EXHIBIT 10.18
  Via Hand Delivery
 
   1. Separation Date.
 2. Accrued Salary and Vacation Pay.
 3. Severance Payment.
 4. Health Insurance.
 5. No Other Compensation or Benefits.
 6. Expense Reimbursements.
 7. Return of Company Property.




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Your timely return of all Company property is a precondition of your receipt of the Severance
Payment.
 8. Proprietary Information Obligations.
 9. Confidentiality. provided, however,
 10. Nondisparagement.
 11. No Voluntary Adverse Action.
 12. No Admissions.
 13. Release of Claims.
  a.
    
    all claims arising out of or in any way related to your employment with
the Company or the termination of that employment;b.
    
    all claims related to your compensation or benefits, including salary,
bonuses, commissions, vacation pay, expense reimbursements, severance pay, fringe
benefits, stock, stock options, or any other equity interests in the Company;c.
    
    all claims for breach of contract, wrongful termination, and breach of
the implied covenant of good faith and fair dealing;d.
    
    all tort claims, including claims for fraud, defamation, emotional
distress, and discharge in violation of public policy;




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e.
    
    any and all claims relating to, or arising from, your right to purchase,
or actual purchase of shares of stock of the Company, including, without limitation,
any claims for fraud, misrepresentation, breach of fiduciary duty, breach of duty
under applicable state corporate law, and securities fraud under any state or
federal law;f.
    
    any and all claims for violation of the federal, or any state,
constitution;g.
    
    any and all claims for any loss, cost, damage, or expense arising out of
any dispute over the non-withholding or other tax treatment of any of the proceeds
received by you as a result of this Agreement;h.
    
    any and all claims for attorneys fees and costs;i.
    
    any and all claims under the law of any jurisdiction including, but not
limited to, wrongful discharge of employment; constructive discharge from
employment; termination in violation of public policy; discrimination; breach of
contract, both express and implied; promissory estoppel; negligent or intentional
infliction of emotional distress; negligent or intentional misrepresentation;
negligent or intentional interference with contract or prospective economic
advantage; unfair business practices; defamation; libel; slander; negligence;
personal injury; assault; battery; invasion of privacy; false imprisonment; and
conversion; andj.
    
    all federal, state, and local statutory claims, including claims for
discrimination, harassment, retaliation, or attorneys fees.
   14. Reservation of Rights.
 15. Future Lawsuits.
 16. Severability.
 17. Miscellaneous.




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Blue Nile, Inc.
 By:
    
    /s/ Diane IrvineDiane IrvineChief Executive Officer
  Understood and Agreed:
 /s/ Kevin FrischKevin FrischDate: October 7, 2009




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Exhibit A
 BLUE NILE, INC.
 EMPLOYEE NONDISCLOSURE, PROPRIETARY INFORMATION, INVENTIONS, NONSOLICITATION AND
NONCOMPETITION AGREEMENT
 Blue Nile, Inc., Company
 1. Nondisclosure
 1.1 Recognition of Companys Rights; Nondisclosure.
 1.2 Proprietary Information. Proprietary Information Proprietary Information Inventions
 1.3 Third Party Information. Third Party
Information
 1.4 No Improper Use of Information of Prior Employers and Others.
 2. Assignment of Inventions.
 2.1 Proprietary Rights. Proprietary Rights




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2.2 Prior Inventions. Exhibit A Prior Inventions Exhibit A Exhibit A
 2.3 Assignment of Inventions. Company Inventions
 2.4 Nonassignable Inventions. I recognize that, my obligation to assign shall not apply to
any Invention for which no equipment, supplies, facility or trade secret information of the Company
was used and which was developed entirely on the my own time, unless (a) the Invention relates
(i) directly to the business of the Company or (ii) to the Companys actual or demonstrably
anticipated research or development; or (b) the Invention results from any work performed by me for
the Company (a  Nonassignable Invention ).
 2.5 Obligation to Keep Company Informed.
 2.6 Government or Third Party.
 2.7 Works for Hire.
 2.8 Enforcement of Proprietary Rights.




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3. Records.
 4. Nonsolicitation And Noncompetition
 4.1 Definition Competing Business
 4.2 Nonsolicitation
  4.3 Noncompetition
 5. Additional Activities.
 6. No Conflicting Obligation.
 7. Return of Company Documents.
 8. Legal and Equitable Remedies.




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9. Notices.
 10. Notification of New Employer.
 11. General Provisions.
 11.1 Governing Law; Consent to Personal Jurisdiction.
 11.2 Severability.
 11.3 Successors and Assigns.
 11.4 Survival.
 11.5 Employment.
 11.6 Waiver.
 11.7 Entire Agreement.
 
 I have read this Agreement carefully and understand its terms. I have completely filled
out Exhibit A to this Agreement.
 Dated:
    
    10/7/2009/s/ Kevin Frisch(Signature)Kevin Frisch(Printed Name)Accepted and Agreed To:Blue Nile, Inc.By:
    
    /s/ Sarah Boydston705 Fifth Avenue South, Suite 900(Address)Seattle, WA 98104Dated:
    
    10/7/2009




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Exhibit A
 TO:
    
    Blue Nile, Inc.FROM:
    
    Kevin FrischDATE:
    
    10/7/2009SUBJECT:
    
    Previous Inventions
 . Blue Nile,
Inc. Company
 þ
    
    No inventions or improvements.o
    
    See below:
 o
    
    Additional sheets attached.
 .
 Invention or Improvement
    
    Party(ies)
    
    Relationship1.2.3.
 o
    
    Additional sheets attached.
  By:
    
    /s/ Kevin Frisch