Document:

Form of Stock Option Grant Notice and Stock Option Agreement (non-accelerated)

 EXHIBIT 10.4 
 ALLOY, INC. 
 Stock Option Grant Notice 
 Stock Option Grant under the Company’s 
 2007 Employee, Director and Consultant
Stock Incentive Plan 
  

							
	1.	  	Name and Address of Participant:	  	  
	  	
		  		  	  
	  	
		  		  	  
	  	
				
	2.	  	Date of Grant:	  	  
	  	
				
	3.	  	Type of Grant:	  	Non-qualified Options	  	
				
	4.	  	Maximum Number of Shares for
which this Option is exercisable:	  	  
	  	
				
	5.	  	Exercise (purchase) price per share:	  	[INSERT EXERCISE PRICE]	  	
				
	6.	  	Option Expiration Date:	  	[INSERT EXPIRATION DATE, 10 yrs from grant date]	  	
		
	7.	  	Vesting Schedule: This Option shall become exercisable (and the Shares issued upon exercise shall be vested) as follows:

 [Insert Vesting Schedule] 
 The Company and the Participant acknowledge receipt of this Stock Option Grant Notice and agree to the terms of the Stock Option Agreement attached hereto and incorporated by reference herein, the Company’s 2007
Employee, Director and Consultant Stock Incentive Plan and the terms of this Option Grant as set forth above. 
 Unless you provide notice to the Company
within 30 days of receipt of this notice, you shall be deemed to have accepted the option grant subject to the terms and conditions in the attached Stock Option Agreement and the Company’s 2007 Employee, Director and Consultant Stock Incentive
Plan. 
 You may obtain a copy of the Company’s 2007 Employee, Director and Consultant Stock Incentive Plan and Plan Description by logging in to
your Merrill Lynch personal account and visiting https://www9.benefits.ml.com/menu/BOLMenu.asp?MenuListId=10001&&. Also, you may obtain a copy of the Company’s most recent Annual Report and other information delivered to Company
shareholders by visiting the investor relations pages of www.alloymarketing.com. 
  

			
	ALLOY, INC.
		
	 By:
	 	  

	Name:	 	  

  

 A-1 

 ALLOY, INC. 
 STOCK OPTION AGREEMENT- INCORPORATED TERMS AND CONDITIONS 
 AGREEMENT made as of the date of
grant set forth in the Stock Option Grant Notice between Alloy, Inc. (the “Company”), a Delaware corporation, and the name of the person who appears on the stock option grant notice (the “Participant”). 
 WHEREAS, the Company desires to grant to the Participant an Option to purchase shares of its common stock, $0.01 par value per share (the
“Shares”), under and for the purposes set forth in the Company’s 2007 Employee, Director and Consultant Stock Incentive Plan (the “Plan”); 
 WHEREAS, the Company and the Participant understand and agree that any terms used and not defined herein have the same meanings as in the Plan; and 
 WHEREAS, the Company and the Participant each intend that the Option granted herein shall be of the type set forth in the Stock Option Grant Notice.

 NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other good and valuable consideration, the parties
hereto agree as follows: 
  

	 	1.	GRANT OF OPTION. 

 The Company hereby grants to the
Participant the right and option to purchase all or any part of an aggregate of the number of shares set forth in the Stock Option Grant Notice, on the terms and conditions and subject to all the limitations set forth herein, under United States
securities and tax laws, and in the Plan, which is incorporated herein by reference. The Participant acknowledges receipt of a copy of the Plan. 
  

	 	2.	EXERCISE PRICE. 

 The exercise price of the Shares
covered by the Option shall be the amount per Share set forth in the Stock Option Grant Notice, subject to adjustment, as provided in the Plan, in the event of a stock split, reverse stock split or other events affecting the holders of Shares after
the date hereof (the “Exercise Price”). Payment shall be made in accordance with Paragraph 9 of the Plan. 
  

	 	3.	EXERCISABILITY OF OPTION. 

 Subject to the terms and
conditions set forth in this Agreement and the Plan, the Option granted hereby shall become exercisable as set forth in the Stock Option Grant Notice which rights are cumulative and are subject to the other terms and conditions of this Agreement and
the Plan. 
  

	 	4.	TERM OF OPTION. 

 This Option shall terminate ten
years from the date of this Agreement or, if this Option is designated in the Stock Option Grant Notice as an ISO and the Participant owns as of the date hereof more than 10% of the total combined voting power of all classes of capital stock of the
Company or an Affiliate, five years from the date of this Agreement, but shall be subject to earlier termination as provided herein or in the Plan. 
  

 A-2 

 If the Participant ceases to be an employee, director or consultant of the Company or of an Affiliate
(for any reason other than the death or Disability of the Participant), the Option may be exercised, if it has not previously terminated, within three months after the date the Participant ceases to provide service to the Company or an Affiliate, or
within the originally prescribed term of the Option, whichever is earlier, but may not be exercised thereafter except as set forth below. In such event, the Option shall be exercisable only to the extent that the Option has become exercisable and is
in effect at the date of such cessation of service. 
 If this Option is designated in the Stock Option Grant Notice as an ISO and the
Participant ceases to be an employee of the Company or of an Affiliate but continues after termination of employment to provide service to the Company or an Affiliate as a consultant, this Option shall continue to vest in accordance with
Section 3 above as if this Option had not terminated until the Participant is no longer providing services to the Company. In such case, this Option shall automatically convert and be deemed a Non-Qualified Option as of the date that is three
months from termination of the Participant’s employment and this Option shall continue on the same terms and conditions set forth herein until such Participant is no longer providing service to the Company or an Affiliate. 
 Notwithstanding the foregoing, in the event of the Participant’s Disability or death within three months after the termination of service, the
Participant or the Participant’s Survivors may exercise the Option within one year after the date of the Participant’s termination of service, but in no event after the date of expiration of the term of the Option. 
 In the event of the Disability of the Participant, as determined in accordance with the Plan, the Option shall be exercisable within one year after the
Participant’s termination of service or, if earlier, within the term originally prescribed by the Option. In such event, the Option shall be exercisable: 
  

	 	(a)	to the extent that the Option has become exercisable but has not been exercised as of the date of Disability; and 

  

	 	(b)	in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of Disability of any additional vesting rights that would have
accrued on the next vesting date had the Participant not become Disabled. The proration shall be based upon the number of days accrued in the current vesting period prior to the date of Disability. 

 In the event of the death of the Participant while providing service to the Company or an Affiliate, the Option shall be exercisable by the
Participant’s Survivors within one year after the date of death of the Participant or, if earlier, within the originally prescribed term of the Option. In such event, the Option shall be exercisable: 
  

	 	(x)	to the extent that the Option has become exercisable but has not been exercised as of the date of death; and 

  

	 	(y)	in the event rights to exercise the Option accrue periodically, to the extent of a pro rata portion through the date of death of any additional vesting rights that would have
accrued on the next vesting date had the Participant not died. The proration shall be based upon the number of days accrued in the current vesting period prior to the Participant’s date of death. 

  

 A-3 

	 	5.	METHOD OF EXERCISING OPTION. 

 Subject to the terms
and conditions of this Agreement, the Option may be exercised online through the Merrill Lynch system at [INSERT WEB ADDRESS]. Alternatively, the Option may be exercised by written notice to the Company or its designee, in substantially the form of
Exhibit A attached hereto. Such notice shall state the number of Shares with respect to which the Option is being exercised and shall be signed by the person exercising the Option. Payment of the Exercise Price for such Shares shall be
made in accordance with Paragraph 9 of the Plan. The Company shall deliver such Shares as soon as practicable after the notice shall be received, provided, however, that the Company may delay issuance of such Shares until completion of any action or
obtaining of any consent, which the Company deems necessary under any applicable law (including, without limitation, state securities or “blue sky” laws). The Shares as to which the Option shall have been so exercised shall be registered
in the Company’s share register in the name of the person so exercising the Option (or, if the Option shall be exercised by the Participant and if the Participant shall so request in the notice exercising the Option, shall be registered in the
Company’s share register in the name of the Participant and another person jointly, with right of survivorship) and shall be delivered as provided above to or upon the written order of the person exercising the Option. In the event the Option
shall be exercised, pursuant to Section 4 hereof, by any person other than the Participant, such notice shall be accompanied by appropriate proof of the right of such person to exercise the Option. All Shares that shall be purchased upon the
exercise of the Option as provided herein shall be fully paid and nonassessable. 
  

	 	6.	PARTIAL EXERCISE. 

 Exercise of this Option to the
extent above stated may be made in part at any time and from time to time within the above limits, except that no fractional share shall be issued pursuant to this Option. 
  

	 	7.	NON-ASSIGNABILITY. 

 The Option shall not be
transferable by the Participant otherwise than by will or by the laws of descent and distribution. If this Option is a Non-Qualified Option then it may also be transferred pursuant to a qualified domestic relations order as defined by the Code or
Title I of the Employee Retirement Income Security Act or the rules thereunder and the Participant, with the approval of the Administrator, may transfer the Option for no consideration to or for the benefit of the Participant’s Immediate Family
(including, without limitation, to a trust for the benefit of the Participant’s Immediate Family or to a partnership or limited liability company for one or more members of the Participant’s Immediate Family), subject to such limits as the
Administrator may establish, and the transferee shall remain subject to all the terms and conditions applicable to the Option prior to such transfer and each such transferee shall so acknowledge in writing as a condition precedent to the
effectiveness of such transfer. The term “Immediate Family” shall mean the Participant’s spouse, former spouse, parents, children, stepchildren, adoptive relationships, sisters, brothers, nieces, nephews and grandchildren (and, for
this purpose, shall also include the Participant.) Except as provided above in this paragraph, the Option shall be exercisable, during the Participant’s lifetime, only by the Participant (or, in the event of legal incapacity or incompetency, by
the Participant’s guardian or representative) and shall not be assigned, pledged or hypothecated in any way (whether by operation of law or otherwise) and shall not be subject to execution, attachment or similar process. Any attempted transfer,
assignment, pledge, hypothecation or other disposition of the Option or of any rights granted hereunder contrary to the provisions of this Section 7, or the levy of any attachment or similar process upon the Option shall be null and void.

  

	 	8.	NO RIGHTS AS STOCKHOLDER UNTIL EXERCISE. 

 The
Participant shall have no rights as a stockholder with respect to Shares subject to this Agreement until registration of the Shares in the Company’s share register in the name of the Participant. 

  

 A-4 

 
Except as is expressly provided in the Plan with respect to certain changes in the capitalization of the Company, no adjustment shall be made for dividends
or similar rights for which the record date is prior to the date of such registration. 
  

	 	9.	ADJUSTMENTS. 

 The Plan contains provisions covering
the treatment of Options in a number of contingencies such as stock splits and mergers. Provisions in the Plan for adjustment with respect to stock subject to Options and the related provisions with respect to successors to the business of the
Company are hereby made applicable hereunder and are incorporated herein by reference.  
  

	 	10.	TAXES. 

 The Participant acknowledges that any
income or other taxes due from him or her with respect to this Option or the Shares issuable pursuant to this Option shall be the Participant’s responsibility. 
 If this Option is designated in the Stock Option Grant Notice as an ISO and there is a Disqualifying Disposition (as defined in Section 15 below) or if the Option is converted into a Non-Qualified Option and such
Non-Qualified Option is exercised, the Participant agrees that the Company may withhold from the Participant’s remuneration, if any, the minimum statutory amount of federal, state and local withholding taxes attributable to such amount that is
considered compensation includable in such person’s gross income. At the Company’s discretion, the amount required to be withheld may be withheld in cash from such remuneration, or in kind from the Shares otherwise deliverable to the
Participant on exercise of the Option. The Participant further agrees that, if the Company does not withhold an amount from the Participant’s remuneration sufficient to satisfy the Company’s income tax withholding obligation, the
Participant will reimburse the Company on demand, in cash, for the amount under-withheld. 
  

	 	11.	PURCHASE FOR INVESTMENT. 

 Unless the offering and
sale of the Shares to be issued upon the particular exercise of the Option shall have been effectively registered under the Securities Act of 1933, as now in force or hereafter amended (the “1933 Act”), the Company shall be under no
obligation to issue the Shares covered by such exercise unless and until the following conditions have been fulfilled: 
  

	 	(a)	The person(s) who exercise the Option shall warrant to the Company, at the time of such exercise, that such person(s) are acquiring such Shares for their own respective accounts,
for investment, and not with a view to, or for sale in connection with, the distribution of any such Shares, in which event the person(s) acquiring such Shares shall be bound by the provisions of the following legend which shall be endorsed upon any
certificate(s) evidencing the Shares issued pursuant to such exercise: 

 “The shares represented by this certificate have
been taken for investment and they may not be sold or otherwise transferred by any person, including a pledgee, unless (1) either (a) a Registration Statement with respect to such shares shall be effective under the Securities Act of 1933,
as amended, or (b) the Company shall have received an opinion of counsel satisfactory to it that an exemption from registration under such Act is then available, and (2) there shall have been compliance with all applicable state securities
laws;” and 
  

 A-5 

	 	(b)	If the Company so requires, the Company shall have received an opinion of its counsel that the Shares may be issued upon such particular exercise in compliance with the 1933 Act
without registration thereunder. Without limiting the generality of the foregoing, the Company may delay issuance of the Shares until completion of any action or obtaining of any consent, which the Company deems necessary under any applicable law
(including without limitation state securities or “blue sky” laws). 

  

	 	12.	RESTRICTIONS ON TRANSFER OF SHARES. 

 12.1 The Participant agrees that in the event the Company proposes to offer for sale to the public
any of its equity securities and such Participant is requested by the Company and any underwriter engaged by the Company in connection with such offering to sign an agreement restricting the sale or other transfer of Shares, then it will promptly
sign such agreement and will not transfer, whether in privately negotiated transactions or to the public in open market transactions or otherwise, any Shares or other securities of the Company held by him or her during such period as is determined
by the Company and the underwriters, not to exceed 180 days following the closing of the offering, plus such additional period of time as may be required to comply with Marketplace Rule 2711 of the National Association of Securities Dealers, Inc. or
similar rules thereto (such period, the “Lock-Up Period”). Such agreement shall be in writing and in form and substance reasonably satisfactory to the Company and such underwriter and pursuant to customary and prevailing terms and
conditions. Notwithstanding whether the Participant has signed such an agreement, the Company may impose stop-transfer instructions with respect to the Shares or other securities of the Company subject to the foregoing restrictions until the end of
the Lock-Up Period.1 
 12.2 The
Participant acknowledges and agrees that neither the Company, its shareholders nor its directors and officers, has any duty or obligation to disclose to the Participant any material information regarding the business of the Company or affecting the
value of the Shares before, at the time of, or following a termination of the employment of the Participant by the Company, including, without limitation, any information concerning plans for the Company to make a public offering of its securities
or to be acquired by or merged with or into another firm or entity. 
  

	 	13.	NO OBLIGATION TO MAINTAIN RELATIONSHIP. 

 The
Company is not by the Plan or this Option obligated to continue the Participant as an employee, director or consultant of the Company or an Affiliate. The Participant acknowledges: (i) that the Plan is discretionary in nature and may be
suspended or terminated by the Company at any time; (ii) that the grant of the Option is a one-time benefit which does not create any contractual or other right to receive future grants of options, or benefits in lieu of options;
(iii) that all determinations with respect to any such future grants, including, but not limited to, the times when options shall be granted, the number of shares subject to each option, the option price, and the time or times when each option
shall be exercisable, will be at the sole discretion of the Company; (iv) that the Participant’s participation in the Plan is voluntary; (v) that the value of the Option is an extraordinary item of compensation which is outside the
scope of the Participant’s employment or consulting contract, if any; and (vi) that the Option is not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement benefits or similar payments. 

	 1
	 This language was revised because of the changes in the NASD rules requiring the
lockup period to be extended in some instances up to an additional 30 days. 

  

 A-6 

	 	14.	IF OPTION IS INTENDED TO BE AN ISO. 

 If this Option
is designated in the Stock Option Grant Notice as an ISO so that the Participant (or the Participant’s Survivors) may qualify for the favorable tax treatment provided to holders of Options that meet the standards of Section 422 of the Code
then any provision of this Agreement or the Plan which conflicts with the Code so that this Option would not be deemed an ISO is null and void and any ambiguities shall be resolved so that the Option qualifies as an ISO. Nonetheless, if the Option
is determined not to be an ISO, the Participant understands that neither the Company nor any Affiliate is responsible to compensate him or her or otherwise make up for the treatment of the Option as a Non-Qualified Option and not as an ISO. The
Participant should consult with the Participant’s own tax advisors regarding the tax effects of the Option and the requirements necessary to obtain favorable tax treatment under Section 422 of the Code, including, but not limited to,
holding period requirements. 
 Notwithstanding the foregoing, to the extent that the Option is designated in the Stock Option Grant Notice
as an ISO and is not deemed to be an ISO pursuant to Section 422(d) of the Code because the aggregate fair market value (determined as of the date hereof) of any of the Shares with respect to which this ISO is granted becomes exercisable for
the first time during any calendar year in excess of $100,000, the portion of the Option representing such excess value shall be treated as a Non-Qualified Option and the Participant shall be deemed to have taxable income measured by the difference
between the then fair market value of the Shares received upon exercise and the price paid for such Shares pursuant to this Agreement. 
  

	 	15.	NOTICE TO COMPANY OF DISQUALIFYING DISPOSITION OF AN ISO. 

 If this Option is designated in the Stock Option Grant Notice as an ISO then the Participant agrees to notify the Company in writing immediately after the Participant makes a Disqualifying Disposition of any of the Shares acquired pursuant
to the exercise of the ISO. A Disqualifying Disposition is defined in Section 424(c) of the Code and includes any disposition (including any sale) of such Shares before the later of (a) two years after the date the Participant was granted
the ISO or (b) one year after the date the Participant acquired Shares by exercising the ISO, except as otherwise provided in Section 424(c) of the Code. If the Participant has died before the Shares are sold, these holding period
requirements do not apply and no Disqualifying Disposition can occur thereafter. 
  

	 	16.	NOTICES. 

 Any notices required or permitted by the
terms of this Agreement or the Plan shall be given by recognized courier service, facsimile, registered or certified mail, return receipt requested, addressed as follows: 
 If to the Company: 
 Alloy, Inc. 
 151 W. 26th Street 
 11th Floor 
 New York, NY 10001 
 Attention: VP/ Human Resources 
 If to the
Participant at the address set forth on the Stock Option Grant Notice. 
 or to such other address or addresses of which notice in the same manner has
previously been given. Any such notice shall be deemed to have been given upon the earlier of receipt, one business day following delivery to a recognized courier service or three business days following mailing by registered or certified mail.

  

 A-7 

	 	17.	GOVERNING LAW. 

 This Agreement shall be construed
and enforced in accordance with the law of the State of Delaware, without giving effect to the conflict of law principles thereof. For the purpose of litigating any dispute that arises under this Agreement, the parties hereby consent to
exclusive jurisdiction in New York and agree that such litigation shall be conducted in the state courts of New York, New York or the federal courts of the United States for the Southern District of New York. 
  

	 	18.	BENEFIT OF AGREEMENT. 

 Subject to the provisions of
the Plan and the other provisions hereof, this Agreement shall be for the benefit of and shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 
  

	 	19.	ENTIRE AGREEMENT. 

 This Agreement, together with
the Plan, embodies the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the subject matter hereof. No
statement, representation, warranty, covenant or agreement not expressly set forth in this Agreement shall affect or be used to interpret, change or restrict, the express terms and provisions of this Agreement, provided, however, in any event, this
Agreement shall be subject to and governed by the Plan. 
  

	 	20.	MODIFICATIONS AND AMENDMENTS. 

 The terms and
provisions of this Agreement may be modified or amended as provided in the Plan. 
  

	 	21.	WAIVERS AND CONSENTS. 

 Except as provided in the
Plan, the terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to the benefits of such terms or provisions. No such waiver or consent shall be
deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent shall be effective only in the specific instance and for the purpose for which
it was given, and shall not constitute a continuing waiver or consent. 
  

	 	22.	DATA PRIVACY. 

 By entering into this Agreement, the
Participant: (i) authorizes the Company and each Affiliate, and any agent of the Company or any Affiliate administering the Plan or providing Plan recordkeeping services, to disclose to the Company or any of its Affiliates such information and
data as the Company or any such Affiliate shall request in order to facilitate the grant of options and the administration of the Plan; (ii) waives any data privacy rights he or she may have with respect to such information; and
(iii) authorizes the Company and each Affiliate to store and transmit such information in electronic form. 
 [REMAINDER OF PAGE
INTENTIONALLY LEFT BLANK] 
  

 A-8 

 Exhibit A 
 NOTICE OF EXERCISE OF STOCK OPTION 
  

	TO:	Alloy, Inc. 

 Ladies and Gentlemen: 
 I hereby exercise my Stock Option to purchase
                     shares (the “Shares”) of the common stock, $0.01 par value, of Alloy, Inc. (the “Company”), at the
exercise price of $                     per share, pursuant to and subject to the terms of that Stock Option Grant Notice dated
                    , 200    . 
 I understand the nature of the investment I am making and the financial risks thereof. I am aware that it is my responsibility to have consulted with competent tax and legal advisors about the relevant national, state
and local income tax and securities laws affecting the exercise of the Option and the purchase and subsequent sale of the Shares. 
 I am
paying the option exercise price for the Shares as follows: 
  

					
	 	 	 	  	 
		 		  	

 Please issue the Shares (check one): 
  ̈ to me; or 
  ̈ to me and
                                        
    , as joint tenants with right of survivorship, 
 at the following address: 
  

							
	  
	  		  		  	
	  
	  		  		  	
	  
	  		  		  	

 My mailing address for shareholder communications, if different from the address listed above, is:

  

							
	  
	  		  		  	
	  
	  		  		  	
	  
	  		  		  	

  

	
	Very truly yours,
	  

	 Participant (signature)

	  

	 Print Name

	  

	 Date

	  

	 Social Security Number

  

 A-9Form of Restricted Stock Option Grant Notice and Restricted Stock- accelerated

 EXHIBIT 10.5 
 ALLOY, INC. 
 Restricted Stock Grant Notice 
 Grant of Restricted Stock under the Company’s 
 2007 Employee, Director and Consultant Stock Incentive Plan 
  

							
	1.	  	Name and Address of Participant:	  	  
	  	
		  		  	  
	  	
		  		  	  
	  	
				
	2.	  	Date of Grant:	  	  
	  	
				
	3.	  	Type of Grant:	  	Restricted Common Stock	  	
				
	4.	  	Number of Shares Granted:	  	  
	  	
		
	5.	  	Lapsing Schedule: The shares of Restricted Stock granted shall lapse and become fully transferable by Participant as follows:
		
		  	 •             ,
20    :                                  
       (            )

		
		  	 •             ,
20    :                                  
       (            )

		
		  	 •             ,
20    :                                  
       (            )

		
	6.	  	Effect of Termination Without “Cause”: In the event the Company terminates Participant’s employment or service without “Cause”, as more fully set forth in
the Restricted Stock Agreement attached hereto, the Company’s Lapsing Forfeiture Right with regard to the shares of Restricted Stock granted shall terminate and Participant’s ownership of all such shares shall become immediately and fully
vested.

 The Company and the Participant acknowledge receipt of this Restricted Stock Grant Notice and agree to the terms
of the Restricted Stock Agreement attached hereto and incorporated by reference herein, the Company’s 2007 Employee, Director and Consultant Stock Incentive Plan and the terms of this Restricted Stock Grant as set forth above. 
 UNLESS YOU RETURN A SIGNED ORIGINAL COPY OF THE ATTACHED RESTRICTED STOCK AGREEMENT (INCLUDING APPLICABLE EXHIBITS ATTACHED THERETO) TO THE COMPANY WITHIN TEN
(10) DAYS OF RECEIPT OF THIS NOTICE, YOU MAY BE DEEMED TO HAVE REJECTED THE RESTRICTED STOCK GRANT SET FORTH ABOVE. 
 You may obtain a copy of
the Company’s 2007 Employee, Director and Consultant Stock Incentive Plan and Plan Description by logging in to your Merrill Lynch personal account and visiting https://www9.benefits.ml.com/menu/BOLMenu.asp?MenuListId=10001&&.
Also, you may obtain a copy of the Company’s most recent Annual Report and other information delivered to Company shareholders by visiting the investor relations pages of www.alloymarketing.com. 
  

			
	ALLOY, INC.
		
	By:	 	  

	Name:	 	  

 RESTRICTED STOCK AGREEMENT 
 ALLOY, INC. 
 This AGREEMENT is made effective as of the
         day of                         ,
200     (the “Grant Date”), by and between Alloy, Inc. (the “Company”), a Delaware corporation, and
                                       
  (the “Participant”). 
 WHEREAS, the Company has adopted the Alloy, Inc. 2007 Employee, Director and Consultant Stock
Incentive Plan (the “Plan”) to promote the interests of the Company by providing an incentive for employees, directors and consultants of the Company or its Affiliates; 
 WHEREAS, pursuant to the provisions of the Plan, the Company desires to offer to the Participant shares of the Company’s common stock, $0.01 par
value per share (“Common Stock”), in accordance with the provisions of the Plan, all on the terms and conditions hereinafter set forth; 
 WHEREAS, Participant wishes to accept said offer; and 
 WHEREAS, the parties hereto understand and agree that any terms used and
not defined herein have the meanings ascribed to such terms in the Plan. 
 NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and for other good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 
 1. Terms of Grant. The Participant hereby accepts the offer of the Company to issue to the Participant, in accordance with the terms of the Plan
and this Agreement,                             
(            ) Shares of the Company’s Common Stock (such shares, subject to adjustment pursuant to Section 22 of the Plan and Subsection 2.1(f) hereof, the “Granted
Shares”) at a purchase price of $0.01 per share (the “Purchase Price”), receipt of which is hereby acknowledged by the Participant’s prior service to the Company and which amount will be reported as income on the
Participant’s W-2 for this calendar year. 
  

	 	2.1.	Forfeiture Provisions. 

 (a) Lapsing Forfeiture
Right. In the event that for any reason the Participant is no longer an employee, director or consultant of the Company or an Affiliate prior to
                             (the “Termination”), the Participant (or the Participant’s
Survivor) shall, on the date of Termination, immediately forfeit to the Company (or its designee) all of the Granted Shares which have not yet lapsed in accordance with the schedule set forth below (the “Lapsing Forfeiture Right”).

 The Company’s Lapsing Forfeiture Right is as follows: 
 (i) If the Participant’s Termination is prior to [the first anniversary of the Grant Date], all of the Granted Shares shall be
forfeited to the Company. 
 (ii) If the Participant’s Termination is on or after [the first anniversary of the Grant
Date] but prior to                             ,
        % of the Granted Shares shall be forfeited to the Company (rounded up to the next highest whole number of shares). 
  

 2 

 (iii) Notwithstanding the foregoing, in the event that the Participant is terminated by
the Company without Cause (as defined below), the Company’s Lapsing Forfeiture Right shall terminate, and the Participant’s ownership of all Granted Shares then owned by the Participant shall become fully vested. 
 For purposes of this provision Cause shall mean (i) the Participant has willfully failed, refused or habitually neglected to carry
out or to perform the reasonable duties required of him or her and such performance continues for a period of more than 30 days after notice has been provided to the Participant; (ii) the Participant’s conviction of a felony or a crime
involving moral turpitude, either in connection with the performance of the Participant’s obligations to the Company or which otherwise shall adversely affect the Participant’s ability to perform such obligations, or shall materially
adversely affect the business activities, reputation, goodwill or image of the Company; (iii) breach of the terms of a Non-Competition Agreement between the Company and the Participant; or (iv) the Participant’s employment is
terminated in connection with a Change of Control (as hereinafter defined) . 
 Change of Control shall mean 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. 
 (b) Effect of
Termination for Disability or upon Death. The following rules apply if the Participant’s Termination is by reason of Disability or death: to the extent the Company’s Lapsing Forfeiture Right has not lapsed as of the date of Disability
or death, as case may be, the Participant shall forfeit to the Company any or all of the Granted Shares subject to such Lapsing Forfeiture Right; provided, however, that the Company’s Lapsing Forfeiture Right shall be deemed to have lapsed to
the extent of a pro rata portion of the Granted Shares through the date of Disability or death, as would have lapsed had the Participant not become Disabled or died, as the case may be. The proration shall be based upon the number of days accrued in
such current vesting period prior to the Participant’s date of Disability or death, as the case may be. 
 (c) Escrow. The
certificates representing all Granted Shares acquired by the Participant hereunder which from time to time are subject to the Lapsing Forfeiture Right shall be delivered to the Company and the Company shall hold such Granted Shares in escrow as
provided in this Subsection 2.1(c). The Company shall promptly release from escrow and deliver to the Participant a certificate for the whole number of Granted Shares, if any, as to which the Company’s Lapsing Forfeiture Right has lapsed.
In the event of forfeiture to the Company of Granted Shares subject to the Lapsing Forfeiture Right, the Company shall release from escrow and cancel a certificate for the number of Granted Shares so forfeited. Any securities distributed in respect
of the Granted Shares held in escrow, including, without limitation, shares issued as a result of stock splits, stock dividends or other recapitalizations, shall also be held in escrow in the same manner as the Granted Shares. 
  

 3 

 (d) Prohibition on Transfer. The Participant recognizes and agrees that all Granted Shares which
are subject to the Lapsing Forfeiture Right may not be sold, transferred, assigned, hypothecated, pledged, encumbered or otherwise disposed of, whether voluntarily or by operation of law, other than to the Company (or its designee). However, the
Participant, with the approval of the Administrator, may transfer the Granted Shares for no consideration to or for the benefit of the Participant’s Immediate Family (including, without limitation, to a trust for the benefit of the
Participant’s Immediate Family or to a partnership or limited liability company for one or more members of the Participant’s Immediate Family), subject to such limits as the Administrator may establish, and the transferee shall remain
subject to all the terms and conditions applicable to this Agreement prior to such transfer and each such transferee shall so acknowledge in writing as a condition precedent to the effectiveness of such transfer. The term “Immediate
Family” shall mean the Participant’s spouse, former spouse, parents, children, stepchildren, adoptive relationships, sisters, brothers, nieces and nephews and grandchildren (and, for this purpose, shall also include the Participant.
The Company shall not be required to transfer any Granted Shares on its books which shall have been sold, assigned or otherwise transferred in violation of this Subsection 2.1(d), or to treat as the owner of such Granted Shares, or to accord the
right to vote as such owner or to pay dividends to, any person or organization to which any such Granted Shares shall have been so sold, assigned or otherwise transferred, in violation of this Subsection 2.1(d). 
 (e) Failure to Deliver Granted Shares to be Forfeited. In the event that the Granted Shares to be forfeited to the Company under this Agreement
are not in the Company’s possession pursuant to Subsection 2.1(d) above or otherwise and the Participant or the Participant’s Survivor fails to deliver such Granted Shares to the Company (or its designee), the Company may immediately take
such action as is appropriate to transfer record title of such Granted Shares from the Participant to the Company (or its designee) and treat the Participant and such Granted Shares in all respects as if delivery of such Granted Shares had been made
as required by this Agreement. The Participant hereby irrevocably grants the Company a power of attorney which shall be coupled with an interest for the purpose of effectuating the preceding sentence. 
 (f) Adjustments. The Plan contains provisions covering the treatment of Shares in a number of contingencies such as stock splits and mergers.
Provisions in the Plan for adjustment with respect to the Granted Shares and the related provisions with respect to successors to the business of the Company are hereby made applicable hereunder and are incorporated herein by reference. 

 

	 	2.2	General Restrictions on Transfer of Granted Shares. 

 (a) The Participant acknowledges and agrees that neither the Company nor, its shareholders nor its directors and officers, has any duty or obligation to disclose to the Participant any material information regarding the business of the
Company or affecting the value of the Shares before, at the time of, or following a Termination, including, without limitation, any information concerning plans for the Company to make a public offering of its securities or to be acquired by or
merged with or into another firm or entity. 
 3. Securities Law Compliance. The Participant specifically acknowledges and agrees that
any sales of Granted Shares shall be made in accordance with the requirements of the Securities Act of 1933, as amended. 
  

 4 

 4. Rights as a Stockholder. The Participant shall have all the rights of a stockholder with
respect to the Granted Shares, including voting and dividend rights, subject to the transfer and other restrictions set forth herein and in the Plan. 
 5. Legend. In addition to any legend required pursuant to the Plan, if certificates representing the Granted Shares are issued to the Participant pursuant to this Agreement, such certificates shall have
endorsed thereon a legend substantially as follows: 
 “The shares represented by this certificate are subject to restrictions set forth
in a Restricted Stock Agreement dated as of                                  with
this Company, a copy of which Agreement is available for inspection at the offices of the Company or will be made available upon request.” 
 6. Incorporation of the Plan. The Participant specifically understands and agrees that the Granted Shares issued under the Plan are being sold to the Participant pursuant to the Plan, a copy of which Plan the Participant acknowledges
he or she has read and understands and by which Plan he or she agrees to be bound. The provisions of the Plan are incorporated herein by reference. 
 7. Tax Liability of the Participant and Payment of Taxes. The Participant acknowledges and agrees that any income or other taxes due from the Participant with respect to the Granted Shares issued pursuant to this Agreement,
including, without limitation, the Lapsing Forfeiture Right, shall be the Participant’s responsibility. Without limiting the foregoing, the Participant agrees that, to the extent that the lapsing of restrictions on disposition of any of the
Granted Shares or the declaration of dividends on any such shares before the lapse of such restrictions on disposition results in the Participant’s being deemed to be in receipt of earned income under the provisions of the Code, the Company
shall be entitled to immediate payment from the Participant of the amount of any tax required to be withheld by the Company. The Company may withhold such amount from the Granted Shares to be delivered to the Participant as set forth in
Section 26 of the Plan. 
 Upon execution of this Agreement, the Participant may file an election under Section 83 of the Code in
substantially the form attached as Exhibit B. The Participant acknowledges that if he does not file such an election, as the Granted Shares are released from the Lapsing Forfeiture Right in accordance with Section 2.1, the Participant
will have income for tax purposes equal to the fair market value of the Granted Shares at such date, less the price paid for the Granted Shares by the Participant. The Participant has been given the opportunity to obtain the advice of his or her tax
advisors with respect to the tax consequences of the purchase of the Granted Shares and the provisions of this Agreement. 
 8. Equitable
Relief. The Participant specifically acknowledges and agrees that in the event of a breach or threatened breach of the provisions of this Agreement or the Plan, including the attempted transfer of the Granted Shares by the Participant in
violation of this Agreement, monetary damages may not be adequate to compensate the Company, and, therefore, in the event of such a breach or threatened breach, in addition to any right to damages, the Company shall be entitled to equitable relief
in any court having competent jurisdiction. Nothing herein shall be construed as prohibiting the Company from pursuing any other remedies available to it for any such breach or threatened breach. 
 9. No Obligation to Maintain Relationship. The Company is not by the Plan or this Agreement obligated to continue the Participant as an employee,
director or consultant of the Company or an Affiliate. The Participant acknowledges: (i) that the Plan is discretionary in nature and may be suspended or terminated by the Company at any time; (ii) that the grant of the Shares is a
one-time benefit which does not create any contractual or other right to receive future grants of shares, or benefits in lieu of shares; (iii) that all determinations with respect to any such future grants, including, but not limited to, the

  

 5 

 
times when shares shall be granted, the number of shares to be granted, the purchase price, and the time or times when each share shall be free from a
lapsing repurchase or forfeiture right, will be at the sole discretion of the Company; (iv) that the Participant’s participation in the Plan is voluntary; (v) that the value of the Shares is an extraordinary item of compensation which
is outside the scope of the Participant’s employment contract, if any; and (vi) that the Shares are not part of normal or expected compensation for purposes of calculating any severance, resignation, redundancy, end of service payments,
bonuses, long-service awards, pension or retirement benefits or similar payments. 
 10. Notices. Any notices required or permitted by
the terms of this Agreement or the Plan shall be given by recognized courier service, facsimile, registered or certified mail, return receipt requested, addressed as follows: 
 If to the Company: 
 Alloy, Inc. 

151 W. 26th Street 
 11th Floor 
 New York, NY 10001 
 Attention: Chief Executive Officer 
 If to the Participant at the address set forth on the Company’s
records 
 or to such other address or addresses of which notice in the same manner has previously been given. Any such notice shall be deemed to have been
given on the earliest of receipt, one business day following delivery by the sender to a recognized courier service, or three business days following mailing by registered or certified mail. 
 11. Benefit of Agreement. Subject to the provisions of the Plan and the other provisions hereof, this Agreement shall be for the benefit of and
shall be binding upon the heirs, executors, administrators, successors and assigns of the parties hereto. 
 12. Governing Law. This
Agreement shall be construed and enforced in accordance with the laws of the State of Delaware, without giving effect to the conflict of law principles thereof. For the purpose of litigating any dispute that arises under this Agreement, whether at
law or in equity, the parties hereby consent to exclusive jurisdiction in New York and agree that such litigation shall be conducted in the state courts of New York, New York or the federal courts of the United States for the Southern District of
New York. 
 13. Severability. If any provision of this Agreement is held to be invalid or unenforceable by a court of competent
jurisdiction, then such provision or provisions shall be modified to the extent necessary to make such provision valid and enforceable, and to the extent that this is impossible, then such provision shall be deemed to be excised from this Agreement,
and the validity, legality and enforceability of the rest of this Agreement shall not be affected thereby. 
 14. Entire Agreement.
This Agreement, together with the Plan, constitutes the entire agreement and understanding between the parties hereto with respect to the subject matter hereof and supersedes all prior oral or written agreements and understandings relating to the
subject matter hereof. No statement, representation, warranty, covenant or agreement not expressly set forth in this Agreement shall affect or be used to interpret, change or restrict the express terms and provisions of this Agreement provided,
however, in any event, this Agreement shall be subject to and governed by the Plan. 
  

 6 

 15. Modifications and Amendments; Waivers and Consents. The terms and provisions of this Agreement
may be modified or amended as provided in the Plan. Except as provided in the Plan, the terms and provisions of this Agreement may be waived, or consent for the departure therefrom granted, only by written document executed by the party entitled to
the benefits of such terms or provisions. No such waiver or consent shall be deemed to be or shall constitute a waiver or consent with respect to any other terms or provisions of this Agreement, whether or not similar. Each such waiver or consent
shall be effective only in the specific instance and for the purpose for which it was given, and shall not constitute a continuing waiver or consent. 
 16. Consent of Spouse/Domestic Partner. If the Participant has a spouse or domestic partner as of the date of this Agreement, the Participant’s spouse or domestic partner shall execute a Consent of
Spouse/Domestic Partner in the form of Exhibit A hereto, effective as of the date hereof. Such consent shall not be deemed to confer or convey to the spouse or domestic partner any rights in the Granted Shares that do not otherwise exist by
operation of law or the agreement of the parties. If the Participant subsequent to the date hereof, marries, remarries or applies to the Company for domestic partner benefits, the Participant shall, not later than 60 days thereafter, obtain his or
her new spouse/domestic partner’s acknowledgement of and consent to the existence and binding effect of all restrictions contained in this Agreement by having such spouse/domestic partner execute and deliver a Consent of Spouse/Domestic Partner
in the form of Exhibit A. 
 17. Counterparts. This Agreement may be executed in one or more counterparts, and by different parties
hereto on separate counterparts, each of which shall be deemed an original, but all of which together shall constitute one and the same instrument. 
 18. Data Privacy. By entering into this Agreement, the Participant: (i) authorizes the Company and each Affiliate, and any agent of the Company or any Affiliate administering the Plan or providing Plan record keeping services,
to disclose to the Company or any of its Affiliates such information and data as the Company or any such Affiliate shall request in order to facilitate the grant of Shares and the administration of the Plan; (ii) waives any data privacy rights
he or she may have with respect to such information; and (iii) authorizes the Company and each Affiliate to store and transmit such information in electronic form. 
 [THE NEXT PAGE IS THE SIGNATURE PAGE] 
  

 7 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement as of the day and year first above
written. 
  

							
		 		 	ALLOY, INC.
				
		 		 	By:	 	  

		 		 	Name:	 	
				
	Title:	 		 		 	
			
		 		 	Participant:
			
		 		 	  

		 		 	Print Name:

  

 8 

 EXHIBIT A 
 CONSENT OF SPOUSE/DOMESTIC PARTNER 
 I,
                                        ,
spouse or domestic partner of
                                        ,
acknowledge that I have read the RESTRICTED STOCK AGREEMENT dated as of                      (the “Agreement”) to which this Consent
is attached as Exhibit A and that I know its contents. Capitalized terms used and not defined herein shall have the meanings assigned to such terms in the Agreement. I am aware that by its provisions the Granted Shares granted to my spouse/domestic
partner pursuant to the Agreement are subject to a Lapsing Forfeiture Right in favor of Alloy, Inc. (the “Company”) and that, accordingly, I may be required to forfeit to the Company any or all of the Granted Shares of which I may become
possessed as a result of a gift from my spouse/domestic partner or a court decree and/or any property settlement in any domestic litigation. 
 I hereby agree that my interest, if any, in the Granted Shares subject to the Agreement shall be irrevocably bound by the Agreement and further understand and agree that any community property interest I may have in the Granted Shares shall
be similarly bound by the Agreement. 
 I agree to the Lapsing Forfeiture Right described in the Agreement and I hereby consent to the
forfeiture of the Granted Shares to the Company by my spouse/domestic partner or my spouse/domestic partner’s legal representative in accordance with the provisions of the Agreement. Further, as part of the consideration for the Agreement, I
agree that at my death, if I have not disposed of any interest of mine in the Granted Shares by an outright bequest of the Granted Shares to my spouse or domestic partner, then the Company shall have the same rights against my legal representative
to exercise its rights to the Granted Shares with respect to any interest of mine in the Granted Shares as it would have had pursuant to the Agreement if I had acquired the Granted Shares pursuant to a court decree in domestic litigation.

 I AM AWARE THAT THE LEGAL, FINANCIAL AND RELATED MATTERS CONTAINED IN THE AGREEMENT ARE COMPLEX AND THAT I AM FREE TO SEEK INDEPENDENT
PROFESSIONAL GUIDANCE OR COUNSEL WITH RESPECT TO THIS CONSENT. I HAVE EITHER SOUGHT SUCH GUIDANCE OR COUNSEL OR DETERMINED AFTER REVIEWING THE AGREEMENT CAREFULLY THAT I WILL WAIVE SUCH RIGHT. 
 Dated as of the      day of
                    , 200  . 
  

	
	  

	Print name:

  

 A-1 

 EXHIBIT B 
 Election to Include Gross Income in Year 
 of Transfer Pursuant to Section 83(b)

 of the Internal Revenue Code of 1986, as amended 
 In accordance with Section 83(b) of the Internal Revenue Code of 1986, as amended (the “Code”), the undersigned hereby elects to include in his gross income as compensation for services the excess, if
any, of the fair market value of the property (described below) at the time of transfer over the amount paid for such property. 
 The following sets for the
information required in accordance with the Code and the regulations promulgated hereunder: 
  

	1.	The name, address and social security number of the undersigned are: 

 Name: 
 Address: 
 Social Security No.: 
  

	2.	The description of the property with respect to which the election is being made is as follows: 

                     
(        ) shares (the “Shares”) of Common Stock, $0.01 par value per share, of Alloy, Inc., a Delaware corporation (the “Company”). 
  

	3.	This election is made for the calendar year         , with respect to the transfer of the property to the Taxpayer on
                    . 

  

	4.	Description of restrictions: The property is subject to the following restrictions: 

 In the event taxpayer’s employment with the Company or an Affiliate is terminated, the taxpayer shall forfeit the Shares as set forth below: 
  

	 	A.	If the termination takes place on or prior to                      all of
the Shares will be forfeited. 

  

	 	B.	If the termination takes place after             , 200  , the number of Shares forfeited shall be
                     (        ) Shares less
                     (        ) Shares for each full twelve (12) month period elapsed
after             , 200   if the taxpayer is employed by the Company or an Affiliate. 

  

	5.	The fair market value at time of transfer (determined without regard to any restrictions other than restrictions which by their terms will never lapse) of the property with respect
to which this election is being made was not more than $             per Share. 

  

	6.	The amount paid by taxpayer for said property was $             per Share. 

  

	7.	A copy of this statement has been furnished to the Company. 

 Signed this
     day of                     , 200  . 
  

	
	  

	Print Name:
	
	Print Name:

  

 A-1

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