Document:

EX-10.1

 

Exhibit 10.1

	 	 	 
	 

	 	
	 

	 	          8323 Walton Parkway
	 

	 	          New Albany, Ohio 43054

January 18, 2007

William E. May

7829 Lambton Park Road

New Albany, OH 43054

Dear Bill:

Per our discussion, this Letter Agreement will serve to specify the terms of your separation from
Tween Brands, Inc. (“Tween Brands” or the “Company”) under the Employment Agreement dated February
23, 2004 between you and the Company (the “Employment Agreement”). Except as set forth below, (a)
all terms and conditions of your Employment Agreement remain in force and (b) to the extent of any
disagreement between this Letter Agreement and the Employment Agreement, the Employment Agreement
shall control. Any capitalized word or term used but not defined in this Letter Agreement has the
meaning given to it in the Employment Agreement.

	1.	 	January 22, 2007 shall be your “Transition Date.” Between now and the Transition Date, you
will continue as Executive Vice President and Chief Operating Officer of the Company; between
the Transition Date and the Termination Date (as defined below) you will begin an “Advising
Period,” during which you will continue to be an employee of the Company. The pay and
benefits you currently receive as Executive Vice President and Chief Operating Officer of the
Company shall continue through the Termination Date.
	 
	2.	 	You shall cease to be an officer of the Company and any of its affiliates on the Transition
Date. During the Advising Period you shall remain available on reasonable notice and at
reasonable times for periodic and reasonable advisement and consulting to the CEO and other
Executive Officers of the Company.
	 
	3.	 	The Advising Period shall end on, and your final date of employment with the Company shall
be, the Termination Date.
	 
	4.	 	The Termination Date shall be February 28, 2007.

 

 

	5.	 	The termination of your employment will be treated on the Termination Date as a termination
without Cause under Paragraph 11(b) of the Employment Agreement, entitling you to the
compensation set forth in Paragraph 11(b) of the Employment Agreement and to no further
compensation or benefits under the Employment Agreement.
	 
	6.	 	You acknowledge and agree that you will not be eligible to receive any Pro-Rated Bonus Amount
for the Spring 2007 Season.
	 
	7.	 	Except for your rights under this Letter Agreement, you acquit, release and forever
discharge, the Company, its affiliates, and all of their past, present and future officers,
directors, agents, employees and shareholders, of and from all, and in all manner of, actions
and causes of action, suits, debts, claims and demands whatsoever, in law or in equity, which
you ever had or may now have, through the date of your execution of this Letter Agreement,
with respect to any aspect of your employment by, or termination of employment from, the
Company and with respect to any other agreement, under other federal, state or local law with
respect to age, race, sex, and other forms of employment discrimination, breach of contract,
tort or other federal, state and local laws relating to employment and its termination.
	 
	8.	 	Except for its rights under this Letter Agreement, the Company acquits, releases and forever
discharges you of and from all, and in all manner of, actions and causes of action, suits,
debts, claims and demands whatsoever, in law or in equity, which it ever had or may now have,
through the date of your execution of this Letter Agreement, with respect to any aspect of
your employment by, or termination of employment from, the Company.
	 
	9.	 	You hereby certify that you are not aware of any weakness, compliance issue or accounting
issues that have not been previously disclosed to the Company’s Chief Executive Officer or
have been specifically identified and recognized as an issue in the Sarbanes-Oxley Section 404
process.
	 
	10.	 	If the terms are acceptable, you have twenty-one (21) days from the date of receipt to sign
this Letter Agreement. You understand that you should discuss any concerns you may have with
your lawyer before executing this Letter Agreement. By law, after you sign this Letter
Agreement you have seven (7) days from that date in which you can change your mind and revoke
it. To revoke this Letter Agreement, you must deliver a written revocation to the Executive
Vice President, Chief Human Resources Officer at Tween Brands, Inc., 8323 Walton Parkway, New
Albany, OH 43054 by 5:00 p.m. on or before the seventh day following the date you sign this
Letter Agreement.

 

 

	11.	 	You and the Company agree that this Letter Agreement serves to fulfill any and all notice
provisions in the Employment Agreement, pursuant to Paragraphs 10(g), 11(b) or otherwise.

Thank you for the many valuable contributions you have made to the Company and I wish you great
success in the future.

Sincerely,

/s/ Michael W. Rayden

Michael W. Rayden

Chairman, President and

Chief Operating Officer

Agreed to and accepted:

	 	 	 
	/s/ William E. May
 

William E. May

	 	 
	January 19, 2007EX-10.2

 

Exhibit 10.2

	 	 	 
	 

	 	
	 

	 	          8323 Walton Parkway
	 

	 	          New Albany, Ohio 43054

January 8, 2007

Kenneth T. Stevens

7309 Lambton Park Road

New Albany, Ohio 43054

Dear Ken:

It is with great pleasure that we extend the following offer of employment to you. We
feel confident you have the capabilities and talent to quickly become a very successful contributor
at Tween Brands, Inc.

The following are the terms and conditions of our job offer to you and replace any and all
previous offers or discussions concerning your employment with Tween Brands.

	 	 	 
	Job Title:

	 	President – Chief Operating Officer
	 
	 	 
	Reporting To:

	 	Michael Rayden
	 
	 	 
	Start Date:

	 	January 29, 2007
	 
	 	 
	Annual Pay Rate:

	 	 $800,000
	 
	 	 
	 

	 	In addition, you may be considered for an annual performance
evaluation. Any corresponding pay adjustments would be based on
your performance, business results, economic & competitive
factors, and approval from the Board of Directors.
	 
	 	 
	Sign On Bonus:

	 	 5,000 Shares
	 
	 	 
	 

	 	Tween Brands will grant you 5,000 Shares of Restricted Stock.
This stock will fully vest (100% of the Shares) effective two (2)
years from your start date with the Company.
	 
	 	 
	Vacation:

	 	4 weeks per fiscal year beginning fiscal year 2007.
	 
	 	 
	 

	 	Vacation time is earned by employees on a fiscal year
basis. Upon termination of employment, employees receive a pro
rata pay out of unused vacation time based on the number of worked
months in the fiscal year.

 

 

	 	 	 
	Benefits:

	 	Your participation in the benefits program is outlined below. Also enclosed with this
letter is a benefits document that provides additional detail regarding eligibility periods &
benefit effective dates. You will be eligible for the health, life and disability benefits,
as described below, the first of the month following 30 days of full time employment.
	 
	 	 
	 

	 	Health Benefits: You will be eligible to participate in
the medical, dental and vision insurance programs offered by Tween
Brands. An overview of the program as well as the bi-weekly
premiums is outlined in the enclosed benefits document.
	 
	 	 
	 

	 	Life Insurance: You will receive 4 times your annual base
pay ($1,000,000 maximum) paid for by Tween Brands. In addition,
you will have the option to purchase additional life insurance for
yourself, spouse, and children all at very competitive rates.
	 
	 	 
	 

	 	Disability Insurance: You will be eligible to participate
in the salary continuation, short-term and long-term disability
insurance program offered by Tween Brands. The salary
continuation program provides 100% of your pay for up to 30 days
beginning on day 6 of the disability. Short & Long-term
disability both provide 60% of your pay, which can last up to age
65 with long-term disability. All payments are based on physician
certification and medical necessity.
	 
	 	 
	 

	 	Retirement:  Upon completion of eligibility requirements,
you will be eligible for the Savings and Retirement Plan. Each
year, Tween Brands makes a discretionary contribution of 3% of
your pay up to the social security wage base and 6% of your pay
above from year’s 1 thru 5. After 5 years, the company makes a
discretionary contribution of 4% of your pay up to social security
wage base and 7% of your pay above.
	 
	 	 
	 

	 	401(k): Upon completion of your eligibility requirements,
you will be eligible to participate in the 401(k) Retirement Plan.
This plan allows you the opportunity to defer your money (as much
as 50% up to IRS limits) into the pre-tax 401(k) Retirement Plan. These contributions are not eligible for an employer match.
	 
	 	 
	 

	 	Deferred Compensation: Upon completion of eligibility
requirements, you will be eligible to participate in the Deferred
Compensation Plan. This plan allows you the opportunity to defer
your money (up to 50%) into the pre-tax Deferred Compensation
Plan. In addition, the company will match your first 3% of
deferrals on a 2-for-1 basis (3% — meaning 3% of your annual
salary). In other words, if you put in 3% then the company will
also put in 6% for a total contribution of 9%.

 

 

	 	 	 
	 

	 	Limited Too & Justice Discount: You will receive a 40%
discount on purchases at all Limited Too stores and 40% discount
at all Justice Stores immediately upon employment.
	 
	 	 
	Incentive Compensation:

	 	Participation in the Incentive Compensation (cash bonus) program at a
target level of 100% of your annual base salary. Your initial annual target level is
$800,000. Maximum annual payout is double your target level ($1,600,000 maximum).
	 
	 	 
	 

	 	All Incentive Compensation (IC) payouts are based on Tween Brands,
Inc.’s financial results and your individual performance results,
and can vary from zero (0) to a maximum of double your target
level.
	 
	 	 
	 

	 	IC is paid twice a year at the end of each season (August and
February). The Spring Season is weighted at 40%; the Fall Season is
weighted at 60%.
	 
	 	 
	 

	 	All participants must be actively employed on the day IC is
paid out to be eligible for an IC payment.
	 
	 	 
	 

	 	You will be eligible for the IC program beginning the “Spring”
2007 season. You will be guaranteed six (6) months of Spring IC
(100% x $800,000 = $800,000 x 40% = $320,000 guaranteed).
	 
	 	 
	 

	 	Your Spring guaranteed target bonus ($320,000) will be paid to you
in stock or cash, at your request. If taken as stock, the strike
price to determine the number of shares shall be the closing price
of Tween Brands stock on the day the Compensation Committee
approves the Spring Bonus Payout (e.g., $320,000 ÷ closing price
day of Compensation Committee approval = number of shares
granted.)
	 
	 	 
	Stock Options:

	 	You will receive 50,000 Stock Options, plus 25,000 Restricted Stock Shares upon
employment date, as outlined below.
	 
	 	 
	 

	 	The price of option shares will be the closing price of our stock
on the first day of employment.
	 
	 	 
	 

	 	These 50,000 Stock Options are exercisable as follows:

	 	 	 	 	 	 	 	 	 
	Vesting Period	 	# Vested Per Year	 	Total Vested
	25% vested after 1 year
	 	 	12,500	 	 	 	12,500	 
	25% vested after 2 years
	 	 	12,500	 	 	 	25,000	 
	25% vested after 3 years
	 	 	12,500	 	 	 	37,500	 
	25 % vested after 4 years
	 	 	12,500	 	 	 	50,000	 

	 	 	 
	 

	 	These 25,000 Restricted Stock Shares are exercisable as follows:

 

 

	 	 	 	 	 	 	 	 	 
	Vesting Period	 	# Vested Per Year	 	Total Vested
	25% vested after 1 year
	 	 	6,250	 	 	 	6,250	 
	25% vested after 2 years
	 	 	6,250	 	 	 	12,500	 
	25% vested after 3 years
	 	 	6,250	 	 	 	18,750	 
	25 % vested after 4 years
	 	 	6,250	 	 	 	25,000	 

	 	 	 
	 

	 	Stock exercising, along with other items, is described in the
terms and conditions of the plan document.
	 
	 	 
	 

	 	All future grants will be made commensurate with your position and
performance on an annual basis. And all stock grants are
contingent upon the approval from the Board of Directors.
	 
	 	 
	Reimbursement of Certain
	 	 
	Legal & Financial
	 	 
	Planning Costs:

	 	You will be entitled to receive reimbursement
of expenses (up to a maximum total amount of
$10,000) associated with (a) legal fees related
to the negotiation of your employment
agreements with Tween Brands, Inc. and (b)
costs related to the transfer of certain
accounts from Deloitte & Touche to another
financial planner. You agree to provide
receipts for all such expenses for which you
seek reimbursement. These fees will be
reimbursed, including any gross-up requested to
grant you full reimbursement to a maximum of
$10,000.
	 
	 	 
	Board of Directors:

	 	We agree to recommend you as a director nominee
to the Board of Directors of Tween Brands, Inc.
	 
	 	 
	Executive Coaching:

	 	Tween Brands, Inc. will provide an executive
coach to work with you and the CEO, as you both
agree.
	 
	 	 
	Employment Agreement
	 	 
	                 &
	 	 
	Executive Agreement

	 	See attached.

 

 

If you agree with our offer as specified above, please sign both copies, keep one for your
records and return one in the enclosed envelope. We are looking forward to the beginning
of a mutually beneficial association.

This employment offer is based on your representation that you are under no legal impediment to
accepting our offer and performing the anticipated services. It is further understood that this
letter is intended for purposes of explaining the details of the total offer and does not represent
any inferred short or long-term commitments other than those described in the letter. This is not
a contract. All job information, as well as the pay and benefit programs outlined in this letter
and the enclosed materials are subject to change periodically based on business needs. In
addition, this offer is contingent upon a satisfactory background check, the execution of
definitive agreements, and formal approval by the Board of Directors of this offer. At Tween
Brands, Inc. an employment at-will relationship prevails and the employment relationship can be
terminated with or without cause and with or without notice, at anytime, by either the employee or
the employer.

Once again, we feel confident you have the capabilities and talent to quickly become a very
successful contributor at Tween Brands.

	 	 	 	 	 
	Sincerely,

	 	I accept your offer as specified above.	 	 
	 
	 	 	 	 
	/s/ Michael W. Rayden

Michael W. Rayden
	 	/s/ Kenneth T. Stevens
 

                         Kenneth T. Stevens
	 	 
	Chairman, President & CEO
	 	 	 	 
	Phone: (614) 775-3510
	 	 	 	 
	Fax: (614) 775-3930
	 	 	 	 
	 
	 	 	 	 
	Attachments

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00116-of-00352.parquet"}]]