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                                                                    EXHIBIT 10.2

            AMENDED AND RESTATED AGREEMENT CONCERNING TERMINATION OF
                  EMPLOYMENT, SEVERANCE PAY AND RELATED MATTERS

         This Amended and Restated Agreement Concerning Termination of
Employment, Severance Pay and Related Matters (this "Agreement") is made as of
June 21, 2001 (the "Effective Date") by and between FairMarket, Inc., a Delaware
corporation with its headquarters located in Woburn, Massachusetts
("FairMarket"), and Scott Randall ("Executive"). In consideration of the mutual
covenants contained in this Agreement, FairMarket and Executive agree as
follows:

                  WHEREAS, FairMarket. and the Executive are parties to that
certain Agreement Concerning Termination of Employment, Severance Pay and
Related Matters, dated February 26, 2001 (the "Original Agreement") and

                  WHEREAS, the parties to the Original Agreement desire to amend
and restate such agreement to reflect certain amendments set forth herein; and

                  NOW, THEREFORE, in consideration of the mutual promises and
covenants set forth herein, the parties hereto hereby amend and restate the
Original Agreement in its entirety and agree as follows:

       1. RIGHT TO TERMINATE EMPLOYMENT AND TERMINATION OF EMPLOYMENT.
FairMarket and Executive agree that Executive is employed at-will and that
either party may terminate the employment relationship at any time, for any
reason or no reason, subject to the terms of this Agreement. The Executive
resigns from employment with FairMarket and its subsidiaries effective June 29,
2001 (the "Separation Date"). The Executive hereby agrees to perform his
responsibilities as an employee of the Company on a full-time basis and to
exercise his best efforts on behalf of FairMarket during the period up to and
including the Separation Date. Provided that the Executive does so, FairMarket
shall continue the Executive's employment, including his current base salary and
related benefits, during such period. Provided that the Executive complies with
his obligations under this Section 1, the Executive's resignation on the
Separation Date pursuant to this Section 1 shall be considered to be a
termination of employment pursuant to Section 2(c) for purposes of Section
2(e)(ii).

       2. TERMINATION AND TERMINATION BENEFITS. Executive's employment with
FairMarket and its subsidiaries shall terminate under the circumstances and with
the effect set forth in this Section 2.

         a. TERMINATION BY FAIRMARKET FOR CAUSE. Executive's employment with
FairMarket and its subsidiaries may be terminated for cause without liability on
the part of FairMarket and its subsidiaries effective immediately upon written
notice by FairMarket to Executive. Upon the giving of notice of termination of
Executive's employment pursuant to this Section, FairMarket and its subsidiaries
shall have no further obligation or liability to Executive, except as
specifically set forth in Section 2(e)(i) below. For purposes of this Agreement,
the following shall constitute "cause" for such termination:

              i. any material breach by Executive of any provision of this
         Agreement or of any other agreement between Executive and FairMarket,
         including without limitation any agreement referred to in this
         Agreement;

              ii. the commission of, conviction of or plea of nolo contendere by
         Executive to (A) a felony or (B) a misdemeanor involving moral
         turpitude, deceit, dishonesty or fraud;

              iii. any other materially dishonest act or statement of Executive
         or insubordination of Executive with respect to FairMarket or any of
         its affiliates; or

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              iv. any material misconduct, willful or deliberate non-performance
         or gross negligence in the performance (other than by reason of
         disability, as determined by FairMarket) by Executive of any of
         Executive's duties and responsibilities to FairMarket or any of its
         affiliates or otherwise with respect to FairMarket or any of its
         affiliates.

For purposes of this Agreement, no act, or failure to act, on Executive's part
shall be considered "willful" unless such act, or failure to act, was without
reasonable belief that Executive's action or omission was in the best interest
of FairMarket.

         b. TERMINATION BY EXECUTIVE. Executive's employment with FairMarket and
its subsidiaries may be terminated by Executive by written notice to the Chief
Executive Officer of FairMarket at least thirty (30) days prior to such
termination. After receiving written notice, FairMarket shall have the right in
its sole discretion to accelerate the timing of such termination by Executive,
and such acceleration shall not affect the treatment of such termination as a
termination by Executive pursuant to this Section 2(b). Upon the termination of
Executive's employment pursuant to this Section, FairMarket and its subsidiaries
shall have no further obligation or liability to Executive, except as
specifically set forth in Section 2(e)(i) below.

         c. TERMINATION BY FAIRMARKET WITHOUT CAUSE. FairMarket may terminate
Executive's employment with FairMarket and its subsidiaries without cause by
written notice by FairMarket to Executive. If such termination occurs before or
after a Change of Control Period (as defined in Section 2(f) below), then
Executive shall receive only the termination benefits set forth in Section 2(e)
below, subject in the case of Section 2(e)(ii) to compliance by Executive with
the provisions of that Section. If such termination occurs during a Change of
Control Period, then Executive shall receive only the termination benefits
specified in Sections 2(e)(i) and 2(f) below, subject in the case of Section
2(f) to compliance by Executive with the provisions of that Section.

         d. TERMINATION BY EXECUTIVE FOR GOOD REASON. Before and after a Change
of Control Period, subject to FairMarket's notice and opportunity to cure
pursuant to this Section 2(d), Executive may terminate Executive's employment
with FairMarket and its subsidiaries for Good Reason and receive only the
termination benefits specified in Section 2(e) below, subject in the case of
Section 2(e)(ii) to compliance by Executive with the provisions of that Section.
During a Change of Control Period, Executive may terminate Executive's
employment with FairMarket and its subsidiaries for Good Reason and receive only
the termination benefits specified in Sections 2(e)(i) and 2(f) below, subject
in the case of Section 2(f) to compliance by Executive with the provisions of
that Section.

         For purposes of this Agreement, "Good Reason" shall mean:

              i. a substantial adverse change or diminution in the substantive
         nature or scope of Executive's responsibilities, authority, powers,
         functions and duties; provided, however, that any failure of FairMarket
         to continue Executive in the position of director, officer or employee
         of any of its subsidiaries or other affiliates and any diminution of
         the business of FairMarket or any of its affiliates, including without
         limitation the sale or transfer of any or all of the assets of
         FairMarket or any of its affiliates, shall not constitute "Good
         Reason";

              ii. a reduction in Executive's annual base salary of more than
         15%, except for an across-the-board salary reduction similarly
         affecting all or substantially all employees, or any material failure
         of FairMarket to provide Executive with such other material employee
         benefits to which Executive is entitled, except for an across-the-board
         change in benefits affecting all or substantially all employees; or

              iii. the relocation of the offices at which Executive is
         principally employed to a location more than 50 miles from such offices
         without Executive's consent.

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If such termination occurs other than during a Change of Control Period by
reason of any of the events listed above in this Section 2(d), Executive shall
provide FairMarket with at least thirty (30) days notice and opportunity to cure
such events and shall not be entitled to benefits pursuant to Section 2(e)(ii)
below unless FairMarket fails to cure within such 30-day period.

         e.   CERTAIN TERMINATION BENEFITS.

              i. In the event of the termination of Executive's employment
pursuant to any provision of this Agreement, then no later than the next payroll
date following the date of termination of Executive's employment for any reason,
FairMarket shall pay Executive for all salary and vacation time accrued as of
such date of termination. Except as otherwise specifically provided in any
compensation and benefit programs in which Executive participated, all
compensation and benefits payable to Executive shall terminate on the date of
termination of Executive's employment.

              ii. Notwithstanding the foregoing, in the event of termination of
Executive's employment with FairMarket pursuant to Section 2(c) or (d) above
(other than during a Change of Control Period, in which case the provisions of
Section 2(f) shall apply), FairMarket shall provide to Executive the following
termination benefits, provided that Executive executes a General Release (as
defined in Section 2(g) below) and, if a revocation period is provided in the
General Release, does not revoke the same within the period stated in the
General Release, and subject to Section 3 below:

                  A. payment of a lump sum equal to one (1) year of Executive's
              base salary at the time of termination;

                  B. continuation of group health plan benefits to the extent
              authorized by and consistent with 29 U.S.C. Section 1161 ET SEQ.
              (commonly known as "COBRA"), with full premium payments for such
              benefits made by FairMarket for twelve (12) months after the
              Separation Date; and

                  C. vesting of the portion of all stock options granted to
              Executive by FairMarket (and not yet exercised, expired,
              surrendered or canceled) that is not vested as of the Separation
              Date as follows:

                           (I) with respect to the retention grant to Executive
              of January 17, 2001 of an option to acquire 50,000 shares (but not
              with respect to the performance grant to Executive of January 17,
              2001 of an option to acquire 50,000 shares) and with respect to
              the stock option granted to Executive as of April 3, 2001 of an
              option to acquire 100,000 shares, vesting of the entire portion of
              such stock options that is not vested as of Executive's
              termination date;

                           (II) with respect to the stock options granted to
              Executive on February 8, 2000, vesting of the potion of such
              options that is not vested as of Executive's termination date and
              that would otherwise have vested by the date that is the one (1)
              year anniversary of Executive's termination date; and

                           (III) extension of the period for exercise of all
              vested stock options to December 29, 2002.

                  Executive hereby acknowledges and understands that the
              amendment of the Original Agreement to provide an opportunity to
              exercise incentive stock options after September 29, 2001 will
              disqualify such stock options from treatment as incentive stock
              options under the Internal Revenue Code.

         f.   TERMINATION PURSUANT TO A CHANGE OF CONTROL.

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              i. If a Change of Control (as defined below) occurs and if during
the period beginning on the date such Change of Control occurs and ending on the
second anniversary thereof (a "Change of Control Period"), FairMarket terminates
Executive's employment pursuant to Section 2(c) or Executive terminates
Executive's employment with FairMarket pursuant to Section 2(d) and, in either
event, Executive executes a General Release and, if a revocation period is
provided in the General Release, does not revoke the same within the period
stated in the General Release, and subject to Section 3 below, then:

                  A. FairMarket shall pay Executive an amount equal to two (2)
              times the greater of (1) the sum of the base salary and the amount
              of any Bonus (as defined below) paid or payable to Executive
              during the twelve (12) months following the date on which such
              termination occurs or (2) the sum of (x) the base salary paid or
              payable to Executive during the twelve (12) months preceding the
              date on which such termination occurs plus (y) the average of the
              last four (4) quarterly Bonuses paid to or payable to Executive
              prior to the date on which such termination occurs multiplied by
              four (4), payable as provided below;

                  B. FairMarket shall provide Executive with continuation of
              group health plan benefits to the extent authorized by and
              consistent with 29 U.S.C. Section 1161 ET SEQ. (commonly known as
              "COBRA"), with payments for such benefits made by FairMarket in
              the same proportion as made during Executive's employment; and

                  C. any and all stock options granted Executive by FairMarket
              and not yet exercised, expired, surrendered or canceled shall
              automatically vest in full as of Executive's termination date.

Any decrease in Executive's Bonus and any decrease in Executive's base salary
that occur after the date a Change of Control occurs, other than an
across-the-board decrease affecting all or substantially all employees, shall be
disregarded for purposes of the calculation set forth in the preceding clause
(A). The Change of Control Payment shall be in lieu of any payments to or on
behalf of Executive that may otherwise be required pursuant to Sections
2(e)(ii). As used above, "Bonus" means any cash compensation paid by FairMarket
and its subsidiaries to Executive under any cash incentive or bonus compensation
plan.

              ii. "Change of Control" shall mean the occurrence of one or more
of the following events:

                  A. the stockholders of FairMarket approve an agreement for the
              sale of all or substantially all of the assets of FairMarket on a
              consolidated basis to an unrelated person or entity;

                  B. the stockholders of FairMarket approve a merger,
              reorganization or consolidation in which the outstanding shares of
              FairMarket's common stock are converted into or exchanged for a
              different kind of securities of the successor entity and the
              holders of FairMarket's outstanding voting power immediately prior
              to such transaction do not own a majority of the outstanding
              voting power of the successor entity immediately upon completion
              of such transaction; or

                  C. the sale of all of the outstanding common stock of
              FairMarket to an unrelated person or entity.

              iii. FairMarket shall promptly reimburse Executive for the amount
of all reasonable attorneys' fees and expenses incurred by Executive in
successfully obtaining or enforcing any right or benefit provided Executive
under this Section 2(f).

         g. GENERAL RELEASE. Executive's entitlement to benefits pursuant to
Section 2(e)(ii) or 2(f) is conditioned on Executive's execution of and the
effectiveness of a General Release. For purposes of this Agreement, a "General
Release" means a release of any and all claims against FairMarket and related
persons and entities: (i) in a form identical to or substantially the same as
the release attached as Exhibit A

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hereto, provided, however, that FairMarket reserves the right to change any
provision concerning notice and revocation to conform to legal requirements; or
(ii) any other form of general release acceptable to FairMarket.

     3.  REDUCTION OF PAYMENTS.

         a. Anything in this Agreement to the contrary notwithstanding, if any
compensation, payment or distribution by FairMarket to or for the benefit of
Executive, whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise (the "Severance Payments"), would be
subject to the excise tax imposed by Section 4999 of the Internal Revenue Code
of 1986, as amended (the "Code"), the following provisions shall apply:

                  i. If the Severance Payments, reduced by the sum of (A) the
         Excise Tax (as defined below) and (B) the total of the federal, state
         and local income and employment taxes payable by Executive on the
         amount of the Severance Payments which are in excess of the Threshold
         Amount (as defined below), are greater than or equal to the Threshold
         Amount, Executive shall be entitled to the full benefits payable under
         this Agreement.

                  ii. If the Threshold Amount is less than (A) the Severance
         Payments, but greater than (B) the Severance Payments reduced by the
         sum of (1) the Excise Tax and (2) the total of the federal, state and
         local income and employment taxes on the amount of the Severance
         Payments which are in excess of the Threshold Amount, then the benefits
         payable under this Agreement shall be reduced (but not below zero) to
         the extent necessary so that the maximum Severance Payments shall not
         exceed the Threshold Amount. To the extent that there is more than one
         method of reducing the payments to bring them within the Threshold
         Amount, Executive shall determine which method shall be followed;
         provided that if Executive fails to make such determination within
         forty-five (45) days after the delivery by FairMarket to Executive of
         written notice of the need for such reduction, FairMarket may determine
         the amount of such reduction in its sole discretion.

For the purposes of this Section 3: "Threshold Amount" shall mean three (3)
times Executive's "base amount" within the meaning of Section 280G(b)(3) of the
Code and the regulations promulgated thereunder less one dollar ($1.00); and
"Excise Tax" shall mean the excise tax imposed by Section 4999 of the Code, or
any interest or penalties incurred by Executive with respect to such excise tax.

         b. The determination as to which of the alternative provisions of
Section 3(a) shall apply to Executive shall be made by PricewaterhouseCoopers,
L.L.P. or any other nationally recognized accounting firm selected by FairMarket
(the "Accounting Firm"), which shall provide detailed supporting calculations
both to FairMarket and Executive within fifteen (15) business days of the date
of termination of Executive's employment, if applicable, or at such earlier time
as is reasonably requested by FairMarket or Executive. For purposes of
determining which of the alternative provisions of Section 3(a) shall apply,
Executive shall be deemed to pay federal income taxes at the highest marginal
rate of federal income taxation applicable to individuals for the calendar year
in which the determination is to be made, and state and local income taxes at
the highest marginal rates of individual taxation in the state and locality of
Executive's residence on the date of termination of Executive's employment, net
of the maximum reduction in federal income taxes which could be obtained from
deduction of such state and local taxes. Any determination by the Accounting
Firm shall be binding upon FairMarket and Executive.

     4. CONFIDENTIAL INFORMATION, NONCOMPETITION AND INTELLECTUAL PROPERTY. This
Agreement incorporates by reference the terms of the Employee Agreement
Regarding Inventions, Confidentiality and Non-Competition dated March 17, 1997
(the "Inventions, Confidentiality and Non-Competition Agreement") and
Executive's obligations contained therein apply both during and following the
termination of Executive's employment. Executive further agrees to the
following, provided that the following is intended to be construed to be
consistent with the Inventions, Confidentiality and Non-Competition Agreement
and shall

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not be construed to create greater substantive restrictions on Executive beyond
those to which Executive is subject pursuant to the Inventions, Confidentiality
and Non-Competition Agreement:

         a. CONFIDENTIAL INFORMATION. As used in this Agreement, "Confidential
Information" means information belonging to FairMarket and its affiliates which
is of value to FairMarket in the course of conducting its business and the
disclosure of which could result in a competitive or other disadvantage to
FairMarket. Confidential Information includes, without limitation, financial
information, reports, and forecasts; inventions, improvements and other
intellectual property; trade secrets; know-how; designs, processes or formulae;
software; market or sales information or plans; customer lists; and business
plans, prospects and opportunities (such as possible acquisitions or
dispositions of businesses or facilities) which have been discussed or
considered by the management of FairMarket. Confidential Information includes
information developed by Executive in the course of Executive's employment by
FairMarket, as well as other information to which Executive may have access in
connection with Executive's employment. Confidential Information also includes
the confidential information of others with which FairMarket or any of its
affiliates has a business relationship. Notwithstanding the foregoing,
Confidential Information does not include information in the public domain,
unless due to breach of Executive's duties under this Section 4.

         b. CONFIDENTIALITY. Executive understands and agrees that Executive's
employment creates a relationship of confidence and trust between Executive and
FairMarket with respect to all Confidential Information. At all times, both
during Executive's employment with FairMarket and after its termination,
Executive will keep in confidence and trust all such Confidential Information,
and will not use or disclose any such Confidential Information without the prior
written consent of FairMarket, except as necessary in the ordinary course of
performing Executive's duties to FairMarket.

         c. DOCUMENTS, RECORDS, ETC. All documents, records, apparatus,
equipment and other physical property, whether or not pertaining to Confidential
Information, which are furnished to Executive by FairMarket or any of its
affiliates or are produced by Executive in connection with Executive's
employment will be and remain the sole property of FairMarket. Executive will
return to FairMarket all such materials and property as and when requested by
FairMarket. In any event, Executive will return all such materials and property
immediately upon termination of Executive's employment for any reason. Executive
will not retain with Executive any such material or property or any copies
thereof after such termination.

         d. NONCOMPETITION AND NONSOLICITATION. During the term of Executive's
employment with FairMarket and for one (1) year thereafter, Executive: (i) will
not, directly or indirectly, whether as owner, partner, shareholder, consultant,
agent, employee, co-venturer or otherwise, engage, participate or invest in any
Competing Business (as defined below); (ii) will refrain from directly or
indirectly employing, attempting to employ, recruiting or otherwise soliciting,
inducing or influencing any FairMarket employee or FairMarket consultant to
leave their employment or cease their consulting relationship with FairMarket or
any of its affiliates (other than terminations of employment of subordinate
employees and terminations of consulting relationships undertaken in the
ordinary course of Executive's employment with FairMarket); and (iii) will
refrain from soliciting or encouraging any customer or supplier to terminate or
otherwise modify adversely its business relationship with FairMarket or any of
its affiliates. Executive understands that the restrictions set forth in this
Section 4(d) are intended to protect FairMarket's interest in its Confidential
Information and established employee, consultant, customer and supplier
relationships and goodwill, and agrees that such restrictions are reasonable and
appropriate for this purpose. For purposes of this Agreement, the term
"Competing Business" shall mean a business conducted anywhere in the world which
is competitive with any business which FairMarket or any of its affiliates
conducts or proposes to conduct at any time during the employment of Executive.
Executive acknowledges that the business of FairMarket and its affiliates is
international in scope. Notwithstanding the foregoing, Executive may own up to
one percent (1%) of the outstanding stock of a publicly held corporation which
constitutes or is affiliated with a Competing Business.

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         e. INJUNCTION. Executive agrees that it would be difficult to measure
any damages caused to FairMarket which might result from any breach by Executive
of the promises set forth in this Section 4 or in the Confidentiality,
Inventions and Non-Competition Agreement, and that in any event money damages
would be an inadequate remedy for any such breach. Accordingly, Executive agrees
that if Executive breaches, or proposes to breach, any portion of this Agreement
or the Confidentiality, Inventions and Non-Competition Agreement, FairMarket
shall be entitled, in addition to all other remedies that it may have, to an
injunction or other appropriate equitable relief to restrain any such breach
without showing or proving any actual damage to FairMarket.

     5. NONDISPARAGEMENT. Executive agrees not to make any statements that
disparage or otherwise criticize FairMarket or any of its affiliates, products,
services, employees, officers or directors following the termination of
employment. Notwithstanding the foregoing, statements made in the course of
sworn testimony in legal proceedings or other statements required by law shall
not be subject to this Section 5.

     6. LITIGATION AND REGULATORY COOPERATION. During and after Executive's
employment, Executive shall cooperate fully with FairMarket and its affiliates
in the defense or prosecution of any claims or actions now in existence or which
may be brought in the future against or on behalf of FairMarket or any of its
affiliates which relate to events or occurrences that transpired while Executive
was employed by FairMarket. Executive's full cooperation in connection with such
claims or actions shall include, but not be limited to, being available to meet
with counsel to prepare for discovery or trial, to act as a witness on behalf of
FairMarket, and if called to testify, to testify truthfully and in good faith
about events that happened during Executive's employment. During and after
Executive's employment, Executive also shall cooperate fully with FairMarket in
connection with any investigation or review of any federal, state or local
regulatory authority as any such investigation or review relates to events or
occurrences that transpired while Executive was employed by FairMarket.
FairMarket shall make reasonable efforts to schedule any cooperation required
pursuant to this Section 6 at such times that will not unreasonably interfere
with Executive's search for other employment or performance of other employment
services. FairMarket shall (a) reimburse Executive for reasonable expenses
incurred by Executive in connection with Executive's performance of obligations
pursuant to this Section 6 based on the standards and procedures applicable to
expense reimbursement for FairMarket's employees and (b) compensate Executive
for any required cooperation pursuant to this Section 6 by paying Executive for
Executive's time at an hourly rate of 125% of Executive's final annual base
salary rate when last employed by FairMarket divided by 2,080, provided that
FairMarket shall not be obligated to pay for any of Executive's time spent
testifying or that otherwise could have been required to be expended pursuant to
a subpoena.

     7. WITHHOLDING. All payments made by FairMarket under this Agreement shall
be reduced by any tax or other amounts that FairMarket reasonably determines to
be required to be withheld under applicable law.

     8. CONSENT TO JURISDICTION. To the extent that any court action is
permitted consistent with or to enforce this Agreement, the parties hereby
consent to the jurisdiction of the Superior Court of the Commonwealth of
Massachusetts and the United States District Court for the District of
Massachusetts. Accordingly, with respect to any such court action, Executive (a)
submits to the personal jurisdiction of such courts, (b) consents to service of
process and (c) waives any other requirement (whether imposed by statute, rule
of court, or otherwise) with respect to personal jurisdiction or service of
process.

     9. INTEGRATION. This Agreement and the Inventions, Confidentiality and
Non-Competition Agreement, which is incorporated by reference herein, constitute
the entire agreement between the parties with respect to the subject matter
hereof and supersede all prior agreements between the parties with respect to
such or any related subject matter.

     10. ASSIGNMENT; SUCCESSORS AND ASSIGNS, ETC. Neither FairMarket nor
Executive may make any assignment of this Agreement or any interest herein, by
operation of law or otherwise, without the prior written consent of the other
party; provided that FairMarket may assign its rights under this Agreement

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without the consent of Executive in the event that FairMarket shall effect a
reorganization, consolidate with or merge into any other corporation,
partnership, organization or other entity, or transfer all or substantially all
of its properties or assets to any other corporation, partnership, organization
or other entity. This Agreement shall inure to the benefit of and be binding
upon FairMarket and Executive, their respective successors, executors,
administrators, heirs and permitted assigns.

     11. ENFORCEABILITY. If any portion or provision of this Agreement
(including, without limitation, any portion or provision of any section of this
Agreement) shall to any extent be declared illegal or unenforceable by a court
of competent jurisdiction, then the remainder of this Agreement, or the
application of such portion or provision in circumstances other than those as to
which it is so declared illegal or unenforceable, shall not be affected thereby,
and each portion and provision of this Agreement shall be valid and enforceable
to the fullest extent permitted by law.

     12. ARBITRATION OF DISPUTES. Any controversy or claim arising out of or
relating to this Agreement or the breach thereof or otherwise arising out of
Executive's employment or the termination of that employment during a Change of
Control Period (including, without limitation, any claims of unlawful employment
discrimination whether based on age or otherwise) shall, to the fullest extent
permitted by law, be settled by arbitration in any forum and form agreed upon by
the parties or, in the absence of such an agreement, under the auspices of the
American Arbitration Association ("AAA") in Boston, Massachusetts in accordance
with the Employment Dispute Resolution Rules of the AAA, including, but not
limited to, the rules and procedures applicable to the selection of arbitrators.
In the event that any person or entity other than Executive or FairMarket may be
a party with regard to any such controversy or claim, such controversy or claim
shall be submitted to arbitration subject to such other person or entity's
agreement. Judgment upon the award rendered by the arbitrator may be entered in
any court having jurisdiction thereof. This Section 12 shall be specifically
enforceable. Notwithstanding the foregoing, this Section 12 shall not preclude
either party from pursuing a court action for the sole purpose of obtaining a
temporary restraining order or a preliminary injunction in circumstances in
which such relief is appropriate; provided that any other relief shall be
pursued through an arbitration proceeding pursuant to this Section 12.

     13. WAIVER. No waiver of any provision hereof shall be effective unless
made in writing and signed by the waiving party. The failure of any party to
require the performance of any term or obligation of this Agreement, or the
waiver by any party of any breach of this Agreement, shall not prevent any
subsequent enforcement of such term or obligation or be deemed a waiver of any
subsequent breach.

     14. NOTICES. Any notices, requests, demands and other communications
provided for by this Agreement shall be sufficient if in writing and delivered
in person or sent by a nationally recognized overnight mail service or by
registered or certified mail, postage prepaid, return receipt requested, to
Executive at the last address Executive has filed in writing with FairMarket or,
in the case of FairMarket, at its headquarters office, attention of the Chief
Executive Officer, and shall be effective on the earliest of the date of actual
receipt, deposit at the address for delivery or postal notice of the
availability of the communication.

     15. AMENDMENT. This Agreement may be amended or modified only by a written
instrument signed by Executive and by a duly authorized representative of
FairMarket.

     16. GOVERNING LAW. This is a Massachusetts contract and shall be construed
under and be governed in all respects by the laws of the Commonwealth of
Massachusetts, without giving effect to the conflict of laws principles of such
Commonwealth.

     17. COUNTERPARTS. This Agreement may be executed in any number of
counterparts, each of which when so executed and delivered shall be taken to be
an original; but such counterparts shall together constitute one and the same
document.

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     IN WITNESS WHEREOF, this Agreement has been executed as a sealed instrument
by FairMarket, by its duly authorized officer, and by Executive, as of the
Effective Date.

FAIRMARKET, INC.

By: /s/ Janet Smith
    -------------------------------------------------
Name: Janet Smith
      -----------------------------------------------
Title: Chief Financial Officer
       ----------------------------------------------

/s/ Scott Randall  6/21/01
----------------------------------------------
Scott Randall

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                                   Appendix A
                            GENERAL RELEASE OF CLAIMS

         In exchange for and as a condition to those promises of FairMarket,
Inc. ("FairMarket") in the Agreement Concerning Termination of Employment,
Severance Pay and Related Matters between FairMarket and me (the "Agreement")
that are subject to my agreement to a General Release, I agree as follows:

         I hereby irrevocably and unconditionally release, acquit and forever
discharge FairMarket, its predecessors, successors, affiliates, other related
entities and assigns, and the directors, officers, employees, shareholders and
representatives of any of the foregoing, and any persons acting on behalf or
through any of the foregoing (any and all of whom or which are hereinafter
referred to as the "Company"), from any and all charges, complaints, claims,
liabilities, obligations, promises, agreements, controversies, damages, actions,
causes of action, suits, rights, demands, costs, losses, debts and expenses
(including attorneys' fees and costs actually incurred), of any nature
whatsoever, known or unknown (collectively, "Claims"), that I now have, own or
hold, or claim to have, own or hold, or that I at any time had, owned or held,
or claimed to have had, owned or held against the Company. This General Release
of Claims includes, without implication of limitation, the complete release of
all Claims of breach of express or implied contract, including, without
limitation, all Claims arising from any employment offer letter from the
Company; all Claims of wrongful termination of employment whether in contract or
tort; all Claims based on actions or omissions leading to this General Release
of Claims; all Claims of intentional, reckless or negligent infliction of
emotional distress; all Claims of breach of any express or implied covenant of
employment, including the covenant of good faith and fair dealing; all Claims of
interference with contractual or advantageous relations, whether those relations
are prospective or existing; all Claims of deceit or misrepresentation; all
Claims of discrimination under state or federal law, including, without
implication of limitation, Title VII of the Civil Rights Act of 1964, 42 U.S.C.
Section 2000e ET SEQ., as amended, the Age Discrimination in Employment Act of
1967, 29 U.S.C. Section 621 ET SEQ., as amended, and Chapter 151B of the
Massachusetts General Laws; all Claims of defamation or damage to reputation;
all Claims for reinstatement; all Claims for punitive or emotional distress
damages; all Claims for wages, bonuses, severance, back or front pay or other
forms of compensation; and all Claims for attorneys' fees and costs. This
General Release of Claims shall not be construed to include a release of Claims
that arise from the Company's obligations under the Agreement.

         I acknowledge that I have been advised to consult with an attorney
before signing this General Release.

         Notwithstanding the foregoing, I agree that nothing in this General
Release of Claims is intended to affect any of my obligations that continue
after the termination of my employment contained in the Agreement or in any
written agreement entered into between FairMarket and myself with respect to
confidentiality, ownership of inventions, non-competition and/or
non-solicitation.

         I represent and agree that I have carefully read and fully understand
all of the provisions of this General Release and that I am voluntarily agreeing
to such provisions.

Name: /s/ Scott Randall                      Date: 6/21/01
      --------------------------                   -----------------------------

                                       10<Page>

                                                                    EXHIBIT 10.3

                                  May 14, 2001

Ms. Eileen M. Rudden
32 Arlington Street
Cambridge, MA  02140

Dear Eileen:

         This letter agreement (the "Agreement") confirms the agreement that we
have reached regarding your resignation from your employment and all offices you
hold with FairMarket Inc. (the "Company") and its related and affiliated
entities.

         This Agreement details the offer and, if signed, will confirm the
agreement that we have reached regarding your separation from employment with
the Company. The purpose of this Agreement is to establish an amicable
arrangement for ending your employment relationship, to release the Company from
any claims that you may have against it or any related individuals, and to
permit you to receive your separation pay and related benefits.

         If you agree to this Agreement, you acknowledge that you are entering
into the Agreement voluntarily. It is customary in employment separation
agreements that provide for severance pay for the departing employee to release
the employer from any possible claim, even if the employer believes, as is the
case here, that no such claims exist. You understand that you are giving up your
right to bring any and all possible legal claims against the Company. Neither
the Company nor you want your employment relationship to end with a legal
dispute. By entering into this Agreement, you understand that the Company is not
admitting in any way that it violated any legal obligation that it owed to you.
To the contrary, the Company's willingness to enter into this Agreement
demonstrates that it is continuing to deal with you fairly and in good faith.

<Page>
Ms. Eileen M. Rudden
May 14, 2001
Page 2

         With those understandings and in exchange for the promises set forth
below, you and the Company agree as follows:

         1.       SEPARATION.

                  You hereby confirm your resignation from your offices of
President, Chief Executive Officer and Director of the Company as of Monday, May
14, 2001 (the "Separation Date"). You also hereby confirm your separation from
the Company as an employee effective as of the Separation Date and your
resignation from any and all other employment and offices that you may hold with
the Company as of the Separation Date. You also agree to withdraw as a candidate
for election as a Class I Director which was to be submitted for a vote of
stockholders at the Company's Annual Meeting of Stockholders on May 23, 2001.
Said resignations and withdrawal are hereby accepted by the Company (your
separation as an employee and your resignation from your offices shall be
referred to hereinafter as the "Separation"). The Company will pay you all base
salary and all accrued but unused vacation time through your Separation Date.
This Agreement will automatically terminate and be of no further force or effect
should you not resign from your offices of the Company on the Separation Date.

                  You acknowledge your ineligibility for rehire. You agree that
you will not knowingly apply for or otherwise seek or accept employment or serve
or seek to serve as a consultant or independent contractor at any time with the
Company or any of the Company's affiliated or related entities. You acknowledge
and agree that your forbearance to seek future employment as just stated is
purely contractual and in no way involuntary, discriminatory or retaliatory.

         2.       SEVERANCE AND BENEFITS. You acknowledge that the Agreement
Concerning Termination of Employment, Severance Pay and Related Matters between
you and the Company, dated February 26, 2001 (the "Employment Agreement") shall
be of no further force and effect, and the vesting and exercise provisions of
the Incentive Stock Option Certificates under the FairMarket, Inc. 2000 Stock
Option and Incentive Plan, dated September 11, 2000 and January 17, 2001 (the
"Stock Option Certificates"), shall be modified as set forth in Paragraph 2(b)
below. The following terms are hereby instituted to provide terms relatively
comparable to those that would be available under the Employment Agreement and
Stock Option Certificates as if you had been terminated without cause under the
Employment Agreement.

                  a.       SEVERANCE PAYMENT. The Company shall pay $200,000 to
you in one lump sum payment as a severance payment.

                  b.       STOCK OPTIONS. The vesting of your existing stock
options to purchase the Company's common stock shall accelerate and become
exercisable upon the Separation Date as

<Page>
Ms. Eileen M. Rudden
May 14, 2001
Page 3

follows: (a) 337,500 shares of the 900,000 shares granted on September 11, 2000;
(b) no shares of the 50,000 shares granted on January 17, 2001 and (c) 112,500
shares of the 225,500 shares granted on January 17, 2001. You shall have until
November 14, 2002 to exercise these stock options. You hereby acknowledge and
understand that the exercise of these stock options after August 14, 2001 will
disqualify these stock options for treatment as incentive stock options under
the Internal Revenue Code.

         c.       BENEFITS CONTINUATION. For twelve (12) months from the
Separation Date, you may continue to participate in the group health and
dental insurance plans of the Company in which, and to the same extent as,
you are currently participating, with the full cost of the regular premium
for such benefit paid by the Company; PROVIDED, that nothing in this
Paragraph shall be construed to affect you or your beneficiaries' rights
thereafter to receive continuation coverage for an additional six-month
period thereafter to the extent authorized by and consistent with 29 U.S.C.
Section 1161, ET SEQ. (commonly known as "COBRA") and applicable group health
and dental plan terms, entirely at your own cost after your right to benefit
continuation ends under this Paragraph. Notwithstanding the foregoing, your
right to such participation shall cease if you become ineligible for
continuation coverage under COBRA. You shall promptly notify the Company if
you become eligible for coverage under other group health or dental insurance
plans during the twelve (12) month period following the Separation Date.

                  d.       OTHER BENEFITS OR COMPENSATION. Except as expressly
provided above, your eligibility to participate in any of the Company's
respective employee benefit plans and programs ceases on or after the Separation
Date in accordance with the terms and conditions of each of those benefit plans
and programs, and your rights to accrued benefits, if any, under any such
employee benefit plans and programs as of the Separation Date are governed by
the terms and conditions of each of those employee benefit plans and programs
which are incorporated herein by reference. You acknowledge that you received
your base salary and all other compensation due to you through the Separation
Date.

         3.       GENERAL RELEASE OF CLAIMS.

                  (a)      GENERAL RELEASE OF CLAIMS BY YOU. In consideration of
the compensation and benefits provided in Paragraph 2 above, you voluntarily and
irrevocably release and discharge the Company, its related or affiliated
entities, and its respective predecessors, successors, and assigns, and the
current and former officers, directors, shareholders, employees, and agents of
each of the foregoing (any and all of which are referred to as "Releasees")
generally from all charges, complaints, claims, promises, agreements, causes of
action, damages, and debts, known or unknown ("Claims") of any name and nature,
including, without limitation, those that relate in any manner to your
employment with or termination of employment from the Company, which you have,
claim to have, ever had, or ever claimed to have had against any of

<Page>
Ms. Eileen M. Rudden
May 14, 2001
Page 4

the Releasees through the date on which you execute this Agreement. This general
release of Claims includes, without implication of limitation, a release of all
Claims for or related to: your employment, the compensation provided to you by
the Company; your resignations as described in Paragraph 1; wrongful or
constructive discharge; breach of contract; breach of any implied covenant of
good faith and fair dealing; tortious interference with advantageous relations;
intentional or negligent misrepresentation, fraud or deceit; infliction of
emotional distress, and unlawful discrimination under the common law or any
statute (including, without implication of limitation, the Employee Retirement
Income Security Act, Title VII of the Civil Rights Act of 1964, the Americans
with Disabilities Act, the Age Discrimination in Employment Act or Mass. G.L.
c.151B). You also waive any Claim for reinstatement, severance (except as
expressly provided in this Agreement), incentive or retention pay, attorney's
fees, or costs, relating to the above waived Claims; PROVIDED, however, that
nothing in this general release shall be construed to bar or limit your on-going
rights, if any, to indemnification subject to and in accordance with the terms
of the Amended and Restated By-Laws of the Company or as otherwise might exist
under applicable law, or to enforce your rights under this Agreement.

                  (b)      GENERAL RELEASE OF CLAIMS BY THE COMPANY. The Company
hereby irrevocably and unconditionally releases, acquits and forever discharges
you from any and all Claims of any name and nature that the Company now has,
owns, or holds or claims to have, own, or hold or that the Company at any time
had, owned, or held, or claimed to have had, owned, or held against you. This
general release of Claims includes, without implication of limitation, a release
of all Claims related to your performance of your responsibilities as an
employee of the Company. Notwithstanding the foregoing, the Company does not
release you from any civil Claims based on conduct that would constitute a
criminal offense; PROVIDED, however, that I represent that I have no knowledge
of any basis for the Company to assert any such Claim against you. This general
release of Claims shall not be construed to affect the Company's right to
enforce this Agreement.

         4.       CONFIDENTIAL INFORMATION.

                  You shall at all times keep in confidence and trust all
Confidential Information and shall not reveal any Confidential Information.
"Confidential Information" means information concerning the Company that you are
aware has been treated as confidential by the Company and that is of value to
the Company. Confidential Information includes, without implication of
limitation, trade secrets, confidential personnel information, confidential
revenue sales, or earnings information, confidential business relationships, and
confidential business plans and strategies and development and marketing plans.

         5.       RETURN OF PROPERTY.

<Page>
Ms. Eileen M. Rudden
May 14, 2001
Page 5

                  All documents, records, material and all copies of any of the
foregoing pertaining to Confidential Information, and all software, equipment,
and other supplies, whether or not pertaining to confidential information, that
have come into your possession or been produced by you in connection with your
employment ("Property") have been and remain the sole property of the Company.
You hereby confirm that you have returned all Property to the Company.

         6.       NONDISPARAGEMENT.

                  You agree not to take any action or make any statement,
written or oral, which disparages the Company, its respective officers, or
management and business practices, or which disrupts or impairs the Company's
normal operations. The Company shall instruct its respective directors and
officers who receive a copy of this Agreement not to take any action or make any
statement, written or oral, which disparages or criticizes you or your
management and business practices. The provisions of this Paragraph 6 shall not
apply to any truthful statement required to be made by you or the Company, as
the case may be, in any legal proceeding, required filing under the securities
laws, or pursuant to any governmental or regulatory investigation.

         7.       ADDITIONAL REPRESENTATIONS, WARRANTIES AND COVENANTS.

                  As a material inducement to the Company to enter into this
Agreement, you represent, warrant and covenant that: (a) you have not assigned
to any third party any claim released by this Agreement; and (b) you have not
heretofore filed with any agency or court any claim released by this Agreement.

         8.       FURTHER ASSURANCES.

                  Upon the terms and subject to the conditions herein provided,
each of the signatories hereto agrees to use its reasonable efforts to take, or
cause to be taken, all action and to do, or cause to be done, all things
necessary, proper or advisable under applicable laws and regulations to
consummate and make effective the transactions contemplated by this Agreement.

         9.       EXCLUSIVITY.

                  This Agreement sets forth all the consideration to which you
are entitled by reason of the Separation, and you shall not be entitled to or
eligible for any payments or benefits under any other severance, equity, bonus,
retention or incentive policy, arrangement or plan of the Company.

         10.      TAX MATTERS.

                  The Company shall undertake to make deductions, withholdings
and tax reports with respect to payments and benefits under this Agreement to
the extent that it reasonably and in good faith believes that it is required to
make such deductions, withholdings and tax reports. Payments under this
Agreement shall be in amounts net of any such deductions or withholdings.
Nothing in this Agreement shall be construed to require the Company to make any
payments to

<Page>
Ms. Eileen M. Rudden
May 14, 2001
Page 6

compensate you for any adverse tax effect associated with any payments or
benefits or for any deduction or withholding from any payment or benefit.

<Page>
Ms. Eileen M. Rudden
May 14, 2001
Page 7

         11.      CONSENT TO JURISDICTION.

                  To the extent that any court action is permitted consistent
with or to enforce this Agreement, the signatories hereby consent to the
jurisdiction of the state and federal courts in Massachusetts. Accordingly, with
respect to any such court action, the parties hereto (a) submit to the personal
jurisdiction of such courts; (b) consent to service of process; and (c) waive
any other requirement (whether imposed by statute, rule of court, or otherwise)
with respect to personal jurisdiction or service of process.

         12.      NOTICES, ACKNOWLEDGMENTS AND OTHER TERMS.

                  a.       This Agreement is a legally binding document.
Provided that you do not revoke this Agreement in accordance with this Paragraph
12, your signature will commit you to the terms of this Agreement. You
acknowledge that you have been advised to discuss all aspects of this Agreement
with your attorney, that you have carefully read and fully understand all of the
provisions of this Agreement and that you are voluntarily entering into this
Agreement.

                  b.       You acknowledge and agree that the Company's promises
in this Agreement constitute consideration in addition to anything of value to
which you are otherwise entitled by reason of your separation from employment.

                  c.       You acknowledge that you have been given the
opportunity, if you so desire, to consider this Agreement for twenty-one (21)
days before executing it. If not signed by you and returned to the Chief
Financial Officer of the Company so that it is received by close of business on
the twenty-second (22nd) day after your receipt of the Agreement, this Agreement
will not be valid. In addition, if you breach any of the conditions of the
Agreement within the twenty-one (21) day period prior to execution of this
Agreement, the offer of this Agreement will be withdrawn and your execution of
the Agreement will not be valid. In the event that you execute and return this
Agreement within twenty-one (21) days or less of the date of its delivery to
you, you acknowledge that such decision was entirely voluntary and that you had
the opportunity to consider this letter agreement for the entire twenty-one (21)
day period. The Company acknowledges that for a period of seven (7) days from
the date of the execution of this Agreement, you shall retain the right to
revoke this Agreement by written notice delivered to the Chief Financial Officer
of the Company before the end of such period, and that this Agreement shall not
become effective or enforceable until the expiration of such revocation period
(the "Effective Date").

                  d.       By signing this Agreement, you acknowledge that you
are doing so voluntarily and knowingly, fully intending to be bound by this
Agreement. You also acknowledge that you are not relying on any representations
by the Company or any other representative of the Company concerning the meaning
of any aspect of this Agreement. You understand that this Agreement shall not in
any way be construed as an admission by the Company of any liability or any act
of wrongdoing whatsoever by the

<Page>
Ms. Eileen M. Rudden
May 14, 2001
Page 8

Company against you and that the Company specifically disclaims any liability
or wrongdoing whatsoever against you on the part of itself and its respective
officers, directors, shareholders, employees and agents. You understand that
if you do not enter into this Agreement and bring any claims against the
Company, the Company will dispute the merits of those claims and contend that
it acted lawfully and for good business reasons with respect to you.

                  e.       In the event of any dispute, this Agreement will be
construed as a whole, will be interpreted in accordance with its fair meaning,
and will not be construed strictly for or against either you or the Company.

                  f.       The laws of the Commonwealth of Massachusetts will
govern any dispute about this Agreement, including any interpretation or
enforcement of this Agreement, without regard to its conflicts of laws
principles.

                  g.       In the event that any provision or portion of a
provision of this Agreement shall be determined to be illegal, invalid or
unenforceable, the remainder of this Agreement shall be enforced to the fullest
extent possible and the illegal, invalid or unenforceable provision or portion
of a provision will be amended by a court of competent jurisdiction to reflect
the signatories' intent if possible. If such amendment is not possible, the
illegal, invalid or unenforceable provision or portion of a provision will be
severed from the remainder of this Agreement and the remainder of this Agreement
shall be enforced to the fullest extent possible as if such illegal, invalid or
unenforceable provision or portion of a provision was not included.

                  h.       This Agreement may be modified only by a written
agreement signed by an authorized representative of the Company and all of the
other parties hereto.

                  i.       This Agreement constitutes the entire agreement
between the signatories hereof and supersedes all prior agreements between the
parties. Notwithstanding the foregoing, the parties intend that all provisions
of the Agreement Regarding Inventions, Confidentiality and Non-Competition,
dated September 11, 2000, remain in full force and effect and that the parties
shall retain their rights and obligations under the FairMarket, Inc. 2000 Stock
Option and Incentive Plan and the Stock Option Certificates as modified in
Paragraph 2 of this Agreement.

                  j.       This Agreement shall be binding upon each of the
signatories and upon their respective heirs, administrators, representatives,
executors, successors and assigns, and shall inure to the benefit of each party
and to their heirs, administrators, representatives, executors, successors, and
assigns.

                  k.       You will not disclose the fact or terms of this
Agreement to anyone except to your counsel, your financial advisors, and members
of your immediate family until the Company makes public disclosure of the fact
and terms of this Agreement.

                  l.       From and after the Separation Date, the Company
acknowledges that you will no longer be subject to the Company's insider trading
policy. However, you will continue to

<Page>
Ms. Eileen M. Rudden
May 14, 2001
Page 9

be subject to insider trading liability if you trade in the Company's stock
while you are in the possession of material nonpublic information concerning the
Company, regardless of when the trade occurs. Therefore, you should not trade in
the Company's stock at any time that you are in possession of material nonpublic
information regarding the Company.

                  m.       As a former director and officer of the Company, you
are subject to short-swing profit liability under Section 16(b) of the
Securities Exchange Act of 1934, and you are required to file Forms 4 and 5
under Section 16(a) of that Act, for a period of six months beginning on the
date of the last "opposite way" transaction in the Company's stock that was not
exempt from Section 16(b) and that was effected while you were a director or
officer of the Company.

                  n.       This Agreement may be executed in counterparts, each
of which shall be deemed an original and all of which together shall constitute
one and the same instrument.

                            [SIGNATURE PAGES FOLLOW]

<Page>

         If you agree to these terms, please sign and date below and return this
Agreement to the Chief Financial Officer of the Company. You are advised to
consult with an attorney before signing this Agreement.

                                        Sincerely,

                                        FAIRMARKET, INC.

                                        By: /s/ Janet Smith
                                            ------------------------------------
                                            Name: Janet Smith
                                            Title: CFO

Accepted and agreed to:

/s/ Eileen M. Rudden                    May 14, 2001
-------------------------------         -----------------------------------
Eileen M. Rudden                                 Date

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