Document:

EMPLOYMENT AGREEMENT

      THIS EMPLOYMENT AGREEMENT (the "Agreement") is made and entered into as of
the 1st day of November 2004 by and among

                   Vitalstate US  Inc.
                   1499 High Ridge Road
                   Boynton Beach,
                   Florida 33426,
                                                             (the "Corporation")

                       And

                   Lisa Dalberth
                   4488 Woodfield Blvd.
                   Boca Raton, Florida 33434
                                                               (the "Executive")

      WHEREAS  the  Corporation  is engaged  in the  business  of the  creation,
production, sale and marketing of nutraceuticals (thereinafter the "Business");

      WHEREAS the Corporation  wishes to employ the Executive as Chief Financial
Officer ("CFO") and the Executive  agrees to be so employed,  in accordance with
terms, covenants and conditions thereinafter set forth;

      NOW,  THEREFORE,  FOR THE REASONS SET FORTH ABOVE, AND IN CONSIDERATION OF
THE MUTUAL  PREMISES AND AGREEMENTS  HEREINAFTER  SET FORTH,  THE PARTIES HERETO
ACKNOWLEDGE AND AGREE AS FOLLOWS:

1.    NATURE AND TERM OF SERVICES

1.1 The Corporation  hereby  employs,  engages and hires the Executive as CFO of
the  Corporation,  and the Executive  hereby  accepts and agrees to such hiring,
engagement and employment.

1.2 Nature of Services. The Executive agrees that she shall provide her services
to the  Corporation on a full-time  basis,  the whole according to the terms and
conditions  hereinafter set forth, as an Executive to the  Corporation,  and her
duties as such an Executive shall include  oversight and  responsibility  of all
finance and accounting related activities, including those activities handled by
outside  professionals  and as set forth from time to time by the  Corporation's
board of  directors.  The services to be performed  by the  Executive  hereunder
shall be  principally  performed  from  the  Corporation  headquarters  based in
Boynton Beach, Florida. reporting directly to the CEO/President.  However, it is
further  understood by all parties that the  Executive  may indeed  exercise her
right to move with her family  outside of South Florida,  thereinafter  she will
fulfill  her duties full time from a  home-based  office  reporting  through the
Corporate headquarters in Florida directly to the CEO/President.  This potential
move  will in no way  cause  effect  on any  other  terms or  condition  of this
Agreement.

<PAGE>

In her capacity as Chief  Financial  Officer of the  Corporation,  the Executive
shall  perform  all of the  duties  and  have all of the  obligations  as may be
provided  and  determined  in the  Articles of  Incorporation  and Bylaws of the
Corporation,  as the  same  may be  amended  from  time to  time,  and as may be
determined by the Board and the Executive Committee.  Throughout her employment,
the  Executive  shall devote all of her time,  energy and skill  during  regular
business  hours  to the  performance  of the  duties  of her  employment  by the
Corporation  (reasonable  vacation time and  reasonable  absences due to illness
excepted),  shall faithfully and  industriously  perform such duties,  and shall
diligently  follow and  implement all  management  policies and decisions of the
Corporation.

1.3 Term.  The  initial  term of this  Agreement  (the  "Term")  shall  commence
November 1, 2004 and shall continue  through December 31, 2004. The term of this
Agreement  shall  automatically  renew for  successive one (1) year terms unless
terminated  sooner as provided in Section 4 below.  The Term shall be renewable,
at the option of the Executive and the  Corporation as per mutually  agreed upon
terms,  including any extensions  thereof,  is subject to earlier termination as
provided herein.

2.    COMPENSATION

      2.1 Salary.  In consideration  for the Services to be rendered pursuant to
this  Agreement,   and  in  further   consideration  for  the   confidentiality,
non-competition and  non-solicitation  covenants described in Article 3 thereof,
the  Corporation  shall pay the  Executive  an  initial  base  annual  salary of
USD$150,000  per  annum   (hereinafter  the  "Salary")  subject  to  the  normal
deductions at source, payable in semi-weekly installments.  During the Term, the
annual  base  Salary  shall be  reviewed  periodically  by the  Corporation  for
possible increase.

      Thereafter,  any increases to the Base Salary shall be decided,  effective
on January 1st of each calendar  year,  beginning on January 1, 2005.  The first
year Base  Salary  increase  shall be  determined  based upon  mutual  agreement
between the  Executive  and the  Executive  Committee  and shall  consider  such
factors as the successful capitalization of the Company. For future years, it is
understood  that  normal and  customary  Base  Salary  increases  may occur once
business  conditions  improve,  but shall not be less than the  increase  in the
Consumer Price Index during such successful periods.

Executive  will also be entitled to 4 weeks paid vacation per year / 1 week paid
sick time and 2 paid personal  days yearly.  Vacation time is to be authorized /
approved in advanced by CEO / President.

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<PAGE>

2.2 Bonus. The Executive shall be eligible to receive, but shall not be required
to  receive,  an annual  bonus  (the  "Bonus")  based upon  certain  performance
parameters against [a plan to be mutually agreed upon by the Executive Committee
and the  Executive]  from  time to time.  Each  Bonus  shall  correspond  to the
calendar  year and shall be paid to the  Executive  in one lump sum,  subject to
deductions  and  withholding  as  provided  in Section  2(a)  above,  during the
calendar  year  immediately  following  the  calendar  year to which  the  Bonus
relates. [The Executive Committee, in its discretion, shall determine the amount
of the Executive's Bonus, if any, and the method of determining eligibility

2.3 Other  Benefits.  Executive will receive a benefit  program paid for 100% by
the  Corporation,  that includes health insurance (with vision care), and dental
insurance.  The Executive will also be eligible to participate any other benefit
plans  offered  through  the  Corporation  including  but not  limited  to, life
insurance,  pension  plans,  retirement  or other  benefit  plans adopted by the
Corporation  for the  general  and  overall  benefit  of all  Executives  of the
Corporation.

2.4 Expense Reimbursement.  The Corporation will reimburse the Executive for all
documented and approved expenses incurred by the Executive in the performance of
his duties under this Agreement, to be paid in accordance with the Corporation's
practices  in  effect  from time to time.  The  Corporation  will at their  sole
expense supply a computer for use in the home office and other necessary  office
hardware  (which  will  remain  the  property  of the  Corporation  should  this
agreement  expire  or be  terminated,  at  which  point  the  executive  will be
responsible to return the computer to the Corporation).

2.5  Professional  Company  Membership  Dues and  Expenses.  If  desired  by the
Executive,  and as a benefit to the Corporation,  the Corporation  shall pay for
the  Executive's  expenses of  membership,  receipt of  publications,  and other
participation in the relevant programs and activities.

3.    CONFIDENTIAL INFORMATION, NON-COMPETITION, AND HOLD HARMLESS

3.1 Definition of Confidential Information.  For the purposes of this Agreement,
the term "Confidential Information" shall mean, but shall not be limited to, any
technical or non-technical data,  formulae,  patterns,  compilations,  programs,
patents,  trade  secrets,  devices,  methods,  techniques,   drawings,  designs,
processes,  procedures,   improvements,   models,  experimental  work,  manuals,
financial data,  financial  information,  business  forecast  information,  cash
requirement  information,   organization  information,   valuation  information,
technical information,  scientific information,  research information,  lists of
actual  or  potential  customers  or  suppliers,  of  the  Corporation  and  any
information  regarding  any of the  Corporation's  marketing,  sales  or  dealer
network,  which is not generally known to the public through legitimate origins.
The Corporation and the Executive  acknowledge and agree that such  Confidential
Information is extremely valuable to the Corporation. In the event that any part
of the Confidential  Information  becomes  generally known to the public through
legitimate  origins (other than by breach of this  Agreement by the  Executive),
that part of the Confidential Information shall no longer be deemed Confidential
Information for the purposes of this Agreement, but the Executive shall continue
to be  bound  by the  terms  of  this  Agreement  as to all  other  Confidential
Information.

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<PAGE>

3.2 Non-Disclosure of Confidential Information. Unless otherwise required by law
or expressly authorized in writing by the Corporation,  the Executive shall not,
at any time during or after the Term,  directly or  indirectly,  in any capacity
whatsoever,  except in  connection  with  services  to be  performed  hereunder,
divulge, disclose or communicate to any person, moral or physical,  entity, firm
or any other third party, or utilize for the Executive's personal benefit or for
the benefit of any competitor of the Corporation, any Confidential Information.

3.3 Delivery Upon  Termination.  Confidential  Information  and all  embodiments
thereof (including any information on computer disk and any reproductions) shall
remain the sole property of the  Corporation,  and  immediately  upon request to
this effect or  immediately  upon  termination of this Agreement for any reason,
the Executive  shall promptly  deliver to the  Corporation  all  correspondence,
drawings,   manuals,  letters,  notes,  notebooks,   reports,  programs,  plans,
proposals,   financial   documents,   or  any  other  documents  concerning  the
Corporation's customers,  dealer network, marketing strategies,  products and/or
processes which contain Confidential Information.

3.4 Covenant Not To Compete. During the Term (as previously defined in 1.3), the
Executive shall not, on his own behalf or on behalf of another,  either alone or
in combination with others,  directly or indirectly,  in any capacity whatsoever
(including,  without limitation, as an Executive,  employer,  principal,  agent,
joint  venture,   partner,   shareholder  or  other  equityholder,   independent
contractor, licensor, licensee, franchisor, franchisee, distributor, consultant,
supplier or trustee):

                  (i)   engage  anywhere  in  Canada  and the  United  States of
                        America  (hereinafter  the "Territory") in any aspect of
                        the Business for purposes which are competitive with the
                        Business as conducted by the Corporation;

                  (ii)  have any  ownership or equity  interest in any business,
                        firm, corporation,  joint venture,  partnership or other
                        entity  engaged  in any  aspect of the  Business  in the
                        Territory  (other  than 5% or less of a publicly  traded
                        Corporation); or

                  (iii) consult  with or assist any  person,  moral or  physical
                        (other than the  Corporation) who or which is engaged in
                        any aspect of the Business in the Territory for purposes
                        which are competitive  with the Business as conducted by
                        the Corporation.

3.5  Covenant of  Non-Solicitation.  During the Term (as  previously  defined in
1.3), the Executive shall not, on his own behalf or on behalf of another, either
alone or in combination  with others,  directly or  indirectly,  in any capacity
whatsoever (including, without limitation, as an Executive, employer, principal,
agent, joint venturer, partner, shareholder, or other equityholder,  independent
contractor, licensor, licensee, franchisor, franchisee, distributor, consultant,
supplier or trustee):

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<PAGE>

                  (i)   solicit  or  assist  any  third  party  to  solicit  any
                        Executives  of the  Corporation  to become  an  officer,
                        director,  Executive or agent of the Corporation or such
                        third  party,   or   otherwise   entice  away  from  the
                        employment  of  the  Corporation  any  Executive  of the
                        Corporation; or

                  (ii)  (a)  canvass  or  solicit  (or  procure  or  assist  the
                        canvassing  or the  soliciting  of) any  customer of the
                        Corporation for purposes which are competitive  with the
                        Business as conducted by the Corporation; or

                  (b)   accept  (or  procure or assist  the  acceptance  of) any
                        business  from  any  customer  of  the  Corporation  for
                        purposes  which are  competitive  with the  Business  as
                        conducted by the Corporation.

3.6  Assignment of  Consultation  Inventions.  The Executive  shall disclose and
assign  to the  Corporation  any  and all  materials  of a  proprietary  nature,
including,  but not limited to,  material  subject to protection as Confidential
Information,  trade secrets or as patentable or copyrightable  ideas,  which the
Executive may  conceive,  invent,  create or discover,  either solely or jointly
with another or others,  during the Term,  in  connection  with the rendering of
Services  hereunder and which relates to or is capable of use in connection with
the business of the Corporation or any services or products offered,  performed,
produced,  used,  sold or being  developed by the  Corporation  at the time said
material is developed as it pertains to Vitalstate.

3.7  Additional   Documentation.   The  Executive  will,  upon  request  of  the
Corporation,  either  during  or at any  time  after  the  termination  of  this
Agreement, execute and deliver all papers, including applications for patents or
copyrights, and do such other acts (solely at the Corporation `s expense) as may
be necessary to obtain and to maintain  proprietary  rights in the  Confidential
Information  specified  in  Section  3.6 above and the  materials  specified  in
Section 3.6 above,  in any and all  countries  and to vest title  thereto in the
Corporation.

3.8 Other  Remedies.  In the event that the Executive  breaches any of the terms
contained  in this  Section 3, the  Executive  stipulates  that said breach will
result in  immediate  and  irreparable  harm to the business and goodwill of the
Corporation and that damages,  if any, and remedies at law for such breach would
be  inadequate.  In  addition  to any and all  such  remedies  available  to the
Corporation,  the  Corporation  shall  therefore  be  entitled  to apply for and
receive from any court of competent  jurisdiction  an injunction to restrain any
violation of this  Agreement  and for such further  relief as the court may deem
just and proper.

3.9 Hold Harmless.  The Company agrees to hold harmless the CFO from any and all
liability,  including claims,  demands,  losses, costs, damages, and expenses of
every kind and description  (including death), or damages to persons or property
arising  out of or in  connection  with or  occurring  during the course of this
agreement where liability is founded upon and grows out of the acts or omissions
of any of the  officers,  employees or agents of the Company while acting within
the scope of their employment  where  protection is afforded by Federal,  State,
and/or local law.

                                       5
<PAGE>

3.10  Continuing  Obligations.  The  obligations,  duties and liabilities of the
Executive  pursuant to Section 3 of this Agreement are continuing,  absolute and
unconditional  and shall  remain in full  force and effect as  provided  therein
despite any termination of this Agreement for any reason whatsoever,  including,
but not limited to, the expiration of the Term.

4.    TERMINATION

4.1 Termination for Cause;  Death or Disability of Executive.  In the event of a
material  breach by the  Executive  under this  Agreement,  or upon his death or
permanent  disability  such  that the  Executive  cannot  perform  the  Services
hereunder, this Agreement may be terminated by the Corporation without notice or
penalty. Notwithstanding the foregoing, any Salary earned by the Executive prior
to such termination, death or disability shall remain payable by the Corporation
to the  Executive  or his  estate.  For  purposes of this  Agreement,  permanent
disability means the Executive has been unable, for three consecutive months, to
perform the Executive's duties under this Agreement,  as a result of physical or
mental illness or injury.

4.2  Termination by Executive.  This Agreement may be terminated  immediately if
the  Corporation  is no longer  capitalized  with a 30 day written notice to the
Corporation  by the  Executive,  or at any time by the Executive  upon three (3)
months prior written notice to Corporation.

4.3  Termination by Corporation  without Cause or Resignation  with Good Reason.
Executive  will be deemed to have "good  reason"  to resign in the event:  (A) A
reduction in Executive's  responsibilities  or duties.  (B) A material breech by
the Corporation of its obligations, under Section 2 of this agreement occurs (C)
Change in control as defined in Section 4.4 of this agreement. In the event this
Executive's  employment is  voluntarily  terminated by the  Corporation  without
cause,  for any reason  whatsoever or by the Executive's  resignation  with good
reason during the Term, the  Corporation  shall (i) continue to pay Executive an
amount equivalent to his base salary, payable bi-monthly for the duration of the
Term.

4.4  Termination  Following a Change in Control.  In the event this Agreement is
terminated  by the  Corporation  pursuant  to a change in control of  Vitalstate
Inc., the Corporation  shall (i) continue to pay Executive an amount  equivalent
to his base salary, payable bi-monthly for the duration of the Term.

5.    MISCELLANEOUS

5.1  Assignment.  Except as provided in this Section 5.1, the  Executive and the
Corporation  acknowledge  and agree  that the  covenants,  terms and  provisions
contained in this  Agreement and the rights of the parties  hereunder  cannot be
transferred,  sold, assigned,  pledged, or hypothecated;  provided, however that
this  Agreement  shall be binding  upon and shall  ensure to the  benefit of the
Corporation and any successor to or assignee of all or substantially  all of the
business  and property of the  Corporation.  In addition,  the  Corporation  may
assign its  rights  hereunder  to a direct or  indirect  subsidiary,  affiliated
Corporation,  or  division  of  the  Corporation  without  the  consent  of  the
Executive.

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<PAGE>

5.2 Capacity.  The Executive  hereby  represents  and warrants that, in entering
into this  Agreement,  she is not in  violation  of any  contract or  agreement,
whether  written  or oral,  with any  other  person,  moral or  physical,  firm,
partnership, corporation or any other entity to which she is a party or by which
she is bound and will not  violate  or  interfere  with the  rights of any other
person, firm, partnership, corporation or other entity.

5.3 Entire Agreement.  This Agreement  contains the entire agreement between the
parties  and shall not be  modified  except in  writing by the  parties  hereto.
Furthermore,  the parties hereto  specifically  agree that all prior agreements,
whether written or oral, relating to the Services to the Corporation shall be of
no further force or effect from and after the date hereof.

5.4  Severability.  If any phrase,  clause or  provision  of this  Agreement  is
declared  invalid or unenforceable  by a court of competent  jurisdiction,  such
phrase,  clause or provision shall be deemed severable from this Agreement,  but
will not effect any other  provisions of this  Agreement,  which otherwise shall
remain in full  force and  effect.  If any  restriction  or  limitation  in this
Agreement  is deemed to be  unreasonable,  onerous and unduly  restrictive  by a
court of  competent  jurisdiction,  it shall not be stricken in its entirety and
held totally void and  unenforceable,  but shall remain effective to the maximum
extent permissible within reasonable bounds.

5.5 Waiver.  The waiver by the Corporation or the Executive of any breach of any
term or condition of this Agreement shall not be deemed to constitute the waiver
of any other breach of the same or any other term or condition hereof.

5.6  Governing  Law.  The  parties  hereto  agree that this  Agreement  shall be
construed  as to  both  validity  and  performance  and  shall  be  enforced  in
accordance with and governed by the laws of New York applicable therein.

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

                                 VITALSTATE US INC.

                                 By:
                                    ------------------------------------------
                                    Name:  Terry A. Giles
                                    Title: President and Chief Executive Officer

                                    ------------------------------------------
                                    Name: Lisa Dalberth

                                       7EMPLOYMENT AGREEMENT

         THIS AGREEMENT entered into as of the 12th day of August 2004, by and
between MediaBay, Inc., a Florida corporation, with offices at 2 Ridgedale
Avenue, Suite 300, Cedar Knolls, New Jersey 07927 (the "Company"), and Joseph R.
Rosetti, residing at c/o Safer Rosetti, 437 Madison Avenue, 20th Floor, New
York, New York 10022 (the "Executive").

                              W I T N E S S E T H:

         WHEREAS, the Company is engaged in the spoken audio business including
audiobooks, old-time radio shows and downloadable spoken audio products; and

         WHEREAS, the Company desires to employ the Executive and the Executive
is willing to commit himself to serve and to establish a minimum period during
which he will serve the Company on the terms and conditions herein provided.

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

         (1) Recitals. The Whereas clauses recited above are hereby incorporated
by reference as though they were fully set forth herein.

         (2) Employment. The Company shall employ the Executive and the
Executive shall serve the Company, on the terms and conditions set forth herein.

         (3) Term. The employment of the Executive by the Company as provided in
paragraph 2 shall commence on August 12, 2004 and end on the second (2nd)
anniversary of such commencement (the "Term"), subject, however, to the other
termination provisions contained herein.

         (4) Position and Duties. The Executive shall be employed by the Company
as Chairman. His power and authority shall be and remain subject to the
direction and control of the Board of Directors. The Executive shall perform the
duties and responsibilities and have the powers of Chairman, as set forth in the
Company's By-laws. During the Term, the Executive shall devote his time on
matters relating to the operation of Company's and its subsidiaries' business
and affairs.

         (5) Compensation and Related Matters.

             (a) Salary. During the term of this Agreement, the Company shall
pay to the Executive, as compensation for his services, a monthly salary of
$7,500 in bi-monthly installments.

             (b) Expenses. The Executive shall receive prompt reimbursement for
all reasonable travel and business expenses in connection with services
performed hereunder in accordance with normal Company policy, as the same may be
determined from time to time.

<PAGE>

             (c) Stock Options. The Executive will receive stock options (the
"Options") to acquire Four Hundred Thousand (400,000) shares of the Company's
common stock, no par value per share ("Common Stock"), pursuant to and in
accordance with the Company's [2001 Stock Incentive Plan] (the "Plan"). The
Options shall vest as to 25% of the shares covered thereby on the date hereof
and 25% of the shares covered thereby on each of November 12, 2004, February 12,
2005 and May 12, 2005. The Options shall be exercisable at a price per share
equal to the closing sale price of the Common Stock on the date hereof, shall
terminate five years from the date hereof, and shall be granted pursuant to the
terms and conditions as more specifically provided for in the Plan and a
Non-Qualified Stock Option Agreement dated as of the date hereof between the
Company and the Executive in the form of Exhibit A hereto.

      (6) Termination by the Company. The Executive's employment hereunder may
be terminated by the Company without any breach of this Agreement only under the
circumstances described below.

             (a) Death. The Executive's employment hereunder shall terminate
upon his death.

             (b) Disability. If, as a result of the Executive's incapacity due
to physical or mental illness, as determined by a physician mutually chosen by
the Executive and the Company, the Executive shall have been absent from his
duties hereunder for a consecutive period of forty-five (45) days and after
notice of termination is given (which may be given before or after the end of
such 45 day period but which will in no event be effective until, at the
earliest, the day following the forty-fifth day of the period) shall not have
returned to the performance of his duties hereunder, as that concept is
contemplated in this Agreement, within ten (10) days after the notice of
termination is given, the Company may terminate the Executive's employment
hereunder.

             (c) Cause. The Company may terminate the Executive's employment
under this Agreement at any time for cause. For purposes of this Agreement, the
term "cause" shall include one or more of the following: (i) willful misconduct,
(ii) continued failure by the Executive to perform his duties as Chairman, (iii)
conviction of a crime or alcohol or drug abuse, or (iv) the Executive's breach
of this Agreement. The termination shall be evidenced by written notice thereof
to the Executive.

             (d) Without Cause. In addition to any other rights the Company has
to terminate the Executive's employment under this Agreement, the Company may,
at any time, by a vote of not less than a majority of the directors then in
office (excluding the vote of the Executive if he is also a director), terminate
the Executive without cause upon thirty (30) days' prior written notice to the
Executive setting forth the reasons, if any, for the termination. For purposes
of this Agreement, the term "without cause" shall mean termination by the
Company on any grounds other than those set forth in paragraphs 6(a), (b) or (c)
hereof.

      (7) Executive Termination. The Executive may terminate his employment
hereunder for any reason upon thirty (30) days prior written notice to the
Company.

      (8) Non-Competition and Confidentiality Covenant. During the term of this
Agreement and for a period of two (2) years immediately following the
termination of his employment, whether said termination is occasioned by the
Company, the Executive or a mutual agreement of the parties, the Executive shall
not, for himself or on behalf of any other person, persons, firm, partnership,

<PAGE>

corporation or company, engage or participate in any activities which are in
direct or indirect conflict with the interests of the Company or solicit or
attempt to solicit the business or patronage of any person, firm, corporation,
company or partnership, which had previously been a customer of the Company, for
the purpose of selling products and services similar to those provided by the
Company.

      Furthermore, the Executive acknowledges and agrees that: all mailing
lists; customer, member and prospect names; license or arrangement; front-end
and back-end marketing performance; financial statements; operating system,
database and other computer software, specific to the Company; and all
information which is known by the Executive to be subject to a confidentiality
agreement or obligation of confidentiality, even without a confidentiality
agreement between the Company and another person or party, shall be maintained
by the Executive in a confidential manner and the Executive agrees that the
Executive will not use such information to the detriment of the Company or
disclose such information to any third party, except as may be necessary in the
course of performing the Executive's job responsibilities. The Executive further
agrees that these obligations of confidentiality with respect to such
information shall continue after the Executive ceases to be employed by the
Company. Disclosure of the aforementioned information shall not be prohibited if
such disclosure is directly pursuant to a valid and existing order of a court or
other governmental body or agency within the United States; provided, however,
that (i) the Executive shall first have given prompt notice to the Company of
any such possible or prospective order (or proceeding pursuant to which any such
order may result), (ii) the Company shall have been afforded a reasonable
opportunity to review such disclosure and to prevent or limit any such
disclosure, and (iii) the Executive shall, if requested by the Company and at
the Company's cost and expense, use his best efforts to prevent or limit any
such disclosure by means of a protective order or a request for confidential
treatment.

      (9) Indemnification. To the maximum extent permitted under the corporate
laws of the State of Florida, (a) the Executive shall be indemnified and held
harmless by the Company, as provided under such corporate laws for any and all
actions taken or matters undertaken, directly or indirectly, in the performance
of his duties and responsibilities under this Agreement or otherwise on behalf
of the Company, provided the Executive did not act wantonly or recklessly or was
not grossly negligent or engaged in willful misconduct, and (b) without limiting
clause (a), the Company shall indemnify and hold harmless the Executive from and
against (i) any claim, loss, liability, obligation, damage, cost, expense,
action, suit, proceeding or cause of action (collectively, "Claims") arising
from or out of or relating to the Executive's acting as an officer, director,
employee or agent of the Company or any of its affiliates or in any other
capacity, including, without limitation, any fiduciary capacity, in which the
Executive serves at the request of the Company, and (ii) any cost or expense
(including, without limitation, fees and disbursements of counsel)
(collectively, "Expenses") incurred by the Executive in connection with the
defense or investigation thereof. If any Claim is asserted or other matter
arises with respect to which the Executive believes in good faith the Executive
is entitled to indemnification as contemplated hereby, the Company shall, at its
election, to be determined in its sole and absolute discretion, either assume
the defense or investigation of such Claim or matter or pay the Expenses
incurred by the Executive in connection with the defense or investigation of
such Claim or matter, provided that the Executive shall reimburse the Company
for such amounts, plus simple interest thereon at the then current prime rate as
in effect from time to time, compounded annually, if the Executive shall be
found, as finally judicially determined by a court of competent jurisdiction,
not to have been entitled to indemnification hereunder.

<PAGE>

      (10) Binding Agreement. This Agreement and all rights of the Executive
hereunder shall inure to the benefit of and be enforceable by the Executive's
personal or legal representatives, executors, administrators, successors, heirs,
distributees, devisees and legatees. In addition, this Agreement and the
obligations and rights of the Company hereunder shall be binding on any person,
firm or corporation, which is a successor-in-interest to the Company.

      (11) Notice. For the purpose of this Agreement, notices, demands and all
other communications provided for in this Agreement shall be in writing and
shall be deemed to have been duly given when delivered personally, or by private
overnight courier or mail service, postage prepaid or (unless otherwise
specified) mailed by United States registered or certified mail, return receipt
requested, postage prepaid, addressed as follows:

         If to the Executive:      To the address at the head of this Agreement

         If to the Company:        MediaBay, Inc.
                                   2 Ridgedale Avenue - Suite 300
                                   Cedar Knolls, New Jersey 07927
                                   Attention:  Vice Chairman

Or to such other address as the parties may furnish to each other in writing.
Copies of all notices, demands and communications shall be sent to the home
addresses of all members of the Board of Directors of the Company.

      (12) Miscellaneous.

           (a) No provision of this Agreement may be modified, waived or
discharged unless such waiver, modification or discharge is agreed to in writing
signed by the parties hereto, provided, however, that this Agreement may be
modified, waived or discharged by mutual agreement in writing.

           (b) No delay, waiver, omission or forbearance (whether by conduct or
otherwise) by any party hereto at any time to exercise any right, option, duty
or power arising out of breach or default by the other party of any of the
terms, conditions or provisions of this Agreement to be performed by such other
party shall constitute a waiver by such party or a waiver of such party's rights
to enforce any right, option or power as against the other party or as to
subsequent breach or default by such other party, and no explicit waiver shall
constitute a waiver of similar or dissimilar terms, provisions or conditions at
the same time or at any prior or subsequent time.

      (13) Governing Law. This Agreement shall be construed in accordance with
the laws of the State of New York (except to the extent that the Florida
Business Corporation Act applies to Section 8 hereof) and any action brought by
either party shall be commenced in the courts of the State of New York. The
Executive and the Company hereby irrevocably and unconditionally consent to
submit to the exclusive jurisdiction of the courts of the State of New York
located in New York County and the United States of America located in the
Southern District of New York for any and all actions, suits or proceedings
arising out of or resulting from or relating to this Agreement and the
transactions contemplated hereby and the parties agree not to commence any

<PAGE>

action, suit or proceeding relating thereto except in such courts. The parties
hereby irrevocably and unconditionally waive any objection to the laying of
venue of any such action, suit or proceeding arising out of, resulting from or
relating to this Agreement or the transactions contemplated hereby in such
courts and hereby further irrevocably and unconditionally waive and agree not to
plead or claim in any such court that such action, suit or proceeding brought in
any such court has been brought in an inconvenient forum.

      (14) Validity. The invalidity or unenforceability of any provision or
provisions of this Agreement shall not affect the validity or enforceability of
any other provision of this Agreement, which shall remain in full force and
effect.

      (15) Counterparts. This Agreement may be executed in one or more
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument. Facsimile signatures shall
be effective and binding as original signatures.

      (16) Entire Agreement. This Agreement contains the entire understanding of
the Company and the Executive with respect to his employment by the Company.
This Agreement supersedes all prior agreements and understandings whether
written or oral between the Executive and the Company, and there are no
restrictions, agreements, promises, warranties or covenants other than those
stated in this Agreement.

      IN WITNESS WHEREOF, the parties have executed this Agreement on the date
shown below effective as of the date first written above.

Date Signed:  August 12, 2004              MEDIABAY, INC., a Florida corporation

                                           By:      /s/ John F. Levy
                                              ----------------------------------
                                              Name:   John F. Levy
                                              Title:  Vice Chairman and
                                                      Chief Financial Officer

                                           "EXECUTIVE"

Date Signed:  August 12, 2004              By: /s/ Joseph R. Rosetti
                                              ----------------------------------
                                              Joseph R. Rosetti

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