On September 1, 2009, the employment of Sunil Thomas with InfoSpace, Inc. ("InfoSpace" or the "Company") was terminated. Mr. Thomas was InfoSpace's Chief Technology Officer from January 1, 2008 until his resignation from that position on May 11, 2009, and Mr. Thomas continued to serve as an employee of InfoSpace through a transition period following his resignation from the position of the Company's Chief Technology Officer until September 1, 2009.

In connection with the termination of Mr. Thomas' employment with the Company, InfoSpace and Mr. Thomas entered into a Separation and Release of Claims Agreement, effective as of September 17, 2009 (the "Separation Agreement"). The Separation Agreement provides, among other things, that, in connection with his termination, Mr. Thomas will receive the benefits to which he was entitled pursuant to Section 6(b) of the Employment Agreement made and entered into effective as of January 1, 2008 by and between InfoSpace and Mr. Thomas, as amended (the "Employment Agreement"), which benefits include:

* A lump sum cash payment of $210,000, which is an amount equal to Mr. Thomas' annual base salary;

* A lump sum cash payment of $105,000, which is an amount equal to 100% of the minimum bonus rate for Mr. Thomas that is set forth in the Employment Agreement;

* The continuation of medical coverage and benefits until not later than August 31, 2010;

* The immediate vesting of 50% of the unvested stock options held by Mr. Thomas as of the date of his termination; and

* The immediate vesting of 50% of the unvested restricted stock units held by Mr. Thomas as of the date of his termination.

The foregoing summary of the Separation Agreement does not purport to be complete and is qualified in its entirety by the full text of the Separation Agreement, which is filed herewith as Exhibit 10.1, and is incorporated herein by reference.

(d) Exhibits.

Exhibit No.    Description
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  10.1        Separation and Release of Claims Agreement, effective as of