Exhibit 10.3
iParty Corp.
OPTION CANCELLATION
AGREEMENT
THIS AGREEMENT, made as of the
eighth day of December, 2006 (the “Cancellation Date”),
between iParty Corp., a Delaware corporation
(“iParty”), and Dorice Dionne (the
“Grantee”).
WHEREAS, there are approximately
300,000 shares available for future issuance under the iParty
Amended and Restated 1998 Stock Incentive and Nonqualified Stock
Option Plan (the “Plan”), which iParty’s Board of
Directors (the “Board”) has determined to be an
insufficient number of shares for future issuance in respect of
iParty’s anticipated needs regarding employee, management,
executive, and director compensation;
WHEREAS, iParty has granted Grantee,
among other stock option grants, a stock option on March 29, 1999
exercisable for 337,500 shares of iParty’s common stock at an
exercise price of $3.75 per share;
WHEREAS, the Grantee has offered to
cancel the stock option grant described above exercisable for said
337,500 shares with an exercise price equal to $3.75 per share
without any further consideration apart from that that would inure
or arise from the fact that iParty would thereby be afforded the
ability and opportunity to increase the number of shares available
for future issuance under the Plan in respect of iParty’s
anticipated requirements for employee, management, executive, and
director compensation; and
WHEREAS, the Grantee and iParty
hereby acknowledge and recognize that while the Grantee shall
remain eligible for consideration for future grants to be made by
iParty under the Plan, each of
