Exhibit 10.1.2

MORTGAGE NOTE MODIFICATION AGREEMENT AND DECLARATION OF

NO SET-OFF

      THIS AGREEMENT, made this 19th day of April, 2004, by and between dELiA*s
DISTRIBUTION COMPANY, a Delaware corporation (the “Maker”) and MANUFACTURERS AND
TRADERS TRUST COMPANY, a New York banking corporation, successor in interest to
Allfirst Bank (the “Payee”) to modify the Mortgage Note dated August 6, 1999
(the “Note”), which was given in connection with that certain Open-End
Construction/ Permanent Loan Mortgage and Security Agreement also dated
August 6, 1999 (the “Mortgage”) to secure payment of an original principal
indebtedness of Five Million Three Hundred Twenty Thousand Dollars
($5,320,000.00), said Mortgage having been recorded in York County Record Book
1373, Page 6314, as a lien on and against the Mortgaged Property, as therein
described and defined (the “Mortgaged Property”)

W I T N E S S E T H:

      WHEREAS, on August 6, 1999, Maker made, executed and delivered to Payee a
Mortgage Note in the principal amount of Five Million Three Hundred Twenty
Thousand Dollars ($5,320,000.00) (the “Note”), which Note, together with the
Modification Agreement made effective as of May 1, 2001, and the Extension to
Modification Agreement dated July 28, 2003, is incorporated herein by reference
thereto and made a part hereof; and

      WHEREAS, Maker is indebted under the Note to Payee for monies advanced to
or on behalf of Maker by Payee under and subject to the terms of the Note and
related documents and instruments; and

      WHEREAS, the outstanding principal balance of the Note as of April 19,
2004, is $2,891,916.76, together with interest thereon accrued and accruing; and

      WHEREAS, the parties hereto have agreed to change the interest rate and
certain repayment provisions and extend the maturity date of the Note; and

      WHEREAS, Maker has no defense, charge, defalcation, counterclaim, plea,
demand or set-off against the Note or any document or instrument related thereto
or associated therewith, and acknowledges and agrees that said Mortgage is now
and shall remain as a valid first lien on and against the Mortgaged
Property; and

      WHEREAS, the parties hereto desire to formalize their agreement for this
modification of the Note and Mortgage.

      NOW, THEREFORE, for good and valuable consideration, the receipt and
sufficiency of which are hereby acknowledged, and intending to be legally bound
hereby, the parties hereto covenant and agree as follows:

        1. That the introductory clauses set forth above are incorporated herein
by reference and made a part hereof.           2. That the Note be and hereby is
amended effective September 30, 2003, to provide that interest will now accrue
at a rate per annum which is at all times equal to the LIBOR Rate for a
one-month period plus 225 basis points.           3. That principal and interest
shall continue to be due and payable in consecutive monthly installments on the
sixth (6th) day of each month, which installments shall be increased or
decreased to reflect any change(s) in the effective interest rate and shall be
first applied to interest on the outstanding principal balance hereof and the
balance to the payment of the outstanding principal balance hereof based on an
agreed fifteen (15) year amortization until principal and interest are fully
paid, except that the final installment, unless sooner paid, shall now be due
and payable on or before September 30, 2008 (the “Maturity Date”).

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        4. That in consideration for the above modification to the Note and
Mortgage, the Maker shall pay to the Payee a modification fee of $15,000, which
shall be deemed to be immediately earned upon payment and shall be in addition
to any and all other payments required under the Note and related documents and
instruments.           5. That the Note as amended is secured, among other
things, by said Mortgage covering all that certain tract of land and
improvements thereon situate partly in Penn Township and partly in the Borough
of Hanover, York County, Pennsylvania.           6. That it is understood and
agreed by the parties hereto that this Agreement does not constitute the
creation of a new debt or the extinguishment of the debt evidenced by the Note
as amended and Mortgage, nor does it in anywise affect or impair the lien of the
Mortgage, which the parties hereby acknowledge to be a valid and subsisting lien
on the Mortgaged Property, or any additional and other security provided by
Maker to Bank, and the lien of said Mortgage, as well as any such additional and
other security, is agreed to have continued in force and effect from the date
thereof, unaffected and unimpaired by this Agreement and the same shall so
continue until fully satisfied.           7. That in all other respects, the
Note and Mortgage shall remain in full force and effect, and without limiting
the generality of the foregoing; all warrants of attorney therein are ratified
and confirmed and incorporated herein by reference.           8. That any and
all reference to the Mortgage Note dated August 6,1999, in writings of the same
or subsequent date shall be deemed to be or to have been made and to refer to
the Mortgage Note dated August 6, 1999, as amended and modified from time to
time.

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      IN WITNESS WHEREOF, this Modification Agreement has been duly executed as
of the day and year first above written.

     

ATTEST:   MAKER:

dELiA*s DISTRIBUTION COMPANY   /s/ Walter B. Killough   By: /s/ Samuel A.
Gradess

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  Title: Chief Operating Officer

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By: /s/ Keith A. Mummert

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Title: Vice President       Title: Treasurer

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PAYEE:

MANUFACTURERS AND TRADERS TRUST COMPANY

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      STATE OF NEW YORK
COUNTY OF NEW YORK   ss:

      On this, the 19th day of April, 2004, before me, the undersigned officer,
personally appeared Samuel A. Gradess, who acknowledged (her)himself to be
Treasurer of dELiA*s DISTRIBUTION COMPANY, a Delaware corporation, and that
(s)he, as such partner being authorized so to do, executed the foregoing
instrument for the purposes therein contained by signing the name of the
corporation by (her)himself as such officer.

      IN WITNESS WHEREOF, I hereunto set my hand and official seal.

  /s/ Edward D. Taffet  

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  Notary Public

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      COMMONWEALTH OF PENNSYLVANIA
COUNTY OF YORK   ss:

      On this, the 19th day of April, 2004, before me, the undersigned officer,
personally appeared Keith A. Mummert, who acknowledged (her)himself to be Vice
President of Manufacturers and Traders Trust Company, successor in interest to
Allfirst Bank, and that (s)he, as such officer being authorized so to do,
executed the foregoing instrument for the purposes therein contained by signing
the name of the organization by (her)himself as such officer.

      IN WITNESS WHEREOF, I hereunto set my hand and official seal.

  /s/ Julie A. Sterner  

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  Notary Public

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