Exhibit 10.5

 

DATABASE TRANSFER AGREEMENT

 

THIS DATABASE TRANSFER AGREEMENT (this “Agreement”) is made and entered into
December 19, 2005 (the “Effective Date”) by and between Alloy Merchandising,
LLC, a Delaware limited liability company (“Transferor”), and 360 Youth, LLC, a
Delaware limited liability company (“Transferee”). Capitalized terms not defined
herein shall have the meaning ascribed to such terms in the Distribution
Agreement by and between Alloy, Inc. (“Alloy”) and dELiA*s, Inc. (“dELiA*s”)
dated as of December 12, 2005 (the “Distribution Agreement”)

 

WHEREAS, Transferor has collected, assembled and maintains a database which
contains information on individual customers or prospective customers and may
include navigational information, transactional information, including billing
and credit information, and internet/email addresses, postal addresses, and/or
other identifying information (the “Customer Data”);

 

WHEREAS, the Parties hereto have entered into that the Distribution Agreement to
effect the separation of the merchandising and retail business from the other
businesses conducted by Alloy and its Subsidiaries and the transfer of
substantially all of the assets and liabilities related to the merchandising
business, including stock and membership interests in certain Subsidiaries, to
dELiA*s followed by the distribution of the stock of dELiA*s to Alloy’s
shareholders;

 

WHEREAS, as a result of the Spinoff, Transferor will be wholly-owned and
controlled by dELiA*s and Transferee will be wholly-owned and controlled by
Alloy;

 

WHEREAS, the Alloy and dELiA*s, in connection with the Spinoff entered into that
certain Media Services Agreement dated as of December     , 2005 (the “Media
Services Agreement”) regarding, among other things, Alloy acting as agent for
dELiA*s and its Subsidiaries for certain advertising purposes and the joint
ownership of certain data;

 

WHEREAS, Transferor and Transferee currently share certain categories of the
Customer Data and in contemplation of the Spinoff desire to jointly own all
categories of the Customer Data except for credit card data (the “Profile
Data”), subject to the limitations herein set forth; and

 

NOW THEREFORE, in consideration of the premises hereof, and the mutual
obligations herein, the parties hereto, intending to be legally bound, hereby
covenant and agree as follows:

 

1. Delivery of Profile Data by Transferor. No later than the Effective Date,
Transferor shall deliver to Transferee complete copies of any and all Profile
Data, in electronic form in a format used by the parties immediately in effect
prior to the Effective Date. Along with such delivery, Transferor agrees to
assign and hereby does assign to the Transferee an undivided and joint right,
title and interest in and to such Profile Data, subject to the terms and
conditions herein contained.

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2. Application of Privacy Policy. The parties agree that the Profile Data is
subject to certain limitations on subsequent use and dissemination (including
Opt-Outs, as described below) in accordance with the privacy policy in effect at
the time such Profile Data was provided. Each party agrees that it will use any
Profile Data solely in accordance with the terms of such privacy policy and each
party shall indemnify the other as set forth in this Agreement for any breach of
the foregoing.

 

3. Error Corrections, Opt-Outs. The parties shall cooperate to correct any
error(s) in the Profile Data that may materially impair the use or dependability
of the Profile Data and/or identify and remove any Customer Data erroneously
included in the Profile Data. Each party further agrees that it will honor any
request received by current or prospective customer to restrict the disclosure
or dissemination of the Customer Data identifying such customer (each an
“Opt-Out”). Each party agrees to transmit to the other party on a daily basis
any Opt-Outs it receives during the previous day in a format used by the parties
in effect immediately before the Effective Date or otherwise mutually agreeable
to both parties. Each party further agrees that that any such Customer Data
shall be so restricted within a reasonable time after receiving the Opt-Out
request and to negotiate in good faith with the other party any changes the
processes and procedures followed by the parties in effect immediately before
the Effective Date.

 

4. Enhancements. Each party shall advise the other party of any enhancements it
makes to the Profile Data (“Enhancements”) and to the extent requested by such
other party, the enhanced data will be shared with the requesting party in a
form and format mutually acceptable to both parties in a commercially reasonable
time frame. Along with such delivery, the sending party agrees to assign and
hereby does assign to the receiving party an undivided and joint right, title
and interest in and to such Enhancements, subject to the terms and conditions of
this Agreement. To the extent that such Enhancements are shared between the
parties, they shall be merged into and be considered part of the Profile Data.

 

5. Restrictions.

 

5.1 Restrictions upon Transferor. Transferor shall, and shall cause its
Affiliates to, abide by the restrictions set forth below regarding the Profile
Data:

 

(a) each shall be entitled to use any Profile Data in connection with the
Company Business (as defined in the Media Services Agreement), provided that to
the extent such Profile Data consists of Buyers and Requestors (as such terms
are defined in the Media Services Agreement), each shall only use and transfer
the Profile Data in a manner consistent with how it may use and transfer the
Company Data as set forth in the Media Services Agreement and to the extent such
Profile Data consists of Online Registrants (as set forth in the Media Services
Agreement), each shall only use and transfer the Profile Data in a manner
consistent with how it may use and transfer the Alloy Data as set forth in the
Media Services Agreement.

 

5.2. Restrictions upon Transferee. Transferee shall and shall cause it
Affiliates to, abide by the restrictions set forth below regarding the Profile
Data:

 

(a) each shall be entitled to use any Profile Data in connection with the Alloy
Business (as defined in the Media Services Agreement), provided that to the
extent such Profile Data consists of Buyers and Requestors, each shall only use
and transfer the Profile Data in a manner consistent with how it may use and
transfer the

 

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Company Data as set forth in the Media Services Agreement and to the extent such
Profile Data consists of Online Registrants, each shall only use and transfer
the Profile Data in a manner consistent with how it may use and transfer the
Alloy Data as set forth in the Media Services Agreement.

 

5.3. The restrictions set forth in this section 5 shall survive for a period of
2 years from the Effective Date.

 

6. Indemnification. Each party agrees to hold the other party and its Affiliates
and their officers, directors, employees, agents and representatives harmless
from any and all damaged (including reasonable attorney’s fees) incurred or
related to the other party’s breach of any representation, warranty or covenant
hereunder, provided that the Indemnified Party promptly notifies the
Indemnifying Party in writing of the claim, and allows the Indemnifying Party to
participate in the defense or any related settlement negotiations.

 

7. Limitations. The Transferee acknowledges that any collection and compilation
of data, including the Profile Data, entails the likelihood of some human and
machine errors, omissions, delays, interruptions, and losses, including
inadvertent loss of data or damage to media, that may give rise to loss or
damage. Accordingly, the Transferee agrees THAT EXCEPT FOR THE EXPRESS
WARRANTIES SET FORTH HEREIN THE PROFILE DATA IS PROVIDED “AS IS”; TRANSFEROR
MAKES NO REPRESENTATION OR WARRANTY WITH RESPECT TO THE ACCURACY, COMPLETENESS,
OR CURRENTNESS OF THE PROFILE DATA; AND TRANSFEROR SPECIFICALLY DISCLAIMS ANY
ADDITIONAL WARRANTIES, IMPLIED, OR STATUTORY, INCLUDING ANY WARRANTY OF
MERCHANTABILITY OR FITNESS FOR A PARTICULAR PURPOSE. TRANSFEROR SHALL NOT BE
LIABLE ON ACCOUNT OF ANY ERRORS, OMISSIONS, DELAYS, OR LOSSES UNLESS CAUSED BY
TRANSFEROR’S NEGLIGENCE. THE TRANSFEREE AGREES THAT IN NO EVENT WILL TRANSFEROR
BE LIABLE FOR THE RESULTS OF ITS USE OF THE PROFILE DATA, FOR ITS INABILITY OR
FAILURE TO CONDUCT ITS BUSINESS, OR FOR INDIRECT, SPECIAL, OR CONSEQUENTIAL
DAMAGES.

 

8. Governing Law. This Agreement shall be governed by and construed and enforced
in accordance with the laws of the State of New York as it applies to a contract
made and performed in such state, without giving effect to its principles of
conflicts of laws.

 

9. Modifications and Waivers. This Agreement may not be modified except by a
writing signed by authorized representative of all parties. A waiver by a party
of its rights hereunder shall not be binding unless contained in a writing
signed by an authorized representative of the party waiving its rights. The
non-enforcement or waiver of any provision on one (1) occasion shall not
constitute a waiver of such provision on any other occasions unless

 

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expressly so agreed in writing. It is agreed that no use of trade or other
regular practice or method of dealing between the parties hereto shall be used
to modify, interpret, supplement, or alter in any manner the terms of this
Agreement.

 

10. Further Assurances. Each of the parties hereto agrees that from time to time
at the request of any of the other party hereto and without further
consideration, it will execute and deliver such other documents and take such
other action as such other party may reasonably request in order to fully effect
the intent of this Agreement.

 

11. Assignment. This Agreement may not be assigned by a party hereto without the
prior written consent of the other party, which consent shall not be
unreasonably withheld or delayed.

 

IN WITNESS WHEREOF, the parties have executed and sealed this Agreement the day
and year first above written.

 

Transferee       Transferor By:  

 

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      By:  

 

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Authorized Signature       Authorized Signature

 

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Name       Name

 

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Title       Title Alloy, Inc.       dELiA*s, Inc. By:  

 

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      By:  

 

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Authorized Signature       Authorized Signature

 

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Name       Name

 

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Title       Title

 

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