Item 1.01 Entry into a Material Definitive Agreement

For the second quarter ended June 30, 2012, neckermann.de GmbH ("Neckermann") accounted for approximately 10% of the revenue of Demandware, Inc. (the "Company"). The Company has collected in full all revenue from Neckermann recognized in the second quarter. Neckermann owes the Company approximately €200,000 in fees for services delivered in the third quarter of 2012 prior to the commencement of Neckermann's preliminary insolvency proceedings.

The Company has reached an agreement with Neckermann and the preliminary insolvency administrator of Neckermann whereby Neckermann will prepay the Company's base and other subscription fees per the current contract rates on a bi-weekly basis from July 19, 2012 through the balance of the third quarter provided that Neckermann continues to conduct its online retail business. The term of the Company's Master Service Agreement with Neckermann ends on June 30, 2013.

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