Document:

Standby Purchase Agreement, dated as of September 7, 2005

 Exhibit 10.9 
  
 STANDBY PURCHASE AGREEMENT 
  
 THIS STANDBY PURCHASE AGREEMENT (the “Agreement”) is made as of September 7, 2005, by and between Alloy, Inc., a Delaware corporation
(“Alloy”), dELiA*s, Inc., a Delaware corporation (the “Company”), and MLF Investments LLC, a Delaware limited liability company (“MLF”). Except as otherwise indicated herein, capitalized terms used
herein without immediate definition shall have the meanings given them in Section 11 hereof. 
  
 WHEREAS, the Board of Directors of Alloy has determined that it is in the best interests of Alloy and its shareholders to separate
the merchandise businesses currently conducted by certain subsidiaries of Alloy, including the operating subsidiaries Alloy Merchandising Group, LLC (the Company’s predecessor in interest), dELiA*s Corp., Alloy Merchandising, LLC and Skate
Direct, LLC (collectively, the “Merchandising Business”) from the other businesses conducted by Alloy and its Subsidiaries; 
  
 WHEREAS, in furtherance of the foregoing, Alloy intends to effect a series of transactions, including, without limitation, the
contribution by Alloy and various of its affiliates to the Company of certain assets relating to the Merchandising Businesses, the end result of which transactions will be that the Company will own, directly and indirectly, substantially all of the
assets relating to the Merchandising Businesses now held by Alloy and its subsidiaries; 
  
 WHEREAS, upon the consummation of the transactions described above and subject to the fulfillment of the conditions set forth
herein, Alloy first intends to effect the distribution of all of the outstanding shares of common stock, par value $.001 per share, of the Company (the “Common Stock”) on a pro rata basis to the holders of shares of common stock,
par value $.01 per share, of Alloy (the “Alloy Common Stock”) as of the Record Date (as hereinafter defined) (the “Spinoff”), all substantially in the manner described in the Registration Statement (as defined
below); 
  
 WHEREAS, in connection with
Spinoff, and in order to provide the Company with sufficient capital to effect a retail store expansion plan and provide working capital for its business operations following consummation of the Spinoff, the Company intends to conduct a rights
offering (the “Rights Offering”) to allow its stockholders (as of a certain record date) the transferable right (each a “Right,” and collectively, the “Rights”) to purchase additional fractional
shares of its Common Stock for each share of Common Stock owned as of the record date to be established for the Rights Offering (the “Record Date”), at a price per share equal to a pre-money value equal to $175 million divided by
the number of shares of our common stock that will be issued in the Spinoff, as adjusted pursuant to the treasury stock method to account for the dilutive impact of options and warrants that will be outstanding immediately following the Spinoff (the
“Exercise Price”); and 
  
 WHEREAS, MLF has, pursuant to the terms of a Letter Agreement, dated as of April 13, 2005, by and between MLF and Alloy (the “Letter Agreement”), agreed to participate in the Rights Offering by exercising its pro
rata share of the Rights and, in connection with the Rights Offering, has committed to subscribe for and exercise any Rights that remain unsold in the Rights Offering (the “Backstop Amount”) at the Exercise Price (it being
understood that other stockholders will not be offered the right to purchase any Rights that go unsubscribed in the Rights Offering) up to an aggregate dollar amount equal to the difference between the 

 
aggregate dollar amount of MLF’s exercise of its pro rata share of the Rights and $20 million; and 
  
 WHEREAS, MLF is the investment manager of MLF
Partners, L.P., a Delaware limited partnership and MLF Offshore Portfolio Company, L.P., a Cayman Islands exempted limited partnership (collectively, the “MLF Funds,” which shall include for purposes of this Agreement all investment
funds for which MLF acts as investment advisor and which, subsequent to the date hereof, acquire record or beneficial ownership of any shares of Common Stock or Alloy Common Stock), which collectively own, as of the date hereof, 7,489,082 shares of
Alloy Common Stock; and 
  
 WHEREAS, in
connection with the transactions contemplated hereby, the Company has agreed to grant MLF and the other purchasers of Rights and Common Stock hereunder certain rights to have their shares of Common Stock registered under the Securities Act for
resale, all pursuant to the provisions of a Registration Rights Agreement in substantially the form of Exhibit A hereto (the “Registration Rights Agreement”).  
  
 NOW, THEREFORE, in consideration of the mutual
covenants contained herein and other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereby agree as follows: 
  
 Section 1. PARTICIPATION IN THE RIGHTS OFFERING; BACKSTOP. 
  
 (a) Participation in the Rights Offering. Pursuant to the terms and subject to the conditions of this
Agreement, MLF hereby agrees to cause the MLF Funds to exercise, prior to the expiration of the Rights Offering, their respective full pro rata share of the Rights, based on the total number of Rights to which each such MLF Funds is entitled in the
Rights Offering and the total number of Rights being offered in the Rights Offering (its “Pro Rata Share”), such exercise to be effected in accordance with the procedures set forth in the Company’s Registration Statement on
Form S-1 that is contemplated to be filed with the Commission on or about September 2, 2005 (as filed and as thereafter amended, the “Registration Statement”; and the prospectus, including all documents incorporated therein by
reference, as supplemented by the final prospectus relating to the Rights, in the form filed by the Company with the Commission pursuant to Rule 424(b) under the Securities Act on or before the second business day after the date the Registration
Statement is declared effective by the Commission, is herein called the “Prospectus”) under the heading “The Rights Offering—Method of Exercising Rights,” and to pay the aggregate Exercise Price for its Pro Rata Share
of the Rights granted to it in the Rights Offering as and when required pursuant to the provisions of the Rights. 
  
 (b) Backstop. Pursuant to the terms and subject to the conditions of this Agreement, the Company hereby offers MLF the right to
subscribe for and exercise, in connection with the Rights Offering, at the Exercise Price, the Backstop Amount. As soon as reasonably practicable following the expiration date of the Rights Offering as set forth in the Registration Statement (as
such date may be extended by the Company, the “Expiration Date”), the Company and the subscription agent for the Rights Offering shall determine the Backstop Amount and provide notice thereof to MLF, which notice shall be given at
least five (5) business days prior to the Closing (as defined in Section 2). At the Closing, MLF hereby agrees to, or to cause one or more of the MLF Funds collectively to, subscribe for and exercise, at the Exercise Price, the Backstop Amount (it
being understood that other stockholders will not be offered the 

  

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right to purchase any Rights that go unsubscribed in the Rights Offering including by means of an oversubscription right) in such amounts as between MLF and
each MLF Fund as MLF shall determine, in its sole discretion. 
  
 Section 2. THE CLOSING. The subscription for the Backstop Amount hereunder shall take place as soon as reasonably practicable following the Expiration Date, but in any event not earlier than five (5) business days after notice to MLF and
not later than ten (10) business days following the Expiration Date, at a place mutually agreeable to the Company and MLF (the “Closing”). At the Closing, the Company shall deliver to MLF the certificates evidencing the shares of
Common Stock subscribed for pursuant to Section 1(b), the warrants required to be delivered pursuant to Section 9(b) and the Registration Rights Agreement, duly executed by the Company, and MLF shall deliver to the Company a cashier’s check or
wire transfer of immediately available funds to a bank account designated by the Company in the amount equal to the Exercise Price multiplied by the number of Shares exercisable pursuant to the Rights represented by the Backstop Amount. The date on
which the Closing occurs is hereinafter referred to as the “Closing Date.” 
  
 Section 3. REPRESENTATIONS AND WARRANTIES OF THE COMPANY. As a material inducement to MLF to enter into this Agreement and to subscribe for the Rights, the Company hereby represents and warrants that: 
  
 (a) Organization and Corporate Power. The Company is
a corporation duly organized, validly existing and in good standing under the laws of Delaware and is duly qualified to do business as a foreign corporation and is in good standing in each jurisdiction where the ownership or leasing of its
properties or the conduct of its business requires such qualification, except where the failure to be so qualified would not have a Material Adverse Effect. The Company has all requisite corporate power and authority to own and operate its
properties, to carry on its business as now conducted and presently proposed to be conducted and to carry out the transactions contemplated by this Agreement, including, without limitation, the Rights Offering. The Company has all necessary
licenses, authorizations, consents and approvals and has made all necessary filings required under any federal, state, local or foreign law, regulation or rule, and has obtained all necessary authorizations, consents and approvals from other
persons, in order to conduct its business, except with respect to such licenses, authorizations, consents and approvals the failure to obtain which would not have a Material Adverse Effect. The Company is not in violation of, or in default under,
nor has it received notice of any proceedings relating to revocation or modification of, any such license, authorization, consent or approval or any federal, state, local or foreign law, regulation or rule or any decree, order or judgment applicable
to the Company, which violation, breach or revocation likely would result in a Material Adverse Effect. 
  
 (b) Capital Stock. Immediately following the Closing, the authorized capital stock of the Company shall consist of (a) twenty five
million (25,000,000) shares of preferred stock, none of which shares shall be issued and outstanding and one million (1,000,000) shares of which shall have been designated as the Company’s Series A Junior Participating Preferred Stock and (b)
one hundred million (100,000,000) shares of Common Stock, with the amount outstanding as of the Rights Offering Record Date to be as described in the Prospectus. The capital stock of the Company will, as of the Rights Offering Record Date, conform
in all material 

  

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respects to the description thereof contained in the Registration Statement and the Prospectus, and the certificates for the shares of Common Stock are in
due and proper form and the holders of such shares will not be subject to personal liability by reason of being such holders. As of the Closing, the outstanding options, warrants and other rights to purchase capital stock of the Company shall be as
set forth in the Registration Statement and the Prospectus under the heading “Capitalization.” Immediately following the Closing, all of the issued and outstanding shares of capital stock, including the Common Stock, of the Company have
been duly authorized and validly issued and are fully paid and non-assessable, have been issued in compliance with all federal and state securities laws and were not issued in violation of any preemptive right, resale right, right of first refusal
or similar right and shall be listed for trading on The Nasdaq Stock Market (“Nasdaq”). Except as set forth in the Registration Statement and the Prospectus (i) no person has the right, contractual or otherwise, to cause the Company
to issue or sell to it any shares of Common Stock or shares of any other capital stock or other equity interests of the Company and (ii) no person has any preemptive rights, resale rights, rights of first refusal or other rights to purchase any
shares of Common Stock or shares of any other capital stock or other equity interests of the Company, and, in the case of each of the foregoing clauses (i) and (ii), whether as a result of the filing or effectiveness of the Registration Statement or
the issuance of the Rights or the sale of the shares of Common Stock as contemplated thereby or otherwise; except as set forth in the Registration Statement and the Prospectus, no person has the right, contractual or otherwise, to cause the Company
to register under the Securities Act any shares of Common Stock or shares of any other capital stock or other equity interests of the Company, or to include any such shares or interests in the Registration Statement or the offering contemplated
thereby, whether as a result of the filing or effectiveness of the Registration Statement or the issuance of the Rights as contemplated thereby or otherwise. 
  

(c) Authorization; No Breach. The execution, delivery and performance of this Agreement, the Warrant, the Registration Rights
Agreement and each other agreement contemplated hereby to which the Company is a party have been duly authorized by the Company. The Company is not in breach or violation of or in default under (nor has any event occurred which with notice, lapse of
time or both would result in any breach of, constitute a default under or give the holder of any indebtedness (or a person acting on such holder’s behalf) the right to require the repurchase, redemption or repayment of all or a part of such
indebtedness under) its (A) certificate of incorporation or by-laws, or (B) any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any license, lease, contract or other agreement or instrument to
which the Company is a party or by which it or any of its properties may be bound or affected and, except with respect to (B) only, which breach, violation or default would be reasonably likely to result in a Material Adverse Effect; and the
execution, delivery and performance of this Agreement, the Warrant and the Registration Rights Agreement, the issuance of the Rights and the issuance and sale of the shares of Common Stock issuable upon exercise of the Rights and the consummation of
the transactions contemplated in the Rights Offering and hereby will not conflict with, result in any breach or violation of or constitute a default under (nor constitute any event which with notice, lapse of time or both would result in any breach
of or constitute a default under) (A) the certificate of incorporation or by-laws of the Company, or (B) any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any license, lease, contract or
other agreement or instrument to which the Company is a party or by which it or any of its properties may be bound or affected, or (C) any federal, state, local or foreign law, regulation or rule or any decree, 

  

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judgment or order applicable to the Company and which breaches, defaults or violations would, in the case of the matters described in clauses (B) and (C)
above, be reasonably likely to result in a Material Adverse Effect; and except for the registration under the Securities Act of (A) the shares of Common Stock to be issued in the Spinoff, (B) the Rights and (C) the shares of Common Stock issuable
upon exercise of the Rights and such consents, approvals, authorizations, registrations or qualifications as may be required under the Securities Exchange Act of 1934, as amended (the “Exchange Act”) and applicable state securities
laws in connection with the Spinoff and the Rights Offering, no consent, approval, authorization or order of, or filing or registration with, any such court or governmental agency or body is required for the execution, delivery and performance of
this Agreement by the Company and the consummation of the transactions contemplated hereby. 
  
 (d) Binding Agreement; Enforceability. This Agreement has been duly authorized, executed and delivered by the Company and is a
legal, valid and binding agreement of the Company, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and to general principles of equity
and to limitations on the rights to indemnity and contribution that exist by virtue of public policy. Each of the Warrant and Registration Rights Agreement, when duly executed and delivered by the Company, will be a legal, valid and binding
agreement of the Company, enforceable in accordance with its terms, subject to applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and to general principles of equity and to limitations on the
rights to indemnity and contribution that exist by virtue of public policy. 
  
 (e) Independent Public Accountants. BDO Seidman LLP, whose report on the financial statements of the Company is filed with the Commission as part of the Registration Statement and the Prospectus, are
independent public accountants as required by the Act. Ernst & Young LLP, whose report on the financial statements of dELiA*s Corp. is filed with the Commission as part of the Registration Statement and the Prospectus, are independent public
accountants as required by the Act. 
  
 (f)
Financial Statements. The audited and unaudited financial statements included in the Registration Statement, together with the related notes and schedules, present fairly the financial position of the Company as of the dates indicated and the
results of operations and cash flows of the Company for the periods specified and have been prepared in compliance with the requirements of the Securities Act and in conformity with generally accepted accounting principles applied on a consistent
basis during the periods involved; any pro forma financial statements or data included in the Registration Statement and the Prospectus comply with the requirements of Regulation S-X of the Act and the Company believes that the assumptions used in
the preparation of such pro forma financial statements and data are reasonable, the pro forma adjustments used therein are appropriate to give effect to the transactions or circumstances described therein and the pro forma adjustments have been
properly applied to the historical amounts in the compilation of those statements and data; the other financial and statistical data set forth in the Registration Statement and the Prospectus are accurately presented in all material respects and
prepared on a basis consistent with the financial statements and books and records of the Company; there are no financial statements (historical or pro forma) that are required to be included in the Registration Statement and the Prospectus that are
not included as required; and 

  

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the Company does not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not disclosed in the
Registration Statement and the Prospectus. 
  
 (g) No Material Changes. Subsequent to the respective dates as of which information is given in the Registration Statement and the Prospectus, there has not been (i) any material adverse change, or any development reasonably likely
to result in a prospective material adverse change, in the business, properties, management, financial condition or results of operations of the Company taken as a whole, (ii) any transaction which is material to the Company, (iii) any obligation,
direct or contingent (including any off-balance sheet obligations), incurred by the Company which is material to the Company, (iv) any change in the capital stock or (v) any dividend or distribution of any kind declared, paid or made on the capital
stock of the Company. 
  
 (h) No Material
Misstatements. The Registration Statement and Prospectus complied in all material respects with the requirements of the Securities Act and does not contain any untrue statement of a material fact or omit to state a material fact required to be
stated therein or necessary in order to make the statements therein, as of the date and in light of the circumstances under which they were made, not misleading; provided, that information provided as of a later date or filing shall be deemed to
modify information provided as of an earlier date or filing. 
  
 (i) Broker’s Fees. There is no investment banker, broker, finder or other intermediary or advisor that has been retained by or is authorized to act on behalf of Alloy or the Company or any of its
Affiliates who might be entitled to any fee, commission or reimbursement of expenses from MLF as a result of the MLF Funds’ exercise of their Rights in the Rights Offering and the MLF Funds’ purchase of the Backstop Amount. 
  
 (j) Capitalization. The Company currently anticipates
that Cash and Cash Equivalents on its balance sheet immediately post-Spinoff (which includes for purposes of this definition the net proceeds of the $1.2 million private placement described in the Registration Statement and the net proceeds of the
Rights Offering, plus liquid assets transferred from Alloy in connection with the Spinoff) plus its expected net cash flow thereafter, will result in approximately $30 million of Cash and Cash Equivalents on its balance sheet as of January 31, 2006,
though such number is subject to change based on the performance of the Company, capital expenditures and other factors. 
  
 Section 4. REPRESENTATIONS AND WARRANTIES OF ALLOY. As a material inducement to MLF to enter into this Agreement and cause the MLF Funds to subscribe for
the Rights, Alloy hereby represents and warrants that: 
  
 (a) Organization and Corporate Power. Alloy is a corporation duly organized, validly existing and in good standing under the laws of Delaware and is duly qualified to do business as a foreign corporation and is in good standing in
each jurisdiction where the ownership or leasing of its properties or the conduct of its business requires such qualification and where the failure to be so qualified could materially and adversely affect Alloy’s ability to effect the Spinoff.
Alloy has all requisite corporate power and authority to own and operate its 

  

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properties, to carry on its business as now conducted and presently proposed to be conducted and to carry out the transactions contemplated by this
Agreement, including, without limitation, the Rights Offering. Alloy has all necessary licenses, authorizations, consents and approvals and has made all necessary filings required under any federal, state, local or foreign law, regulation or rule,
and has obtained all necessary authorizations, consents and approvals from other persons, in order to effect the Spinoff; Alloy is not in violation of, or in default under, or has received notice of any proceedings relating to revocation or
modification of, any such license, authorization, consent or approval or any federal, state, local or foreign law, regulation or rule or any decree, order or judgment applicable to Alloy, which violation, default or revocation could materially and
adversely affect Alloy’s ability to effect the Spinoff. 
  
 (b) Capital Stock. Immediately following the Closing, the authorized capital stock of the Company shall consist of (a) twenty five million (25,000,000) shares of preferred stock, none of which shares shall be
issued and outstanding and one million (1,000,000) shares of which shall have been designated as the Company’s Series A Junior Participating Preferred Stock and (b) one hundred million (100,000,000) shares of Common Stock, with the amount
outstanding as of the Rights Offering Record Date to be as described in the Prospectus. The capital stock of the Company conforms in all material respects to the description thereof contained in the Registration Statement and the Prospectus, and the
certificates for the shares of Common Stock are in due and proper form and the holders of such shares will not be subject to personal liability by reason of being such holders. As of the Closing, the outstanding options, warrants and other rights to
purchase capital stock of the Company shall be as set forth in the Registration Statement and the Prospectus under the heading “Capitalization.” Immediately following the Closing, all of the issued and outstanding shares of capital stock,
including the Common Stock, of the Company have been duly authorized and validly issued and are fully paid and non-assessable, have been issued in compliance with all federal and state securities laws and were not issued in violation of any
preemptive right, resale right, right of first refusal or similar right and shall be listed for trading on Nasdaq. Except as set forth in the Registration Statement and the Prospectus (i) no person has the right, contractual or otherwise, to cause
the Company to issue or sell to it any shares of Common Stock or shares of any other capital stock or other equity interests of the Company and (ii) no person has any preemptive rights, resale rights, rights of first refusal or other rights to
purchase any shares of Common Stock or shares of any other capital stock or other equity interests of the Company, and, in the case of each of the foregoing clauses (i) and (ii), whether as a result of the filing or effectiveness of the Registration
Statement or the issuance of the Rights or the sale of the shares of Common Stock as contemplated thereby or otherwise; except as set forth in the Registration Statement and the Prospectus, no person has the right, contractual or otherwise, to cause
the Company to register under the Securities Act any shares of Common Stock or shares of any other capital stock or other equity interests of the Company, or to include any such shares or interests in the Registration Statement or the offering
contemplated thereby, whether as a result of the filing or effectiveness of the Registration Statement or the issuance of the Rights as contemplated thereby or otherwise. 
  
 (c) Authorization; No Breach. The execution, delivery and performance of this Agreement and any other
agreement contemplated hereby to which Alloy is a party have been duly authorized by Alloy. Alloy is not in breach or violation of or in default under (nor has any event occurred which with notice, lapse of time or both would result in any breach
of, constitute a default under or give the holder of any indebtedness (or a person acting on such 

  

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holder’s behalf) the right to require the repurchase, redemption or repayment of all or a part of such indebtedness under) its (A) certificate of
incorporation or by-laws, or (B) any indenture, mortgage, deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any license, lease, contract or other agreement or instrument to which Alloy is a party or by which it or
any of its properties may be bound or affected, which breach, violation or default could materially and adversely affect Alloy’s ability to effect the Spinoff; and the execution, delivery and performance of this Agreement, the issuance of the
Rights and the issuance and sale of the shares of Common Stock issuable upon exercise of the Rights and the consummation of the transactions contemplated in the Rights Offering and hereby will not conflict with, result in any breach or violation of
or constitute a default under (nor constitute any event which with notice, lapse of time or both would result in any breach of or constitute a default under) (A) the certificate of incorporation or by-laws of Alloy, or (B) any indenture, mortgage,
deed of trust, bank loan or credit agreement or other evidence of indebtedness, or any license, lease, contract or other agreement or instrument to which Alloy is a party or by which it or any of its properties may be bound or affected, or (C) any
federal, state, local or foreign law, regulation or rule or any decree, judgment or order applicable to Alloy; and except for the registration under the Securities Act of (A) the shares of Common Stock to be issued in the Spinoff, (B) the Rights and
(C) the shares of Common Stock issuable upon exercise of the Rights and such consents, approvals, authorizations, registrations or qualifications as may be required under the Exchange Act and applicable state securities laws in connection with the
Spinoff and the Rights Offering, no consent, approval, authorization or order of, or filing or registration with, any such court or governmental agency or body is required for the execution, delivery and performance of this Agreement by Alloy and
the consummation of the transactions contemplated hereby. 
  
 (d) Binding Agreement; Enforceability. This Agreement has been duly authorized, executed and delivered by Alloy and is a legal, valid and binding agreement of Alloy, enforceable in accordance with its terms,
subject to applicable bankruptcy, insolvency, reorganization or similar laws affecting creditors’ rights generally and to general principles of equity and to limitations on the rights to indemnity and contribution that exist by virtue of public
policy. 
  
 (e) Independent Public
Accountants. BDO Seidman LLP, whose report on the financial statements of Alloy is filed with the Commission as part of the Registration Statement and the Prospectus, are independent public accountants as required by the Act. Ernst & Young
LLP, whose report on the financial statements of dELiA*s Corp. is filed with the Commission as part of the Registration Statement and the Prospectus, are independent public accountants as required by the Act. 
  
 (f) Financial Statements. The audited and unaudited
financial statements included in the Registration Statement, together with the related notes and schedules, present fairly the financial position of the Company as of the dates indicated and the results of operations and cash flows of the Company
for the periods specified and have been prepared in compliance with the requirements of the Securities Act and in conformity with generally accepted accounting principles applied on a consistent basis during the periods involved; any pro forma
financial statements or data included in the Registration Statement and the Prospectus comply with the requirements of Regulation S-X of the Act and the Company believes that the assumptions used in the preparation of such pro forma financial
statements and data are reasonable, the pro forma 

  

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adjustments used therein are appropriate to give effect to the transactions or circumstances described therein and the pro forma adjustments have been
properly applied to the historical amounts in the compilation of those statements and data; the other financial and statistical data set forth in the Registration Statement and the Prospectus are accurately presented in all material respects and
prepared on a basis consistent with the financial statements and books and records of the Company; there are no financial statements (historical or pro forma) that are required to be included in the Registration Statement and the Prospectus that are
not included as required; and the Company does not have any material liabilities or obligations, direct or contingent (including any off-balance sheet obligations), not disclosed in the Registration Statement and the Prospectus. 
  
 (g) No Material Changes. Subsequent to the respective
dates as of which information is given in the Registration Statement and the Prospectus, there has not been (i) any material adverse change, or any development reasonably likely to result in a prospective material adverse change, in the business,
properties, management, financial condition or results of operations of the Company taken as a whole, (ii) any transaction which is material to the Company, (iii) any obligation, direct or contingent (including any off-balance sheet obligations),
incurred by the Company which is material to the Company, (iv) any change in the capital stock or (v) any dividend or distribution of any kind declared, paid or made on the capital stock of the Company. 
  
 (h) No Material Misstatements. The Registration
Statement and Prospectus complied in all material respects with the requirements of the Securities Act and does not contain any untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary in order
to make the statements therein, in light of the circumstances under which they were made, not misleading. 
  
 (i) Broker’s Fees. There is no investment banker, broker, finder or other intermediary or advisor that has been retained by or
is authorized to act on behalf of Alloy or the Company or any of its Affiliates who might be entitled to any fee, commission or reimbursement of expenses from MLF as a result of MLF’s exercise of its Rights in the Rights Offering and MLF’s
purchase of the Backstop Amount. 
  
 Section 5. REPRESENTATIONS,
WARRANTIES AND COVENANTS OF MLF. As a material inducement to the Company to enter into this Agreement, MLF hereby represents and warrants that, and represents, warrants and covenants as set forth in paragraph (f) that: 
  
 (a) Organization And Corporate Power. MLF is a
limited liability company duly organized, validly existing and in good standing under the laws of the State of Delaware and is qualified to do business in every jurisdiction in which its ownership of property or conduct of business requires it to
qualify. MLF has all requisite limited liability company power and authority and all material licenses, permits and authorizations necessary to own and operate its properties, to carry on its business as now conducted and presently proposed to be
conducted and to carry out the transactions contemplated by this Agreement, including, without limitation, its agreement to cause the MLF Funds to subscribe for the Rights in the Rights Offering. 
  

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 (b) Authorization; No Breach. The execution of this Agreement by MLF and the
consummation by MLF of the transactions contemplated hereby will not conflict with or result in a breach or violation of any of the terms or provisions of, or constitute a default under, any indenture, mortgage, deed of trust, loan agreement or
other agreement or instrument to which MLF or any MLF Fund is a party or by which MLF or any MLF Fund is bound or to which any of its property or assets is subject, nor will such actions result in any violation of the provisions of any statute or
any order, rule or regulation of any court or governmental agency or body having jurisdiction over MLF or any MLF Fund or its property or assets in each case in a manner that would adversely impact MLF’s or any MLF Fund’s ability to
subscribe for the Rights hereunder and effect the purchase of the Backstop Amount, each as set forth herein, and, except for the registration of the shares of Common Stock that underlie the Rights under the Securities Act and such consents,
approvals, authorizations, registrations or qualifications as may be required under the Exchange Act and applicable state securities laws in connection with the Spinoff and the Rights Offering, no consent, approval, authorization or order of, or
filing or registration with, any such court or governmental agency or body is required for the execution, delivery and performance of this Agreement by MLF and the consummation by MLF and the MLF Funds of the transactions contemplated hereby in each
case in a manner that would adversely impact MLF’s or any MLF Fund’s ability to subscribe for the Rights and perform its other obligations hereunder. 
  

(c) Investment Representations. MLF hereby represents that it and each MLF Fund acquiring the Rights and the shares of Common
Stock that will underlie the Rights purchased hereunder or acquired pursuant hereto are acquiring such Rights and Common Stock for its own account with the present intention of holding such securities for purposes of investment, and that it has no
intention of selling such securities in a public distribution in violation of the federal securities laws or any applicable state securities laws. In addition, MLF hereby represents that it is sophisticated in financial matters and is able to
evaluate the risks and benefits of the investment in the Rights and the shares of Common Stock that will underlie the Rights. 
  
 (d) Broker’s Fees. There is no investment banker, broker, finder or other intermediary or advisor that has been retained by or
is authorized to act on behalf of MLF or any MLF Fund who might be entitled to any fee, commission or reimbursement of expenses from either Alloy or the Company or any of its Affiliates as a result of MLF’s or any MLF Fund’s exercise of
its Rights in the Rights Offering and MLF’s or any MLF Fund’s purchase of the Backstop Amount. 
  
 (e) Shares Of Common Stock Beneficially Owned. As of the date hereof, (a) MLF is the beneficial owner of 7,489,082 shares of Alloy
Common Stock, (b) MLF Partners, L.P., is the beneficial owner of no shares of Alloy Common Stock and (c) MLF Offshore Portfolio Company, L.P., is the beneficial owner of 7,489,082 shares of Alloy Common Stock. 
  
 (f) Available Funds. 
  
 (i) MLF and the MLF Funds have, or as of the effective date
of the Registration Statement will have, on hand Cash and Cash Equivalents and/or Readily Marketable Securities sufficient in amount to satisfy their collective obligations hereunder. MLF agrees, on 

  

 -10- 

 
behalf of itself and the MLF Funds, that each of MLF and the MLF Funds shall keep on hand, until the transactions contemplated hereby are consummated or this
Agreement is earlier terminated, Cash and Cash Equivalents and/or Readily Marketable Securities sufficient in amount to satisfy their collective obligations hereunder. 
  
 (ii) Alloy shall provide MLF with not less than 5 days notice of the expected effective date of the
Registration Statement and shall promptly update such notice if the expected effective date changes. In furtherance of its obligations in paragraph (i) above, not later than the business day before the date specified in such notice (or the updated
notice if applicable), MLF shall, on behalf of itself and the MLF Funds, establish one or more separate segregated accounts at MLF’s prime broker into which MLF or the MLF Funds shall deposit assets sufficient to satisfy their collective
obligations hereunder. The amounts deposited into such segregated account(s) shall consist, in the aggregate, of either: 
  

	 	(A)	$20 million of Cash and Cash Equivalents; 

  

	 	(B)	Readily Marketable Securities with an aggregate net Fair Market Value (after subtracting the full amount of all margin loans and other similar encumbrances for which such Readily
Marketable Securities are serving as collateral) of not less than $50 million; or 

  

	 	(C)	a letter from an institution, reasonably satisfactory to Alloy’s board of directors to the effect that such institution commits, in the ordinary course of its business
consistent with applicable margin regulations, to loan MLF and/or the MLF Funds, on margin, $20 million; provided, that any securities which may be required to serve as collateral for any such margin loan shall not count as deposit pursuant to
clause (B) above. 

  
 The actual composition of such segregated
account shall be selected at MLF’s sole discretion, and MLF may satisfy its obligation with a mixture of components from clauses (A), (B) and (C) above in its sole discretion so long as the mixture is in proportion to the specific requirements
of the clauses. By way of illustration only, MLF may elect to satisfy its obligations under this paragraph (f)(ii) 50% through clause (A) and 50% through clause (B) by depositing into a segregated account $10 million of Cash and Cash Equivalents and
Readily Marketable Securities with a net Fair Market Value of $25 million. Alternatively, MLF may elect to satisfy its obligations under this paragraph (f)(ii) 25% through clause (A), 25% through clause (B) and 50% through clause (C) by depositing
into a segregated account $5 million of Cash and Cash Equivalents, Readily Marketable Securities with a net Fair Market Value of $12.5 million and a letter committing the issuing institution to provide, on margin, $10 million. 
  
 (iii) Dominion and control of such brokerage account shall
at all times remain with MLF and the MLF Funds. Notwithstanding the foregoing, to the extent that any deposited amounts consist of Readily Marketable Securities, MLF shall be required to deposit 

  

 -11- 

 
the proceeds of any sales thereof directly into such segregated account and such funds shall then be considered Cash and Cash Equivalents 
  
 Section 6. CONDITIONS TO OBLIGATIONS OF EACH PARTY TO EFFECT THE CLOSING. The
respective obligations of each party to consummate the transactions contemplated hereby are subject to the satisfaction on or prior to the Closing Date of each of the following conditions: 
  
 (a) All consents by third parties (governmental or
otherwise) that are required for the consummation of the transactions contemplated hereby (including, without limitation, the consummation of the Rights Offering) shall have been obtained on terms mutually agreeable to each party. 
  
 (b) The Registration Statement shall have been timely filed
with the Commission and declared effective; no stop order suspending the effectiveness of the Registration Statement or any part thereof shall have been issued and no proceeding for that purpose shall have been initiated or threatened by the
Commission; and all requests of the Commission for inclusion of additional information in the Registration Statement and the Prospectus or otherwise shall have been complied with in all material respects. 
  
 (c) No action, suit or proceeding shall be pending or
threatened before any court or quasi-judicial or administrative agency of any jurisdiction or before any arbitrator wherein an unfavorable judgment, decree, injunction, order or ruling would prevent the performance of this agreement or any of the
transactions contemplated hereby (including, without limitation, the Spinoff and the Rights Offering), declare unlawful the transactions contemplated by this Agreement (including, without limitation, the Spinoff and the Rights Offering) or cause
such transactions to be rescinded. 
  
 (d) The
Spinoff and the Rights Offering each shall have been consummated in conformity with the requirements and conditions set forth in the Registration Statement and the Prospectus, and the shares of Common Stock to be distributed in the Spinoff to
Alloy’s stockholders shall have been so distributed in the manner set forth in the Registration Statement. 
  
 (e) The shares of Common Stock underlying the Rights shall have been listed for trading on Nasdaq. 
  
 Section 7. CONDITIONS TO OBLIGATIONS OF THE COMPANY TO EFFECT THE CLOSING. In
addition to the conditions set forth in Section 6 above, the obligations of the Company to consummate the transactions contemplated hereby are subject to each of the representations and warranties of MLF contained in this Agreement being true and
correct in all material respects as of the date hereof and at and as of the Closing Date as if made at and as of such time, except that, to the extent such representations and warranties address matters only as of a particular date, such
representations and warranties shall, to such extent, be true and correct at and as of such particular date as if made at and as of such particular date. 
  
 Section 8. CONDITIONS TO OBLIGATIONS OF THE MLF TO EFFECT THE CLOSING. In addition to the conditions set forth in Section 6 above, the obligations of MLF
to consummate the transactions contemplated hereby are subject to (i) each of the representations 

  

 -12- 

 
and warranties of the Company and Alloy contained in this Agreement being true and correct in all material respects as of the date hereof and at and as of
the Closing Date as if made at and as of such time, except that, to the extent such representations and warranties address matters only as of a particular date, such representations and warranties shall, to such extent, be true and correct at and as
of such particular date as if made at and as of such particular date; (ii) MLF’s receipt of an opinion of Katten Muchin Rosenman LLP, counsel to the Company, in form reasonably satisfactory to MLF, in respect of this Agreement and the
transactions contemplated hereby; (iii) the Company shall have taken all such action necessary to render inapplicable the provisions of Section 203 of the General Corporation Law of the State of Delaware as it relates to MLF and the MLF Funds; (iv)
the Company shall have taken all such action necessary to provide that neither MLF nor any of the MLF Funds shall be deemed an “Acquiring Person” pursuant to the provisions of the Stockholder Rights Agreement to be entered into as of the
effective date of the Spinoff by Company and American Stock Transfer & Trust Company, as Rights Agent (the “Rights Plan”), unless and until MLF, the MLF Funds and their Affiliates and Associates (as such terms are defined in the
Rights Plan) become the Beneficial Owner (as such term is defined in the Rights Plan) of more than 30% of the Company’s Common Stock, and (v) the Company shall have executed and delivered to MLF the Registration Rights Agreement, with such
changes thereto to which Alloy, the Company and MLF may mutually agree. 
  
 Section 9. BACKSTOP FEE. 
  
 (a) Within
three (3) days of the approval by the Board of Directors of Alloy of the Spinoff, Alloy shall pay to MLF a non-refundable commitment fee of $50,000 by wire transfer of immediately available funds to the account identified in writing to Alloy.

  
 (b) If the Rights Offering is effected, MLF
shall be entitled to receive at the Closing a non-refundable fee upon the consummation of the Rights Offering and MLF’s purchase of the Backstop Amount at the Exercise Price of ten-year warrants to purchase, at the Exercise Price, that number
of shares of Common Stock that is equal to .08 multiplied by the number of shares of Common Stock issued pursuant to the Rights Offering. Such warrants shall be in substantially the form attached hereto as Exhibit A, with such changes thereto
to which Alloy, the Company and MLF may mutually agree, and shall be issued at the Closing or as soon thereafter as reasonably practical. 
  
 Section 10. NO OBLIGATION TO COMPLETE SPINOFF OR RIGHTS OFFERING. Nothing contained in this Agreement shall (i) obligate Alloy to initiate or consummate
the Spinoff, (ii) obligate Alloy or the Company to initiate or consummate the Rights Offering, or (iii) obligate Alloy or the Company to require MLF or any MLF Fund to purchase all or any of the shares of Common Stock underlying the Backstop Amount.

  
 Section 11. DEFINITIONS. For the purposes of this Agreement,
the following terms have the meanings set forth below: 
  
 “Affiliate” means, with respect to any Person, any other Person directly or indirectly controlling, controlled by or under direct or indirect common control with such Person. For purposes of this definition,
“control” when used with respect to any specified Person means the power to direct or cause the direction of the management and policies of such Person, directly or indirectly, 

  

 -13- 

 
whether through the ownership of voting securities, by Contract or otherwise, and the terms “controlling” and “controlled” have meanings
correlative of the foregoing. 
  
 “Cash and Cash Equivalents”
means cash and other liquid assets, including, but not limited to, bank deposits, paper currency and coins, negotiable money orders and checks, U.S. Treasury bills and money-market fund shares. 
  
 “Commission” means the Securities and Exchange Commission or any
governmental body or agency succeeding to the functions thereof. 
  
 “Fair
Market Value” means, with respect to any Readily Marketable Securities as of any date, the average closing price (or last sales price) as reported in The Wall Street Journal of a share or other identifiable portion of such Readily
Marketable Securities on the applicable market (as defined below) for the 5 most recent trading days occurring during the 15 calendar-day period ending on the business day immediately preceding the applicable date. For purposes hereof, the
“applicable market” shall mean that national securities exchange or automated quotation system on which the Readily Marketable Securities in question are listed or traded having the largest volume of trading in such Readily Marketable
Securities during the 30 calendar days immediately preceding the date of such determination. 
  
 “Material Adverse Effect” means any circumstance, change in or effect on the Company or the Merchandising Business that, individually or in the aggregate with any other circumstances, changes in or
effects on the Company or the Merchandising Business (i) is materially adverse to the business, affairs, assets, liabilities, results of operations or the condition (financial or otherwise) of the Company or the Merchandising Business, or (ii)
likely would materially adversely affect the ability of the Company to operate and conduct the Merchandising Business from and after the date of the Spinoff. 
  
 “Person” means an individual, a partnership, a corporation, a limited liability company, association, a joint stock company, a trust, a joint venture, an
unincorporated organization and a governmental entity or any department, agency or political subdivision thereof. 
  
 “Readily Marketable Securities” means equity and debt securities that are listed for trading on a United States exchange or automated quotation system
(which shall not include, however, the pink sheets or other similar “penny stock” market). 
  
 “Securities Act” means the Securities Act of 1933, as amended, or any similar federal law then in force. 
  
 Section 12. TERMINATION. This Agreement may be terminated at any time prior to the Closing as follows: 
  
 (a) by mutual written consent of Alloy, the Company and MLF;

  
 (b) by any of Alloy, the Company or MLF if
any governmental entity shall institute any suit or action challenging the validity or legality of, or seeking to restrain the consummation of, the transactions contemplated by this Agreement (including, without limitation, the issuance of Rights
pursuant to the Rights Offering); 
  

 -14- 

 (c) by Alloy or the Company, if MLF has breached in any material respect any
representation, warranty or covenant contained in this Agreement, provided that the Company has notified MLF of the breach, and the breach has continued without cure for a period of 15 days after the notice of such breach; 
  
 (d) by MLF, if Alloy or the Company has breached any
representation, warranty, or covenant contained in this Agreement in any material respect, provided that MLF has notified the Company and Alloy of the breach, and the breach has continued without cure for a period of 15 days after the notice of such
breach; 
  
 (e) by either Alloy or MLF if the
Spinoff is not consummated on or prior to December 31, 2005; 
  
 (f) by Alloy at any time prior to consummation of the Spinoff; and 
  
 (g) by the Company at any time after consummation of the Spinoff and prior to consummation of the Rights Offering. 
  
 Section 13. INDEMNIFICATION. 
  
 (a) (i) The Company and Alloy jointly and severally agree to
indemnify, defend and hold harmless MLF, each MLF Fund, their members, directors and officers, and any person who controls MLF or any MLF Fund within the meaning of Section 15 of the Securities Act or Section 20 of the Exchange Act, and the
successors and assigns of all of the foregoing persons, from and against any loss, damage, expense, liability or claim (including the reasonable cost of investigation) which, jointly or severally, MLF, any MLF Fund or any such person may incur under
the Securities Act, the Exchange Act, the common law or otherwise, insofar as such loss, damage, expense, liability or claim arises out of or is based upon (A) any untrue statement or alleged untrue statement of a material fact contained in the
Registration Statement (or in the Registration Statement as amended by any post effective amendment thereof by the Company) or in a Prospectus (the term Prospectus for the purpose of this Section 13 being deemed to include any preliminary prospectus
and the Prospectus as amended or supplemented by the Company), or arises out of or is based upon any omission or alleged omission to state a material fact required to be stated in either such Registration Statement or such Prospectus or necessary to
make the statements made therein not misleading, except insofar as any such loss, damage, expense, liability or claim arises out of or is based upon any untrue statement or alleged untrue statement of a material fact contained in and in conformity
with information concerning MLF or any MLF Fund furnished in writing by or on behalf of MLF or such MLF Fund to the Company expressly for use in such Registration Statement or such Prospectus or arises out of or is based upon any omission or alleged
omission to state a material fact in connection with such information required to be stated in such Registration Statement or such Prospectus or necessary to make such information not misleading, (B) any untrue statement or alleged untrue statement
made by the Company in Section 3 hereof or the failure by the Company to perform when and as required any agreement or covenant contained herein or (C) any untrue statement or alleged untrue statement made by Alloy in Section 4 hereof or the failure
by Alloy to perform when and as required any agreement or covenant contained herein. The provisions of this Section 13 shall be 

  

 -15- 

 
in addition to, rather than in lieu of, and shall not affect any rights or remedies MLF, any MLF Fund or any other such indemnitee may have pursuant to law,
contract or otherwise. 
  
 (i) If any action,
suit or proceeding (each, a “Proceeding”) is brought against MLF, any MLF Fund or any such person in respect of which indemnity may be sought against the Company or Alloy pursuant to the foregoing paragraph, MLF, such MLF Fund or such
person shall promptly notify the Company and Alloy in writing of the institution of such Proceeding and the Company or Alloy, as the case may be, shall assume the defense of such Proceeding, including the employment of counsel reasonably
satisfactory to such indemnified party and payment of all fees and expenses; provided, however, that the omission to so notify the Company or Alloy shall not relieve the Company or Alloy from any liability that the Company or Alloy may have to MLF,
such MLF Fund or any such person or otherwise, except to the extent the Company or Alloy is materially prejudiced by such omission. MLF, such MLF Fund or such person shall have the right to employ its or their own counsel in any such case, but the
fees and expenses of such counsel shall be at the expense of MLF, such MLF Fund or of such person unless the employment of such counsel shall have been authorized in writing by the Company or Alloy in connection with the defense of such Proceeding
or the Company or Alloy shall not have, within a reasonable period of time in light of the circumstances, employed counsel to defend such Proceeding or such indemnified party or parties shall have reasonably concluded that there may be defenses
available to it or them which are different from, additional to or in conflict with those available to the Company or Alloy (in which case the Company or Alloy shall not have the right to direct the defense of such Proceeding on behalf of the
indemnified party or parties), in any of which events such fees and expenses shall be borne by the Company or Alloy and paid as incurred (it being understood, however, that the Company or Alloy shall not be liable for the expenses of more than one
separate counsel (in addition to any local counsel) in any one Proceeding or series of related Proceedings in the same jurisdiction representing the indemnified parties who are parties to such Proceeding and such fees and expenses shall be
reasonable under the circumstances). The Company or Alloy shall not be liable for any settlement of any Proceeding effected without its written consent but if settled with the written consent of the Company or Alloy, the Company or Alloy agrees to
indemnify and hold harmless MLF, each MLF Fund and any such person from and against any loss or liability by reason of such settlement. Notwithstanding the foregoing sentence, if at any time an indemnified party shall have requested an indemnifying
party to reimburse the indemnified party for fees and expenses of counsel as contemplated by the second sentence of this paragraph, then the indemnifying party agrees that it shall be liable for any settlement of any Proceeding effected without its
written consent if (A) such settlement is entered into more than 60 business days after receipt by such indemnifying party of the aforesaid request, (B) such indemnifying party shall not have fully reimbursed the indemnified party in accordance with
such request prior to the date of such settlement and (C) such indemnified party shall have given the indemnifying party at least 30 days’ prior notice of its intention to settle. No indemnifying party shall, without the prior written consent
of the indemnified party, effect any settlement of any pending or threatened Proceeding in respect of which any indemnified party is or could have been a party and indemnity could have been sought hereunder by such indemnified party, unless such
settlement includes an unconditional release of such indemnified party from all liability on claims that are the subject matter of such Proceeding and does not include an admission of fault, culpability or a failure to act, by or on behalf of such
indemnified party. 
  

 -16- 

 (b) MLF shall, and shall, to the extent any MLF Fund shall have acquired Rights or Common
Stock pursuant to the provisions hereof, cause each MLF Fund to, indemnify, defend and hold harmless Alloy and the Company and pay on behalf of or reimburse them in respect of, any claims, losses or expenses, including, without limitation,
reasonable fees and expenses of counsel, which Alloy and/or the Company may suffer, sustain, or become subject to, as a result of or relating to or arising out of any breach of any representation, warranty, covenant or agreement made by MLF
contained in this Agreement. In addition, MLF shall, and shall, to the extent any MLF Fund shall have acquired Rights or Common Stock pursuant to the provisions hereof, cause each MLF Fund to, indemnify and hold harmless the Alloy, the Company, each
of its directors and officers and each underwriter (if any) and each person, if any, who controls the Company or any such underwriter within the meaning of the Securities Act or the Exchange Act, against all losses, claims, damages or liabilities,
joint or several, to which the Company, such directors and officers, underwriter, or controlling person may become subject under the Securities Act, Exchange Act, state securities or blue sky laws or otherwise, insofar as such losses, claims,
damages or liabilities (or actions in respect thereof) arise out of or are based upon any untrue statement or alleged untrue statement of a material fact contained in any registration statement under which any shares acquired pursuant to the
provisions hereof were registered under the Securities Act, any preliminary prospectus or final prospectus contained in such registration statement, or any amendment or supplement to the registration statement, or arise out of or are based upon any
omission or alleged omission to state a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company for any legal or any other expenses reasonably incurred by the Company in
connection with investigating or defending any such loss, claim, damage, liability or action, if the statement or omission was made in reliance upon and in conformity with information furnished in writing to the Company by or on behalf of MLF or any
MLF Fund specifically for inclusion in such registration statement, prospectus, amendment or supplement; provided, however, that the obligations of MLF and the MLF Funds hereunder shall be limited to an amount equal to the net proceeds received by
MLF and the MLF Funds sold as contemplated therein. The provisions of this Section 13 shall be in addition to, rather than in lieu of, and shall not affect any rights or remedies Alloy and the Company may have pursuant to law, contract or otherwise.

  
 Section 14. MISCELLANEOUS. 
  
 (a) Successors and Assigns. All covenants and
agreements in this Agreement by or on behalf of any of the parties hereto will bind and inure to the benefit of the respective successors and assigns of the parties hereto whether so expressed or not. No party may assign this agreement without the
prior written consent of the other parties, which consent shall not be withheld, conditioned or delayed unreasonably. In addition, MLF, with the consent of Alloy and the Company, which consent shall not be withheld, conditioned or delayed
unreasonably, may assign all or a portion of its rights hereunder to one or more senior executives of the Company or to one or more of MLF’s Affiliates; provided, that no such assignment shall relieve MLF of any of its obligations hereunder.

  
 (b) Survival of Representations and
Warranties. All representations and warranties contained herein or made in writing by any party in connection herewith shall survive 

  

 -17- 

 
the execution and delivery of this Agreement and the consummation of the transactions contemplated hereby. 
  
 (c) Severability. Whenever possible, each provision
of this Agreement shall be interpreted in such manner as to be effective and valid under applicable law, but if any provision of this Agreement is held to be invalid, illegal or unenforceable in any respect under any applicable law or rule in any
jurisdiction, such invalidity, illegality or unenforceability shall not affect any other provision or any other jurisdiction, but this Agreement shall be reformed, construed and enforced in such jurisdiction as if such invalid, illegal or
unenforceable provision had never been contained herein. 
  
 (d) Construction. Whenever the context requires, each term stated in either the singular or the plural shall include the singular and the plural, and pronouns stated in either the masculine, the feminine or the
neuter gender shall include the masculine, feminine and neuter. The titles and subtitles used in this Agreement are used for convenience only and are not considered in construing or interpreting this Agreement. All references to Sections and
Paragraphs refer to sections and paragraphs of this Agreement. The use of the word “including” in this Agreement shall be by way of example rather than limitation. 
  
 (e) Amendment and Waiver. The provisions of this Agreement may be amended and waived only with the
prior written consent of each of the parties hereto. 
  
 (f) Counterparts; Facsimile Signature. This Agreement may be executed simultaneously in two or more counterparts, any one of which need not contain the signatures of more than one party, but all such counterparts taken together shall
constitute one and the same Agreement. This Agreement may be executed by facsimile signature. 
  
 (g) Governing Law. This Agreement shall be governed by and construed in accordance with the internal laws of the State of New York
without reference to (i) its judicially or statutorily pronounced rules regarding conflict of laws or choice of law to the extent that the application of the law of another jurisdiction would be required thereby; (ii) where any instrument is
executed or delivered; (iii) where any payment or other performance required by any such instrument is made or required to be made; (iv) where any breach of any provision of any such instrument occurs, or any cause of action otherwise accrues; (v)
where any action or other proceeding is instituted or pending; (vi) the nationality, citizenship, domicile, principal place of business, or jurisdiction or organization or domestication of any party; (vii) whether the laws of the forum jurisdiction
otherwise would apply the laws of a jurisdiction other than the State of New York; or (viii) any combination of the foregoing. Any action, suit or proceeding initiated by either party hereto against the other party hereto under or in connection with
this letter agreement shall be brought only in a state or federal court located in the State of New York, County of New York. Each party hereto submits itself to the exclusive jurisdiction of any such court, waives any claims of forum non conveniens
and agrees that service of process may be effected on it by the means by which notices are to be given pursuant to this agreement. 
  
 (h) Notices. Any notice required or permitted to be given hereunder shall be in writing, and shall be either (i) personally
delivered, (ii) sent by U.S. certified or registered mail, return receipt requested, postage prepaid, (iii) sent by Federal Express or other reputable 

  

 -18- 

 
common carrier guaranteeing next business day delivery, (iv) by electronic mail; or (iv) by facsimile, in any event to the respective addresses of the
parties set forth below, or to such other place as any party hereto may by notice given as provided herein designate for receipt of notices hereunder. Any such notice shall be deemed given and effective upon receipt or refusal of receipt thereof by
the primary party to whom it is to be sent; provided, however, a notice delivered by electronic mail or facsimile after 5:00 PM on any day shall be deemed received on the next business day. 
  

			
	If to the Alloy or Company:	  	Alloy, Inc.
	 	  	435 Hudson Street,
	 	  	New York, New York 10014
	 	  	Attn: Chief Executive Officer
	 	  	Fax: (212) 244-4311
		
	with a copy	  	 
	(which shall not constitute notice) to:	  	Richard M. Graf
	 	  	Katten Muchin Rosenman LLP
	 	  	1025 Thomas Jefferson St, NW
	 	  	Washington, DC 20007
	 	  	Fax: (202) 339-6058
		
	If to MLF:	  	MLF Investments LLC
	 	  	455 North Indian Rocks Road, Suite B
	 	  	Belleair Bluffs, Florida 33770
	 	  	Attn: Matthew L. Feshbach
	 	  	Fax: (727) 587-0885
		
	with a copy	  	 
	(which shall not constitute notice) to:	  	Steven Wolosky
	 	  	Olshan Grundman Frome Rosenzweig
	 	  	& Wolosky LLP
	 	  	Park Avenue Tower
	 	  	65 East 55th Street
	 	  	New York, NY 10022
	 	  	Fax: (212) 451-2222

  
 (i)
This Agreement constitutes and comprises the entire agreement and understanding between parties hereto as of the date hereof with regard to the subject matter hereof and there are no other prior or contemporaneous written or oral agreements,
undertakings, promises, warranties or covenants respecting such subject matter not expressly set forth herein. Without limiting the generality of this Section 14(i) and notwithstanding anything in this Agreement to the contrary, no party is making
any representation or warranty whatsoever, oral or written, express or implied, in connection with the transactions contemplated by this Agreement other than those set forth in Sections 3, 4 or 5 of this Agreement and no party is relying on any
statement, representation or warranty, oral or written, express or implied, made by any other party except for the representations and warranties set forth in Sections 3, 4 or 5 of this Agreement. 
  

 -19- 

 (j) Costs and Expenses. The Company and Alloy shall be responsible for all
expenses incurred by it related hereto, to the Spinoff, the Rights Offering, or otherwise related to the subject matter hereof. The Company shall be responsible for any and all costs and expenses (including reasonable attorney’s fees) incurred
by MLF and the MLF Funds relating to the Spinoff and the Rights Offering or otherwise related to the subject matter hereof. 
  
 (k) Parties at Interest. This Agreement has been and is made solely for the benefit of the Company, Alloy and MLF, and to the
extent provided in Section 13 hereof the controlling persons, directors and officers referred to in such section, and their respective successors, assigns, heirs, personal representatives and executors and administrators. No other person,
partnership, association or corporation shall acquire or have any right under or by virtue of this Agreement. 
  
 (l) Resignation from Alloy’s Board. In connection with the Spinoff and the transactions contemplated hereby, Matthew L.
Feshbach, a controlling person of MLF, hereby agrees with Alloy that he shall be recommended for reelection to Alloy’s board of directors for one additional term of up to three (3) years when his current term expires in 2006, but that he shall
not be nominated for, or reelected by the Alloy board of directors at any time thereafter for, any additional term on the Alloy board. Notwithstanding the foregoing, Matthew L. Feshbach may resign from the Alloy board at any time. 
  
 * * * * * 
  

 -20- 

 IN WITNESS WHEREOF, the parties hereto have executed this Standby Purchase Agreement on the date first
written above. 
  

					
	ALLOY, INC.
			
	By:	 	 	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	dELiA*s, INC.
			
	By:	 	 	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	MLF INVESTMENTS LLC
			
	By:	 	 	 	 
	 	 	 Name:
	 	 
	 	 	 Title:
	 	 

  

					
	
	 
	Matthew L. Feshbach (for the sole purpose of evidencing his agreement to the provisions of Section 14(l) hereto.

  

 -21-Form of Registration Rights Agreement b/t dELiA*s, Inc. and MLF Investments, LLC

 Exhibit 10.10 
  
 dELiA*s, INC. 
  
 REGISTRATION RIGHTS AGREEMENT 
  
  
 THIS REGISTRATION RIGHTS AGREEMENT (this “Agreement”) is entered
into as of the          day of                         , 2005, by and
between dELiA*s, Inc., a Delaware corporation (the “Company”), and MLF Investments LLC, a Delaware limited liability company (the “Investor”). 
  
 WHEREAS, pursuant to that certain Standby Purchase Agreement of even date herewith by and among Alloy, Inc., a Delaware
corporation, the Company and the Investor (the “Purchase Agreement”), the Investor has agreed to acquire, in connection with the Rights Offering (as defined in the Purchase Agreement), certain Common Shares of the Company, and the Company
has agreed to issue to the Investor certain warrants to purchase additional Common Shares; and 
  
 WHEREAS, as an inducement for the Investor to enter into the Purchase Agreement, the Company and the Investor have agreed to enter into this Agreement. 
  
 NOW, THEREFORE, in consideration of the foregoing (incorporated herein by this reference) and the mutual promises and
covenants hereinafter set forth, the parties hereto hereby agree as follows: 
  
 1.    Certain Definitions.    As used in this Agreement, the following terms shall have the following respective meanings: 
  
 “Commission” means the Securities and Exchange Commission or
any other federal agency at the time administering the Securities Act. 
  
 “Common Shares” means shares of the Company’s common stock, par value $.001 per share. 
  
 “Exchange Act” means the Securities Exchange Act of 1934, as amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time. 
  
 “Holder” means the Investor. 
  
 “Indemnified Party” means each party entitled to indemnification under Section 7 hereof. 
  
 “Indemnifying Party” means each party required to provide indemnification under Section 7 hereof. 
  
 “Other Sellers” means any other holders of equity securities
of the Company having registration rights with respect to such equity securities. 
  
 The terms “register,” “registered” and “registration” refer to a registration effected by preparing and filing a registration statement in compliance with the
Securities Act, and the declaration or ordering of the effectiveness of such registration statement. 

 “Registration Expenses” means all expenses (excluding Selling Expenses) of the Company
and the Holder incurred in complying with Sections 2, 3, and 4 hereof, including, without limitation, all registration, qualification, listing and filing fees, printing expenses, escrow fees, fees and disbursements of counsel for the Company and one
special counsel for the Holder and Other Sellers, if any, blue sky fees and expenses, and the expense of any special audits incident to or required by any such registration (but excluding the compensation of regular employees of the Company which
shall be paid in any event by the Company). 
  
 “Registrable Securities” means (a) the Rights Offering Shares; (b) the Warrant Shares, and (c) any Common Shares of the Company issued or issuable in respect of the Rights Offering Shares or Warrant Shares
upon any subdivision, combination or reclassification of such Common Shares or any stock dividend in respect of such Common Shares; provided, however, that such Common Shares shall only be treated as Registrable Securities if and so
long as they (i) have not been sold to or through a broker or dealer or underwriter in a public distribution or a public securities transaction; (ii) have not been sold in a transaction exempt from the registration and prospectus delivery
requirements of the Securities Act under Section 4(1) thereof so that all transfer restrictions and restrictive legends with respect thereto are removed upon the consummation of such sale, or (iii) are not eligible for sale without
restriction pursuant to Rule 144(k) under the Securities Act or any successor rule thereto. 
  
 “Rights Offering” has the meaning assigned thereto in the Purchase Agreement. 
  
 “Rights Offering Shares” means Common Shares acquired by the Holder in the Rights Offering, including Common Shares acquired by the
Holder in connection with its subscription for and exercise of rights with respect to Backstop Amount (as defined in the Purchase Agreement). 
  
 “Securities Act” means the Securities Act of 1933, as amended, or any similar federal statute and the rules and regulations of the
Commission thereunder, all as the same shall be in effect at the time. 
  
 “Selling Expenses” means all underwriting discounts, selling commissions and share transfer taxes applicable to the securities registered by the Holder and all fees and disbursements of counsel of the Holder (other than the
fees and disbursements of one special counsel for the Holder and all Other Sellers, if any, as described in the definition of “Registration Expenses” above). 
  
 “Warrants” means those warrants to purchase Common Shares issued to the Holder by the Company pursuant to
Section 9 of the Purchase Agreement. 
  
 “Warrant
Shares” means the Common Shares issued or issuable upon exercise of the Warrants. 
  
 2.    Demand Registration. 
  
 2.1    Subject to the conditions of this Section 2, if the Company shall receive a written request from
the Holder that the Company file a registration statement under the Securities Act covering the registration of Registrable Securities for an offering with expected proceeds of at least Five Million dollars ($5,000,000), the Company will, as soon as
practicable, use commercially 

  

 2 

 
reasonable efforts to effect such registration (including, without limitation, the execution of an undertaking to file post-effective amendments, appropriate
qualification under applicable Blue Sky or other state securities laws and appropriate compliance with applicable regulations issued under the Securities Act and any other governmental requirements or regulations) as may be so requested and as would
permit or facilitate the sale and distribution of all or such portion of such Registrable Securities as are specified in such request. Subject to the limitations set forth in Section 2.3 below, equity securities of Other Sellers or of
the Company may be included in a registration statement effected pursuant to a registration request made by the Holder in connection with this Section 2.1. 
  
 2.2    The Company shall not be obligated to take any action to effect any registration
pursuant to this Section 2: 
  
 (a)    after the Company has effected two (2) such registrations pursuant to this Section 2 and such registrations have been declared or ordered effective; 
  
 (b)    during the period starting with
the date of filing of, and ending on the date ninety (90) days immediately following the effective date of any registration statement pertaining to securities of the Company (other than a registration of securities in a Rule 145 transaction, a
registration on a Form S-3 pertaining to a non-underwritten offering, or with respect to registration relating to an employee benefit plan on a Form S-8), provided that the Company is actively employing in good faith commercially reasonable efforts
to cause such registration statement to become effective; or 
  
 (c)    if the Holder proposes to dispose of shares of Registrable Securities that may be registered immediately on Form S-3 pursuant to a request made under Section 3 below. 

 
 2.3    If a registration pursuant to
this Section 2 is for a registered public offering involving an underwriting, the right of the Holder to registration pursuant to this Section 2 shall be conditioned upon the Holder’s participation in the underwriting
arrangements required by this Section 2 and the inclusion of the Holder’s Registrable Securities in the underwriting, to the extent requested, to the extent provided herein. 
  
 (a)    The Company shall (together with
the Holder and Other Sellers proposing to distribute their securities through such underwriting, if any) enter into and perform its obligations under an underwriting agreement in customary form with the managing underwriter selected or approved for
such underwriting by the Company (which managing underwriter shall be reasonably acceptable to the Holder). Notwithstanding any other provision of this Section 2, if the managing underwriter advises the Company in writing that marketing
factors require a limitation of the number of shares to be underwritten, then the Company shall so advise the Holder and any such Other Sellers of the number of shares of Registrable Securities that may be included in the registration and
underwriting, and such number of shares shall be allocated first to the Holder, and to the extent that after the Holder has included all of the Registrable Securities it desires to include in the registration, any excess shares shall be allocated
among the Other Sellers. Any Registrable Securities excluded or withdrawn from such underwriting shall be withdrawn from the registration. 
  

 3 

 (b)    If any Demand Registration is an underwritten offering with
respect to any issue of Registrable Securities, the Holder will select the investment banker or bankers and manager or managers of nationally recognized standing to administer the offering subject to the consent of the Company, such consent not to
be unreasonably withheld. 
  
 (c)    If the Holder of Registrable Securities disapproves of the terms of the underwriting, the Holder may elect to withdraw therefrom by written notice to the Company and the managing underwriter. The Registrable
Securities and/or other securities so withdrawn shall also be withdrawn from registration. 
  
 2.4    If with respect to the last registration permitted to be exercised by the Holder of Registrable Securities
under Section 2.1, the Holder is unable to register all of its Registrable Securities because of the operation of Section 2.3(a) hereof, the Holder shall be entitled to require the Company to effect one additional registration to afford
the Holders an opportunity to register all such Registrable Securities. Such additional registration shall again be subject to the provisions of this Section 2; provided, that under no circumstances will the Holder be entitled to more than
three (3) registrations in the aggregate pursuant to the provisions of this Section 2. 
  
 3.    Form S-3 Registration. 
  
 3.1    If the Holder requests that the Company file a registration statement on Form S-3 (or any successor form to
Form S-3) for a public offering of Registrable Securities in excess of One Million Dollars ($1,000,000), and the Company is a registrant entitled to use Form S-3 to register the Registrable Securities for such an offering, the Company shall use
commercially reasonable efforts to cause such Registrable Securities to be registered on such form for the offering. Registrations effected pursuant to this Section 3 shall not be counted as demands for registration or registrations
effected pursuant to other provisions of this Agreement. The Holder shall have the right to request in writing unlimited registrations of Registrable Securities on Form S-3, which request or requests shall (i) specify the number of Registrable
Securities intended to be sold or disposed of and the holders thereof and (ii) state the intended method of disposition of such Registrable Securities, and upon receipt of any such request, the Company shall use all commercially reasonable
efforts to promptly effect the registration under the Securities Act of the Registrable Securities so requested to be registered and the Company will use commercially reasonable efforts to qualify for Form S-3 registration or a similar
short-form registration. If the registration is for an underwritten offering, the provisions of Section 2.3 shall be applicable; provided, that in such circumstances, all references in such Section 2.3 shall be deemed references to
Section 3. 
  
 3.2    Notwithstanding the foregoing, the Company shall not be obligated to take any action pursuant to this Section 3  
  

(a)    after the Company has effected two (2) such registrations pursuant to this Section 3 in any twelve
(12) month period and such registrations pursuant to this Section 3, and such registrations have been declared or ordered effective; or 
  
 (b)    if the Registrable Securities for which the Holder is requesting registration are then eligible for sale under
Rule 144 of the Securities Act, and such 

  

 4 

 
Registrable Securities reasonably can be disposed within a ninety (90) day period, based on historical trading volume. 
  
 4.    “Piggyback” Registration.

  
 4.1    If at any time or
from time to time, the Company shall determine to register any of its securities for reasons other than (i) a registration relating solely to employee benefit plans, (ii) a registration relating solely to a Commission Rule 145 transaction,
or (iii) a registration on Form S-4 or S-8 or any successor form to such forms, the Company will: 
  
 (a)    give the Holder written notice at least forty-five (45) days prior to the filing of any such registration;
and 
  
 (b)    include in such
registration (and any related qualification under blue sky laws or other compliance), and in any underwriting involved therein, all the Registrable Securities specified in a written request made within forty-five (45) days after receipt of such
written notice from the Company by the Holder. 
  
 4.2    If the registration of which the Company gives notice is for a registered public offering involving an underwriting, the Company shall so advise the Holder as a part of the written notice given pursuant to
Section 4.1 and the provisions of Section 2.3 shall apply, provided however, if the managing underwriter advises the Company in writing that marketing factors require a limitation of the number of shares to be underwritten,
then the Company shall so advise the Holder and any Other Sellers of the number of shares of Registrable Securities that may be included in the registration and underwriting shall be allocated first to the Other Seller(s) which initiated the request
for registration, and then among the Holder and the remaining Other Sellers in proportion, as nearly as practicable, to the respective amounts of shares held by the Holder and such Other Sellers at the time of filing the registration statement.

  
 5.    Expenses of
Registration.    Except as specifically provided herein, all Registration Expenses shall be borne by the Company. All Selling Expenses incurred in connection with any registrations hereunder shall be borne by the Holder and
Other Sellers, if any, of the securities so registered pro rata on the basis of the number of shares so registered. 
  
 6.    Registration Procedures.    In the case of each registration, qualification or compliance effected by
the Company pursuant to this Agreement, the Company will keep the Holder advised in writing as to the initiation, qualification, compliance and completion of each registration. At its expense the Company will: 
  
 6.1    Prepare and file with the
Commission a registration statement with respect to such securities and use commercially reasonable efforts to cause such registration statement to become and remain effective for at least one hundred eighty (180) days or, if earlier, until the
distribution described in the registration statement has been completed; provided, however, that in the case of any registration of Registrable Securities on Form S-3 which are intended to be offered on a continuous or delayed basis,
such period shall be extended, if necessary, to keep the registration statement effective until all such Registrable Securities are sold, provided that if Rule 415, or any successor rule under the Securities Act, permits an offering on a continuous
or delayed basis, and provided further that if applicable rules under the Securities Act governing the obligation to file a 

  

 5 

 
post-effective amendment permit, in lieu of filing a post-effective amendment which (i) includes any prospectus required by Section 10(a)(3) of the
Securities Act; or (ii) reflects facts or events representing a material or fundamental change in the information set forth in the registration statement, the incorporation by reference of information required to be included in (i) and
(ii) above shall be contained in periodic reports filed pursuant to Section 13 or 15(d) of the Exchange Act in the registration statement. 
  
 6.2    Promptly, furnish to the Holder and to the underwriters of the securities being registered such reasonable
number of copies of the registration statement, preliminary prospectus, final prospectus and such other documents as Holder and/or such underwriters may reasonably request in order to facilitate the public offering of such securities. 
  
 6.3    Promptly, prepare and file with
the Commission such amendments and supplements to such registration statement and the prospectus used in connection with such registration statements as may be necessary to comply with the provisions of the Securities Act with respect to the
disposition of all securities covered by such registration statement. 
  
 6.4    At any time when a prospectus relating to the registration statement is required to be delivered under the Securities Act, notify the Holder of the happening of any event as a result of
which the prospectus included in such registration statement, as then in effect, includes an untrue statement of a material fact or omits to state a material fact required to be stated therein or necessary to make the statements therein not
misleading or incomplete in the light of the circumstances then existing, and at the request of any such seller, prepare and furnish to such seller a reasonable number of copies of each supplement to or an amendment of such prospectus as may be
necessary so that, as thereafter delivered to the purchaser of such shares, such prospectus shall not include an untrue statement of a material fact or omit to state a material fact required to be stated therein or necessary to make the statements
therein not misleading or incomplete in the light of the circumstances then existing. 
  
 6.5    Use commercially reasonable efforts to register and qualify the securities covered by such registration
statement under such other securities or Blue Sky laws of such jurisdictions as shall be reasonably requested by the Holder, provided that the Company shall not be required in connection therewith or as a condition thereto to qualify to do business
or to file a general consent to service of process in any such states or jurisdictions. 
  
 6.6    Promptly cause all such Registrable Securities to be listed on each securities exchange or automated quotation
system on which similar securities issued by the Company are then listed. 
  
 6.7    Provide a transfer agent and registrar for all Registrable Securities and a CUSIP number for all such Registrable Securities, in each case not later than the effective date of such
registration. 
  
 6.8    Make
available for inspection by the Holder, any underwriter participating in any disposition pursuant to such registration and any attorney or accountant retained by any the Holder or such underwriter, all financial and other records, pertinent
corporate documents and properties of the Company, and cause the Company’s officers and directors to supply all information 

  

 6 

 
reasonably requested by such Holder, underwriter, attorney or accountant in connection with such registration statement; provided, however,
that such Holder, underwriter, attorney or accountant shall agree to hold in confidence and trust all information so provided. 
  
 6.9    Furnish to the Holder: 
  

(a)    in the case of an underwritten public offering, a copy of any opinion of counsel for the Company provided to
the underwriters participating in such offering, dated the effective date of the registration statement; 
  
 (b)    in the case of an underwritten public offering, a copy of any “comfort” letters provided to the
underwriters participating in such offering and signed by the Company’s independent public accountants who have examined and reported on the Company’s financial statements included in the registration statement, to the extent permitted by
the standards of the American Institute of Certified Public Accountants or other relevant authorities; and 
  
 (c)    a copy of all documents filed with and all correspondence from or to the Commission in connection with any such
offering other than non-substantive cover letters and the like. 
  
 6.10    Otherwise use commercially reasonable efforts to comply with all applicable rules and regulations of the Commission, and make available to its security holders, as soon as reasonably
practicable, an earnings statement covering the period of at least twelve (12) months, but not more than eighteen (18) months, beginning with the first (1st) month after the effective date of the Registration Statement, which earnings statement shall satisfy the provisions of Section 11(a) of the
Securities Act. 
  
 6.11    In
connection with the preparation and filing of each Registration Statement under this Agreement, the Company will give the Holder and its underwriters, if any, and its respective counsel and accountants, the opportunity to review such registration
statement, each prospectus included therein or filed with the Commission, and each amendment thereof or supplement thereto, and will give Holder such access to the Company’s books and records and such opportunities to discuss the business of
the Company with its officers, its counsel and the independent public accountants who have certified the Company’s financial statements, as reasonably shall be necessary, in the opinion of Holder or such underwriters or their respective
counsel, in order to conduct a reasonable and diligent investigation within the meaning of the Securities Act. 
  
 7.    Indemnification. 
  
 7.1    To the extent permitted by law, the Company will indemnify the Holder, the Holder’s officers, directors,
shareholders, partners and members, and each person controlling the Holder within the meaning of Section 15 of the Securities Act, with respect to which registration, qualification or compliance has been effected pursuant to this Agreement, and
each underwriter, if any, and each person who controls any underwriter within the meaning of Section 15 of the Securities Act, against all expenses, claims, losses, damages or liabilities (or actions in respect thereof), including any of the
foregoing incurred in settlement of any litigation, commenced or 

  

 7 

 
threatened, arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any registration statement,
prospectus, offering circular or other document, or any amendment or supplement thereto, incident to any such registration, qualification or compliance, or based on any omission (or alleged omission) to state therein a material fact required to be
stated therein or necessary to make the statements therein, in light of the circumstances in which they were made, not misleading, or any violation by the Company of any rule or regulation promulgated under the Securities Act applicable to the
Company in connection with any such registration, qualification or compliance, and the Company will reimburse the Holder, each of the Holder’s officers and directors, and each person controlling the Holder, each such underwriter and each person
who controls any such underwriter, for any legal and any other expenses reasonably incurred in connection with investigating, preparing or defending any such claim, loss, damage, liability or action, as such expenses are incurred, provided that the
Company will not be liable in any such case to the extent that any such claim, loss, damage, liability or expense arises out of or is based on any untrue statement or omission or alleged untrue statement or omission, made in reliance upon and in
conformity with written information furnished to the Company by an instrument duly executed by the Holder, controlling person or underwriter for use therein; and provided further, however, that the Company shall not be required to indemnify any
Person against any liability arising from any untrue or misleading statement or omission contained in any preliminary prospectus if such deficiency is corrected in the final prospectus or for any liability which arises out of the failure of any
Person to deliver a prospectus as required by the Securities Act. 
  
 7.2    To the extent permitted by law, the Holder will, if Registrable Securities held by the Holder are included in the securities as to which such registration, qualification or compliance is
being effected, indemnify the Company, each of its directors and officers, each underwriter, if any, of the Company’s securities covered by such a registration statement, each person who controls the Company or such underwriter within the
meaning of Section 15 of the Securities Act, and each Other Seller, each of its officers and directors and each person controlling such Other Seller within the meaning of Section 15 of the Securities Act, against all claims, losses,
damages and liabilities (or actions in respect thereof) arising out of or based on any untrue statement (or alleged untrue statement) of a material fact contained in any such registration statement, prospectus, offering circular or other document,
or any omission (or alleged omission) to state therein a material fact required to be stated therein or necessary to make the statements therein not misleading, and will reimburse the Company, such Other Sellers, such directors, officers, persons,
underwriters or control persons for any legal or any other expenses reasonably incurred in connection with investigating or defending any such claim, loss, damage, liability or action, as such expenses are incurred, in each case to the extent, but
only to the extent, that such untrue statement (or alleged untrue statement) or omission (or alleged omission) is made in such registration statement, prospectus, offering circular or other document in reliance upon and in conformity with written
information furnished to the Company by an instrument duly executed by the Holder for use therein; provided that in no event shall any indemnity under this Section 7.2 exceed the net proceeds received by the Holder in such
registration; and provided further, however, that Holder shall not be required to indemnify any Person against any liability arising from any untrue or misleading statement or omission contained in any preliminary prospectus if such
deficiency is corrected in the final prospectus or for any liability which arises out of the failure of any Person to deliver a prospectus as required by the Securities Act. 
  
 7.3    Each Indemnified Party shall give notice to each Indemnifying Party promptly
after such Indemnified Party has actual knowledge of any claim as to which indemnity may be 

  

 8 

 
sought, and shall permit the Indemnifying Party to assume the defense of any such claim or any litigation resulting therefrom, provided that counsel for the
Indemnifying Party, who shall conduct the defense of such claim or litigation, shall be approved by the Indemnified Party (whose approval shall not be unreasonably withheld), and the Indemnified Party may participate in such defense at such
party’s expense; provided, however, that an Indemnified Party (together with all other Indemnified Parties which may be represented without conflict by one counsel) shall have the right to retain one separate counsel, with the
fees and expenses to be paid by the Indemnifying Party, if representation of such Indemnified Party by the counsel retained by the Indemnifying Party would be inappropriate due to actual or potential differing interests between such Indemnified
Party and any other party represented by such counsel in such proceeding. The failure of any Indemnified Party to give notice as provided herein shall not relieve the Indemnifying Party of its obligations under this Section 7, unless the
failure to give such notice is materially prejudicial to an Indemnifying Party’s ability to defend such action. No Indemnifying Party, in the defense of any such claim or litigation, shall, except with the consent of each Indemnified Party,
consent to entry of any judgment or enter into any settlement which does not include as an unconditional term thereof the giving by the claimant or plaintiff to such Indemnified Party of a release from all liability in respect to such claim or
litigation. Notwithstanding the foregoing, such Indemnified Party shall have the right to employ its own counsel in any such litigation, proceeding or other action if (i) the employment of such counsel has been authorized by the Indemnifying
Party, in its sole and absolute discretion, or (ii) the named parties in any such claims (including any impleaded parties) include any such Indemnified Party and the Indemnified Party and the Indemnifying Party shall have been advised in
writing (in suitable detail) by counsel to the Indemnified Party either (A) that there may be one or more legal defenses available to such Indemnified Party which are different from or additional to those available to the Indemnifying Party, or
(B) that there is a conflict of interest by virtue of the Indemnified Party and the Indemnifying Parties having common counsel, in any of which events, the legal fees and expenses of a single counsel for all Indemnified Parties with respect to
each such claim, defense thereof, or counterclaims thereto shall be borne by Indemnifying Party. 
  
 7.4    If the indemnification provided for in this Section 7 is held by a court of competent jurisdiction
to be unavailable to an Indemnified Party with respect to any claim, loss, damage, liability or action referred to therein, then the Indemnifying Party, in lieu of indemnifying such Indemnified Party hereunder, shall contribute to the amount paid or
payable by such Indemnified Party as a result of such claim, loss, damage, liability or action in such proportion as is appropriate to reflect the relative fault of the Indemnifying Party on the one hand and the Indemnified Party on the other in
connection with the actions that resulted in such claims, loss, damage, liability or action, as well as any other relevant equitable considerations. The relative fault of the Indemnifying Party and of the Indemnified Party shall be determined by
reference to, among other things, whether the untrue or alleged untrue statement of a material fact or the omission to state a material fact related to information supplied by the Indemnifying Party or by the Indemnified Party and the parties’
relative intent, knowledge, access to information and opportunity to correct or prevent such statement or omission. 
  
 7.5    The Company and the Holder agree that it would not be just and equitable if contribution pursuant to this
Section 7 were based solely upon the number of entities from whom contribution was requested or by any other method of allocation which does not take account of the equitable considerations referred to above in this
Section 7. The amount paid or payable by an Indemnified Party as a result of the losses, claims, damages and liabilities referred to above in this 

  

 9 

 
Section 7 shall be deemed to include any legal or other expenses reasonably incurred by such Indemnified Party in connection with investigating
or defending any such action or claim, subject to the provisions of this Section 7. Notwithstanding the provisions of this Section 7, the Holder shall not be required to contribute any amount or make any other payments under
this Agreement which in the aggregate exceed the net proceeds (after selling expenses) received by the Holder. No person guilty of fraudulent misrepresentation (within the meaning of the Securities Act) shall be entitled to contribution from any
person who was not guilty of such fraudulent misrepresentation. 
  
 8.    Information by Holder.    The Holder shall furnish to the Company such information regarding the Holder, the Registrable Securities held by it and the distribution proposed by the Holder
as the Company may request in writing and as shall be required in connection with any registration, qualification or compliance hereunder. 
  
 9.    Rule 144 Reporting.    With a view to making available the benefits of certain rules and regulations
of the Commission which may at any time permit the sale of the Registrable Securities to the public without registration, after such time as a public market exists for the Common Shares of the Company, the Company agrees to use commercially
reasonable efforts to: 
  
 9.1    Make and keep public information available, as those terms are understood and defined in Rule 144 under the Securities Act, at all times after the effective date that the Company becomes subject to the reporting
requirements of the Securities Act or the Exchange Act; 
  
 9.2    File with the Commission in a timely manner all reports and other documents required of the Company under the Securities Act and the Exchange Act (at any time after it has become subject to such reporting
requirements); and 
  
 9.3    So long as the Holder owns any Registrable Securities, to furnish to the Holder forthwith upon request a written statement by the Company as to its compliance with the reporting requirements of said Rule 144
(at any time after ninety (90) days after the effective date of the first registration statement filed by the Company for an offering of its securities to the general public), and of the Securities Act and the Exchange Act (at any time after it
has become subject to such reporting requirements), a copy of the most recent annual or quarterly report of the Company, and such other reports and documents of the Company and other information in the possession of or reasonably obtainable by the
Company as the Holder may reasonably request in availing itself of any rule or regulation of the Commission allowing the Holder to sell any such securities without registration. 
  
 10.    Transfer of Registration Rights.    The registration rights granted
under this Agreement may be not be transferred by the Holder, except (i) to an Affiliate of the Holder (as defined in Rule 405 of the Securities Act), or (ii) to a third party upon prior written consent of the Company, which consent may be
withheld in the Company’s sole discretion (and in each case, only in connection with the transfer of the underlying Registrable Securities). 
  
 11.    Termination of Registration Rights.    The registration rights afforded to the Holder under this
Agreement shall terminate, if not previously exercised, upon the earlier to occur of (i) the seventh (7th) anniversary of the date hereof; or (ii) whenever the Holder has Registrable Securities consisting of less than one percent (1%) of the outstanding voting shares of the Company. 
  

 10 

 12.    Limitation on Registration Rights.    Nothing
contained in this Agreement shall create any obligation on the part of the Company to register under the Securities Act any securities that are not Registrable Securities. 
  
 13.    Miscellaneous. 
  
 13.1    Assignment.    Except as otherwise provided herein,
the terms and conditions of this Agreement shall inure to the benefit of and be binding upon the respective successors and assigns of the parties hereto. 
  
 13.2    Specific Performance.    The parties hereto hereby declare that it is impossible to
measure in money the damages which will accrue to a party hereto or to his or its successors or assigns by reason of a failure to perform any of the obligations under this Agreement and agree that the terms of this Agreement shall be specifically
enforceable. If any party hereto or his or its successors or assigns institutes any action or proceeding to specifically enforce the provisions hereof, any person against whom such action or proceeding is brought hereby waives the claim or defense
therein that such party or such personal representative has an adequate remedy at law, and such person shall not offer in any such action or proceeding the claim or defense that such remedy at law exists. 
  
 13.3    Governing
Law.    This Agreement shall be governed by and construed under the laws of New York without regard to the provisions thereof relating to choice of law or conflicts of law. 
  
 13.4    Attorneys’
Fees.    If any suit or action is instituted to enforce any provision in this Agreement, the prevailing party in such dispute shall be entitled to recover from the losing party all fees, costs and expenses of enforcing any
right of such prevailing party under or with respect to this Agreement, including without limitation, such reasonable fees and expenses of attorneys and accountants, which shall include, without limitation, all fees, costs and expenses of appeals.

  
 13.5    Counterparts.    This Agreement may be executed in any number of counterpart signature pages, each of which shall be deemed to be an original and all of which together shall constitute
one and the same original instrument. Delivery of executed signature pages to this Agreement may be by facsimile transmission with confirmation of received transmission or other electronic means that faithfully reproduces the original with the same
effect as if a manually signed original were personally delivered. 
  
 13.6    Notices.    All notices, consents or other communications required or permitted to be given under this Agreement shall be in writing and shall be deemed to have
been duly given (i) when delivered in hand or by courier; (ii) five (5) business days after being mailed by first class certified mail, return receipt requested, postage prepaid; or (iii) three (3) business days after being
sent by a reputable overnight delivery service, postage or delivery charges prepaid, to the parties at their respective addresses. All notices to be given hereunder shall be sent to the Investor or the Company at their respective addresses specified
on the signature page hereto. Any party may change its address for notice and the address to which copies must be sent by giving notice of the 

  

 11 

 
new addresses to any of the other parties in accordance with this Section 13.6, except that any such change of address notice shall not be
effective unless and until received. 
  
 13.7    Severability.    If one or more provisions of this Agreement are held to be unenforceable under applicable law, portions of such provisions, or such provisions in their entirety, to the
extent necessary, shall be severed from this Agreement, and the balance of this Agreement shall be enforceable in accordance with its terms. 
  
 13.8    Amendment and Waiver.    Any provision of this Agreement may be amended with the
written consent of the Company and the Holder. Any amendment or waiver effected in accordance with this paragraph shall be binding upon the Holder and the Company. 
  
 13.9    Delays or Omissions.    No delay or omission to
exercise any right, power or remedy accruing to any party to this Agreement, upon any breach or default of the other party, shall impair any such right, power or remedy of such non-breaching party nor shall it be construed to be a waiver of any such
breach or default, or an acquiescence therein, or of or in any similar breach or default thereafter occurring; nor shall any waiver of any single breach or default be deemed a waiver of any other breach or default theretofore or thereafter
occurring. Any waiver, permit, consent or approval of any kind or character on the part of any party of any breach or default under this Agreement, or any waiver on the part of any party of any provisions or conditions of this Agreement, must be
made in writing and shall be effective only to the extent specifically set forth in such writing. All remedies, either under this Agreement, or by law or otherwise afforded to any Holder, shall be cumulative and not alternative. 
  
 [Signature Page To Follow] 
  

 12 

 IN WITNESS WHEREOF, the parties have executed this Registration Rights Agreement as of the date first
above written. 
  

									
	 COMPANY:
	 	 	 	dELiA’s, INC.
					
	 	 	 	 	 	 	By:	 	 
	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 Title:

  

			
	 Company’s Notice Address:
	  	 
		
	 345 Hudson Street
	  	 with a copy (which shall not constitute notice) to:

	 New York, NY 10014
	  	 Richard M. Graf

	 Attn: Chief Executive Officer
	  	 Katten Muchin Rosenman LLP

	 Fax:
(212)             -            
	  	 1025 Thomas Jefferson St, NW

	 	  	 Washington, DC 20007

	 	  	 Fax: (202) 339-6058

  

									
			
	 INVESTOR:
	 	 	 	MLF INVESTMENTS, LLC
					
	 	 	 	 	 	 	 By:
	 	                                      
                                        
                 
	 	 	 	 	 	 	 Name:

	 	 	 	 	 	 	 Title:

  

			
		
	 Investor Notice Address:
	  	 
		
	 MLF Investments LLC
	  	 with a copy (which shall not constitute notice) to:

	 2401 West Bay Drive, Suite 124
	  	 Steven Wolosky

	 Largo, FL 33770
	  	 Olshan Grundman Frome Rosenzweig

	 Attn: Matthew L. Feshbach
	  	     & Wolosky LLP

	 Fax: (727) 587-0885
	  	 Park Avenue Tower

	 	  	 65 East 55th Street

	 	  	 New York, NY 10022

	 	  	 Fax: (212) 451-2222

  
  
  
 [Signature Page to Registration Rights Agreement] 
  

 13

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