Exhibit 10.9

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT (the  "Agreement")  is being made as of this 26th day of
March,  2002 between iPARTY CORP., a Delaware  corporation  having its principal
offices at 1457 VFW Parkway, West Roxbury,  Massachusetts 02132 (the "Company"),
and DORICE  DIONNE,  an  individual  residing  at 288 Huron  Avenue,  Cambridge,
Massachusetts 02138 ("Dionne").

                              W I T N E S S E T H :
                              - - - - - - - - - -

         WHEREAS,  the Company desires to employ Dionne and Dionne desires to be
employed by the Company as its Senior Vice President -  Merchandising,  upon the
terms and conditions contained herein.

         NOW, THEREFORE,  in consideration of the mutual premises and agreements
contained herein,  and intending to be legally bound hereby,  the parties hereto
agree as follows:

         1.     Nature of  Employment;  Term of  Employment.  The Company hereby
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employs  Dionne  and  Dionne  agrees to serve the  Company  as its  Senior  Vice
President - Merchandising upon the terms and conditions  contained herein, for a
term commencing as of March 31, 2002 and continuing  until the close of business
on March 30, 2004 (unless  terminated  sooner pursuant to the terms hereof,  the
"Employment Term").

         2.     Duties  and Powers as  Employee.  During  the  Employment  Term,
                -------------------------------
Dionne  shall  be  employed  by the  Company  as its  Senior  Vice  President  -
Merchandising.  Dionne agrees to devote substantially all her full working time,
energy and efforts to the business of the Company.  In performance of her duties
to the Company,  Dionne shall be subject to the direction of the Chief Executive
Officer of the Company.  She shall be based in West Roxbury,  Massachusetts  and
shall be available to travel as the needs of the Company require.

         3.     Compensation.
                ------------

                (a) As  compensation  for her  services  hereunder,  during  the
Employment Term, the Company shall pay Dionne a base salary (the "Base Salary"),
payable in equal semi-monthly installments in arrears, at the annual rate of One
Hundred  Fifty  Thousand  Dollars  ($150,000).  Additionally,  Dionne  shall  be
entitled to participate in the present or future  employee  benefit plans of the
Company provided that she meets the eligibility requirements therefor.

                (b) In addition to the Base Salary provided  herein,  Dionne may
be entitled to receive an annual  performance bonus payment as determined in the
sole discretion of the  Compensation  Committee of the Board of Directors of the
Company.  Without  limiting the  generality of the foregoing,  such  performance
bonus  may be paid in stock,  stock  options,  restrictive  stock or cash or any
combination of the foregoing.


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         4.     Expenses;  Vacations.  Dionne shall be entitled to reimbursement
                --------------------
for reasonable travel and other out-of-pocket  expenses  necessarily incurred in
the performance of her duties hereunder, upon submission and approval of written
statements  and bills in  accordance  with the then  regular  procedures  of the
Company.  Dionne  shall be  entitled  to vacation  time in  accordance  with the
regular  procedures  of the  Company  governing  senior  executive  officers  as
determined  from time to time by the Company's  Board of Directors.  Dionne also
shall be eligible to participate in all medical,  health and disability  benefit
programs provided to senior executives of the Company.

         5.     Representations  and Warranties of Employee.  Dionne  represents
                -------------------------------------------
and  warrants to the Company  that (a) Dionne is under no  contractual  or other
restriction  or  obligation  which is  inconsistent  with the  execution of this
Agreement,  the performance of her duties hereunder,  or the other rights of the
Company hereunder; and (b) Dionne is under no physical or mental disability that
would hinder her performance of duties under this Agreement.

         6.     Non-Competition.  Dionne agrees that she will not (a) during the
                ---------------
period she is  employed  by the  Company  engage in, or  otherwise  directly  or
indirectly  be  employed  by,  or act as a  consultant  or  lender  to,  or be a
director,  officer,  employee,  owner or  partner  of,  any  other  business  or
organization that is or shall then be competing with the Company,  and (b) for a
period of one year after she ceases to be employed by the  Company,  directly or
indirectly compete with or be engaged in the same business as the Company, or be
employed  by, or act as  consultant  or lender  to, or be a  director,  officer,
employee,  owner or partner of, any business or organization  which, at the time
of such  cessation,  competes  with or is  engaged in the same  business  as the
Company,  except that in each case the  provisions of this Section 6 will not be
deemed  breached merely because Dionne owns not more than five percent (5.0%) of
the  outstanding  common  stock  of a  corporation,  if,  at  the  time  of  its
acquisition by Dionne, such stock is listed on a national  securities  exchange,
is reported on NASDAQ, or is regularly traded in the over-the-counter  market by
a member of a national securities exchange.

         7.     Confidential  Information.  All confidential  information  which
                -------------------------
Dionne may now possess,  may obtain  during the  Employment  Term, or may create
prior to the end of the period she is employed by the  Company,  relating to the
business of the Company or of any customer or supplier of the Company  shall not
be published, disclosed, or made accessible by her to any other person, firm, or
corporation  during the Employment Term or any time thereafter without the prior
written  consent of the Company.  Dionne  shall return all tangible  evidence of
such  confidential  information to the Company prior to or at the termination of
her employment.

         8.     Termination.
                -----------

                (a)  Notwithstanding  anything herein contained,  if on or after
the  date  hereof  and  prior  to the  end of the  Employment  Term,  Dionne  is
terminated  "For Cause" (as defined below) then the Company shall have the right
to give notice of termination of Dionne's services  hereunder as of a date to be
specified  in such notice,  and this  Agreement  shall  terminate on the date so

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<PAGE>

specified. Termination "For Cause" shall mean Dionne shall (i) be convicted of a
felony crime, (ii) commit any act or omit to take any action in bad faith and to
the  detriment  of  the  Company,   (iii)   intentionally  fail  to  follow  any
commercially  reasonable and lawful direction of the Chief Executive  Officer or
Board of  Directors,  (iv) commit an act of fraud  against the  Company,  or (v)
breach any term of this  Agreement  and fail to correct  such breach  within ten
(10) days after written notice of commission thereof.

                (b) In the event that  Dionne  shall be  physically  or mentally
incapacitated  or disabled or otherwise  unable  fully to  discharge  her duties
hereunder, with reasonable accommodation, for a period of nine months, then this
Agreement shall  terminate upon 30 (thirty) days' written notice to Dionne,  and
no further  compensation shall be payable to Dionne,  except for any accrued and
unpaid  Base  Salary and bonus,  if any, as  contemplated  under  Section 3, any
accrued and unpaid expenses as contemplated under Section 4 and as may otherwise
be provided under any disability insurance policy, if any.

                (c) In the event  that  Dionne  shall die,  then this  Agreement
shall terminate on the date of Dionne's death, and no further compensation shall
be payable to Dionne,  except for any  accrued and unpaid Base Salary and bonus,
if any, as  contemplated  under  Section 3, any  accrued and unpaid  expenses as
contemplated  under  Section  4 and as  may  otherwise  be  provided  under  any
insurance policy or similar instrument.

                (d) In the event that this  Agreement is terminated  "For Cause"
pursuant to Section 8(a), then Dionne shall be entitled to receive only the Base
Salary to the date on which termination shall take effect.

                (e) In the event  that the  Company  terminates  Dionne  for any
reason other than as provided  under  Section  8(a),  (b), (c) or (d), then this
Agreement  shall  terminate  upon thirty (30) days' written notice to Dionne and
the Company  shall be  obligated  to pay to Dionne an amount equal to any unpaid
expenses as contemplated under Section 4 and a severance payment equal to twelve
(12) months  salary at the Base  Salary,  payable in twelve  (12) equal  monthly
installments.  If this  Agreement  is not  renewed at the end of the  Employment
Term,  such  non-renewal  shall not be deemed a  termination  of this  Agreement
without cause.

                (f) Nothing contained in this Section 8 shall be deemed to limit
any other right the Company may have to terminate Dionne's employment  hereunder
upon any ground permitted by law.

         9.     Merger,  Etc.  In  the  event  of a  future  disposition  of the
                ------------
properties and business of the Company, substantially as an entirety, by merger,
consolidation, sale of assets, sale of stock, or otherwise, then the Company may
elect to assign this Agreement and all of its rights and  obligations  hereunder
to the acquiring or surviving entity.

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         10.    Survival.   The  covenants,   agreements,   representations  and
                --------
warranties  contained  in or made  pursuant  to  this  Agreement  shall  survive
Dionne's termination of employment, irrespective of any investigation made by or
on behalf of any party.

         11.    Modification. This Agreement sets forth the entire understanding
                ------------
of the  parties  with  respect to the  subject  matter  hereof,  supersedes  all
existing  agreements  between them concerning  such subject  matter,  and may be
modified only by a written instrument duly executed by each party.

         12.    Notices. Any notice or other communication required or permitted
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to be given hereunder shall be in writing and shall be mailed by certified mail,
return receipt  requested,  or delivered against receipt to the party to whom it
is to be given at the  address of such party set forth in the  preamble  to this
Agreement (or to such other address as the party shall have furnished in writing
in accordance  with the  provisions of this Section 12). In the case of a notice
to the Company,  a copy of such notice (which copy shall not constitute  notice)
shall be delivered to Akin, Gump,  Strauss,  Hauer & Feld,  L.L.P.,  590 Madison
Avenue, New York, New York, 10022, Attn. Robert S. Matlin.  Notice to the estate
of Dionne shall be sufficient if addressed to Dionne as provided in this Section
12. Any notice or other  communication  given by certified  mail shall be deemed
given at the time of  certification  thereof,  except  for a notice  changing  a
party's address which shall be deemed given at the time of receipt thereof.

         13.    Waiver.  Any waiver by either party of a breach of any provision
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of this  Agreement  shall not operate as or be  construed  to be a waiver of any
other breach of such  provision or of any breach of any other  provision of this
Agreement. The failure of a party to insist upon strict adherence to any term of
this  Agreement  on one or more  occasions  shall not be  considered a waiver or
deprive that party of the right  thereafter  to insist upon strict  adherence to
that term or any other term of this Agreement. Any waiver must be in writing.

         14.    Binding  Effect.  Dionne's  rights  and  obligations  under this
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Agreement  shall not be  transferable  by assignment  or otherwise,  such rights
shall not be subject to encumbrance or the claims of Dionne's creditors, and any
attempt  to do any of the  foregoing  shall  be  void.  The  provisions  of this
Agreement shall be binding upon and inure to the benefit of Dionne and her heirs
and personal representatives, and shall be binding upon and inure to the benefit
of the Company and its successors and those who are its assigns under Section 9.

         15.    Headings.  The  headings  in this  Agreement  are solely for the
                --------
convenience  of reference  and shall be given no effect in the  construction  or
interpretation of this Agreement.

         16.    Counterparts;  Governing  Law. This Agreement may be executed in
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any number of counterparts,  each of which shall be deemed an original,  but all
of which together  shall  constitute  one and the same  instrument.  It shall be
governed by, and  construed  in  accordance  with,  the laws of the State of New
York, without giving effect to the rules governing the conflicts of laws.


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


                                                iPARTY CORP.


                                                By:   /s/ Daniel I. DeWolf
                                                      --------------------------
                                                      Name:  Daniel I. DeWolf
                                                      Title: Secretary



                                                /s/ Dorice Dionne
                                                --------------------------------
                                                Dorice Dionne


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