Document:

Form of Continuing Guarantee, dated as of December 8, 2005

 Exhibit 10.26.6 
  
 

 
  
 CONTINUING GUARANTY 

(Business Organization) 
 Pennsylvania 
  

			
	 GUARANTOR:
	  	dELiA*s, INC., a x corporation __ general partnership __ limited partnership __ limited liability company, organized under the laws of the State
of Delaware. Chief executive office/principal residence: 435 Hudson Street, New York, New York 10014 .
		
	 BORROWER:
	  	dELiA*s DISTRIBUTION COMPANY, a x corporation __ general partnership __ limited partnership __ limited liability company, organized under the laws of
the State of Delaware. Chief executive office/principal residence: 435 Hudson Street, New York, New York 10014.
		
	 BANK:
	  	Manufacturers and Traders Trust Company, a New York banking corporation, with banking offices located at One M&T Plaza, Buffalo, New York 14240 Attention: Office of the General
Counsel.

  
 1. Guaranty.

  
 (a) Guarantor, intending to be legally bound,
hereby unconditionally guarantees the full and prompt payment and performance of any and all of Borrower’s Obligations (as defined below) to the Bank when due, whether at stated maturity, by acceleration or otherwise. As used in this Guaranty,
the term “Obligations” shall mean any and all obligations, indebtedness and other liabilities of Borrower to the Bank now or hereafter existing, of every kind and nature and all accrued and unpaid interest thereon and all Expenses (as
defined below) including without limitation, whether such obligations, indebtedness and other liabilities (i) are direct, contingent, liquidated, unliquidated, secured, unsecured, matured or unmatured; (ii) are pursuant to a guaranty or
surety in favor of the Bank; (iii) were originally contracted with the Bank or with another party (including obligations under a guaranty or surety originally in favor of such other party); (iv) are contracted by Borrower alone or jointly
with one or more other parties; (v) are or are not evidenced by a writing; (vi) are renewed, replaced, modified or extended; and (vii) are periodically extinguished and subsequently reincurred or reduced and thereafter increased.
Guarantor will pay or perform its obligations under this Guaranty upon demand. This Guaranty is and is intended to be a continuing guaranty of payment (not collection) of the Obligations (irrespective of the aggregate amount thereof and whether or
not the Obligations from time to time exceeds the amount of this Guaranty, if limited), independent of, in addition and without modification to, and does not impair or in any way affect, any other guaranty, indorsement, or other agreement in
connection with the Obligations, or in connection with any other indebtedness or liability to the Bank or collateral held by the Bank therefor or with respect thereto, whether or not furnished by Guarantor. Guarantor understands that the Bank can
bring an action under this Guaranty without being required to exhaust other remedies or demand payment first from other parties. 
  
 (b) Guarantor acknowledges the receipt of valuable consideration for this Guaranty and acknowledges that the Bank is relying on this
Guaranty in making a financial accommodation to Borrower, whether a commitment to lend, extension, modification or replacement of, or forbearance with respect to, any Obligation, cancellation of another guaranty, purchase of Borrower’s assets,
or other valuable consideration. 
  
 2. Continuing, Absolute,
Unconditional. This Guaranty is irrevocable, absolute, continuing, unconditional and general without any limitation. 
  
 3. Guarantor’s Waivers & Authorizations. 
  
 (a) Guarantor’s obligations shall not be released, impaired or affected in any way including by any of the following, all of which
Guarantor hereby waives (i) any bankruptcy, reorganization or insolvency under any law of Borrower or that of any other party, or by any action of a trustee in any such proceeding; (ii) any new agreements or obligations of Borrower or any
other party with the Bank; (iii) any adjustment, compromise or release of any Obligations of Borrower, by the Bank or any other party; the existence or nonexistence or order of any filings, exchanges, releases, impairment or sale of, or failure
to perfect or continue the perfection of a security interest in any collateral for the Obligations; (iv) any failure of Guarantor to receive notice of any intended disposition of such collateral; (v) any fictitiousness, incorrectness,
invalidity or unenforceability, for any reason, of any instrument or other agreement which may evidence any Obligation; (vi) any composition, extension, stay or other statutory relief granted to Borrower including, without limitation, the
expiration of the period of any statute of limitations with respect to any lawsuit or other legal proceeding against Borrower or any person in any way related to the Obligations or a part thereof or any collateral therefor; (vii) any change in
form of organization, name, membership or ownership of Borrower or Guarantor; (viii) any refusal or failure of the Bank or any other person prior to the date hereof or hereafter to grant any additional loan or other credit accommodation to
Borrower or the Bank’s or any other party’s receipt of notice of such refusal or failure; (ix) any setoff, defense or counterclaim of Borrower with respect to the obligations or otherwise arising, either directly or indirectly, in
regard to the Obligations; or (x) any other circumstance that might otherwise constitute a legal or equitable defense to Guarantor’s obligations under this Guaranty. 
  
 (b) The Guarantor waives acceptance, assent and all rights of notice or demand including without limitation
(i) notice of acceptance of this Guaranty, of Borrower’s default or nonpayment of any Obligation, and of changes in Borrower’s financial condition; (ii) presentment, protest, notice of protest and demand for payment;
(iii) notice that any Obligations has been incurred or of the reliance by the Bank upon this Guaranty; and (iv) any other notice, demand or condition to which Guarantor might otherwise be entitled prior to the Bank’s reliance on or
enforcement of this Guaranty. Guarantor further authorizes the Bank, without notice, demand or additional reservation of rights against Guarantor and without affecting Guarantor’s obligations hereunder, from time to time: (i) to renew,
refinance, modify, subordinate, extend, increase, accelerate, or otherwise change the time for payment of, the terms of or the interest on the Obligations or any part thereof; (ii) to accept and hold collateral from any party for the payment of
any or all of the Obligations, and to exchange, enforce or refrain from enforcing, or release any or all of such collateral; (iii) to accept any indorsement or guaranty of any or all of the Obligations or any negotiable instrument or other
writing intended to create an accord and satisfaction with respect to any or all of the Obligations; (iv) to 

  

					
	 	 	1	 	Manufacturers and Traders Trust Company, 2002

 
release, replace or modify the obligation of any indorser or guarantor, or any party who has given any collateral for any of all of the Obligations, or any
other party in any way obligated to pay any or all of the Obligations, and to enforce or refrain from enforcing, or compromise or modify, the terms of any obligation of any such indorser, guarantor or party; (v) to dispose of any and all
collateral securing the Obligations in any manner as the Bank, in its sole discretion, may deem appropriate, and to direct the order and the enforcement of any and all indorsements and guaranties relating to the Obligations in the Bank’s sole
discretion; and (vi) to determine the manner, amount and time of application of payments and credits, if any, to be made on all or any part of the Obligations including, without limitation, if this Guaranty is limited in amount, to make any
such application to Obligations, if any, in excess of the amount of this Guaranty. 
  
 (c) Notwithstanding any other provision in this Guaranty, Guarantor irrevocably waives, without notice, any right he or she may have at
law or in equity (including without limitation any law subrogating Guarantor to the rights of the Bank) to seek contribution, indemnification or any other form of reimbursement from Borrower or any other obligor or guarantor of the Obligations for
any disbursement made under this Guaranty or otherwise. 
  
 4.
Termination. This Guaranty shall remain in full force and effect as to each Guarantor until actual receipt by the Bank officer responsible for Borrower’s relationship with the Bank of written notice of Guarantor’s intent to
terminate (or Guarantor’s death or incapacity) plus the lapse of a reasonable time for the Bank to act on such notice (the “Receipt of Notice”); provided, however, this Guaranty shall remain in full force and effect thereafter until
all Obligations outstanding, or contracted or committed for (whether or not outstanding), before such Receipt of Notice by the Bank, and any extensions, renewals or replacements thereof (whether made before or after such Receipt of Notice), together
with interest accruing thereon after such Receipt of Notice, shall be finally and irrevocably paid in full. Discontinuance of this Guaranty as to one Guarantor shall not operate as a discontinuance hereof as to any other guarantor. Payment of all of
the Obligations from time to time shall not operate as a discontinuance of this Guaranty, unless a Receipt of Notice as provided above has been received by the Bank. Guarantor agrees that, to the extent that Borrower makes a payment or payments to
the Bank on the Obligations, or the Bank receives any proceeds of collateral to be applied to the Obligations, which payment or payments or any part thereof are subsequently invalidated, declared to be fraudulent or preferential, set aside or
otherwise are required to be repaid to Borrower, its estate, trustee, receiver or any other party, including, without limitation, under any bankruptcy law, state or federal law, common law or equitable cause, then to the extent of such repayment,
the obligation or part thereof which has been paid, reduced or satisfied by such amount shall be reinstated and continued in full force and effect as of the date such initial payment, reduction or satisfaction occurred, notwithstanding any contrary
action which may have been taken by the Bank in reliance upon such payment or payments. As of the date any payment or proceeds of collateral are returned, the statute of limitations shall start anew with respect to any action or proceeding by the
Bank against Guarantor under this Guaranty. Likewise, any acknowledgment, reaffirmation or payment, by Borrower or any third party, of any portion of the Obligations, shall be deemed to be made as agent for the Guarantor, strictly for the purposes
of tolling the running of (and/or preventing the operation of) the applicable statute of limitations with respect to any action or proceeding by the Bank against Guarantor under this Guaranty. 
  
 5. Expenses. Guarantor agrees to reimburse the Bank on demand for all
the Bank’s expenses, damages and losses of any kind or nature, including without limitation costs of collection and actual attorneys’ fees and disbursements whether for internal or external counsel incurred by the Bank in attempting to
enforce this Guaranty, collect any of the Obligations including any workout or bankruptcy proceedings or other legal proceedings or appeal, realize on any collateral, defense of any action under the prior paragraph or for any other purpose related
to the Obligations (collectively, “Expenses”). Expenses will accrue interest at the highest default rate in any instrument evidencing the Obligations until payment is actually received by the Bank. 
  
 6. Financial and Other Information. Guarantor shall promptly deliver
to the Bank copies of all annual reports, proxy statements and similar information distributed to shareholders, partners or members and of all filings with the Securities and Exchange Commission and the Pension Benefit Guaranty Corporation and shall
provide to the Bank: (i) within ten (10) days after filing with the Securities Exchange Commission with respect to its first three fiscal quarters, consolidating and consolidated statements of income and cash flows for the quarter, for the
corresponding quarter in the previous fiscal year and for the period from the end of the previous fiscal year, with a consolidating and consolidated balance sheet as of the quarter end; and (ii) within ten (10) days after filing with the
securities Exchange Commission with respect to each fiscal year, consolidating and consolidated statements of Guarantor’s income and cash flows and its consolidating and consolidated balance sheet as of the end of such fiscal year, setting
forth comparative figures for the preceding fiscal year and to be: 
  

					
	 x audited
	  	reviewed	  	compiled

  
 by BDO Seidman LLP or another
nationally recognized firm of certified public accountants or by a firm of independent certified public accountants selected by the audit committee of the board of directors of Guarantor; all such statements shall be certified by Guarantor’s
chief financial officer or partner to be correct, not misleading and in accordance with Guarantor’s records and to present fairly the results of Guarantor’s operations and cash flows and if annual its financial position at year end in
conformity with generally accepted accounting principles. If no box is checked, Guarantor shall deliver financial statements and information in the form and at the times satisfactory to the Bank. Guarantor represents that its assets are not subject
to any liens, encumbrances or contingent liabilities except as fully disclosed to the Bank in such statements. Guarantor authorizes the Bank from time to time to obtain, verify and review all financial data deemed appropriate by the Bank in
connection with this Guaranty and the Obligations, including without limitation credit reports from agencies. Guarantor understands this Guaranty and has satisfied itself as to its meaning and consequences and acknowledges that it has made its own
arrangements for keeping informed of changes or potential changes affecting the Borrower including the Borrower’s financial condition. 
  
 7. Security; Right of Setoff. As further security for payment of the Obligations, Expenses and any other obligations of Guarantor to the Bank,
Guarantor hereby grants to the Bank a security interest in all money, securities and other property of Guarantor in the actual or constructive possession or control of the Bank or its affiliates including without limitation all deposits and other
accounts owing at any time by the Bank or any of its affiliates in any capacity to Guarantor in any capacity (collectively, “Property”). The Bank shall have the right to set off Guarantor’s Property against any of Guarantor’s
obligations to the Bank. Such set-off shall be deemed to have been exercised immediately at the time the Bank or such affiliate elect to do so. The Bank shall also have all of the rights and remedies of a secured party under the Uniform Commercial
Code, as the same may be in effect in the Commonwealth of Pennsylvania, as amended from time to time, in addition to those under this Guaranty and other applicable law and agreements. 
  
 8. No Transfer of Assets. Guarantor shall not transfer, reinvest or otherwise dispose of its assets in a manner or to
an extent that would or might impair Guarantor’s ability to perform its obligations under this Guaranty. 
  

					
	 	 	2	 	Manufacturers and Traders Trust Company, 2002

 9. Nonwaiver by the Bank; Miscellaneous. This Guaranty is intended by Guarantor to be the final,
complete and exclusive expression of the agreement between Guarantor and the Bank. This Guaranty may be assigned by the Bank, shall inure to the benefit of the Bank and its successors and assigns, and shall be binding upon Guarantor and his or her
legal representative, successors and assigns and any participation may be granted by the Bank herein in connection with the assignment or granting of a participation by the Bank in the Obligations or any part thereof. All rights and remedies of the
Bank are cumulative, and no such right or remedy shall be exclusive of any other right or remedy. This Guaranty does not supersede any other guaranty or security granted to the Bank by Guarantor or others (except as to Guarantor’s Waiver of
Subrogation rights above). No single, partial or delayed exercise by the Bank of any right or remedy shall preclude exercise by the Bank at any time at its sole option of the same or any other right or remedy of the Bank without notice. Guarantor
expressly disclaims any reliance on any course of dealing or usage of trade or oral representation of the Bank including, without limitation, representations to make loans to Borrower or enter into any other agreement with Borrower or Guarantor. No
course of dealing or other conduct, no oral agreement or representation made by the Bank or usage of trade shall operate as a waiver of any right or remedy of the Bank. No waiver or amendment of any right or remedy of the Bank or release by the Bank
shall be effective unless made specifically in writing by the Bank. Each provision of this Guaranty shall be interpreted as consistent with existing law and shall be deemed amended to the extent necessary to comply with any conflicting law. If any
provision nevertheless is held invalid, the other provisions shall remain in effect. Guarantor agrees that in any legal proceeding, a copy of this Guaranty kept in the Bank’s course of business may be admitted into evidence as an original.
Captions are solely for convenience and not part of the substance of this Guaranty. If this Guaranty is limited pursuant to Paragraph 2 hereof, until the Obligations are indefeasibly paid in full, the Guaranteed Amount shall not be reduced in any
manner whatsoever by any amounts which the Bank may realize before or after maturity of the Obligations (by acceleration, demand or otherwise), as a result of payments made by or on behalf of Borrower or by or on behalf of any other person or entity
other than Guarantor primarily or secondarily liable for the Obligations or any part thereof, or otherwise credited to Borrower or such person or entity, or as a result of the exercise of the Bank’s rights with respect to any collateral for the
Obligations or any part thereof. Payments made to the Bank by Guarantor (other than, directly or indirectly, from collateral or other persons or entities liable for any portion of the Obligations) after maturity of the Obligations, by acceleration
or otherwise, shall reduce the Guaranteed Amount. 
  
 10. Joint
and Several. If there is more than one Guarantor, each Guarantor jointly and severally guarantees the payment and performance in full of all obligations under this Guaranty and the term “Guarantor” means each as well as all of them.
Guarantor also agrees that the Bank need not seek payment from any source other than the undersigned Guarantor. This Guaranty is a primary obligation. Guarantor’s obligations hereunder are separate and independent of Borrower’s, and a
separate action may be brought against Guarantor whether or not action is brought or joined against or with Borrower or any other party. 
  
 11. Authorization. Guarantor certifies that it is an entity in the form described above duly organized and in good standing under the laws of the
State of its organization and duly authorized to do business in each State material to the conduct of its business. Guarantor has determined that the execution of this Guaranty will be in its best interests, to its direct benefit, incidental to its
powers, and in furtherance of its duly acknowledged purposes and objectives. Execution of this Guaranty by the persons signing below has been authorized by all necessary corporate action, including directors’ consent or (as appropriate) is
authorized by its partnership agreement or governing instrument. Guarantor’s chief executive office is located at the above address. 
  
 12. Notices. Any demand or notice hereunder or under any applicable law pertaining hereto shall be in writing and duly given if delivered to
Guarantor (at its address on the Bank’s records) or to the Bank (at the address on page one and separately to the Bank officer responsible for Borrower’s relationship with the Bank). Such notice or demand shall be deemed sufficiently given
for all purposes when delivered (i) by personal delivery and shall be deemed effective when delivered, or (ii) by mail or courier and shall be deemed effective three (3) business days after deposit in an official depository maintained
by the United States Post Office for the collection of mail or one (1) business day after delivery to a nationally recognized overnight courier service (e.g., Federal Express). Notice by e-mail is not valid notice under this or any other
agreement between Guarantor and the Bank. 
  
 13. Governing Law
and Jurisdiction. This Guaranty has been delivered to and accepted by the Bank and will be deemed to be made in the Commonwealth of Pennsylvania. Except as otherwise provided under federal law, this Guaranty will be interpreted in accordance
with the laws of the Commonwealth of Pennsylvania excluding its conflict of laws rules. GUARANTOR HEREBY IRREVOCABLY CONSENTS TO THE EXCLUSIVE JURISDICTION OF ANY STATE OR FEDERAL COURT IN THE COMMONWEALTH OF PENNSYLVANIA IN A COUNTY OR JUDICIAL
DISTRICT WHERE THE BANK MAINTAINS A BRANCH AND CONSENTS THAT THE BANK MAY EFFECT ANY SERVICE OF PROCESS IN THE MANNER AND AT GUARANTOR’S ADDRESS SET FORTH ABOVE FOR PROVIDING NOTICE OR DEMAND; PROVIDED THAT NOTHING CONTAINED IN THIS GUARANTY
WILL PREVENT THE BANK FROM BRINGING ANY ACTION, ENFORCING ANY AWARD OR JUDGMENT OR EXERCISING ANY RIGHTS AGAINST GUARANTOR INDIVIDUALLY, AGAINST ANY SECURITY OR AGAINST ANY PROPERTY OF GUARANTOR WITHIN ANY OTHER COUNTY, STATE OR OTHER FOREIGN OR
DOMESTIC JURISDICTION. Guarantor acknowledges and agrees that the venue provided above is the most convenient forum for both the Bank and Guarantor. Guarantor waives any objection to venue and any objection based on a more convenient forum in
any action instituted under this Guaranty. 
  
 14. Waiver of
Jury Trial. GUARANTOR AND THE BANK HEREBY KNOWINGLY, VOLUNTARILY, AND INTENTIONALLY WAIVE ANY RIGHT TO TRIAL BY JURY GUARANTOR AND THE BANK MAY HAVE IN ANY ACTION OR PROCEEDING, IN LAW OR IN EQUITY, IN CONNECTION WITH THIS GUARANTY OR THE
TRANSACTIONS RELATED HERETO. GUARANTOR REPRESENTS AND WARRANTS THAT NO REPRESENTATIVE OR AGENT OF THE BANK HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT THE BANK WILL NOT, IN THE EVENT OF LITIGATION, SEEK TO ENFORCE THIS JURY TRIAL WAIVER. GUARANTOR
ACKNOWLEDGES THAT THE BANK HAS BEEN INDUCED TO ENTER INTO THIS GUARANTY BY, AMONG OTHER THINGS, THE PROVISIONS OF THIS SECTION. 
  
 15. Power to Confess Judgment. FOLLOWING THE OCCURRENCE AND DURING THE CONTINUANCE OF AN EVENT OF DEFAULT, GUARANTOR HEREBY EMPOWERS ANY
ATTORNEY OF ANY COURT OF RECORD TO APPEAR FOR GUARANTOR AND, WITH OR WITHOUT COMPLAINT FILED, CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, AGAINST GUARANTOR IN FAVOR OF THE BANK OR ANY HOLDER HEREOF FOR ALL AMOUNTS DUE HEREUNDER, TOGETHER WITH COSTS
OF SUIT AND A REASONABLE ATTORNEY’S FEE, AND FOR DOING SO THIS GUARANTY OR A COPY VERIFIED BY AFFIDAVIT SHALL BE A SUFFICIENT WARRANT. GUARANTOR HEREBY FOREVER WAIVES AND RELEASES ALL PROCEDURAL ERRORS IN SAID PROCEEDINGS AND ALL RELIEF FROM
ANY AND ALL APPRAISEMENT, STAY OR EXEMPTION LAWS OF ANY STATE NOW IN FORCE OR HEREAFTER ENACTED. INTEREST ON ANY SUCH JUDGMENT SHALL ACCRUE AT THE DEFAULT RATE SET FORTH IN ANY OF THE DOCUMENTS EVIDENCING THE OBLIGATIONS OF BORROWER. NO SINGLE
EXERCISE OF THE FOREGOING 

  

					
	 	 	3	 	Manufacturers and Traders Trust Company, 2002

 
POWER TO CONFESS JUDGMENT, OR A SERIES OF JUDGMENTS, SHALL BE DEEMED TO EXHAUST THE POWER, WHETHER OR NOT ANY SUCH EXERCISE SHALL BE HELD BY ANY COURT TO
BE INVALID, VOIDABLE, OR VOID, BUT THE POWER SHALL CONTINUE UNDIMINISHED AND IT MAY BE EXERCISED FROM TIME TO TIME AS OFTEN AS THE BANK SHALL ELECT UNTIL SUCH TIME AS THE BANK SHALL HAVE RECEIVED PAYMENT IN FULL OF ALL AMOUNTS DUE HEREUNDER.

  
 16. Guarantor acknowledges that it has read and
understands all the provisions of this Guaranty, including the Confession of Judgment, Governing Law, Jurisdiction and Waiver of Jury Trial, and has been advised by counsel as necessary or appropriate. 
  

									
	 	 	 	 	 GUARANTOR:

	 ATTEST:
	 	 	 	 dELiA*s, INC.

					
	 By:
	 	 	 	 	 	 By:
	 	 
					
	 Title:
	 	 	 	 	 	 Title:
	 	 
					
	 TIN #
	 	 	 	 	 	 	 	 
					
	 Date:
	 	 	 	 , 2005
	 	 	 	 

  
 ACKNOWLEDGMENT

  

			
	STATE OF NEW YORK	  	)
	 	  	: SS.
	COUNTY OF ______________________________	  	)

  
 On the
         day of December, in the year 2005, before me, the undersigned, a Notary Public in and for said State of New York, personally appeared
                                       
                                        
 , personally known to me or proved to me on the basis of satisfactory evidence to be the individual(s) whose name(s) is (are) subscribed to the within instrument and acknowledged to me that he/she/they executed the same in his/her/their
capacity(ies), and that by his/her/their signature(s) on the instrument, the individual(s), or the person upon behalf of which the individual(s) acted, executed the instrument. 
  

	
	
	 
	Notary Public

  

  
 FOR BANK USE ONLY 
  

					
	 	 	4	 	Manufacturers and Traders Trust Company, 2002

			
	 Authorization Confirmed:
	 	 
	 	 	Signature

  

					
	 	 	5	 	Manufacturers and Traders Trust Company, 2002Stock Option Agreement - Robert E. Bernard

 Exhibit 10.28 
  
 Option No.              
  
 dELiA*s, INC. 
 STOCK OPTION AGREEMENT 
  

											
	 NAME

	  	TYPE OF
OPTION

	  	GRANT DATE

	  	 EXPIRATION
 DATE

	  	 NUMBER OF
 SHARES

	  	 OPTION PRICE
 PER SHARE

	 Robert E. Bernard
	  	Incentive Stock
Option	  	October 28, 2005	  	October 28, 2015	  	1,300,000	  	(1)

  

	(1)	The option price per share shall be equal to the quotient of (x) $175,000,000, divided by (y) the number of shares of dELiA*s, Inc. (“dELiA*s”) common stock, par
value $0.001 per share (“Common Stock”), that are issued in the spinoff of shares of Common Stock to be effected by Alloy, Inc. (the “Spinoff”) as described in that certain prospectus filed as part of dELiA*s’ registration
statement on Form S-1 filed with the Securities and Exchange Commission on September 7, 2005, File No. 333-128153, as adjusted to account for the dilutive impact of options and warrants that will be outstanding immediately following the
Spinoff pursuant to the treasury stock method. 

  
 The person named above (“Optionee”) has been granted a nonqualified stock option (“NSO”) or an incentive stock option (“ISO), as specified above (the “Option”), to purchase shares of common stock of
dELiA*s on the terms and subject to the conditions described in this Stock Option Agreement (this “Agreement”). This option is granted pursuant to the dELiA*s, Inc. 2005 Stock Incentive Plan (the “Plan”). Terms with initial
capital letters used herein without definition shall have the meanings given them in the Plan. dELiA*s and Optionee agree as follows: 
  

	1.	Number of Shares Optional; Option Price. 

  
 dELiA*s grants to Optionee the right and option to purchase, in the aggregate, the number of shares of Common Stock, at the option price per share, in
each case as shown above. If this Option is designated as an NSO, the Option granted is not intended to be treated, and will not be treated, as an incentive stock option within the meaning of Section 422 of the Internal Revenue Code of 1986, as
amended (the “Code”). If this Option is designated as an ISO, the Option granted is intended to be treated, and will be treated, as an incentive stock option within the meaning of Section 422 of the Code. If this Option is designated
as an ISO, the Exercise Price is agreed to be at least equal to the Fair Market Value per share of Common Stock on the Date of Grant or, if the Optionee is a Ten Percent Holder, at least 110% of the Fair Market Value per share of Common Stock. The
granting of the Option shall impose no obligation on Optionee to exercise such Option. 
  

	2.	Limitation on Exercise of Option. 

  
 (a) Except as provided in the Plan or in this Agreement, and unless the Administrator establishes otherwise, Optionee is entitled to purchase, in whole or
in part, 162,500 shares of Common Stock on and after each of the following dates during the term hereof and before a date or event of termination as described in this Option: 
  

	 	(i)	the date that is six (6) months after the effective date of Spinoff; 

  

	 	(ii)	the date that is twelve (12) months after the effective date of Spinoff; 

  

	 	(iii)	the date that is eighteen (18) months after; the effective date of Spinoff 

  

	 	(iv)	the date that is twenty four (24) months after the effective date of Spinoff; 

  

	 	(v)	the date that is thirty (30) months after the effective date of Spinoff; 

  

	 	(vi)	the date that is thirty six (36) months after the effective date of Spinoff; 

  

	 	(vii)	the date that is forty two (42) months after the effective date of Spinoff; and 

  

	 	(viii)	the date that is forty eight (48) months after the effective date of Spinoff; 

 provided, however, that if Optionee’s employment with dELiA*s is terminated by dELiA*s without Cause
on or before the second anniversary of the effective date of the Spinoff, then immediately upon such termination, Optionee shall be entitled to purchase all 1,300,000 shares of Common Stock subject to this Option. 
  
 (b) If this Option is designated as an ISO above, then Optionee’s right
to exercise this option shall be deferred to the extent (and only to the extent) that this option otherwise would not be treated as an ISO by reason of the $100,000 annual limitation under Section 422(d) of the Code. 
  
 (c) This Option shall terminate and be of no further force and effect if the
effective date of the Spinoff shall not have occurred on or prior to March 1, 2006. 
  

	3.	Rights in the Event of Death. 

  
 If Optionee’s employment with, or provision of services to, dELiA*s is terminated due to death, this Option shall be exercisable by Optionee’s
Representatives until the earlier of: 
  

	 	(i)	the date on which the Option expires (the “Expiration Date”), and 

  

	 	(ii)	twelve (12) months from the date of Optionee’s death, 

  
 in any case to the extent to which Optionee would otherwise have been entitled to exercise this Option as provided in Section 2 as of the date of Optionee’s
death. To the extent Optionee is not entitled to exercise any portion of this Option as of the date of Optionee’s death, such unexercised portion of this Option shall immediately lapse, effective as of the date of Optionee’s death.

  

	4.	Rights in the Event of Disability. 

  
 If Optionee’s employment with, or provision of services to, dELiA*s is terminated due to Disability, this Option shall be exercisable by
Optionee’s Representative until the earlier of: 
  

	 	(i)	the Expiration Date; and 

  

	 	(ii)	three (3) months from the date of Optionee’s Disability, 

  
 in any case to the extent to which Optionee would otherwise have been entitled to exercise this Option as provided in Section 2 as of the date of Optionee’s
Disability; provided, however, that if the Optionee dies after the date of Optionee’s Disability but before the earlier of the Expiration Date and the date that is three (3) months after the date of Optionee’s
Disability, an unexercised Stock Option held by such Optionee shall, notwithstanding the expiration of such period, continue to be exercisable to the extent to which it was exercisable at the time of death for a period of twelve (12) months
from the date of such death or until the Expiration Date, whichever period is shorter. To the extent Optionee is not entitled to exercise any portion of this Option as of the date of Optionee’s Disability, such unexercised portion of this
Option shall immediately lapse, effective as of the date of Optionee’s Disability. 
  

	5.	Termination by Reason of Retirement. 

  
 If Optionee’s employment with, or provision of services to, dELiA*s is terminated by reason of Retirement, this Option shall be exercisable by
Optionee until the earlier of: 
  

	 	(i)	the Expiration Date; and 

  

	 	(ii)	three (3) months from the date of Optionee’s Retirement, 

  
 in any case to the extent to which Optionee would otherwise have been entitled to exercise this Option as provided in Section 2 as of the date of Optionee’s
Retirement; provided, however, that if the Optionee dies after the date of Optionee’s Retirement but before the earlier of the Expiration Date and the date that is three (3) months after the date of Optionee’s
Retirement, an unexercised Stock Option held by such Optionee shall, notwithstanding the expiration of such period, continue to be exercisable to the extent to which it was exercisable at the time of death for a period of twelve (12) months
from the date of such death or until the Expiration Date, whichever period is shorter. 

 
To the extent Optionee is not entitled to exercise any portion of this Option as of the date of Optionee’s Retirement, such unexercised portion of this
Option shall immediately lapse, effective as of the date of Optionee’s Retirement 
  

	6.	Other Termination. 

  
 If Optionee’s employment with, or provision of services to, dELiA*s is terminated for any reason other than death, Disability or Retirement, this
Option shall be exercisable by Optionee until the earlier of: 
  

	 	(i)	the Expiration Date; and 

  

	 	(ii)	thirty (30) days from the date of Optionee’s termination, 

  
 in any case to the extent to which Optionee would otherwise have been entitled to exercise this Option as provided in Section 2 as of the date of Optionee’s
Retirement; provided, however, that if such termination of employment or provision of services is involuntary on the part of Optionee and without Cause, this Option may be exercised in full until the earlier of the Expiration Date and
the date that is ninety (90) days from the date of such termination of employment or provision of services; and provided further that, if the Optionee dies after the date of such termination but before the earlier of the
Expiration Date and the date that is thirty (30) days after the date of termination (or ninety (90) days after the date of such termination in the case of involuntary termination without Cause), an unexercised Stock Option held by such
Optionee shall, notwithstanding the expiration of such period, continue to be exercisable to the extent to which it was exercisable at the time of death for a period of twelve (12) months from the date of such death or until the Expiration
Date, whichever period is shorter. To the extent Optionee is not entitled to exercise any portion of this Option as of the date of Optionee’s termination, such unexercised portion of this Option shall immediately lapse, effective as of the date
of Optionee’s termination. 
  

	7.	Method of Exercising Option. 

  
 Optionee may exercise the Option in accordance with the terms hereof and in the Plan by providing to dELiA*s (i) a completed and executed Exercise
Agreement, attached hereto as Exhibit A; (ii) payment in full of the exercise price for the Common Stock then being acquired in accordance with the Plan; and (iii) execution of a Restricted Stock Agreement in a form acceptable to
the Company. Optionee shall not acquire any rights or privileges as a stockholder of dELiA*s for any Common Stock issuable upon the exercise of this Option until such Common Stock has been duly issued by dELiA*s. dELiA*s shall have the right to
delay the issue or delivery of any Common Stock to be delivered hereunder until (i) the completion of such registration or qualification of such shares under federal or state law, ruling or regulation as dELiA*s deems to be necessary or
advisable; and (ii) receipt from Optionee of such documents and information as dELiA*s deems necessary or appropriate in connection with such registration or qualification or the issuance of Common Stock hereunder. In the event of
Optionee’s death, this Option may be exercised by the Optionee’s Representative. 
  

	8.	Notice Concerning ISO Treatment. 

  
 If this option is designated as an ISO, it ceases to qualify for favorable tax treatment as an ISO to the extent it is exercised (i) more than three
(3) months after the date the Optionee’s employment with, or provision of services to, dELiA*s is terminated for any reason other than death or Disability, (ii) more than six (6) months after the date the Optionee’s
employment with, or provision of services to, dELiA*’s is terminated by reason of Disability or (iii) after the Optionee has been on a leave of absence for more than 90 days, unless the Optionee’s reemployment rights are guaranteed by
statute or by contract. 
  

	9.	Restrictions on Transfer. 

  
 (a) General Restrictions. This Option, and the rights and privileges conferred by it, is personal to Optionee and may not be transferred, assigned,
pledged or hypothecated in any way (whether by operation of law or otherwise), and, during Optionee’s lifetime, shall be exercisable only by Optionee. Optionee may transfer this Option, and the rights and privileges conferred by it, upon
Optionee’s death, either by will or under the laws of descent and distribution, or by beneficiary designation made in such form and subject to such limitation as may from time to time be acceptable to the Administrator and delivered to and
accepted by the Administrator. All such persons shall be subject to all of the terms and conditions of this Agreement to the same extent as would Optionee if 

 
still alive. This Option, and the rights and privileges conferred by it, may not be subjected to execution, attachment or similar process. 
  
 (b) Securities Law Restrictions. Regardless of whether the offering
and sale of Shares under the Plan have been registered under the Securities Act or have been registered or qualified under the securities laws of any state, the Company at its discretion may impose restrictions upon the sale, pledge or other
transfer of such Shares (including the placement of appropriate legends on stock certificates or the imposition of stop-transfer instructions) if, in the judgment of the Company, such restrictions are necessary or desirable in order to achieve
compliance with the Securities Act, the securities laws of any state or any other law. 
  
 (c) Investment Intent at Exercise. If the sale of shares of Common Stock under the Plan is not registered under the Securities Act but an exemption is available which requires an investment representation or
other representation, the Optionee shall represent and agree at the time of exercise that the Shares being acquired upon exercising this option are being acquired for investment, and not with a view to the sale or distribution thereof, and shall
make such other representations as are deemed necessary or appropriate by the Company and its counsel. 
  
 (d) Legends. All certificates evidencing shares of Common Stock purchased under this Agreement shall bear the following legend: 
  
 “THE SHARES REPRESENTED HEREBY MAY NOT BE SOLD, ASSIGNED, TRANSFERRED,
ENCUMBERED OR IN ANY MANNER DISPOSED OF, EXCEPT IN COMPLIANCE WITH THE TERMS OF A WRITTEN AGREEMENT BETWEEN THE COMPANY AND THE REGISTERED HOLDER OF THE SHARES (OR THE PREDECESSOR IN INTEREST TO THE SHARES). SUCH AGREEMENT GRANTS TO THE COMPANY
CERTAIN RIGHTS OF FIRST REFUSAL UPON AN ATTEMPTED TRANSFER OF THE SHARES AND CERTAIN REPURCHASE RIGHTS UPON TERMINATION OF SERVICE WITH THE COMPANY. THE SECRETARY OF THE COMPANY WILL UPON WRITTEN REQUEST FURNISH A COPY OF SUCH AGREEMENT TO THE
HOLDER HEREOF WITHOUT CHARGE.” 
  
 All certificates
evidencing Shares purchased under this Agreement in an unregistered transaction shall bear the following legend (and such other restrictive legends as are required or deemed advisable under the provisions of any applicable law): 
  
 “THE SHARES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
SECURITIES ACT OF 1933, AS AMENDED, AND MAY NOT BE SOLD, PLEDGED, OR OTHERWISE TRANSFERRED WITHOUT AN EFFECTIVE REGISTRATION THEREOF UNDER SUCH ACT OR AN OPINION OF COUNSEL, SATISFACTORY TO THE COMPANY AND ITS COUNSEL, THAT SUCH REGISTRATION IS NOT
REQUIRED.” 
  
 (e) Removal of Legends. If, in the
opinion of the Company and its counsel, any legend placed on a stock certificate representing Shares sold under this Agreement is no longer required, the holder of such certificate shall be entitled to exchange such certificate for a certificate
representing the same number of Shares but without such legend. 
  
 (f) Administration. Any determination by the Company and its counsel in connection with any of the matters set forth in this Section 9 shall be conclusive and binding on the Optionee and all other persons. 
  

	10.	Notices. 

  
 Any notice to be given to dELiA*s under the terms of this Agreement shall be addressed to the attention of dELiA*s’ Chief Executive Officer at
dELiA*s, Inc., 435 Hudson Street, New York, New York 10014, and any notice to be given to Optionee may be addressed to him at his address as it appears in the payroll records of dELiA*s, or at such other addresses as either party may designate in
writing to the other. 

	11.	Provisions of the Plan Control. 

  
 This Option is subject to, and qualified in its entirety by reference to, the terms and conditions of the Plan under which it is granted, a copy of which
has been delivered to Optionee and which may be examined by Optionee at the office of the Chief Financial Officer, and the provisions of the Plan shall be incorporated in and be a part of this Option. The Plan empowers the Administrator to make
interpretations, rules and regulations under it. Determinations by the Administrator with respect to the Plan shall be final, binding and conclusive upon Optionee. Capitalized terms not defined herein shall have the meanings ascribed to them in the
Plan. 
  

	12.	Taxes. 

  
 dELiA*s may require payment of or withhold any tax which it believes is required to be the obligation of Optionee as a result of the grant or exercise of
this Option, and dELiA*s may defer making delivery of Common Stock or hereunder until arrangements satisfactory to dELiA*s have been made for such tax obligations. 
  
 dELiA*s has caused this Agreement to be executed and Optionee has executed the same as evidence of Optionee’s
acceptance hereof and upon the terms and conditions herein set forth as of the Grant Date shown above. 
  

									
	dELiA*s, INC.	 	 	 	OPTIONEE
				
	By:	 	 /s/ Walter Killough
	 	 	 	 /s/ Robert E. Bernard

	 Name:
	 	 Walter Killough
	 	 	 	 Robert E. Bernard

	 Its:
	 	 Chief Operating Officer
	 	 	 	 	 	 

 EXHIBIT A 
  

dELiA*s, INC. 
  
 EXERCISE AGREEMENT 
 FOR EXERCISING
STOCK OPTIONS GRANTED 
  
 UNDER THE 
  
 2005 STOCK INCENTIVE PLAN 

 INSTRUCTIONS 
  
 FOR EXERCISING STOCK OPTIONS GRANTED 
 UNDER THE 
 dELIA*s, INC. 2005 STOCK INCENTIVE PLAN 
  
 General: 
  
 In order to exercise your Stock Option granted under the dELiA*s, Inc. 2005
Stock Incentive Plan (“Plan”) pursuant to your Stock Option Agreement, please complete and sign the attached Exercise Agreement (“Exercise Agreement”). On the Exercise Agreement, you should indicate the manner in which you will
pay (1) the exercise price of the Stock Option (“Option Price”) and (2) any required withholding taxes. 
  
 If you have any questions regarding this Exercise Agreement, please contact Edward Taffet. 
  
 Endorsement: 
  

	1.	Cash or Check: If you are paying the Option Price or arranging for payment of tax withholding by certified check or cashier’s check, checks should be made payable to dELiA*s,
Inc. 

  

	2.	Stock Certificate: If you are paying the Option Price or arranging for payment of tax withholding by delivering a stock certificate, the stock certificate should be properly
endorsed as follows. 

  

	 	a.	The record holder of the stock certificate being surrendered should sign and date the stock certificate on the reverse side. The signature should correspond exactly (including
misspellings) with the name shown on the front side of the stock certificate. 

  

	 	•	 	If the stock certificate being surrendered is held of record in joint tenancy, both joint tenants must sign. 

  

	 	•	 	If the endorsement is by a corporation or by a person acting in a fiduciary or other representative capacity, proper evidence of the authority of the person making the endorsement
should be included with the stock certificate being surrendered. 

  

	 	b.	If the stock certificate being surrendered represents a larger number of shares of Stock than are being surrendered as the Option Price (i.e., having a Fair Market Value on the date
the Stock Option is exercised in excess of the Option Price), indicate on the reverse side of the stock certificate the number of shares of Stock being transferred to the Company pursuant to the exercise of the Stock Option. A new certificate
representing any excess shares of Stock will be issued in the name appearing on the surrendered stock certificate and delivered to you by the transfer agent for the Company. 

  

	 	c.	The method of delivery of a stock certificate representing Stock is at the option and risk of the holder of such certificates. If a stock certificate is sent by mail, insured
registered mail is recommended. 

  
 Defined Terms: 
  
 Each term defined in the Plan
shall, when capitalized herein, have the same meaning for the purpose of this Exercise Agreement as given to it in the Plan. The Plan and the Stock Option Agreement shall control if there is any conflict between the Plan (or the Stock Option
Agreement) and this Exercise Agreement, and as to all matters not provided for in this Exercise Agreement. 

 dELiA*s, INC. 
 EXERCISE AGREEMENT 
  
 This Exercise Agreement is made by and between dELiA*s, Inc. (“Company”) and Robert E. Bernard (“Participant”). The Participant entered into an Incentive Stock Option Agreement, dated October 28, 2005 (the
“Stock Option Agreement”), in accordance with the dELiA*s, Inc. 2005 Stock Incentive Plan (“Plan”). 
  
 The Participant desires to exercise the Stock Option on the following terms and conditions: 
  
 1. General. Each term defined in the Plan shall, when capitalized herein, have the same meaning for the purpose of
this Exercise Agreement as given to it in the Plan. The Plan and the Stock Option Agreement shall control if there is any conflict between the Plan (or the Stock Option Agreement) and this Exercise Agreement, and as to all matters not provided in
this Exercise Agreement. 
  
 2. Exercise. Subject to the
terms of this Exercise Agreement, the Participant hereby irrevocably elects to exercise, as of the date accepted hereunder by the Administrator, a Stock Option with respect to
             shares of Stock at the Option Price of $             per share of Stock (as described in the Stock
Option Agreement). The exercise pursuant hereto shall reduce the number of shares subject to the Stock Option Agreement by the number of shares exercised hereunder. 
  
 3. Consideration. The shares of Stock to be received pursuant to this Exercise Agreement are being transferred in
consideration for: [Please check the applicable Stock Option payment provision.] 
  

	 	a.  ̈	cash in the amount of $             (the “Option Price”). Enclosed herewith is a  ̈ certified check or  ̈ cashier’s check for this
amount. 

  

	 	b.  ̈	delivery of valid and enforceable stock certificate(s) representing shares of Stock and endorsed for transfer to the Company, in accordance with the Instructions accompanying this
Exercise Agreement. 

  

	 	c.  ̈	any combination of (a) or (b) having an aggregate Fair Market Value equal to the aggregate Option Price. 

  
 Describe any combination: _______________________________________________________________________________ 
 ____________________________________________________________________________________________________ 
 ____________________________________________________________________________________________________ 
  
 4. Withholding. Because the Company is obligated to withhold an amount presently or an estimated amount in the future on account of any tax
(including employment taxes) imposed as a result of the exercise of this Stock Option, the Participant does hereby: [Please check the applicable tax withholding provision] 
  

	 	a.  ̈	request that Company withhold and not transfer or issue to the Participant by virtue of this exercise, that number of shares of Stock having an aggregate Fair Market Value equal to
the Company’s federal, state or local tax withholding obligations with respect to the exercise of the Stock Option. 

  

	 	b.  ̈	deliver a certified check or cashier’s check to the Company equal to the Company’s federal, state or local tax withholding obligations with respect to the exercise of the
Stock Option, as reported to the Participant by the Company. 

  
 5. Resolution of Dispute. Any dispute or disagreement which shall arise under, as a result of, or in any way relate to the interpretation or construction of this Exercise Agreement shall be determined by the
Administrator, or in the event the Plan shall at the time be administered by the Board of Directors of the Company 

 
(or any successor corporation), then by such Board of Directors. Any such determination made hereunder shall be final, binding and conclusive for all
purposes. 
  
 6. Execution of Agreements. The Participant
delivers herewith any agreement, including without limitation, any restricted stock or stockholders agreements, which the Administrator has required the Participant to execute and deliver as a condition hereto. 
  
 7. Plan. The Participant represents and warrants that he or she
has received a copy of the Plan, as amended through the date hereof. 
  
 8. Successors and Assigns. This Exercise Agreement shall inure to the benefit of and be binding upon each successor and assignee of the Participant and the Company. 
  
 9. Choice of Laws. This Exercise Agreement shall be governed by and construed in accordance with the laws of the
State of Delaware without reference to its conflicts of laws provisions. 
  
 10. Entire Exercise Agreement. This Exercise Agreement, together with the Plan, the Stock Option Agreement and any agreement required pursuant to Section 6 hereof, constitute the entire obligation of the
parties hereto with respect to the subject matter hereof and shall supersede any prior expressions of intent or understanding with respect to this exercise of Participant’s Stock Option. 
  
 11. Prior Affirmation. The Participant represents, warrants and
affirms all matters to which he or she represented, warranted or affirmed in the Stock Option Agreement, and nothing in this Exercise Agreement shall derogate the Participant’s representations, warranties or affirmations in the Stock Option
Agreement. 
  

									
	 PARTICIPANT
	 	 	 	dELiA*s, INC.
					
	 Name:
	 	 Robert E. Bernard
	 	 	 	 By:   
	 	 
					
	 	 	 	 	 	 	 Title:
	 	 
					
	 Date:
	 	 	 	 	 	 Date:

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