Document:

Exhibit 10.38  

December 24,
2002 

Samsonite
Corporation

11200 East 45th Avenue

Denver, CO 80239

Ladies
and Gentlemen: 

        1.
This letter will confirm our understanding that Jefferies & Company, Inc. ("Jefferies") has been retained by Samsonite Corporation ("Samsonite" or the "Company") as its
financial advisor to assist the Company with respect to: (i) the raising of additional capital through private placement(s) of debt, equity or other securities of the Company (a "Financing");
(ii) the amendment, refinancing, exchange, conversion, forgiveness or renegotiation of existing debt obligations and/or preferred stock of the Company (a "Restructuring"); (iii) an
acquisition, merger, reorganization or other business combination involving the Company as a target, whether effected in one transaction or a series of transactions (a "Sale Transaction", and with a
Financing and Restructuring, each and collectively a "Transaction"); and (iv) such other matters as we may mutually agree to. 

        As
financial advisor, Jefferies will provide the services of a qualified team of professionals, including Ray Minella and Gregg Feinstein, who will devote such time and effort as shall
be necessary and appropriate to diligently perform the assignment hereunder; provided, that Jefferies shall have no obligation to provide the services of either Mr. Minella or
Mr. Feinstein to the extent that either of them is unavailable due to circumstances outside of the control of Jefferies, Mr. Minella or Mr. Feinstein. The services to be rendered
by Jefferies, as required in connection with a Transaction, shall include, among others, the following: 

	a)
	performing
due diligence on the Company and its financial results and projections;

	b)
	assisting
the Company to identify, and in discussions with, potential new investors and lenders;

	c)
	assisting
the Company in the preparation of materials to be presented to potential new investors and lenders;

	d)
	assisting
the Company in structuring and implementing a "Recapitalization Plan", which as contemplated by Section 9.30 of the Samsonite Credit Agreement ("Section 9.30"),
as amended (see Section 2.19 of the Seventh Amendment thereto) and referred to herein may include: (i) a Restructuring of the Company's existing preferred stock (the "Preferred Stock"),
(ii) a Restructuring of the Company's outstanding senior subordinated notes and/or (iii) the raising of Financing;

	e)
	assisting
the Company in providing the agents of the Company's current credit facility with periodic status reports as contemplated by Section 9.30;

	f)
	acting
as a financial advisor and/or a dealer-manager for any securities tender or exchange offer in conjunction with activities contemplated in this agreement; and

	g)
	acting
as placement agent with respect to the private placement of preferred stock or common equity and as dealer manager with respect to any rights offering. 

        The
services described in clauses (a) through (g) above are referred to herein collectively as the "Services." 

        The
parties confirm that Jefferies' engagement hereunder is non-exclusive, and the Company retains the right to retain one or more parties to render services in connection
with any Restructuring,

 
Financing or Sale Transaction contemplated hereby. The retention of any such party will not affect the fees payable to Jefferies, except as expressly provided herein. Jefferies agrees to provide the
services contemplated hereby whether or not the Company retains or terminates any such party. Jefferies agrees to cooperate with any such party in rendering the financial advisory services
contemplated by this agreement and to make any and all Company materials (including work papers) available to such party, and the Company agrees to use its reasonable efforts to cause any such party
to make any and all such materials available to Jefferies. 

        2.
At the Company's request, Jefferies will render an opinion, or opinions if necessary, (in writing, if so requested) to both the Company's Board of Directors and the Special Committee
of the Board of Directors formed to consider a Restructuring or Sale Transaction (the "Special Committee") relating to a Recapitalization Plan or Sale Transaction (the "Opinion") as to the fairness to
the Company, its common stockholders and its preferred stockholders, from a financial point of view, of: (a) the transactions contemplated in a Recapitalization Plan; (b) the
consideration to be received by the Company or its shareholders in connection with a Sale Transaction; or (c) in the case that the Sale Transaction takes the form of a
stock-for-stock merger, the fairness of the exchange ratio. The nature and scope of our investigation as well as the scope, form and substance of the Opinion shall be such as
Jefferies considers reasonably appropriate. It is understood that the Opinion will be dated as of a date reasonably proximate to the date of the definitive agreement between the Company and a third
party providing for the Recapitalization Plan or Sale Transaction, or such other date or dates as the Company shall reasonably request. Jefferies' financial advice, including any Opinion, is intended
solely for the benefit and use of the Board of Directors of the Company and the Special Committee in considering the Recapitalization Plan or Sale Transaction, is not on behalf of, and shall not
confer rights or remedies upon, any other person, and may not be used or relied upon for any other purpose. The Company will treat Jefferies' advice including any Opinion as confidential and will not
reproduce, summarize, describe, refer to or otherwise disclose it to any third party in any manner without Jefferies' prior written approval; provided, that the Company may reproduce the Opinion in
full in any proxy statement, registration statement or Schedule 14D-9 relating to the Recapitalization Plan or Sale Transaction which the Company must, under any applicable law,
file with any government agency or distribute to its stockholders and where such filing must include the Opinion. In such event, the Company may also include references to Jefferies and summarize the
Opinion (in each case in such form as Jefferies shall provide or reasonably pre-approve in writing) in any such document. 

        3.
The Company agrees to pay Jefferies, as compensation for its services, the following fees: 

	(a)
	If,
during the term of this engagement or the Tail (as defined in Section 14), the Company consummates a Sale Transaction or a Successful Restructuring (as defined below),
subject to the provisions of the next succeeding paragraph, the aggregate fee payable to Jefferies shall be $3.95 million for all Services rendered (including, if requested by the Company,
(i) the rendering of an Opinion as described in Section 2 acceptable to the Company and its counsel and (ii) acting as a placement agent for any privately placed debt or equity
securities of the Company), plus, if applicable, the fees provided for in Section 3(c) below; provided, that $500,000 of the fee relating to the rendering of an Opinion as described in
clause (i) above shall be payable upon the rendering of such Opinion, which amount shall be non-refundable and fully credited against any other amounts payable pursuant to
this Section 3. A "Successful Restructuring" means a Restructuring (including a Restructuring organized by Ares Management L.P) pursuant to which substantially all of the outstanding Preferred
Stock is either redeemed or converted into the Company's common stock, cash or a combination thereof; provided, that upon consummation of such Restructuring the Company has adequate liquidity
(including the availability of borrowings under any bank credit facility) to operate its business in accordance with the business plan approved by the Company's Board of Directors as of the date of
such consummation, for at least 24 months following such date (the 

 

"Liquidity
Period"), provided further that if the Liquidity Period is less than 24 months but at least 12 months, the aggregate fee payable to Jefferies pursuant to this
Section 3(a) will be reduced to $2.0 million, which amount shall not be subject to reduction pursuant to the penultimate sentence of Section 3(b) or the proviso in
clause (i) of Section 3(c) hereof. If a Restructuring is consummated which does not constitute a Successful Restructuring because the Liquidity Period is less than
12 months, Jefferies may discuss with the Company whether a fee, if any, should be paid for services rendered in connection therewith, which fee, if any, shall be at the discretion of the
Company. 

	

	Jefferies
acknowledges that the Company has entered into a letter agreement with another investment banking firm (the "Other Firm"), dated March 13,
2002 (the "Letter"). If any amounts are paid to the Other Firm in connection with the services contemplated by the Letter, the fee payable to Jefferies pursuant to this
Section 3(a) shall be reduced by an amount equal to the lesser of (i) 66.67% of the amounts paid to the Other Firm and (ii) $1.75 million (such lesser amount, the
"Reduction"). In the event that the Other Firm receives any such amounts after Jefferies has received its fee pursuant to this Section 3(a), Jefferies shall repay the Company an amount equal to
the Reduction immediately upon receipt of notice of such payment to the Other Firm. In no event, however, will the aggregate fees payable to Jefferies pursuant to Sections 3(a) and
3(c) be less than the amounts paid to the Other Firm after the date hereof directly or indirectly pursuant to the Letter.

	(b)
	If,
during the term of this engagement, a Successful Restructuring or Sale Transaction has not been consummated and the Company pursues an amendment, extension or refinancing of its
existing senior secured debt facility, a fee shall be payable to Jefferies as follows: (i) in connection with any extension of such facility for a period of not less than one year (i.e., until
June 2004), such fee shall equal 0.5% of the amount available under such facility at the time of such extension and (ii) in connection with any refinancing of such facility, such fee
shall equal 1.0% of the amount available under such facility; provided, that 50% of such 1.0% fee shall be payable upon acceptance of the related commitment and the remaining 50% of such 1.0% fee
shall be payable if and when the funding and closing under the facility occurs. If at any time during the term of this engagement a fee becomes payable pursuant to Section 3(a), unless
otherwise provided in Section 3(a), such fee shall be reduced by an amount equal to 50% of any fee payable pursuant to this Section 3(b). No fee shall be payable to Jefferies pursuant to
this Section 3(b) at any time a fee is payable or has been paid pursuant to Section 3(a).

	(c)
	If,
during the term of this engagement, the Company requests that Jefferies act as a dealer manager with respect to a tender or exchange offer for the 103/4% Senior
Subordinated Notes of the Company, if greater than the minimum securities required for the completion of such offer are tendered, a fee shall be payable to Jefferies upon consummation of such tender
or exchange offer as follows: (i) if a fee would be payable to Jefferies pursuant to Section 3(a), the fee payable to Jefferies pursuant to this Section 3(c) shall be 0.5%
of the aggregate principal amount of 103/4% Senior Subordinated Notes that are accepted for tender or exchange, provided that any fees paid or payable pursuant to Section 3(a),
unless otherwise provided in Section 3(a), shall be reduced by 50% of such 0.5% fee, and (ii) if no fee would be payable to Jefferies pursuant to Section 3(a), the Company and
Jefferies agree to negotiate an appropriate fee for such services at the time of such request. 

        Any
fees payable to Jefferies pursuant to this Section 3 will be paid in cash via wire transfer to an account designated by Jefferies. 

        4.
In addition to any fees payable to Jefferies hereunder, the Company shall, upon request from time to time, reimburse Jefferies for up to $100,000 of its reasonable (and documented)
travel and

 
other out-of-pocket expenses (including fees and expenses of counsel) incurred in connection with, or arising out of, Jefferies' activities hereunder (including those expenses
incurred prior to the date hereof which relate to such engagement); provided, that such reimbursable expenses shall not include compensation payable to employees of Jefferies. 

        5.
The Company recognizes and confirms that, in advising the Company and performing its engagement hereunder, Jefferies will be using and relying on data, material and other information
("Information") furnished to Jefferies by the Company or that is publicly available and that Jefferies may assume and rely upon the accuracy and completeness of the Information so furnished without
independent
verification. Jefferies has not assumed any responsibility for independent verification of such Information or any independent valuation or appraisal of any assets of the Company. 

        6.
As Jefferies will be acting on behalf of the Company in connection with its engagement hereunder, the Company and Jefferies acknowledge that they have entered into a separate
indemnification agreement, dated October 21, 2002 (the "Indemnification Agreement"), providing for, among other things, the indemnification by the Company of Jefferies and certain related
entities. Such indemnification agreement is an integral part of this agreement and will apply fully to Jefferies' activities pursuant to its engagement. This agreement and the Indemnification
Agreement represent the entire agreement of the parties with respect to the subject matter hereof and thereof and supercede all other agreements between the parties, whether written or oral. 

        7.
The Company acknowledges that Jefferies has been retained to act solely as an advisor to Samsonite. In such capacity, Jefferies shall act as an independent contractor and any duties
of Jefferies arising out of its engagement pursuant to this agreement shall be owed solely to the Company. 

        8.
Jefferies shall keep confidential and shall not disclose the terms of this agreement; provided that Jefferies may disclose its terms to a court or governmental agency to the extent
that, in the reasonable opinion of counsel, such disclosure is required. 

        9.
The Company acknowledges that, upon consummation of a Transaction, Jefferies may, at its option and expense, place customary "tombstone" advertisements in such newspapers and
periodicals as it may choose with the prior approval of the Company, which approval shall not be unreasonably withheld. 

        10.
This agreement shall be governed by, and construed in accordance with, the laws of the State of New York applicable to contracts executed in and to be performed in that state. 

        11.
No waiver, amendment or other modification of this agreement shall be effective unless in writing and signed by each party to be bound thereby. 

        12.
Each of the Company and Jefferies irrevocably and unconditionally submits to the exclusive jurisdiction and venue of any State or Federal court sitting in New York City over any
action, suit or proceeding arising out of or relating to this agreement. Each of the Company and Jefferies irrevocably and unconditionally waives any objection to the laying of venue of any such
action brought in any such court and any claim that any such action has been brought in an inconvenient forum. Each of Jefferies and the Company (on its own behalf and, to the extent permitted by law,
on behalf of its shareholders) waives any right to trial by jury in any action, claim, suit or proceeding (whether based upon contract, tort or otherwise) related to or arising out of the engagement
of Jefferies pursuant to, or the performance by Jefferies of the services contemplated by, this agreement.1 

        13.
This agreement may be executed in one or more counterparts, all of which shall be considered one and the same agreement and each of which shall be deemed an original. 

        14.
Either Jefferies or the Company can terminate this engagement upon the earlier of: (i) the consummation of a Restructuring or a Sale Transaction, or
(ii) September 30, 2003, except that the Company may terminate such engagement at any time on or after June 30, 2003 upon two weeks

 
written notice. Notwithstanding any termination by the Company, if a Transaction is consummated or is subject to a definitive agreement entered into during the term of this agreement or during the
six-month period (the "Tail") commencing on the date of such termination, Jefferies shall be entitled to the same amount of fees (the "Termination Amount") that it would otherwise have
received (subject to the next sentence of this paragraph), if its engagement hereunder had not been so terminated, as if such Transaction occurred during the term of this engagement, regardless of
when such Transaction actually closes, payable at the closing of such Transaction, and shall be entitled to reimbursement of its expenses in accordance with Section 4, but only to the extent
such expenses are incurred prior to notice of termination. The Termination Amount shall be subject to any credits, caps and other limitations applicable to fees payable pursuant to Section 3 of
this agreement. Notwithstanding any such termination, the provisions of Sections 5, 6, 7, 8, 9, 10, 11, 12, 13 and 14 will survive such termination. 

        15.
We are pleased to accept this engagement and look forward to working with you. Please confirm that the foregoing is in accordance with your understanding by signing and returning to
us two (2) original copies of this letter. Jefferies will then counter-sign, returning one (1) duly executed original to your attention at which time there shall be a binding
agreement amongst the parties. 

	

 	
 	

Very truly yours,
	

 	
 	

JEFFERIES & COMPANY, INC.
	

 	
 	

By:	
 	

/s/  GREGG FEINSTEIN      
	 	 	 	 	

	 	 	 	 	Name:	 	Gregg Feinstein
	 	 	 	 	Title:	 	Managing Director

Director of Mergers and Acquisitions

Accepted
and agreed to as of the date hereof: 

	

SAMSONITE CORPORATION
	

By:	
 	

/s/  RICHARD H. WILEY      

	 	 	Name:	 	Richard H. Wiley
	 	 	Title:	 	Chief Financial OfficerQuickLinks
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Exhibit 10.45    
    

	SIXTH AMENDMENT TO	 	 
	LOAN AND SECURITY AGREEMENT	 	Wells Fargo Retail Finance II, LLC
	769139.5	 	 

Execution Date: April 28, 2003

Effective Date: April 28, 2003 

        THIS
SIXTH AMENDMENT is made to the September 24, 2001 Loan and Security Agreement (the "Loan Agreement"), as amended by a certain
First Amendment dated October 29, 2001, a certain Second Amendment dated October 21, 2002, a certain Third Amendment dated as of November 30, 2002, a certain Fourth Amendment
dated February 7, 2003, and a certain Fifth Amendment dated February 24, 2003 between 

        Wells
Fargo Retail Finance II, LLC (referred to therein as the "Lender"), a Delaware limited liability company, as assignee of Wells Fargo
Retail Finance, LLC, with offices at One Boston Place—18th Floor, Boston, Massachusetts 02108, 

        and

        dELiA*s
Corp. (referred to therein in such capacity, as the "Lead Borrower"), a Delaware corporation with its principal executive offices
at 435 Hudson Street, New York, New York 10014, as agent for the following (referred to therein individually, as a "Borrower" and collectively, the
"Borrowers"): 

dELiA*s
Corp.,

dELiA*s Operating Company,

dELiA*s Distribution Company,

dELiA*s Retail Company, 

each
a Delaware corporation with its principal executive offices at 435 Hudson Street, New York, New York 10014, 

in
consideration of the mutual covenants contained herein and benefits to be derived herefrom. 

 PART 1.    AMENDMENT OF THE LOAN AGREEMENT.  

        From and after the execution of this Amendment, as of the Effective Date, the Loan Agreement is amended as follows: 

New Definitions  

	1.
	The
following definitions are hereby inserted in their appropriate alphabetical order: 

        "Accounts Receivable Activation Date:" The first Business Day after completion of each and all of the following to the satisfaction, where
applicable, of the Lender in the Lender's sole and exclusive discretion: 

        (i)    Receipt
by the Lender of written notice from the Borrower that the Borrower has requested that Accounts Receivable be included in the Borrowing Base; 

        (ii)   Completion
by the Lender of a field audit and examination of the Borrower's books and records with respect to its Accounts Receivable addressing such matters as
historic dilution, cyclical patterns, and such other matters affecting creditworthiness as the Lender may determine; 

        (iii)  The
establishment by the Lender of the appropriate applicable reserves against Accounts Receivable in such amounts as the Lender may determine; and 

        (iv)  Notification
in writing by the Lender to the Borrower that Eligible Credit Card Receivables will be included in the Borrowing Base. 

 

        "Availability Block: A permanent "Availability Block" (so-called) in an amount equal to the lesser of: (i) 10% of the
Borrowing Base, at any time, or (ii) $1,500,000.00. Upon completion of the next appraisal of Inventory (contemplated to be on or before June 30, 2003), and so long as the appraisal does
not indicate a decline in value of 4 points or more from the average contained in the December, 2002 appraisal, then the figure "$1,500,000.00" shall be reduced to $750,000.00. 

        "Credit Card Advance Rate": 80% 

        "Eligible Credit Card Receivables": Under 4 business day accounts due on a non-recourse basis from major credit card
processors (which, if due on account of a private label credit card program, are deemed in the discretion of the Lender to be eligible). 

Amended Definitions  

	2.
	The
following definitions are hereby amended as follows:

	(a)
	Availability. The definition of Availability is hereby deleted and the following is inserted in its place: 

        "Availability": The result of the following: 

	(i)
	The
lesser of

	(A)
	The
Credit Limit or

	(B)
	The
Borrowing Base 

        Minus

	(ii)
	The
aggregate unpaid balance of the Loan Account. 

        Minus

	(iii)
	The
aggregate undrawn Stated Amount of all then outstanding L/C's. 

        Minus

	(iv)
	The
aggregate of the Availability Reserves. 

        Minus

	(v)
	The
Availability Block.

	(b)
	Borrowing Base. The definition of Borrowing Base is hereby deleted, and the following is inserted in its place: 

        "Borrowing Base": The aggregate of the following: 

	(i)
	The
result of the lesser of (a) or (b):

	(a)
	The
product of the Cost of Eligible Inventory (net of Inventory Reserves) multiplied by the Standard Inventory Advance Rate. 

and 

	(b)
	The
product of (i) the NRLV Percentage, times (ii) 85% during December 1 through June 15 each year, or 90%
during June 16 through November 30 each year, times (iii) the Cost of Eligible Inventory (net of Inventory Reserves). 

plus, (but only after the Accounts Receivable Activation date), 

	(ii)
	The
lesser of:

	(x)
	$3,000,000.00,
or 

2

 

	(y)
	The
face amount of Eligible Credit Card Receivables multiplied by the Credit Card Advance Rate.

	(c)
	Credit Limit. The definition of Credit Limit hereby deleted, and the following is inserted in its place: 

        "Credit Limit": $20,000,000.00; however, the Borrower may request an increase to the Credit Limit by $5,000,000.00 to $25,000,000.00 by
providing written notice to the Lender of the Borrower's request at any time on or before October 31, 2004. Upon receipt of such notice from the Borrower, and so long as the Borrower is not
then InDefault and/or no Event of Default has theretofore occurred, the Lender will determine, in its sole and exclusive discretion, whether an increase in the Credit Limit shall be implemented and,
if so, the terms and conditions on which the increase shall be conditioned. In the event that the Lender is unwilling to increase the Credit Limit, or if the Borrower and the Lender are unable to
agree upon the terms and conditions for the increase, then no increase shall be effected, and the Credit Limit shall remain at $20,000,000.00. Upon the implementation of the increase to the Credit
Limit to $25,000,000.00, the Borrowers shall pay to the Lender an incremental origination fee in the amount of $10,000.00. 

	(d)
	Eurodollar Margin. The definition of Eurodollar Margin is hereby deleted, and the following is inserted in its place: 

        "Eurodollar Margin": 250 basis points. 

	(e)
	Eurodollar Rate. The definition of Eurodollar Rate is hereby amended by inserting the following at the end thereof: 

        In
no event shall the Eurodollar Rate ever be less than 4.25% per annum. 

	(f)
	Maturity Date. The definition of Maturity Date is hereby deleted and the following is inserted in its place: 

        "Maturity Date:" April 28, 2006. 

	(g)
	NRLV Percentage. The definition of NRLV Percentage is hereby deleted and the following is inserted in its place: 

        "NRLV Percentage": The percentage of the Cost value of the Borrowers' Eligible Inventory that is estimated to be recoverable in an orderly
liquidation of such Eligible Inventory, net of liquidation expenses, as determined from time to time by the Lender in its reasonable discretion based upon the most recent appraisal obtained by the
Lender. 

	(h)
	Standard Inventory Advance Rate. The definition of Standard Inventory Advance Rate is hereby deleted and the following is inserted in
its place: 

        "Standard Inventory Advance Rate": 73%, or such greater or lesser percentage as the Lender may determine from time to time, in the
Lender's reasonable and exclusive discretion, based upon the most recent appraisal of the Borrowers' Inventory. 

	(i)
	Standard Reference Rate. The definition of Standard Reference Rate is hereby deleted and the following is inserted in its place: 

        "Standard Reference Rate": The aggregate of the Reference Rate plus 25 basis points per
annum, but in no event less than 4.25% per annum. 

3

 

Business Terms  

	3.
	The
following terms and conditions are amended as set forth below:

	(a)
	Eurodollar Loans. As provided in the Third Amendment, the option of the Borrower to elect to designate a Revolving Credit Loan as a
Eurodollar Loan was terminated. The ability of the Borrower to so designate a Revolving Credit Loan as a Eurodollar Loan is hereby reinstated. From and after the Effective Date, all terms and
conditions in the Loan Agreement with respect to the making of Eurodollar Loans are hereby reinstated.

	(b)
	Inventory Reserves. As of the Effective Date, the following Inventory Reserves shall be implemented in the corresponding amounts:

	(i)
	Shrink:
In an amount to be determined by the Lender from time to time, but in no event less than $50,000.00 at any time.

	(ii)
	Borrower's
Codes: 

	961—Delia's Outlet Liquidations	 	$	227,490
	962—Delia's Premier Liquidations	 	$	684,048
	971—Delia's Outlet RTV	 	$	2,858
	972—Delia's Premier RTV	 	$	64,037
	981—Delia's Premier Damages	 	$	173,824
	982—Delia's Outlet Damages	 	$	0.00
	991—Outlet Discrepancy Store	 	$	0.00
	992—Premier Discrepancy Store	 	$	3,503
	998—Dummy Store	 	$	0.00
	000—Distribution Warehouse	 	$	0.00
	010—Event Sale Warehouse	 	$	0.00

        The
Lender reserves its right as set forth under the Loan Agreement to increase the amounts of the foregoing Reserves, or to establish additional Reserves, in the Lender's sole and
exclusive discretion. Any such increase to an existing Reserve or establishment of a new Reserve shall take effect upon the next Business Day after receipt by the borrower of written notice thereof
from the Lender. 

4

 

	(c)
	Availability Reserves. As of the Effective Date, the following Availability Reserves shall be implemented in the corresponding amounts: 

	(i)	Customer Credit Liabilities:	 	In the amount of 50% of the outstanding retail and 50% of the outstanding catalog liabilities outstanding for 365 days or fewer.
	

(ii)	

Documentary L/C's:	
 	

In an amount equal to the aggregate of (i) 50% of the then outstanding face amount of all such L/C's that have been open for fewer than 46 days, and (ii) 100% of the then outstanding face amount of all such L/C's that have been open for greater than
45 days, as shown on the daily Borrowing Base Certificate.
	

(iii)	

Self-funded insurance:	
 	

In an amount equal to the aggregate sum of all amounts paid over the past three months.
	

(iv)	

Rent, in landlord lien states:	
 	

In an amount equal to one month's rent for all stores located in the states of Pennsylvania, Virginia, or Washington.
	

(v)	

Rent, where liens have been granted to landlords:	
 	

In an amount equal to one month's rent for all applicable locations.
	

(vi)	

Past due rent and common area maintenance charges:	
 	

An amount equal to 100% of the applicable amounts.
	

(vii)	

Sales tax:	
 	

An amount equal to 100% of the applicable amounts.

        The
Lender reserves its right as set forth under the Loan Agreement to increase the amounts of the foregoing Reserves, or to establish additional Reserves, in the Lender's sole and
exclusive discretion. Any such increase to an existing Reserve or establishment of a new Reserve shall take effect upon the next Business Day after receipt by the borrower of written notice thereof
from the Lender. 

	(d)
	Financial Reporting. In addition to any other financial reporting required to be submitted by the Borrowers under the Loan Agreement,
the Borrowers shall submit to the Lender daily, via telecopier at or before 1:00 P.M., a Borrowing Base Certificate. Inventory designated thereon shall be brought forward and updated no less
frequently than once each week, and on each day at any time that Availability is equal to or less than $2,000,000.00.

	(e)
	Financial Performance Covenants. Until the maturity Date, the Borrowers shall comply with the following financial performance
covenants:

	(i)
	Inventory Level. The Borrowers shall at all times, tested monthly as of the end of each calendar month, maintain Eligible Inventory in
aggregate amounts (measured at Cost on a rolling two-month average basis) not (A) less than the greater of (i) 80% of the amounts shown on the Business Plan, or
(ii) the specified amounts shown on Exhibit "A", annexed hereto, nor (B) greater than the lesser of (i) 120% of the amounts shown on the Business Plan, or (ii) the
specified amounts shown on Exhibit "A", annexed hereto, during the corresponding period.

	(ii)
	Revenue. The Borrowers shall at all times, tested monthly as of the end of each calendar month on a cumulative
year-to-date basis (commencing with the fiscal month end of 

5

 

April,
2003), achieve revenue in amounts not less than 85% of the amounts projected in the Business Plan, as shown on Exhibit "A", annexed hereto(1). 

	(1)
	Commencing
with the fiscal month end April, 2004, this covenant shall be tested on a trailing 12 month cumulative basis.

	(iii)
	Gross Profit Margin. The Borrowers shall at all times, tested monthly as of the end of each calendar month on a cumulative
year-to-date basis (commencing with the fiscal month end of April, 2003), achieve gross profit margins in amounts not less than 85% of the amounts projected in the Business
Plan, as shown on Exhibit "A", annexed hereto(2). 

	(2)
	Commencing
with the fiscal month end April, 2004, this covenant shall be tested on a trailing 12 month cumulative basis.

	(iv)
	Capital Expenditures. The Borrowers shall not permit their capital expenditures to exceed $500,000.00 in the aggregate during the
fiscal year ending on or about January 31, 2004. Thereafter, the Lender and the Borrowers shall endeavor to agree upon mutually acceptable extensions of the capital expenditure covenant. In the
event that the Lender and the Borrower are unable to agree, then the Lender may, in the exercise of its good faith business judgment, but in its sole and exclusive discretion nonetheless, establish
the capital expenditure covenant for future periods.

	(f)
	Fees.

	(i)
	Amendment
and Extension Fee. In consideration of the Lender's agreement to enter into this Amendment, the Borrowers shall pay to the Lender an amendment and extension fee in the
amount of $75,000.00. The amendment and extension fee shall be fully earned upon the execution of this Amendment, shall be retained by the Lender under all circumstances, and shall not be applied in
reduction of any of the other Liabilities. The amendment and extension fee shall be paid (i) $37,500.00 upon the execution of this Amendment, and (ii) the balance of $37,500.00 upon the
earlier of (x) demand therefor by the Lender upon the occurrence of any Event of Default, or (y) April 28, 2004.

	(ii)
	Anniversary
Fee. The Anniversary Fee contained in Section 2-13(b) of the Loan Agreement is hereby deleted.

	(iii)
	Unused
Line Fee. The provisions of Section 2-13(d) of the Loan Agreement are hereby deleted, and the following is inserted in their place: 

"In
addition to any other fee to be paid by the Borrowers on account of the Revolving Credit, the Borrowers shall pay the Lender an Unused Line Fee of 0.375% per annum of the average difference,
during the month just ended (or relevant period with respect to the payment being made on the Termination Date) between the Credit Limit and the aggregate of the unpaid principal balance of the Loan
Account and the undrawn Stated Amount of L/C's outstanding during the relevant period. The Unused Line Fee shall be paid in arrears, on the first day of each month after the execution of this
Amendment and on the Termination Date." 

	(iv)
	Collateral
Monitoring Fee. The provisions of Section 2-13(c) of the Loan Agreement are hereby deleted, and the following is inserted in their place: 

        "Collateral Monitoring Fee": The Borrowers shall pay to the Lender a Collateral Monitoring Fee in the amount of $2,500.00 per month on the
first day of each calender month until all Liabilities have been irrevocably paid in full. 

6

 

	(v)
	Early
Termination Fee: The provisions of Section 2-13(e) of the Loan Agreement are hereby deleted, and the following is inserted in their place:

	(A)
	In
the event that the Termination Date occurs, for any reason, prior to the Maturity Date, the Borrower shall pay to the Lender the "Early Termination
Fee" in respect of amounts which are or become payable by reason thereof equal to the following:

	(i)
	Termination
Date on or before April 28, 2004, $500,000.00;

	(ii)
	Termination
Date after April 28, 2004, but on or before April 28, 2005, $250,000.00; and

	(iii)
	Termination
Date after April 28, 2005, $100,000.00.

	(B)
	The
Lender and the Borrower agree and acknowledge that the Lender will have suffered damages on account of the early termination of the Revolving Credit and that, in view of the
difficulty in ascertaining the amount of such damages, the Early Termination Fee constitutes reasonable compensation and liquidated damages to compensate the Lender on account thereof.

	(C)
	Notwithstanding
the foregoing, if the Termination Date occurs as a result of a refinancing of the Liabilities by the Borrower with another commercial lender with proceeds of a credit
facility containing terms and conditions which clearly and objectively afford the Borrowers greater borrowing availability on average than those provided by the Lender hereunder, then no Early
Termination Fee shall be due or payable. 

 PART 2.    UPDATED BUSINESS PLAN  

        On or before the execution of this Amendment, the Borrowers have presented to the Lender (i) an updated 13-week cash flow projection for the
succeeding 13 weeks, and (ii) a business plan dated March 13, 2003 with respect to the Borrowers' projected business operations for the
succeeding 12 months (collectively, the "Business Plan"), a copy of which is annexed hereto marked Schedule 1. The Borrowers warrant and
represent to the Lender that the Business Plan represents the Borrowers' good faith and reasonable estimation of the projected financial performance of the Borrowers' business for the periods set
forth therein and is based upon estimates and assumptions stated therein, all of which the Borrowers believe to be reasonable and fair in light of conditions and facts known to management of the
Borrowers as of the date of the preparation thereof (it being understood and acknowledged by the Lender that such financial performance as it relates to future events is not to be viewed as
representations or warranties that such events will occur, and that actual results may differ from such projected financial performance). 

 PART 3.    WAIVER OF DEFAULTS.  

        1.     The
Borrower has advised the Lender that the Borrower is in default of the Loan Agreement and the Fifth Amendment due to (i) the Borrower's failure to maintain
required inventory levels, and (ii) the Borrower's failure to comply with all financial reporting requirements (collectively, the "Existing Events of
Default"). The Lender hereby waives, as of the Effective Date, the Existing Events of Default. 

	a.
	The
waiver of the Existing Events of Default is a one-time waiver, and does not apply to any other Events of Default, whether now existing or hereafter arising, and whether
with respect to those same provisions or otherwise.

	b.
	The
foregoing waiver is expressly made in reliance upon the Borrower's representations and warranties contained in this Sixth Amendment. 

7

 

 PART 4.    PRECONDITIONS TO EFFECTIVENESS:  

        This Amendment shall not take effect unless and until each and all of the following have been consummated, all on terms and conditions acceptable to the Lender,
in the Lender's sole and exclusive discretion: 

        1.     Execution
of this Amendment and each of the other documents, instruments, and agreements contemplated herein. 

        2.     Receipt
by the Lender of duly executed and issued resolutions confirming the authority of the Borrowers to enter into this Amendment. 

        3.     Confirmation
by the Lender of receipt from the Borrower of all reporting requirements under the Loan Agreement which were to have been delivered to the Lender on or
before the Execution Date. 

        4.     Receipt
by the Lender of $37,500.00 constituting the first installment of the Amendment and Extension Fee. 

 PART 5.    GENERAL PROVISIONS:  

        1.     The
Borrowers acknowledge and consent to the fact that the Loan Agreement and each of the other Loan Documents have been assigned by Wells Fargo Retail Finance, LLC to
Wells Fargo Retail Finance II, LLC, and that Wells Fargo Retail Finance II, LLC is now the Lender for all purposes with respect to the Loan Agreement and each of the other Loan Documents. 

        2.     The
Borrowers and each Guarantor, by executing this Amendment where indicated below, hereby ratify, confirm, and reaffirm all and singular the terms and conditions of the
Loan Documents. The Borrowers and Guarantors further acknowledge and agree that, except as specifically modified in this Amendment, all terms and conditions of the Loan Documents shall remain in full
force and effect. Further, the Borrowers acknowledge and agree that any failure of the Borrowers to perform in accordance with the terms and conditions of this Amendment shall constitute an Event of
Default under the Loan Agreement. 

        3.     The
Borrowers represent and warrant that there is not presently pending or threatened by or against any of the Borrowers any suit, action, proceeding, or investigation
which, if determined adversely to any of the Borrowers, could reasonably be expected to have a Material Adverse Effect. 

        4.     The
Borrowers acknowledge and agree that there is no basis nor set of facts on which any amount (or any portion thereof) owed by the Borrowers or any Guarantor under any
Loan Document could be reduced, offset, waived, or forgiven, by rescission or otherwise; nor is there any claim, counterclaim, offset, or defense (or other right, remedy, or basis having a similar
effect) available to any of the Borrowers or to any Guarantor with regard thereto; nor is there any basis on which the terms and conditions of any of the Liabilities could be claimed to be other than
as stated on the written instruments which evidence such Liabilities. 

        5.     The
Borrowers and each Guarantor, by executing this Amendment where indicated below, hereby acknowledge and agree that they have no offsets, defenses, claims, or
counterclaims against the Lender or the Lender's officers, directors, employees, attorneys, representatives, parent, affiliates, predecessors, successors, and assigns with respect to the Liabilities
or otherwise, and that if the Borrowers now have, or ever did have, any offsets, defenses, claims, or counterclaims against the Lender or the Lender's officers, directors, employees, attorneys,
representatives, parent, affiliates, predecessors, successors, and assigns, whether known or unknown, at law or in equity, from the beginning of the world through this date and through the time of
execution of this Amendment, all of them are hereby expressly WAIVED, and the Borrowers each hereby  RELEASE the Lender and the 

8

 

Lender's
officers, directors, employees, attorneys, representatives, parent, affiliates, predecessors, successors, and assigns from any liability therefor. 

        6.     The
Borrowers and the Guarantors shall, from and after the execution of this Amendment, execute and deliver to the Lender whatever additional documents, instruments, and
agreements that the Lender reasonably may require in order to vest or perfect the Loan Documents and the Collateral granted therein more securely in the Lender and to otherwise give effect to the
terms and conditions of this Amendment 

        7.     The
Borrowers agree that upon the filing of any Petition for Relief by or against any one or more of the Borrowers under the United States Bankruptcy Code, the Lender
shall be entitled to immediate and complete relief from the automatic stay, and the Lender shall be permitted to proceed to protect and enforce its contractual and state law rights and remedies. The
Borrowers hereby expressly assent to any motion filed by the Lender seeking relief from the automatic stay. The Borrowers further hereby expressly WAIVE
the protections afforded under Section 362 of the United States Bankruptcy Code with respect to the Lender. 

        8.     The
Borrowers shall pay on demand all reasonable costs and expenses of the Lender, including without limitation, reasonable attorneys' fees heretofore or hereafter
incurred by the Lender in connection with the loan arrangement maintained with the Borrowers, the Loan Agreement and any of the other Loan Documents, or in connection with the preparation,
negotiation, execution, and delivery of this Sixth Amendment. The Lender is hereby authorized to pay all those costs and expenses by making advances under the Revolving Credit from time to time,
whether or not sufficient Availability exists therefor, and whether or not the Lender is otherwise making loans and advances to the Borrowers at that time. 

        9.     This
Amendment shall be binding upon the Borrowers and the Borrowers' respective employees, representatives, successors, and assigns, and shall inure to the benefit of
the Lender and the Lender's successors and assigns. This Amendment and all documents, instruments, and agreements executed in connection herewith incorporate all of the discussions and negotiations
between the Borrowers and the Lender, either expressed or implied, concerning the matters included herein and in such other documents, instruments and agreements, any statute, custom, or usage to the
contrary notwithstanding. No such discussions or negotiations shall limit, modify, or otherwise affect the provisions hereof. No modification, amendment, or waiver of any provision of this Amendment,
or any provision of any other document, instrument, or agreement between the Borrowers and the Lender shall be effective unless executed in writing by the party to be charged with such modification,
amendment, or waiver, and if such party be the Lender, then by a duly authorized officer thereof. 

        10.   Terms
used in this Sixth Amendment which are defined in the Loan Agreement are used as so defined. 

        11.   This
Sixth Amendment may be executed in several counterparts and by each party on a separate counterpart, each of which when so executed and delivered shall be an
original, and all of which together shall constitute one instrument. 

        12.   In
connection with the interpretation of this Amendment and all other documents, instruments, and agreements incidental hereto: 

        (a)   All
rights and obligations hereunder and thereunder, including matters of construction, validity, and performance, shall be governed by and construed in accordance with
the law of the Commonwealth of Massachusetts and are intended to take effect as sealed instruments. 

        (b)   The
captions of this Amendment are for convenience purposes only, and shall not be used in construing the intent of the Lender and the Borrowers under this Amendment. 

9

 

        (c)   In
the event of any inconsistency between the provisions of this Amendment and any other document, instrument, or agreement entered into by and between the Lender and
the Borrowers, the provisions of this Amendment shall govern and control. Where necessary, corresponding amendments shall be deemed to have been made to each of the other Loan Documents so as to make
them not inconsistent with this Amendment. 

        (d)   The
Lender and the Borrowers have prepared this Amendment and all documents, instruments, and agreements incidental hereto with the aid and assistance of their
respective counsel. Accordingly, all of them shall be deemed to have been drafted by the Lender and the Borrowers and shall not be construed against either the Lender or the Borrowers. 

        (e)   Any
determination that any provision or application of this Amendment is invalid, illegal, or unenforceable in any respect, or in any instance, shall not affect the
validity, legality, or enforceability of any such provision in any other instance, or the validity, legality, or enforceability of any other provision of this Amendment. 

        (f)    The
Borrowers warrant and represent to the Lender that the Borrowers: 

        (i)    Have
read and understand all of the terms and conditions of this Amendment; 

        (ii)   Intend
to be bound by the terms and conditions of this Amendment; 

        (iii)  Are
executing this Amendment freely and voluntarily, without duress, after consultation with independent counsel of their own selection. 

[Signatures
follow] 

10

 
[Signature
Page to Sixth Amendment] 

	 	 	dELiA*S CORP.

(" LEAD BORROWER")
	

 	
 	

By	

/s/  EVAN GUILLEMIN      
	 	 	 	

	 	 	Title:	COO
	

 	
 	

dELiA*S CORP.

dELiA*S OPERATING COMPANY

dELiA*S DISTRIBUTION COMPANY

dELiA*S RETAIL COMPANY

"BORROWERS"
	

 	
 	

By	

/s/  EVAN GUILLEMIN      
	 	 	 	

	 	 	Title:	CFO
	

 	
 	

WELLS FARGO RETAIL FINANCE II, LLC

(" LENDER")
	

 	
 	

By	

/s/  DANIEL DURKIN      
	 	 	 	

	 	 	Title:	Vice President

       

	Acknowledged and Agreed:

("Guarantors")	 
	

iTurf Finance Company	

 
	

By:	

/s/  EVAN GUILLEMIN      	

 
	 	
	 
	Title:	CFO	 
	

dELiA*S Group, Inc.	

 
	

By:	

/s/  EVAN GUILLEMIN      	

 
	 	
	 
	Title:	CFO	 
	

dELiA*S Properties, Inc.	

 
	

By:	

/s/  EVAN GUILLEMIN      	

 
	 	
	 
	Title:	Treasurer	 

11

QuickLinks

Exhibit 10.45

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00052-of-00352.parquet"}]]