Document:

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                                                                    EXHIBIT 10.1

                            INDEMNIFICATION AGREEMENT

      This Indemnification Agreement (this "Agreement") is made as of
____________ __, 20___ by and between Celebrate Express, Inc. (the "Company"),
and ____________________________ ("Indemnitee").

                                    RECITALS

      A.    Indemnitee is an officer or director of the Company and in such
capacity is performing valuable services for the Company.

      B.    The Company and Indemnitee recognize the difficulty in obtaining
directors' and officers' liability insurance, the significant cost of such
insurance and the general reduction in the coverage of such insurance.

      C.    The Company and Indemnitee further recognize the substantial
increase in litigation subjecting officers and directors to expensive litigation
risks at the same time that such liability insurance has been severely limited.

      D.    As of the date hereof, the Company has provisions for
indemnification of its directors in Article V of its Amended and Restated
Articles of Incorporation (the "Articles of Incorporation") and Article X of its
Amended and Restated Bylaws (the "Bylaws") which provide for indemnification of
the Company's directors and officers to the fullest extent permitted by the
Washington Business Corporation Act (the "Statute").

      E.    The Articles of Incorporation, Bylaws and the Statute specifically
provide that they are not exclusive, and thereby contemplate that contracts may
be entered into between the Company and the members of its Board of Directors
and its officers with respect to indemnification of such directors and officers.

      F.    The Bylaws provide that the Company may maintain, at its expense,
insurance to protect itself and any of its directors and officers against
liability asserted against such persons incurred in such capacity whether or not
the Company has the power to indemnify such persons against the same liability
under Section 23B.08.510 or .520 of the Statute or a successor statute.

      G.    In order to induce Indemnitee to continue to serve as an officer
and/or director, as the case may be, of the Company, the Company has agreed to
enter into this Agreement with Indemnitee.

                                    AGREEMENT

      NOW, THEREFORE, in consideration of the recitals above, the mutual
covenants and agreements herein contained, and Indemnitee's continued service as
an officer and/or director, as the case may be, of the Company after the date
hereof, the parties to this Agreement agree as follows:

      1.    INDEMNITY OF INDEMNITEE

            (a)   Scope. The Company agrees to hold harmless and indemnify
Indemnitee to the fullest extent permitted by law, notwithstanding that such
indemnification is not specifically authorized by this Agreement, the Company's
Articles of Incorporation, the Bylaws, the Statute or otherwise. In the

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event of any change, after the date of this Agreement, in any applicable law,
statute or rule regarding the right of a Washington corporation to indemnify a
member of its board of directors or an officer, such changes, to the extent that
they would expand Indemnitee's rights hereunder, shall be within the purview of
Indemnitee's rights and the Company's obligations hereunder, and, to the extent
that they would narrow Indemnitee's rights hereunder, shall be excluded from
this Agreement; provided, however, that any change that is required by
applicable laws, statutes or rules to be applied to this Agreement shall be so
applied regardless of whether the effect of such change is to narrow
Indemnitee's rights hereunder.

            (b)   Nonexclusivity. The indemnification provided by this Agreement
shall not be deemed exclusive of any rights to which Indemnitee may be entitled
under the Company's Articles of Incorporation, the Bylaws, any agreement, any
vote of shareholders or disinterested directors, the Statute, or otherwise,
whether as to action in Indemnitee's official capacity or otherwise.

            (c)   Additional Indemnity. If Indemnitee was or is made a party, or
is threatened to be made a party, to or is otherwise involved (including,
without limitation, as a witness) in any Proceeding (as defined below), the
Company shall hold harmless and indemnify Indemnitee from and against any and
all losses, claims, damages, liabilities, expenses (including attorneys' fees),
judgments, fines, ERISA excise taxes or penalties, amounts paid in settlement
(if such settlement is approved in advance by the Company, which approval shall
not be unreasonably withheld) actually and reasonably incurred by Indemnitee in
connection with such Proceeding if Indemnitee acted in good faith and in a
manner Indemnitee reasonably believed to be in or not opposed to the best
interests of the Company, and, with respect to any criminal action or
proceeding, had no reasonable cause to believe Indemnitee's conduct was unlawful
(collectively, "Damages").

            (d)   Definition of Proceeding. For purposes of this Agreement,
"Proceeding" shall mean any actual, pending or threatened action, suit, claim or
proceeding, whether civil, criminal, administrative or investigative (including
actions, suits, or proceedings brought by or in the right of the Company) and
whether formal or informal, in which Indemnitee is, was or becomes involved as a
party or otherwise, by reason of the fact that Indemnitee is or was a director,
officer, employee or agent of the Company or that, being or having been such a
director, officer, employee or agent, Indemnitee is or was serving at the
request of the Company as a director, officer, employee, trustee or agent of
another corporation or of a partnership, joint venture, trust or other
enterprise (collectively a "Related Company"), including service with respect to
an employee benefit plan, whether the basis of such proceeding is alleged action
(or inaction) by Indemnitee in an official capacity as a director, officer,
employee, trustee or agent or in any other capacity while serving as a director,
officer, employee, trustee or agent; provided, however, that, except with
respect to an action to enforce the provisions of this Agreement, Proceeding
shall not include any action, suit, claim or proceeding instituted by or at the
direction of Indemnitee unless such action, suit, claim or proceeding is or was
authorized by the Company's Board of Directors.

            (e)   Determination of Entitlement. In the event that a
determination of Indemnitee's entitlement to indemnification is required
pursuant to Section 23B.08.550 of the Statute or any successor thereto or
pursuant to other applicable law, the appropriate decision-maker shall make such
determination; provided, however, that Indemnitee shall initially be presumed in
all cases to be entitled to indemnification, that Indemnitee may establish a
conclusive presumption of any fact necessary to such a determination by
delivering to the Company a declaration made under penalty of perjury that such
fact is true and that, unless the Company shall deliver to Indemnitee written
notice of a determination that Indemnitee is not entitled to indemnification
within twenty (20) days of the Company's receipt of Indemnitee's initial written
request for indemnification, such determination shall conclusively be deemed

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to have been made in favor of the Company's provision of indemnification and the
Company hereby agrees not to assert otherwise.

            (f)   Survival. The indemnification provided under this Agreement
shall apply to any and all Proceedings, notwithstanding that Indemnitee has
ceased to be a director, officer, employee, trustee or agent of the Company or a
Related Company.

      2.    EXPENSE ADVANCES

            (a)   Generally. The right to indemnification of Damages conferred
by Section 1 shall include the right to have the Company pay Indemnitee's
expenses in any Proceeding as such expenses are incurred and in advance of such
Proceeding's final disposition (such right is referred to hereinafter as an
"Expense Advance"). Any Expense Advance to be made under this Agreement shall be
paid by the Company to Indemnitee within twenty (20) days following delivery of
a written request therefor by Indemnitee to the Company.

            (b)   Conditions to Expense Advance. The Company's obligation to
provide an Expense Advance is subject to the following conditions:

                  (i)   Undertaking. If the Proceeding arose in connection with
Indemnitee's service as a director or officer of the Company (and not in any
other capacity in which Indemnitee rendered service, including service to any
Related Company), then Indemnitee or his or her representative shall have
executed and delivered to the Company an undertaking, which need not be secured
and shall be accepted without reference to Indemnitee's financial ability to
make repayment, by or on behalf of Indemnitee to repay all Expense Advances if
and to the extent that it shall ultimately be determined by a final,
unappealable decision rendered by a court having jurisdiction over the parties
and the question that Indemnitee is not entitled to be indemnified for such
Expense Advance under this Agreement or otherwise.

                  (ii)  Cooperation. Indemnitee shall give the Company such
information and cooperation as it may reasonably request and as shall be within
Indemnitee's power.

                  (iii) Affirmation. Indemnitee shall furnish, upon request by
the Company and if required under applicable law, a written affirmation of
Indemnitee's good faith belief that any applicable standards of conduct have
been met by Indemnitee.

      3.    PROCEDURES FOR ENFORCEMENT

            (a)   Enforcement. In the event that a claim for indemnity, an
Expense Advance or otherwise is made hereunder and is not paid in full within
sixty days (twenty days for an Expense Advance) after written notice of such
claim is delivered to the Company, Indemnitee may, but need not, at any time
thereafter bring suit against the Company to recover the unpaid amount of the
claim (an "Enforcement Action").

            (b)   Presumptions in Enforcement Action. In any Enforcement Action
the following presumptions (and limitation on presumptions) shall apply:

                  (i)   The Company shall conclusively be presumed to have
entered into this Agreement and assumed the obligations imposed on it hereunder
in order to induce Indemnitee to continue as an officer and/or director, as the
case may be, of the Company;

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                  (ii)  Neither (i) the failure of the Company (including the
Company's Board of Directors, independent or special legal counsel or the
Company's shareholders) to have made a determination prior to the commencement
of the Enforcement Action that indemnification of Indemnitee is proper in the
circumstances nor (ii) an actual determination by the Company, its Board of
Directors, independent or special legal counsel or shareholders that Indemnitee
is not entitled to indemnification shall be a defense to the Enforcement Action
or create a presumption that Indemnitee is not entitled to indemnification
hereunder; and

                  (iii) If Indemnitee is or was serving as a director, officer,
employee, trustee or agent of a corporation of which a majority of the shares
entitled to vote in the election of its directors is held by the Company or in
an executive or management capacity in a partnership, joint venture, trust or
other enterprise of which the Company or a wholly owned subsidiary of the
Company is a general partner or has a majority ownership, then such corporation,
partnership, joint venture, trust or enterprise shall conclusively be deemed a
Related Company and Indemnitee shall conclusively be deemed to be serving such
Related Company at the request of the Company.

            (c)   Attorneys' Fees and Expenses for Enforcement Action. In the
event Indemnitee is required to bring an Enforcement Action, the Company shall
indemnify and hold harmless Indemnitee against all of Indemnitee's fees and
expenses in bringing and pursuing the Enforcement Action (including attorneys'
fees at any stage, including on appeal); provided, however, that the Company
shall not be required to provide such indemnity for such attorneys' fees or
expenses if a court of competent jurisdiction determines that each of the
material assertions made by Indemnitee in such Enforcement Action was not made
in good faith or was frivolous.

      4.    LIMITATIONS ON INDEMNITY; MUTUAL ACKNOWLEDGMENT

            (a)   Limitation on Indemnity. No indemnity pursuant to this
Agreement shall be provided by the Company:

                  (i)   On account of any suit in which a final, unappealable
judgment is rendered against Indemnitee for an accounting of profits made from
the purchase or sale by Indemnitee of securities of the Company in violation of
the provisions of Section 16(b) of the Securities Exchange Act of 1934 and
amendments thereto;

                  (ii)  For Damages that have been paid directly to Indemnitee
by an insurance carrier under a policy of officers' and directors' liability
insurance maintained by the Company;

                  (iii) On account of Indemnitee's conduct which is finally
adjudged to have been intentional misconduct, a knowing violation of law or the
RCW 23B.08.310 or any successor provision of the Statute, or a transaction from
which Indemnitee derived benefit in money, property or services to which
Indemnitee is not legally entitled; or

                  (iv)  If a final decision by a court having jurisdiction in
the matter shall determine that such indemnification is not lawful.

            (b)   Mutual Acknowledgment. The Company and Indemnitee acknowledge
that, in certain instances, federal law or public policy may override applicable
state law and prohibit the Company from indemnifying Indemnitee under this
Agreement or otherwise. For example, the Company and Indemnitee acknowledge that
the Securities and Exchange Commission (the "SEC") has taken the position that
indemnification is not permissible for liabilities arising under certain federal
securities laws,

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and federal legislation prohibits indemnification for certain ERISA violations.
Furthermore, Indemnitee understands and acknowledges that the Company has
undertaken or may be required in the future to undertake with the SEC to submit
the question of indemnification to a court in certain circumstances for a
determination of the Company's right under public policy to indemnify
Indemnitee.

      5.    NOTIFICATION AND DEFENSE OF CLAIM

            (a)   Notification. Promptly after receipt by Indemnitee of notice
of the commencement of any Proceeding, Indemnitee will, if a claim in respect
thereof is to be made against the Company under this Agreement, notify the
Company in writing of the commencement thereof; but the omission to notify the
Company will not relieve the Company from any liability which it may have to
Indemnitee under this Agreement unless and only to the extent that such omission
can be shown to have prejudiced the Company's ability to defend the Proceeding.

            (b)   Defense of Claim. With respect to any such Proceeding as to
which Indemnitee notifies the Company of the commencement thereof:

                  (i)   The Company may participate therein at its own expense;

                  (ii)  The Company, jointly with any other indemnifying party
similarly notified, may assume the defense thereof, with counsel satisfactory to
Indemnitee. After notice from the Company to Indemnitee of its election to
assume the defense thereof, the Company shall not be liable to Indemnitee under
this Agreement for any legal or other expenses (other than reasonable costs of
investigation) subsequently incurred by Indemnitee in connection with the
defense thereof unless (i) the employment of counsel by Indemnitee has been
authorized by the Company, (ii) Indemnitee shall have reasonably concluded that
there may be a conflict of interest between the Company and Indemnitee in the
conduct of the defense of such action, or (iii) the Company shall not in fact
have employed counsel to assume the defense of such action, in each of which
cases the fees and expenses of counsel shall be at the expense of the Company.
The Company shall not be entitled to assume the defense of any action, suit or
proceeding brought by or on behalf of the Company or as to which Indemnitee
shall have made the conclusion provided for in (ii) above;

                  (iii) The Company shall not be liable to indemnify Indemnitee
under this Agreement for any amounts paid in settlement of any Proceeding
effected without its written consent;

                  (iv)  The Company shall not settle any action or claim in any
manner which would impose any penalty or limitation on Indemnitee without
Indemnitee's written consent; and

                  (v)   Neither the Company nor Indemnitee will unreasonably
withhold its, his or her consent to any proposed settlement.

            (c)   Notice to Insurers. If, at the time of the receipt of a notice
of a claim pursuant to Section 5(a) hereof, the Company has director and officer
liability insurance in effect, the Company shall give prompt notice of the
commencement of such proceeding to the insurers in accordance with the
procedures set forth in the respective policies. The Company shall thereafter
take all necessary or desirable action to cause such insurers to pay, on behalf
of the Indemnitee, all amounts payable as a result of such proceeding in
accordance with the terms of such policies.

      6.    SEVERABILITY. Nothing in this Agreement is intended to require or
shall be construed as requiring the Company to do or fail to do any act in
violation of applicable law. The Company's

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inability, pursuant to court order, to perform its obligations under this
Agreement shall not constitute a breach of this Agreement. The provisions of
this Agreement shall be severable, as provided in this Section 6. If this
Agreement or any portion hereof shall be invalidated on any ground by any court
of competent jurisdiction, then the Company shall nevertheless indemnify
Indemnitee to the full extent permitted by any applicable portion of this
Agreement that shall not have been invalidated, and the balance of this
Agreement not so invalidated shall be enforceable in accordance with its terms.

      7.    NO EMPLOYMENT RIGHTS. Nothing contained in this Agreement is
intended to create in Indemnitee any right to continued employment.

      8.    OFFICER AND DIRECTOR LIABILITY INSURANCE. The Company shall, from
time to time, make the good faith determination whether or not it is practicable
for the Company to obtain and maintain a policy or policies of insurance with
reputable insurance companies providing the officers and directors of the
Company with coverage for losses from wrongful acts, or to ensure the Company's
performance of its indemnification obligations under this Agreement. Among other
considerations, the Company will weigh the costs of obtaining such insurance
coverage against the protection afforded by such coverage. In all policies of
director and officer liability insurance, Indemnitee shall be named as an
insured in such a manner as to provide Indemnitee the same rights and benefits
as are accorded to the most favorably insured of the Company's directors, if
Indemnitee is a director; or of the Company's officers, if Indemnitee is not a
director of the Company but is an officer; or of the Company's key employees, if
Indemnitee is not an officer or director but is a key employee. Notwithstanding
the foregoing, the Company shall have no obligation to obtain or maintain such
insurance if the Company determines in good faith that such insurance is not
reasonably available, if the premium costs for such insurance are
disproportionate to the amount of coverage provided, if the coverage provided by
such insurance is limited by exclusions so as to provide an insufficient
benefit, or if Indemnitee is covered by similar insurance maintained by a parent
or subsidiary of the Company.

      9.    PARTIAL INDEMNIFICATION. If Indemnitee is entitled under any
provision of this Agreement to indemnification by the Company for some or a
portion of the expenses, judgments, fines or penalties actually or reasonably
incurred in the investigation, defense, appeal or settlement of any civil or
criminal action, suit or proceeding, but not, however, for the total amount
thereof, the Company shall nevertheless indemnify Indemnitee for the portion of
such expenses, judgments, fines or penalties to which Indemnitee is entitled.

      10.   MISCELLANEOUS

            (a)   Governing Law. This Agreement and all acts and transactions
pursuant hereto and the rights and obligations of the parties hereto shall be
governed, construed and interpreted in accordance with the laws of the State of
Washington, without giving effect to principles of conflict of law.

            (b)   Entire Agreement; Enforcement of Rights. This Agreement sets
forth the entire agreement and understanding of the parties relating to the
subject matter herein and merges all prior discussions between them. No
modification, amendment or termination of this Agreement, nor any waiver of any
rights under this Agreement, shall be effective unless in writing signed by the
parties to this Agreement. The failure by either party to enforce any rights
under this Agreement shall not be construed as a waiver of any rights of such
party.

            (c)   Construction. This Agreement is the result of negotiations
between and has been reviewed by each of the parties hereto and their respective
counsel, if any; accordingly, this Agreement

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shall be deemed to be the product of all of the parties hereto, and no ambiguity
shall be construed in favor of or against any one of the parties hereto.

            (d)   Notices. Any notice, demand or request required or permitted
to be given under this Agreement shall be in writing and shall be deemed
sufficient when delivered personally or sent by telegram or forty-eight (48)
hours after being deposited in the U.S. mail, as certified or registered mail,
with postage prepaid, and addressed to the party to be notified at such party's
address as set forth below or as subsequently modified by written notice.

            (e)   Counterparts. 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 instrument.

            (f)   Successors and Assigns. This Agreement shall be binding upon
Indemnitee and upon the Company, its successors and assigns, and shall inure to
the benefit of Indemnitee, Indemnitee's heirs, personal representatives and
assigns and to the benefit of the Company, its successors and assigns.

            (g)   Subrogation. In the event of payment under this Agreement, the
Company shall be subrogated to the extent of such payment to all of the rights
of recovery of Indemnitee, who shall execute all documents required and shall do
all acts that may be necessary to secure such rights and to enable the Company
to effectively bring suit to enforce such rights.

                            [Signature page follows]

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      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on and
as of the day and year first above written.

                                 CELEBRATE EXPRESS, INC.

                                 _______________________________________________
                                 Michael Jewell, Chief Executive Officer

AGREED TO AND ACCEPTED:

____________________________

____________________________
         Print Name

Address: ___________________

         ___________________

      [SIGNATURE PAGE TO CELEBRATE EXPRESS, INC. INDEMNIFICATION AGREEMENT]<PAGE>

                                                               EXHIBIT 10.2

                             CELEBRATE EXPRESS, INC.

                 2004 AMENDED AND RESTATED EQUITY INCENTIVE PLAN

                       ADOPTED AND EFFECTIVE JULY 10, 2004
                  APPROVED BY SHAREHOLDERS AS OF _____ __, 2004

                     AMENDED TERMINATION DATE: JULY 10, 2014

1.    PURPOSES.

      (a)   AMENDMENT AND RESTATEMENT OF 1994 INCENTIVE STOCK OPTION PLAN AND
1999 EQUITY INCENTIVE PLAN. The Plan initially was established as the 1994
Incentive Stock Option Plan (the "1994 Option Plan"). The 1994 Option Plan was
amended and restated in its entirety as the 1999 Equity Incentive Plan,
effective as of July 19, 1999 and further amended and restated in its entirety
effective as of July 10, 2004, at which point it was retitled the 2004 Amended
and Restated Equity Incentive Plan. The terms of the 1994 Option Plan (other
than the aggregate number of shares issuable thereunder) shall remain in effect
and apply to all Options granted pursuant to the 1994 Option Plan. Options
granted after July 19, 1999 and prior to July 10, 2004 shall remain in effect
and subject to the terms of the 1999 Equity Incentive Plan.

      (b)   ELIGIBLE AWARD RECIPIENTS. The persons eligible to receive Awards
are the Employees, Directors and Consultants of the Company and its Affiliates.

      (c)   AVAILABLE STOCK AWARDS. The purpose of the Plan is to provide a
means by which eligible recipients of Stock Awards may be given an opportunity
to benefit from increases in value of the Common Stock through the granting of
the following Stock Awards: (i) Incentive Stock Options, (ii) Nonstatutory Stock
Options, (iii) Stock Bonus Awards, (iv) Stock Appreciation Rights, (v) Stock
Units, and (vi) Stock Purchase Rights.

      (d)   GENERAL PURPOSE. The Company, by means of the Plan, seeks to retain
the services of the group of persons eligible to receive Stock Awards or Cash
Awards, to secure and retain the services of new members of this group and to
provide incentives for such persons to exert maximum efforts for the success of
the Company and its Affiliates.

2.    DEFINITIONS.

      (a)   "AFFILIATE" means any parent corporation or subsidiary corporation
of the Company, whether now or hereafter existing, as those terms are defined in
Sections 424(e) and (f), respectively, of the Code.

      (b)   "APPLICABLE LAWS" means the legal requirements relating to the
administration of equity compensation plans, including under applicable U.S.
state corporate laws, U.S. federal and applicable state securities laws, other
U.S. federal and state laws, the Code, any stock exchange rules or regulations
and the applicable laws, rules and regulations of any other country or
jurisdiction where Awards are granted under the Plan, as such laws, rules,
regulations and requirements shall be in place from time to time.

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      (c)   "AWARD" means a Stock Award or a Cash Award granted in accordance
with the terms of this Plan.

      (d)   "BOARD" means the Board of Directors of the Company.

      (e)   "CASH AWARD" means an award conferring or including the right to be
granted under Section 7(d) below.

      (f)   "CASH AWARD AGREEMENT" means a written agreement between the Company
and a holder of a Cash Award evidencing the terms and conditions of an
individual Cash Award grant. Each Cash Award Agreement shall be subject to the
terms and conditions of this Plan.

      (g)   "CODE" means the Internal Revenue Code of 1986, as amended.

      (h)   "COMMITTEE" means a committee of one or more members of the Board
appointed by the Board in accordance with subsection 3(c).

      (i)   "COMMON STOCK" means the common stock of the Company.

      (j)   "COMPANY" means Celebrate Express, Inc., a Washington corporation.

      (k)   "CONSULTANT" means any person, including an advisor and other than
an Employee, (i) engaged by the Company or an Affiliate to render consulting or
advisory services and who is compensated for such services or (ii) who is a
member of the Board of Directors of an Affiliate. However, the term "Consultant"
shall not include either Directors who are not compensated by the Company for
their services as Directors or Directors who are merely paid a director's fee by
the Company for their services as Directors.

      (l)   "CONTINUOUS SERVICE" means that the Participant's service with the
Company or an Affiliate, whether as an Employee, Director or Consultant, is not
interrupted or terminated. The Participant's Continuous Service shall not be
considered interrupted or terminated in the case of: (i) sick leave; (ii)
military leave; (iii) any other leave of absence approved by the Company,
provided that such leave is for a period of not more than ninety (90) days,
unless reemployment upon the expiration of such leave is guaranteed by contract
or statute, or unless provided otherwise pursuant to Company policy adopted from
time to time. In addition, the Participant's Continuous Service shall not be
deemed to have terminated merely because of a change in the capacity in which
the Participant renders service to the Company or an Affiliate as an Employee,
Consultant or Director or a change in the entity for which the Participant
renders such service, provided that there is no interruption or termination of
the Participant's Continuous Service. For example, a change in status from an
Employee of the Company to a Consultant of an Affiliate or a Director will not
constitute an interruption of Continuous Service.

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      (m)   "COVERED EMPLOYEE" means the chief executive officer and the four
(4) other highest compensated officers of the Company for whom total
compensation is required to be reported to shareholders under the Exchange Act,
as determined for purposes of Section 162(m) of the Code.

      (n)   "DIRECTOR" means a member of the Board.

      (o)   "DISABILITY" means the permanent and total disability of a person
within the meaning of Section 22(e)(3) of the Code.

      (p)   "EMPLOYEE" means any person employed by the Company or an Affiliate.
Mere service as a Director or payment of a director's fee by the Company or an
Affiliate shall not be sufficient to constitute "employment" by the Company or
an Affiliate.

      (q)   "EXCHANGE ACT" means the Securities Exchange Act of 1934, as
amended.

      (r)   "FAIR MARKET VALUE" means, as of any date, the value of the Common
Stock determined as follows:

            (i)   If the Common Stock is listed on any established stock
exchange or traded on the Nasdaq National Market or the Nasdaq SmallCap Market,
the Fair Market Value of a share of Common Stock shall be the closing sales
price for such stock as quoted on such exchange or market (or the exchange or
market with the greatest volume of trading in the Common Stock) on the day the
value is to be determined (the "Value Date"), as reported in The Wall Street
Journal or such other source as the Board deems reliable. If no sales are
reported as having occurred on the Value Date, Fair Market Value shall be the
closing sales price for such stock on the last preceding trading day on which
sales of Common Stock are reported as having occurred.

            (ii)  In the absence of such markets for the Common Stock, the Fair
Market Value shall be determined in good faith by the Board.

      (s)   "INCENTIVE STOCK OPTION" means an Option intended to qualify
as an incentive stock option within the meaning of Section 422 of the Code and
the regulations promulgated thereunder.

      (t)   "INDEPENDENT DIRECTOR" means a Director who qualifies as a
"non-employee director" under Section 16 of the Exchange Act (and the rules
promulgated thereunder), as an "outside director" under Code Section 162(m) (and
the rules promulgated thereunder) and as an "independent" director under
applicable Nasdaq rules (or the rules of any exchange on which the Common Stock
is then listed or approved for listing).

      (u)   "IPO DATE" means the effective date of a registration statement
covering Shares in the Company's initial public offering, if and in the event
the Company undertakes such an offering.

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      (v)   "LISTING DATE" means the first date upon which any security of the
Company is listed (or approved for listing) upon notice of issuance on any
securities exchange or designated (or approved for designation) upon notice of
issuance as a national market security on an interdealer quotation system.

      (w)   "NON-EMPLOYEE DIRECTOR" means a Director who is not a current
Employee or Officer of the Company or an Affiliate.

      (x)   "NONSTATUTORY STOCK OPTION" means an Option not intended to qualify
as an Incentive Stock Option.

      (y)   "OBJECTIVELY DETERMINABLE PERFORMANCE CONDITION" shall mean a
performance condition (i) that is established (A) at the time an Award is
granted or (B) no later than the earlier of (1) 90 days after the beginning of
the period of service to which it relates, or (2) before the elapse of 25% of
the period of service to which it relates, (ii) that is uncertain of achievement
at the time it is established, and (iii) the achievement of which is
determinable by a third party with knowledge of the relevant facts. Examples of
measures that may be used in Objectively Determinable Performance Conditions
include net order dollars, net profit dollars, net profit growth, net revenue
dollars, revenue growth, individual performance, earnings per share, return on
assets, return on equity, and other financial objectives, objective customer
satisfaction indicators and efficiency measures, each with respect to the
Company and/or an Affiliate or individual business unit.

      (z)   "OFFICER" means a person who is an officer of the Company within the
meaning of Section 16 of the Exchange Act and the rules and regulations
promulgated thereunder.

      (aa)  "OPTION" means an Incentive Stock Option or a Nonstatutory Stock
Option granted pursuant to the Plan.

      (bb)  "OPTION AGREEMENT" means a written agreement between the Company and
an Optionholder evidencing the terms and conditions of an individual Option
grant. Each Option Agreement shall be subject to the terms and conditions of the
Plan.

      (cc)  "OPTIONHOLDER" means a person to whom an Option is granted pursuant
to the Plan or, if applicable, such other person who holds an outstanding
Option.

      (dd)  "PARTICIPANT" means a person to whom a Stock Award or Cash Award is
granted pursuant to the Plan or, if applicable, such other person who holds an
outstanding Stock Award or Cash Award.

      (ee)  "PLAN" means this Celebrate Express, Inc. 2004 Amended and Restated
Equity Incentive Plan.

      (ff)  "RULE 16B-3" means Rule 16b-3 promulgated under the Exchange Act or
any successor to Rule 16b-3, as in effect from time to time.

                                       4
<PAGE>

      (gg)  "SECURITIES ACT" means the Securities Act of 1933, as amended.

      (hh)  "SHARE" means a share of the Common Stock, as adjusted in accordance
with Section 11 below.

      (ii)  "STOCK APPRECIATION RIGHT" means a right to receive cash and/or
Shares based on a change in the Fair Market Value of a specific number of Shares
granted under Section 7(c) below.

      (jj)  "STOCK AWARD" means any right granted under the Plan, including an
Option, a Stock Bonus, a Stock Unit, a Stock Appreciation Right and Stock
Purchase Right, but excluding a Cash Award.

      (kk)  "STOCK AWARD AGREEMENT" means a written agreement between the
Company and a holder of a Stock Award evidencing the terms and conditions of an
individual Stock Award grant. Each Stock Award Agreement shall be subject to the
terms and conditions of the Plan.

      (ll)  "STOCK BONUS" means the award of a certain number of Shares granted
under Section 7(a) below.

      (mm)  "STOCK PURCHASE RIGHT" means the right to purchase a certain number
of Shares under Section 7(b) below.

      (nn)  "STOCK UNIT" means an award giving the right to receive Shares
granted under Section 7(a) below.

      (oo)  "TEN PERCENT SHAREHOLDER" means a person who owns (or is deemed to
own pursuant to Section 424(d) of the Code) stock possessing more than ten
percent (10%) of the total combined voting power of all classes of stock of the
Company or of any of its Affiliates.

3.    ADMINISTRATION.

      (a)   ADMINISTRATION BY BOARD. The Board shall administer the Plan unless
and until the Board delegates administration to a Committee, as provided in
subsection 3(c). Any interpretation of the Plan by the Board and any decision by
the Board under the Plan shall be final and binding on all persons.

      (b)   POWERS OF BOARD. The Board shall have the power, subject to, and
within the limitations of, the express provisions of the Plan:

            (i)   To determine from time to time which of the persons eligible
under the Plan shall be granted Awards; when and how each Award shall be
granted; what type or combination of types of Award shall be granted; the
provisions of each Award granted (which need not be identical), including the
time or times when a person shall be permitted to receive Common Stock pursuant
to a Stock Award; and the number of Shares of Common Stock with respect to which
a Stock Award shall be granted to each such person.

                                       5
<PAGE>

            (ii)  To construe and interpret the Plan and Awards granted under
it, and to establish, amend and revoke rules and regulations for its
administration. The Board, in the exercise of this power, may correct any
defect, omission or inconsistency in the Plan or in any Stock Award Agreement or
Cash Award Agreement, in a manner and to the extent it shall deem necessary or
expedient to make the Plan fully effective. Any determination made by the Board
will be final, binding and conclusive on all parties.

            (iii) To amend the Plan, a Stock Award or a Cash Award as provided
in Section 12.

            (iv) Generally, to exercise such powers and to perform such acts as
the Board deems necessary or expedient to promote the best interests of the
Company which are not in conflict with the provisions of the Plan.

      (c)   DELEGATION TO COMMITTEE.

            (i)   GENERAL. The Board may delegate administration of the Plan to
a Committee or Committees of one (1) or more members of the Board, and the term
"Committee" shall apply to any person or persons to whom such authority has been
delegated provided such person is or persons are eligible under the Applicable
Laws. If administration is delegated to a Committee, the Committee shall have,
in connection with the administration of the Plan, the powers theretofore
possessed by the Board, including the power to delegate to a subcommittee any of
the administrative powers the Committee is authorized to exercise (and
references in this Plan to the Board shall thereafter be to the Committee or
subcommittee), subject, however, to such resolutions, not inconsistent with the
provisions of the Plan, as may be adopted from time to time by the Board. The
Board may abolish the Committee at any time and revest in the Board the
administration of the Plan.

            (ii)  COMMITTEE COMPOSITION WHEN COMMON STOCK IS PUBLICLY TRADED. At
such time as the Common Stock is publicly traded, a Committee responsible for
granting awards and administering the Plan as to Officers, Covered Employees, or
Directors shall consist of two (2) or more Independent Directors if at least two
such Independent Directors are available to serve on the Committee.

4.    SHARES SUBJECT TO THE PLAN.

      (a)   SHARE RESERVE. Subject to the provisions of Section 11 relating to
adjustments upon changes in Common Stock, the Common Stock that may be issued
pursuant to Stock Awards shall not exceed in the aggregate Two Million Three
Hundred Forty Thousand (2,340,000) shares of Common Stock, plus an annual
increase on the first day of each of the Company's fiscal years beginning on
June 1, 2006 equal to the lesser of (i) Three Hundred Thousand (300,000) Shares,
(ii) three percent (3%) of the Shares outstanding on the last day of the
immediately preceding fiscal year, or (iii) such lesser number of Shares as the
Board shall determine.

                                       6
<PAGE>

      (b)   REVERSION OF SHARES TO THE SHARE RESERVE. If a Stock Award should
expire or become unexercisable for any reason without having been exercised in
full, or is surrendered for any reason, the unpurchased or unissued Shares that
were subject thereto shall, unless the Plan shall have been terminated, become
available for future grant under the Plan. In addition, any Shares of Common
Stock which are retained by the Company upon exercise of a Stock Award in order
to satisfy the exercise or purchase price for such award or any withholding
taxes due with respect to such exercise or purchase thereof shall be treated as
not issued and shall continue to be available under the Plan. Shares issued
under the Plan and later repurchased by the Company pursuant to any repurchase
right which the Company may have shall be available for future grant under the
Plan.

      (c)   SOURCE OF SHARES. The shares of Common Stock subject to the Plan may
be unissued shares or reacquired shares, bought on the market or otherwise.

5.    ELIGIBILITY.

      (a)   ELIGIBILITY FOR SPECIFIC STOCK AWARDS. Incentive Stock Options may
be granted only to Employees. Cash Awards and Stock Awards other than Incentive
Stock Options may be granted to Employees, Directors and Consultants.

      (b)   TEN PERCENT SHAREHOLDERS. A Ten Percent Shareholder shall not be
granted an Incentive Stock Option unless the exercise price of such Option is at
least one hundred ten percent (110%) of the Fair Market Value of the Common
Stock at the date of grant and the Option is not exercisable after the
expiration of five (5) years from the date of grant.

      (c)   SECTION 162(m) LIMITATION. Subject to the provisions of Section 11
relating to adjustments upon changes in the shares of Common Stock, no Employee
shall be eligible to be granted Stock Awards or Cash Awards covering or relating
to more than Six Hundred Thousand (600,000) Shares of Common Stock during any
calendar year. This subsection 5(c) shall not apply prior to the Listing Date
and, following the Listing Date, this subsection 5(c) shall not apply until (i)
the earliest of: (1) the first material modification of the Plan (including any
increase in the number of shares of Common Stock reserved for issuance under the
Plan in accordance with Section 4); (2) the issuance of all of the shares of
Common Stock reserved for issuance under the Plan; (3) the expiration of the
Plan; or (4) the first meeting of shareholders at which Directors are to be
elected that occurs after the close of the third calendar year following the
calendar year in which occurred the first registration of an equity security
under Section 12 of the Exchange Act; or (ii) such other date required by
Section 162(m) of the Code and the rules and regulations promulgated thereunder.

      (d)   CONSULTANTS.

            (i)   Prior to the Listing Date, a Consultant shall not be eligible
for the grant of a Stock Award if, at the time of grant, either the offer or the
sale of the Company's securities to such Consultant is not exempt under Rule 701
of the Securities Act ("Rule 701") because of the nature of the services that
the Consultant is providing to the Company, or because the Consultant is not a
natural person, or as otherwise provided by Rule 701, unless the Company
determines that such grant need not comply with the requirements of Rule 701 and
will satisfy another exemption under the Securities Act as well as comply with
the securities laws of all other relevant jurisdictions.

                                       7
<PAGE>
            (ii)  From and after the Listing Date, a Consultant shall not be
eligible for the grant of a Stock Award if, at the time of grant, a Form S-8
Registration Statement under the Securities Act ("Form S-8") is not available to
register either the offer or the sale of the Company's securities to such
Consultant because of the nature of the services that the Consultant is
providing to the Company, or because the Consultant is not a natural person, or
as otherwise provided by the rules governing the use of Form S-8, unless the
Company determines both (1) that such grant (A) shall be registered in another
manner under the Securities Act (e.g., on a Form S-3 Registration Statement) or
(B) does not require registration under the Securities Act in order to comply
with the requirements of the Securities Act, if applicable, and (2) that such
grant complies with the securities laws of all other relevant jurisdictions.

            (iii) Rule 701 and Form S-8 generally are available to consultants
and advisors only if (1) they are natural persons; (2) they provide bona fide
services to the issuer, its parents, its majority-owned subsidiaries or (for
Rule 701 purposes only) majority-owned subsidiaries of the issuer's parent; and
(3) the services are not in connection with the offer or sale of securities in a
capital-raising transaction, and do not directly or indirectly promote or
maintain a market for the issuer's securities.

6.    OPTION PROVISIONS.

      Each Option shall be in such form and shall contain such terms and
conditions as the Board shall deem appropriate. All Options shall be separately
designated Incentive Stock Options or Nonstatutory Stock Options at the time of
grant, and, if certificates are issued, a separate certificate or certificates
will be issued for shares of Common Stock purchased on exercise of each type of
Option. The provisions of separate Options need not be identical, but each
Option shall include (through incorporation of provisions hereof by reference in
the Option or otherwise) the substance of each of the following provisions:

      (a)   TERM. Subject to the provisions of subsection 5(b) regarding Ten
Percent Shareholders, no Incentive Stock Option shall be exercisable after the
expiration of ten (10) years from the date it was granted.

      (b)   EXERCISE PRICE OF AN INCENTIVE STOCK OPTION. Subject to the
provisions of subsection 5(b) regarding Ten Percent Shareholders, the exercise
price of each Incentive Stock Option shall be not less than one hundred percent
(100%) of the Fair Market Value of the Common Stock subject to the Option on the
date the Option is granted. Notwithstanding the foregoing, an Incentive Stock
Option may be granted with an exercise price lower than that set forth in the
preceding sentence if such Option is granted pursuant to an assumption or
substitution for another option in a manner satisfying the provisions of Section
424(a) of the Code.

                                       8
<PAGE>

      (c)   EXERCISE PRICE OF A NONSTATUTORY STOCK OPTION. The exercise price of
each Nonstatutory Stock Option shall be as determined by the Board.
Notwithstanding the foregoing, a Nonstatutory Stock Option may be granted with
an exercise price lower than that set forth in the preceding sentence if such
Option is granted pursuant to an assumption or substitution for another option
in a manner satisfying the provisions of Section 424(a) of the Code.

      (d)   CONSIDERATION. The purchase price of Common Stock acquired pursuant
to an Option shall be paid, to the extent permitted by applicable statutes and
regulations, either (i) in cash, or by check or wire transfer, at the time the
Option is exercised or (ii) at the discretion of the Board at the time of the
grant of the Option (or subsequently in the case of a Nonstatutory Stock Option)
(1) by delivery to the Company of other Shares that have a Fair Market Value on
the date of surrender equal to the aggregate exercise price of the Shares as to
which the Option is exercised, provided that in the case of Shares acquired,
directly or indirectly, from the Company, such Shares must have been owned by
the Optionholder for more than six (6) months on the date of surrender (or such
other period as may be required to avoid the Company's incurring an adverse
accounting charge), (2) according to a deferred payment or other similar
arrangement that conforms with Applicable Laws with the Optionholder, (3) if, as
of the date of exercise of an Option the Company then is permitting employees to
engage in a "same-day sale" cashless brokered exercise program involving one or
more brokers, through such a program that complies with the Applicable Laws
(including without limitation the requirements of Regulation T and other
applicable regulations promulgated by the Federal Reserve Board) and that
ensures prompt delivery to the Company of the amount required to pay the
exercise price and any applicable withholding taxes, or (4) in any other form of
legal consideration that may be acceptable to the Board; provided, however, that
at any time that the Company is incorporated in Delaware, payment of the Common
Stock's "par value," as defined in the Delaware General Corporation Law, shall
not be made by deferred payment. In making its determination as to the type of
consideration to accept, the Board shall consider if acceptance of such
consideration may be reasonably expected to benefit the Company and the Board
may, in its sole discretion, refuse to accept a particular form of consideration
at the time of any Option exercise.

      In the case of any deferred payment arrangement, interest shall be
compounded at least annually and shall be charged at the minimum rate of
interest necessary to avoid the treatment as interest, under any applicable
provisions of the Code, of any amounts other than amounts stated to be interest
under the deferred payment arrangement.

      (e)   TRANSFERABILITY OF AN INCENTIVE STOCK OPTION. An Incentive Stock
Option shall not be transferable except by will or by the laws of descent and
distribution and shall be exercisable during the lifetime of the Optionholder
only by the Optionholder; provided however that to the extent the regulations
governing Incentive Stock Options, as amended from time to time, permit
transferability of Incentive Stock Options under additional circumstances, then
the Board may grant Incentive Stock Options with greater rights of
transferability in conformity with such regulations. Notwithstanding the
foregoing, the Optionholder may, by delivering written notice to the Company, in
a form satisfactory to the Company, designate a third party who, in the event of
the death of the Optionholder, shall thereafter be entitled to exercise the
Option.

                                       9
<PAGE>

      (f)   TRANSFERABILITY OF A NONSTATUTORY STOCK OPTION. A Nonstatutory Stock
Option shall be transferable to the extent provided in the Option Agreement. If
the Nonstatutory Stock Option does not provide for transferability, then the
Nonstatutory Stock Option shall not be transferable except by will or by the
laws of descent and distribution and shall be exercisable during the lifetime of
the Optionholder only by the Optionholder. Notwithstanding the foregoing, the
Optionholder may, by delivering written notice to the Company, in a form
satisfactory to the Company, designate a third party who, in the event of the
death of the Optionholder, shall thereafter be entitled to exercise the Option.

      (g)   VESTING GENERALLY. The total number of shares of Common Stock
subject to an Option may, but need not, vest and therefore become exercisable in
periodic installments that may, but need not, be equal. The Option may be
subject to such other terms and conditions on the time or times when it may be
exercised (which may be based on performance or other criteria) as the Board may
deem appropriate. The vesting provisions of individual Options may vary. The
provisions of this subsection 6(g) are subject to any Option provisions
governing the minimum number of shares of Common Stock as to which an Option may
be exercised.

      (h)   TERMINATION OF CONTINUOUS SERVICE. In the event an Optionholder's
Continuous Service terminates (other than upon the Optionholder's death or
Disability), the Optionholder may exercise his or her Option (to the extent that
the Optionholder was vested in the Option Shares and entitled to exercise such
Option as of the date of termination) but only within such period of time ending
on the earlier of (i) the date three (3) months following the termination of the
Optionholder's Continuous Service (or such longer or shorter period specified in
the Option Agreement), or (ii) the expiration of the term of the Option as set
forth in the Option Agreement. If, after termination, the Optionholder does not
exercise his or her Option within the time specified in the Option Agreement,
the Option shall terminate.

      (i)   EXTENSION OF TERMINATION DATE. An Optionholder's Option Agreement
may also provide that if the exercise of the Option following the termination of
the Optionholder's Continuous Service (other than upon the Optionholder's death
or Disability) would be prohibited at any time solely because the issuance of
shares of Common Stock would violate the registration requirements under the
Securities Act, then the Option shall terminate on the earlier of (i) the
expiration of the term of the Option set forth in subsection 6(a) or (ii) the
expiration of a period of three (3) months after the termination of the
Optionholder's Continuous Service during which the exercise of the Option would
not be in violation of such registration requirements.

      (j)   DISABILITY OF OPTIONHOLDER. In the event that an Optionholder's
Continuous Service terminates as a result of the Optionholder's Disability, the
Optionholder may exercise his or her Option (to the extent that the Optionholder
was vested in the Option Shares and entitled to exercise such Option as of the
date of termination), but only within such period of time ending on the earlier
of (i) the date twelve (12) months following such termination (or such longer or
shorter period specified in the Option Agreement) or (ii) the expiration of the
term of the Option as set forth in the Option Agreement. If, after termination,
the Optionholder does not exercise his or her Option within the time specified
herein, the Option shall terminate.

                                       10
<PAGE>

      (k)   DEATH OF OPTIONHOLDER. In the event (i) an Optionholder's Continuous
Service terminates as a result of the Optionholder's death or (ii) the
Optionholder dies within the period (if any) specified in the Option Agreement
after the termination of the Optionholder's Continuous Service for a reason
other than death, then the Option may be exercised (to the extent the
Optionholder was vested in the Option Shares and entitled to exercise such
Option as of the date of death) by the Optionholder's estate, by a person who
acquired the right to exercise the Option by bequest or inheritance or by a
person designated to exercise the option upon the Optionholder's death pursuant
to subsection 6(e) or 6(f), but only within the period ending on the earlier of
(1) the date eighteen (18) months following the date of death (or such longer or
shorter period specified in the Option Agreement) or (2) the expiration of the
term of such Option as set forth in the Option Agreement. If, after death, the
Option is not exercised within the time specified herein, the Option shall
terminate.

      (l)   EARLY EXERCISE. The Option may, but need not, include a provision
whereby the Optionholder may elect at any time before the Optionholder's
Continuous Service terminates to exercise the Option as to any part or all of
the shares of Common Stock subject to the Option prior to the full vesting of
the Option. Any unvested shares of Common Stock so purchased may be subject to a
repurchase option in favor of the Company or to any other restriction the Board
determines to be appropriate.

      (m)   RIGHT OF REPURCHASE. The Option may, but need not, include a
provision whereby the Company may elect, prior to the Listing Date, to
repurchase all or any part of the vested shares of Common Stock acquired by the
Optionholder pursuant to the exercise of the Option.

      (n)   RIGHT OF FIRST REFUSAL. The Option may, but need not, include a
provision whereby the Company may elect, prior to the Listing Date, to exercise
a right of first refusal following receipt of notice from the Optionholder of
the intent to transfer all or any part of the shares of Common Stock received
upon the exercise of the Option. Except as expressly provided in this subsection
6(n), such right of first refusal shall otherwise comply with any applicable
provisions of the Bylaws of the Company.

      (o)   RE-LOAD OPTIONS. Without in any way limiting the authority of the
Board to make or not to make grants of Options hereunder, the Board shall have
the authority (but not an obligation) to include as part of any Option Agreement
a provision entitling the Optionholder to a further Option (a "Re-Load Option")
in the event the Optionholder exercises the Option evidenced by the Option
Agreement, in whole or in part, by surrendering other shares of Common Stock in
accordance with this Plan and the terms and conditions of the Option Agreement.
Any such Re-Load Option shall (i) provide for a number of shares of Common Stock
equal to the number of shares of Common Stock surrendered as part or all of the
exercise price of such Option; (ii) have an expiration date which is the same as
the expiration date of the Option the exercise of which gave rise to such
Re-Load Option; and (iii) have an exercise price which is equal to one hundred
percent (100%) of the Fair Market Value of the Common Stock subject to the
Re-Load Option on the date of exercise of the original Option. Notwithstanding

                                       11
<PAGE>

the foregoing, a Re-Load Option shall be subject to the same exercise price and
term provisions heretofore described for Options under the Plan.

      Any such Re-Load Option may be an Incentive Stock Option or a Nonstatutory
Stock Option, as the Board may designate at the time of the grant of the
original Option; provided, however, that the designation of any Re-Load Option
as an Incentive Stock Option shall be subject to the one hundred thousand dollar
($100,000) annual limitation on the exercisability of Incentive Stock Options
described in subsection 10(d) and in Section 422(d) of the Code. There shall be
no Re-Load Options on a Re-Load Option. Any such Re-Load Option shall be subject
to the availability of sufficient shares of Common Stock under subsection 4(a)
and the "Section 162(m) Limitation" on the grants of Options under subsection
5(c) and shall be subject to such other terms and conditions as the Board may
determine which are not inconsistent with the express provisions of the Plan
regarding the terms of Options.

7.    PROVISIONS OF AWARDS OTHER THAN OPTIONS.

      (a)   STOCK BONUS AND STOCK UNIT AWARDS. Each Stock Award Agreement
reflecting the issuance of a Stock Bonus or a Stock Unit shall be in such form
and shall contain such terms and conditions as the Board shall deem appropriate.
The terms and conditions of such agreements may change from time to time, and
the terms and conditions of separate agreements need not be identical, but each
such agreement shall include (through incorporation of provisions hereof by
reference in the agreement or otherwise) the substance of each of the following
provisions:

            (i)   CONSIDERATION. A Stock Bonus or Stock Unit may be awarded in
consideration for such property or services as is permitted under Applicable
Law, including for past services actually rendered to the Company or an
Affiliate for its benefit.

            (ii)  VESTING; RESTRICTIONS. Shares of Common Stock awarded under
the agreement reflecting a Stock Bonus and a Stock Unit award may, but need not,
be subject to a share repurchase option, forfeiture restriction or other
conditions in favor of the Company in accordance with a vesting or lapse
schedule to be determined by the Board.

            (iii) TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. In the event
a Participant's Continuous Service terminates, the Company may reacquire any or
all of the Shares of Common Stock held by the Participant which have not vested
or which are otherwise subject to forfeiture or other conditions as of the date
of termination under the terms of the agreement.

            (iv)  TRANSFERABILITY. Rights to acquire shares of Common Stock
under a Stock Bonus or a Stock Unit agreement shall be transferable by the
Participant only upon such terms and conditions as are set forth in the
agreement, as the Board shall determine in its discretion, so long as Common
Stock awarded under the agreement remains subject to the terms of the agreement.

      (b)   STOCK PURCHASE RIGHTS. Each Stock Award Agreement reflecting a Stock
Purchase Right shall be in such form and shall contain such terms and conditions
as the Board shall deem appropriate. The terms and conditions of such agreements

                                       12
<PAGE>
may change from time to time, and the terms and conditions of such separate
Stock Award Agreement reflecting a Stock Purchase Right need not be identical,
but each such agreement shall include (through incorporation of provisions
hereof by reference in the agreement or otherwise) the substance of each of the
following provisions:

            (i)   PURCHASE PRICE. The per-Share purchase price of Stock Purchase
Rights shall be as determined by the Board.

            (ii)  CONSIDERATION. The purchase price of Common Stock acquired
pursuant to the Stock Purchase Right agreement shall be paid in accordance with
Section 6(d) above.

            (iii) VESTING. Shares of Common Stock acquired under the Stock
Purchase Right agreement may, but need not, be subject to a share repurchase
option, forfeiture restriction or other conditions in favor of the Company in
accordance with a vesting or lapse schedule to be determined by the Board.

            (iv)  TERMINATION OF PARTICIPANT'S CONTINUOUS SERVICE. In the event
a Participant's Continuous Service terminates, the Company may repurchase or
otherwise reacquire any or all of the shares of Common Stock held by the
Participant which have not vested or as to which forfeiture conditions are
triggered as of the date of termination under the terms of the Stock Purchase
Right agreement.

            (v)   TRANSFERABILITY. Rights to acquire shares of Common Stock
under the Stock Award Agreement reflecting a Stock Purchase Right shall be
transferable by the Participant only upon such terms and conditions as are set
forth in such agreement, as the Board shall determine in its discretion, so long
as Common Stock awarded under the agreement remains subject to the terms of such
agreement.

      (c)   STOCK APPRECIATION RIGHTS.

            (i)   GENERAL. Stock Appreciation Rights may be granted either
alone, in addition to, or in tandem with other Awards granted under the Plan.
The Board may grant Stock Appreciation Rights to eligible Participants subject
to terms and conditions not inconsistent with this Plan and determined by the
Board. The specific terms and conditions applicable to the Participant shall be
provided for in the Stock Award Agreement. Stock Appreciation Rights shall be
exercisable, in whole or in part, at such times as the Board shall specify in
the Stock Award Agreement.

            (ii)  EXERCISE OF STOCK APPRECIATION RIGHT. Upon the exercise of a
Stock Appreciation Right, in whole or in part, the Participant shall be entitled
to a payment in an amount equal to the excess of the Fair Market Value of a
fixed number of Shares covered by the exercised portion of the Stock
Appreciation Right on the date of exercise, over the Fair Market Value of the
Shares covered by the exercised portion of the Stock Appreciation Right on the
grant date (or such other amount calculated with respect to Shares subject to
the award as the Board may determine). The amount due to the Participant upon
the exercise of a Stock Appreciation Right shall be paid in cash, Shares or a

                                       13
<PAGE>
combination thereof, over the period or periods specified in the Stock Award
Agreement. A Stock Award Agreement may place limits on the amount that may be
paid over any specified period or periods upon the exercise of a Stock
Appreciation Right, on an aggregate basis or as to any Participant. A Stock
Appreciation Right shall be considered exercised when the Company receives
written notice of exercise in accordance with the terms of the Stock Award
Agreement from the person entitled to exercise the Stock Appreciation Right. If
a Stock Appreciation Right has been granted in tandem with an Option, upon the
exercise of the Stock Appreciation Right, the number of Shares that may be
purchased pursuant to the Option shall be reduced by the number of shares with
respect to which the Stock Appreciation Right is exercised.

            (iii) NONASSIGNABILITY OF SARS. Except as determined by the Board,
no Stock Appreciation Right shall be assignable or otherwise transferable by the
Participant except by will or by the laws of descent and distribution.

      (d)   CASH AWARDS. Cash Awards may be granted either alone, in addition
to, or in tandem with other Stock Awards granted under the Plan. After the Board
determines that it will offer a Cash Award, it shall advise the Participant, by
means of a Cash Award Agreement, of the terms, conditions and restrictions
related to the Cash Award.

      (e)   SECTION 162(m) COMPLIANCE. Any Cash Award or Stock Award other than
an Option that is intended as "qualified performance-based compensation" within
the meaning of Section 162(m) of the Code must vest or become exercisable
contingent on the achievement of one or more Objectively Determinable
Performance Conditions. The Committee shall have the discretion to determine the
time and manner of compliance with Section 162(m) of the Code.

8.    COVENANTS OF THE COMPANY.

      (a)   AVAILABILITY OF SHARES. During the terms of the Stock Awards, the
Company shall keep available at all times the number of shares of Common Stock
required to satisfy such Stock Awards.

      (b)   SECURITIES LAW COMPLIANCE. The Company shall seek to obtain from
each regulatory commission or agency having jurisdiction over the Plan such
authority as may be required to grant Stock Awards and to issue and sell shares
of Common Stock upon exercise of the Stock Awards; provided, however, that this
undertaking shall not require the Company to register under the Securities Act
the Plan, any Stock Award or any Common Stock issued or issuable pursuant to any
such Stock Award. If, after reasonable efforts, the Company is unable to obtain
from any such regulatory commission or agency the authority which counsel for
the Company deems necessary for the lawful issuance and sale of Common Stock
under the Plan, the Company shall be relieved from any liability for failure to
issue and sell Common Stock upon exercise of such Stock Awards unless and until
such authority is obtained.

                                       14
<PAGE>

9.    USE OF PROCEEDS FROM STOCK.

      Proceeds from the sale of Common Stock pursuant to Stock Awards shall
constitute general funds of the Company.

10.   MISCELLANEOUS.

      (a)   ACCELERATION OF EXERCISABILITY AND VESTING. The Board shall have the
power to accelerate the time at which a Stock Award may first be exercised or
the time during which a Stock Award or any part thereof will vest in accordance
with the Plan, notwithstanding the provisions in the Stock Award stating the
time at which it may first be exercised or the time during which it will vest.

      (b)   SHAREHOLDER RIGHTS. No Participant shall be deemed to be the holder
of, or to have any of the rights of a holder with respect to, any shares of
Common Stock subject to such Stock Award unless and until such Participant has
satisfied all requirements for exercise of the Stock Award and/or the issuance
of Shares subject to the award pursuant to its terms.

      (c)   NO EMPLOYMENT OR OTHER SERVICE RIGHTS. Nothing in the Plan or any
instrument executed or Stock Award or Cash Award granted pursuant thereto shall
confer upon any Participant any right to continue to serve the Company or an
Affiliate in the capacity in effect at the time the Stock Award or Cash Award
was granted or shall affect the right of the Company or an Affiliate to
terminate (i) the employment of an Employee with or without notice and with or
without cause, (ii) the service of a Consultant pursuant to the terms of such
Consultant's agreement with the Company or an Affiliate or (iii) the service of
a Director pursuant to the Bylaws of the Company or an Affiliate, and any
applicable provisions of the corporate law of the state in which the Company or
the Affiliate is incorporated, as the case may be.

      (d)   INCENTIVE STOCK OPTION $100,000 LIMITATION. To the extent that the
aggregate Fair Market Value (determined at the time of grant) of Common Stock
with respect to which Incentive Stock Options are exercisable for the first time
by any Optionholder during any calendar year (under all plans of the Company and
its Affiliates) exceeds one hundred thousand dollars ($100,000), the Options or
portions thereof which exceed such limit (according to the order in which they
were granted) shall be treated as Nonstatutory Stock Options.

      (e)   INVESTMENT ASSURANCES. The Company may require a Participant, as a
condition of exercising or acquiring Common Stock under any Stock Award, (i) to
give written assurances satisfactory to the Company as to the Participant's
knowledge and experience in financial and business matters and/or to employ a
purchaser representative reasonably satisfactory to the Company who is
knowledgeable and experienced in financial and business matters and that he or
she is capable of evaluating, alone or together with the purchaser
representative, the merits and risks of exercising the Stock Award; and (ii) to
give written assurances satisfactory to the Company stating that the Participant
is acquiring Common Stock subject to the Stock Award for the Participant's own
account and not with any present intention of selling or otherwise distributing
the Common Stock. The foregoing requirements, and any assurances given pursuant
to such requirements, shall be inoperative if (iii) the issuance of the shares
of Common Stock upon the exercise or acquisition of Common Stock under the Stock

                                       15
<PAGE>
Award has been registered under a then currently effective registration
statement under the Securities Act or (iv) as to any particular requirement, a
determination is made by counsel for the Company that such requirement need not
be met in the circumstances under the then applicable securities laws. The
Company may, upon advice of counsel to the Company, place legends on stock
certificates issued under the Plan as such counsel deems necessary or
appropriate in order to comply with applicable securities laws, including, but
not limited to, legends restricting the transfer of the Common Stock.

      (f)   WITHHOLDING OBLIGATIONS. To the extent provided by the terms of a
Stock Award Agreement, the Participant may satisfy any federal, state or local
tax withholding obligation relating to the exercise or acquisition of Common
Stock under a Stock Award by any of the following means (in addition to the
Company's right to withhold from any compensation paid to the Participant by the
Company) or by a combination of such means: (i) tendering a cash payment; (ii)
authorizing the Company to withhold shares of Common Stock from the shares of
Common Stock otherwise issuable to the participant as a result of the exercise
or acquisition of Common Stock under the Stock Award in an amount not to exceed
the minimum amount of tax required to be withheld by law; or (iii) delivering to
the Company owned and unencumbered shares of Common Stock. Withholding
obligations with respect to Cash Awards shall be satisfied through the Company's
withholding of the appropriate amount from cash to be paid under the Cash Award.

11.   ADJUSTMENTS UPON CHANGES IN STOCK.

      (a)   CAPITALIZATION ADJUSTMENTS. If any change is made in the Common
Stock subject to the Plan, or subject to any Stock Award, without the receipt of
consideration by the Company (through merger, consolidation, reorganization,
recapitalization, reincorporation, stock dividend, dividend in property other
than cash, stock split, liquidating dividend, combination of shares, exchange of
shares, change in corporate structure or other transaction not involving the
receipt of consideration by the Company), the Plan will be appropriately
adjusted in the class(es) and maximum number of securities subject to the Plan
pursuant to subsection 4(a), the number of Shares set forth in Sections 4(a)(i),
16(a)(i) and 16(a)(ii), and the maximum number of securities subject to awards
that may be granted to any person pursuant to subsection 5(c), and the
outstanding Stock Awards will be appropriately adjusted in the class(es) and
number of securities and price per share of Common Stock subject to such
outstanding Stock Awards. The Board shall make such adjustments, and its
determination shall be final, binding and conclusive. (The conversion of any
convertible securities of the Company shall not be treated as a transaction
"without receipt of consideration" by the Company.)

      (b)   CHANGE IN CONTROL--DISSOLUTION OR LIQUIDATION. In the event of a
dissolution or liquidation of the Company, then all outstanding Stock Awards
shall terminate immediately prior to such event.

      (c)   CHANGE IN CONTROL--ASSET SALE, MERGER, CONSOLIDATION OR REVERSE
MERGER. In the event of (i) a sale, lease or other disposition of all or
substantially all of the assets of the Company, (ii) a merger or consolidation
in which the Company is not the surviving corporation or (iii) a reverse merger

                                       16
<PAGE>
in which the Company is the surviving corporation but the shares of Common Stock
outstanding immediately preceding the merger are converted by virtue of the
merger into other property, whether in the form of securities, cash or
otherwise, then any surviving corporation or acquiring corporation shall assume
any Stock Awards outstanding under the Plan or shall substitute similar stock
awards (including an award to acquire the same consideration paid to the
shareholders in the transaction described in this subsection 11(c)) for those
outstanding under the Plan. In the event any surviving corporation or acquiring
corporation refuses to assume such Stock Awards or to substitute similar stock
awards for those outstanding under the Plan, then with respect to Stock Awards
held by Participants whose Continuous Service has not terminated, the vesting of
such Stock Awards (and, if applicable, the time during which such Stock Awards
may be exercised) shall be accelerated as to fifty percent (50%) of the then
unvested shares, and the Stock Awards shall terminate if not exercised (if
applicable) at or prior to such event. With respect to any other Stock Awards
outstanding under the Plan, such Stock Awards shall terminate if not exercised
(if applicable) prior to such event.

12.   AMENDMENT OF THE PLAN AND STOCK AWARDS.

      (a)   AMENDMENT OF PLAN. The Board at any time, and from time to time, may
amend the Plan. However, except as provided in Section 11 relating to
adjustments upon changes in Common Stock, no amendment shall be effective unless
approved by the shareholders of the Company to the extent shareholder approval
is necessary to satisfy the requirements of the Applicable Laws.

      (b)   SHAREHOLDER APPROVAL. The Board may, in its sole discretion, submit
any other amendment to the Plan for shareholder approval, including, but not
limited to, amendments to the Plan intended to satisfy the requirements of
Section 162(m) of the Code and the regulations thereunder regarding the
exclusion of performance-based compensation from the limit on corporate
deductibility of compensation paid to certain executive officers.

      (c)   CONTEMPLATED AMENDMENTS. It is expressly contemplated that the Board
may amend the Plan in any respect the Board deems necessary or advisable to
provide eligible Employees with the maximum benefits provided or to be provided
under the provisions of the Code and the regulations promulgated thereunder
relating to Incentive Stock Options and/or to bring the Plan and/or Incentive
Stock Options granted under it into compliance therewith.

      (d)   NO IMPAIRMENT OF RIGHTS. Rights under any Stock Award granted before
amendment of the Plan shall not be impaired by any amendment of the Plan unless
(i) the Company requests the consent of the Participant and (ii) the Participant
consents in writing.

      (e)   AMENDMENT OF STOCK AWARDS. The Board at any time, and from time to
time, may amend the terms of any one or more Stock Awards; provided, however,
that the rights under any Stock Award shall not be impaired by any such
amendment unless (i) the Company requests the consent of the Participant and
(ii) the Participant consents in writing.

                                       17
<PAGE>

13.   TERMINATION OR SUSPENSION OF THE PLAN.

      (a)   PLAN TERM. The Board may suspend or terminate the Plan at any time.
Unless sooner terminated, the Plan shall terminate on the day before the tenth
(10th) anniversary of the date the Plan is adopted by the Board or approved by
the shareholders of the Company, whichever is earlier. No Stock Awards may be
granted under the Plan while the Plan is suspended or after it is terminated.

      (b)   NO IMPAIRMENT OF RIGHTS. Suspension or termination of the Plan shall
not impair rights and obligations under any Stock Award granted while the Plan
is in effect except with the written consent of the Participant.

14.   EFFECTIVE DATE OF PLAN.

      The Plan shall become effective as determined by the Board, but no Stock
Award shall be exercised (or, in the case of a stock bonus, shall be granted)
unless and until the Plan has been approved by the shareholders of the Company,
which approval shall be within twelve (12) months before or after the date the
Plan is adopted by the Board.

15.   CHOICE OF LAW.

      All questions concerning the construction, validity and interpretation of
this Plan shall be governed by the law of the State of Washington, without
regard to such state's conflict of laws rules.

16.   AUTOMATIC OPTION GRANTS TO NON-EMPLOYEE DIRECTORS

      (a)   GRANT DATES. Option grants to Non-Employee Directors shall
automatically be made on the dates specified below:

            (i)   Each Non-Employee Director who is first elected or appointed
to the Board at any time after the IPO Date shall automatically be granted, on
the date of such initial election or appointment, an Option to purchase 20,000
Shares (the "INITIAL GRANT").

            (ii)  Commencing in 2005, on the date of each annual shareholders
meeting, each individual who is to continue to serve as a Non-Employee Director
shall automatically be granted an Option to purchase 5,000 Shares (the "ANNUAL
GRANT"), provided, however, that such individual has served as a Non-Employee
Director for at least six (6) months as of the date of the shareholders meeting.

      (b)   EXERCISE PRICE.

            (i)   The Option Price for Options granted under this Section 16
shall be equal to one hundred percent (100%) of the Fair Market Value of the
Shares on the Option grant date.

                                       18
<PAGE>

            (ii)  The Option Price for Options granted under this Section 16
shall be payable in one or more of the alternative forms and in the manner
authorized pursuant to Section 6(d).

      (c)   OPTION TERM. Each Option shall have a term of ten (10) years
measured from the Option grant date.

      (d)   EXERCISE AND VESTING OF OPTIONS. Except as otherwise determined by
the whole Board, the Shares underlying each Option granted pursuant to Section
16(a)(i) shall vest and become exercisable as to 8.33% of the Shares subject to
the Option at the end of each three-month period following the date of grant,
for so long as the Non-Employee Director continuously remains a Director of the
Company (and vesting in full three years from the date of grant). Except as
otherwise determined by the whole Board, the Shares underlying each Option
granted pursuant to Section 16(a)(ii) shall vest and become exercisable as to
25% of the Shares subject to the Option at the end of each three-month period
following the date of grant, for so long as the Non-Employee Director
continuously remains a Director of the Company.

      (e)   TERMINATION OF SERVICE. The following provisions shall govern the
exercise of any Options held by the Participant at the time he or she ceases to
serve as a Non-Employee Director, Employee or Consultant:

            (i)   GENERAL. After termination of service as a Non-Employee
Director (the "CESSATION DATE"), the Participant's Options granted under this
Section 16 shall be exercisable to the extent (but only to the extent) they are
vested on the Cessation Date and only during the three months after such
Cessation Date, but in no event after the Expiration Date. To the extent the
Participant does not exercise an Option within the time specified for exercise,
the Option shall automatically terminate.

            (ii)  DEATH OR DISABILITY. If a Participant's cessation of service
is due to death or Disability (as determined by the Board), all Options of that
Participant granted under this Section 16, to the extent exercisable upon such
Cessation Date, may be exercised for one (1) year after the Cessation Date, but
in no event after the Expiration Date. In the case of a cessation of service due
to death, an Option may be exercised by the person entitled to exercise the
Option under the Participant's will or as determined in probate. In the case of
a cessation of service due to Disability, if a guardian or conservator has been
appointed to act for the Participant and been granted this authority as part of
that appointment, that guardian or conservator may exercise the Option on behalf
of the Participant. Death or Disability occurring after a Participant's
cessation of service shall not cause the cessation of service to be treated as
having occurred due to death or Disability. To the extent an Option is not so
exercised within the time specified for its exercise, the Option shall
automatically terminate.

      (f)   BOARD DISCRETION. Options granted under this Section 16 are not
intended as the exclusive Awards that may be made to Non-Employee Directors
under this Plan. The Board may, in its discretion, amend the Plan with respect
to the terms of the Options herein, may add or

                                       19
<PAGE>

substitute other types of awards or may temporarily or permanently suspend
Awards hereunder, all without approval of the Company's shareholders.

      (g)   CERTAIN TRANSACTIONS AND EVENTS. Section 11 above shall generally
apply to Options granted under this Section 16; provided however that in the
event of a transaction specified in Section 11(c), while the Participant remains
a Non-Employee Director, the Shares at the time subject to each outstanding
Option held by such Participant, but not otherwise vested, shall automatically
vest as to fifty percent (50%) of the otherwise then-unvested Shares so that
each such Option shall, immediately prior to the effective date of the
transaction, become fully vested and exercisable for such Shares. Immediately
following the consummation of the transaction, each Option shall terminate and
cease to be outstanding, except to the extent assumed by the successor
corporation (or an affiliate thereof).

      (h)   The grant of Options pursuant to this Section 16 shall in no way
affect the right of the Company to adjust, reclassify, reorganize or otherwise
change its capital or business structure or to merge, consolidate, dissolve,
liquidate or sell or transfer all or any part of its business or assets.

      (i)   The remaining terms of each Option granted pursuant to this Section
16 shall, as applicable, be the same as terms in effect for Awards granted under
this Plan. Notwithstanding the foregoing, the provisions of Sections 6(h), (j)
and (k) shall not apply to Options granted pursuant to this Section 16.

      (j)   LIMITED TRANSFERABILITY OF OPTIONS. Each Option granted pursuant to
this Section 16 may be assigned in whole or in part during the Participant's
lifetime to one (1) or more members of the Participant's family or to a trust
established exclusively for one (1) or more such family members or to an entity
in which the Participant is majority owner or to the Participant's former
spouse, to the extent such assignment is in connection with the Participant's
estate or financial plan or pursuant to a domestic relations order. The assigned
portion may only be exercised by the person or persons who acquire a proprietary
interest in the Option pursuant to the assignment. The terms applicable to the
assigned portion shall be the same as those in effect for the Option immediately
prior to such assignment and shall be set forth in such documents issued to the
assignee as the Board may deem appropriate. The Participant may also designate
one (1) or more persons as the beneficiary or beneficiaries of his or her
outstanding Options under this Section 16, and those Options shall, in
accordance with such designation, automatically be transferred to such
beneficiary or beneficiaries upon the Participant's death while holding those
Options. Such beneficiary or beneficiaries shall take the transferred Options
subject to all the terms and conditions of the applicable award agreement
evidencing each such transferred Option, including (without limitation) the
limited time period during which the Option may be exercised following the
Participant's death.

                                       20
<PAGE>

                             CELEBRATE EXPRESS, INC.
                 2004 AMENDED AND RESTATED EQUITY INCENTIVE PLAN

                             STOCK OPTION AGREEMENT
                   (INCENTIVE AND NONSTATUTORY STOCK OPTIONS)

      Pursuant to your Stock Option Grant Notice ("Grant Notice") and this Stock
Option Agreement, Celebrate Express, Inc. (the "Company") has granted you an
option under its 2004 Amended and Restated Equity Incentive Plan (the "Plan") to
purchase the number of shares of the Company's Common Stock indicated in your
Grant Notice at the exercise price indicated in your Grant Notice. Defined terms
not explicitly defined in this Stock Option Agreement but defined in the Plan
shall have the same definitions as in the Plan.

      The details of your option are as follows:

      1.    VESTING. Subject to the limitations contained herein, your option
will vest as provided in your Grant Notice, provided that vesting will cease
upon the termination of your Continuous Service.

      2.    NUMBER OF SHARES AND EXERCISE PRICE. The number of shares of Common
Stock subject to your option and your exercise price per share referenced in
your Grant Notice may be adjusted from time to time for capitalization
adjustments, as provided in the Plan.

      3.    DESIGNATION OF OPTION. Your option is intended to be an Incentive
Stock Option as defined in Section 422 of the Code only to the extent so
designated in your Grant Notice, and to the extent it is not so designated or to
the extent your option does not qualify as an Incentive Stock Option, it is
intended to be a Nonstatutory Stock Option.

      4.    METHOD OF PAYMENT. Payment of the exercise price is due in full upon
exercise of all or any part of your option. You may elect to make payment of the
exercise price in cash or by check or wire transfer or in any other manner
PERMITTED BY YOUR GRANT NOTICE, which may include one or more of the following:

  (a) In the Company's sole discretion at the time your option is exercised and
      provided that at the time of exercise the Common Stock is publicly traded
      and quoted regularly in The Wall Street Journal, pursuant to a "same-day
      sale" cashless brokered exercise program involving one or more brokers
      that complies with the requirements of Regulation T as promulgated by the
      Federal Reserve Board and that, prior to the issuance of Common Stock,
      results in either the receipt of cash (or check) by the Company or the
      receipt of irrevocable instructions to pay the aggregate exercise price to
      the Company from the sales proceeds.

  (b) Provided that at the time of exercise the Common Stock is publicly traded
      and quoted regularly in The Wall Street Journal, by delivery of
      already-owned shares of Common Stock either that you have held for the
      period required to avoid a charge to the

                                        1

<PAGE>

      Company's reported earnings (generally six months) or that you did not
      acquire, directly or indirectly from the Company, that are owned free and
      clear of any liens, claims, encumbrances or security interests, and that
      are valued at Fair Market Value on the date of exercise. "Delivery" for
      these purposes, in the sole discretion of the Company at the time you
      exercise your option, shall include delivery to the Company of your
      attestation of ownership of such shares of Common Stock in a form approved
      by the Company. Notwithstanding the foregoing, you may not exercise your
      option by tender to the Company of Common Stock to the extent such tender
      would violate the provisions of any law, regulation or agreement
      restricting the redemption of the Company's stock.

      5.    WHOLE SHARES. You may exercise your option only for whole shares of
Common Stock.

      6.    SECURITIES LAW COMPLIANCE. Notwithstanding anything to the contrary
contained herein, you may not exercise your option unless the shares of Common
Stock issuable upon such exercise are then registered under the Securities Act
or, if such shares of Common Stock are not then so registered, the Company has
determined that such exercise and issuance would be exempt from the registration
requirements of the Securities Act. The exercise of your option must also comply
with other applicable laws and regulations governing your option, and you may
not exercise your option if the Company determines that such exercise would not
be in material compliance with such laws and regulations.

      7.    TERM. The term of your option commences on the Date of Grant and
expires upon the EARLIEST of the following:

  (a) three (3) months after the termination of your Continuous Service for any
      reason other than your Disability or death, provided that if during any
      part of such three- (3-) month period your option is not exercisable
      solely because of the condition set forth in the preceding paragraph
      relating to "Securities Law Compliance," your option shall not expire
      until the earlier of the Expiration Date or until it shall have been
      exercisable for an aggregate period of three (3) months after the
      termination of your Continuous Service during which the exercise of the
      Option would not be in violation of the condition set forth in the
      preceding paragraph relating to "Securities Law Compliance";

  (b) twelve (12) months after the termination of your Continuous Service due to
      your Disability;

  (c) eighteen (18) months after your death if you die either during your
      Continuous Service or within three (3) months after your Continuous
      Service terminates; or

  (d) the Expiration Date indicated in your Grant Notice.

      If your option is an incentive stock option, note that, to obtain the
federal income tax advantages associated with an "incentive stock option," the
Code requires that at all times beginning on the date of grant of your option
and ending on the day three (3) months before the date of your option's
exercise, you must be an employee of the Company or an Affiliate, except

                                       2

<PAGE>

in the event of your death or Disability. The Company has provided for extended
exercisability of your option under certain circumstances for your benefit but
cannot guarantee that your option will necessarily be treated as an "incentive
stock option" if you continue to provide services to the Company or an Affiliate
as a Consultant or Director after your employment terminates or if you otherwise
exercise your option more than three (3) months after the date your employment
terminates.

      8.    EXERCISE.

  (a) You may exercise the vested portion of your option during its term by
      delivering a Notice of Exercise (in a form designated by the Company)
      together with the exercise price to the Secretary of the Company, or to
      such other person as the Company may designate, during regular business
      hours, together with such additional documents as the Company may then
      require.

  (b) By exercising your option you agree that, as a condition to any exercise
      of your option, the Company may require you to enter into an arrangement
      providing for the payment by you to the Company of any tax withholding
      obligation of the Company arising by reason of (1) the exercise of your
      option, (2) the lapse of any substantial risk of forfeiture to which the
      shares of Common Stock are subject at the time of exercise, or (3) the
      disposition of shares of Common Stock acquired upon such exercise.

  (c) If your option is an incentive stock option, by exercising your option you
      agree that you will notify the Company in writing within fifteen (15) days
      after the date of any disposition of any of the shares of the Common Stock
      issued upon exercise of your option that occurs within two (2) years after
      the date of your option grant or within one (1) year after such shares of
      Common Stock are transferred upon exercise of your option.

  (d) By exercising your option you agree that the Company (or a representative
      of the underwriter(s)) may, in connection with the first underwritten
      registration of the offering of any securities of the Company under the
      Securities Act, require that you not sell, dispose of, transfer, make any
      short sale of, grant any option for the purchase of, or enter into any
      hedging or similar transaction with the same economic effect as a sale,
      any shares of Common Stock or other securities of the Company held by you,
      for a period of time specified by the underwriter(s) (not to exceed one
      hundred eighty (180) days) following the effective date of the
      registration statement of the Company filed under the Securities Act. You
      further agree to execute and deliver such other agreements as may be
      reasonably requested by the Company and/or the underwriter(s) that are
      consistent with the foregoing or that are necessary to give further effect
      thereto. In order to enforce the foregoing covenant, the Company may
      impose stop-transfer instructions with respect to your shares of Common
      Stock until the end of such period.

      9.    TRANSFERABILITY. Your option is not transferable, except by will or
by the laws of descent and distribution, and is exercisable during your life
only by you. Notwithstanding the foregoing, by delivering written notice to the
Company,in a form satisfactory to the Company, you may designate a third party
who, in the event of your death, shall thereafter be entitled to exercise your
option.

                                       3

<PAGE>
      10.   RIGHT OF FIRST REFUSAL.

  (a) Upon any proposed transfer by you of any shares subject to your option
      (other than by will or by the applicable laws of descent and
      distribution), the Company shall have a right of first refusal to purchase
      the shares sought to be transferred under the same terms and conditions of
      the proposed transfer. Neither you, nor any vendee, transferee, successor,
      assignee, donee, or pledgee of any of the shares ("Transferee"), shall
      sell, transfer, encumber, pledge, gift or otherwise dispose of or in any
      way alienate any or all of the shares or any interest therein,
      voluntarily, by operation of law, or otherwise, without obtaining the
      prior written consent of the Company unless you or such Transferee first
      shall have given written notice ("Notice") to the Company of the intention
      to do so. The Notice shall specify the name of the proposed Transferee,
      the number of shares to be transferred ("Noticed Shares"), the price
      offered per Noticed Share, payment terms, and any other material terms or
      conditions of the proposed transfer.

  (b) At any time within forty-five (45) days after receipt of the Notice by the
      Company ("Notice Date"), the Company shall have the right to purchase all
      or any part of the Noticed Shares at a price per Noticed Share ("Company's
      Purchase Price") equal to the price to be received by you as listed in the
      Notice. If the transfer is a gift or other conveyance where no
      consideration is received, the Company's Purchase Price shall be your
      option exercise price. The Company may exercise such right by notifying
      you thereof within forty-five (45) days after the Notice Date.

  (c) On exercise of such right by the Company, the Company shall pay the
      Company's Purchase Price, by check or in cash, to the owner of the Noticed
      Shares and the owner of the Noticed Shares shall deliver to the Company
      all certificates representing the Noticed Shares properly endorsed in
      blank.

  (d) If the Company does not exercise its right of first refusal, then you
      shall have thirty (30) days to transfer the shares only under the same
      terms as described in the Notice. Any Transferee shall hold such shares
      subject to all of the terms and conditions of the Plan. The terms and
      conditions of any such transfer as specified in the Notice shall not be
      changed without a new notice of intention to transfer and compliance with
      this section.

  (e) Notwithstanding the foregoing provisions, any of the shares acquired in
      compliance herewith may be conveyed upon your death by will or by the
      applicable laws of descent and distribution. Any such donee shall hold
      such shares subject to all of the provisions of the Plan and this option
      and shall not sell, transfer, encumber, pledge, hypothecate, transfer by
      gift or otherwise dispose of or in any way alienate any or all of the
      shares or any right or interest therein except in accordance with the
      terms and conditions of the Plan.

                                       4

<PAGE>

  (f) Notwithstanding anything else to the contrary in this Stock Option
      Agreement or the Plan, this Section 10 shall terminate on the IPO Date.

      11.   RIGHT OF REPURCHASE. To the extent provided in the Company's bylaws
as amended from time to time, the Company shall have the right to repurchase all
or any part of the shares of Common Stock you acquire pursuant to the exercise
of your option.

      12.   OPTION NOT A SERVICE CONTRACT. Your option is not an employment or
service contract, and nothing in your option shall be deemed to create in any
way whatsoever any obligation on your part to continue in the employ of the
Company or an Affiliate, or of the Company or an Affiliate to continue your
employment. In addition, nothing in your option shall obligate the Company or an
Affiliate, their respective shareholders, Boards of Directors, Officers or
Employees to continue any relationship that you might have as a Director or
Consultant for the Company or an Affiliate.

      13.   WITHHOLDING OBLIGATIONS.

  (a) At the time you exercise your option, in whole or in part, or at any time
      thereafter as requested by the Company, you hereby authorize withholding
      from payroll and any other amounts payable to you, and otherwise agree to
      make adequate provision for (including by means of a "cashless exercise"
      pursuant to a program developed under Regulation T as promulgated by the
      Federal Reserve Board to the extent permitted by the Company), any sums
      required to satisfy the federal, state, local and foreign tax withholding
      obligations of the Company or an Affiliate, if any, which arise in
      connection with your option.

  (b) Upon your request and subject to approval by the Company, in its sole
      discretion, and compliance with any applicable conditions or restrictions
      of law, the Company may withhold from fully vested shares of Common Stock
      otherwise issuable to you upon the exercise of your option a number of
      whole shares of Common Stock having a Fair Market Value, determined by the
      Company as of the date of exercise, not in excess of the minimum amount of
      tax required to be withheld by law.

  (c) You may not exercise your option unless the tax withholding obligations of
      the Company and/or any Affiliate are satisfied. Accordingly, you may not
      be able to exercise your option when desired even though your option is
      vested, and the Company shall have no obligation to issue a certificate
      for such shares of Common Stock or release such shares of Common Stock
      from any escrow provided for herein.

      14.   NOTICES. Any notices provided for in your option or the Plan shall
be given in writing and shall be deemed effectively given upon receipt or, in
the case of notices delivered by mail by the Company to you, five (5) days after
deposit in the United States mail, postage prepaid, addressed to you at the last
address you provided to the Company.

      15.   GOVERNING PLAN DOCUMENT. Your option is subject to all the
provisions of the Plan, the provisions of which are hereby made a part of your
option, and is further subject to all interpretations, amendments, rules and
regulations which may from time to time be promulgated and adopted pursuant to
the Plan. In the event of any conflict between the provisions of your option and
those of the Plan, the provisions of the Plan shall control.

                                        5

<PAGE>
      IN WITNESS WHEREOF, the parties hereto have executed this Agreement on the
date first above written.

CELEBRATE EXPRESS, INC.                    OPTIONHOLDER

By:________________________________        By:__________________________________
            Signature                                 Signature

Name:______________________________        Printed Name:______________________

Title:_____________________________

                                        6

<PAGE>

                             CELEBRATE EXPRESS, INC.
                            STOCK OPTION GRANT NOTICE
                (2004 AMENDED AND RESTATED EQUITY INCENTIVE PLAN)

Celebrate Express, Inc. (the "Company"), pursuant to its 2004 Amended and
Restated Equity Incentive Plan (the "Plan"), hereby grants to Optionholder an
option to purchase the number of shares of the Company's Common Stock set forth
below. This option is subject to all of the terms and conditions as set forth
herein and in the Stock Option Agreement, the Plan and the Notice of Exercise,
all of which are attached hereto and incorporated herein in their entirety.

Optionholder:                         <<OPTIONEE>>
Date of Grant:                        <<GRANTDATE>>
Vesting Commencement Date:            <<VESTINGDATE>>
Fully-Vested Date:                    <<100%VESTEDDATE>>
                                       (Subject to satisfaction of service
                                        requirements)
Number of Shares Subject to Option:   <<OPTIONAMOUNT>>
Exercise Price (Per Share):           <<PRICE>>
Total Exercise Price:                 -------------------------------------
Expiration Date:                       <<EXPIREDATE>>
                                       (Subject to earlier termination under
                                        certain circumstances)

TYPE OF GRANT:  [ ]  Incentive Stock Option(1)    [ ]  Nonstatutory Stock Option

EXERCISE SCHEDULE: [X] Same as Vesting Schedule

VESTING SCHEDULE:  1/4th of the shares vest one year after the Vesting
                    Commencement Date with the remaining shares vesting
                    quarterly thereafter in equal installments over the
                    next three years.

PAYMENT:          By one or a combination of the following items (described in
                  the Stock Option Agreement):

                        By cash, check or wire transfer
                        Pursuant to a "same-day sale" cashless brokered exercise
                          program if the Shares are publicly traded and the
                          Company is then permitting participation in such a
                          program

                        By delivery of already-owned shares if the Shares are
                        publicly traded

ADDITIONAL TERMS/ACKNOWLEDGEMENTS: The undersigned Optionholder acknowledges
receipt of, and understands and agrees to, this Grant Notice, the Stock Option
Agreement and the Plan. Optionholder further acknowledges that as of the Date of
Grant, this Grant Notice, the Stock Option Agreement and the Plan set forth the
entire understanding between Optionholder and the Company regarding the
acquisition of stock in the Company and supersede all prior oral and written
agreements on that subject with the exception of (i) options previously granted
and delivered to Optionholder under the Plan, and (ii) the following agreements
only:

--------------
(1) If this is an incentive stock option, it (plus your other outstanding
incentive stock options) cannot be first exercisable for more than $100,000 in
any calendar year. Any excess over $100,000 is a nonstatutory stock option.

                                        1
<PAGE>

      OTHER AGREEMENTS:      ___________________________________________________
                             ___________________________________________________

      In addition, the undersigned Optionholder agrees and acknowledges that
Optionholder's rights to any shares of the Company's Common Stock underlying
this option will be earned only as Optionholder provides services to the Company
over time, that the grant of this option is not as consideration for services
Optionholder rendered to the Company prior to Optionholder's Vesting
Commencement Date, and that nothing in this Grant Notice or the attached
documents confers upon Optionholder any right to continue Optionholder's
employment or consulting relationship with the Company for any period of time,
nor does it interfere in any way with Optionholder's right or the Company's
right to terminate that relationship at any time, for any reason, with or
without cause.

CELEBRATE EXPRESS, INC.                        OPTIONHOLDER:

By:   ______________________________________   ________________________________
             Signature                               Signature

Title:______________________________________   Date:____________________________

Date: ______________________________________

ATTACHMENTS: Stock Option Agreement, 2004 Amended and Restated Equity
             Incentive Plan and Notice of Exercise

                                        2
<PAGE>

                               NOTICE OF EXERCISE

Celebrate Express, Inc.
11220 - 120th Avenue, N.E.
Kirkland, WA 98033                          Date of Exercise: _______________

Ladies and Gentlemen:

      This  constitutes notice under my stock option that I elect to purchase
the number of shares for the price set forth below.

   Type of option (check one):          Incentive [ ]          Nonstatutory [ ]

   Stock option dated:               _________________

   Number of shares as
   to which option is
   exercised:                        ________________

   Certificates to be
   issued in name of:                _________________

   Total exercise price:             $________________

   Payment delivered
   herewith:                         $________________

      By this exercise, I agree (i) to provide such additional documents as you
may require pursuant to the terms of the 2004 Amended and Restated Equity
Incentive Plan, (ii) to provide for the payment by me to you (in the manner
designated by you) of your withholding obligation, if any, relating to the
exercise of this option, and (iii) if this exercise relates to an incentive
stock option, to notify you in writing within fifteen (15) days after the date
of any disposition of any of the shares of Common Stock issued upon exercise of
this option that occurs within two (2) years after the date of grant of this
option or within one (1) year after such shares of Common Stock are issued upon
exercise of this option.

                                         Very truly yours,
                                         ______________________________________

                                         Print Name:  _________________________

                                         Address:     _________________________

                                         ______________________________________

                                         Telephone:____________________________

                                       1

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