIS EXECUTIVE AGREEMENT (“Agreement”) is effective as of September 26, 2008 by and between
Tween Brands, Inc., a Delaware corporation (the “Company”) and Rolando de Aguiar (the “Executive”)
(hereinafter collectively referred to as “the parties”).

     WHEREAS, The Executive will serve as a key executive of the Company and possesses an intimate
knowledge of the business and affairs of the Company and its policies, procedures, methods and
personnel; and

     WHEREAS, the Company has determined that it is essential and in its best interest to retain
the services of key management personnel and to ensure their continued dedication and efforts; and

     WHEREAS, the Compensation Committee of the Board of Directors of the Company (the “Board”) has
determined that it is in the best interest of the Company to secure the services and employment of
the Executive and the Executive is willing to render such services on the terms and conditions set
forth herein.

     NOW, THEREFORE, in consideration of the foregoing and the respective agreements of the parties
hereby agree as follows:

1. EMPLOYMENT

     (a) AT WILL. Executive and the Company agree that Executive’s employment with the
Company is and at all times shall be “at will,” which means that subject to the terms of this
Agreement either the Company or the Executive may terminate Executive’s employment at any time, for
any reason or for no reason.

     (b) POSITION. The Executive shall be employed as the Executive Vice President Chief
Financial Officer, or such other position of reasonably comparable or greater status and
responsibilities as may be determined by the Board. The Executive shall perform the duties,
undertake the responsibilities and exercise the authority customarily performed, undertaken and
exercised by persons employed in a similar executive capacity.

     (c) OBLIGATIONS. The Executive agrees (1) to devote the Executive’s best efforts and
full business time and attention to the business and affairs of the Company; (2) to exercise the
highest degree of loyalty and care with respect to the affairs of the Company; and (3) not to
commit any willful or intentional act with an objective to harm the Company’s business or
reputation. The foregoing, however, shall not preclude the Executive from serving on corporate,
civic or charitable boards or committees or managing personal investments, so long as such
activities do not interfere with the performance of the Executive’s responsibilities hereunder.

     (d) BASE SALARY. Effective as of August 21, 2008, the Company agrees to pay or cause
to be paid to the Executive a minimum annual Base Salary of $475,000 (hereinafter

Page 1 of 12

 

referred to as the “Base Salary”). This Base Salary will be subject to annual review and may be
increased from time to time by the Board considering factors such as the Executive’s
responsibilities, compensation of executives in other companies, performance of the Executive and
other pertinent factors. Such Base Salary shall be payable in accordance with the Company’s
customary practices applicable to similarly situated executives of the Company.

     (e) EQUITY COMPENSATION. The Company shall grant to the Executive rights to receive
shares of the Company’s common stock and options to acquire shares of the Company’s common stock as
the Board or Compensation Committee of the Board determines.

     (f) EMPLOYEE BENEFITS. The Executive shall be entitled to participate in
tax-qualified and nonqualified deferred compensation and retirement plans, group term life
insurance plans, short-term and long-term disability plans, employee benefit plans, practices, and
programs maintained by the Company and made available to similarly situated executives generally,
and as may be in effect from time to time.

     (g) BONUS AND LONG-TERM INCENTIVES. The Executive shall be entitled to participate
in such Company bonus and long-term incentive compensation programs which include similarly
situated executives of the Company as may exist from time to time (the “Incentive Plans”). The
Executive’s participation in such Incentive Plans, practices and programs shall be on the same
general basis and terms as are applicable to similarly situated executives of the Company, although
bonuses, target levels and criteria may differ among such executives as determined by the Board or
Compensation Committee of the Board.

     (h) OFFICE AND FACILITIES. The Executive shall be provided with appropriate offices
and with such secretarial and other support facilities as are commensurate with the Executive’s
status with the Company and adequate for the performance of the Executive’s duties hereunder.

     (i) EXPENSES. Subject to applicable Company policies, the Executive shall be entitled
to receive prompt reimbursement of all expenses reasonably incurred by the Executive in connection
with the performance of the Executive’s duties hereunder or for promoting, pursuing or otherwise
furthering the business or interests of the Company including, without limitation, travel,
automobile, and meal and entertainment expenses.

     (j) VACATION. The Executive shall be entitled to four weeks of annual vacation or,
if greater, in accordance with the policies as periodically established by the Board for similarly
situated executives of the Company.

Page 2 of 12

 

2. DEFINITIONS, TERMS AND CONDITIONS. The Executive’s employment hereunder is subject to
the following terms and conditions:

(a) CAUSE. “Cause” means that the Executive:

     (1) was grossly negligent in the performance of Executive’s duties with the
Company (other than a failure resulting from the Executive’s incapacity due to
physical or mental illness) causing material harm to the Company; or

     (2) has pled “guilty” or “no contest” to or has been convicted of an act which
is defined as a felony under federal or state law; or

     (3) engaged in intentional misconduct or fraud which caused, or could
reasonably be expected to cause, material harm to the Company’s business or its
reputation; or

     (4) committed a material breach of this Agreement (including a violation of the
noncompete and nondisclosure provisions) which is materially and demonstrably
injurious to the Company.

(b) CHANGE IN CONTROL. “Change in Control” means the occurrence of any of the
following:

     (1) Any “Person” (as such term is used in Sections 13(d) and 14(d) of the
Securities Exchange Act of 1934, as amended (the “Exchange Act”)) is or becomes the
“Beneficial Owner” (as defined in Rule 13d-3 under the Exchange Act), directly or
indirectly, of securities of the Corporation representing twenty-five percent (25%)
or more of the combined voting power of the Corporation’s then outstanding
securities (a “25% Shareholder”); provided however, that the term 25% Shareholder
shall not include any Person if such Person would not otherwise be a 25% Shareholder
but for a reduction in the number of outstanding voting shares resulting from a
stock repurchase program or other similar plan of the Corporation or from a
self-tender offer of the Corporation, which plan or tender offer commenced on or
after the date hereof; provided, however, that the term “25% Shareholder” shall
include such Person from and after the first date upon which (A) such Person, since
the date of the commencement of such plan or tender offer, shall have acquired
Beneficial Ownership of, in the aggregate, a number of voting shares of the
Corporation equal to one percent (1%) or more of the voting shares of the
Corporation then outstanding, and (B) such Person, together with all affiliates and
associates of such Person, shall Beneficially Own twenty-five percent (25%) or more
of the voting shares of the Corporation then outstanding. In calculating the
percentage of the outstanding voting shares that are Beneficially Owned by a Person
for purposes of this subsection (b)(1), voting shares that are Beneficially Owned by
such Person shall be deemed outstanding, and voting shares that are not Beneficially
Owned by such Person and that are subject to issuance upon the exercise or
conversion of outstanding conversion rights, exchange rights, rights, warrants or
options shall not be deemed

Page 3 of 12

 

outstanding. Notwithstanding the foregoing, if the Board of Directors of the
Corporation determines in good faith that a Person that would otherwise be a 25%
Shareholder pursuant to the foregoing provisions of this subsection has become such
inadvertently, and such Person (a) promptly notifies the Board of Directors of such
status and (b) as promptly as practicable thereafter, either divests of a sufficient
number of voting shares so that such Person would no longer be a 25% Shareholder, or
causes any other circumstance, such as the existence of an agreement respecting
voting shares, to be eliminated such that such Person would no longer be a 25%
Shareholder as defined pursuant to this subsection (b)(1), then such Person shall
not be deemed to be a 25% Shareholder for any purposes of this Agreement. Any
determination made by the Board of Directors of the Corporation as to whether any
Person is or is not a 25% Shareholder shall be conclusive and binding; or

     (2) A change in composition of the Board of Directors of the Corporation
occurring any time during a consecutive two-year period as a result of which fewer
than a majority of the Board of Directors are Continuing Directors (for purposes of
this section, the term “Continuing Director” means a director who was either (A)
first elected or appointed as a Director prior to the date of this Agreement; or (B)
subsequently elected or appointed as a director if such director was nominated or
appointed by at least a majority of the then Continuing Directors); or

     (3) Any of the following occurs:

     (A) a merger or consolidation of the Corporation, other than a merger
or consolidation in which the voting securities of the Corporation
immediately prior to the merger or consolidation continue to represent
(either by remaining outstanding or being converted into securities of the
surviving entity) sixty percent (60%) or more of the combined voting power
of the Corporation or surviving entity immediately after the merger or
consolidation with another entity;

     (B) a sale, exchange, or other disposition (in a single transaction or
a series of related transactions) of all or substantially all of the assets
of the Corporation which shall include, without limitation, the sale of
assets aggregating more than fifty percent (50%) of the assets of the
Corporation on a consolidated basis;

     (C) a liquidation or dissolution of the Corporation;

     (D) a reorganization, reverse stock split, or recapitalization of the
Corporation which would result in any of the foregoing; or

     (E) a transaction or series of related transactions having, directly or
indirectly, the same effect as any of the foregoing.

Page 4 of 12

 

     (c) NOTICE OF TERMINATION. “Notice of Termination” means a written notice indicating
the specific termination provision in this Agreement relied upon and, to the extent applicable,
setting forth in reasonable detail the facts and circumstances claimed to provide a basis for
termination of the employment under the provision so indicated. Except for a termination for
Cause, any termination of employment by the Company or by the Executive shall be communicated by a
Notice of Termination to the other party thirty (30) days prior to the Termination Date. However,
the Company may elect to pay the Executive thirty (30) days of Base Salary in lieu of thirty (30)
days written notice. If the Company notifies the Executive that it will pay the Executive in lieu
of thirty (30) days written notice, the Company may deny the Executive further access to the
Company’s offices subject to the Executive’s right to recover any personal effects at an agreed
upon time. For purposes of this Agreement, no such purported termination of employment shall be
effective without a Notice of Termination.

     (d) PRO-RATED BONUS AMOUNT. “Pro-Rated Bonus Amount” means any accrued but unpaid
bonus for a completed bonus period, plus a pro-rated portion of the Executive’s semi-annual bonus
calculated as of the Termination Date. The portion of the semi-annual bonus payment shall be the
amount of semi-annual bonus payable to the Executive with respect to the bonus period in which the
Termination Date occurs, based on the actual financial performance of the Company for such bonus
period, pro-rated by multiplying such amount by a fraction, the numerator of which is the number of
days during the bonus period which occur prior to the Termination Date, and the denominator of
which is one hundred eighty-two and one-half (182-1/2).

     (e) TERMINATION DATE. “Termination Date” means the date specified in the Notice of
Termination.

3. TERMINATION OF EMPLOYMENT; COMPENSATION UPON TERMINATION

     (a) TERMINATION BY COMPANY WITH CAUSE, OR VOLUNTARY TERMINATION BY EXECUTIVE. The
Company shall be entitled to immediately terminate the Executive’s employment for Cause after
giving a Notice of Termination. Such Notice of Termination shall state in detail the particular
act or acts or failure or failure to act that constitute the grounds on which the proposed
termination for Cause is based. The Executive may voluntarily terminate employment for any reason
after giving a Notice of Termination. If the Executive’s employment is terminated by the Company
for Cause, or if the Executive voluntarily terminates employment, subject to the execution by the
Executive and the Company of a mutual release in favor of each of the Parties, the Company’s sole
obligation hereunder shall be to pay or reimburse the Executive (or facilitate a tax qualified
rollover of) the following amounts:

          (1) the Executive’s accrued Base Salary and accrued vacation not paid as of the Termination
Date;

          (2) the Executive’s vested benefits as of the Termination Date pursuant to the Company’s
benefit, retirement, incentive and other plans; and

Page 5 of 12

 

          (3) any and all monies advanced to or expenses incurred by the Executive pursuant to Section 8
through the Termination Date.

     (b) TERMINATION BY COMPANY WITHOUT CAUSE OR UPON A CHANGE IN CONTROL. The Company
may terminate the Executive without Cause after giving a Notice of Termination. If the Executive’s
employment is terminated by the Company (i) without Cause or (ii) at any time six (6) months prior
to a Change in Control if such termination was in contemplation of such Change in Control and was
done to avoid the effects of this Agreement or within twelve (12) months after a Change in Control
(a “Change in Control Termination”), the Company’s sole obligation hereunder shall be to pay,
maintain or reimburse the Executive (or facilitate a tax qualified rollover of) the following
items, which payments shall occur upon the execution by the Executive and the Company of a mutual
release in favor of each of the other:

          (1) the Executive’s accrued Base Salary and accrued vacation not paid as of the Termination
Date;

          (2) the Executive’s Pro-Rated Bonus Amount;

          (3) the Executive’s vested benefits as of the Termination Date pursuant to the Company’s
benefit, retirement, incentive and other plans;

          (4) the Company shall continue to pay the Executive one hundred percent (100%) of the Base
Salary for twelve (12) months following the Termination Date if Executive’s employment is
terminated by the Company without Cause, or for twenty-four (24) months following the Termination
Date if a Change in Control Termination occurs, minus the deductions required by law and subject to
a deduction of any salary or compensation that Executive earns from other employment or
self-employment during the time period in question, regardless of when such amount is payable. The
Executive agrees to immediately inform the Company if Executive accepts employment or begins
self-employment during the period of salary payments so that deductions can be made. The continued
payment of the Base Salary hereunder shall be terminated if Executive is found to have violated any
of the covenants set forth in Section 4 herein;

          (5) any and all monies advanced to the Company by the Executive or expenses incurred by the
Executive pursuant to Section 1(i) through the Termination Date;

          (6) the Company shall maintain in full force and effect for the continued benefit of the
Executive, for a twelve (12) month period after the Termination Date if Executive’s employment is
terminated by the Company without Cause, or for twenty-four (24) months following the Termination
Date if a Change in Control Termination occurs, all medical coverage, programs or arrangements in
which the Executive was participating immediately prior to the Termination Date, provided that
Executive’s continued participation is possible under the general terms and provisions of such
medical plans and programs; provided further, however, that the Company’s obligation to provide
such benefits shall cease upon the earlier of Executive becoming employed or self-employed or the
expiration of Executive’s rights to continue such medical benefits under COBRA; and

Page 6 of 12

 

          (7) expenses for outplacement services up to a maximum amount of ten thousand dollars
($10,000).

     The Company and Executive agree that, in the case of a Change in Control Termination, the Base
Salary continuation shall be paid to Executive as follows:

          (i) The Company would make bi-weekly payments to Executive beginning on the first pay period
following the date the Termination Date in an amount such that the total of such bi-weekly payments
over twenty-four (24) months would total $460,000 (“Stream One Bi-Weekly Payments”). Subject to
3(b)(4) above, the Stream One Bi-Weekly Payments would continue for a period of twenty-four (24)
months;

          (ii) Beginning with the first pay period following six months after the Termination Date, the
Company would make bi-weekly payments to Executive in an amount such that the total of such
bi-weekly payments over twelve (12) months would total the difference between your current Base
Salary for twenty-four months and $460,000 (if any) (“Stream Two Bi-Weekly Payments”). Subject to
3(b)(4) above, the Stream Two Bi-Weekly Payments would continue for a period of twelve (12) months;
and

          (iii) The Stream One Bi-Weekly Payments and the Stream Two Bi-Weekly Payments would be subject
to the deductions outlined Paragraph 3(b)(4) of the Agreement.

     (c) SECTION 409A COMPLIANCE. The Executive and the Company desire to comply with
Section 409A of the Internal Revenue Code of 1986, as amended (the “Code”), in accordance with the
transition rules applicable under IRS Notice 2007-86 and Final Regulations issued under Section
409A of the Code. Therefore, notwithstanding any provision of this Agreement to the contrary, if
the Company determines that Executive is a “specified employee” as defined in Section 409A of the
Code or any guidance promulgated thereunder (“Code Section 409A”), Executive shall not be entitled
to any payments under Section 3(b) of this Agreement after the Termination Date that otherwise
would cause Executive to incur any additional tax or interest under Code Section 409A, until the
earlier of (i) the date which is six months after the Termination Date, or (ii) the date of
Executive’s death. If any provision of this Agreement (or of any award of compensation, including
equity compensation or benefits) would cause Executive to incur any additional tax or interest
under Code Section 409A, the Company shall, after consulting with Executive and receiving
Executive’s approval (which shall not be unreasonably withheld), reform such provision in such a
manner as shall not cause Executive to incur any such tax or interest.

4. EXECUTIVE COVENANTS.

     (a) UNAUTHORIZED DISCLOSURE, NONDISPARAGEMENT. The Executive shall not, during the
term of this Agreement and thereafter, make any disparaging comments which may be harmful to the
Company’s reputation or any Unauthorized Disclosure. For purposes of this Agreement, “Unauthorized
Disclosure” shall mean disclosure by the Executive without the prior written consent of the Board
to any person other than a person to whom

Page 7 of 12

 

disclosure is reasonably necessary or appropriate in connection with the performance by the
Executive of duties as an executive of the Company or as may be legally required, of any
information relating to the business or prospects of the Company (including, but not limited to,
any confidential information with respect to any of the Company’s customers, products, methods of
distribution, strategies, business and marketing plans and business policies and practices);
provided, however, that such term shall not include the use or disclosure by the Executive, without
consent, of any information known generally to the public (other than as a result of disclosure by
the Executive in violation of this Section 4(a)). This confidentiality covenant has no temporal,
geographical or territorial restriction.

     (b) NON-COMPETITION. During the Non-Competition Period defined below, the Executive
shall not, directly or indirectly, without the prior written consent of the Company, own, manage,
operate, join, control, be employed by, consult with or participate in the ownership, management,
operation or control of, or be connected with (as a stockholder, partner, or otherwise), any
business, individual, partner, firm, corporation, or other entity that competes or plans to
compete, directly or indirectly, with the Company, its products, or any division, subsidiary or
affiliate of the Company; provided, however, that the “beneficial ownership” by the Executive after
termination of employment with the Company, either individually or as a member of a “group,” as
such terms are used in Rule 13d of the General Rules and Regulations under the Securities Exchange
Act of 1934, as amended,(the “Exchange Act”), of not more than two percent (2%) of the voting stock
of any publicly held corporation shall not be a violation of Section 12 of this Agreement.

     The “Non-Competition Period” means the period the Executive is employed by the Company plus
one (1) year from the Termination Date.

     (c) NON-SOLICITATION. During the No-Raid Period defined below, the Executive shall
not, either directly or indirectly, alone or in conjunction with another party, attempt to recruit
or hire, interfere with or harm, or attempt to interfere with or harm, the relationship of the
Company, its subsidiaries and/or affiliates, with any person who at any time was an employee,
customer or supplier of the Company, its subsidiaries and/or affiliates or otherwise had a business
relationship with the Company, its subsidiaries and/or affiliates.

     The “No-Raid Period” means the period the Executive is employed by the Company plus one (1)
year from the Termination Date.

     (d) DELIVERY OF DOCUMENTS UPON TERMINATION. The Executive shall deliver to the
Company or its designee at the termination of the Executive’s employment all correspondence,
memoranda, notes, records, drawings, sketches, plans, customer lists, product compositions, and
other documents and all copies thereof, made, composed or received by the Executive, solely or
jointly with others, that are in the Executive’s possession, custody, or control at termination and
that are related in any manner to the past, present, or anticipated business of the Company, its
subsidiaries and/or affiliates. In this regard, the Executive hereby grants and conveys to the
Company all right, title and interest in and to, including without limitation, the right to
possess, print, copy, and sell or otherwise dispose of, any reports, records, papers, summaries,
photographs, drawings or other documents, and writings, and copies,

Page 8 of 12

 

abstracts or summaries thereof, that may be prepared by the Executive or under the Executive’s
direction or that may come into the Executive’s possession in any way during the term of the
Executive’s employment, with the Company that relate in any manner to the past, present or
anticipated business of the Company.

     (e) INTELLECTUAL PROPERTY. The Executive shall hold in trust for the benefit of the
Company, and shall disclose promptly and fully to the Company in writing, and hereby assigns, and
binds the Executive’s heirs, executors, and administrators to assign, to the Company any and all
inventions, discoveries, ideas, concepts, improvements, copyrightable works, and other developments
(the “Developments”) conceived, made, discovered or developed by the Executive, solely or jointly
with others, during the term of the Executive’s employment by the Company, whether during or
outside of usual working hours and whether on the Company’s premises or not, that relate in any
manner to the past, present or anticipated business of the Company, its subsidiaries and/or
affiliates. All works of authorship created by the Executive, solely or jointly with others, shall
be considered works made for hire under the Copyright Act of 1976, as amended, and shall be owned
entirely by the Company. Any and all such Developments shall be the sole and exclusive property of
the Company, whether patentable, copyrightable, or neither, and the Executive shall assist and
fully cooperate in every way, at the Company’s expense, in securing, maintaining, and enforcing,
for the benefit of the Company or its designee, patents, copyrights or other types of proprietary
or intellectual property protection for such Developments in any and all countries. Within one (1)
year following the end of the term of this Agreement and without limiting the generality of the
foregoing, any Development of the Executive relating to any subject matter on which the Executive
worked or was informed during the Executive’s employment by the Company shall be conclusively
presumed to have been conceived and made prior to the termination of the Executive’s employment
(unless the Executive clearly proves that such Development was conceived and made following the
termination of the Executive’s employment), and shall accordingly belong and be assigned to the
Company and shall be subject to this Agreement.

     (f) REMEDIES. The Executive agrees that any breach of the terms of this Section 4
would result in irreparable injury and damage to the Company for which the Company would have no
adequate remedy at law; the Executive therefore also agrees that in the event of said breach or any
threat of breach, the Company shall be entitled to an immediate injunction and restraining order to
prevent such breach and/or threatened breach and/or continued breach by the Executive and/or any
and all persons and/or entities acting for and/or with the Executive, without having to prove
damages, and to all costs and expenses, including reasonable attorneys’ fees and costs, in addition
to any other remedies to which the Company may be entitled under this Agreement, at law or in
equity. The terms of this paragraph shall not prevent the Company from pursuing any other
available remedies for any breach or threatened breach hereof, including but not limited to the
recovery of damages from the Executive. The Executive and the Company further agree that the
provisions of the covenants not to compete and solicit are reasonable and that the Company would
not have entered into this Agreement but for the inclusion of such covenants herein. Should a
court determine, however, that any provision of the covenants is unreasonable, either in period of
time, geographical area, or otherwise, the parties hereto agree that the covenant should be
interpreted and enforced to the maximum extent which such court or arbitrator deems reasonable.

Page 9 of 12

 

          The provisions of this Section 4 shall survive any termination of this Agreement, and the
existence of any claim or cause of action by the Executive against the Company, whether predicated
on this Agreement or otherwise, shall not constitute a defense to the enforcement by the Company of
the covenants and agreements of this Section 4; provided, however, that this paragraph shall not,
in and of itself, preclude the Executive from defending against the enforceability of the covenants
and agreements of this Section 4.

5. SUCCESSORS AND ASSIGNS.

     (a) This Agreement shall be binding upon and shall inure to the benefit of the Company, its
successors and assigns and the Company shall require any successor or assign to expressly assume
and agree to perform this Agreement in the same manner and to the same extent that the Company
would be required to perform it if no such succession or assignment had taken place. The term “the
Company” as used herein shall include any such successors and assigns to the Company’s business
and/or assets. The term “successors and assigns” as used herein shall mean a corporation or other
entity acquiring or otherwise succeeding to, directly or indirectly, all or substantially all the
assets and business of the Company (including this Agreement) whether by operation of law or
otherwise.

     (b) Neither this Agreement nor any right or interest hereunder shall be assignable or
transferable by the Executive, the Executive’s beneficiaries or legal representatives, except by
will or by the laws of descent and distribution. This Agreement shall inure to the benefit of and
be enforceable by the Executive’s legal personal representative.

6. ARBITRATION. Except with respect to the remedies set forth in Section 4, as the method
for resolving any dispute arising out of this Agreement, the Executive, in the Executive’s sole
discretion, may select binding arbitration in accordance with this Section. Except as provided
otherwise in this Section, arbitration pursuant to this Section shall be governed by the Commercial
Arbitration Rules of the American Arbitration Association. If the Executive wishes to arbitrate an
issue under this Section 6, the Executive shall deliver written notice to the Company, including a
description of the issue to be arbitrated. Within fifteen (15) days after the Executive demands
arbitration, the Company and the Executive shall each appoint an arbitrator. Within fifteen (15)
additional days, these two arbitrators shall appoint the third arbitrator by mutual agreement; if
they fail to agree within this fifteen (15) day period, then the third arbitrator shall be selected
promptly pursuant to the rules of the American Arbitration Association for Commercial Arbitration.
The arbitration panel shall hold a hearing in Columbus, Ohio, within ninety (90) days after the
appointment of the third arbitrator. The fees and expenses of the arbitrators, and any American
Arbitration Association fees, shall be paid by the Company. Both the Company and the Executive may
be represented by counsel and may present testimony and other evidence at the hearing. Within
ninety (90) days after commencement of the hearing, the arbitration panel will issue a written
decision; the majority vote of two of the three arbitrators shall control. The majority decision
of the arbitrators shall be binding on the parties, and the parties may not pursue other available
legal remedies if the parties are not satisfied with the majority decision of the arbitrator. The
Executive shall be entitled to seek specific performance of the Executive’s rights under this
Agreement during the pendency of any dispute or controversy arising under or in connection with
this Agreement.

Page 10 of 12

 

7. NOTICE. For the purposes of this Agreement, notices and all other communications
provided for in the Agreement (including the Notice of Termination) shall be in writing and shall
be deemed to have been duly given when personally delivered or sent by registered or certified
mail, return receipt requested, postage prepaid, or upon receipt if overnight delivery service or
facsimile is used, addressed as follows:

     TO THE EXECUTIVE:

Rolando de Aguiar

                                        

                                        

     TO THE COMPANY:

Tween Brands, Inc.

8323 Walton Parkway

New Albany, Ohio 43054

Attn: Senior Vice President — Human Resources

8. SETTLEMENT OF CLAIMS. Except as otherwise provided, the Company’s obligation to make
the payments provided for in this Agreement and otherwise to perform its obligations hereunder
shall not be affected by any circumstances, including, without limitation, any set-off,
counterclaim, recoupment, defense or other right which the Company may have against the Executive
or others.

9. MISCELLANEOUS. No provision of this Agreement may be modified, waived or discharged
unless such waiver, modification or discharge is agreed to in writing and signed by the Executive
and the Company. No waiver by either party hereto at any time of any breach by the other party
hereto of, or compliance with, any condition or provision of this Agreement to be performed by such
other party shall be deemed a waiver of similar or dissimilar provisions or conditions at the same
or at any prior or subsequent time. No agreement or representations, oral or otherwise, express or
implied, with respect to the subject matter hereof have been made by either party which are not
expressly set forth in this Agreement.

10. GOVERNING LAW. This Agreement shall be governed by and construed and enforced in
accordance with the laws of the State of Ohio without giving effect to conflict of law principles
thereof. The parties hereby consent to the exclusive jurisdiction of the state courts of the
State of Ohio and venue in Franklin County, Ohio.

11. SEVERABILITY. The provisions of this Agreement shall be deemed severable and the
invalidity or unenforceability of any provision shall not affect the validity or enforceability of
the other provisions hereof.

12. ENTIRE AGREEMENT. This Agreement constitutes the entire agreement between the parties
hereto with respect to the subject matter hereof and supersedes all prior agreements, if any,
understandings and arrangements, oral or written, between the parties hereto with respect to the
subject matter hereof.

Page 11 of 12

 

     IN WITNESS WHEREOF, the Company has caused this Agreement to be executed by its duly
authorized officer and the Executive has executed this Agreement as of the day and year first above
written.

	 	 	 	 	 
	 	TWEEN BRANDS, INC.

 	 
	 	By:  	/s/ Michael Rayden 	 
	 	 	Name:  	Michael Rayden 	 
	 	 	Title:  	Chairman and Chief Executive Officer 	 
	 
	 	EXECUTIVE

 	 
	 	/s/ Rolando de Aguiar 
 	 
	 	Rolando de Aguiar 	 
	 	 	 
	 

Page 12 of 12

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