Document:

Second Supplemental Indenture, dated as of December 5, 2005

 Exhibit 4.13 
  
  
  

 SECOND SUPPLEMENTAL INDENTURE 
  
 Between 
 ALLOY, INC. 
 and 
 DEUTSCHE BANK TRUST COMPANY AMERICAS 
 as Trustee 
 5.375% CONVERTIBLE
SENIOR DEBENTURES DUE 2023 
 Dated as of December 5, 2005 
  

 SECOND SUPPLEMENTAL INDENTURE, dated as of December 5, 2005 (this “Second
Supplemental Indenture”), between ALLOY, INC., a corporation duly organized and existing under the laws of the State of Delaware, having its principal office at 151 West 26th Street, 11th Floor, New York, NY 10001 (the
“Company”) and DEUTSCHE BANK TRUST COMPANY AMERICAS, a New York banking corporation, as Trustee (the “Trustee”), having its principal corporate trust office at Deutsche Bank Trust Company Americas, Trust &
Security Services, 60 Wall Street, 27th Floor, New York, NY 10005. 
 RECITALS OF THE COMPANY 
 WHEREAS, the Company and the Trustee are parties to that certain Indenture, dated as of July 23, 2003 (the “Indenture”), pursuant
to which the Company issued the Securities, as amended by the First Supplemental Indenture thereto, dated September 26, 2005; and 
 WHEREAS, the Company currently contemplates effecting a Spin-Off of dELiA*s, Inc., a Delaware corporation that is an indirect, wholly-owned subsidiary of the Company (“dELiA*s”) by means of a pro-rata distribution to its
shareholders of all of the shares of common stock of dELiA*s owned by the Company as of a to be determined record date in a ratio of one share of dELiA*s common stock for each two shares of Common Stock outstanding on such record date (the
“Spinoff’); and WHEREAS, based on the prices at which the Common Stock and shares of dELiA*s common stock to be issued in the Spinoff likely will trade, the Company currently expects that, in accordance with the provisions of
Section 12.4(k), following consummation of the Spinoff there will not be any adjustment to the Conversion Price and instead, upon conversion of the Securities, the Securities will be convertible into shares of Common Stock and shares of dELiA*s
common stock; and 
 WHEREAS, the Company wishes to effect certain modifications to the Indenture in accordance with the provisions of
Section 7.2 in order to provide, inter alia, (i) that following any Spin-Off in which there is no adjustment to the Conversion Price and instead the Securities become convertible into shares of Common Stock and shares of capital
stock of, or similar equity interests in, one or more of the Company’s Subsidiaries, certain changes in the capitalization of such Subsidiaries following such Spin-Off, such as those resulting from a stock split or reverse stock split, will
result in proportional changes in the number of shares of capital stock of, or similar equity interests in, such Subsidiaries that would be issuable upon conversion of the Securities and (ii) for modification of the formula used to determine
when Holders are entitled to exercise their conversion rights after the Company effects a Spin-Off in which there is no adjustment to the Conversion Price and instead the Securities become convertible into shares of Common Stock and shares of
capital stock of, or similar equity interests in, one or more of the Company’s Subsidiaries; and 

 WHEREAS, the Company, by appropriate corporate action, has determined to amend the provisions of the
Indenture in the manner described herein and has taken all acts necessary to duly authorize, execute and deliver this SECOND SUPPLEMENTAL Indenture and to constitute this SECOND SUPPLEMENTAL Indenture a legal, valid and binding agreement of the
Company, enforceable against it in accordance with the terms herein; and 
 WHEREAS, in accordance with the provision of Section 7.2,
the Holders have adopted a resolution approving this Second Supplemental Indenture at a meeting of the Holders of a majority of the aggregate principal amount of the Outstanding Securities at which a quorum was present by the vote of Holders of a
majority of the Outstanding Securities present and voting at such meeting. 
 NOW, THEREFORE, THIS SECOND SUPPLEMENTAL INDENTURE

 WITNESSETH: 
 ARTICLE 1 
 AMENDMENT 
 Section 1.1. Amendments. The Indenture is hereby amended as follows: 
  

	 	(A)	Section l2.l(a)(i) is deleted in its entirety and replaced with the following: 

 “(i) during any Conversion Period, if the Market Price of the Common Stock for at least 20 Trading Days in the 30 consecutive Trading
Day period ending on the last day of the preceding Fiscal Quarter (the “Measurement Period”) was more than 110% of the Conversion Price in effect on such 30th Trading Day; provided, however, that if the Company has effected a
Spin-Off and as a result of the provisions of Section 12.4(k) such Spin-Off did not result in an adjustment to the Conversion Price but rather, the Holders became entitled to receive, upon conversion of the Securities, shares of Common Stock
and shares of capital stock, or similar equity interests in, one or more of the Company’s Subsidiaries (the “Subsidiary Shares”), such right of conversion may be exercised during any Conversion Period if the sum of (A) the
Market Price of the Common Stock for the Measurement Period plus (B) the Market Price of the aggregate number of Subsidiary Shares (or fraction thereof) issued to the holders of Common Stock on the effective date of the Spin-Off in respect of
one share of Common Stock (as adjusted pursuant to the provisions of Section 12.4(o) to reflect any stock split, reverse stock split or similar transaction occurring after the effective date of the Spin-Off) (such sum 

  

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being referred to herein as the “Combined Market Price”) was more than 110% of the Conversion Price in effect on such 30th Trading
Day;” 
  

	 	(B)	The definition of “Conversion Value” in Section 12.1(b) is deleted and replaced in its entirety with the following: 

 ““Conversion Value”, on any day, means the product of the Market Price for the Common Stock as of such day
multiplied by the then-current Conversion Rate; provided, however, that if the Company has effected a Spin-Off and as a result of the provisions of Section 12.4(k) such Spin-Off did not result in an adjustment to the Conversion
Price but rather, the Holders became entitled to receive, upon conversion of the Securities, shares of Common Stock and Subsidiary Shares, “Conversion Value” shall mean, on any day, the product of the Combined Market Price as of such day
multiplied by the then- current Conversion Rate.” 
  

	 	(C)	The provisions of Section 12.4(o) are deleted in their entirety and replaced with the following: 

 “(o) If (i) the Company shall effect a Spin-Off and (ii) as a result of the provisions of Section 12.4(k) such
Spin-Off does not result in an adjustment to the Conversion Price but rather, the Holders become entitled to receive, upon conversion of the Securities, shares of Common Stock and shares of capital stock of, or similar equity interests in, one or
more of the Company’s Subsidiaries, then: 
 (A) if the outstanding shares of capital stock of, or similar equity
interests in, such of the Company’s Subsidiaries (or one or more components thereof) shall be subdivided into a greater number of shares, the number of shares of capital stock of, or similar equity interests in, such of the Company’s
Subsidiaries (or the components thereof as to which such subdivision shall have been effected) issuable upon any conversion of a Security shall be proportionately increased; and conversely 
 (B) if the outstanding shares of capital stock of, or similar equity interests in, such of the Company’s Subsidiaries (or one or more
components thereof) shall be combined into a smaller number of shares, the number of shares of capital stock of, or similar equity interests in, such of the Company’s Subsidiaries (or the components thereof as to which such combination shall
have been effected) issuable upon any conversion of a Security shall be proportionately reduced; 
 such increase or reduction, as
applicable, to become effective immediately after the opening of business on the day following the day upon which such subdivision or combination becomes effective.” 
  

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 ARTICLE 2 
 MISCELLANEOUS 
 Section 2.1. General. For all purposes of this SECOND SUPPLEMENTAL
Indenture, except as otherwise expressly provided or unless the context otherwise requires: 
 (a) capitalized terms used
herein without definition shall have the meanings specified in the Indenture; 
 (b) all references herein to Articles
and Sections, unless otherwise specified, refer to the corresponding Articles and Sections of the Indenture; and 
 (c) the
terms “hereof,” “herein,” “hereby,” “hereto,” “hereunder” and “herewith” refer to this SECOND SUPPLEMENTAL Indenture. 
 Section 2.2. Effectiveness. This SECOND SUPPLEMENTAL Indenture shall become effective on and as of the date the counterparts hereto shall
have been executed and delivered by each of the parties hereto. 
 Section 2.3. Governing Law. THIS SECOND SUPPLEMENTAL INDENTURE
SHALL BE GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE LAWS OF THE STATE OF NEW YORK. 
 Section 2.4. Counterparts. This
SECOND SUPPLEMENTAL Indenture may be signed in any number of counterparts, each of which shall be an original, with the same effect as if the signatures thereto and hereto were upon the same instrument. 
 Section 2.5. Severability. In case any provision in this SECOND SUPPLEMENTAL Indenture shall be invalid, illegal or unenforceable, the
validity, legality and enforceability of the remaining provisions shall not in any way be affected or impaired thereby. 
 Section 2.6.
Ratification. Except as expressly amended or supplemented hereby, each provision of the Indenture shall remain in full force and effect and, as amended or supplemented hereby, the Indenture is in all respects agreed to, ratified and confirmed
by each of the Company and the Trustee. 
 Section 2.7. Trustee. The Trustee accepts the trusts created by the Indenture, as
supplemented by this SECOND SUPPLEMENTAL Indenture, and agrees to perform the same upon the terms and conditions of the Indenture, as amended and supplemented by this SECOND SUPPLEMENTAL Indenture. 
  

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 Section 2.8. Recitals. The recitals contained herein shall be taken as statements of the
Company, and the Trustee assumes no responsibility for their correctness. The Trustee makes no representations as to the validity or sufficiency of this SECOND SUPPLEMENTAL Indenture. 
 Section 2.9. Reaffirmation. The parties hereto make and reaffirm as of the date of execution of this SECOND SUPPLEMENTAL Indenture all of
their respective representations, covenants and agreements set forth in the Indenture. 
 Section 2.10. Third-Party Beneficiaries.
Nothing in this SECOND SUPPLEMENTAL Indenture, express or implied, shall give to any Person, other than the parties hereto and their successors under the Indenture and the Holders of the Securities, any benefit or any legal or equitable right,
remedy or claim under the Indenture or this SECOND SUPPLEMENTAL Indenture. 
 Section 2.11. Trust Indenture Act. If any
provisions hereof limit, qualify or conflict with a provision of the Trust Indenture Act of 1939, as may be amended from time to time (the “TIA”), required under the TIA to be a part of and govern this SECOND SUPPLEMENTAL Indenture,
the latter provision shall control. If any provision hereof modifies or excludes any provision of the TIA that may be so modified or excluded, the latter provision shall be deemed to apply to this SECOND SUPPLEMENTAL Indenture as so modified or
excluded, as the case may be. 
 Section 2.12. Unity. All provisions of this SECOND SUPPLEMENTAL Indenture shall be deemed to be
incorporated in, and made a part of, the Indenture; and the Indenture, as amended and supplemented by this SECOND SUPPLEMENTAL Indenture, shall be read, taken and construed as one and the same instrument. 
 [END OF PAGE] 
 [SIGNATURE PAGE
FOLLOWS] 
  

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 IN WITNESS WHEREOF, the parties hereto have caused this SECOND SUPPLEMENTAL Indenture to be duly executed
all as of the day and year first above written. 
  

			
	 ALLOY, INC.

		
	By:	 	/S/ GINA DIGIOIA
		 	 Name: Gina DiGioia
 Title:   Secretary

	
	DEUTSCHE BANK TRUST COMPANY AMERICAS, AS TRUSTEE AND NOT IN ITS INDIVIDUAL
CAPACITY.
		
	By:	 	  
		 	 Name:
 Title:

  

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 IN WITNESS WHEREOF, the parties hereto have caused this SECOND SUPPLEMENTAL Indenture to be duly executed
all as of the day and year first above written. 
  

			
	 ALLOY, INC.

		
	By:	 	  
		 	 Name:
 Title:

	
	DEUTSCHE BANK TRUST COMPANY AMERICAS, AS TRUSTEE AND NOT IN ITS INDIVIDUAL
CAPACITY.
		
	By:	 	/s/ Annie Jagharspanyan
		 	 Name: Annie Jagharspanyan
 Title:   Assistant Vice PresidentEmployment Offer Letter dated February 21, 2001, Gina DiGioia

 Exhibit 10.36 
 

 
 Alloy Online, Inc. 
 Offer Letter 
 February 21,2001 
 Gina DiGioia 
 210 East 88th Street, Apt. 3A 
 New York, NY 10128 
 Dear Gina: 
 I am very pleased to
provide you with the terms and conditions of your employment by Alloy Online, Inc. (the “Company”). The following sets forth the proposed terms and conditions of our offer to employ you. We hope that you choose to join the Company and look
forward to a mutually beneficial relationship. This offer is contingent upon the clearance of a background check and positive verification of reference checks. 
 1. Position: Your initial position will be V.P. General Counsel based out of the Company’s main office located in New York City, New York. Your location is subject to change at the discretion
of the Company. As the Company’s employee, we expect you to devote your full time and energies to the business and affairs of the Company, and to perform any and all duties and responsibilities associated with this position and as may be
reasonably assigned to you by the Company. In addition to your primary duties, you shall perform such other services for the Company as may be reasonably assigned to you from time to time by the Company. Your performance will be reviewed on a
periodic basis as long as you remain employed by the Company. 
 2. Starting Date/Nature of Relationship: If you accept this
offer, your employment with the Company shall commence on April 2nd, 2001. Except as expressly set forth herein, no provision of this letter shall be construed to create an express or implied employment contract, or a promise of employment for a specific period of time and you agree that,
except as expressly set forth herein, your employment is at-will and either party may terminate the relationship with or without cause. 

 Compensation and Benefits: Your initial base pay shall be $2,307.69 per week ($120,000 on an
annualized basis). This level of base pay will be reviewed at least annually. In addition, you will be eligible for the management bonus program of up to 25% of your annual base salary. This bonus program is based on your performance and the
Company’s performance to be evaluated at the close of each fiscal year. 
 In addition, you shall be entitled to receive options to
purchase 25,000 shares of the Company’s Common Stock, par value $0.01 per share, pursuant to the Company’s Restated 1997 Employee, Director and Consultant Stock Plan. Such options shall be exercisable at a purchase price per share
equal to the closing price of the Company’s Common Stock on the NASDAQ market on the business day prior to the date of your commencement of employment with the Company. To the extent permissible under the Internal Revenue Code, such options
will be granted as Incentive Stock Options and any options that cannot be granted as Incentive Stock Options will be granted as Non-Qualified Options. The options shall have the following vesting schedule: 6,250 shares shall vest one year
after your first day of employment, 6,250 shares shall vest two years after your first day of employment, 6,250 shares shall vest three years after your first day of employment, and the remaining 6,250 shares shall vest four
years after your first day of employment. The options shall have terms of ten years. 
 In addition to your compensation, you will be
entitled to receive the various benefits offered by the Company to its employees. Benefits offered may be modified or changed from time to time at the discretion of the Company. Where a particular benefit is subject to a formal plan, eligibility to
participate in and receive any particular benefit of the plan is governed solely by the applicable plan document. Should you ever have any questions, you should ask Beth Stankard, the Company’s Human Resources representative, for a copy of the
applicable plan document. 
 4. Confidentiality: The Company considers the protection of its confidential information,
proprietary materials and goodwill to be extremely important. Consequently, as a condition of this offer of employment and your subsequent employment, you are required to sign the Non-Competition and Confidentiality Agreement (the
“Agreement”) enclosed with this letter. 
 5. Miscellaneous: This letter, together with the Agreement, constitutes
our entire offer regarding the terms and conditions of your employment by the Company. It supersedes any prior agreements, or other promises or statements (whether oral or written) regarding the offered terms of employment. The terms of your
employment shall be governed by the law of the State of New York. By accepting this offer of employment, you agree that any action, demand, claim or counterclaim concerning any aspect of your employment relationship with the Company shall be
resolved by a judge alone, and you waive and forever renounce your right to a trial before a civil jury. 
  

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 You may accept this offer of employment and the terms and conditions hereof by signing the enclosed
additional copy of this letter and the Agreement, which execution will evidence your agreement with the terms and conditions set forth herein and therein. This offer will expire on February 23, 2001 unless accepted by you prior to such
date. 
 I am delighted to offer you the opportunity to join our Company, and we look forward to your joining us. 
 The following issues were approved with this offer of employment; vacation time granted an additional week for a total of 4 weeks paid vacation per fiscal year,
professional development seminars will be paid for by the company with prior management approval and a two week vacation at the end of June beginning of July 2000, one week paid one week unpaid. 
  

			
	ALLOY ONLINE, INC.
		
	By:	 	 /s/ Beth Stankard

		 	 Beth Stankard –Vice President, Human Resources

	
	 Accepted and Agreed:

		
	By:	 	 /s/ Gina DiGioia

		 	Gina DiGioia, Esq.

 Date: 4.02.01 
  

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