Document:

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS

EXHIBIT 10.1 (iii)

THIS WARRANT HAS NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY APPLICABLE STATE SECURITIES LAWS.  THUS, NOTWITHSTANDING ANY OTHER PROVISIONS CONTAINED HEREIN, NO TRANSFER, HYPOTHECATION OR OTHER DISPOSITION OF THIS WARRANT IN FAVOR OF ANY PERSON OTHER THAN THE HOLDER HEREOF SHALL BE VALID OR EFFECTIVE UNLESS AN OPINION OF COUNSEL, SATISFACTORY IN FORM AND SUBSTANCE TO THE CORPORATION, IS OBTAINED TO THE EFFECT THAT REGISTRATION UNDER THE SECURITIES ACT OF 1933 OR THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE.  FURTHER, SUCH TRANSFER IS SUBJECT TO THE CONDITIONS SPECIFIED IN SECTION 3 HEREOF.

WARRANT

Date: June 30, 2004                           No. D - 1

Zion Oil & Gas, Inc.

Incorporated Under the Laws of the State of Delaware

THIS CERTIFIES THAT, for value received, ROBERT RENDER TRUST U/A DTD 2-15-94 (whose address is  P.O. Box 809, Lewiston, MI  49756 and whose fax number is 989-786-5950) or its assigns is entitled to subscribe for and purchase, during the Subscription Period as defined below in this Warrant, twenty thousand (20,000) fully paid and non-assessable shares (subject to adjustment as hereinafter provided) of the common stock ("Common Stock"), of ZION OIL & GAS, INC., a Delaware corporation (the "Corporation"), at a per share price equal to $3.00 per share (the "Warrant Price"); subject, however, to the provisions and upon the terms, conditions and adjustments hereinafter set forth. 

1. Exercise Period and Duration.  The right to exercise this Warrant and subscribe for and purchase shares of Common Stock represented hereby ("Warrant Shares") shall commence on January 1, 2006 and expire at 5:00 P.M., Dallas time, on December 31, 2006 (the "Expiration Date")  (said January 1, 2006 - December 31, 2006 period, the "Subscription Period").

2. Method of Exercise; Payment; Issuance of New Warrant.  The holder hereof may exercise this Warrant, in whole or in part, by the surrender of this Warrant (with the subscription form attached hereto duly executed) at the principal office of the Corporation, and by the payment to the Corporation of the then applicable Warrant Price for the shares being purchased upon such exercise at any time during the Subscription Period.  The Warrant Price may be paid in United States currency by wire transfer to an account designated by the Corporation or delivery of a certified check or bank check payable to the order of the Corporation.  

In the event of any exercise of this Warrant, the Corporation shall deliver to the holder hereof, (i) stock certificates for the shares of Common Stock so purchased, and (ii) a new Warrant representing the number of shares, if any, with respect to which this Warrant shall not then have been exercised effective for the duration of the Subscription Period and through the Expiration Date.  Stock certificates for the shares of Common Stock so purchased shall be dated, and the holder hereof shall be deemed for all purposes to be the holder of the shares of Common Stock so purchased as of, the date of such exercise.  Such stock certificates and new Warrant (as applicable) shall be delivered to the holder hereof within a reasonable time, not exceeding ten business days, after the rights represented by this Warrant shall have been so exercised.  Each stock certificate so delivered shall be in such denominations as may be requested by the holder hereof and shall be registered in the name of said holder or such other name (upon compliance with the transfer requirements hereinafter set forth) as shall be designated by said holder.  The Corporation shall pay any taxes and other expenses and charges payable in connection with the preparation, execution and delivery of stock certificates and new Warrants except that, in case such stock certificates shall be registered in a name or names other than the holder of this Warrant, funds sufficient to pay all stock transfer taxes which shall be payable in connection with the execution and delivery of such stock certificates shall be paid by the holder hereof to the Corporation at the time of the delivery of such stock certificates by the Corporation as mentioned above.

3. Transferability; Transfer and Exchange.  Neither this Warrant nor the Warrant Shares shall be transferable except upon the conditions specified in this Section 3, which conditions are intended to insure compliance with the provisions of the Securities Act and state securities laws in respect of the transfer of any such Securities.

(a) Restrictive Legends.

(i) Unless and until otherwise permitted by this Section 3, each certificate for Warrant Shares issued to you or your nominee, or to any subsequent transferee of such certificate, shall be stamped or otherwise imprinted with a legend in substantially the following form:

"THE SHARES REPRESENTED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, AND THUS MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF UNLESS REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR UNLESS AN OPINION OF COUNSEL, SATISFACTORY IN FORM AND SUBSTANCE TO ZION OIL & GAS, INC., A DELAWARE CORPORATION (THE "CORPORATION"), IS OBTAINED TO THE EFFECT THAT AN EXEMPTION FROM SUCH REGISTRATION IS AVAILABLE. FURTHER, SUCH TRANSFER IS SUBJECT TO THE CONDITIONS SPECIFIED IN A WARRANT DATED AS OF June 30, 2004, PURSUANT TO WHICH SUCH SHARES WERE ISSUED AND SOLD OR OTHERWISE TRANSFERRED BY THE CORPORATION, A COPY OF WHICH WARRANT IS ON FILE AND MAY BE INSPECTED AT THE PRINCIPAL OFFICE OF THE CORPORATION.  A COPY OF SUCH WARRANT WILL BE FURNISHED BY THE CORPORATION TO THE HOLDER HEREOF UPON REQUEST AND WITHOUT CHARGE.  UNDER CERTAIN CIRCUMSTANCES SPECIFIED IN SUCH WARRANT, THE CORPORATION HAS AGREED TO DELIVER TO THE HOLDER HEREOF A NEW CERTIFICATE, NOT BEARING THIS LEGEND, FOR ALL OR PART OF THE NUMBER OF SHARES EVIDENCED HEREBY, AS THE CASE MAY BE, REGISTERED IN THE NAME OF SUCH HOLDER OR DESIGNATED NOMINEE."

(ii) The Corporation may order its transfer agents for Warrant Shares to stop the transfer of any Warrant Shares until the conditions of this Section 3 with respect to the transfer of such shares have been satisfied.

(b) Notice of Proposed Transfer.  If, prior to any transfer or sale of any Warrant or Warrant Shares, the holder desiring to effect such transfer or sale shall deliver a written notice to the Corporation describing briefly the manner of such transfer or sale and a written opinion of counsel for such holder (provided that such counsel, and the form and substance of such opinion, are reasonably satisfactory to the Corporation) to the effect that such transfer or sale may be effected without the registration of such securities under the Securities Act, the Corporation shall thereupon permit or cause its transfer agent (if any) to permit such transfer or sale to be effected; provided, however, that if in such written notice the transferring holder represents and warrants to the Corporation that (i) the transfer or sale is to a purchaser or transferee whom the transferring holder knows or reasonably believes to be a "qualified institutional buyer," as that term is defined in Rule 144A promulgated by the Securities and Exchange Commission under the Securities Act ("Rule 144A") and (ii) the transferring holder has taken all steps reasonably necessary to ensure that such transfer otherwise meets the requirements of the provisions of Rule 144A, no opinion shall be required.

(c) Termination of Restrictions.

(i) Notwithstanding the foregoing provisions of this Section 3, the restrictions imposed by this Section 3 upon the transferability of this Warrant and the Warrant Shares shall terminate as to any particular Warrant or Warrant Shares when (i) such security shall have been effectively registered under the Securities Act and sold by the holder thereof in accordance with such registration, or (ii) a written opinion to the effect that such restrictions are no longer required or necessary under any federal or state securities law or regulation has been received from counsel for the holder thereof (provided that such counsel, and the form and substance of such opinion, are reasonably satisfactory to the Corporation) or counsel for the Corporation, or (iii) such security shall have been sold without registration under the Securities Act in compliance with Rule 144 promulgated by the Securities and Exchange Commission under the Securities Act ("Rule 144"), or (iv) the Corporation is reasonably satisfied that the holder of such security shall, in accordance with the terms of Subsection (k) of Rule 144, be entitled to sell such security pursuant to such Subsection, or (v) a letter or an order shall have been issued to the holder thereof by the staff of the Securities and Exchange Commission or such Commission stating that no enforcement action shall be recommended by such staff or taken by such Commission, as the case may be, if such security is transferred without registration under the Securities Act in accordance with the conditions set forth in such letter or order and such letter or order specifies that no subsequent restrictions on transfer are required.

(ii)Whenever the restrictions imposed by this Section 3 shall terminate, as hereinabove provided, the holder of any particular Warrant or Warrant Shares then outstanding as to which such restrictions shall have terminated shall be entitled to receive from the Corporation, without expense to such holder, (i) one or more new certificates for such Warrant Shares not bearing the restrictive legend set forth in Section 3(A) hereof or (ii) a new Warrant not bearing the restrictive legend set forth on the face hereof, as appropriate.

(d) Compliance with Rule 144 and Rule 144A.  At the written request of any holder of any Warrant or Warrant Shares who proposes to sell any such Warrant or Warrant Shares in compliance with Rule 144, the Corporation shall furnish to such holder, within ten days after receipt of such request, a written statement as to whether or not the Corporation is in compliance with the filing requirements of the Securities and Exchange Commission as set forth in such Rule.  For purposes of effecting compliance with Rule 144A, in connection with any resales of this Warrant or Warrant Shares that hereafter may be effected pursuant to the provisions of Rule 144A, any holder of this Warrant or Warrant Shares desiring to effect such resale and each prospective institutional purchaser thereof designated by such holder shall have the right, at any time the Corporation is not subject to Section 13 or 15(d) of the Securities and Exchange Act, to obtain from the Corporation, upon the written request of such holder and at the Corporation's expense the documents specified in Section (d)(4)(i) of Rule 144A, as such rule may be amended from time to time.  

(e) Non-Applicability of Restrictions on Transfer.  Notwithstanding the provisions of Section 3(b) hereof, any record owner of this Warrant or Warrant Shares may from time to time transfer all or part of this Warrant or all or part of such record owner's Warrant Shares (i) to a nominee identified in writing to the Corporation as being the nominee of or for such record owner, and any nominee of or for a beneficial owner of this Warrant or Warrant Shares identified in writing to the Corporation as being the nominee of or for such beneficial owner may from time to time transfer all of this Warrant or all or part of the Warrant Shares registered in the name of such nominee but held as nominee on behalf of such beneficial owner, to such beneficial owner, (ii) to an Affiliate of such record owner, or (iii) if such record owner is a partnership or limited liability company or the nominee of a partnership or limited liability company, to a partner or member, retired partner or member, or estate of a partner or member or retired partner or member, of such partnership or limited liability company, so long as such transfer is in accordance with the transferee's interest in such partnership and is without consideration; provided, however, that each such transferee represents and warrants to the Corporation that such Person is, at the time of transfer, an "accredited investor" as such term is defined in Rule 501 of Regulation D promulgated under the Securities Act, that each such transferee shall remain subject to all restrictions on the transfer herein contained. 

(f)Procedure for Transfer.  Upon the permitted transfer by any record owner of any Warrant or Warrant Shares in accordance with the provisions of this Section 3, such Warrant or Warrant Shares may be transferred on the books of the Corporation by the holder hereof in person or by duly authorized attorney, upon surrender of the Warrant or Warrant Shares at the principal office of the Corporation, properly endorsed and upon payment of any necessary transfer tax or other governmental charge imposed upon such transfer.  This Warrant and any Warrant Shares issuable upon exercise hereof is exchangeable at the principal office of the Corporation for (i) Warrants for the purchase of the same aggregate number of shares of Common Stock, each new Warrant to represent the right to purchase such number of shares of Common Stock as the holder hereof shall designate at the time of such exchange, or (ii) the same number of Warrant Shares, as appropriate.  All Warrants issued on transfers or exchanges shall be dated the date hereof and shall be identical with this Warrant except as to the number of shares of Common Stock issuable pursuant hereto.

4.  Certain Adjustments.The following adjustments shall take effect to the extent that such adjustments do not result in a Warrant Price lower than the then applicable par value of the Common Stock:

(a)Adjustment for Stock Splits and Combinations.  If the Corporation at any time or from time to time after the date hereof effects a subdivision of its outstanding shares of Common Stock, the Warrant Price then in effect immediately before the subdivision shall be proportionately decreased, and conversely, if the Corporation at any time or from time to time after the date hereof combines the outstanding shares of Common Stock into a smaller number of shares, the Warrant Price then in effect immediately before the combination shall be proportionately increased.  Any adjustment under this subsection 4(a) shall become effective at the close of business on the date the subdivision or combination becomes effective.

(b)Adjustment for Certain Dividends and Distributions.  If the Corporation at any time or from time to time after the date hereof makes or issues, or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in additional shares of Common Stock, then and in each such event the Warrant Price then in effect shall be decreased as of the time of such issuance or, in the event such record date is fixed, as of the close of business on such record date, by multiplying the Warrant Price then in effect by a fraction (i) the numerator of which is the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date, and (ii) the denominator of which shall be the total number of shares of Common Stock issued and outstanding immediately prior to the time of such issuance or the close of business on such record date plus the number of shares of Common Stock issuable in payment of such dividend or distribution; provided, however, that if such record date is fixed and such dividend is not fully paid or if such distribution is not fully made on the date fixed therefor, the Warrant Price shall be recomputed accordingly as of the close of business on such record date and thereafter the Warrant Price shall be adjusted pursuant to this subsection 4(b) as of the time of actual payment of such dividends or distributions.

(c)Adjustments for Other Dividends and Distributions.  In the event the Corporation at any time or from time to time after the date hereof makes or issues, or fixes a record date for the determination of holders of Common Stock entitled to receive, a dividend or other distribution payable in securities of the Corporation other than shares of Common Stock, then and in each such event provision shall be made so that the holder of this Warrant shall receive, in addition to the number of shares of Warrant Shares receivable thereupon, the amount of securities of the Corporation which such holder would have received had this Warrant been exercised for shares of Warrant Shares on the date of such event and had such holder thereafter, during the period from the date of such event to and including the exercise date, retained such securities receivable by such holder as aforesaid during such period, subject to all other adjustments called for during such period under this Section 4 with respect to the rights of the holder of this Warrant.

(d)Adjustment for Reclassification, Exchange and Substitution.  In the event that at any time or from time to time after the date hereof, the Common Stock issuable upon the exercise of this Warrant is changed into the same or a different number of shares of any class or classes of stock, whether by recapitalization, reclassification or otherwise (other than a subdivision or combination of shares or stock dividend or a reorganization, merger, consolidation or sale of assets, provided for elsewhere in this Section 4), then and in any such event the holder of this Warrant shall have the right thereafter to exercise this Warrant for the kind and amount of stock and other securities and property receivable upon such recapitalization, reclassification or other change, by holders of the maximum number of shares of Common Stock into which this Warrant could have been exercised immediately prior to such recapitalization, reclassification or change, all subject to further adjustment as provided herein.

(e)Reorganizations, Mergers, Consolidations or Sales of Assets.  If at any time or from time to time after the date hereof there is a capital reorganization of the Common Stock (other than a recapitalization, subdivision, combination, reclassification or exchange of shares provided for elsewhere in this Section 4) or a merger or consolidation of the Corporation with or into another corporation, or the sale of all or substantially all of the Corporation's properties and assets to any other person or entity, then, as a part of such reorganization, merger, consolidation or sale, provision shall be made so that the holder of this Warrant shall thereafter be entitled to receive upon exercise of this Warrant the number of shares of stock or other securities or property of the Corporation, or of the successor corporation resulting from such merger or consolidation or sale, for which a holder of the number of shares of Common Stock deliverable upon exercise would have been entitled on such capital reorganization, merger, consolidation, or sale.  In any such case, appropriate adjustment shall be made in the application of the provisions of this Section 4 with respect to the rights of the holder of this Warrant after the reorganization, merger, consolidation or sale to the end that the provisions of this Section 4 (including adjustment of the Warrant Price then in effect and the number of shares purchasable upon exercise of this Warrant) shall be applicable after that event and be as nearly equivalent as may be practicable.

5. Procedural Items.

(a)Record Date.  In the event of (i) the Corporation setting a record date for the purpose of any dividend or other distribution, or (ii) any capital reorganization of the Corporation, any reclassification or recapitalization of the capital stock of the Corporation, any merger or consolidation of the Corporation with or into any other corporation, or any transfer of all or substantially all of the assets of the Corporation to any other person or entity or any voluntary or involuntary dissolution, liquidation or winding up of the Corporation, the Corporation shall mail to the holder hereof at least ten (10) days prior to the record date specified therein, a notice specifying (1) the record date for purposes of such dividend or distribution and a description of such dividend or distribution, (2) the date on which any such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation or winding up is expected to become effective, and (3) the date, if any, that is to be fixed, as to when the holders of record of Common Stock shall be entitled to exchange their shares of Common Stock for securities or other property deliverable upon such reorganization, reclassification, transfer, consolidation, merger, dissolution, liquidation or winding up.

(b)Fractional Shares. No fractional shares of Common Stock shall be issued upon exercise of this Warrant.  In lieu of any fractional share to which the holder would otherwise be entitled, the Corporation shall pay cash equal to the product of such fraction multiplied by the fair market value of one share of Common Stock on the date of exercise, as reasonably determined in good faith by the Board.

(c)Reservation of Shares.  The Corporation shall at all times reserve and keep available out of its authorized but unissued shares of Common Stock, solely for the purpose of effecting the exercise of this Warrant into the Common Stock issuable hereunder, such number of its shares of Common Stock as shall be sufficient to effect the full exercise of this Warrant; and if at any time the number of authorized but unissued shares of Common Stock shall not be sufficient to effect the full exercise of this Warrant, the Corporation will take such corporate action as may, in the opinion of its counsel, be necessary to increase its authorized but unissued shares of Common Stock to such number of shares as shall be sufficient for such purposes.

6. No Dilution or Impairment.  The Corporation will not, by amendment of its certificate of incorporation or through any reorganization, transfer of assets, consolidation, merger, dissolution, issue or sale of securities or any other voluntary action, avoid or seek to avoid the observance or performance of any of the terms of this Warrant, but will at all times in good faith assist in the carrying out of all such terms and in the taking of all such actions as may be necessary or appropriate in order to protect the rights of the holders of this Warrant against dilution or impairment.  Without limiting the generality of the foregoing, the Corporation (a) will not increase the par value of the shares of Common Stock above the amount payable therefor on such exercise, (b) will take all such action as may be necessary or appropriate in order that the Corporation may validly and legally issue fully paid and nonassessable shares of Common Stock on the exercise of this Warrant and (c) will not transfer all or substantially all of its properties and assets to any other person (corporate or otherwise), or consolidate with or merge into any other person or permit any such person to consolidate with or merge into the Corporation (if the Corporation is not the surviving person), unless such other person shall expressly assume in writing and become bound by all the terms of this Warrant.

7. Shares to be Fully Paid; Reservation of Shares.  The Corporation covenants and agrees that all Common Stock issued upon exercise of this Warrant will, upon issuance, be fully paid and nonassessable and free from preemptive rights and all taxes, liens and charges with respect to the issuance thereof. Furthermore, and without limiting the generality of the foregoing, the Corporation covenants and agrees that it will from time to time take all such action as may be required to assure that the par value per share of Common Stock is at all times equal to or less than the effective Warrant Price. 

8. Notices. All notices and other communications hereunder shall be in writing or by telex, telegram or telecopy, and shall be deemed to have been duly made when delivered in person or sent by telex, telegram, telecopy, same day or overnight courier, or 72 hours after having been deposited in the United States first class or registered or certified mail return receipt requested, postage prepaid.  Notices shall be sent:

If to the holder of the Warrant:

to the name, address and fax number set forth on the first page of this warrant

If to the Corporation:

Zion Oil & Gas, Inc.

6510 Abrams Road, Suite 300

Dallas, Texas 75231

Attn:President,  Fax:(214) 221-6510

9. Governing Law.  This Warrant shall be construed in accordance with and governed by the laws of the State of Delaware without regard to the principles of conflicts of laws.

10. Remedies.  The Corporation stipulates that the remedies at law of the holder of this Warrant in the event of any default by the Corporation in the performance of or compliance with any of the terms of this Warrant are not and will not be adequate, and that such terms may be specifically enforced by a decree for the specific performance of any agreement contained herein or by an injunction against a violation of any of the terms hereof or otherwise.

11. Registration.  The warrants in the Series shall be numbered and shall be registered in a warrant register as they are issued. The Corporation shall be entitled to treat the registered holder of any warrant in the Series on the warrant register as the owner in fact thereof for all purposes and shall not be bound to recognize any equitable or other claim to or interest in such warrant on the part of any other person, and shall not be liable for any registration or transfer of warrants which are registered or to be registered in the name of a fiduciary or the nominee of a fiduciary unless made with the actual knowledge that a fiduciary or nominee is committing a breach of trust in requesting such registration of transfer, or with knowledge of such facts that its participation therein amounts to bad faith.

12. Miscellaneous.

(a) Amendments.  This Warrant and any provision hereof may be amended only by an instrument in writing signed by the holder of this Warrant and the Corporation, except the Corporation may waive any of its rights for the benefit of the holder by notice in writing to the holder of this Warrant, including, without limitation, extension of the date of termination or lowering of the exercise price.

(b) Descriptive Headings.  The descriptive headings of the several Sections of this Warrant are inserted for purposes of reference only, and shall not affect the meaning or construction of any of the provisions hereof.

13. Definitions.  For the purposes of this Warrant the following terms have the following meanings:

"Affiliate" shall mean any entity controlling, controlled by or under common control with another entity.  For the purposes of this definition, "control" shall have the meaning  presently specified for that word in Rule 405 promulgated by the Securities and Exchange Commission under the Securities Act.  With respect to any Person who is a limited partnership, "Affiliate" shall also mean any general or limited partner of such limited partnership, or any Person which is a general partner in a general or limited partnership which is a general partner of such limited partnership.

"Person" shall mean an individual, a corporation, a partnership, a limited liability company, a trust, an unincorporated organization or a government organization or an agency or political subdivision thereof.

"Securities Act" shall mean the Securities Act of 1933, as amended prior to or after the date hereof, or any federal statute or statutes which shall be enacted to take the place of such Act, together with all rules and regulations promulgated thereunder.

"Securities and Exchange Commission" shall mean the United States Securities and Exchange Commission or any successor to the functions of such agency.

IN WITNESS WHEREOF, the Corporation has caused this Warrant to be executed effective as of the date first above written.

 

ZION OIL & GAS, INC.

By: /s/ E A Soltero    

Eugene A. Soltero, President 

EXHIBIT A

SUBSCRIPTION FORM

[To be executed only upon exercise of Warrant]

The undersigned registered owner of the attached Warrant irrevocably exercises such Warrant for the purchase of _______ shares of Common Stock of Zion Oil & Gas, Inc. and herewith makes payment therefor, all at the price and on the terms and conditions specified in such Warrant and requests that certificates for the shares of Common Stock hereby purchased (and any securities or other property issuable upon such exercise) be issued in the name of and delivered to ___________________ whose address is ________________________________ and, if such shares of Common Stock shall not include all of the shares of Common Stock issuable as provided in such Warrant, that a new Warrant of like tenor and date for the balance of the shares of Common Stock issuable hereunder be delivered to the undersigned.

___________________________________

(Name of Registered Owner)

___________________________________

(Signature of Registered Owner)

___________________________________

(Street Address)

___________________________________

(City)          (State)  (Zip Code)

NOTICE:The signature on this subscription must correspond with the name as written upon the face of the attached Warrant in every particular, without alteration or enlargement or any change whatsoever, and if the Warrant representing the shares or any Warrant Certificate representing Warrants not exercised is to be registered in a name other than that in which this Warrant is registered, the signature of the holder hereof must be guaranteed.Exhibit 10.1

                         SEPARATION AND GENERAL RELEASE

BANKRATE, INC. ("Company") and ELISABETH DEMARSE, her heirs, executors,
administrators, successors, and assigns (collectively referred to throughout
this Separation and General Release as "Executive"), agree that:

A. Executive was employed by Company pursuant to the terms of that certain
Executive Employment Agreement, by and between Executive and Company, dated as
of the 27th day of April, 2002 (the "Employment Agreement").

B. Executive ceased to serve as the President and Chief Executive Officer of the
Company on June 21, 2004 and, as a condition to, an in consideration of,
Company's obligation to pay the Separation Payment (as defined in the Employment
Agreement), is entering into this Separation and General Release (this
"Separation Agreement").

      1. Resignation as Officer and Director; Last Day of Employment. Executive
resigned her positions as President, Chief Executive Officer as of June 21, 2004
and resigns as director and any and all other positions held with Company as of
the date of this Separation Agreement. Executive's last day as an employee will
be October 21, 2004; however, she is not expected to provide any services,
unless specifically requested to do so. Furthermore, following June 21, 2004,
Executive shall not receive, nor be entitled to, any salary, vacation, bonus,
deferred compensation, benefits or any other compensation of any kind whatsoever
not expressly provided for in this Separation Agreement. If despite the
intentions of Company and Executive set forth in the preceding sentence,
Executive is entitled, under any law, rule or regulation or for any other reason
whatsoever, to any salary, vacation, bonus, deferred compensation, benefits or
other compensation not expressly provided for in this Separation Agreement, then
Company shall have the right to deduct, from amounts payable to Executive, the
Company's cost and expenses for such salary, vacation, bonus, deferred
compensation, benefits, or other compensation.

      2. Consideration Payable to Executive. As a condition to, and in
consideration of, Executive entering into this Separation Agreement and her
compliance with the promises made in this Separation Agreement, Company agrees,
subject to Section 6 below and Company's rights to make deductions to amounts
payable to Executive solely in accordance with this Agreement:

            (a) to pay Executive, subject to standard withholdings, Fifty-four
Thousand Two Hundred and Seven and 40/100 Dollars ($54,207.40) for accrued
vacation pay;

                                       1
<PAGE>

            (b) to pay Peter Roche, Ten Thousand ($10,000), for Executive's
outplacement and transitional counseling services;

            (c) to pay Executive, subject to standard withholdings, One Hundred
Twenty-Five Thousand and No/100 Dollars ($125,000) upon the day after the
expiration date of Executive's legally required right, if any, to revoke her
signature or agreement in connection with this Separation Agreement;

            (d) to pay Executive, subject to standard withholdings, One Hundred
Twenty-Five Thousand and No/100 Dollars ($125,000) on October 21, 2004, subject
to her executing the Second General Release of Claims which is attached to this
Agreement as Exhibit A (the "Second General Release of Claims") and complying
with the terms and conditions of this Agreement; and

            (e) until the first to occur of (a) June 21, 2005 or (b) the date on
which Executive becomes eligible for coverage under a group health insurance
plan available in conjunction with Executive's subsequent employment, Company
shall, at its sole option (and with the right to select option (ii) at any time)
either: (i) continue Executive's participation in the Company's group health
insurance plan as in effect and amended from time to time or (ii) reimburse
Executive the amount of monthly premiums paid by Executive for health insurance
coverage reasonably comparable to the health insurance coverage provided to
Executive pursuant to Company's benefit plans; provided, however, that the
amount that Company is obligated to reimburse each month is limited to 150% of
the monthly health insurance premium payments made by Company on behalf of
Executive in May 2004. Provided Executive has not become eligible for coverage
under a subsequent employer's group health insurance plan, Executive's period of
COBRA continuation will commence on October 21, 2004. Subject to this Section
2(E), Company will be responsible for payment of premiums through June 21, 2005
following which Executive will be responsible for premiums at the COBRA rate for
the balance of the COBRA health insurance continuation period.

            (f) Executive shall be entitled to be paid for any unpaid and
reasonably approved business expenses properly documented and submitted to the
Company on or prior to June 30, 2004.

            (g) Company agrees to pay Vedder, Price, Kaufman & Kammholz, P.C.
for legal services provided to Executive in an amount directed by Executive to
Company in writing within five (5) days of the execution of this Agreement,
which amount shall be subtracted from payments otherwise due Executive pursuant
to Section 2(C).

Executive acknowledges and understands that the payment of the compensation or
of any other benefit described in this Separation Agreement is in no way to be
construed as an admission of any liability on the part of Company, and Company
expressly denies any liability to Executive.

      3. Executive's Stock Options and Deferred Compensation. Company
acknowledges and agrees that Executive has vested options to acquire up to
426,936 shares of Company's Common Stock at $0.85 per share. Company
acknowledges and agrees that the balance of Executive's deferred compensation
account will be paid to her promptly following October 21, 2004, in accordance
with her deferred compensation election.

                                       2
<PAGE>

      4. Executive's Restrictive Covenants. As a condition to, and in
consideration of, Company's obligations to pay the amounts set forth in
paragraph "2" of this above, Executive agrees to comply with the restrictive
covenants set forth in Section 12 of the Employment Agreement, and the
provisions of the Employment Agreement that specifically survive termination of
the Employment Agreement.

      5. No Consideration Absent Execution of this Agreement. Executive
understands and agrees that she would not receive the monies and/or benefits
specified in paragraph "2" above, except for her execution of this Separation
Agreement and the fulfillment of the promises contained herein. Executive
further understands and agrees that the payments provided for in this Separation
Agreement exceed any payments, benefit, or other thing of value to which she
might otherwise be entitled under any policy, plan or procedure of Company.

      6. Executive's Revocation Rights. Executive may revoke this Separation
Agreement for a period of seven (7) calendar days following the day she executes
this Separation Agreement. Any revocation within this period must be submitted,
in writing, to David G. Bates, Esq. and state, "I hereby revoke my acceptance of
our Separation Agreement." The revocation must be personally delivered, sent by
nationally recognized courier service, or mailed to David G. Bates, Esq. c/o
Gunster, Yoakley & Stewart, P.A., 777 South Flagler Drive, West Palm Beach,
Florida 33401 and postmarked within seven (7) calendar days of execution of this
Separation Agreement. This Separation Agreement shall not become effective or
enforceable until the revocation period has expired. Amounts due will not be
paid until Company receives the letter attached hereto as Exhibit B. If the last
day of the revocation period is a Saturday, Sunday, or legal holiday in the
state in which Executive was employed at the time of her last day of employment,
then the revocation period shall not expire until the next following day which
is not a Saturday, Sunday, or legal holiday.

      7. Executive's General Release of Claims. Executive knowingly and
voluntarily releases and forever discharges Company, its past, present and
future corporations, affiliates, subsidiaries, divisions, successors and
assigns, and each of their respective current and former employees, officers,
directors, attorneys and agents (whether acting as agents for Company or in
their individual capacities) (collectively referred to throughout the remainder
of this Separation Agreement as "Releasees"), of and from any and all claims,
known and unknown, Executive has or may have against Company as of the date of
execution of this Separation Agreement, including, but not limited to, any
alleged violation of:

      o     Title VII of the Civil Rights Act of 1964, as amended;

      o     The Civil Rights Act of 1991;

                                       3
<PAGE>

      o     Sections 1981 through 1988 of Title 42 of the United States Code, as
            amended;

      o     The Employee Retirement Income Security Act of 1974, as amended;

      o     The Immigration Reform and Control Act, as amended;

      o     The Americans with Disabilities Act of 1991, as amended;

      o     The Age Discrimination in Employment Act of 1967, as amended;

      o     The Workers Adjustment and Retraining Notification Act, as amended;

      o     The Occupational Safety and Health Act, as amended;

      o     The Florida Civil Rights Act of 1992;

      o     The Florida Equal Pay Act,ss.725.07, Florida Statutes;

      o     The Florida Whistleblower Act,ss.448.102, et seq., Florida Statutes;

      o     Florida's Workers' Compensation Anti-Retaliation
            Provision,ss.440.205, Florida Statutes;

      o     Florida's Wage Rate Provision,ss.448.07, Florida Statutes; o
            Florida's Attorneys' Fees Provision for Successful Litigants in
            Suits for Unpaid Wages,ss.448.08, Florida Statutes;

      o     The New York State Human Rights Law;

      o     The New York City Administrative Code;

      o     Any breach of the Employment Agreement;

      o     Any other claims related to Executive's employment or separation of
            employment with Company;

      o     Any other federal, state or local civil or human rights law or any
            other local, state or federal law, regulation or ordinance;

      o     Any public policy, contract, tort, or common law; or

      o     Any allegation for costs, fees, or other expenses including
            attorneys' fees incurred in these matters.

However, Executive is not releasing (i) her rights to enforce the terms and
conditions of this Agreement; (ii) her rights, if any, to obtain contribution as
permitted by law in the event of entry of judgment against her as a result of
any act or failure to act for which she and the Company are jointly liable;
(iii) her eligibility for indemnification in accordance with this Agreement and
applicable laws and corporate by-laws as in existence on the date of execution
of this Separation Agreement with respect to any liability incurred as a result
of her employment or other service prior to June 21, 2004, or the termination
thereof, with the Company as an officer, director or employee; and (iv) her
rights to be covered under the Company's Directors and Officers liability
insurance policies.

                                       4
<PAGE>

      8. Executive's Affirmations. Executive affirms that she has not filed,
caused to be filed, or presently is a party to any claim, complaint, or action
against Company in any forum or form. Executive further affirms that she has
reported all hours worked as of the date of this release and has been paid
and/or has received all leave (paid or unpaid), compensation, wages, bonuses,
commissions, and/or benefits to which she may be entitled and that no other
leave (paid or unpaid), compensation, wages, bonuses, reimbursements,
commissions and/or benefits are due to her, except as provided in this
Separation Agreement. Without limiting the generality of the foregoing,
Executive further affirms that she is not entitled to any additional
compensation and has no rights whatsoever in connection with that certain book
tentatively titled Your Financial Action Plan: 12 Simple Steps to Achieve Money
Success; however, Executive will be recognized in the book's acknowledgment
section.

Executive affirms that she has no known workplace injuries or occupational
diseases and has been provided and/or has not been denied any leave requested
under the Family and Medical Leave Act. It is stipulated and agreed that the
amounts payable to Executive are in lieu of notice for purposes of the Florida
Unemployment Compensation Law and it is understood that Executive will not be
eligible to receive unemployment compensation until the expiration of the
severance benefits provided pursuant to this Separation Agreement.

Executive agrees that she will not seek or accept any award or settlement from
any source or proceeding (including but not limited to any proceeding brought by
any other person or by any government agency) with respect to any claim or right
waived in paragraph "7" above. Executive further agrees, to the maximum extent
permitted by law, that she will not sue or commence any proceeding (judicial or
administrative), or participate in any action, suit or proceeding (unless
compelled by legal process or court order) against the Releasees. Executive also
warrants and represents that as of the date she signs this Separation Agreement,
she has not taken or engaged in any of the acts described in the foregoing
sentences. If, notwithstanding the foregoing promises, she violates this
paragraph "8", she shall be required, to the maximum extent permitted by law, to
indemnify and hold harmless the Releasees from and against any and all demands,
assessments, judgments, costs, damages, losses and liabilities, and attorneys'
fees and other expenses which result from, or are incident to, such violation.

      9. Confidentiality. Prior to the date on which this Separation Agreement
becomes publicly available if required by law, Executive agrees not to disclose
any information regarding the terms or provisions of this Separation Agreement
(including, without limitation, that she is an employee of the Company through
October 21, 2004), except to her spouse, tax advisor, taxing authorities and an
attorney with whom Executive chooses to consult regarding her consideration of
this Separation Agreement. Executive agrees and acknowledges that she shall
continue to be bound by Section 12 of the Employment Agreement governing
confidentiality and trade secrets.

                                       5
<PAGE>

      10. Indemnification. Executive shall continue to have the benefits of any
and all agreements, policies and arrangements relating to the indemnification of
officers and directors of the Company and the provisions of the Company's
Certificate of Incorporation and By-laws (as they exist on June 21, 2004 with
respect to any claims made against Executive with respect to her status or
actions in any capacity by or on behalf of the Company prior to June 21, 2004.

      11. Non-Disparagement. Except as required by statute or legal process, at
all times following the execution of this Separation Agreement, Company and
Executive agree to refrain from intentionally disparaging each other to third
parties in any utterance, writing, or other form of communication and shall
communicate with reference to each other only in truthful, favorable and
respectful terms.

      12. Publicity. Executive shall not make any press releases pertaining to
her resignation or the transactions contemplated by this Separation Agreement.
Subject at all times to compliance with the law and generally accepted
accounting principles, any proposed press release pertaining to the Executive's
resignation and/or the transactions contemplated by this Separation Agreement to
be released by Company shall be provided to Executive for her review, but not
her approval.

      13. Executive Shall Return of Company's Property. To the extent Executive
has not already done so, upon signing this Separation Agreement, Executive shall
immediately return to Company any assets belonging to it, including without
limitation, all office keys, car keys, credit cards, cell phone, Blackberry,
PDAs, and any other property belonging to the Company; provided however,
Executive may keep her laptop computer after she delivers it to the Company's
New York office for purposes of deleting all Company information, software,
files, etc. from such computer.

      14. Office, Voicemail and Email. Executive shall no longer use her office
at Company's offices and confirms that she has removed all of her belongings
from such office. Until September 19, 2004, Company shall forward Executive's
voicemails and emails in a manner mutually acceptable to Company and Executive.

      15. Interpretation. In the event the either party breaches any provision
of this Separation Agreement, Executive and Company affirm that either may
institute an action to specifically enforce any term or terms of this Separation
Agreement. Should any provision of this Separation Agreement be declared illegal
or unenforceable by any court of competent jurisdiction and cannot be modified
to be enforceable, excluding the general release language, such provision shall
immediately become null and void, leaving the remainder of this Separation
Agreement in full force and effect.

      16. Non-admission of Wrongdoing. The parties agree that neither this
Separation Agreement nor the furnishing of the consideration for this Separation
Agreement shall be deemed or construed at anytime for any purpose as an
admission by either party of any liability or unlawful conduct of any kind.

                                       6
<PAGE>

      17. Amendment. This Separation Agreement may not be modified, altered or
changed except upon express written agreement of both parties wherein specific
reference is made to this Separation Agreement.

      18. Governing Law; Venue. This Separation Agreement shall be enforced,
governed and interpreted by the laws of the State of Florida without regard to
Florida's conflict of laws principles. Any controversy or claim arising out of
or relating to this Separation Agreement, or the breach thereof, shall be
settled by arbitration in Palm Beach County, Florida pursuant to the Commercial
Arbitration Rules of the AAA.

      19. Entire Agreement. This Separation Agreement, the Second General
Release of Claims and the provisions of the Employment Agreement which survive
her termination of employment, sets forth the entire agreement between the
parties hereto, and fully supersedes any prior agreements or understandings
between the parties. Executive acknowledges that she has not relied on any
representations, promises, or agreements of any kind made to him in connection
with her decision to accept this Separation Agreement, except for those set
forth in this Separation Agreement.

      EXECUTIVE HAS BEEN ADVISED THAT SHE HAS UP TO TWENTY-ONE (21) CALENDAR
DAYS TO REVIEW THIS SEPARATION AND GENERAL RELEASE AND HAS BEEN ADVISED IN
WRITING TO CONSULT WITH AN ATTORNEY PRIOR TO EXECUTION OF THIS SEPARATION AND
GENERAL RELEASE.

      EXECUTIVE ACKNOWLEDGES THAT SHE HAS READ THIS SEPARATION AND GENERAL
RELEASE IN ITS ENTIRETY; THAT SHE FULLY UNDERSTANDS ALL OF ITS TERMS AND THEIR
SIGNIFICANCE; THAT SHE HAS SIGNED IT VOLUNTARILY AND OF HER OWN FREE WILL; AND
THAT SHE INTENDS TO ABIDE BY ITS PROVISIONS WITHOUT EXCEPTION.

      EXECUTIVE AGREES THAT ANY MODIFICATIONS, MATERIAL OR OTHERWISE, MADE TO
THIS SEPARATION AND GENERAL RELEASE DO NOT RESTART OR AFFECT IN ANY MANNER THE
ORIGINAL TWENTY-ONE (21) CALENDAR DAY CONSIDERATION PERIOD.

      HAVING ELECTED TO EXECUTE THIS SEPARATION AND GENERAL RELEASE, TO FULFILL
THE PROMISES AND TO RECEIVE THE SUMS AND BENEFITS IN PARAGRAPH "2" ABOVE,
EXECUTIVE FREELY AND KNOWINGLY, AND AFTER DUE CONSIDERATION, ENTERS INTO THIS
SEPARATION AND GENERAL RELEASE INTENDING TO WAIVE, SETTLE AND RELEASE ALL CLAIMS
SHE HAS OR MIGHT HAVE AGAINST COMPANY.

      IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed
this Separation Agreement as of the date set forth below:

EXECUTIVE:                             COMPANY:

                                       BANKRATE, INC.

/s/ Elisabeth DeMarse                  By: /s/ Thomas R. Evans
---------------------------------      -------------------------------
ELISABETH DEMARSE                      Its:  President & CEO
                                       -------------------------------

Date:  August 10. 2004                 Date:  August 10, 2004
       ---------------                 -------------------------------

                                       7
<PAGE>

EXHIBIT A

                  EXECUTIVE'S SECOND GENERAL RELEASE OF CLAIMS

WHEREAS, Executive has previously executed a Separation and General Release
Agreement ("Separation Agreement") with Bankrate, Inc. (the "Company"), dated as
of the ___ day of August, in which this Second General Release of Claims is
incorporated.
WHEREAS, Executive's execution of this Second General Release of Claims and her
compliance with the Separation Agreement's terms and conditions are a condition
for Company's payment to her pursuant to Section 2(d) of the Separation
Agreement.
NOW, THEREFORE, in consideration of the premises and covenants contained in the
Separation Agreement and this Second General Release of Claims and for other
good and valuable consideration, Executive agrees to the following release:

      1. Executive's General Release of Claims. Executive knowingly and
voluntarily releases and forever discharges Company, its past, present and
future corporations, affiliates, subsidiaries, divisions, successors and
assigns, and each of their respective current and former employees, officers,
directors, attorneys and agents (whether acting as agents for Company or in
their individual capacities) (collectively referred to throughout the remainder
of this Separation Agreement as "Releasees"), of and from any and all claims,
known and unknown, Executive has or may have against Company as of the date of
execution of this Second General Release of Claims, including, but not limited
to, any alleged violation of:

      o     Title VII of the Civil Rights Act of 1964, as amended;

      o     The Civil Rights Act of 1991;

      o     Sections 1981 through 1988 of Title 42 of the United States Code, as
            amended;

      o     The Employee Retirement Income Security Act of 1974, as amended;

      o     The Immigration Reform and Control Act, as amended;

      o     The Americans with Disabilities Act of 1991, as amended;

      o     The Age Discrimination in Employment Act of 1967, as amended;

      o     The Workers Adjustment and Retraining Notification Act, as amended;

      o     The Occupational Safety and Health Act, as amended;

      o     The Florida Civil Rights Act of 1992;

      o     The Florida Equal Pay Act,ss.725.07, Florida Statutes;

      o     The Florida Whistleblower Act,ss.448.102, et seq., Florida Statutes;

                                       8
<PAGE>

      o     Florida's Workers' Compensation Anti-Retaliation
            Provision,ss.440.205, Florida Statutes;

      o     Florida's Wage Rate Provision,ss.448.07, Florida Statutes;

      o     Florida's Attorneys' Fees Provision for Successful Litigants in
            Suits for Unpaid Wages,ss.448.08, Florida Statutes;

      o     The New York State Human Rights Law;

      o     The New York City Administrative Code;

      o     Any breach of the Employment Agreement;

      o     Any other claims related to Executive's employment or separation of
            employment with Company;

      o     Any other federal, state or local civil or human rights law or any
            other local, state or federal law, regulation or ordinance;

      o     Any public policy, contract, tort, or common law; or

      o     Any allegation for costs, fees, or other expenses including
            attorneys' fees incurred in these matters.

However, Executive is not releasing (i) her rights to enforce the terms and
conditions of the Separation Agreement; (ii) her rights, if any, to obtain
contribution as permitted by law in the event of entry of judgment against her
as a result of any act or failure to act for which she and the Company are
jointly liable; (iii) her eligibility for indemnification in accordance with the
Separation Agreement and applicable laws and corporate by-laws as in existence
on the date of execution of the Separation Agreement with respect to any
liability incurred as a result of her employment or other service, or the
termination thereof, with the Company as an officer, director or employee prior
to June 21, 2004; and (iv) her rights to be covered under the Company's
Directors and Officers liability insurance policies.

      2. Executive's Affirmations. Executive affirms that she has not filed,
caused to be filed, or presently is a party to any claim, complaint, or action
against Company in any forum or form. Executive further affirms that she has
reported all hours worked as of the date of this release and has been paid
and/or has received all leave (paid or unpaid), compensation, wages, bonuses,
commissions, and/or benefits to which she may be entitled and that no other
leave (paid or unpaid), compensation, wages, bonuses, reimbursements,
commissions and/or benefits are due to her, except as provided in this Second
General Release of Claims and the Separation Agreement.

Executive affirms that she has no known workplace injuries or occupational
diseases and has been provided and/or has not been denied any leave requested
under the Family and Medical Leave Act. It is stipulated and agreed that the
amounts payable to Executive are in lieu of notice for purposes of the Florida
Unemployment Compensation Law and it is understood that Executive will not be
eligible to receive unemployment compensation until the expiration of the
severance benefits provided pursuant to the Separation Agreement.

                                       9
<PAGE>

Executive agrees that she will not seek or accept any award or settlement from
any source or proceeding (including but not limited to any proceeding brought by
any other person or by any government agency) with respect to any claim or right
waived in paragraph "1" above. Executive further agrees, to the maximum extent
permitted by law, that she will not sue or commence any proceeding (judicial or
administrative), or participate in any action, suit or proceeding (unless
compelled by legal process or court order) against the Releasees. Executive also
warrants and represents that as of the date she signs this Second General
Release of Claims, she has not taken or engaged in any of the acts described in
the foregoing sentences. If, notwithstanding the foregoing promises, she
violates this paragraph "2", she shall be required, to the maximum extent
permitted by law, to indemnify and hold harmless the Releasees from and against
any and all demands, assessments, judgments, costs, damages, losses and
liabilities, and attorneys' fees and other expenses which result from, or are
incident to, such violation.

      3. Confidentiality. Prior to the date on which this Second General Release
of Claims and the Separation Agreement becomes publicly available, Executive
agrees not to disclose any information regarding the terms or provisions of this
Second General Release of Claims or the Separation Agreement, except to her
spouse, tax advisor, taxing authorities and an attorney with whom Executive
chooses to consult regarding her consideration of this Separation Agreement.
Executive agrees and acknowledges that she shall continue to be bound by Section
12 of the Employment Agreement governing confidentiality and trade secrets.

      4. Indemnification. Executive shall continue to have the benefits of any
and all agreements, policies and arrangements relating to the indemnification of
officers and directors of the Company and the provisions of the Company's
Certificate of Incorporation and By-laws (as they exist on the June 21, 2004
solely with respect to any claims made against Executive with respect to her
status or actions in any capacity by or on behalf of the Company prior to June
21, 2004.

      5. Non-Disparagement. Except as required by statute or legal process, at
all times following the execution of this Separation Agreement, Company and
Executive agree to refrain from intentionally disparaging each other to third
parties in any utterance, writing, or other form of communication and shall
communicate with reference to each other only in truthful, favorable and
respectful terms.

      6. Publicity. Executive shall not make any press releases pertaining to
her resignation or the transactions contemplated by the Separation Agreement or
this Second General Release of Claims. Subject at all times to compliance with
the law and generally accepted accounting principles, any proposed press release
pertaining to the Executive's resignation and/or the transactions contemplated
by this Second General Release of Claims and the Separation Agreement to be
released by Company shall be provided to Executive for her review, but not her
approval.

                                       10
<PAGE>

      7. Interpretation. In the event the either party breaches any provision of
this Second General Release of Claims, Executive and Company affirm that either
may institute an action to specifically enforce any term or terms of this Second
General Release of Claims. Should any provision of this Second General Release
of Claims be declared illegal or unenforceable by any court of competent
jurisdiction and cannot be modified to be enforceable, excluding the general
release language, such provision shall immediately become null and void, leaving
the remainder of this Second General Release of Claims in full force and effect.

      8. Non-admission of Wrongdoing. The parties agree that neither this Second
General Release of Claims nor the furnishing of the consideration for this
Second General Release of Claims shall be deemed or construed at anytime for any
purpose as an admission by either party of any liability or unlawful conduct of
any kind.

      9. Amendment. This Second General Release of Claims may not be modified,
altered or changed except upon express written agreement of both parties wherein
specific reference is made to this Second General Release of Claims.

      10. Governing Law; Venue. This Second General Release of Claims shall be
enforced, governed and interpreted by the laws of the State of Florida without
regard to Florida's conflict of laws principles. Any controversy or claim
arising out of or relating to this Second General Release of Claims, or the
breach thereof, shall be settled by arbitration in Palm Beach County, Florida
pursuant to the Commercial Arbitration Rules of the AAA.

      11. Entire Agreement. This Second General Release of Claims, together with
the Separation Agreement and the provisions of the Employment Agreement which
survive her termination of employment, sets forth the entire agreement between
the parties hereto, and fully supersedes any prior agreements or understandings
between the parties. Executive acknowledges that she has not relied on any
representations, promises, or agreements of any kind made to him in connection
with her decision to accept this Second General Release of Claims, except for
those set forth in this Second General Release of Claims and the Separation
Agreement.

            EXECUTIVE ACKNOWLEDGES THAT SHE HAS READ THIS Second General Release
of Claims IN ITS ENTIRETY; THAT SHE FULLY UNDERSTANDS ALL OF ITS TERMS AND THEIR
SIGNIFICANCE; THAT SHE HAS SIGNED IT VOLUNTARILY AND OF HER OWN FREE WILL; AND
THAT SHE INTENDS TO ABIDE BY ITS PROVISIONS WITHOUT EXCEPTION.

            HAVING ELECTED TO EXECUTE THIS Second General Release of Claims, TO
FULFILL THE PROMISES AND TO RECEIVE THE SUMS AND BENEFITS IN SET FORTH IN THIS
Second General Release of Claims, EXECUTIVE FREELY AND KNOWINGLY, AND AFTER DUE
CONSIDERATION, ENTERS INTO THIS Second General Release of Claims INTENDING TO
WAIVE, SETTLE AND RELEASE ALL CLAIMS SHE HAS OR MIGHT HAVE AGAINST COMPANY.

                                       11
<PAGE>

      IN WITNESS WHEREOF, the parties hereto knowingly and voluntarily executed
this Separation Agreement as of the date set forth below:

EXECUTIVE:                             COMPANY:

                                       BANKRATE, INC.

                                       By:
----------------------------------     ----------------------------------
ELISABETH DEMARSE
                                       Its:
                                       ----------------------------------
Date:
       ---------------------------     Date:
                                       ----------------------------------
<PAGE>

                                    EXHIBIT B

August 18, 2004

Bankrate, Inc.
c/o David G. Bates, Esq.
Gunster, Yoakley & Stewart, P.A.
777 South Flagler Drive
West Palm Beach, FL 33401

Re:   Separation and General Release

Dear David,

      On August 10, 2004, I executed an Separation and General Release.
Bankrate, Inc. advised me in writing, to consult with an attorney of my
choosing, prior to executing this Separation and General Release.

      More than seven (7) calendar days have elapsed since I executed the
above-mentioned Separation and General Release. I have at no time revoked my
acceptance or execution of that Separation and General Release and hereby
reaffirm my acceptance of that Separation and General Release. Therefore, in
accordance with the terms of our Separation and General Release, I hereby
request payment of the monies described in paragraph "2" of that Agreement.

                                       Very truly yours,

                                       /s/ Elisabeth DeMarse
                                       ------------------------------
                                       ELISABETH DEMARSE

                                       12

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