Document:

Letter Agreement dated December 6, 2005

 Exhibit 10.23.2 
  
 WELLS FARGO RETAIL FINANCE II, LLC 
 One Boston Place, 19th Floor 
 Boston, Massachusetts 02108 
  
 December 6, 2005 
  
 dELiA*s Assets Corp. and 
 the other Borrowers named in the 
 Loan Agreement referred to below 
 435 Hudson Street 
 New York, NY 10014 
  
 Dear Ladies and Gentlemen: 
  
 Reference is made to that certain Amended and Restated Loan and Security Agreement, dated as of October 14, 2004 (the “Loan Agreement”), by and among dELiA*s Assets Corp. (formerly known as dELiA*s Corp.), the
other borrowers signatory thereto and Wells Fargo Retail Finance II, LLC (the “Lender”). Capitalized terms used herein without definition shall have the respective meanings ascribed to them in the Loan Agreement. 

 
 You have advised us that Alloy, Inc. (“Alloy”)
plans to engage in a “Spinoff” (as defined in the Registration Statement of dELiA*s, Inc. (the “New Parent”) on Form S-1 filed with the Securities and Exchange Commission on September 7, 2005, as amended or
supplemented (the “Registration Statement”)) of the New Parent and its subsidiaries, as provided in such Registration Statement. You have also advised us that, in connection with the Spinoff, Alloy will cause the New Parent
to directly or indirectly own, of record, all of the issued and outstanding shares of capital stock of, or all of the membership interests in, the Lead Borrower, each other Borrower and each Guarantor, all as more fully described in the Registration
Statement. 
  
 Accordingly, the Lead Borrower, the other
Borrowers, and the Lender hereby agree as follows: 
  
 1. Consent Corporate Reorganization. The Lender hereby: 
  
 (A) Consents to the corporate reorganization of the Lead Borrower, the other Borrowers, and the Guarantors as contemplated by the Spinoff, including all actions taken by Alloy to cause the New Parent to directly or
indirectly own, of record, all of the issued and outstanding shares of capital stock of, or all of the membership interests in, the 

 
Lead Borrower, each other Borrower, and each Guarantor, and hereby waives any Default or Event of Default under any Loan Document resulting therefrom or from
any Change of Control on account thereof; and 
  
 (B) Agrees to
terminate the Make Whole Agreement (the “Make Whole Agreement”) dated October 14, 2004 entered into by Alloy in favor of the Lender in connection with the transactions contemplated by the Loan Agreement and to release
Alloy from its obligations under the Make Whole Agreement, all as provided in, and subject to the terms and conditions of, a letter agreement dated December 6, 2005 entered into by and between Alloy and the Lender. 
  
 2. Conditions to Consent. To induce the Lender to
consent to the corporate reorganization and release Alloy from its obligations under the Make Whole Agreement, the Lead Borrower and each other Borrower agrees that unless and until both (i) the Closing has occurred on the subscription for
MLF’s pro rata share of the Rights (as defined in the Standby Purchase Agreement referred to below) and, if necessary, the Backstop Amount and MLF has paid the Exercise Price for such pro rata share of the Rights and, if necessary, the Backstop
Amount (as each of the terms “Backstop Amount” and “Exercise Price” is defined in Section 2 of that certain Standby Purchase Agreement dated as of September 7, 2005 entered into by and among Alloy, dELiA*s, Inc., and
MLF Investments, LLC), and (ii) the Lead Borrower and each other Borrower have closed on that certain Second Amended and Restated Loan and Security Agreement (the “2005 Loan Agreement”) currently being negotiated and
contemplated to be entered into with the Lender, and have executed and delivered each and all of the documents, instruments, and agreements incidental thereto, all on terms and conditions acceptable to the Lender, then, from and after the date of
this Letter Agreement and until the 2005 Loan Agreement shall have been executed and delivered, and notwithstanding anything to the contrary contained in the Loan Agreement: 
  
 (A) The “Availability Block” shall be established at all times in the amount of $2,500,000.00; 
  
 (B) Only Prime Rate Loans shall be made by the Lender. The ability of the
Lead Borrower to request that a Revolving Credit Loan be made as a LIBOR Loan, or to convert a Revolving Credit Loan to a LIBOR Loan, or to continue a Revolving Credit Loan as a LIBOR Loan, shall be suspended, and the only Revolving Credit Loans
made shall be Prime Rate Loans. Further, upon the expiry of the Interest Period for any existing LIBOR Loan, each such LIBOR Loan shall be converted to a Prime Rate Loan; and 
  
 (C) The Borrowers shall pay to the Lender a fee on account of outstanding L/C’s, the issuance of which had been
procured by the Lender, quarterly in arrears, equal to the following per annum percentages of the average Stated Amount of the following categories of L/C’s outstanding during the subject quarter: 
  
 (i) Standby L/C’s: At a per annum rate equal to 1.20%.

 (ii) Documentary L/C’s: At a per annum rate equal to 1.20%. 
  
 3. Beneficiaries. Each Guarantor (i) assents to
the foregoing terms and conditions and (ii) shall be an intended third party beneficiary hereof. 
  

			
	 Very truly yours,

	
	 Wells Fargo Retail Finance II, LLC

		
	By:	 	     /s/ Francis D. O’Connor

	 	 	 Name: Francis D. O’Connor

	 	 	 Title: Senior Vice President

  

			
	 Accepted and agreed to by:

	
	 (the Borrowers)
 dELiA*s Assets Corp. (formerly dELiA*s Corp.)
 Alloy Merchandise, LLC
 Skate Direct, LLC
 dELiA*s Operating Company
 dELiA*s Retail Company

		
	By:	 	     /s/ Walter Killough

	 	 	 Name: Walter Killough

	 	 	 Title: Chief Operating Officer

  
 Assented to by: 
  
 (the
“Guarantors”) 
 dELiA*s Group Inc. 
 dELiA*s Distribution Company 
 AMG Direct, LLC 
 iTurf Finance Company 
 dELiA*s Properties Inc. 
 Alloy Merchandising Group, LLC 

			
		
	By:	 	     /s/ Walter Killough

	 	 	 Name: Walter Killough

	 	 	 Title: Chief Operating OfficerForm of Third Amendment to Construction Loan Agreement

 Exhibit 10.26.5 
  
 THIRD AMENDMENT TO CONSTRUCTION LOAN AGREEMENT 
  
 THIS THIRD AMENDMENT TO CONSTRUCTION LOAN AGREEMENT (the “Third Amendment”), is made and entered into this
     day of December, 2005, by and between MANUFACTURERS AND TRADERS TRUST COMPANY, a New York banking corporation, successor in interest to Allfirst Bank (the “Bank”), and dELiA*s DISTRIBUTION COMPANY, a
Delaware corporation (the “Borrower”), and with the joinder of dELiA*s CORP. and dELiA*s, INC., jointly and severally (the “Guarantors”). 
  
 B A C K G R O U N D : 
  
 A. Borrower and Bank entered into a Construction Loan Agreement dated August 6, 1999, which was amended by an Amendment to Construction Loan
Agreement dated April 19, 2004 and a Second Amendment to Construction Loan Agreement dated September 3, 2004 (as amended, the “Loan Agreement”). The Loan Agreement is incorporated herein by reference and made a part hereof. All
capitalized terms used herein without definition which are defined in the Loan Agreement shall have the meanings set forth therein. 
  
 B. Borrower and Bank have agreed to further amend the Loan Agreement. 
  
 C. Borrower has no defense, charge, defalcation, claim, plea, demand, set-off or counterclaim to or against the Loan
Agreement, the Loan Documents or any document(s) or instrument(s) related thereto or associated therewith. 
  
 NOW, THEREFORE, for valuable consideration, receipt of which is hereby acknowledged, and intending to be legally bound hereby, the parties hereto covenant
and agree as follows: 
  
 1. That the above Background is
incorporated herein by reference. 
  
 2. That the Loan Agreement
be and hereby is amended to provide that the Bank agrees to release Alloy, Inc. as a surety for the Loan conditioned on the substitution of dELiA*s, Inc. as a surety for the Loan. 
  
 3. That paragraph 3(q) of the Loan Agreement be and hereby is amended to provide that dELiA*s, Inc. shall achieve and
maintain (a) at all times unrestricted cash and marketable securities and available borrowing capacity on its line of credit with Wells Fargo, N.A. (provided that dELiA*s, Inc. is not in default on such line of credit) of at least $10,000,000
or (b) on a quarterly rolling twelve months basis (or full fiscal year basis) during the term of the Loan a Funds Flow Coverage Ratio of at least 1.20 to 1.0. “Funds Flow Coverage Ratio” shall mean (A) the sum of (i) cash
flow from operating activities before changes in operating assets and liabilities and (ii) cash interest expense, divided by (B) the sum of (i) cash interest expense and (ii) current maturities of long term debt. 
  
 4. That in consideration for the above modifications, the Borrower shall pay
to Bank a modification fee of $13,500, which shall be deemed to be immediately earned on payment and shall be in addition to any and all other payments required under the Loan Documents. 
  
 5. That the Borrower reaffirms and restates the representations and warranties set forth in Section 2 of the Agreement,
as amended by this Third Amendment, and all such representations 

 
and warranties shall be true and correct on the date hereof with the same force and effect as if made on such date, except as they may specifically refer to
an earlier date(s). The Borrower represents and warrants (which representations and warranties shall survive the execution and delivery hereof) to the Lender that (i) this Third Amendment has been duly authorized, executed and delivered and
constitutes a legal, valid and binding obligation of the Borrower, and is enforceable in accordance with its terms; (ii) the Borrower is not in default under the Loan Agreement or any of the other Loan Documents, and the Borrower is in full
compliance with all of the terms and conditions thereof; (iii) no event exists which with the passage of time, notice, or both, will constitute an Event of Default under the Agreement or any of the other Loan Documents; and (iv) there have
been no material adverse changes in the Borrower’s finances or operations which would cause the Borrower to be in default under any of the financial covenants contained in the Loan Agreement or any of the other Loan Documents. 
  
 4. That the terms and conditions, paragraph sections, collateral
requirements, representations and warranties of the Loan Agreement and Loan Documents, together with all understandings by and between the parties to this Third Amendment evidenced by writings of the same or subsequent date, not in conflict with the
above modifications under this Third Amendment, shall remain in full force and effect and are hereby ratified, reaffirmed and confirmed. 
  
 5. That all references to the Loan Agreement in the Loan Documents and the other documents and instruments delivered pursuant to or in connection
therewith, as well as in writings of the same or subsequent date, shall mean the Loan Agreement as amended hereby and as each may in the future be amended, restated, supplemented or modified from time to time. 
  
 6. That the parties hereto shall, at any time, and from time to time
following the execution of this Third Amendment, execute and deliver all such further instruments and take all such further action as may be reasonably necessary or appropriate in order to carry out the provisions of this Third Amendment.

  
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 IN WITNESS WHEREOF, and intending to be legally bound hereby, the parties have caused this Third
Amendment to be executed as of the day and year first above written. 
  

									
	 	 	 	 	 MANUFACTURERS AND TRADERS TRUST COMPANY

					
	 	 	 	 	 	 	 By:
	 	 
	 	 	 	 	 	 	 	 	 Keith A. Mummert, Vice President

			
	 	 	 	 	“Bank”
			
	 ATTEST:
	 	 	 	 dELiA*s DISTRIBUTION COMPANY

					
	By:	 	 	 	 	 	 By:
	 	 
					
	 Title:
	 	 	 	 	 	 Title:
	 	 
			
	 	 	 	 	“Borrower”
			
	 ATTEST:
	 	 	 	 dELiA*s CORP.

					
	By:	 	 	 	 	 	 By:
	 	 
					
	 Title:
	 	 	 	 	 	 Title:
	 	 
			
	 ATTEST:
	 	 	 	 dELiA*s, INC.

					
	By:	 	 	 	 	 	 By:
	 	 
					
	 Title:
	 	 	 	 	 	 Title:
	 	 
			
	 	 	 	 	“Guarantors”

  

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