Summary of SALARY. COM, INC.

Entry into a Material Definitive Agreement, Financial Statements and Exhibits

Item 1.01. Entry into a Material Definitive Agreement.

On October 8, 2008, we entered into a Third Loan Modification Agreement with Silicon Valley Bank. The agreement modifies our existing credit facility with Silicon Valley Bank to increase the amount of the facility from $5 million to $10 million. The facility is a revolving line of credit under which borrowings bear interest at the bank's prime rate or, if our unrestricted cash falls below $20 million, at the bank's prime rate plus 0.25%. The credit facility is collateralized by substantially all of our assets. In addition, the facility carries an unused revolving line facility fee of 0.375% of the undrawn balance. The credit facility expires on October 8, 2010.

Up to $5 million of the line of credit may be used to secure letters of credit and cash management services, and up to $5 million of the line of credit may be used in connection with foreign exchange forward contracts. The modification agreement contains financial covenants that require us to maintain an unrestricted cash balance at Silicon Valley Bank of at least $20 million. If our unrestricted cash falls below $20 million, then the amount we could borrow under the line of credit would be limited to a borrowing base consisting of a specified percentage of accounts receivable and a specified percentage of future billings. In addition, we would be required to maintain unrestricted cash plus borrowing availability of at least $15 million, and would be required to meet certain minimum quarterly invoicing targets.

There are no outstanding borrowings under this credit facility.

The foregoing description of the Third Loan Modification Agreement is qualified in its entirety by reference to the Third Loan Modification Agreement, a copy of which is attached hereto as Exhibit 10.1 and incorporated herein by reference.