Document:

Non-Competition & Confidentiality Agreement dated February 21, 01, Gina DiGioia

 Exhibit 10.37 
 

 
 Alloy Online, Inc. 
 Non-Competition and Confidentiality Agreement 
 February 21, 2001 
 Gina DiGioia 
 210 East 88th Street, Apt. 3A 
 New York, NY 10128 

Dear Gina: 
 In order to accept
your offer of employment with Alloy Online, Inc. (the “Company”, which term shall include any subsidiaries or affiliates of Alloy Designs, Inc.), you must sign and return this Non-Competition and Confidentiality Agreement (the
“Agreement”). No provision of this Agreement shall be construed to create an express or implied employment contract, or a promise of employment for a specific period of time, and the Company may terminate your employment at any time, with
or without cause (i.e., you are an “at-will” employee). 
 As you know, the Company has by letter made you an offer of employment which sets forth
the terms and conditions of your proposed employment with the Company, including your initial pay and benefits. 
 In
consideration of the employment currently offered to you by the Company, you agree to the following: 
  

	1.	Confidentiality: 

 The Company has developed,
uses and maintains trade secrets and other confidential and proprietary information including, without limitation, training materials, product information, personnel information relating to Company employees, operating procedures, marketing
information, profit and loss information, inventory strategy, product costs, gross profit margins, selling strategies, client lists, supplier information, and customer information (the “Confidential Information”), and the Company has taken
and shall continue to 

 
take, and expects you to take, all reasonable measures to protect the confidentiality of such Confidential Information. 
 You acknowledge that during your employment with the Company you will have direct access to and knowledge of the Confidential Information, and you
acknowledge that if you become employed or affiliated with any competitor of the Company in violation of your obligations in Section 2 of this Agreement, it is inevitable that you would disclose the Company’s Confidential Information to
such competitor. You covenant and agree that all such Confidential Information is and shall remain the sole property of the Company and that you will hold in strictest confidence, and will not (except as required in the course of your employment
with the Company) disclose to any business, firm, entity or person, either directly or indirectly, any of the Confidential Information. You further agree that you will return all such Confidential Information (regardless of how it is maintained) and
any copies thereof, to the Company within three days of the termination of your employment, whether voluntary or involuntary and regardless of the reason for termination. The terms of this paragraph are in addition to, and not in lieu of any legal
or other contractual obligations that you may have relating to the protection of the Company’s Confidential Information. The terms of this paragraph shall survive indefinitely the termination of this Agreement and/or your employment with the
Company. 
  

	2.	Non-Competition and Non-Solicitation: 

 You
acknowledge that the Company has invested substantial time, money and resources in the development and retention of its customers, accounts and Confidential Information, and further acknowledge that during the course of your employment you will be
introduced to customers and accounts of the Company. You acknowledge and agree that any and all “goodwill” associated with any customer or account belongs exclusively to the Company including, but not limited to, any goodwill created as a
result of direct or indirect contacts or relationships between yourself and any customers or accounts of the Company. 
 In recognition of
this and as a condition of your initial (and any continued) employment with the Company, you covenant and agree as follows: 
  

	 	2.1	 Definition of Competitive Business. I understand and acknowledge that the Company’s and Alloy’s business interests are world-wide because the
Company’s and Alloy’s products and/or services are sold in countries around the world and the Company’s and Alloy’s competitors similarly operate from and market their products and/or services in many locations around the world.
In order to protect the Company’s and Alloy’s interests wherever they may be affected by the matters addressed in this Agreement, wherever it is used in this Agreement the term “Competitive Business” means any business engaged in
by the Company from 

	 	 
time to time anywhere in the world and any other business anywhere in the world which engages or plans to engage in (i) the sale, distribution or
licensing of merchandise (including, but not limited to, apparel, accessories, footwear, cosmetics, room furnishings and action sporting goods) through catalogue (catalog) direct marketing to teenagers and young adults, in any media now existing or
hereafter developed or which engages or plans to engage in Internet-based commerce and/or community building targeted specifically towards teenagers and young adults and/or (ii) marketing services and market research relating to the sale,
distribution or licensing of merchandise (including, but not limited to, apparel, accessories, footwear, cosmetics, room furnishings and action sporting goods) and services to teenagers and young adults. 

  

	 	2.2	Non-Competition. I acknowledge that my employment or engagement by the Company will give me access to the Confidential Information, and that my knowledge of the Confidential
Information will enable me to put the Company at a significant competitive disadvantage if I am employed or engaged by or become involved in a Competitive Business. Accordingly, during the term of my employment or engagement by the Company and for
the periods set out below following my employment or engagement by the Company, I will not, without the prior written consent of the Company, directly or indirectly, individually or in partnership or in conjunction with any other entity:

  

	 	(a)	for a period of 12 months after the date of termination of my employment or engagement with the Company (regardless of the reason for the termination), be engaged directly or
indirectly, in any manner whatsoever, including, without limitation, either individually or in partnership, jointly or in conjunction with any other person, or as an employee, consultant, adviser, principal, agent, member or proprietor in any
Competitive Business; 

  

	 	(b)	For a period of 12 months after the date of termination of my employment or engagement with the Company, advise, invest in, lend money to, guarantee the debts or obligations of, or
otherwise have any other financial interest in any Competitive Business. 

  

	 	2.3	 No Solicitation of Clients and Suppliers. I acknowledge the importance to the business carried on by the Company of the client and supplier relationships
developed by it and the unique opportunity that my employment or engagement and my access to the Confidential Information offers to interfere with these 

	 	 
relationships. Accordingly, I will not for a period of 12 months after the termination of my employment or engagement with the Company, directly or
indirectly, contact or solicit any person who I know to be a prospective, current or former client or supplier of the Company for the purpose of selling to such client or buying from such supplier any products or services which are the same as or
substantially similar to, or in any way competitive with, the products or services sold or purchased by the Company during my employment or engagement or at the end thereof, as the case may be. 

  

	 	2.4	No Solicitation of Employees. I acknowledge the importance to the business carried on by the Company of the human resources engaged and developed by it and the unique access
that my employment or engagement offers to interfere with these resources. Accordingly, I will not while employed or engaged by the Company and for a period of 12 months after the termination of my employment or engagement with the Company, induce
or solicit or assist any third party in inducing or soliciting any employee or consultant of the Company who was employed by the Company at the time of my termination or who became employed during the 12 months immediately following my termination,
to leave the Company or to accept employment or engagement elsewhere. 

  

	3.	Provisions Necessary and Reasonable: 

 You
agree that (i) the provisions of Sections 1 and 2 are necessary and reasonable to protect the Company’s Confidential Information and goodwill; (ii) the specific time, geography and scope provisions set forth in Section 2 are
reasonable and necessary to protect the Company’s business interests; and (iii) in the event of your breach of any of your agreements set forth in Sections 1 and 2, the Company would suffer substantial irreparable harm and that the Company
would not have an adequate remedy at law for such breach. In recognition of the foregoing, you agree that in the event of a breach or threatened breach of any of these covenants, in addition to such other remedies as the Company may have at law,
without posting any bond or security, the Company shall be entitled to seek and obtain equitable relief, in the form of specific performance, or temporary, preliminary or permanent injunctive relief, or any other equitable remedy which then may be
available. The seeking of such injunction or order shall not affect the Company’s right to seek and obtain damages or other equitable relief on account of any such actual or threatened breach. 
  

	4.	Choice of Law; Enforceability; Waiver of Jury Trial: 

 You acknowledge that a substantial portion of the Company’s business is based out of and directed from the State of New York, where the CompanyEmployment Offer Letter dated February 20, 2006, Gary Yusko

 Exhibit 10.38 
 

 
 Alloy, Inc. 
 Offer Letter 
 February 20, 2006 
 Gary J. Yusko 
 9 Nottingham Road 
 Livingston, NJ 07039 
 Dear Gary: 
 On behalf of Alloy, Inc. (the “Company”), I am very pleased to provide you with the terms and conditions of your employment by Company. The following sets forth the proposed terms and conditions of
the Company’s offer to employ you. We hope that you choose to join the Company and look forward to a mutually beneficial relationship. 
 1.
Position: Your initial position will be Chief Financial Officer based out of our office located in New York, NY. Your location is subject to change at the discretion of the Company. Should a location change be greater than
60 miles from its current New York City location, the Company will pay for normal and reasonable re-location costs. As the Company’s employee, we expect you to devote your full time and energies to the business and affairs of the Company, and
to perform any and all duties and responsibilities associated with this position and as may be reasonably assigned to you by the Company. In addition to your primary duties, you shall perform such other services for the Company as may be reasonably
assigned to you from time to time by the Company consistent with your CFO position. Your performance will be reviewed on a periodic basis as long as you remain employed by the Company. You acknowledge that you will be named as an “Executive
Officer” as well as the Company’s Principal Accounting Officer and Principal Financial Officer in the filings made by the Company pursuant to the provisions of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
and as such you will be subject to various requirements and restrictions imposed on executive officers by the Exchange Act and Company policies, including the reporting requirements of Section 16(a) of the Exchange Act, the
“short-swing” profit rules of Section 16(b) of the Exchange Act and the policies about trading in Company securities set forth in the “Securities Trades By Alloy, Inc. Personnel” policy statement. 
 2. Starting Date/Nature of Relationship: If you accept this offer, your employment with the Company shall commence on March 6, 2006.
Except as expressly set forth herein, this letter does not create an employment contract or other agreement and is not a promise of employment for a specific period of time. 
 151 W 26th Street • New York, New York 10001 •
212.244.4307 • 212.329.8444 [fax] • www.alloymarketing.com 

 

 
 You understand that your employment is at-will and either party may terminate the relationship with or without cause at any
time. 
 3. Compensation and Benefits: Your initial base pay shall be $242,000 per annum, ($9,307.69 on a bi-weekly basis). This
level of base pay will be reviewed at least annually. 
 (a) In addition to your compensation, you will be eligible to receive a bonus tied
to profit improvement and split 50/50 between cash and restricted stock with such restricted stock subject to the Company having a right of repurchase which right lapses equally over a three year period. Any restricted stock issuance shall be
subject to the plan under which such restricted stock was issued and shall be contingent upon you executing a restricted stock agreement with the Company. 
 (b) In addition, you shall receive an initial grant of 55,000 stock options with a 10-year term. These options will vest one-third per year on the anniversary date of the date of grant, will have an exercise price
equal to the fair market value of the Company’s common stock on the date of grant and shall be subject to the terms and conditions of the plan under which they were issued. 
 (c) If the Company terminates you without Cause (as hereinafter defined), you will be eligible for 1 year’s base salary as severance. In addition,
any options that have been allocated but not vested would become immediately exercisable and any restricted stock that has been issued, but still subject to rights of repurchase will continue to vest on its regular schedule. 
 (d) In addition to your compensation, you will be entitled to receive the various benefits offered by the Company to its employees. Benefits offered may
be modified or changed from time to time at the discretion of the Company. Where a particular benefit is subject to a formal plan, eligibility to participate in and receive any particular benefit of the plan is governed solely by the applicable plan
document. Should you ever have any questions, you should ask Alloy’s Human Resources Department for a copy of the applicable plan document. 
 (e) If there is a Change of Control (as hereinafter defined) and subsequent to that Change of Control the Company significantly reduces your role or responsibilities then you would be eligible for 1 year’s base salary as severance
should you decide to resign. In addition, in this scenario any options that have been allocated but not vested would become immediately exercisable and any restricted stock that has been issued, but still subject to rights of repurchase will
continue to vest on its regular schedule. 
 Definition of “Cause”. For the purposes of this Agreement, “Cause”
shall mean (i) you have willfully failed, refused or habitually neglected to carry out or to perform the reasonable duties required of you hereunder and such performance continues for a period of more than 30 days after notice has been provided
to 
 151 W 26th Street • New York, New York 10001 • 212.244.4307 • 212.329.8444 [fax] • www.alloymarketing.com 

 

 
 you; (ii) your conviction of a felony or a crime involving moral turpitude, either in connection with the performance of
your obligations to the Company or which otherwise shall adversely affect your ability to perform such obligations, shall materially adversely affect the business activities, reputation, goodwill or image of the Company; or (iii) breach of the
terms of the Non-Competition Agreement between the Company and you dated as of the same date (the “Non-Competition Agreement”). 
 Definition of “Change of Control” means the occurrence of any of the following events: (i) any “Person” (as such term is used in Sections 13(d) and 14(d) of the Exchange Act) becomes the “Beneficial
Owner” (as defined in Rule 13d-3 under said Act), directly or indirectly, of securities of the Company representing 50% or more of the total voting power represented by the Company’s then outstanding voting securities (excluding for this
purpose the Company or its Affiliates or any employee benefit plan of the Company) pursuant to a transaction or a series of related transactions which the Board of Directors does not approve; or (ii) a merger or consolidation of the Company
whether or not approved by the Board of Directors, other than a merger or consolidation which would result in the voting securities of the Company outstanding immediately prior thereto continuing to represent (either by remaining outstanding or by
being converted into voting securities of the surviving entity or the parent of such corporation) at least 50% of the total voting power represented by the voting securities of the Company or such surviving entity or parent of such corporation
outstanding immediately after such merger or consolidation, or the stockholders of the Company approve an agreement for the sale or disposition by the Company of all or substantially all of the Company’s assets. 
 4. Confidentiality: The Company considers the protection of its confidential information, proprietary materials and goodwill to be extremely important.
Consequently, as a condition of this offer of employment and your subsequent employment, you are required to sign the Non-Competition Agreement enclosed with this letter. 
 5. Miscellaneous: This letter, together with the Agreement, constitutes our entire offer regarding the terms and conditions of your employment by the Company. It supersedes any prior agreements, or other
promises or statements (whether oral or written) regarding the offered terms of employment. The terms of your employment shall be governed by the law of the State of New York, without giving effect to its principles of conflicts of laws. By
accepting this offer of employment, you expressly agree that any action, demand, claim or counterclaim concerning any aspect of your employment relationship with the Company shall be resolved by a judge alone, and you waive and forever renounce your
right to a trial before a civil jury. Company and/or Alloy reserves the right to alter any of the terms of employment set forth in this letter as needed except the Company can not reduce the initial base salary, or eliminate provision 3 (c) and
3 (e) of this letter. 
 151 W 26th Street • New York, New York 10001 • 212.244.4307 • 212.329.8444 [fax] • www.alloymarketing.com 

 

 
 You may accept this offer of employment and the terms and conditions hereof by signing the enclosed additional
copy of this letter and the Agreement, which execution will evidence your agreement with the terms and conditions set forth herein and therein. 
 I am delighted to offer you the opportunity to join our Company, and we look forward to your joining us. 
  

					
	 ALLOY, INC.

		
	By:	 	 /s/ James Johnson

		 	James Johnson – COO
	
	 Accepted and Agreed:

		
	By:	 	 /s/ Gary J. Yusko

		 	Print Name: 	 	Gary J. Yusko

 Date: 3/1/06 
 151 W 26th Street • New York, New York 10001 •
212.244.4307 • 212.329.8444 [fax] • www.alloymarketing.com

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