Item 5.02. Departure of Directors or Certain Officers; Election of Directors; Appointment of Certain Officers; Compensatory Arrangements of Certain Officers.

Amendments to Perisano and Dionne's Employment Agreements and Robertson's Letter
Agreement

On December 30, 2008, iParty Corp., a Delaware corporation (the "Company") entered into an amendment to Mr. Perisano and Ms. Dionne's employment agreements and entered into an amendment to Mr. Robertson's letter agreement (collectively, the "Amendments"). The Amendments alter these agreements to conform certain defined terms, including "change of control" and "good reason" for Mr. Perisano and Ms. Dionne and the timing of certain payments, including for "key employees", to the final rules under Section 409A of the Internal Revenue Code of 1986, as amended (the "Code). Section 409A of the Code covers a wide range of nonqualified deferred compensation plans and arrangements and imposes a number of restrictions on such plans and arrangements for participants which are necessary to avoid premature taxation and additional tax penalties, which could be imposed upon service providers. No other material amendments were made to their agreements.

The foregoing descriptions of the Amendments are not complete and are qualified in their entirety by reference to the respective executive officers' Amendments, copies of which are filed herewith as Exhibits 10.1, 10.2 and 10.3, and are incorporated herein by reference.

Item 9.01. Financial Statements and Exhibits.

(d) Exhibits. The following exhibits are being filed herewith:

10.1 First Amendment dated December 30, 2008 to Employment Agreement by and between iParty Corp. and Sal Perisano.
10.2 First Amendment dated December 30, 2008 to Employment Agreement by and between iParty Corp. and Dorice Dionne.
10.3 First Amendment dated December 30, 2008 to Letter Agreement dated March 21, 2007 by and between iParty Corp. and David E. Robertson.