iParty Corp. Independent Director Compensation Arrangements (June 2006)

Summary

iParty Corp. has established compensation terms for its independent directors—Daniel DeWolf, Frank Haydu, Eric Schindler, and Joseph Vassalluzzo—beginning June 7, 2006. Each director will receive stock options to purchase 25,000 shares at $0.36 per share, vesting quarterly over one year. Additionally, each director will be paid $25,000 in cash, distributed in quarterly installments over the year. The audit committee chairman, Frank Haydu, will receive an extra $10,000 for his role. These arrangements are governed by iParty's 1998 Stock Option Plan.

EX-10.1 2 a5166307ex101.txt EXHIBIT 10.1 Exhibit 10.1 iParty Corp. COMPENSATION ARRANGEMENTS WITH INDEPENDENT DIRECTORS FOR SERVICE COMMENCING AFTER ELECTION AT THE ANNUAL MEETING OF STOCKHOLDERS JUNE 7, 2006 Equity Compensation Each independent director (i.e., each of Daniel DeWolf, Frank Haydu, Eric Schindler, and Joseph Vassalluzzo) shall be granted an option as of June 7, 2006 exercisable for the purchase of 25,000 shares of iParty's common stock in respect of his service as a director. Each such option shall have an exercise price equal to $0.36 per share, the market price of iParty's common stock at the close of business on the grant date (i.e., June 7, 2006) and shall vest quarterly in equal parts over one year, vesting in full on June 7, 2007. Each of these stock option grants shall be made pursuant to iParty's Amended and Restated 1998 Incentive and Non-qualified Stock Option Plan. Cash Compensation Each independent director shall be paid $25,000 in cash, payable in equal quarterly installments, for his service as a director for the year beginning on the date of his election at the stockholders meeting on June 7, 2006. The chairman of the audit committee, Mr. Haydu, shall be paid an additional $10,000 in cash for serving as chairman of the audit committee.