On June 9, 2009, the independent members of the Board of Directors of the Company approved the Company's 2009 Management Incentive Plan (the "Plan"), which establishes a bonus pool for the payment of cash bonus awards, based upon the Company's achievement of specified Earnings Before Interest, Taxes, Depreciation and Amortization ("EBITDA") levels for the fiscal year ending January 30, 2010, to certain employees of the Company, including Robert E. Bernard, Chief Executive Officer (Principal Executive Officer), David J. Dick, Chief Financial Officer and Treasurer (Principal Financial Officer), and the three other named executive officers: Walter Killough, Chief Operating Officer, Michele Donnan Martin, President, dELiA*s Brand, and Marc G. Schuback, Vice President, General Counsel and Secretary. Set forth below are the percentages of base salary each of the individuals named above would receive under the Plan for the fiscal year ending January 30, 2010 in the event that the Company achieves the specified EBITDA levels:

  Name                             Threshold EBITDA   Target EBITDA   Stretch EBITDA
  Robert E. Bernard                      45%               90%             120%
  Walter Killough                        30%               60%              80%
  Michele Donnan Martin                  30%               60%              80%
  David J. Dick                          15%               30%              40%
  Marc G. Schuback                       15%               30%              40%

The threshold, target and stretch EBITDA levels have been set at specified amounts in excess of an EBITDA level based on the Company's annual operating plan for the fiscal year ending January 30, 2010 approved by the Board of Directors of the Company. To the extent that the Company's EBITDA for the fiscal year ending January 30, 2010 exceeds any of the specified levels, the bonus awards payable to each of the employees subject to the Plan, including individuals listed above, would be appropriately adjusted.