Table of Contents 

INFOSPACE, INC. 

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Continued) 

Years Ended December 31, 2001, 2000 and 1999 

opportunity to purchase shares of stock pursuant to options which are not described in Section 422 of the Code (nonqualified stock options). 

The plans also provide for the sale or bonus of stock to eligible individuals in connection with the performance of service for the Company. 

Finally, the plans authorize the grant of stock appreciation rights, either separately or in tandem with stock options, which entitle holders to 

cash compensation measured by appreciation in the value of the stock. The stock incentive plans are administered by the Board of Directors.  

The Company has two stock plans that were used for grants during 2001. Options granted under the Restated 1996 Flexible Stock 

Incentive Program (the 1996 Plan) typically vest over four years, 25% one year from the date of grant and ratably thereafter on a monthly basis, 

and expire ten years from the date of grant. Shares underlying options available under the 1996 Plan increase annually on the first of January by 

an amount equal to the lesser of (A) 8,000,000 shares, (B) three percent of the Company's outstanding shares at the end of the Company's 

preceding fiscal year, and (C) a lesser amount determined by the Board of Directors. The 1996 Plan limits the number of shares of common 

stock that may be granted to any one individual pursuant to stock options in any fiscal year of the Company to 8,000,000 shares, plus an 

additional 8,000,000 shares in connection with his or her initial employment with the Company, which grant shall not count against the limit. If 

an option is surrendered or for any other reason ceases to be exercisable in whole or in part, the shares which were subject to the option but on 

which the option has not been exercised shall continue to be available under the 1996 Plan. As of December 31, 2001, 7,138,863 shares were 

available for grant of options or other equity incentives under the 1996 Plan.  

In February 2001, the Company implemented the 2001 Nonstatutory Stock Option Plan (the 2001 Plan), under which nonqualified stock 

options to purchase common stock or shares of restricted stock may be granted to employees. Under the 2001 Plan, 25 million shares of 

common stock are authorized for grant of options or issuance of restricted stock. Options granted under the 2001 Plan expire ten years from the 

date of the grant and vest over two years, with 50% vesting ratably on a monthly basis for the first 24 months and the remaining 50% balance 

vesting at the end of the two year period. Restricted stock granted under the 2001 Plan vests over a 17 month period, 16.7% two months from 

the date of grant and ratably thereafter on a quarterly basis. As of December 31, 2001, 3,095,306 shares were available for grant of options or 

issuance of restricted stock under the 2001 Plan.  

On April 17, 2000, the Company initiated the InfoSpace, Inc. and Saraide Inc. 2000 Stock Plan (Tandem Plan), a tandem plan under 

which incentive options and nonqualified stock options to purchase common stock may be granted to employees of Saraide, Inc. (Saraide), a 

subsidiary of the Company. Under the Tandem Plan, Saraide employees receiving the grant received an option to purchase Saraide stock or 

stock of the Company. At the time of exercise, the employee chooses the option to exercise the Saraide option or the InfoSpace option. Upon 

exercise of one option, rights in the option of the other company are cancelled. Under the Tandem Plan, options to purchase 10,000,000 shares 

of the Company's common stock were reserved for grants. Options under the Tandem Plan expire ten years from the date of the grant. Options 

under this plan generally vest over four years, 25% one year from date of grant and ratably thereafter on a monthly basis. 9,339,600 shares of 

InfoSpace common stock remain available for grant of options under the Tandem Plan at December 31, 2001. The Company does not expect to 

make additional grants from this plan.  

In addition to the plans described above, the Company has six option plans assumed through acquisitions by InfoSpace and Go2Net. 

Options granted under these plans typically vest over a four year period, 25% one year from the date of grant and ratably thereafter on a 

quarterly basis and expire six years from the date of grant. As of December 31, 2001, 9,320,206 options were outstanding from these assumed 

plans. No options are available for  

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