Document:

EXHIBIT 4.7

                      RESALE REGISTRATION RIGHTS AGREEMENT

                                      among

                                   ALLOY, INC.

                                       and

                              LEHMAN BROTHERS INC.
                            CIBC WORLD MARKETS CORP.
                           JP MORGAN SECURITIES, INC.
                         SG COWEN SECURITIES CORPORATION

                            DATED AS OF JULY 23, 2003

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                                TABLE OF CONTENTS
                                                                           PAGE

1. Definitions...............................................................1
2. Shelf Registration........................................................3
3. Additional Amounts........................................................5
4. Registration Procedures...................................................6
5. Registration Expenses....................................................12
6. Indemnification and Contribution.........................................13
7. Rule 144A................................................................16
8. Participation in Underwritten Registrations..............................16
9. Miscellaneous............................................................16

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         RESALE REGISTRATION RIGHTS AGREEMENT, dated as of July 23, 2003, among
Alloy, Inc., a Delaware corporation (the "COMPANY"), and Lehman Brothers
Inc.,  CIBC  World  Markets  Corp.,  JP  Morgan  Securities  Inc.  and SG  Cowen
Securities Corporation (collectively, the "INITIAL PURCHASERS"). Pursuant to the
Purchase  Agreement,  dated July 17,  2003,  among the  Company  and the Initial
Purchasers  (the "PURCHASE  AGREEMENT"),  the Initial  Purchasers have agreed to
purchase from the Company  $65,000,000  ($78,000,000  if the Initial  Purchasers
exercise  their  option  thereunder  in full) in aggregate  principal  amount of
Company's  5.375%   Convertible  Senior  Debentures  due  August  1,  2023  (the
"DEBENTURES"). The Debentures will be convertible into fully paid, nonassessable
shares of common stock, par value $0.01 (the "CONVERSION SHARES") of the Company
on the terms,  and subject to the  conditions,  set forth in the  Indenture  (as
defined  herein).  To induce the Initial  Purchasers to purchase the Debentures,
the  Company  has agreed to provide  the  registration  rights set forth in this
Agreement pursuant to Section 3(k) of the Purchase Agreement.

The parties hereby agree as follows:

1. Definitions. As used in this Agreement, the following capitalized terms shall
have the following meanings:

         ADDITIONAL  AMOUNT  PAYMENT  DATE:  Each  Interest  Payment  Date.  For
purposes of this Agreement, if no Debentures are outstanding, "Additional Amount
Payment Date" shall mean each of August 1 and February 1.

         ADDITIONAL AMOUNTS: As defined in Section 3(a) hereof.

         AFFILIATE: As such term is defined in Rule 405 under the Securities
Act.

         AGREEMENT: This Resale Registration Rights Agreement, as amended,
modified or otherwise supplemented from time to time in accordance with the
terms hereof.

         BLUE SKY APPLICATION: As defined in Section 6(a) hereof.

         BROKER-DEALER: Any broker or dealer registered under the Exchange Act.

         BUSINESS DAY: A day other than a Saturday or Sunday or any day on which
banking  institutions  in New York City are  authorized  or  obligated by law or
executive order to close.

         CLOSING DATE: The date of this Agreement.

         COMMISSION: Securities and Exchange Commission.

         COMPANY: As defined in the preamble hereto.

         CONVERSION SHARES: As defined in the preamble hereto.

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         DEBENTURES: As defined in the preamble hereto.

         EFFECTIVENESS PERIOD: As defined in Section 2(a)(iii) hereof.

         EFFECTIVENESS TARGET DATE: As defined in Section 2(a)(ii) hereof.

         EXCHANGE ACT: Securities Exchange Act of 1934, as amended, and the
rules and regulations of the Commission thereunder.

         HOLDER: A Person who owns, beneficially or otherwise, Transfer
Restricted Securities.

         INDEMNIFIED HOLDER: As defined in Section 6(a) hereof.

         INDENTURE: The Indenture, dated as of July 23, 2003, between the
Company, and Deutsche Bank Trust Company Americas, as trustee, pursuant to which
the Debentures are to be issued, as such Indenture is amended, modified or
supplemented from time to time in accordance with the terms thereof.

         INITIAL PURCHASERS: As defined in the preamble hereto.

         INTEREST PAYMENT DATE: As defined in the Indenture.

         MAJORITY OF HOLDERS:  Holders  holding over 50% in aggregate  principal
amount of the Debentures  outstanding at the time of  determination in question;
provided,  however,  that,  for the  purpose  of this  definition,  a holder  of
Conversion  Shares that constitute  Transfer  Restricted  Securities when issued
upon  conversion  of Debentures  shall be deemed to hold an aggregate  principal
amount of Debentures (in addition to the principal  amount of Debentures held by
such holder)  equal to the product of (x) the number of such  Conversion  Shares
held by such holder and (y) the prevailing  conversion  price,  such  prevailing
conversion price as determined in accordance with Section 12 of the Indenture.

         NASD: National Association of Securities Dealers, Inc.

         PERSON:  An  individual,   partnership,   corporation,   unincorporated
organization, limited liability company, trust, joint venture or a government or
agency or political subdivision thereof.

         PURCHASE AGREEMENT: As defined in the preamble hereto.

         PROSPECTUS:  The prospectus included in a Shelf Registration Statement,
as  amended  or  supplemented  by any  prospectus  supplement  and by all  other
amendments  thereto,  including  post-effective  amendments,  and  all  material
incorporated by reference into such Prospectus.

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         QUALIFYING  HOLDER:  A Holder that has  delivered  to the Company (i) a
duly completed  Questionnaire by the Questionnaire  Deadline and (ii) such other
information as the Company reasonably may require to be delivered to it pursuant
to the provisions of Section 2(b).

         QUESTIONNAIRE: As defined in Section 2(b) hereof.

         QUESTIONNAIRE DEADLINE: As defined in Section 2(b) hereof.

         RECORD HOLDER: With respect to any Additional Amount Payment Date, each
Person who is a Holder on the record date with respect to the  Interest  Payment
Date on which such Additional  Amount Payment Date shall occur. In the case of a
Holder of shares of Conversion  Shares,  "Record  Holder" shall mean each Person
who is a  Holder  of  Conversion  Shares  that  constitute  Transfer  Restricted
Securities  on the 15th day  preceding the relevant  Additional  Amount  Payment
Date.

         REGISTRATION DEFAULT: As defined in Section 3(a) hereof.

         SALE NOTICE: As defined in Section 4(e) hereof.

         SECURITIES ACT: Securities Act of 1933, as amended, and the rules and
resolutions of the Commission thereunder.

         SHELF FILING DEADLINE: As defined in Section 2(a)(i) hereof.

         SHELF REGISTRATION STATEMENT: As defined in Section 2(a)(i) hereof.

         SUSPENSION NOTICE. As defined in Section 4(c) hereof.

         SUSPENSION PERIOD. As defined in Section 4(b)(i) hereof.

         TIA:  Trust  Indenture  Act of 1939,  as  amended,  and the  rules  and
regulations of the Commission thereunder, in each case, as in effect on the date
the Indenture is qualified under the TIA.

         TRANSFER  RESTRICTED  SECURITIES:  Each  Debenture and each  Conversion
Share issued upon  conversion of the Debentures  until the earliest to occur of:
(i) the date on which such  Debenture  or such  Conversion  Shares  issued  upon
conversion has been effectively registered under the Securities Act and disposed
of in accordance with the Shelf Registration  Statement;  (ii) the date on which
such  Debenture or such  Conversion  Shares issued upon  conversion (A) has been
transferred  in compliance  with Rule 144 under the Securities Act or (B) may be
sold or transferred by a person who is not an Affiliate of the Company  pursuant
to Rule 144 under the  Securities  Act (or any other similar  provision  then in
force) without any volume or manner of sale  restrictions  thereunder;  or (iii)
the  date  on  which  such  Debenture  or such  Conversion  Shares  issued  upon
conversion  ceases  to  be  outstanding  (whether  as a  result  of  redemption,
repurchase and cancellation, conversion or otherwise).

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         TRUSTEE: As defined in Section 1.1 of the Indenture.

2. Shelf Registration.

         (a) The Company shall:

                  (i) not later than 90 days after the date  hereof  (the "SHELF
FILING DEADLINE"),  cause to be filed a registration  statement pursuant to Rule
415  under  the  Securities  Act  (together  with any  amendments  thereto,  and
including  any  documents   incorporated  by  reference   therein,   the  "SHELF
REGISTRATION  STATEMENT"),  which Shelf Registration Statement shall provide for
resales of all Transfer  Restricted  Securities held by Holders that have timely
provided the information required pursuant to the terms of Section 2(b) hereof;

                  (ii) use its best  efforts  to cause  the  Shelf  Registration
Statement  to be declared  effective by the  Commission  not later than 180 days
after the date hereof (the "EFFECTIVENESS TARGET DATE"); and

                  (iii)  keep  the  Shelf  Registration  Statement  continuously
effective,  supplemented  and amended as required by the  provisions  of Section
4(b)  hereof to the extent  necessary  to ensure  that (A) it is  available  for
resales by the Holders of Transfer Restricted Securities entitled to the benefit
of this Agreement and (B) conforms with the  requirements  of this Agreement and
the Securities  Act, for a period (the  "EFFECTIVENESS  PERIOD") of the earliest
of:

                           (A) two years  following  the last  date of  original
issuance of Debentures;

                           (B) when all of the  Holders of  Transfer  Restricted
Securities are able to sell all Transfer
Restricted  Securities  immediately without restriction  pursuant to Rule 144(k)
under the Securities Act or any successor rule thereto; or

                           (C) when all of the  Holders of  Transfer  Restricted
Securities that are owned by the Holders
who complete and timely deliver the Questionnaire are registered under the Shelf
Registration Statement and disposed of in accordance with the Shelf Registration
Statement.

                  (b) To have its Transfer Restricted Securities included in the
Shelf  Registration  Statement  pursuant to this  Agreement,  each Holder  shall
complete the Selling Securityholder Notice and Questionnaire,  the form of which
is contained in Exhibit A to this Agreement (the  "QUESTIONNAIRE"),  and deliver
it to the  Company  prior to or on the 20th  Business  Day  after  the date of a
written  request  therefor by the Company (which request shall include a copy of
the Questionnaire) (such deadline,  the "QUESTIONNAIRE  DEADLINE").  Each Holder

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may  complete  the  Questionnaire  and deliver it to the  Company  prior to such
request and, if the Questionnaire is so delivered, shall be entitled to have its
Transfer  Restricted  Securities  included  in the  initial  Shelf  Registration
Statement  filed  with the  Commission.  In  addition,  upon  receipt of written
request for additional  information from the Company, each Holder who intends to
be named as a selling  securityholder in the Shelf Registration  Statement shall
furnish to the Company in writing,  within 20 Business  Days after such Holder's
receipt of such request,  such additional  information regarding such Holder and
the proposed distribution by such Holder of its Transfer Restricted  Securities,
in connection with the Shelf Registration Statement or Prospectus or Preliminary
Prospectus  included  therein and in any  application  to be filed with or under
state securities law, as the Company may reasonably  request. In connection with
all  such  requests  for  information   from  Holders  of  Transfer   Restricted
Securities,  the Company shall notify such Holders of the requirements set forth
in  this  paragraph  regarding  their  obligation  to  provide  the  information
requested  pursuant  to  this  Section.  Each  Holder  as  to  which  the  Shelf
Registration  Statement  is being  effected  agrees to furnish  promptly  to the
Company all  information  required to be disclosed in order to make  information
previously furnished to the Company by such Holder not materially misleading.

3. Additional Amounts.

         (a) If:

                  (i) the Shelf  Registration  Statement  is not filed  with the
Commission prior to or on the Shelf Filing Deadline;

                  (ii) the Shelf  Registration  Statement  has not been declared
effective by the Commission prior to or on the Effectiveness Target Date;

                  (iii) except as provided in Section 4(b)(i) hereof,  the Shelf
Registration   Statement  is  filed  and  declared  effective  but,  during  the
Effectiveness  Period,  shall thereafter cease to be effective or shall cease to
be usable for its intended  purpose without being succeeded within five Business
Days by a  post-effective  amendment  to the  Shelf  Registration  Statement,  a
supplement to the Prospectus or a report filed with the  Commission  pursuant to
Section  13(a),  13(c),  14 or 15(d) of the Exchange Act that cures such failure
and, in the case of a post-effective  amendment,  is itself immediately declared
effective; or

                  (iv) prior to or on the 45th or 60th day,  as the case may be,
of any Suspension  Period,  such suspension has not been terminated.  (each such
event  referred  to in  foregoing  clauses  (i) through  (iv),  a  "REGISTRATION
DEFAULT"),

                  the  Company   hereby   agrees  to  pay   additional   amounts
("ADDITIONAL  AMOUNTS") with respect to the Transfer Restricted Securities owned
by each Qualifying  Holder from and including the day following the Registration
Default to but  excluding  the day on which the  Registration  Default  has been
cured, accruing at a rate: (A) in respect of the Debentures,  to each Qualifying
Holder of Debentures, (x) with respect to the first 90-day period during which a

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Registration  Default shall have occurred and be continuing,  equal to 0.25% per
annum of the  principal  amount of the  Debentures  then held by the  Qualifying
Holder,  and (y) with respect to the period commencing on the 91st day following
the day the Registration Default shall have occurred and be continuing, equal to
0.50%  per annum of the  principal  amount  of the  Debentures  then held by the
Qualifying Holder; provided that in no event shall Additional Amounts accrue for
any Qualifying Holder at a rate per year exceeding 0.75% of the principal amount
of the Debentures owned by such Qualifying Holder; and (B) without  duplication,
in respect of any Conversion  Shares issued upon  conversion of  Debentures,  to
each Qualifying Holder of such Conversion  Shares, (x) with respect to the first
90- day  period in which a  Registration  Default  shall  have  occurred  and be
continuing,  equal to 0.25% per annum of the principal  amount of the Debentures
converted  into such  Conversion  Shares  that are then held by such  Qualifying
Holder, and (y) with respect to the period commencing the 91st day following the
day the  Registration  Default shall have occurred and be  continuing,  equal to
0.50% per annum of the principal  amount of the  Debentures  converted into such
Conversion Shares that are then held by such Qualifying Holder; provided that in
no event shall Additional Amounts accrue in respect of any Conversion Shares for
any Qualifying Holder at a rate per year exceeding 0.75% of the principal amount
of the Debentures  converted into such  Conversion  Shares that are then held by
such Qualifying Holder.

         (b) All  accrued  Additional  Amounts  shall be paid in  arrears to the
Record Holders entitled thereto by the Company on each Additional Amount Payment
Date by wire transfer of immediately  available  funds or by federal bank check.
Following  the cure of all  Registration  Defaults  relating  to any  particular
Debenture or Conversion Shares issued upon conversion of Debentures, the accrual
of Additional  Amounts with respect to such Debenture or such Conversion  Shares
shall cease.  The Company agrees to deliver all notices,  certificates and other
documents  contemplated  by the  Indenture  in  connection  with the  payment of
Additional  Amounts.  All obligations of the Company set forth in this Section 3
that are  outstanding  with respect to any Transfer  Restricted  Security at the
time such security  ceases to be a Transfer  Restricted  Security  shall survive
until such time as all such obligations with respect to such Transfer Restricted
Security shall have been  satisfied in full.  The  Additional  Amounts set forth
above  shall be the  exclusive  monetary  remedy  available  to the  Holders  of
Transfer Restricted Securities for such Registration Default.

4. Registration Procedures.

         (a) In connection with the Shelf  Registration  Statement,  the Company
shall  comply with all the  provisions  of Section 4(b) hereof and shall use its
best  efforts to effect  such  registration  to permit the sale of the  Transfer
Restricted  Securities  being sold in  accordance  with the  intended  method or
methods of distribution thereof, and pursuant thereto, shall as expeditiously as
possible  prepare and file with the  Commission a Shelf  Registration  Statement
relating to the registration on any appropriate form under the Securities Act.

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         (b) In  connection  with  the  Shelf  Registration  Statement  and  any
Prospectus  required by this  Agreement to permit the sale or resale of Transfer
Restricted Securities, the Company shall:

                  (i)  Subject to any notice by the Company in  accordance  with
this Section 4(b) of the existence of any fact or event of the kind described in
Section 4(b)(iii)(D),  use its commercially reasonable efforts to keep the Shelf
Registration  Statement  continuously effective during the Effectiveness Period;
upon the  occurrence  of any event  that  would  cause  the  Shelf  Registration
Statement  or the  Prospectus  contained  therein  (A)  to  contain  a  material
misstatement  or omission or (B) not be  effective  and usable for the resale of
Transfer  Restricted  Securities  during the Effectiveness  Period,  the Company
shall  file  promptly  an  appropriate   amendment  to  the  Shelf  Registration
Statement,  a supplement to the Prospectus or a report filed with the Commission
pursuant to Section 13(a),  13(c),  14 or 15(d) of the Exchange Act, in the case
of clause (A), correcting any such misstatement or omission, and, in the case of
either clause (A) or (B), use its commercially  reasonable efforts to cause such
amendment to be declared effective and the Shelf Registration  Statement and the
related  Prospectus  to become  usable for their  intended  purposes  as soon as
practicable thereafter.  Notwithstanding the foregoing,  the Company may suspend
the effectiveness of the Shelf  Registration  Statement by written notice to the
Holders for a period not to exceed an aggregate of 45 days in any 90-day  period
(each such period, a "SUSPENSION PERIOD") if:

                           (x) an event occurs and is  continuing as a result of
which the Shelf Registration Statement
would, in the Company's  reasonable  judgment,  contain 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; and

                           (y)  the  Company  reasonably   determines  that  the
disclosure of such event at such time would have
a material  adverse effect on the business of the Company (and its  subsidiaries
taken as a  whole);  provided  that in the  event the  disclosure  relates  to a
previously  undisclosed proposed or pending material business  transaction,  the
disclosure  of which  would  impede the  Company's  ability to  consummate  such
transaction, the Company may extend a Suspension Period from 45 days to 60 days;
provided,  however,  that Suspension Periods shall not exceed an aggregate of 90
days in any 360-day period.

                  (ii) Prepare and file with the Commission  such amendments and
posteffective amendments to the Shelf Registration Statement as may be necessary
to keep the Shelf  Registration  Statement  effective  during the  Effectiveness
Period;  cause the  Prospectus  to be  supplemented  by any required  Prospectus
supplement,  and as so  supplemented  to be filed pursuant to Rule 424 under the
Securities Act, and to comply fully with the applicable  provisions of Rules 424
under the Securities  Act in a timely manner;  and comply with the provisions of
the Securities Act with respect to the disposition of all securities  covered by
the Shelf Registration Statement during the applicable period in accordance with
the intended  method or methods of distribution by the sellers thereof set forth
in the Shelf Registration Statement or supplement to the Prospectus.

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                  (iii) Advise the selling  Holders  promptly  (but in any event
within five Business  Days) and, if requested by such  Persons,  to confirm such
advice in writing:  (A) when the  Prospectus  or any  Prospectus  supplement  or
posteffective  amendment  has  been  filed,  and,  with  respect  to  the  Shelf
Registration  Statement or any post-effective  amendment thereto,  when the same
has become effective, (B) of any request by the Commission for amendments to the
Shelf  Registration  Statement or amendments or supplements to the Prospectus or
for  additional  information  relating  thereto,  (C)  of  the  issuance  by the
Commission  of  any  stop  order  suspending  the  effectiveness  of  the  Shelf
Registration  Statement  under the  Securities  Act or of the  suspension by any
state  securities  commission of the  qualification  of the Transfer  Restricted
Securities  for offering or sale in any  jurisdiction,  or the initiation of any
proceeding  for any of the  preceding  purposes,  or (D) of the existence of any
fact or the happening of any event, during the Effectiveness  Period, that makes
any statement of a material fact made in the Shelf Registration  Statement,  the
Prospectus, any amendment or supplement thereto, or any document incorporated by
reference  therein  untrue,  or that  requires the making of any additions to or
changes in the Shelf  Registration  Statement or the Prospectus in order to make
the  statements  therein  not  misleading.  Each  Holder of the  Debentures,  by
accepting the same, agrees to hold any  communication  from the Company pursuant
to paragraphs 4(b)(iii)(B) and 4(b)(iii)(D) in confidence.

         If at any time the Commission shall issue any stop order suspending the
effectiveness  of the Shelf  Registration  Statement,  or any  state  securities
commission or other  regulatory  authority  shall issue an order  suspending the
qualification  or  exemption  from  qualification  of  the  Transfer  Restricted
Securities  under state  securities or Blue Sky laws,  the Company shall use its
commercially  reasonable  efforts  to obtain the  withdrawal  or lifting of such
order at the earliest  possible time and will provide to the Initial  Purchasers
and each Holder who is named in the Shelf  Registration  Statement prompt notice
of the withdrawal of any such order.

                  (iv) Make available at reasonable  times for inspection by one
or more  representatives  of the  selling  Holders,  designated  in writing by a
Majority of Holders whose  Transfer  Restricted  Securities  are included in the
Shelf Registration  Statement,  and any attorney or accountant  retained by such
selling Holders all financial and other records,  pertinent  corporate documents
and properties of the Company as shall be reasonably necessary to enable them to
exercise any applicable due diligence responsibilities,  and cause the Company's
officers, directors, managers and employees to supply all information reasonably
requested by any such  representative or representatives of the selling Holders,
attorney or accountant in connection with the Shelf Registration Statement after
the filing thereof and before its  effectiveness,  provided,  however,  that any
information designated by the Company as confidential at the time of delivery of
such information shall be kept confidential by the recipient thereof.

                  (v) If requested by any selling Holders  promptly  incorporate
in the Shelf Registration  Statement or Prospectus,  pursuant to a supplement or
post-effective amendment if necessary,  such information as such selling Holders
may reasonably request to have included therein, including,  without limitation:
(1)  information  relating  to  the  "Plan  of  Distribution"  of  the  Transfer
Restricted  Securities,  (2) information with respect to the principal amount of

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Debentures or number of  Conversion  Shares being sold,  (3) the purchase  price
being paid  therefor  and (4) any other terms of the  offering  of the  Transfer
Restricted Securities to be sold in such offering;  provided, however, that with
respect to any  information  requested for inclusion by a selling  Holder,  this
clause  (v)  shall  apply  only to  information  that  relates  to the  Transfer
Restricted  Securities to be sold by such selling Holder;  and make all required
filings of such  Prospectus  supplement or  post-effective  amendment as soon as
reasonably  practicable  after the  Company  is  notified  of the  matters to be
incorporated in such Prospectus supplement or post-effective amendment.

                  (vi) Furnish to each selling Holder without  charge,  at least
one  copy  of  the  Shelf  Registration  Statement,  as  first  filed  with  the
Commission,  and of each amendment  thereto (and any documents  incorporated  by
reference therein or exhibits thereto (or exhibits incorporated in such exhibits
by reference) as such Person may request).

                  (vii) Deliver to each selling Holder without  charge,  as many
copies  of the  Prospectus  (including  each  preliminary  prospectus)  and  any
amendment or supplement thereto as such Persons reasonably may request;  subject
to any  notice  by the  Company  in  accordance  with this  Section  4(b) of the
existence of any fact or event of the kind  described in Section  4(b)(iii) (D),
the Company  hereby  consents to the use of the  Prospectus and any amendment or
supplement  thereto  by each of the  selling  Holders  in  connection  with  the
offering  and the sale of the  Transfer  Restricted  Securities  covered  by the
Prospectus or any amendment or supplement thereto.

                  (viii)  Before  any public  offering  of  Transfer  Restricted
Securities,  cooperate with the selling Holders, and their respective counsel in
connection with the  registration and  qualification of the Transfer  Restricted
Securities  under the securities or Blue Sky laws of such  jurisdictions  in the
United States as the selling  Holders may reasonably  request and do any and all
other acts or things  necessary or advisable to enable the  disposition  in such
jurisdictions  of the  Transfer  Restricted  Securities  covered  by  the  Shelf
Registration  Statement;  provided,  however,  that  the  Company  shall  not be
required  (A) to  register  or qualify as a foreign  corporation  or a dealer of
securities  where it is not now  qualified  or to take  any  action  that  would
subject it to the service of process in any jurisdiction  where it is not now so
subject or (B) to subject itself to taxation in any such  jurisdiction  if it is
not now so subject.

                  (ix)  Cooperate  with the selling  Holders to  facilitate  the
timely preparation and delivery of certificates representing Transfer Restricted
Securities to be sold and not bearing any restrictive  legends (unless  required
by applicable  securities laws); and enable such Transfer Restricted  Securities
to be in such  denominations  and  registered  in such names as the  Holders may
request at least five  Business  Days  before  any sale of  Transfer  Restricted
Securities.

                  (x) Use its  commercially  reasonable  efforts  to  cause  the
Transfer Restricted Securities covered by the Shelf Registration Statement to be
registered  with or  approved  by  such  other  U.S.  governmental  agencies  or
authorities  as may be  necessary  to enable the  seller or  sellers  thereof to
consummate the disposition of such Transfer Restricted Securities.

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                  (xi) Subject to Section 4(b)(i)  hereof,  if any fact or event
contemplated by Section  4(b)(iii)(D)  hereof shall exist or have occurred,  use
its commercially  reasonable  efforts to prepare a supplement or  post-effective
amendment  to the Shelf  Registration  Statement  or related  Prospectus  or any
document  incorporated  therein by reference or file any other required document
so that,  as  thereafter  delivered  to the  purchasers  of Transfer  Restricted
Securities,  the Prospectus  will not contain an untrue  statement of a material
fact or omit to state  any  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.

                  (xii)  Provide  CUSIP  numbers  for  all  Transfer  Restricted
Securities not later than the effective date of the Shelf Registration Statement
and provide the Trustee under the Indenture with certificates for the Debentures
that are in a form eligible for deposit with The Depository Trust Company.

                  (xiii) Cooperate and assist in any filings required to be made
with the NASD and in the performance of any due diligence  investigation that is
required to be  retained in  accordance  with the rules and  regulations  of the
NASD.

                  (xiv)  Otherwise use its  commercially  reasonable  efforts to
comply with all  applicable  rules and  regulations  of the  Commission  and all
reporting requirements under the Exchange Act.

                  (xv) Cause the  Indenture  to be  qualified  under the TIA not
later than the effective date of the Shelf  Registration  Statement  required by
this Agreement, and, in connection therewith, cooperate with the Trustee and the
holders of Debentures to effect such changes to the Indenture as may be required
for such  Indenture to be so qualified in accordance  with the terms of the TIA;
and execute  and use its  commercially  reasonable  efforts to cause the Trustee
thereunder to execute all documents  that may be required to effect such changes
and all other forms and  documents  required to be filed with the  Commission to
enable such Indenture to be so qualified in a timely manner.

                  (xvi)  Cause  all  Conversion  Shares  covered  by  the  Shelf
Registration  Statement  to be  listed  or  quoted,  as the case may be, on each
securities  exchange or automated  quotation system on which similar  securities
issued by the Company are then listed or quoted.

         (c) Each Holder agrees by acquisition of a Transfer Restricted Security
that, upon receipt of any notice (a "SUSPENSION NOTICE") from the Company of the
existence of any fact of the kind described in Section 4(b)(iii)(D) hereof, such
Holder will discontinue  disposition of Transfer Restricted  Securities pursuant
to the Shelf Registration Statement until:

                  (i) such Holder has  received  copies of the  supplemented  or
amended Prospectus contemplated by Section 4(b)(xi) hereof; or

                                       10
<PAGE>

                  (ii) such Holder is advised in writing by the Company that the
use of the Prospectus may be resumed,  and has received copies of any additional
or supplemental filings that are incorporated by reference in the Prospectus.

                  If so directed by the Company, each Holder will deliver to the
Company (at the Company's expense) all copies,  other than permanent file copies
then in such  Holder's  possession,  of the  Prospectus  covering  such Transfer
Restricted  Securities that was current at the time of receipt of such notice of
suspension.

         (d) Holders who do not complete the Questionnaire and deliver it to the
Company  by the  Questionnaire  Deadline  shall not be  eligible  to be named as
selling  securityholders in the Prospectus or preliminary Prospectus included in
the Shelf Registration  Statement and, therefore,  (i) shall not be permitted to
sell any  Transfer  Restricted  Securities  pursuant  to the Shelf  Registration
Statement  or (ii)  receive  any  Additional  Amounts,  if any,  to  which  they
otherwise would be entitled hereunder.  Thereafter,  upon receipt of a completed
Questionnaire,  the Company shall as promptly as  practicable,  but in any event
within ten Business Days of receipt of such  Questionnaire,  file any amendments
or  supplements to the Shelf  Registration  Statement to allow such Holder to be
named as a selling Holder in the Prospectus included therein. In addition,  each
Holder  who  intends to be named as a selling  Holder in the Shelf  Registration
Statement  shall  promptly  respond  to the  Company  by  providing  such  other
information as the Company may from time to time  reasonably  request in writing
regarding  the  Holder  and the  proposed  distribution  by such  Holder  of its
Transfer  Restricted  Securities  in  connection  with  the  Shelf  Registration
Statement or Prospectus or preliminary Prospectus included therein.

         (e) Upon the effectiveness of the Shelf  Registration  Statement,  each
Holder
 shall  notify the Company at least three  Business  Days prior to any  intended
distribution   of  Transfer   Restricted   Securities   pursuant  to  the  Shelf
Registration  Statement (a "SALE  NOTICE"),  which notice shall be effective for
five Business Days. Each Holder of Transfer Restricted Securities,  by accepting
the same,  agrees to hold any communication by the Company in response to a Sale
Notice in confidence.

5. Registration Expenses.

         All expenses  incident to the  Company's  performance  of or compliance
with this Agreement shall be borne by the Company  regardless of whether a Shelf
Registration Statement becomes effective, including, without limitation: (i) all
registration and filing fees and expenses (including filings made by any Initial
Purchasers  or Holders with the NASD);  (ii) all fees and expenses of compliance
with  federal  securities  and  state  Blue Sky or  securities  laws;  (iii) all
expenses of printing  (including  printing of Prospectuses  and certificates for
Conversion Shares to be issued upon conversion of the Debentures), messenger and
delivery  services and telephone;  (iv) all fees and disbursements of counsel to
the  Company  and,  subject to  Section  6(c)  below,  the  Holders of  Transfer
Restricted  Securities;  (v) all  application and filing fees in connection with
listing (or  authorizing  for  quotation)  the  Conversion  Shares on a national

                                       11
<PAGE>

securities  exchange or automated  quotation system pursuant to the requirements
hereof;  and (vi) all fees and  disbursements  of independent  certified  public
accountants  of the Company  (including  the  expenses of any special  audit and
comfort letters required by or incident to such performance).

         The  Company  shall  bear its  internal  expenses  (including,  without
limitation,  all salaries and expenses of its officers and employees  performing
legal,  accounting  or other  duties),  the expenses of any annual audit and the
fees and  expenses of any Person,  including  special  experts,  retained by the
Company.

6. Indemnification and Contribution.

         (a) The Company shall  indemnify  and hold  harmless each Holder,  such
Holder's officers, directors and employees and each person, if any, who controls
such Holder  within the meaning of the  Securities  Act (each,  an  "INDEMNIFIED
Holder"),  from and  against  any loss,  claim,  damage or  liability,  joint or
several,  or any action in respect thereof  (including,  but not limited to, any
loss,  claim,  damage,  liability or action  relating to resales of the Transfer
Restricted  Securities),  to which such  Indemnified  Holder may become subject,
insofar as any such loss, claim,  damage,  liability or action arises out of, or
is based upon:

                  (i) any untrue  statement  or alleged  untrue  statement  of a
material fact contained in (A) the Shelf Registration Statement or Prospectus or
any amendment or  supplement  thereto or (B) any blue sky  application  or other
document or any  amendment  or  supplement  thereto  prepared or executed by the
Company  (or based upon  written  information  furnished  by or on behalf of the
Company  expressly  for use in such blue sky  application  or other  document or
amendment on supplement) filed in any jurisdiction  specifically for the purpose
of  qualifying  any or  all of the  Transfer  Restricted  Securities  under  the
securities law of any state or other  jurisdiction (such application or document
being hereinafter called a "BLUE SKY APPLICATION"); or

                  (ii) the  omission or alleged  omission  to state  therein any
material fact required to be stated  therein or necessary to make the statements
therein,  in the light of the  circumstances  under  which they were  made,  not
misleading;

and shall reimburse each  Indemnified  Holder promptly upon demand for any legal
or other expenses  reasonably  incurred by such Indemnified Holder in connection
with  investigating  or defending or preparing to defend  against any such loss,
claim,  damage,  liability or action as such  expenses are  incurred;  provided,
however,  that the  Company  shall not be liable in any such case to the  extent
that any such loss,  claim,  damage,  liability  or action  arises out of, or is
based upon, (A) any untrue  statement or alleged untrue statement or omission or
alleged  omission  made in the Shelf  Registration  Statement or  Prospectus  or
amendment  or  supplement  thereto  or Blue Sky  Application  or other  document
referred to in Section  6(a)(i)  hereof in reliance upon and in conformity  with
written  information  furnished to the Company by or on behalf of any Holder (or
its related Indemnified Holder)  specifically for use therein or (B) the failure
by the Holder or Indemnified  Holder to deliver to any purchaser of its Transfer

                                       12
<PAGE>

Restricted  Securities the Prospectus and any supplement or amendment thereto in
the form  provided to such Holder or  Indemnified  Holder by the Company if such
Holder  is  required  to  so  deliver   pursuant  to  the  prospectus   delivery
requirements  of the  Securities  Act. The foregoing  indemnity  agreement is in
addition  to  any  liability  which  the  Company  may  otherwise  have  to  any
Indemnified Holder.

         (b) Each Holder,  severally and not jointly,  shall  indemnify and hold
harmless the Company, its officers,  directors and employees and each person, if
any, who controls the Company within the meaning of the Securities Act, from and
against any loss, claim, damage or liability, joint or several, or any action in
respect thereof, to which the Company or any such officer, director, employee or
controlling person may become subject,  insofar as any such loss, claim,  damage
or liability or action arises out of, or is based upon:

                  (i) any untrue  statement or alleged  untrue  statement of any
material fact contained in the Shelf Registration Statement or Prospectus or any
amendment or supplement  thereto or any Blue Sky  Application  or other document
referred to in Section 6(a)(i) hereof; or

                  (ii) the omission or the alleged omission to state therein any
material fact required to be stated  therein or necessary to make the statements
therein,  in  light  of the  circumstances  under  which  they  were  made,  not
misleading;

but in each case only to the extent that such untrue statement or alleged untrue
statement  or omission  or alleged  omission  was made in  reliance  upon and in
conformity with written information  furnished to the Company by or on behalf of
such Holder (or its related  Indemnified  Holder)  specifically for use therein,
and shall  reimburse the Company and any such officer,  employee or  controlling
person promptly upon demand for any legal or other expenses  reasonably incurred
by the Company or any such officer, employee or controlling person in connection
with  investigating  or defending or preparing to defend  against any such loss,
claim, damage, liability or action as such expenses are incurred.

         The foregoing indemnity agreement is in addition to any liability which
any Holder may  otherwise  have to the Company and any such  officer,  director,
employee or controlling person.

         (c) Promptly after receipt by an indemnified party under this Section 6
of notice of any claim or the commencement of any action,  the indemnified party
shall,  if a claim in respect  thereof is to be made  against  the  indemnifying
party  under this  Section 6,  notify the  indemnifying  party in writing of the
claim or the commencement of that action; provided, however, that the failure to
notify the  indemnifying  party shall not relieve it from any liability which it
may have  under  this  Section  6 except to the  extent  it has been  materially
prejudiced by such failure and,  provided,  further,  that the failure to notify
the indemnifying party shall not relieve it from any liability which it may have
to an indemnified  party  otherwise than under this Section 6. If any such claim
or action shall be brought against an indemnified party, and it shall notify the
indemnifying  party  thereof,  the  indemnifying  party  shall  be  entitled  to
participate  therein  and, to the extent that it wishes,  jointly with any other
similarly  notified  indemnifying  party,  to assume the  defense  thereof  with

                                       13
<PAGE>

counsel   satisfactory  to  the  indemnified   party.   After  notice  from  the
indemnifying  party to the  indemnified  party of its  election  to  assume  the
defense of such claim or action,  the indemnifying  party shall not be liable to
the  indemnified  party  under  this  Section 6 for any legal or other  expenses
subsequently  incurred by the  indemnified  party in connection with the defense
thereof other than reasonable costs of investigation;  provided,  however,  if a
Majority of Holders have one or more legal defenses  available to them and their
respective  officers,  employees and controlling persons that are different from
or  additional to those  available to the Company and its  officers,  directors,
employees and controlling persons, a Majority of Holders shall have the right to
employ a single  counsel to  represent  jointly a Majority  of Holders and their
respective  officers,  employees and  controlling  persons who may be subject to
liability  arising out of any claim in respect of which  indemnity may be sought
by a Majority  of Holders  against  the  Company  under this  Section 6, and the
reasonable fees and expenses of a single  separate  counsel shall be paid by the
Company. No indemnifying party shall:

                  (i)  without  the prior  written  consent  of the  indemnified
parties (which consent shall not be unreasonably  withheld) settle or compromise
or  consent  to the  entry  of any  judgment  with  respect  to any  pending  or
threatened claim, action, suit or proceeding in respect of which indemnification
or contribution may be sought hereunder (whether or not the indemnified  parties
are actual or potential parties to such claim or action) unless such settlement,
compromise  or consent  includes an  unconditional  release of each  indemnified
party from all liability arising out of such claim,  action, suit or proceeding,
or

                  (ii) be liable for any settlement of any such action  effected
without its written consent (which consent shall not be unreasonably  withheld),
but if settled with its written  consent or if there be a final judgment for the
plaintiff in any such action,  the  indemnifying  party agrees to indemnify  and
hold  harmless any  indemnified  party from and against any loss or liability by
reason of such settlement or judgment.

         (d) If the indemnification provided for in this Section 6 shall for any
reason be unavailable  or  insufficient  to hold harmless an  indemnified  party
under  Section 6(a) or 6(b) in respect of any loss,  claim,  damage or liability
(or action in respect  thereof)  referred to therein,  each  indemnifying  party
shall, in lieu of indemnifying such indemnified party,  contribute to the amount
paid or  payable  by such  indemnified  party as a result of such  loss,  claim,
damage or liability (or action in respect thereof):

                  (i) in  such  proportion  as is  appropriate  to  reflect  the
relative  benefits  received by the Company  from the  offering  and sale of the
Transfer Restricted  Securities on the one hand and a Holder with respect to the
sale by such Holder of the Transfer Restricted Securities on the other, or

                  (ii) if the  allocation  provided by clause  (6)(d)(i)  is not
permitted by applicable law, in such proportion as is appropriate to reflect not
only the relative  benefits  referred to in clause 6(d)(i) but also the relative
fault of the Company on the one hand and the Holders on the other in  connection
with the statements or omissions or alleged statements or alleged omissions that

                                       14
<PAGE>

resulted  in such  loss,  claim,  damage or  liability  (or  action  in  respect
thereof), as well as any other relevant equitable considerations.

                  The relative  benefits received by the Company on the one hand
and a Holder on the other with  respect to such  offering and such sale shall be
deemed to be in the same  proportion as the total net proceeds from the offering
of the  Debentures  purchased  under the Purchase  Agreement  (before  deducting
expenses)  received by the Company on the one hand,  bear to the total  proceeds
received  by  such  Holder  with  respect  to its  sale of  Transfer  Restricted
Securities on the other.  The relative  fault of the parties shall be determined
by  reference  to whether the untrue or alleged  untrue  statement of a material
fact or the  omission or alleged  omission to state a material  fact  relates to
information supplied by the Company on the one hand or the Holders on the other,
the intent of the parties and their  relative  knowledge,  access to information
and  opportunity to correct or prevent such  statement or omission.  The Company
and each Holder  agree that it would not be just and  equitable if the amount of
contribution  pursuant  to  this  Section  6(d)  were  determined  by  pro  rata
allocation or by any other method of allocation  that does not take into account
the equitable  considerations  referred to in the first sentence of this Section
6(d).  The amount  paid or payable  by an  indemnified  party as a result of the
loss,  claim,  damage or liability,  or action in respect  thereof,  referred to
above in this Section 6 shall be deemed to include, for purposes of this Section
6, any legal or other expenses  reasonably incurred by such indemnified party in
connection  with  investigating  or  defending  or  preparing to defend any such
action or claim.  Notwithstanding  the  provisions  of this Section 6, no Holder
shall be required to contribute  any amount in excess of the amount by which the
total price at which the  Transfer  Restricted  Securities  purchased by it were
resold  exceeds the amount of any damages which such Holder has  otherwise  been
required to pay by reason of any untrue or alleged untrue  statement or omission
or alleged omission.  No person guilty of fraudulent  misrepresentation  (within
the  meaning of  Section  11(f) of the  Securities  Act)  shall be  entitled  to
contribution   from  any  person   who  was  not   guilty  of  such   fraudulent
misrepresentation.  The Holders'  obligations  to contribute as provided in this
Section 6(d) are several and not joint.

         7. Rule 144A.

         In the event the  Company is not  subject to Section 13 or 15(d) of the
Exchange  Act, the Company  hereby  agrees with each Holder,  for so long as any
Transfer  Restricted  Securities  remain  outstanding,  to make available to any
Holder or beneficial owner of Transfer Restricted  Securities in connection with
any sale  thereof and any  prospective  purchaser  of such  Transfer  Restricted
Securities from such Holder or beneficial  owner,  the  information  required by
Rule  144A(d)(4)  under the  Securities  Act in order to permit  resales of such
Transfer Restricted Securities pursuant to Rule 144A.

         8. Miscellaneous.

         (a) REMEDIES.  The Company  acknowledges and agrees that any failure by
the Company to comply with its obligations  under Section 2 hereof may result in
material  irreparable  injury to the Initial Purchasers or the Holders for which
there is no  adequate  remedy at law,  that it will not be  possible  to measure

                                       15
<PAGE>

damages for such injuries  precisely and that, in the event of any such failure,
the Initial  Purchasers  or any Holder may obtain such relief as may be required
to specifically  enforce the Company's  obligations under Section 2 hereof.  The
Company  further  agrees  to  waive  the  defense  in any  action  for  specific
performance that a remedy at law would be adequate.

         (b) ADJUSTMENTS AFFECTING TRANSFER RESTRICTED  SECURITIES.  The Company
shall not, directly or indirectly,  take any action with respect to the Transfer
Restricted  Securities as a class that would adversely affect the ability of the
Holders of Transfer  Restricted  Securities to include such Transfer  Restricted
Securities in a registration undertaken pursuant to this Agreement.

         (c) NO INCONSISTENT  AGREEMENTS.  The Company will not, on or after the
date of this Agreement, enter into any agreement with respect to its securities
that is inconsistent with the rights granted to the Holders in this Agreement or
otherwise conflicts with the provisions hereof. In addition, the Company shall
not grant to any of its security holders (other than the Holders of Transfer
Restricted Securities in such capacity) the right to include any of its
securities in the Shelf Registration Statement provided for in this Agreement
other than the Transfer Restricted Securities. The Company has not previously
entered into any agreement (which has not expired or been terminated) granting
any registration rights with respect to its securities to any Person which
rights conflict with the provisions hereof.

         (d) AMENDMENTS AND WAIVERS. This Agreement may not be amended, modified
or  supplemented,  and waivers or consents to or departures  from the provisions
hereof may not be given,  unless the Company has obtained the written consent of
a Majority of Holders or such greater  percentage  of the Holders as required by
the Indenture.

         (e)  NOTICES.  All notices  and other  communications  provided  for or
permitted hereunder shall be made in writing by hand-delivery,  first-class mail
(registered  or  certified,   return  receipt   requested),   telex,   facsimile
transmission, or air courier guaranteeing overnight delivery:

                  (i) if to a Holder, at the address set forth on the records of
the  registrar  under the  Indenture  or the  transfer  agent of the  Conversion
Shares, as the case may be; and

                  (ii) if to the Company, to:

                           Alloy, Inc.
                           151 West 26th Street, 11th Floor
                           New York, New York  10001
                           Telecopy:  (212) 244-4311
                           Attention:  Gina DiGioia

                           with a copy to:

                                       16
<PAGE>

                           Katten Muchen Zavis & Rosenman
                           1025 Thomas Jefferson St., N.W.
                           East Lobby, Suite 700
                           Washington, District of Columbia
                           20007-5201
                           Telecopy:  (202) 339-6058
                           Attention:  Richard Graf

         All such notices and  communications  shall be deemed to have been duly
given:  at the time  delivered by hand, if personally  delivered;  five Business
Days after  being  deposited  in the mail,  postage  prepaid,  if  mailed;  when
answered  back,  if  telexed;  when  receipt  acknowledged,  if  transmitted  by
facsimile;  and on the next Business Day, if timely  delivered to an air courier
guaranteeing overnight delivery.

         (f) SUCCESSORS AND ASSIGNS.  This Agreement  shall inure to the benefit
of and be  binding  upon the  successors  and  assigns  of each of the  parties,
including  without  limitation  and without the need for an express  assignment,
subsequent Holders of Transfer Restricted  Securities;  provided,  however, that
(i) this  Agreement  shall  not inure to the  benefit  of or be  binding  upon a
successor  or assign of a Holder  unless and to the  extent  such  successor  or
assign acquired Transfer Restricted Securities from such Holder and (ii) nothing
contained  herein  shall be deemed to permit any  assignment,  transfer or other
disposition of Transfer  Restricted  Securities in violation of the terms of the
Purchase  Agreement  or the  Indenture.  If any  transferee  of any Holder shall
acquire Transfer Restricted  Securities,  in any manner, whether by operation of
law or otherwise,  such Transfer Restricted  Securities shall be held subject to
all of the terms of this  Agreement,  and by taking and  holding  such  Transfer
Restricted Securities such person shall be conclusively deemed to have agreed to
be bound by and to perform all of the terms and provisions of this Agreement.

         (g)  COUNTERPARTS.  This  Agreement  may be  executed  in any number of
counterparts and by the parties hereto in separate  counterparts,  each of which
when so  executed  shall be  deemed  to be an  original  and all of which  taken
together shall constitute one and the same agreement.

         (h)  SECURITIES  HELD BY THE COMPANY OR ITS  AFFILIATES.  Whenever  the
consent or approval of Holders of a specified  percentage of Transfer Restricted
Securities is required  hereunder,  Transfer  Restricted  Securities held by the
Company  or its  Affiliates  shall not be counted in  determining  whether  such
consent or approval was given by the Holders of such required percentage.

         (i) HEADINGS.  The headings in this  Agreement are for  convenience  of
reference only and shall not limit or otherwise affect the meaning hereof.

         (j) GOVERNING LAW. This  Agreement  shall be governed by, and construed
in accordance with, the laws of the State of New York.

                                       17
<PAGE>

         (k)  SEVERABILITY.  If any  one or  more  of the  provisions  contained
herein, or the application thereof in any circumstance, is held invalid, illegal
or  unenforceable,  the  validity,  legality  and  enforceability  of  any  such
provision  in every other  respect  and of the  remaining  provisions  contained
herein shall not be affected or impaired thereby.

         (l) ENTIRE  AGREEMENT.  This  Agreement is intended by the parties as a
final  expression of their agreement and intended to be a complete and exclusive
statement of the agreement and understanding of the parties hereto in respect of
the  subject  matter  contained  herein.  There are no  restrictions,  promises,
warranties  or  undertakings,  other than those set forth or  referred to herein
with respect to the  registration  rights granted by the Company with respect to
the  Transfer  Restricted  Securities.   This  Agreement  supersedes  all  prior
agreements and  understandings  between the parties with respect to such subject
matter.

                                       18
<PAGE>

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

                                ALLOY, INC.

                                By:   /s/ Gina R. DiGioia
                                   -----------------------------------------
                                Name: Gina R. DiGioia
                                Title: Vice President and General Counsel

                                LEHMAN BROTHERS INC.
                                CIBC WORLD MARKETS CORP.
                                J.P. MORGAN SECURITIES INC.
                                SG COWEN SECURITIES CORPORATION

                                By LEHMAN BROTHERS INC.

                                By: /s/ Glen H. Schiffman
                                   -----------------------------------------

                                Authorized Representative

                                       19
<PAGE>

                                                                         ANNEX A

                                   ALLOY, INC.

             FORM OF SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

                  TO BE NAMED AS A  SELLING  SECURITYHOLDER  IN THE  PROSPECTUS,
BENEFICIAL  OWNERS  SHALL  COMPLETE  AND DELIVER  THIS  QUESTIONNAIRE  WITHIN 20
BUSINESS  DAYS AFTER THE DATE OF THE WRITTEN  REQUEST  THEREFOR BY THE  COMPANY.
BENEFICIAL OWNERS THAT DO NOT COMPLETE THIS  QUESTIONNAIRE AND DELIVER IT TO THE
COMPANY  WILL NOT BE  ELIGIBLE  TO BE NAMED AS  SELLING  SECURITYHOLDERS  IN THE
PROSPECTUS AND THEREFORE  WILL NOT BE PERMITTED TO SELL ANY TRANSFER  RESTRICTED
SECURITIES PURSUANT TO THE SHELF REGISTRATION STATEMENT.

The undersigned  beneficial  owner of 5.375% Senior  Convertible  Debentures due
2023 (CUSIP No.019855 AA 3) (the "debentures"), or common stock, par value $0.01
per share issuable upon conversion thereof (the "CONVERSION SHARES" and together
with the debentures,  the "TRANSFER  RESTRICTED  SECURITIES") of Alloy,  Inc., a
Delaware corporation (the "Company"), understands that the Company has filed, or
intends  shortly to file,  with the  Securities  and  Exchange  Commission  (the
"COMMISSION") a registration  statement on Form S-3 or such other form as may be
available (the "SHELF REGISTRATION STATEMENT"),  for the registration and resale
under Rule 415 of the Securities Act of 1933, as amended (the "SECURITIES ACT"),
of the Transfer Restricted Securities in accordance with the terms of the Resale
Registration  Rights  Agreement,  dated as of July 23,  2003 (the  "REGISTRATION
RIGHTS  AGREEMENT")  between the Company and Lehman  Brothers  Inc.,  CIBC World
Markets Corp., J.P. Morgan  Securities Inc. and SG Cowen Securities  Corporation
as initial purchasers.  A copy of the Registration Rights Agreement is available
from the Company upon request at the address set forth  below.  All  capitalized
terms not  otherwise  defined  herein have the meaning  ascribed  thereto in the
Registration Rights Agreement.

                  Each  beneficial  owner of Transfer  Restricted  Securities is
entitled to the benefits of the Registration Rights Agreement.  In order to sell
or otherwise dispose of any Transfer Restricted Securities pursuant to the Shelf
Registration  Statement,  a beneficial owner of Transfer  Restricted  Securities
generally  will be  required  to be named  as a  selling  securityholder  in the
related  prospectus,  deliver a prospectus to purchasers of Transfer  Restricted
Securities and be bound by those provisions of the Registration Rights Agreement
applicable to such beneficial owner (including  certain  indemnification  rights
and obligations, as described below).

                  Upon any sale of Transfer Restricted  Securities pursuant to a
Shelf  Registration  Statement,  the undersigned  beneficial owner (the "SELLING
SECURITYHOLDER")  will be required to deliver to the Company and the trustee for
the  debentures  the Notice to  Transfer  (completed  and  signed)  set forth in
Exhibit 1 to this Notice and Questionnaire.

                  Certain legal consequences arise from being named as a selling
securityholder in the Shelf Registration  Statement and the related  prospectus.
Accordingly, holders and beneficial owners of Transfer Restricted Securities are
advised to consult their own securities law counsel  regarding the  consequences

                                       A-1
<PAGE>

of being  named or not  being  named as a  selling  securityholder  in the Shelf
Registration Statement and the related prospectus.

                                     NOTICE

                  The Selling  Securityholder of Transfer Restricted  Securities
hereby gives notice to the Company of its intention to sell or otherwise dispose
of Transfer Restricted  Securities  beneficially owned by it and listed below in
Item 3  (unless  otherwise  specified  under  Item  3)  pursuant  to  the  Shelf
Registration  Statement.   The  undersigned,   by  signing  and  returning  this
Questionnaire,  understands that it will be bound by the terms and conditions of
this Questionnaire and the Registration Rights Agreement.

                  Pursuant to the Registration Rights Agreement, the undersigned
has agreed to indemnify and hold harmless the Company,  the Company's directors,
the  Company's  officers  who sign the  Shelf  Registration  Statement  and each
person, if any, who controls the Company within the meaning of either Section 15
of the  Securities  Act or  Section 20 of the  Exchange  Act,  from and  against
certain losses arising in connection with statements  concerning the undersigned
made in the Shelf  Registration  Statement or the related prospectus in reliance
upon the information provided in this Questionnaire.

                  The undersigned  hereby provides the following  information to
the Company and  represents  and warrants that such  information is accurate and
complete:

                                  QUESTIONNAIRE

1.       INFORMATION REGARDING SELLING SECURITYHOLDER

         (a)     Full legal name of Selling Securityholder:
                 ______________________________________

         (b)     Full  legal name of  registered  holder (if not the same as (a)
                 above) through which Transfer  Restricted  Securities listed in
                 Item (3) below are held:

                 ---------------------------------------------------------------

         (c)     Full legal name of DTC  participant  (if  applicable and if not
                 the  same  as (b)  above)  through  which  Transfer  Restricted
                 Securities listed in Item (3) are held:

                 ---------------------------------------------------------------

2.       ADDRESS FOR NOTICES TO SELLING SECURITYHOLDER

         Telephone:  _____________________________

                                       A-2
<PAGE>

         Fax:  __________________________________

         Contact Person:  _________________________

3.       BENEFICIAL OWNERSHIP OF TRANSFER RESTRICTED SECURITIES

         Type of Transfer Restricted Securities beneficially owned, and
         principal amount of debentures or number of

         (a) Conversion Shares of the Company,  as the case may be, beneficially
owned:

               ---------------------------------

         (b) CUSIP No(s). of such Transfer  Restricted  Securities  beneficially
owned:

               ---------------------------------

4.       BENEFICIAL OWNERSHIP OF THE COMPANY'S SECURITIES OWNED BY THE SELLING
SECURITYHOLDER

         Except as set forth below in this Item (4), the  undersigned is not the
         beneficial or registered  owner of any  securities of the Company other
         than  the  Transfer  Restricted  Securities  listed  above  in Item (3)
         ("OTHER SECURITIES").

         (a)  Type and  amount  of Other  Securities  beneficially  owned by the
              Selling Securityholder:

              ------------------------------------------------------------------

         (b) CUSIP No(s). of such Other Securities beneficially owned:

             -------------------------------------------------------------------

5.       RELATIONSHIP WITH THE COMPANY

                  Except as set forth below,  neither the undersigned nor any of
its affiliates, officers, directors or principal equity holders (5% or more) has
held any position or office or has had any other material  relationship with the
Company (or its predecessors or affiliates) during the past three years.

                  State any exceptions here:  _______________________________

                                       A-3
<PAGE>

6.       PLAN OF DISTRIBUTION

                  Except as set forth  below,  the  undersigned  (including  its
donees or pledgees)  intends to distribute  the Transfer  Restricted  Securities
listed above in Item (3) pursuant to the Shelf  Registration  Statement  only as
follows (if at all). Such Transfer  Restricted  Securities may be sold from time
to time directly by the undersigned  or,  alternatively,  through  underwriters,
broker-dealers or agents. If the Transfer Restricted Securities are sold through
underwriters or broker-dealers,  the Selling  Securityholder will be responsible
for underwriting discounts or commissions or agent's commissions.  Such Transfer
Restricted  Securities may be sold in one or more  transactions at fixed prices,
at prevailing market prices at the time of sale, at varying prices determined at
the time of sale,  or at  negotiated  prices.  Such  sales  may be  effected  in
transactions (which may involve crosses or block transactions):

         o        on any national securities exchange or quotation service on
                  which the Transfer Restricted Securities may be listed or
                  quoted at the time of sale;

         o        in the over-the-counter market;

         o        in transactions otherwise than on such exchanges or services
                  or in the over-the-counter market; or

         o        through the writing of options.

                  In connection with sales of the Transfer Restricted Securities
or  otherwise,   the  undersigned  may  enter  into  hedging  transactions  with
broker-dealers,  which  may in  turn  engage  in  short  sales  of the  Transfer
Restricted  Securities and deliver Transfer  Restricted  Securities to close out
such  short  positions,  or loan or pledge  Transfer  Restricted  Securities  to
broker-dealers that in turn may sell such securities.

                  State any exceptions here:  __________________________________

                  --------------------------------------------------------------

                  Note: In no event will such method(s) of distribution take the
form of an underwritten  offering of the Transfer Restricted  Securities without
the prior agreement of the Company.

7.       INSTRUCTIONS FOR DELIVERY OF QUESTIONNAIRE

                  Please return the completed and executed Questionnaire to
Alloy, Inc. at: Attention: Gina DiGioia, Alloy, Inc., 151 West 26th St., 11th
Floor, New York, NY 10001.

8.       ACKNOWLEDGMENTS

                  The   undersigned   acknowledges   that  it  understands   its
obligation  to comply with the  provisions of the Exchange Act and the rules and
regulations promulgated thereunder relating to stock manipulation,  particularly

                                       A-4
<PAGE>

Regulation M thereunder (or any successor rules or  regulations),  in connection
with any  offering  of  Transfer  Restricted  Securities  pursuant  to the Shelf
Registration  Statement.  The undersigned  agrees that neither it nor any person
acting  on its  behalf  will  engage in any  transaction  in  violation  of such
provisions.

                  The Selling Securityholder hereby acknowledges its obligations
under the  Registration  Rights Agreement to indemnify and hold harmless certain
persons as set forth therein. Pursuant to the Registration Rights Agreement, the
Company  has  agreed  under  certain  circumstances  to  indemnify  the  Selling
Securityholders against certain liabilities.

                  In  accordance  with the  undersigned's  obligation  under the
Registration  Rights Agreement to provide such information as may be required by
law for inclusion in the Shelf Registration Statement, the undersigned agrees to
promptly  notify the Company of any  inaccuracies  or changes in the information
provided  herein that may occur  subsequent to the date hereof at any time while
the Shelf Registration  Statement remains  effective.  All notices hereunder and
pursuant to the  Registration  Rights  Agreement shall be made in writing at the
address set forth above.

                  By signing below,  the undersigned  consents to the disclosure
of the  information  contained  herein in its  answers to items (1)  through (6)
above and the inclusion of such information in the Shelf Registration  Statement
and the related  Prospectus.  The undersigned  understands that such information
will be  relied  upon by the  Company  in  connection  with the  preparation  or
amendment of the Shelf Registration Statement and the related Prospectus.

                  IN WITNESS WHEREOF, the undersigned,  by authority duly given,
has caused this  Questionnaire  to be executed and delivered either in person or
by its duly authorized agent.

                                  Beneficial Owner

                                  By:_______________________________
                                     Name:
                                     Title:
                                     Date:

                                      A-5
<PAGE>

                                                            EXHIBIT 1 TO ANNEX A

                           NOTICE OF TRANSFER PURSUANT

                            TO REGISTRATION STATEMENT

 Alloy, Inc.
151 West 26th Street,
11th Floor
New York, NY 10001

         Re:      Alloy, Inc. (the "Company") 5.375% Senior Convertible
                  Debentures due 2023 (the "debentures")

Dear Sirs:

                  Please be advised that has  transferred $ aggregate  principal
amount of the  above-referenced  debentures  of the Company or the common  stock
issued on conversion of the  debentures  (the "Common  Stock"),  pursuant to the
Registration Statement on Form S-3 (File No. ) filed by the Company.

                  We hereby certify that the prospectus  delivery  requirements,
if any, of the  Securities  Act of 1933, as amended,  have been  satisfied  with
respect to the transfer  described above and the above named beneficial owner of
the debentures or the common stock is named as a selling  securityholder  in the
prospectus  dated , or in  amendments  or  supplements  thereto,  and  that  the
aggregate  principal  amount of the  debentures  or number of share common stock
transferred  are [all or a portion of] the debentures or the Common Stock listed
in such prospectus, as amended or supplemented, opposite such owner's name.

                                Very truly yours,

                                [name]

                                By:________________________________
                                   (Authorized Signature)

Dated:

                                      A-6<PAGE>
                                                                     Exhibit 4.1

                                                                     Royal Ahold
                                                               Supervisory Board

Mr. D.G. Eustace

                                             Albert Heijnweg 1, 1507 EH Zaandam
                                             P.O. Box 3050, 1500 HR Zaandam
                                             The Netherlands
                                             Telefax +31 75 659 83 53
                                             Telephone +31 7565991 11
                                             Direct dial +31 7565956 25

March 5, 2003

Dear Mr. Eustace:

We are pleased to confirm our agreement regarding your appointment to part-time
member of the Royal Ahold Executive Board for a definite period of time.

Appointment
You will be appointed to member of the Executive Board with the title of interim
CFO of Royal Ahold for a limited period of six to twelve months, starting from
March 10th 2003. Ample before the end of the first six months, we will decide
about the remaining six months or part of these remaining six month, in close
consultation with you.

Both parties have the right to terminate this agreement preliminary upon one
month written notice.

As member of the Executive Board you will carry full joint responsibility for
all activities of Royal Ahold together with the other members of the Board. Your
initial specific responsibilities and accountabilities as the interim CFO will
be determined in consultation with Mr. De Ruiter and the Executive Board.

Remuneration
Your fixed gross base salary will be: (euro) 805,000.-- on an annual base,
payable in The Netherlands in four weekly equal installments.

At the end of your appointment, the Supervisory Board will decide upon a
discretionary bonus.

Up front you will receive 100,000 Ahold shares. Shares means: the shares of
common stock of Koninklijke Ahold NV., as listed and traded on the Amsterdam
Stock Exchange. Any tax consequences are for your account.

You will be paid expense compensation (to cover small expenses) of(euro)
8,850.-- (tax free) annually, payable in The Netherlands in four weekly equal
installments. All other business expense is payable by the company.

                                         Registered names Koninklijke Ahold nv
                                         Trade Register Zaandam No. 35000363

                                     Page 1

<PAGE>

You will have free usage of a suitable car, as well as the services of a company
driver.

Ahold will offer you tax assistance in relation to your employment income from
Ahold, in order to ensure tax optimalization. This tax assistance fee will be
paid by the company.

All reasonable expenses for telephone installation and usage will be for the
account of Ahold.

Place of assignment
For this assignment you will be located at Ahold's corporate headquarters in
Zaandam, The Netherlands. Ahold will pay your temporary housing expenses in The
Netherlands.

This employment contract is subject to Dutch law.

We wish you all the best in your new and challenging position and express our
confidence that you will contribute to the future success of our corporation.

Would you be so kind to return the enclosed copy duly signed as confirmation of
your agreement with the above.

On behalf of the Supervisory Board,

Yours faithfully,                                      For approval

/s/ Ir. H. de Ruiter                                   /s/ D.G. Eustace
------------------------                               ------------------------
Ir. H. de Ruiter                                       D.G. Eustace
Chairman of the Supervisory Board

                                     Page 2

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