Document:

Exhibit 10.2  

PROMOTIONS AGREEMENT  

        This Promotions Agreement (this "Agreement") is entered into as of April 10, 2002 (the
"Effective Date") by and between eBay Inc., a Delaware corporation ("eBay"), with its principal
place of business located at 2145 Hamilton Avenue, San Jose, CA 95125, and FairMarket, Inc., a Delaware corporation ("FairMarket"), with its
principal place of business located at 500 Unicorn Park Drive, Woburn, MA 01801 (the "parties"). 

RECITALS  

        WHEREAS, FairMarket develops, hosts and maintains private label commerce web sites for third parties that enable
such third parties to allow their consumers/franchisees based in the United States to participate in customized loyalty programs featuring auctions or other purchase methods utilizing
non-monetary reward units (e.g., points) as the currency rather than dollars as further described in the FairMarket Points Promotion Site Product Features document, a copy of the current
version of which has been delivered to and acknowledged by eBay in writing (the "Features Document") and is hereby incorporated by reference (the
"FairMarket Service"). 

        WHEREAS, eBay maintains [*] for the purpose of promoting Loyalty Programs (defined below) and engages in
Advertising activities (the "eBay Services"). 

	[*]
	indicates
material for which confidential treatment has been requested under Rule 24b-2 under the Securities Exchange Act of 1934. 

        WHEREAS, eBay and FairMarket desire to enter into this Agreement to provide for the marketing by eBay to Customers (defined below) of
Loyalty Programs involving the FairMarket Service and are simultaneously entering into a Master Promotion Site Agreement (the "Master Promotion Site
Agreement") to set forth certain of the terms on which FairMarket would, on a Customer-by-Customer basis, develop, host and maintain customized
promotion site(s) on behalf of eBay for Customers, pursuant to separate written addenda to the Master Promotion Site Agreement between eBay and FairMarket which will define the services and specify
the details for each such promotion spite (each, a "Promotion Site Addendum"), which Promotion Sites will be promoted by eBay. 

        NOW THEREFORE, for good and valuable consideration, the receipt and sufficiency of which is hereby acknowledged, the parties agree as
follows: 

1.    DEFINITIONS  

        Advertising:    the advertising and sponsorship activities, including but not limited to online advertising (banners/widgets) or
off-line advertising (TV or print), undertaken by eBay or a Customer pursuant to a written agreement between eBay and such Customer, excluding promotional activities of the nature of the
features described in the Features Document. 

        Promotion Site(s):    the websites developed, hosted and maintained by FairMarket at the request of eBay for a Customer pursuant
to the Master Promotion Site Agreement; each such site will be composed of the FairMarket Service features and any additional specifications set forth in the applicable Promotion Site Addendum. 

        FairMarket Network:    the network of private label Internet sites developed, hosted and maintained by FairMarket on
FairMarket's operating platform in the United States and directed primarily at residents of the United States. 

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        Customers:    third parties who contract with eBay or may contract with eBay for the creation or provision of a Loyalty Program,
excluding any third party that is or was a party to any written contract with FairMarket or any of its subsidiaries on or at any time prior to the date hereof ("Excluded
FairMarket Customers"). 

        eBay Proprietary Promotional Program(s):    promotional programs (including but not limited to sweepstakes, contests, gifts with
monetary purchase, free offers, rebates, coupons and/or (following the end of the period specified in Section 2.1(c)) eBay points/buck/bank) that (i) are primarily designed to encourage
user acquisition, trial, retention or loyalty of the eBay website located at the URL www.ebay.com and active participation on such eBay website by registered eBay users of such eBay website and
(ii) are conducted primarily on such eBay website. 

        Loyalty Program:    a reward-based promotional program that: (i) is offered (in whole or in part) through a web site;
(ii) is not solely Advertising-based; (iii) is designed to encourage consumers to sign up for, maintain use of, or reuse a Customer's product or service, via a reward of real or
perceived value that may be offered on a consistent or random basis; and (iv) is directed primarily at residents of the United States. 

2.    COLLABORATION TO OFFER LOYALTY PROGRAMS  

        2.1    Promotion; Exclusivity.    

	(a)
	For
the period beginning on the Effective Date and ending on October 1, 2003:

	(i)
	eBay
will not, directly or through any of its subsidiaries or affiliates or any third party, utilize the services of any party other than FairMarket to
develop, host or maintain all or any portion of a web site that provides a Loyalty Program or enter into any agreement to do so.

	(ii)
	FairMarket
will not (except pursuant to this Agreement or any other written agreement between FairMarket and eBay), directly or through any of its
subsidiaries or affiliates or any third party, develop, host or maintain all or any portion of a web site that provides a Loyalty Program or enter into any agreement to do so. 

        The
aforementioned exclusivity does not apply to: (A) Loyalty Programs offered or provided by either party pursuant to any written contracts in effect on the date hereof;
(B) Loyalty Programs offered or provided by FairMarket or any of its subsidiaries to any Excluded FairMarket Customer; (C) promotional programs offered or provided by either party that  solely
feature one or more of the following: sweepstakes, contests, rebates, coupons, gift certificates, or gifts with monetary purchase; or
(D) eBay Proprietary Promotional Programs. 

	(b)
	During
the term of this Agreement, eBay will not contact or solicit, directly or indirectly, any Excluded FairMarket Customer with respect to services involving a Loyalty Program
unless otherwise mutually agreed upon by the parties in writing.

	(c)
	In
addition, eBay will not commence internal development of or license or otherwise acquire (other than as a result of an equity investment made by eBay in a third party after the
Effective Date) any technology offering similar to the FairMarket Service or relating directly or indirectly to Loyalty Programs for the period beginning on the Effective Date and ending on the first
anniversary of the Effective Date; provided however, in the event eBay acquires an equity interest in any company that has a technology offering similar to the FairMarket Service nothing herein shall
prohibit eBay from holding and maintaining such interest or any assets of such entity, so long as during the period of exclusivity, eBay does not (i) actively market such technology to
Customers or potential Customers or (ii) in the case of an equity investment that constitutes a majority voting interest in such company, does not enter into, 

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and
does not permit such company or any of its subsidiaries to enter into, after the acquisition of such interest, any agreement to provide such technology offering to Customers or potential
Customers. 

	(d)
	If
a Customer with respect to which there is a Promotion Site Addendum in effect desires to extend such Customer's Loyalty Program to residents of a country outside the United States,
then eBay and FairMarket will negotiate in good faith with one another and with such Customer regarding an extension of such Promotion Site Addendum to provide for the extension of such Loyalty
Program to such additional country utilizing the FairMarket Service. If a potential Customer desires to implement a loyalty program of the nature of the Loyalty Programs but directed at residents of
another country in addition to residents of the United States, then eBay and FairMarket will negotiate in good faith with one another and with such potential Customer to utilize the FairMarket Service
in connection with such loyalty program. Without limiting the generality of the foregoing, in each such case eBay and FairMarket agree to negotiate with one another in good faith to determine the fees
(of the nature covered by Sections 2.5(b), 3.1(a) and 3.2) that would apply to the provision of the FairMarket Service in each such country. 

        2.2    Promotional Activities.    The parties agree as follows: 

	(a)
	eBay
agrees to market and promote Loyalty Programs based on the FairMarket Service to Customers during the term of this Agreement in accordance with the terms of this Agreement.

	(b)
	eBay
will lead all sales and marketing efforts involving Loyalty Programs and will directly contract with Customers to provide the Loyalty Program(s). FairMarket will act as the
third-party service provider charged with (i) developing, hosting and maintaining each Promotion Site and implementing certain aspects of the Loyalty Program(s) as more particularly described
in the Master Promotion Site
Agreement and the applicable Promotion Site Addendum, and (ii) providing certain additional implementation, customization, creative and other services as are mutually agreed upon by the parties
(the services described in this clause (ii) being referred to as "Professional Services"). FairMarket agrees to cooperate with eBay in scheduling
and presenting to potential Customers presentations regarding the portion of Loyalty Programs involving the FairMarket Service. eBay will use commercially reasonable efforts to include FairMarket in
any such presentation to a potential Customer which significantly relates to the FairMarket Service (insofar as the same relates to the FairMarket Service). The parties agree that FairMarket may
attend the actual meetings; provided however, FairMarket shall be responsible for its own travel expenses related to such meetings.

	(c)
	The
parties agree to work together in good faith to create and implement mutually agreeable marketing and sales strategies, including budget estimates, as promptly as practicable
following the execution of this Agreement to leverage the relationship created by this Agreement. The parties will develop mutually acceptable marketing and sales presentations to Customers and other
sales and marketing collateral regarding the Loyalty Programs with respect to the FairMarket Service.

	(c)
	eBay
will use commercially reasonable efforts to keep FairMarket informed of eBay's planned Customer acquisition efforts, any projected revenue targets and the status of discussions
and negotiations with potential Customers.

	(d)
	Each
party will designate an individual manager within their organization who will be responsible for the coordination of sales activities such as meetings, lead generation, target
account planning and sales training as well as the resolution of operational issues. Initially, FairMarket shall designate two (2) sales employees to assist eBay in marketing Loyalty Programs
involving the FairMarket Service and eBay shall designate four (4) sales employees 

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to
marketing Loyalty Programs involving the FairMarket Service. For the avoidance of doubt, each party's designated employees will not be dedicated solely to the sale and marketing of the Loyalty
Program or the FairMarket Service. 

	(f)
	On
a quarterly basis, the parties will meet to discuss the progress of the relationship, to consider suggestions to maximize its revenue potential, to review the matters specified in
Section 3.4, to identify and discuss new features and functions that could enhance the Loyalty Programs or the promotion thereof, and to review the staffing levels specified in
Section 2.2(d).

	(g)
	Upon
eBay's prior written approval (which may be by email), which may be withheld in eBay's sole discretion, FairMarket may at its sole discretion promote eBay on its main web site in
a form and manner mutually agreed to by the parties. 

        2.3    Customer Acquisition; Management of Customer Relationship.    The parties agree that all communication with
potential Customers regarding Loyalty Programs will occur via or in conjunction with eBay, it being understood that during the negotiation process and the course of any implementation activities that
occur prior to the signing of a contract, Customers may independently contact FairMarket and/or that Customers and FairMarket may need to interact directly in connection with implementation and
similar matters and that such communications will not be deemed to be a violation of this Section 2.3. FairMarket shall not independently contact or solicit potential Customers for Loyalty
Programs without eBay's prior consent. Once a Customer executes a contract for a Loyalty Program, as between the parties, eBay will serve as the Customer's primary contact with respect to the Loyalty
Program; provided, however, FairMarket will have the ability to directly interact with the Customer in the course of providing the FairMarket Service. Each of eBay and FairMarket will keep the other
reasonably informed of any significant issues raised during their interactions with Customers. 

        2.4    No Obligation to Contract.    eBay shall have no obligation to enter into a contractual relationship with any
potential Customer, and neither eBay nor FairMarket shall have any obligation to enter into a contractual relationship with each other with respect to any given potential Customer; provided however,
that: 

	(a)
	(i) if
eBay determines in its sole discretion not to enter into a contract with a potential Customer, eBay will, with reasonable promptness, notify FairMarket of such
determination in writing, and FairMarket may thereafter contact and contract with such potential Customer without restriction under this Agreement; provided however, any revenue related to such
agreement shall count towards the revenue targets set forth in Section 3.4; and 

(ii)    if
a potential Customer desires to enter into a contract with FairMarket for the provision of the FairMarket Service but does not desire to enter into a contract with eBay and so
notifies eBay directly (either verbally or in writing), then, subject to the prior written consent of eBay (which shall not be unreasonably withheld), FairMarket may thereafter contact and contract
with such potential Customer without restriction under this Agreement; provided however, any revenue related to such agreement shall count towards the revenue targets set forth in Section 3.4;
and provided further that the following conditions shall have been satisfied: (A) eBay shall have had a reasonable opportunity to hold direct discussions with such Customer in conjunction with
FairMarket concerning the Loyalty Program; (B) the fees charged by FairMarket to such Customer with respect to the provision of the FairMarket Service to such Customer are within the parameters
of the FairMarket fees contemplated by this Agreement; (C) the provision of the FairMarket Service to such Customer would not constitute a violation of the terms of any preexisting written
agreement between eBay and an unaffiliated third party if FairMarket were a party to such agreement, (D) such agreement between FairMarket and Customer will not contain any restrictions such as
exclusivity which would prevent FairMarket from licensing the FairMarket Services or FairMarket Technology to 

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Customers eBay may contract with in the future; (E) such Customers will not be considered Excluded FairMarket Customers; and (F) FairMarket will disclose the terms of the such
agreements to eBay to ensure compliance with the above restrictions. 

	(b)
	Subject
to the terms of the Letter Agreement (as defined in Section 11.9), FairMarket agrees to enter into an agreement with eBay for the provision of the FairMarket Service to
a Customer pursuant to a Promotion Site Addendum if all of the following conditions are satisfied: (i) FairMarket and eBay mutually agree on the matters described in Section 2.5(b);
(ii) the Hosting/Maintenance Fee for such Customer is within the ranges set forth in Exhibit A (based on the range factors applicable to such Customer); (iii) the terms and
conditions proposed by eBay for the provision of the FairMarket Service are otherwise in accordance with Section 2.5(b) and Section 3 of this Agreement and with the Master Promotion Site
Agreement (including the form of Promotion Site Addendum attached thereto); (iv) such Customer is not a competitor of FairMarket; (v) the creditworthiness of such Customer is reasonably
satisfactory; (vi) entering into an agreement with such Customer would not violate a contractual restriction to which FairMarket or any of its subsidiaries is a party; (vii) such
Customer is not engaged, directly or indirectly, in any business involving, and does not sponsor, pornography, weapons, drugs or racially or politically offensive products or services; and
(viii) the provision of the FairMarket Service to such Customer would not require FairMarket to comply with, and would not subject FairMarket to, any area of law or regulation to which
FairMarket is not then subject. 

provided
further, in any event under (b) above, the parties agree to use good faith and commercially reasonable efforts to agree upon the terms under which a Promotion Site would be provided to
a potential Customer. Further, the parties are not authorized to sign any contracts for the other or to enter into any agreement that obligates the other to perform any act. 

        2.5    Technical Responsibilities.    (a) FairMarket shall be responsible for providing the FairMarket Service
(including but not limited to any software, hardware or middleware utilized by FairMarket in providing the FairMarket Service). FairMarket shall provide the FairMarket Service in accordance with the
service level agreement set forth in Section 4.2 ("Certain Operational Provisions"). The parties agree to work in good faith with one another regarding the provision of the FairMarket Service
pursuant to the Master Promotion Site Agreement, including without limitation in negotiating the terms of each Promotion Site Addendum. FairMarket shall be responsible for the initial implementation
of a Promotion Site as provided in Section 2.2(b). 

	(b)
	The
features to be included in the initial implementation of a Promotion Site will be as mutually agreed by the parties and set forth in the applicable Promotion Site Addendum. For
the initial implementation of a Promotion Site that only involves the implementation of standard features included in the FairMarket Service, FairMarket will provide up to the applicable number of
hours of such implementation services determined in accordance with Exhibit A (the "Standard Implementation Hours") without charge. For any
implementation services over and above Standard Implementation Hours, FairMarket and eBay will mutually agree upon an implementation fee for the Promotion Site in question based on (i) the
implementation services requested by the Customer and mutually agreed to by the parties, (ii) FairMarket's good faith estimate of the number of hours reasonably necessary to perform such
services and (iii) FairMarket's professional services fee rate of $[*]/hour, with the exact amount of such implementation fee to be set forth in the applicable Promotion
Site Addendum. It is agreed that FairMarket shall not be required to perform any implementation services beyond the Standard Implementation Hours until FairMarket has received payment of the
applicable implementation fee. 

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	(c)
	In
the event (a) eBay or a Customer pay Professional Services Fees for the addition of any feature or function to the FairMarket Technology or FairMarket Service and
(b) the FairMarket Technology or the FairMarket Service is modified to incorporate such modification as either a standard feature or a standard optional feature of the FairMarket Service (as
determined by FairMarket) without extra implementation hours required, then such feature or function will be deemed incorporated into the Features Document and become part of the services offered
therein at no additional cost (beyond the guidelines in Exhibit A) to eBay or Customers. For avoidance of doubt, FairMarket will notify eBay in writing as to those features that become a
standard (or standard optional) feature of the FairMarket Service. 

3.    FINANCIAL RELATIONSHIP  

        3.1    Revenue Share.    

	(a)
	Unless
otherwise stated in a particular Promotion Site Addendum, in consideration of FairMarket's provision of the FairMarket Service, FairMarket's Standard Implementation Hours and
FairMarket's hosting and maintenance of each Promotion Site in accordance with the applicable Promotion Site Addendum, eBay will pay FairMarket [*]% of the total compensation
received by eBay from the applicable Customer that is related to the Promotion Site ("Hosting/Maintenance Fee"); provided however, such amount shall not
include any amounts paid or payable by such Customer to eBay solely for Advertising or other services provided by eBay to such Customer (e.g. end-user customer service) provided that such
other services (i) are not part of the FairMarket Service and (ii) are not to be provided to such Customer by FairMarket pursuant to the applicable Promotion Site Addendum. 

Set
forth in Exhibit A are the ranges of fees that would be reasonably acceptable to FairMarket as payment by eBay (pursuant to a Promotion Site Addendum) for FairMarket's hosting and
maintenance services for a Promotion Site based on variable factors such as anticipated number of registered users, anticipated number of page views, anticipated number of promotion codes and number
of account management/client support services hours per month. Such ranges are intended to serve as a guideline to enable eBay to negotiate fees for its Loyalty Program services (including the fees
relating to the FairMarket Service) with potential Customers. The exact amounts to be paid to FairMarket for the Hosting/Maintenance Fee for each Promotion Site will be set forth in the applicable
Promotion Site Addendum. 

	(b)
	FairMarket
will invoice eBay monthly in advance for the Hosting/Maintenance Fee for each Promotion Site, each of which invoices will be payable by eBay within sixty (60) days
of delivery of such invoice, provided that eBay has received the payment from the applicable Customer, provided further that if eBay has not made such payment within ninety (90) days following
the delivery of such invoice by FairMarket (regardless of whether eBay has received payment from the respective Customer), then
FairMarket will have the right to terminate the applicable Promotion Site Addendum upon ten (10) days written notice to eBay delivered at any time during the thirty (30) day period
following the end of such 90-day period and the terms of this Agreement (other than Section 2.1(a)(i)) shall no longer apply to such Customer.

	(c)
	eBay
will provide FairMarket with a copy of the termination and payment provisions and other provisions that may directly impact FairMarket as eBay may determine in its reasonable
discretion of each of its Customer Contracts, redacted to exclude those portions that do not relate to the FairMarket Service, promptly upon execution thereof.

	(d)
	During
the Term of this Agreement, no more frequently than once per year, a mutually agreed upon independent auditing professional may, upon not less than ten (10) days'
written notice to eBay, inspect the Customer Contracts to verify eBay's payments to FairMarket under Section 2.5(b) and Section 3. Any such inspection shall be conducted during normal
business 

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hours
and in a manner that does not unreasonably interfere with eBay's regular business activities. The auditing professional shall enter into a confidentiality agreement in the form reasonably
specified by eBay, and shall not disclose any of the records of eBay to FairMarket. eBay shall make any overdue payments disclosed by the audit; in the event of any overpayment, FairMarket shall
refund all overpaid amounts to eBay. Such inspection shall be at FairMarket's expense; provided, however, if the audit reveals overdue payments in
excess of ten percent (10%) of the payments owed to date, eBay shall immediately pay the cost of such audit, plus any unpaid amounts due to FairMarket. 

        3.2    Professional Service Fees.    With respect to any Professional Services (i.e., beyond the initial
implementation services contemplated by Section 2.5(b)) that the parties mutually agree will be provided by FairMarket for a Promotion Site, FairMarket's fee for such Professional Services will
be at the rate of $[*]/hour. No Professional Services will be provided by FairMarket without the prior written agreement of eBay as to the estimated expense, scope,
deliverables, timing and work effort of such services, and FairMarket shall be entitled to recover reasonable pre-approved travel, lodging and other incidental costs incurred in the
provision of Professional Services in accordance with eBay's standard travel policies. The fee for such Professional Services will be payable upon execution of such written agreement. It is agreed
that FairMarket shall not be required to perform any such Professional Services until FairMarket has received payment of the applicable Professional Services fee. 

        3.3    Other Services.    If the parties agree that FairMarket will perform other services in connection with a given
Promotion Site (e.g., end-user customer service), the fees for such services will be as mutually agreed by the parties and set forth in the applicable Promotion Site Addendum. 

        3.4    Revenue Targets.    As promptly as practicable following the execution by the parties of this Agreement, eBay
will develop in good faith and deliver to FairMarket Loyalty Program estimated revenue targets that, if achieved, would yield recognized revenue to FairMarket of at least $[*]
during the first twelve (12) months of this Agreement, giving effect to the revenue generated by the commerce services
agreement entered into between eBay and FairMarket on February 18, 2002 (the "FairMarket Revenue Target"). As promptly as practicable following the Effective Date, FairMarket will deliver to
eBay a draft sales pipeline and sales plan and the parties will work together to develop a final initial sales pipeline and sales plan within thirty (30) days of the Effective Date. The parties
will meet quarterly to review eBay's revenue targets and to monitor performance against the FairMarket Revenue Target. The parties agree that the eBay and FairMarket revenue targets are in themselves
goals, and failure to reach the FairMarket Revenue Target is not in itself a breach of this Agreement and does not give rise to any liability on the part of either party. If the FairMarket Revenue
Target is not achieved, then either party will have the right to terminate Section 2.1(a) upon ten (10) days prior written notice to the other party delivered within thirty
(30) days of the 12-month anniversary of the Effective Date. 

4.    CERTAIN OPERATIONAL PROVISIONS  

        4.1  eBay
acknowledges and agrees that FairMarket shall not be primarily responsible for complying with applicable laws relating to the design, operation and fulfillment of a
Customer's Loyalty Program (including but not limited to federal and state laws relating to sweepstakes and lotteries) and shall not be liable for any failure to do so; provided, however, FairMarket
shall assist eBay (or the Customer), at its reasonable instruction, to comply with such laws, including modifying the applicable Promotion Site and the FairMarket Service, in each case as mutually and
reasonably agreed by FairMarket and eBay in writing, subject to any applicable mutually agreed upon Professional Services fees and other related provisions of the applicable Promotion Site Addendum. 

        4.2  FairMarket
warrants that the FairMarket Service will be provided by FairMarket on a 7 day per week, 24 hour per day basis and (excluding
(a) scheduled maintenance time as defined below, (b) the effect of any action taken by eBay, any Customer or any of their respective customers, suppliers 

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or agents and (c) the effect of any software, hardware or service provided by eBay, any Customer or any of their respective customers, suppliers or agents) each Promotion Site and the
FairMarket Service will be available for a minimum of [*]% of the total time available measured at the end of each full calendar month during the Term of this Agreement. If
either a Promotion Site or the FairMarket Service is available (subject to the exclusions described above) less than [*]% during each of three (3) consecutive calendar
months during the Term (a "Measurement Period"), eBay may at its option: (i) receive a credit against future amounts payable equal to
[*]; or (ii) terminate this Agreement at anytime during the thirty (30) day period following end of such Measurement Period, upon thirty (30) days written
notice to FairMarket; provided however, termination of this Agreement shall not affect any Promotion Site Addenda to the Master Promotion Site Agreement then in effect. Notwithstanding any provision
of this Agreement to the contrary, the remedies expressly set forth in this paragraph shall be the exclusive remedies available to eBay under this Agreement in respect of any claims, damages,
liabilities and costs arising out of or resulting from any failure of any Promotion Site or the FairMarket Service to meet the performance standards set forth in this paragraph; provided however,
nothing herein shall supercede any remedies available to eBay in respect of such failure pursuant to the terms of the Master Promotion Site Agreement or any applicable Promotion Site Addendum. 

FairMarket
shall be entitled to perform scheduled maintenance on the FairMarket Service, provided (a) eBay will receive at least 72 hours prior written notice of the date, time and
expected duration thereof and (b) such maintenance will (i) not be performed more than twice per calendar month, (ii) not exceed eight (8) hours in total per calendar month
and (iii) where possible, be conducted at times likely to cause the least amount of disruption to the operation of the FairMarket Network. 

        4.3  (a)
Except following a Triggering Event and subject to the provisions of Section 10, eBay shall not access, copy, download, install, adapt, reverse engineer,
publicly display or perform or in any way alter or use the programs or technology underlying any Promotion Site or the FairMarket Service (including the FairMarket Technology) for any purpose,
including without limitation for purposes of interoperability. Neither party shall attempt to access any restricted areas of the other's website or service or any site that such party knows is hosted
by the other or utilize any website or service of the other except as permitted under, and in any manner other than that for which it was intended under, this Agreement or any other written agreement
between the parties. (b) Neither FairMarket nor eBay shall, and shall not authorize or encourage any third party to, employ any robot, spider, data miner, wanderer, crawler or other automatic
device or manual process to copy or monitor any eBay website, any Promotion Site or any other site such party knows is hosted by the other. 

        4.4  With
respect to each Promotion Site, the parties agree to negotiate in good faith regarding the Promotion Site Addendum that will set forth the specifics of the
implementation of, and the monthly services to be provided by FairMarket with respect to, such Promotion Site. eBay agrees that it will not, without the prior agreement of FairMarket, offer any
Customer or agree with any Customer to any terms in relation to the FairMarket Service that differ in any significant way from the terms set forth in Section 2.5(b) or Section 3 hereof
or in the Master Promotion Site Agreement; provided however, the parties agree to use commercially reasonable efforts to agree with one another with respect to any reasonable request of a Customer
regarding the implementation and operation of a Promotion Site, subject to the payment and other applicable provisions of the Master Promotion Site Agreement and the applicable Promotion Site
Addendum. 

        4.5  FairMarket
shall employ commercially reasonable procedures and safeguards as standard in the industry to maintain the security of data residing in all Promotion Site
databases on FairMarket servers, provided that FairMarket shall not be required to employ anything other than commercial, off-the-shelf software (COTS). 

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   5.    TERM AND TERMINATION  

        5.1  The
term of this Agreement (the "Term") shall commence on the Effective Date and end on October 1, 2003. 

        5.2  Either
party may terminate this Agreement upon thirty (30) days prior written notice to the other party if the other party breaches any of its obligations under
Sections 2.1(a), (b) or (c) and such breach remains uncured for thirty (30) days following the receipt by such party of such written notice, which notice shall specify the nature
of the breach. Either party may terminate this Agreement upon sixty (60) days prior written notice to the other party if the other party (a) breaches any other material obligation
hereunder and such breach remains uncured for sixty (60) days following the receipt by such party of such written notice, which notice shall specify the nature of the breach, (b) ceases
doing business or experiences a Bankruptcy Event or Adverse Financial Event (defined in Section 10 ("[*]")). Notwithstanding the foregoing: (i) the parties may
mutually agree to terminate this Agreement in writing; and (ii) eBay shall additionally have the right to terminate this Agreement as set forth in Section 4.2 ("Certain Operational
Provisions") or Section 11.2 ("Assignment; Change of Control"). 

        5.3  Upon
the effective termination date of this Agreement, each party will return to the other or, at the other's written request, destroy and certify in writing to the
destruction of, all intellectual property and confidential information belonging to the other, subject to the terms of the Master Promotion Site Agreement and any Promotion Site Addendum then in
effect. 

        5.4  The
provisions of Section 4.3 ("Certain Operational Provisions"), Section 5.3, Sections 6.5 and 6.7 ("Intellectual Property Ownership and License"),
Section 7 ("Confidentiality"), Section 8 ("Warranty and Indemnity"), Section 9 ("Limitation of Liability"), Section 10 ("[*]") and Section 11
("General") shall survive the termination of this Agreement. 

6.    INTELLECTUAL PROPERTY OWNERSHIP AND LICENSES  

        6.1    Content Licenses.    During the term of this Agreement, subject to the terms and conditions hereof, each party
("Licensing Party") hereby grants to the other party a limited, non-exclusive, non-transferable right and license (with no right
to sublicense) to use, reproduce, distribute, modify (only as necessary to promote the Licensing Party's Services), publicly perform and publicly display (in digital or analog formats) the Licensing
Party's Content for the purposes of promoting the Licensing Party's Services. As used herein, "Content" means any promotional content or information in any medium provided by or on behalf of the
Licensing Party to the other for the other's use in promoting the Licensing Party's Services, provided that the term "Content" does not include Marks, FairMarket Technology or eBay Technology. 

FairMarket
will not provide any FairMarket Content to eBay and eBay will not provide any eBay Content to FairMarket pursuant to this Agreement that: (i) infringes any third party's U.S.
copyright, patent, trademark, trade secret or other proprietary rights or rights of publicity or privacy; (ii) is defamatory, trade libelous, unlawfully threatening or unlawfully harassing;
(iii) is obscene, harmful to minors or child pornographic; (iv) contains any viruses, Trojan horses, worms, time bombs, cancelbots or other computer programming routines that are
intended to damage, detrimentally interfere with, surreptitiously intercept or expropriate any system, data or personal information; or (v) is misleading or inaccurate in any material respect. 

        6.2    License to Marks.    During the term of this Agreement, subject to the terms and conditions hereof, each party
grants to the other party a limited, non-exclusive, non-transferable right and license (with no right to sublicense) to display such Licensing Party's Marks or other commercial
or product designations solely for the purposes expressly set forth in Section 2 of this Agreement, which include, but are not limited to, the display and use of the Marks in sales and
marketing collateral and presentations and on the parties' respective websites, provided, however, that the form and substance of 

9

 

the proposed use of the Licensing Party's Marks by the other party shall be subject to the Licensing Party's prior review and written consent (including by email).
"Marks" means a Licensing Party's corporate or trade names, domain names, trademarks, service marks, logos, trade dress and tag lines and the like in
the form provided by the Licensing Party to the other for use under this Agreement; provided, however, that the Licensing Party, from time to time, may change the appearance and/or style of its Marks. 

        6.3    Use.    Each party agrees: (a) to comply with all quality control standards and trademark usage
guidelines for Marks and Content that the Licensing Party may promulgate from time to time which are communicated to the other party in writing; (b) that use of the Licensing Party's Marks and
Content shall be in accordance with Licensing Party's reasonable policies regarding advertising and trademark usage, as shall be established or changed from time to time, in the Licensing Party's sole
discretion; (c) that all use of the Licensing Party's Marks, and all goodwill associated therewith, shall inure to the benefit of the Licensing Party; (d) not to register or attempt to
register, directly or indirectly, any of the Licensing Party's Marks or any confusingly similar mark anywhere in the world or take any other action inconsistent with the Licensing Party's ownership of
the Marks; (e) not to use the Licensing Party's
Marks in any manner that tarnishes, blurs or dilutes the quality associated with the Licensing Party's Marks or the associated goodwill or otherwise unfavorably reflects upon the Licensing Party; and
(f) not to contest anywhere in the world the use or authorization by the Licensing Party of any the Licensing Party's Marks or any application or registration therefor, whether during or after
the term of this Agreement. If either party modifies its Marks and requests the other party to modify accordingly such Marks as in use by the other party, the other party will modify such items as
soon as commercially practicable. The licensee will not form any combination marks with the Licensing Party's Marks. The Licensing Party shall have a reasonable opportunity to review and must approve
in writing all of materials of the other incorporating the Licensing Party's Marks and Content in advance of their use. 

        6.4    Mark Ownership Identification.    All (a) FairMarket materials bearing eBay Marks shall carry the
following notice: "eBay and the eBay logo are trademarks of eBay Inc." and (b) eBay materials bearing FairMarket Marks shall carry the following notice: "FairMarket is a registered
service mark, and the FairMarket logo is a service mark, of FairMarket, Inc.", or such similar notice as a party may designate from time to time in writing to the other party. 

        6.5    Ownership of Intellectual Property.    FairMarket retains all right, title and ownership in and to the
FairMarket Marks, the FairMarket Content, the FairMarket Service, the FairMarket Technology and any technology developed by FairMarket pursuant to or in connection with this Agreement and the
transactions contemplated hereby, including without limitation any modifications or improvements thereto. "FairMarket Technology" means all technology,
inventions, ideas, know-how, expertise, trade secrets, software, copyrights, patents, trademarks and other intellectual property rights developed by or for FairMarket or its suppliers and
used in conjunction with the FairMarket Service (but excluding eBay Technology). eBay shall not attempt to access, copy, download, install, adapt, reverse engineer, or in any way alter or use the
programs or technology underlying the FairMarket Service for any purpose. 

eBay
retains all right, title and ownership in and to the eBay Marks, the eBay Content, the eBay Services, the eBay website, the eBay Technology and any technology developed by eBay, without
participation by FairMarket and without reference to or use of Confidential Information of FairMarket, pursuant to or in connection with this Agreement and the transactions contemplated hereby,
including without limitation any modifications or improvements thereto. "eBay Technology" means all technology, inventions, ideas, know-how,
expertise, trade secrets, software, copyrights, patents, trademarks and other intellectual property rights developed by or for eBay or its suppliers (other than FairMarket) and used in conjunction
with the eBay Services (but excluding the FairMarket Technology). FairMarket shall not attempt to access, copy, download, install, adapt, reverse engineer, or in any way alter or use the 

10

 

programs or technology underlying the eBay Services for any purpose (except pursuant to the Master Promotion Site Agreement or any other written agreement between the parties). 

        6.6    No Implied Licenses.    There are no implied licenses under this Agreement, and any rights not expressly
granted to a licensee hereunder are reserved by the Licensing Party or its suppliers. Neither party will exceed the scope of the licenses granted hereunder. 

        6.7    Termination of Licenses.    Except to the extent otherwise provided in Section 10.4, upon the
termination of this Agreement the licenses granted herein shall terminate and each party shall cease using the Marks and Content of the other, except to the extent that a third party without a license
or other permission would be permitted to use the same under applicable law. 

7.    CONFIDENTIALITY  

        7.1  As
used herein, "Confidential Information" means information about the disclosing party's or its affiliates', customers' or suppliers' (including Customers') business or
activities that is proprietary and confidential, which shall include all business, financial, technical and other information of a party marked or designated by such party as "confidential" or
"proprietary," and information which, by the nature of the circumstances surrounding the disclosure, ought in good faith to be treated as confidential. The terms of this Agreement shall be deemed to
be the Confidential Information of each party. Confidential Information shall not include information that (a) is in or enters the public domain without breach of this Agreement, (b) the
receiving party lawfully receives from a third party without restriction on disclosure and without breach of a nondisclosure obligation or (c) the receiving party knew prior to receiving such
information from the disclosing party or develops independently without use of or reference to Confidential Information of the disclosing party. Nothing in this Agreement shall be construed to
prohibit FairMarket from disclosing information of a Customer to such Customer. 

        7.2  Each
party agrees that it shall (a) not disclose to any third party or use any Confidential Information disclosed to it by the other or by any Customer, and
FairMarket agrees that it shall not disclose the terms of this Agreement to any Customer, except as permitted in this Agreement, the Master Promotion Site Agreement or the applicable Promotion Site
Addendum and (b) take all reasonable measures to maintain the confidentiality of all Confidential Information of the other in its possession or control, but no less than the measures it uses to
maintain the confidentiality of its own information of similar importance; provided, each party may disclose Confidential Information (i) to the extent required by a court or other governmental
authority or applicable law or the rules and regulations of the Securities and Exchange Commission (the "SEC") or the applicable rules of any stock
exchange or the Nasdaq Stock Market, provided the receiving party first gives the disclosing party reasonable notice of such requirement, provides reasonable cooperation to the disclosing party in its
efforts to lawfully limit disclosure and gives the disclosing party the opportunity to defend and/or attempt to limit such disclosure, all at the sole cost and expense of the disclosing party,
provided that a party may, without the prior consent of the other party, issue a public statement as may be required by law, the rules and regulations of the SEC or the applicable rules of any stock
exchange or the Nasdaq Stock Market if it has used its reasonable best efforts to consult with the other party at least 48 hours prior to issuing such public statement and to obtain such
party's prior written consent (which may be by email), but has been unable to do so in a timely manner, and (ii) to its legal counsel and accountants and on a
"need-to-know" basis under an obligation of confidentiality to its banks and other financing sources and their advisors. eBay acknowledges that FairMarket will be legally
required to publicly announce the existence and certain terms of this Agreement in FairMarket's Form 10-K (and may be required to announce the same earlier under the rules of the
SEC or the Nasdaq National Market, including without limitation in order to open or keep open its trading window) and that FairMarket may be required to file this Agreement as an exhibit to, or
otherwise describe this Agreement in, a report filed
by it under the Securities Exchange Act of 1934, as amended, in accordance with the rules and regulations under such Act (or, if applicable, pursuant to the Securities Act of 1933, as amended, 

11

 

and the rules and regulations thereunder) or the rules of the Nasdaq National Market. eBay hereby consents (i) to a public statement provided that FairMarket notifies eBay's legal counsel at
least 48 hours in advance of such statement, limits the statement to those items required by law (except as otherwise mutually and reasonably agreed to by the parties) and provides eBay with a
reasonable opportunity to review and reasonably modify the text of such statement regarding the existence and terms of this Agreement and (ii) to any such filing or description of this
Agreement in any such report. FairMarket hereby consents that, if it is required to file this Agreement with the SEC, it will request confidential treatment for portions of the Agreement pursuant to
Rule 24b-2 of the Securities Exchange Act of 1934. 

8.    WARRANTY AND INDEMNITY  

        8.1  Each
party represents and warrants to the other that (a) it has full power and authority to enter into this Agreement and to grant the licenses provided herein
and (b) this Agreement has been duly authorized, executed and delivered by such party. 

        8.2  Each
party will indemnify the other against any and all claims, losses, liabilities, costs and expenses, including reasonable attorneys' fees (collectively,
"Claims") which the other may incur as a result of any third party actions arising from or relating to: (a) a breach of a party's
representations, warranties or covenants contained in this Agreement; or (b) infringement by any of the indemnifying party's Marks or Content of a U.S. patent, copyright, trademark or other
intellectual property right of a third party or misappropriation of any third party trade secret, except where such Mark or Content has been modified without authorization, and such modification is
the basis of the Claim; such indemnification will be the indemnifying party's sole and exclusive obligation and the indemnified party's sole and exclusive remedy as a result of any third party actions
arising from the matters described herein. In addition, FairMarket agrees to indemnify, defend and hold eBay harmless in the event of any third party Claim that the FairMarket Service or the
FairMarket Technology infringes the intellectual property rights of any third party, including but not limited to patent, copyright, or trademark, except for Claims under the Commerce Services
Agreement dated as of February 28, 2002 between the parties with respect to the BKRewards site, which shall continue to be governed by the terms of that agreement. 

        8.3  A
party seeking indemnification under Section 8.2 shall promptly notify the other party in writing of any and all such claims and shall reasonably cooperate with
such other party in the defense and/or settlement thereof; provided that, if any settlement requires an affirmative obligation of, results in any ongoing liability to or prejudices or detrimentally
impacts the indemnified party in any way, then such settlement shall require the indemnified party's prior written consent (not to be unreasonably withheld or delayed) and the indemnified party may,
at its sole cost and expense, have its own counsel in attendance at all proceedings and substantive negotiations relating to such claim. 

        8.4  EXCEPT
AS SPECIFIED IN THIS AGREEMENT, INCLUDING ALL EXHIBITS HERETO, NEITHER PARTY MAKES ANY WARRANTY IN CONNECTION WITH THE SUBJECT MATTER OF THIS AGREEMENT AND HEREBY
SPECIFICALLY DISCLAIMS ANY AND ALL IMPLIED WARRANTIES, INCLUDING ALL IMPLIED WARRANTIES OF TITLE, NON-INFRINGEMENT, MERCHANTABILITY AND FITNESS FOR A PARTICULAR PURPOSE REGARDING SUCH
SUBJECT MATTER. 

9.    LIMITATION OF LIABILITY  

        9.1  EXCEPT
AS SET FORTH IN SECTIONS 9.3 AND 9.4, IN NO EVENT SHALL EITHER PARTY BE LIABLE TO THE OTHER FOR ANY SPECIAL, INCIDENTAL OR CONSEQUENTIAL DAMAGES, WHETHER BASED ON
BREACH OF CONTRACT, TORT 

12

 

(INCLUDING NEGLIGENCE) OR OTHERWISE, WHETHER OR NOT THAT PARTY HAS BEEN ADVISED OF THE POSSIBILITY OF SUCH DAMAGE. 

        9.2  EXCEPT
AS SET FORTH IN SECTIONS 9.3, 9.4 AND 9.5 AND EXCEPT IN THE EVENT OF A CLAIM ARISING UNDER SECTION 8.2 ("WARRANTY AND INDEMNITY") WHICH SHALL BE UNLIMITED, THE
LIABILITY OF EACH PARTY FOR DAMAGES OR ALLEGED DAMAGES HEREUNDER, WHETHER IN CONTRACT, TORT OR ANY OTHER LEGAL THEORY, IS LIMITED TO, AND SHALL NOT EXCEED, IN THE AGGREGATE THE SUM OF
[*]. 

        9.3  In
the event of a breach by either party of Section 2.1(a) or 2.1(b) ("Promotion; Exclusivity"), the maximum liability of each party for damages, however arising,
whether based on breach of contract, tort (including negligence) or otherwise, shall not exceed [*]. 

        9.4  In
the event of a breach by either party of Sections 4.3(a), 6.5 and 7, the maximum liability of each party for damages whether based on breach of contract, tort
(including negligence) or otherwise, shall not exceed the greater of [*] or actual direct damages. Notwithstanding the foregoing, in no event shall either party be liable to
the other for claims arising under Sections 4.3(a), 6.5, or 7 of this Agreement and 7.4 of the Master Promotion Site Agreement in excess of the limits set forth in this Section 9.4. 

        9.5  In
the event of a breach by eBay of Section 2.1(c), the liability of eBay for damages or alleged damages, whether in contract, tort (including negligence) or
otherwise is limited to, and shall not exceed, in the aggregate the sum of [*]in actual direct damages. 

10.  [*]  

11.  MISCELLANEOUS  

        11.1    Equitable Relief; Dispute Resolution.    The parties agree that any breach of either of the parties'
obligations regarding Marks, Content, intellectual property and/or confidentiality would result in irreparable injury for which there is no adequate remedy at law. Therefore, in the event of any
breach or threatened breach of any such obligations, the aggrieved party shall be entitled to seek injunctive and other equitable relief in addition to its other available legal remedies in a court of
competent jurisdiction. For such purpose, the parties consent to venue in the federal and state courts of the county of Santa Clara, California. In the event of disputes between the parties arising
from or relating to the subject matter of this Agreement other than disputes relating to Marks, Content, intellectual property and/or confidentiality, the parties shall first attempt to resolve the
dispute through good faith negotiation. If any such dispute cannot be so resolved, any cause of action arising under this Agreement shall be brought exclusively in a court in Santa Clara County,
California. 

        11.2    Assignment; Change of Control.    Neither party may assign this Agreement, in whole or in part, without the
other party's prior written consent. Any attempt to assign this Agreement other than as permitted by the preceding sentence shall be null and void. FairMarket shall provide eBay with sixty
(60) days written notice prior to any assignment or Change of Control (defined below), provided, that if FairMarket becomes aware of a Change of Control less than sixty (60) days prior
to such Change of Control, FairMarket will notify eBay of such Change of Control within three (3) days of becoming aware thereof. By providing written notice, eBay may elect to terminate this
Agreement during the ninety (90) day period following a Change of Control of FairMarket, by providing written notice to FairMarket during such window and which termination shall be effective
thirty (30) days following delivery of the notice. "Change of Control" means any Ownership Change Event or a series of related Ownership Change
Events (collectively, the "Transaction") wherein FairMarket's shareholders immediately preceding the Transaction do not retain immediately after the
Transaction, in substantially 

13

 

the same proportions as their ownership of shares of FairMarket's voting stock or other voting interests immediately before the Transaction, direct or indirect beneficial ownership of more than fifty
percent (50%) of the total combined voting power of the corporation or corporations to which substantially all of FairMarket's assets or stock were transferred, as the case may be. An
"Ownership Change Event"
occurs if any of the following occur: (a) the direct or indirect sale or exchange in a single series of related transactions by FairMarket's shareholders or other ownership interest holders of
more than fifty percent (50%) of its voting stock or other voting interests; (b) a merger or consolidation in which FairMarket is a party; (c) the sale, exchange or transfer of all or
substantially all of FairMarket's assets; or (d) a liquidation or dissolution of FairMarket. However, an Ownership Change Event does not occur as a result of any transaction or series of
transactions that are effected solely in connection with a (i) re-incorporation, or (ii) a reorganization, re-capitalization or similar financing not in
connection with the sale of all or substantially all of FairMarket's assets or stock or other ownership interests. 

        11.3    Governing Law.    This Agreement shall be governed by and construed in accordance with the laws of the state
of California, without regard to its conflicts of law rules. 

        11.4    Notice.    Any notice under this Agreement shall be (a) in writing, (b) delivered by personal
delivery, overnight courier of national reputation, confirmed facsimile or certified or registered mail, return receipt requested, and (c) deemed given upon personal delivery, one
(1) business day after deposit with such courier, upon confirmation of receipt of facsimile or five (5) business days after deposit in the U.S. mail. Notices shall be sent to a party at
its address set forth in the first paragraph of this Agreement or facsimile number set forth below or otherwise as that party may specify in writing pursuant to this Section, directed as follows. 

	In the case of eBay:

Fax No.: 408-376-7514

Attn: General Counsel

Copy to:	 	In the case of FairMarket:

Fax No.: 781-935-7617

Attn: Chief Financial Officer

General Counsel

        11.5    Publicity.    Without limiting the provisions of, but subject to the provisions of, Section 7
("Confidentiality"), neither party will make any public statement regarding the existence or the terms of this Agreement without the other party's prior written approval, which may be withheld.
Notwithstanding the foregoing, the parties agree to jointly or simultaneously announce the existence of this Agreement on the Effective Date, which announcement may include quotes from each party's
executives; provided, that if the parties are unable to agree on the text of such press release, FairMarket shall nonetheless have the right to issue a press release with respect to this Agreement in
accordance with and subject to the provisions of Section 7.2. 

        11.6    No Agency.    The parties are independent contractors and shall have no power or authority to assume or create
any obligation or responsibility on behalf of each other. This Agreement shall not be construed to create or imply any partnership, agency or joint venture between FairMarket and eBay. 

        11.8    Force Majeure.    Any delay in or failure of performance by either party under this Agreement (other than
eBay's payment obligations hereunder) caused by any occurrence beyond the reasonable control of such party, including but not limited to acts of God, power outages, wars and other hostilities,
terrorist acts, industrial disputes and governmental restrictions, shall not be considered a breach of this Agreement and shall not give rise to a Trigger Event under clause (a) of
Section 10.2, and such performance shall be excused, for the number of days such occurrence reasonably prevents performance, but in no case s beyond one (1) month. 

        11.9    Miscellaneous.    If any of the provisions of this Agreement are held by to be unenforceable by a court or
arbitrator, the remaining portions of this Agreement shall remain in full force and effect. Any failure or delay by either party to enforce any right under this Agreement shall not at any time
constitute a waiver of such right or any other right, shall not modify the rights or obligations of either 

14

 

party under this Agreement, and shall not constitute a waiver of such right or any other right in the future. This Agreement may only be modified, or any rights under it waived, by a written document
executed by both parties. This Agreement, including all Exhibits, the letter agreement of even date herewith between the parties (the "Letter Agreement"), the Master Promotion Site Agreement and the
JDAs are the complete agreement between the parties with respect to, and supersede all prior agreements and communications (written and oral) regarding, the subject matter hereof. This Agreement may
be executed in two or more counterparts, each of which shall be deemed an original and all of which together shall constitute one and the same instrument. 

        WITNESS the due execution hereof effective as of the Effective Date. 

	
EBAY INC.	
 	

FAIRMARKET, INC.
	

By:	
 	

/s/  BRIAN COWLEY      
 Name: Brian Cowley

Title: Vice President	
 	

By:	
 	

/s/  JANET SMITH      
 Name: Janet Smith

Title: Chief Financial Officer

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Exhibit 10.1    
  

 
 

EMPLOYMENT AGREEMENT    
  

        THIS EMPLOYMENT AGREEMENT (this "Agreement") is made and entered into as of June 26, 2002, by and between
Caremark Rx, Inc., a Delaware corporation ("Employer"), and A.D. Frazier, Jr. ("Officer"). 

Recitals  

        WHEREAS, Employer wishes to retain the services of Officer, and Officer wishes to serve Employer in the capacity of President and Chief Operating Officer; and 

        WHEREAS,
Employer and Officer have agreed to set forth the terms and conditions of Officer's employment with Employer in this Agreement. 

Agreement  

        NOW, THEREFORE, in consideration of the foregoing recitals and of the mutual covenants and agreements contained in this Agreement, the parties agree as follows: 

        1.    Term.    Employer agrees to employ Officer, and Officer agrees to serve Employer, on an "at will" basis for such
period (such period being the "Term") as Employer desires to employ Officer and Officer agrees to serve Employer. Without limiting the generality of the foregoing sentence, Employer shall have the
right to terminate Officer at any time for any reason or no reason without any obligation to Officer other than for Base Salary (as hereinafter defined) earned but unpaid through the date of such
termination and for the obligations of Employer pursuant to Section 5 of this Agreement. 

        2.    Employment of Officer.    

        (a)    Position.    Employer and Officer agree that, subject to the provisions of this Agreement, Officer will serve
as President and Chief Operating Officer of Employer. Unless otherwise agreed by Employer and Officer, Officer's employment will commence August 1, 2002, and Officer will be based at Employer's
Northbrook, Illinois corporate offices. 

        (b)    Duties.    Officer will have general responsibility for the overall operations of Employer and its subsidiaries
and affiliates (including entities acquired from time to time by Employer), but excluding, however, their finance, legal, administration, corporate development/mergers and acquisitions, aviation and
discontinued operations functions. The scope of such duties may be modified from time to time by agreement of Officer and Employer's Chief Executive Officer. Officer shall devote substantially all of
his time and energies during business hours, faithfully and to the best of his ability, to the supervision and conduct of the business and affairs of Employer and its subsidiaries and affiliates;  provided that, it shall not be a violation of this Agreement for Officer to serve on the Board of Directors of R.J. Reynolds Tobacco Corporation and
Apache Corporation following commencement of employment. Employer acknowledges and agrees that Officer currently serves on the Board of Directors of Magellan Health Services, Inc. but intends
to resign such position upon commencement of employment. 

        (c)    Board Membership.    Employer agrees that Officer will be nominated for membership to Employer's Board of
Directors at its next regular meeting, currently scheduled for August 22, 2002. 

        3.    Compensation.    

        (a)    Salary.    Employer shall pay Officer a base salary in the amount of One Million Dollars ($1,000,000) per year
(pro-rated for any partial year during the Term) (the "Base Salary") payable in equal bi-weekly installments, less state and federal tax and other legally required or
authorized withholdings. The Base Salary shall be subject to review and adjustment from time-to-time at the discretion of the Chief Executive Officer of Employer. 

 

        (b)    Incentive Compensation.    During the Term, Officer shall be eligible to receive from Employer incentive
compensation in an amount up to 100% percent of Base Salary (pro-rated for any partial calendar year during the Term), less state and federal tax and other legally required or authorized
withholdings. The incentive compensation contemplated by this Section 3(b) shall be payable to Officer and subject to review and adjustment from time-to-time solely at
the discretion of the Chief Executive Officer of Employer based upon Officer's and Employer's performance. 

        4.    Employment Benefits.    

        (a)    Fringe Benefits.    In addition to the compensation and other remuneration provided for in this Agreement,
Officer shall be entitled, during the Term, to such other benefits of employment with Employer as are now or may after the date of this Agreement be offered pursuant to Employer's standard and
executive benefits plans. 

        (b)    Expenses.    During the Term, Employer shall reimburse Officer promptly for all reasonable travel,
entertainment, parking, business meeting and similar expenditures in pursuit and furtherance of Employer's business upon receipt of reasonable supporting documentation as required by Employer's
policies applicable to its officers generally. 

        (c)    Stock Options.    Upon commencement of employment, Officer shall receive a grant of 1,000,000 options to
acquire Employer's common stock, subject to the terms and conditions of Employer's stock option plans. The opportunity for additional option grants will be reviewed at least annually at the discretion
of the Chief Executive Officer. Officer acknowledges that he will be a Section 16 executive officer of Employer and will be subject to the trading restrictions applicable to "Designated
Individuals" under Employer's Stock Trading Policy in effect from time to time. 

        (d)    Country Club Membership.    During the Term, Officer shall be entitled to payment of the dues for one country
club suitable for use in furthering the business interests of Employer. 

        (e)    Use of Aircraft.    During the Term, Officer shall have professional and personal use of Employer's
Citation X or Lear 45 corporate aircraft, subject to availability, with such use to be determined in accordance with Employer's policy for security of executives. 

        5.    Termination Benefits.    Employer shall provide to Officer the applicable termination benefits and/or payments
set forth below. 

        (a)    Termination by Resignation, Disability or Death.    This Agreement shall terminate upon Officer's voluntary
resignation, disability or death, and Officer shall be entitled to only Base Salary payable
through the date of termination and those benefits and payments he is entitled to receive under Employer's applicable controlling benefit plans and policies. Officer shall not be entitled to any
severance or like payments. 

        (b)    Termination for Cause.    If Employer terminates Officer's employment for Cause, then Officer shall be entitled
to only Base Salary payable through the date of termination and those benefits and payments he is entitled to receive under the applicable controlling benefit plans and policies. Officer shall not be
entitled to any severance or like payments. The term "Cause" shall mean Officer (i) breaches Section 6 of this Agreement or any other material term of this Agreement; (ii) is
convicted by a court of competent jurisdiction of a felony; (iii) refuses, fails or neglects to perform his duties under this Agreement in a manner that is materially detrimental to the
business or reputation of Employer; (iv) engages in illegal, unethical or other wrongful conduct that is materially detrimental to the business or reputation of Employer; or (v) develops
or pursues interests materially adverse to Employer; provided, however, that in the case of clauses (i), (iii), or (v), no such termination shall be
effective unless (A) Employer shall have given Officer 30 days prior written notice of and opportunity to cure any conduct or deficiency in performance by Officer that Employer believes
justifies Officer's termination under this Section 5(b); and 

2

 

(B) Officer shall not have cured such non-compliant conduct or performance during such notice period. Employer and Officer may agree to waive the foregoing requirement of
30 days notice and opportunity to cure in the case of termination under clauses (i), (iii) or (v) above. 

        (c)    Termination without Cause.    If Employer terminates this Agreement without Cause, it shall provide Officer
with the following termination benefits: (i) 30 days prior written notice of Employer's intention to terminate this Agreement without Cause; (ii) a lump sum payment equal to three
(3) years of Officer's Base Salary then in effect; (iii) a lump sum payment equal to any portion of any bonus accrued for Officer on Employer's books through the date of termination;
(iv) continued coverage under Employer's standard and executive benefit plans for three (3) years in accordance with the terms of the applicable plans; provided, if the terms of the
applicable plan do not permit continued coverage, then Employer shall pay to Officer the value of the applicable benefits in lump sum upon termination of employment; and (v) the applicable
stock option plan shall control the treatment of Officer's unexercised stock options, if any. As a condition precedent to receiving the payments and benefits described in this Section 5(c),
Officer shall be required to execute a full release of all claims for the benefit of Employer in a form provided by Employer. Upon execution of this release, Employer shall provide the payments and
benefits described in this Section 5(c) within 10 business days. 

        (d)    Termination Following a Change in Control.    

        (i)    Definitions.    For purposes of this Agreement, the term "Change in Control" shall have the same definition of
"Change in Control" contained in the Caremark Rx, Inc. 1998 Stock Option Plan, as amended from time to time. The term "Successor Employer" shall refer to the surviving corporation or entity
following a Change in Control of Employer. The term "Direct Competitor" shall mean a company engaged in business activities that directly compete with Employer's business activities at the time of the
Change in Control. 

        (ii)    Change in Control Involving Direct Competitor.    During the first year following a Change in Control
involving a Direct Competitor, Officer may elect to terminate his employment by giving 30 days prior written notice to Successor Employer. Notwithstanding the foregoing, Officer agrees not to
terminate his employment until at least 6 months after the Change in Control if Successor Employer has notified Officer in writing within 10 business days following the Change in Control that
it would like Officer to remain employed for a 6-month transition period. 

        (iii)    Change in Control Not Involving Direct Competitor.    During the first 6 months following a Change in
Control not involving a Direct Competitor, Officer may provide Successor Employer with a written request that Successor Employer acknowledge and confirm in writing that it has assumed all of
Employer's obligations under this Agreement. If Successor Employer fails to timely provide such written confirmation within 60 days of receipt of Officer's written request, then Officer shall
be deemed to be terminated by Successor Employer at the end of such 60-day period. 

        (iv)    By Successor Employer.    Successor Employer may terminate this Agreement following a Change in Control by
giving 30 days prior written notice to Officer. 

        (v)    Benefits.    Upon any termination of this Agreement following a Change in Control, whether by Officer under
(ii) above or by Successor Employer under (iii) or (iv) above, Officer shall receive the following termination benefits: (A) a lump sum payment equal to three
(3) years of Officer's current base salary; (B) a lump sum payment equal to three (3) years of Officer's current annual incentive bonus; (C) continued coverage under
Employer's standard and executive benefit plans for three (3) years in accordance with the terms of the applicable plans; provided, if the terms of the applicable plan do not permit 

3

 

continued coverage, then Successor Employer shall pay to Officer the value of the applicable benefits in lump sum upon termination of employment; and (D) the applicable stock option plan shall
control the treatment of Officer's unexercised stock options, if any. As a condition precedent to receiving the payments and benefits described in this Section 5(d), Officer shall be required
to execute a full release of all claims for the benefit of Successor Employer in a form provided by Successor Employer. Upon execution of this release, Successor Employer shall provide the payments
and benefits described in this Section 5(d) within 10 business days. 

        (e)    Termination for Good Reason.    If Officer terminates this Agreement for Good Reason, Employer shall provide
Officer with the following termination benefits: (i) a lump sum payment equal to three (3) years of Officer's Base Salary then in effect; (ii) a lump sum payment equal to any
portion of any bonus accrued for Officer on Employer's books through the date of termination; (iii) continued coverage under Employer's standard and executive benefit plans for three
(3) years in accordance with the terms of the applicable plans; provided, if the terms of the applicable plan do not permit continued coverage, then Employer shall pay to Officer the value of
the applicable benefits in lump sum upon termination of employment; and (iv) the applicable stock option plan shall control the treatment of Officer's unexercised stock options, if any. The
term "Good Reason" shall mean Officer's duties as described in
Section 2 are materially diminished by Employer without Officer's prior written consent; provided, however, no such termination for Good Reason
shall be effective unless (A) Officer shall have given Employer 30 days prior notice of and opportunity to cure any action by Employer that Officer believes justifies Officer's
termination under this Section 5(e); and (B) Employer shall not have cured such non-compliant action during such notice period. Employer and Officer may agree to waive the
foregoing requirement of 30 days notice and opportunity to cure in the case of termination under this Section 5(e). As a condition precedent to receiving the payments and benefits
described in this Section 5(e), Officer shall be required to execute a full release of all claims for the benefit of Employer in a form provided by Employer. Upon execution of this release,
Employer shall provide the payments and benefits described in this Section 5(e) within 10 business days. 

        6.    Restrictive Covenants.    

        (a)    Definitions.    The following terms shall have the meanings set forth below: 

	(i)
	"Caremark Parties" means Employer and its subsidiaries and affiliates.

	(ii)
	"Confidential Information" means any data or information (other than Trade Secrets) that is valuable to
any of the Caremark Parties (or, if owned by someone else, is valuable to that third party) and not generally known to the public or to competitors in the pharmaceutical services industry, including,
but not limited to, any non-public information (regardless of whether in writing or retained as personal knowledge) pertaining to research and development; product costs and processes;
shareholder information; pricing, costs or profit factors; quality programs; strategic planning; business operations; financial condition; annual budget and long-range business plans;
marketing plans and methods; contracts and bids; and personnel. The term "Confidential Information" does not include information that (A) has become generally available to the public by the act
of one who has the right to disclose such information without violating any right of the party to which such information pertains, or (B) is obtained by Officer on a
non-confidential basis from a third party and which Officer is are not prohibited from disclosing by a legal, contractual or fiduciary duty owed to any of the Caremark Parties.

	(iii)
	"Restricted Business" means the business of providing pharmaceutical services (including, without
limitation, prescription benefit management services, specialty distribution services and disease management services) to employers, insurance companies, unions, government employee groups,
governmental entities, government program beneficiaries, 

4

 

managed
care organizations, coalitions, other sponsors of health benefit plans and/or individuals. 

	(iv)
	"Restricted Period" means during the Term and for a period of 3 years after the end of the Term
of this Agreement for purposes of Sections 6(d), (e) and (f) and for a period of 5 years after the end of the Term of this Agreement for purposes of Sections 6(b) and (c).

	(v)
	"Territory" means the United States and Puerto Rico, or such lesser territory in which the Caremark
Parties are actually conducting business at the time of enforcement.

	(vi)
	"Trade Secret" means information including, but not limited to, any technical or nontechnical data,
formula, pattern, compilation, program, device, method, technique, drawing, process (including, without limitation, any process relating to customer bids or requests for proposal), financial data,
financial plan, product plan, list of actual or potential customers or suppliers or other information similar to any of the foregoing, which (A) derives independent economic value, actual or
potential, from not being generally known to, and not being readily ascertainable by proper means by, other persons who can derive economic value from its disclosure or use and (B) is the
subject of efforts that are reasonable under the circumstances to maintain its secrecy. 

        (b)    Trade Secrets.    Officer hereby covenants and agrees that he will hold in confidence all Trade Secrets of the
Caremark Parties and will not disclose, publish or make use of such Trade Secrets at any time after the Effective Date, except as is necessary to perform duties assigned him or as specifically
authorized in writing by Employer's Chief Executive Officer, for as long as the information remains a Trade Secret. 

        (c)    Confidential Information.    Officer hereby covenants and agrees that, during the Restricted Period, he will
hold in confidence all Confidential Information of the Caremark Parties and will not disclose, publish or make use of such Confidential Information, except as is necessary to perform duties assigned
to him or as specifically authorized in writing by Employer's Chief Executive Officer. 

        (d)    Nonsolicitation of Employees.    Officer hereby covenants and agrees that he will not, during the Restricted
Period, either directly or indirectly, on his own behalf or on behalf of others, solicit or divert or attempt to solicit or divert for employment or other engagement to provide services, any person
who, as of the date of this Agreement or at any time during the Term, is or was employed by or engaged to provide services for any of the Caremark Parties. 

        (e)    Nonsolicitation of Customers and Suppliers.    Officer hereby covenants and agrees that he will not, within the
Territory and during the Restricted Period, solicit or attempt to solicit on his own behalf or on behalf of any business engaged in the Restricted Business, any person or entity who, as of the
Effective Date or at any time during the Term, is or was a customer or supplier to any of the Caremark Parties or is an actively sought prospective customer or supplier of any of the Caremark Parties. 

        (f)    Noncompetition.    Officer hereby covenants and agrees that he will not, within the Territory and during the
Restricted Period, either directly or indirectly, on his own behalf or in the service or on behalf of
others, engage in, establish, have any equity or profit interest in, make any loan to or for the benefit of, or render services (of any product development or design, operations, advertising,
marketing, sales, administrative, logistics, supervisory, strategic planning, management or consulting nature) to any business, entity or individual engaged in the Restricted Business. 

Notwithstanding
anything in this Section 6 to the contrary, nothing herein shall prohibit Officer, in the aggregate, from owning or acquiring a passive investment of one percent (1%) or less of
the 

5

 

issued and outstanding capital stock of a publicly-held corporation engaged in the Restricted Business in the Territory, provided that Officer does not, directly or indirectly,
participate in the management or operation of such publicly-held corporation or organization. 

        (g)    State Law.    The restrictions set forth in Sections 6(a) and (b) are in addition to and not in lieu of
protections afforded to trade secrets and confidential information under applicable state law. This Agreement shall not be interpreted as diminishing or otherwise limiting Employer's right under
applicable state law to protect its trade secrets and confidential information. 

        7.    Return of Materials.    Upon termination of this Agreement, Officer will deliver to Employer all memoranda,
notes, records, manuals or other documents (including, but not limited to, written instruments, voice or data recordings, or computer tapes, disks or files of any nature), including all copies of such
materials and all documentation prepared or produced in connection therewith, pertaining to the businesses of the Caremark Parties or containing Trade Secrets or Confidential Information, whether made
or compiled by Officer or otherwise made available to Officer. 

        8.    Reasonable and Necessary Restrictions.    Officer acknowledges that the restrictions, prohibitions and other
provisions in Section 6, including the definitions of Restricted Business, Restricted Period and Territory, are reasonable, fair and equitable in scope, terms and duration, are necessary to
protect the legitimate business interests of Employer, and are a material inducement to Employer to enter into this Agreement. Officer covenants that he will not challenge the enforceability of this
Agreement nor will he raise any equitable defense to its enforcement. 

        9.    Specific Performance.    Officer acknowledges that the obligations undertaken by him pursuant to this Agreement
are unique and that Employer will likely have no adequate remedy at law if he fails to perform any of those obligations. Officer therefore confirms that Employer has the right to specific performance
of the terms of this Agreement and that this right is essential to protect the rights and interests of Employer and to protect the benefit of Employer's bargain with Officer. Accordingly, in addition
to any other remedies that Employer may have at law or in equity, Employer shall have the right to have all obligations, covenants, agreements and other provisions of this Agreement specifically
performed by Officer and the right to obtain preliminary and permanent injunctive relief to secure specific performance and to prevent a breach or contemplated breach of this Agreement by Officer. 

        10.    Survival.    All rights and obligations of Employer and Officer under this Agreement shall cease upon
termination of this Agreement, except the obligations of the parties set forth in Sections 5, 6, 7, 8 and 9 hereof shall survive termination of this Agreement. 

        11.    Miscellaneous.    

        (a)    Succession.    This Agreement shall inure to the benefit of and shall be binding upon Employer, its successors
and assigns. The obligations and duties of Officer under this Agreement are personal and not assignable. 

        (b)    Notices.    Any notice, request, instruction or other document to be given under this Agreement by any party to
the others shall be in writing and delivered in person or by courier, telegraphed, telexed or sent by facsimile transmission or mailed by certified mail, postage prepaid, return receipt requested
(such mailed notice to be effective on the date of such receipt is acknowledged), as follows: 

If
to Officer: 

A.D.
Frazier, Jr.

200 East Delaware Place

#4D

Chicago, Illinois 60611 

6

 

If
to Employer: 

Caremark
Rx, Inc.

3000 Galleria Tower

Suite 1000

Birmingham, Alabama 35244

Attn.: Chief Executive Officer 

        or
to such other place as either party may designate as to itself by written notice to the other. 

        (c)    Waiver; Amendment.    No provision of this Agreement may be waived except by a written agreement signed by the
waiving party. The waiver of any term or of any condition of this Agreement shall not be deemed to constitute the waiver of any other term or condition. This Agreement may be amended only by a written
agreement signed by the parties. 

        (d)    Governing Law.    This Agreement shall be construed under and governed by the internal laws of the State of
Alabama, without regard to Alabama's choice of law rules. 

        (e)    Arbitration.    Any disputes or controversies arising under this Agreement shall be settled by arbitration in
Birmingham, Alabama in accordance with the rules of the American Arbitration Association relating to the arbitration of commercial disputes. The determination and findings of such arbitrators shall be
final and binding on all parties and may be enforced, if necessary, in the courts of the State of Alabama. 

        (f)    Captions.    Captions have been inserted solely for the convenience of reference and in no way define, limit or
describe the scope or substance of any provisions of this Agreement. 

        (g)    Entire Agreement.    This Agreement, and the other documents and agreements referenced herein, represent the
entire agreement of the parties hereto relating to the subject matter hereof. 

        (h)    Severability.    If this Agreement shall for any reason be or become unenforceable by any party, this Agreement
shall thereupon terminate and become unenforceable by the other party as well. In all other respects, if any provision of this Agreement is held invalid or unenforceable, the remainder of this
Agreement shall nevertheless remain in full force and effect and, if any provision is held invalid or unenforceable with respect to particular circumstances, it shall nevertheless remain in full force
and effect in all other circumstances. 

        IN
WITNESS WHEREOF, the parties have executed this Agreement as of the date first above written. 

	CAREMARK RX, INC.	 	 
	

 	
 	

 
	

/s/  E. MAC CRAWFORD      
 E. Mac Crawford

Chairman and CEO	
 	

/s/  A.D. FRAZIER, JR.      
 A.D. Frazier, Jr.

7

QuickLinks

Exhibit 10.1

EMPLOYMENT AGREEMENT

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