Document:

Supplement Indenture entered into between our company and The Bank of NY

 Exhibit 4.5.3 
  

 THE WET SEAL, INC. 
 as Issuer 
 and 
 THE BANK OF NEW YORK 
 as Trustee and Collateral Agent 
  

 THIRD SUPPLEMENTAL INDENTURE

 Dated as of December 28, 2006 
  

 Secured Convertible Notes Due 2012 
  

 THIRD SUPPLEMENTAL INDENTURE (this “Supplemental Indenture”), dated as of
December 28, 2006, between The Wet Seal, Inc., a corporation duly organized and existing under the laws of the State of Delaware, as Issuer (the “Company”), having its principal executive offices at 26972 Burbank, Foothill
Ranch, California 92610, and The Bank of New York, a New York banking corporation, as Trustee (in such capacity, the “Trustee”) and Collateral Agent (in such capacity, the “Collateral Agent”). Capitalized terms used
herein and not otherwise defined have the meanings assigned to those terms in the Indenture. 
 RECITALS OF THE COMPANY 
 The Company, the Trustee and the Collateral Agent executed and delivered that certain Indenture, dated as of January 14, 2005, as amended by that
First Supplemental Indenture dated as of March 1, 2006 and by that Second Supplemental Indenture dated as of June 21, 2006 (the “Indenture”), to provide for the issuance of the Company’s Secured Convertible Notes Due
2012 (each a “Security” and collectively, the “Securities”). 
 Section 9.02 of the Indenture permits
the Company and the Trustee to enter into an indenture or indentures supplemental to the Indenture for the purpose of adding any provisions to or changing in any manner or eliminating any of the provisions of the Indenture with the Consent of the
Majority Holders by Act of said Holders. 
 The Company seeks to enter into this Supplemental Indenture for the purpose of allowing the
Company to (a) purchase from the Holders, in a single transaction or a series of transactions, all or a portion of the Company’s outstanding Securities and (b) repurchase shares of Common Stock, from time to time, in open market
purchases and/or privately negotiated transactions, up to an aggregate amount not to exceed Twenty Five Million Dollars ($25,000,000), such repurchases to be in addition to the repurchases of the Common Stock permitted pursuant to the Second
Supplemental Indenture referred to above, and requests that the Trustee execute this Supplemental Indenture pursuant to Section 9.02. 
 The Company has received the valid written consent of the Majority Holders, which consent authorizes the implementation of the amendments to the Indenture set forth in this Supplemental Indenture. All conditions precedent provided for in
the Indenture relating to this Supplemental Indenture have been complied with. 
 NOW, THEREFORE, THIS SUPPLEMENTAL INDENTURE WITNESSETH:

 It is mutually agreed, for the benefit of the Company and the equal and proportionate benefit of all Holders of the Securities, as follows:

 ARTICLE I 
 Amendments 
 Section 1.01. Amendments to the Indenture. Section 10.13 of the Indenture shall be amended by
adding the following language at the end of such section: “and, except further that the Company shall be permitted to purchase from the Holders, in a single transaction or a series of transactions, all or a portion of the outstanding Securities
and to repurchase Common 

 
Stock, in open market purchases and/or privately negotiated transactions, up to an aggregate amount not to exceed Twenty Five Million Dollars ($25,000,000),
such repurchases to be in addition to the repurchases of Common Stock otherwise permitted in this Section 10.13.” 
 ARTICLE II

 Miscellaneous 
 Section 2.01. Effect of this Supplemental Indenture. Upon the execution of this Supplemental Indenture, the Indenture shall be modified only in accordance herewith, and this Supplemental Indenture shall form a part of the
Indenture for all purposes; and every Holder of Securities heretofore or hereafter authenticated and delivered under the Indenture shall be bound hereby. 
 Section 2.02. Confirmation of the Indenture and the Securities. Except as amended hereby, the Indenture and the Securities are in all respects ratified and confirmed and all their terms shall remain in
full force and effect. From and after the effectiveness of this Supplemental Indenture, any reference to the Indenture shall mean the Indenture as so amended by this Supplemental Indenture. 
 Section 2.03. Concerning the Trustee. The Trustee assumes no duties, responsibilities or liabilities by reason of this Supplement Indenture
other than as set forth in the Indenture. 
 Section 2.04. Governing Law; Jurisdiction; Jury Trial. All questions concerning the
construction, validity, enforcement and interpretation of this Supplemental Indenture shall be governed by the internal laws of the State of New York, without giving effect to any choice of law or conflict of law provision or rule (whether of the
State of New York or any other jurisdictions) that would cause the application of the laws of any jurisdictions other than the State of New York. Each party hereby irrevocably submits to the exclusive jurisdiction of the state and federal courts
sitting in The City of New York, Borough of Manhattan, for the adjudication of any dispute hereunder or in connection herewith or with any transaction contemplated hereby or discussed herein, and hereby irrevocably waives, and agrees not to assert
in any suit, action or proceeding, any claim that it is not personally subject to the jurisdiction of any such court, that such suit, action or proceeding is brought in an inconvenient forum or that the venue of such suit, action or proceeding is
improper. Each party hereby irrevocably waives personal service of process and consents to process being served in any such suit, action or proceeding by mailing a copy thereof to such party at the address for such notices to it under the Indenture
and agrees that such service shall constitute good and sufficient service of process and notice thereof. Nothing contained herein shall be deemed to limit in any way any right to serve process in any manner permitted by law. EACH PARTY HEREBY
IRREVOCABLY WAIVES ANY RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION OF ANY DISPUTE HEREUNDER OR IN CONNECTION WITH OR ARISING OUT OF THIS SUPPLEMENTAL INDENTURE.  
 Section 2.05. Effective Date of this Supplemental Indenture. This Supplemental Indenture shall be effective pursuant to Section 9.04 of
the Indenture immediately upon execution by the Company and delivery to and execution by the Trustee of this Supplemental Indenture. 

 Section 2.06. Counterparts. This Supplemental Indenture may be executed in two or more
identical counterparts, all of which shall be considered one and the same agreement and shall become effective when counterparts have been signed by each party and delivered to the other party; provided that a facsimile signature shall be considered
due execution and shall be binding upon the signatory thereto with the same force and effect as if the signature were an original, not a facsimile signature. 
 Section 2.07. Headings. The headings of this Supplemental Indenture are for convenience of reference and shall not form part of, or affect the interpretation of, this Supplemental Indenture. 
 Section 2.08. Severability. If any provision of this Supplemental Indenture shall be invalid or unenforceable in any jurisdiction, such
invalidity or unenforceability shall not affect the validity or enforceability of the remainder of this Supplemental Indenture in that jurisdiction or the validity or enforceability of any provision of this Supplemental Indenture in any other
jurisdiction. 
 Section 2.09. Further Assurances. Each party shall do and perform, or cause to be done and performed, all such
further acts and things, and shall execute and deliver all such other agreements, certificates, instruments and documents, as the other party may reasonably request in order to carry out the intent and accomplish the purposes of this Supplemental
Indenture and the consummation of the transactions contemplated hereby. 
 Section 2.10. No Strict Construction. The language
used in this Supplemental Indenture will be deemed to be the language chosen by the parties to express their mutual intent, and no rules of strict construction will be applied against any party. 
 Section 2.11. Responsibility for Recitals, Etc. The recitals herein shall be taken as the statements of the Company, and the Trustee assumes
no responsibility for the accuracy thereof. 
 [signature page follows] 

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

			
	 THE WET SEAL, INC.

		
	 By:
	 	 /s/ John Luttrell

		 	 Name: John Luttrell
 Title: CFO and
Secretary

	
	THE BANK OF NEW YORK, as Trustee and Collateral Agent
		
	 By:
	 	 /s/ Geovanni Barris

		 	 Name: Geovanni Barris
 Title: Vice
PresidentForm of Restricted Stock Agreement

 EXHIBIT 10.26 
 RESTRICTED STOCK AWARD AGREEMENT 
 UNDER THE WET SEAL, INC. 
 2005 STOCK INCENTIVE PLAN 
 THIS
RESTRICTED STOCK AWARD AGREEMENT (the “Agreement”), made as of the      day of
                    , 2006 (the “Grant Date”) by and between The Wet Seal, Inc. (the “Company”) and
                             (the “Participant”), evidences the grant by the Company
of a stock award of restricted stock (the “Restricted Stock”) to the Participant and the Participant’s acceptance of the Restricted Stock in accordance with the provisions of The Wet Seal, Inc. 2005 Stock Incentive Plan (the
“Plan”). Capitalized terms that are not defined in this Agreement have the same meeting as set forth in the Plan. 
 NOW,
THEREFORE, the Company and the Participant agree as follows: 
 1. Basis for Award. 
 The award of Restricted Stock is made under the Plan pursuant to Section 9 thereof for services rendered to the Company by the Participant.

 2. Stock Awarded. 
 (a) The Company hereby awards to the Participant, in the aggregate, an award of              shares of Stock (the “Award”) which shall be subject to the
conditions and restrictions set forth in the Plan and this Agreement. 
 (b) Shares of Restricted Stock shall be evidenced by book-entry
registration with the Company’s transfer agent, subject to such stop-transfer orders and other terms deemed appropriate by the Committee to reflect the restrictions applicable to such Restricted Stock. Notwithstanding the foregoing, if any
certificate is issued in respect of such Restricted Stock, at the sole discretion of the Committee, such certificate shall be registered in the name of the Participant and shall bear an appropriate legend referring to the terms, conditions and
restrictions applicable to this Award, substantially in the following form: 
 “THE TRANSFERABILITY OF THIS CERTIFICATE AND THE
COMMON STOCK REPRESENTED HEREBY ARE SUBJECT TO THE TERMS AND CONDITIONS (INCLUDING FORFEITURE) CONTAINED IN THE RESTRICTED STOCK AWARD AGREEMENT DATED AS OF
                    , 2006, ENTERED INTO BETWEEN THE REGISTERED OWNER AND THE WET SEAL, INC.” 
 If a certificate is issued with respect to the Restricted Stock, the Committee may require that the certificate evidencing such shares be held in custody by the Company
until the restrictions thereon shall have lapsed and that the Participant deliver a stock power, endorsed in blank, 

 
relating to the shares covered by this Award. At the expiration of the restrictions, the Company shall instruct the transfer agent to release the shares from
the restrictions applicable to such Restricted Stock, subject to the terms of the Plan and applicable law or, in the event that a certificate has been issued, redeliver to the Participant (or his or her legal representative, beneficiary or heir)
share certificates for the shares deposited with it without any legend except as otherwise provided by the Plan, this Agreement or applicable law. During the period that the Participant holds the Restricted Stock, the Participant shall have the
right to receive dividends on and to vote the Restricted Stock while it is subject to restriction, except as otherwise provided by the Plan. If the Restricted Stock is forfeited, in whole or in part, the Participant will assign, transfer and deliver
any evidence of the Restricted Stock to the Company and cooperate with the Company to reflect such forfeiture. By accepting this Award, the Participant acknowledges that the Company does not have an adequate remedy in damages for the breach by the
Participant of the conditions and covenants set forth in this Agreement and agrees that the Company is entitled to and may obtain an order or a decree of specific performance against the Participant issued by any court having jurisdiction.

 (c) Except as provided in the Plan or this Agreement, prior to vesting as provided in Section 3 of this Agreement, the shares will be
forfeited by the Participant and all of the Participant’s rights to such stock shall immediately terminate without any payment or consideration by the Company, in the event of any sale, assignment, transfer, hypothecation, pledge or other
alienation of such Restricted Stock made or attempted, whether voluntary or involuntary, and if involuntary whether by process of law in any civil or criminal suit, action or proceeding, whether in the nature of an insolvency or bankruptcy
proceeding or otherwise. Notwithstanding the foregoing, Participant may transfer the Restricted Stock to his Immediate Family Members (or to trusts or partnerships or limited liability companies established for such family members); provided,
that, (i) such transfer is for no consideration, (ii) the Restricted Stock shall continue to be subject to the terms, conditions and restrictions herein and (iii) such transfer is effected through such procedures as the
Committee may establish from time to time. 
  

	 	3.	Vesting. 

 The restrictions set forth in this
Agreement will lapse and the Restricted Stock will vest as follows: 
 (a) With respect
to 33- 1/3% of the shares of Restricted Stock, the restrictions will lapse and the shares will vest upon the
first date on which both of the following requirements are satisfied: (1) the Participant has provided Continuous Service from the Grant Date through the first anniversary of the Grant Date; and (2) the average Fair Market Value of a share
of Stock is at least $7.00 per share during a period of twenty consecutive business days on which the Participant is employed by the Company and that is during the period beginning on the first anniversary of the Grant Date and ending on the fifth
anniversary of the Grant Date. 
 (b) With respect to 33- 1/3% of the shares of Restricted Stock, the restrictions will lapse and the shares will vest upon the first date on
which both of the following requirements are satisfied: (1) the Participant has provided Continuous Service from the Grant Date through the second anniversary of the Grant Date; and (2) the average Fair Market Value of a share of Stock is
at least $8.00 per share during a period of twenty consecutive business days on which the Participant is employed by the Company and that is during the period beginning on the second anniversary of the Grant Date and ending on the fifth anniversary
of the Grant Date. 
  

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 (c) With respect to 33- 1/3% of the shares of Restricted Stock, the restrictions will lapse and the shares will vest upon the first date on
which both of the following requirements are satisfied: (1) the Participant has provided Continuous Service from the Grant Date through the third anniversary of the Grant Date; and (2) the average Fair Market Value of a share of Stock
reaches at least $9.00 per share during a period of twenty consecutive business days on which the Participant is employed by the Company and that is during the period beginning on the third anniversary of the Grant Date and ending on the fifth
anniversary of the Grant Date. 
 (d) Notwithstanding the foregoing, if the Participant’s Continuous Service terminates as a
result of the Participant’s death or permanent and total disability (within the meaning of Section 22(e) of the Internal Revenue Code) (either of the foregoing, a “Termination Event”) prior to the fifth anniversary of the
Grant Date, then for purposes of applying Sections 3(a), (b) and (c) above, the Participant will be treated as having Continuous Service through the anniversary of the Grant Date next following the Termination Event and any shares that
have not vested as of such anniversary will then be forfeited. If the Participant’s Continuous Service terminates for a reason other than a Termination Event before all of the Restricted Shares have vested, any shares of Restricted Stock that
are unvested as of the date of such termination will then be forfeited. 
 (e) If a Change in Control occurs on a date that is during the
Participant’s Continuous Service and also during the period between the Grant Date and the fifth anniversary of the Grant Date, all Restricted Stock that is then unvested will then become vested without regard to the Fair Market Value of the
Stock. 
 (f) Any Restricted Shares that have not vested in accordance with the foregoing provisions of this Section 3 on or before the
fifth anniversary of the Grant Date will be forfeited on that date. 
 4. Company; Participant. 
 (a) The term “Company” as used in this Agreement with reference to service shall include the Company and its Subsidiaries, as
appropriate. 
 (b) Whenever the word “Participant” is used in any provision of this Agreement under circumstances where the
provision should logically be construed to apply to the beneficiaries, the executors, the administrators, or the person or persons to whom the Restricted Stock may be transferred by will or by the laws of descent and distribution, the word
“Participant” shall be deemed to include such person or persons. 
 5. Adjustments. 
 The Award may be adjusted as provided for in Section 12 of the Plan. 
  

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 6. Compliance with Law. 
 Notwithstanding any of the provisions hereof, the Company will not be obligated to issue or transfer any Stock to the Participant hereunder, if the
issuance or transfer of such Stock shall constitute a violation by the Participant or the Company of any provisions of any law or regulation of any governmental authority. Any determination in this connection by the Committee shall be final, binding
and conclusive. The Company will take all appropriate steps, including, to the extent necessary, the filing of an appropriate registration statement at its sole expense, such that Participant may sell the Stock upon the lapse of the restrictions set
forth herein, subject to the Company’s insider trading policies. 
 7. No Right to Continued Service. 
 Nothing in this Agreement or in the Plan shall confer upon the Participant any right to continue as an employee or otherwise in the service of the Company
or shall interfere with or restrict in any way the rights of the Company or its stockholders, which are hereby expressly reserved, to remove the Participant as an employee or otherwise terminate the services of or discharge the Participant at any
time for any reason whatsoever, with or without cause. Except as provided herein, Participant acknowledges and agrees that the continued vesting of the Restricted Stock granted hereunder is premised upon his provision of future services with the
Company and the vesting of such Restricted Stock shall not accelerate upon his termination of service for any reason except as specifically provided herein. 
 8. Representations and Warranties of Participant. 
 The Participant represents and warrants to
the Company that: 
 (a) Agrees to Terms of the Plan. The Participant has received a copy of the Plan and has
read and understands the terms of the Plan and this Agreement, and agrees to be bound by their terms and conditions. In the event of a conflict or inconsistency between the terms and provisions of the Plan and the provisions of this Agreement, the
Plan shall govern and control. The Participant acknowledges that there may be adverse tax consequences upon the vesting of the Restricted Stock or disposition of the shares of Stock once vested, and that the Participant should consult a tax adviser
prior to such time. 
 (b) Cooperation. The Participant agrees to sign such additional documentation as may reasonably be required
from time to time by the Company. 
 9. Taxes. 
 The Participant agrees that, to the extent required by law, at such times as reasonably determined by the Committee, the Participant shall pay to the Company (in cash, or to the extent permitted by the Committee,
shares of Stock held by the Participant for at least six (6) months, the Fair Market Value of which on the date of payment is equal to the amount of the Participant’s tax withholding liability) any federal, state or local taxes of any kind
required by law to be withheld with respect to the Restricted Stock. 
  

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 10. Notice. 
 Every notice or other communication relating to this Agreement shall be in writing, and shall be mailed to or delivered to the party for whom it is intended at such address as may from time to time be designated by it
in a notice mailed or delivered to the other party as herein provided; provided, that, unless and until some other address be so designated, all notices or communications by the Participant to the Company shall be mailed or delivered
to the Company at its principal executive office, and all notices or communications by the Company to the Participant may be given to the Participant personally or may be mailed to him or her at his or her address as recorded in the records of the
Company. Notwithstanding the foregoing, at such time as the Company institutes a policy for delivery of notice by e-mail, notice may be given in accordance with such policy. 
 11. Governing Law. 
 This
Agreement shall be construed and interpreted in accordance with the laws of the State of California without regard to its conflict of law principles. 
 12. Arbitration. 
 Any controversy or claim arising out of or relating to this Agreement, its
enforcement or interpretation, or because of an alleged breach, default, or misrepresentation in connection with any of its provisions, shall be submitted to arbitration, to be held in Orange County, California, in accordance with the Employment
Rules and Procedures of the Judicial Arbitration and Mediation Service (“JAMS”) then in effect. If any arbitration or action at law or in equity, or any motion, is brought to enforce, interpret, or rescind this Agreement, except as
required under governing law, including Armendariz v. Foundation Health Psychcare Servs., Inc., 24 Cal.4th 83 (2000), each party shall pay its own expenses of arbitration and the expenses of the arbitrator (including compensation) shall be
borne equally by the parties. 
 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written. 
  

			
	THE WET SEAL, INC.
		
	 By:
	 	  

	
	 PARTICIPANT

	  
  

  

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