Document:

EXHIBIT 10.7

                               INDEMNITY AGREEMENT

THIS AGREEMENT is made as of the 7th day of June, 2005.

BETWEEN:

      SafeTek International Inc., a corporation incorporated under the State of
      Delaware and having an office at 21 Ahavat Zion St. Tel Aviv, Israel 62153
      (the "Indemnitor");

AND:

      JP Elisha Martinez, member of the Board of Directors of Indemnitor and of
      its Subsidiary, Oriens Life Sciences (Israel) Ltd. (the "Subsidiary"), of
      12 Hadera St. Tel Aviv, Israel (the "Indemnitee").

WHEREAS:

A. The Indemnitee has been requested to accept and hold a position as a director
of the Indemnitor; and

B. In consideration of $1.00 and other good and valuable consideration received,
the Indemnitor has agreed to indemnify the Indemnitee for all liability, losses,
damages, costs, charges, expenses, fines and penalties which have been or may be
sustained by the Indemnitee as a result of his acting as a member of the Board
of Directors of the Indemnitor.

IN WITNESS THEREFORE that in consideration of the premises and subject to the
conditions hereunder and in consideration of the sum of ONE DOLLAR ($1.00) now
paid by the Indemnitee to the Indemnitor and other good and valuable
consideration (the receipt and sufficiency of which is hereby acknowledged by
the Indemnitor), the parties agree as follows:

1. General Indemnity. Subject to section 4 hereof, the Indemnitor agrees to
indemnify and save the Indemnitee harmless from and against:

      (a) any and all costs, charges, expenses, fees, damages or liabilities,
      regardless of when they arose and howsoever arising and whether arising in
      law or in equity or under statute, regulation or governmental ordinance of
      any jurisdiction, common law or otherwise (including legal or other
      professional fees), and whether incurred alone or jointly with others,
      which the Indemnitee may suffer, sustain, incur or be required to pay

<PAGE>

      arising out of, in connection with or incidental to any action, suit,
      demand, proceeding, investigation or claim which may be brought,
      commenced, made, prosecuted or threatened against the Indemnitee (any of
      the same hereinafter being referred to as a "Claim") for or in respect of
      any act, deed, matter or thing done, made, permitted or in respect of any
      omission to do, make or permit any act, deed, matter or thing whatsoever
      required or desirable to do, make or permit, by the Indemnitee arising out
      of, in connection with or incidental to the management, operations,
      activities or affairs of the Indemnitor or the exercise by the Indemnitee
      of his powers or the performance of his duties as a member of the Board of
      Directors of the Indemnitor, whether sustained or incurred by reason of
      his negligence, default, breach of duty, failure to exercise due diligence
      or otherwise in relation to the Indemnitor;

      (b) any and all costs, charges, expenses, fees, damages or liabilities
      which the Indemnitee may suffer, sustain or incur or be required to pay in
      connection with investigating, initiating, defending, preparing for,
      providing evidence in, instructing and receiving the advice of his own or
      other counsel, or any amount paid to satisfy any judgment made, fine
      imposed, damages or costs or any amount paid or liability incurred by the
      Indemnitee to settle any Claim, or any amount of tax assessed against the
      Indemnitee in respect of any indemnity under this Agreement;

      (c) that to the extent not satisfied, paid or reimbursed by the
      Indemnitor, the Indemnitor shall pay or reimburse the Indemnitee for any
      and all costs, charges, expenses, fees or liabilities the Indemnitee
      sustains, incurs or is required to pay in or in relation to the
      management, operations, activities or affairs of the Indemnitor in the
      Indemnitee's capacity as a member of the Board of Directors of the
      Indemnitor, whether or not incurred in connection with any Claim.

2. Specific Indemnity for Statutory Obligations. Without limiting the generality
of the provisions of section 1 hereof and subject to section 4 hereof, the
Indemnitor agrees to indemnify and save the Indemnitee harmless from and against
any and all charges, costs, expenses, penalties, assessments and liabilities
arising by operation of statute and incurred by the Indemnitee in relation to
the management, operations, activities or affairs of the Indemnitor in the
Indemnitee's capacity as a member of the Board of Directors of the Indemnitor,
including but not limited to all statutory obligations to employees, suppliers,
contractors, subcontractors, repairers and the like and any government or any
agency or division of any government, whether federal, provincial, state,
regional or municipal.

3. Exclusion of Liability. Subject to section 4 hereof, the Indemnitee, in his
capacity as a member of the Board of Directors of the Indemnitor, shall not be
liable for:

      (a) any act, default, omission, or neglect of any other consultant,
      employee, director of the Indemnitor;

<PAGE>

      (b) any loss or damages incurred by the Indemnitor owing to any receipt or
      act of any consultant, employee, director of the Indemnitor in which the
      Indemnitee has concurred or joined in for conformity;

      (c) any loss or damages incurred by the Indemnitor through the
      insufficiency or deficiency of title to any property acquired by order of
      the board of directors or the officers of the Indemnitor for or on behalf
      of the Indemnitor;

      (d) the insufficiency or deficiency of any security in or upon which any
      money of the Indemnitor shall be invested or loaned;

      (e) any loss or damage arising from the bankruptcy, insolvency or tortuous
      act of any person with whom any money, security or effect of the
      Indemnitor shall be deposited;

      (f) any loss, conversion, misapplication or misappropriation of or any
      damage resulting from any dealings with any money, security or other asset
      belonging to the Indemnitor;

      (g) any loss or damage occasioned by any error of judgment or oversight on
      the part of the Indemnitee; or

      (h) any other loss, damage or misfortune whatever.

4. Limitation of Indemnity and Exclusion from Liability. The indemnity provided
for in sections 1 and 2 hereof is subject to the Delaware Revised Statutes, and
will be effective unless proved that:

      (a) the Indemitee's failure to act constituted a breach of his fiduciary
      duties as member of the Board of Directors, and

      (b) the Indemitee's breach of those duties involved intentional
      misconduct, fraud or a knowing violation of law.

5. Court Applications. The Indemnitor represents and warrants that it will in a
timely manner take all necessary steps, including without limitation any and all
necessary court applications, to discharge its obligations under this Agreement.

6. Extensions, Modifications. Except as otherwise provided herein, this
Agreement is absolute and unconditional and the obligations of the Indemnitor
shall not be affected, discharged, impaired, mitigated or released by any
extension of time, indulgence or modification which the Indemnitee may extend or
make with any person making any Claim or demand against the Indemnitee in
connection with his duty as a member of the Board of Directors of the
Indemnitor, or in respect of any liability incurred by him as a member of the
Board of Directors of the Indemnitor.

7. Other Rights and Remedies. The indemnification provided by this Agreement

<PAGE>

shall not be deemed to derogate from or exclude any other rights to which the
Indemnitee may be entitled under any provision of any statute or otherwise at
law.

8. Insolvency. The liability of the Indemnitor under this Agreement shall not be
affected, discharged, impaired, mitigated or released by reason of the discharge
or release of the Indemnitee in any bankruptcy, insolvency, receivership or
other proceedings of creditors.

9. Multiple Proceedings. No action or proceeding brought or instituted under
this Agreement and no recovery pursuant thereto shall be a bar or defence to any
further action or proceeding which may be brought under this Agreement.

10. Modification. No modification of this Agreement shall be valid unless the
same shall be in writing and signed by the Indemnitor and the Indemnitee,
provided however that if the Indemnitee is requested to or agrees to act as a
member of the Board of Directors of any subsidiary of the Indemnitor, the
indemnity provided for herein shall automatically be deemed to apply to the
Indemnitee acting as such, mutatis mutandis. It is hereby clarified that on the
date hereof Indemnitee serves as a member of the Board of Directors of the
Subsidiary and that the indemnity provided for herein applies to the Indemnitee
acting in such position, mutatis mutandis.

11. Procedure For Claims.

      (1) In the event the Indemnitee is named as a party in any action, claim,
      suit, proceeding or investigation upon which the Indemnitee intends to
      base a claim for indemnification hereunder, the Indemnitee shall give the
      Indemnitor prompt written notice of such action, claim, suit, proceeding
      or investigation (provided, however, that failure of the Indemnitee to
      provide such notice shall not relieve the Indemnitor of any liability to
      the Indemnitee the Indemnitor may have under this Agreement excepted, to
      the extent that the Indemnitor is materially prejudiced by such failure).

      (2) The Indemnitor shall participate in and, assume the defense of any
      such action, including for certainty any derivative action, claim, suit,
      proceeding or investigation all at the Indemnitor's expense provided,
      however, that counsel retained by the Indemnitor shall be satisfactory to
      the Indemnitee in the exercise of his reasonable judgement.
      Notwithstanding the Indemnitor's assumption of the defense of such action,
      claim, suit, proceeding or investigation, the Indemnitee shall have the
      right to employ separate counsel and to participate in, but not control,
      the defense of such action, claim, suit, proceeding or investigation, and
      the Indemnitor shall bear the reasonable fees, costs and expenses of such
      separate counsel as such fees, costs and expenses are incurred (provided
      that with respect to any single action, claim, suit, proceeding or
      investigation, the Indemnitor shall not be required to bear the fees,
      costs and expenses of more than one such counsel in any single
      jurisdiction) if (a) the use of counsel chosen by the Indemnitor to
      represent the Indemnitee would present such counsel with a conflict of
      interest;

<PAGE>

      (b) the defendants, respondents or other parties in any such action,
      claim, suit, proceeding or investigation include both the Indemnitee on
      the one hand and the Indemnitor on the other hand, and the Indemnitee has
      reasonably concluded that representation of both parties by the same
      counsel would be inappropriate due to actual or potential differing
      interests between them (in which case the Indemnitor shall not have the
      right to direct the defense of such action, claim, suit, proceeding or
      investigation on behalf of the Indemnitee); (c) the Indemnitor shall not
      have employed counsel satisfactory to the Indemnitee in the exercise of
      the Indemnitee's reasonable judgment to represent him, within a reasonable
      time after notice of the institution of such action, proceeding or
      investigation; or (d) the Indemnitor authorizes the Indemnitee to employ
      separate counsel at the Indemnitor's expense.

      (3) The Indemnitee shall cooperate with the Indemnitor in the Indemnitor's
      defense by providing such information and other assistance which the
      Indemnitor may reasonably request in connection with such defense.

      (4) The Indemnitor shall not, without the Indemnitee's prior written
      consent, settle, compromise, consent to the entry of any judgment in or
      otherwise seek to terminate any action, claim, suit or proceeding in
      respect of which indemnification may be sought hereunder (whether or not
      the Indemnitee is a party thereto) unless such settlement, compromise,
      consent or termination includes a release of the Indemnitee from any
      liabilities arising out of such action, claim, suit or proceeding. The
      Indemnitee shall not, without the Indemnitor's prior written consent,
      admit liability, settle, compromise, consent to the entry of any judgment
      in or otherwise seek to terminate any action, claim, suit, investigation
      or proceeding referred to in the preceding paragraph and the Indemnitee
      shall not disclose the existence of this Agreement unless required by law,
      subpoena, court order or upon the advice of counsel.

12. Resignation. Nothing in this Agreement shall prevent the Indemnitee from
resigning [as an officer/from the Board of Directors] of the Indemnitor or from
exercising any rights he may have to terminate any agreement he may have with
the Indemnitor.

13. Termination. The obligations of the Indemnitor shall not terminate or be
released upon the Indemnitee ceasing to act as a member of the Board of
Directors of the Indemnitor at any time or times and such obligations shall
survive the resignation of the Indemnitee. The Indemnitor's obligations may be
terminated or released only by a written instrument executed by the Indemnitee.

14. Tax Gross Up. The amount of any indemnity payable to the Indemnitee will be
computed in accordance with the following formula:

    (B - D)
A = ---------
    (1 - C)

<PAGE>

where:

A = the amount of indemnity payable by the Indemnitor to the Indemnitee pursuant
to this Agreement,

B = the amount of indemnity that would otherwise be payable by the Indemnitor to
the Indemnitee pursuant to this Agreement on the assumption that such amount is
computed without reference to any increased liability of the Indemnitee under
applicable income, payroll, value added or any other tax laws arising in
consequence of such payment,

C = the aggregate of the highest effective rates of all taxes (including all
surtaxes) under such tax laws applicable to the Indemnitee in respect of such
payment, after giving effect to any applicable bilateral tax convention or
treaty, and

D = any such tax required by law to be paid by or for the account of the
Indemnitee on or with respect to the Grossed Up Amount, and which is deducted by
the Indemnitor from that amount and remitted to a lawful taxing authority for
the account of the Indemnitee.

For the purposes of this section, "Grossed Up Amount" means (B) divided by
(1-C), B and C having meanings as defined above.

15. Advances. In any case in which the Indemnitee incurs or becomes liable to
pay any amount in respect of which he is entitled to be indemnified by the
Indemnitor pursuant to the provisions of this Agreement, the Indemnitor shall
advance such amount to the Indemnitee by way of loan forthwith upon written
demand therefor by the Indemnitee to the Indemnitor. Such notice shall be
accompanied by a written undertaking by the Indemnitee to repay the full amount
of any funds so advanced forthwith upon it being determined by the court on
application for such approval, that the Indemnitee is not entitled to
indemnification in respect thereof. In that event any amount so advanced shall
be repaid forthwith following such determination and shall bear interest at 2%
above the prime rate charged by the Indemnitor's bankers to its preferred
commercial customers from time to time during the period from the date of
advance to the date of repayment.

16. Notices. Any notice to be given by one party to the other shall be
sufficient if delivered by hand, deposited in any Post Office in Israel,
registered, postage prepaid, or sent by means of electronic transmission (in
which case any message so transmitted shall be immediately confirmed in writing
and mailed as provided above), addressed, as the case may be:

<PAGE>

(a)   To the Indemnitor:

       SafeTek International, Inc.

       ________________________________

       Facsimile:  ____________________

       Attention: ____________

(b) To the Indemnitee:

                  _______________________

                  _______________________

                  Facsimile: ______________________

or at such other address of which notice is given by the parties pursuant to the
provisions of this section. Such notice shall be deemed to have been received
when delivered, if delivered, and if mailed, on the fifth business day
(exclusive of Saturdays, Sundays and statutory holidays) after the date of
mailing. Any notice sent by means of electronic transmission shall be deemed to
have been given and received on the day it is transmitted, provided that if such
day is not a business day then the notice shall be deemed to have been given and
received on the next business day following. In case of an interruption of the
postal service, all notices or other communications shall be delivered or sent
by means of electronic transmission as provided above, except that it shall not
be necessary to confirm in writing and mail any notice electronically
transmitted.

17. Governing Law. This Agreement shall be governed by and construed in
accordance with the State of Delaware and all disputes arising under this
Agreement shall be referred to and the parties hereto irrevocably attorn to the
jurisdiction of the courts of the State of Delaware.

18. Other Acts. The Indemnitor and the Indemnitee agree that they shall do all
such further acts, deeds or things and execute and deliver all such further
documents, instruments or certificates as may be necessary or advisable for the
purpose of assuring and confirming unto the Indemnitee the rights hereby created
or intended, and of giving effect to and carrying out the intention or
facilitating the performance of the terms of this Agreement.

19. Interpretation. Wherever the singular or masculine are used throughout this
Agreement, the same shall be construed as meaning the plural or the feminine or
body politic or corporate and whenever the plural is used throughout this
Agreement the same shall be construed as meaning the singular, where the context
or the parties hereto so require, and the liabilities and obligations of the
Indemnitor hereunder shall be joint as well as several.

20. Invalid Terms Severable. If any term, clause or provision of this Agreement
shall be held invalid or contrary to law, the validity of any other term, clause
or provision shall not be affected and such invalid term, clause or provision
shall be considered severable.

21. Entire Agreement. This Agreement shall supersede and replace any and all
prior agreements between the parties hereto respecting the matters set forth

<PAGE>

herein, and shall constitute the entire agreement between the parties in respect
of the matters set forth herein. There are no representations, warranties,
collateral agreements, or conditions expect as set forth herein.

22. Binding Effect. All of the agreements, conditions and terms of this
Agreement shall extend to and be binding upon the Indemnitor and their heirs,
executors, administrators and other legal representatives, successors and
assigns and shall enure to the benefit of and may be enforced by the Indemnitee
and his heirs, executors, administrators and other legal representatives,
successors and assigns.

23. Independent Legal Advice. The Indemnitor acknowledges that it has been
advised by the Indemnitee to obtain independent legal advice with respect to
entering into this Agreement, that they have obtained such independent legal
advice or have expressly waived such advice, and that they are entering into
this Agreement with full knowledge of the contents hereof, of their own free
will and with full capacity and authority to do so.

24. Power and Authority of Indemnitor. The Indemnitor represents and warrants to
the Indemnitee that this Agreement when duly and validly executed and delivered
by the Indemnitor will constitute a legal, valid and binding obligation of the
Indemnitor enforceable against the Indemnitor in accordance with the terms
hereof and that the Indemnitor, if a corporation, is duly incorporated and
organized, validly existing and in good standing under the laws of its
jurisdiction of incorporation, has the necessary corporate power, capacity and
authority to enter into this Agreement and perform its obligations hereunder and
that the execution and delivery of this Agreement by the Indemnitor has been
duly and properly authorized by all necessary corporate action and that.

25. Counterparts. This Agreement may be signed in counterparts, in writing or by
electronic facsimile transmission or by other means of electronic communication
capable of producing a printed copy, each of which will be deemed to be an
original and all such counterparts together will constitute one and the same
instrument and notwithstanding the date of execution, will be deemed to be
effective as of the date set forth above.

IN WITNESS WHEREOF the Indemnitor and the Indemnitee have hereunto set their
hands and seals as of the day and year first above written.

By the Indemnitor:

SafeTek International, INC.

Per: /s/ Shay Goldstein
Authorized Signatory

SIGNED, SEALED and DELIVERED by        )
JP Elisha Martinez in the presence of: )

<PAGE>

                                            )
___________________________________         )
Name                                        )
___________________________________         )   /s/ JP Elisha Martinez
                                            )   ----------------------
Address                                     )   JP Elisha Martinez
___________________________________         )
Occupation                                  )
                                            )
                                            )
                                            )
                                            )EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT made this 6th day of June 2005, by and between MediaBay,
Inc., a Florida corporation with offices at 2 Ridgedale Avenue, Cedar Knolls,
New Jersey 07927 (the "Company"), and Jeffrey A. Dittus residing at 600 Old
Gulph Road, Penn Valley, Pennsylvania 19072 (the "Executive"),

                                   WITNESSETH:

         WHEREAS, the Company is engaged in the audio book club, old-time radio
and spoken audio digital download businesses; and

         WHEREAS, the Company desires to employ the Executive; and

         WHEREAS, the Executive is willing to serve the Company on the terms and
conditions herein provided.

         NOW, THEREFORE, in consideration of the promises 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 term of Executive's employment pursuant to this Agreement
shall commence on June 6, 2005 (the "Effective Date") and shall end on June 6,
2008, if not terminated earlier pursuant to the termination provisions contained
herein (the "Term").

         4. Position and Duties. Subject to the terms set forth herein, the
Executive shall be employed by the Company as Chief Executive Officer of
MediaBay, Inc. His power and authority shall be and remain subject to the
direction and control of the Board of Directors and the Chairman of the Company.
The Executive shall have profit and loss responsibility for the Company and its
subsidiaries (including Audio Book Club, Inc., Radio Spirits, Inc. and
MediaBay.com, Inc.) as well as operational and marketing oversight of the
business and affairs of the Company and its subsidiaries, and any other
businesses which the Company or its subsidiaries may acquire.

         5. Time and Attention. During the Term, the Executive shall devote his
best efforts, except during periods of vacation, sick leave, or other duly
authorized leave of absence, and his full occupational time and attention to the
performance of his duties and to the Company's and its subsidiaries' business
and affairs. The Executive shall work at the Company's offices, currently at 2
Ridgedale Avenue, Cedar Knolls, New Jersey; in the event of a relocation of the
Company's offices, the Executive shall not be required, without his consent, to

<PAGE>

relocate his residence. It will not be a violation of this Agreement for the
Executive to serve as an officer or director of a cooperative apartment, as a
non-executive director of any civic or charitable organization or committee, to
perform speaking engagements, or to manage personal passive investments, so long
as such activities (individually or collectively) do not conflict or materially
interfere with the performance of the Executive's duties hereunder.

         6. Compensation and Related Matters.

                  (a) Base Salary. For services rendered pursuant to this
Agreement, the Company shall pay to the Executive an annual base salary of
$280,000 in installments in accordance with the Company's regular payroll
practices, but in no event less frequently than semimonthly, subject to
applicable withholding and other taxes.

                  (b) Bonus. The Executive will be eligible to participate in
the Company's discretionary bonus plan that is currently under development.
Eligibility for a bonus will be based upon a set of financial and non-financial
objectives set by the Chief Executive Officer recommended by the compensation
committee of Board of Directors (the "Compensation Committee") and approval by
the Board. The bonus will be prorated if the Executive's employment hereunder is
terminated other than for Cause (as defined below). Determinations as to whether
the Executive shall receive any bonus, including the determination as to whether
objectives have been met, shall be made at the sole discretion of the
Compensation Committee. Any bonus awarded will be paid no later than the later
of March 15 of the following year and the tenth (10th) business day after the
Company has filed its Form 10-K for such fiscal year.

                  (c) 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. The Executive will be allowed to travel business
class for any international business trips. In conjunction with this provision,
the Executive shall receive reimbursement for expenses related to ISP, broadband
Internet connection and cell phone service for business-related usage.

                  (d) Insurance and Employee Benefits. The Executive shall be
eligible to receive such medical, surgical, hospitalization, disability and life
insurance and retirement benefits as are made available to executive employees
of the Company, subject to the general eligibility and participation provisions
set forth in such plans. The Company reserves the right to adopt, amend or
discontinue any employee benefit, plan, or program in accordance with then
applicable law; provided, however, that if the effect of any such amendment or
discontinuation results is an economic detriment to the Executive as compared to
the benefits in force on the date hereof, the Company shall make cash payments
from time to time in order to provide the Executive with the after-tax
substantial equivalent of the benefits now in force. Any and all cash payments
that may be provided as per the previous sentence shall be made on a monthly
basis and shall in no case exceed the monthly contributions made by Company on
behalf of Executive for any employee benefit, plan, or program that has been
discontinued or amended.

                  (e) Vacation. The Executive shall receive during each full
year of this Agreement four (4) weeks' (twenty (20) working days) paid vacation.
In explanation and not in limitation of the foregoing sentence, the Executive

                                      -2-
<PAGE>

shall be entitled to four weeks paid vacation at times reasonably convenient to
the Executive and the Company during the first twelve months of the term of this
Agreement. The Executive shall be entitled to carry over any unused portion of
such paid vacation to subsequent years of his employment by the Company and to
be paid for unused vacation upon termination of his employment for any reason.

                  (f) Options and Other Stock-Based Awards. The Executive shall
be entitled to receive stock option grants and other stock-based awards as
recommended by the Compensation Committee of the Board of Directors and approved
by the Board of Directors.

         7. Non-Competition and Confidentiality Covenant.

                  (a) (i) During the Term and for a period of one (1) year
immediately following the termination of his employment, whether said
termination is occasioned by the Company, the Executive or a mutual agreement of
the parties for any reason whatsoever, the Executive shall not, for himself or
on behalf of any other person, persons, firm, partnership, corporation or
company, engage, have an interest in, participate in or render any services to
any business (whether as owner, manager, operator, licensor, licensee, lender,
partner, equity holder, joint venturer, employee, consultant or otherwise) in
substantial and direct competition with any business conducted by the Company or
its subsidiaries at the time of termination (including the audio book, old-time
radio and spoken audio digital download businesses and any businesses which are
hereafter acquired by, merged with or transferred to the Company prior to such
termination collectively, the "Business").

                      (ii) During the Term and for a period of two (2) year
immediately following the termination of his employment, whether said
termination is occasioned by the Company, the Executive or a mutual agreement of
the parties for any reason whatsoever, the Executive shall not, for himself or
on behalf of any other person, persons, firm, partnership, corporation or
company, solicit or attempt to solicit the business or patronage of any person,
firm, corporation, company or partnership, which had previously been an employee
of the Company or its subsidiaries, for the purpose of engaging in the Business.
Notwithstanding the foregoing, nothing herein shall prevent the Executive from
owning stock in a publicly traded corporation whose activities compete with
those of the Company and/or its subsidiaries, provided that such stock holdings
are not greater than five percent (5%) of such corporation.

                      (iii) the Executive shall not, during the Term and for a
period of two (2) years thereafter, directly or indirectly, take any action
which constitutes an interference with or a disruption of any of the Company's
business activities including, the solicitations of the Company's customers or
vendors, or persons listed on the personnel lists of the Company.

                      (iv) For purposes of clarification, but not of limitation,
the Executive hereby acknowledges and agrees that the provisions of this Section
7(a) shall serve as a prohibition, against him, during the period referred to
therein, directly or indirectly, hiring, offering to hire, enticing, soliciting
or in any other manner persuading or attempting to persuade any officer,
employee, agent, lessor, lessee, licensor, licensee or customer of the Company

                                      -3-
<PAGE>

(but only those existing during the time of the Executive's employment by the
Company, or at the termination of his employment), to discontinue or alter his,
her or its relationship with the Company. The preceding sentence shall not apply
to any employees of Company who were employees of Terra Nova Marketing Solutions
as of the date of this Agreement.

                      (v) The Company and the Executive acknowledge that the
services to be performed by the Executive under this Agreement are unique and
extraordinary and that, as a result of such employment, the Executive shall be
in possession of confidential information relating to the business practices of
the Company. The term "confidential information" shall mean any and all
information (oral or written) relating to the Company or to any of its
affiliates, or to any of their respective activities, other than such
information which (A) is or comes into the public domain (such information not
being deemed to be in the public domain merely because it is embraced by more
general information which is in the public domain) other than as the result of
breach of the provisions of this Section 7, (B) was known to the Executive
without obligation of confidentiality prior to its disclosure by the Company, as
demonstrated by competent documentary evidence in Executive's possession, (C)
which properly becomes available to the Executive, under conditions which do not
restrict further disclosure, from a third-party source who shall not have
obtained such information either directly or indirectly from the Company or its
affiliates, or (D) the Executive is required to disclose under any applicable
laws, regulations or directives of any government agency, tribunal or authority
having jurisdiction in the matter or under subpoena or other process of law. The
Executive shall not, during the Term and thereafter, except as may be required
in the course of the performance of his duties hereunder, directly or
indirectly, use, communicate, disclose or disseminate to any person, firm or
corporation any confidential information regarding the clients, customers or
business practices of the Company acquired by the Executive, without the prior
written consent of the Company; and the Executive also understands that
Executive shall be prohibited from misappropriating any trade secret at any time
during or after the Term.

                     (vi) Upon the termination of the Executive's employment for
any reason whatsoever, all documents, records, notebooks, equipment, price
lists, specifications, programs, customer and prospective customer lists and
other materials which refer or relate to any aspect of the business of the
Company which are in the possession of the Executive, including all copies
thereof, shall be promptly returned to the Company.

                  (b) During the Term and thereafter, the Executive shall not
directly or indirectly disparage the commercial, business or financial
representation of the Company or any of its officers, directors, employees or
affiliates.

                  (c) (i) The parties hereto hereby acknowledge and agree that
(A) the Company would be irreparably injured in the event of a breach by the
Executive of any of his obligations under this Section 7, (B) monetary damages
would not be an adequate remedy for any such breach, and (C) the Company shall
be entitled to injunctive relief, in addition to any other remedy which it may
have, in the event of any such breach.

                     (ii) Each of the rights and remedies enumerated in Section
7 shall be independent of the other, and shall be severally enforceable, and all

                                      -4-
<PAGE>

of such rights and remedies shall be in addition to, and not in lieu of, any
other rights and remedies available to the Company under law or in equity.

                     (iii) If any provision contained in this Section 7 is found
to be unenforceable by reason of the extent, duration or scope thereof, or
otherwise, then the court making such determination shall have the right to
reduce such extent, duration, scope or other provision and in its reduced form
any such restriction shall thereafter be enforceable as contemplated hereby.

                     (iv) It is the intent of the parties hereto that the
covenants contained in this Section 7 shall be enforced to the fullest extent
permissible under the laws and public policies of each jurisdiction in which
enforcement is sought (the Executive hereby acknowledging that said restrictions
are reasonably necessary for the protection of the Company). Accordingly, it is
hereby agreed that if any of the provisions of this Section 7 shall be
adjudicated to be invalid or unenforceable for any reason whatsoever, said
provision shall be (only with respect to the operation thereof in the particular
jurisdiction in which such adjudication is made) construed by limiting and
reducing it so as to be enforceable to the extent permissible, without
invalidating the remaining provisions of this Agreement or affecting the
validity or enforceability of said provision in any other jurisdiction.

                     (v) The Executive's obligations under this Section 7 shall
survive the termination of this Agreement for any reason whatsoever.

         8. Executive's Representations and Warranties.

                  (a) No Breach of Contract. Executive represents and warrants
that the execution and delivery of this Agreement by the Executive and the
performance of the Executive's obligations hereunder does not and will not
conflict with or breach any agreement, order or decree to which the Executive is
a party or by which the Executive is bound.

                  (b) No Conflict of Interest. Executive warrants that Executive
is not, to the best of Executive's knowledge and belief, involved in any
situation that might create, or appear to create, a conflict of interest with
Executive's loyalty to or duties for the Company.

                  (c) Notification of Materials or Documents from Other
Employees. Executive further warrants that Executive has not brought and will
not bring to the Company or use in the performance of Executive's
responsibilities at the Company any materials or documents of a former employer
that are not generally available to the public, unless Executive has obtained
express written authorization from the former employee for their possession and
use.

                  (d) Notification of Other Post-Employment Obligations.
Executive also understands that, as part of Executive's employment with the
Company, Executive is not to breach any obligation of confidentiality that
Executive has to former employers, and Executive agrees to honor all such
obligations to former employers during Executive's employment with the Company.
Executive warrants that Executive is subject to no employment agreement or
restrictive covenant preventing full performance of Executive's duties under
this Agreement.

                                      -5-
<PAGE>

                  (e) Indemnification for Breach; Survival. In addition to other
remedies which the Company might have for breach of this Agreement, Executive
agrees to indemnify and hold the Company harmless from any breach of the
provisions of this Section 8. The terms of this Section 8 shall survive any
termination of this Agreement.

         9. Termination by the Company.

                  (a) General. The Company shall have the right to terminate the
Executive's employment pursuant to this Agreement with or without Cause at any
time during the term of this Agreement by giving written notice to the
Executive. The termination shall become effective on the date specified in the
notice. Upon termination by the Company without Cause (as defined below), the
Company shall immediately pay the Executive any reimbursable expenses owed to
him, unused accrued vacation and pro-rata bonus and shall make available to the
Executive continuation of his medical, surgical and hospitalization benefits as
required by COBRA.

                  (b) Cause. In the event that the Executive is terminated for
Cause, the Company shall pay the Executive any unpaid base salary due Executive
through the date of termination and Executive shall not be entitled to any
additional salary, bonus payments, severance, or other compensation.

                  (c) Without Cause. In the event that the Executive is
terminated without Cause, in addition to paying the Executive through the date
of termination and, if applicable, complying with subparagraph (a) above, the
Company shall pay to the Executive severance compensation equal to twelve (12)
months of the Employee's base salary as of the date of termination payable as
set forth in Section 6(a) above, a pro rata portion of any bonus earned through
the date of termination in accordance with Section 6(b) above, and any options
to purchase common stock of the Company then held by the Executive shall, as of
the date of such termination, be deemed to be fully vested for all purposes.

                  (d) Definition of Cause. For purposes of this Section 9,
"Cause" shall mean that the Board of Directors (by vote of a majority of the
full Board of Directors) has reasonably determined that the Executive has
engaged in any of the following: (i) any material breach of Section 7 of this
Agreement; (ii) any other act or omission which constitutes a material breach
of, or material failure or refusal to perform duties under this Agreement or any
covenant or condition thereof, except in this case of Section 7, after notice of
such and failure to cure the same within fifteen (15) business days; (iii) any
act constituting dishonesty, fraud, immoral or disreputable conduct or other
misconduct which is materially harmful to the Company or its reputation; (iv)
any conviction of a felony under applicable law; (v) refusal to abide by or
implement a lawful directive of the Board of Directors after notice of such and
failure to cure the same within fifteen (15) business days; or (vi) gross
negligence or gross misconduct of the Executive in the performance of his duties
hereunder.

                  (e) Mitigation. It shall not be a condition of Executive's
right to obtain any payment or continuation of compensation and benefits under
this Section 9 or under Section 10(b) that the Executive mitigate any damages.

                                      -6-
<PAGE>

The Company expressly acknowledges that the Executive shall not be required to
mitigate any damages, nor shall the Company at any time raise or assert any
defense based upon the Executive's purported failure to mitigate damages.

         10. Termination by the Executive.

                  (a) General. The Executive may terminate this Agreement at any
time by giving at least thirty (30) days' prior written notice to the Company.
Any such termination shall become effective on the date specified in such
notice. Notwithstanding the foregoing, at the option of the Company, the
termination of Executive's employment may become effective on any date on or
after the date of the notice upon notice to the Executive by the Company and
payment by the Company of the Executive's base salary through the date of such
notice; such termination shall be deemed a voluntary termination by the
Executive and not termination by the Company. Upon termination, the Company
shall promptly pay the Executive any reimbursable expenses owed to him and make
available to the Executive continuation of his medical, surgical and
hospitalization benefits as required by COBRA.

                  (b) Good Reason. The Executive may terminate his employment
for Good Reason. For purposes of this Agreement, "Good Reason" shall mean: (a)
any material failure by the Company to pay the compensation and benefits
provided for in this Agreement or any other material breach by the Company of
any provision of this Agreement, which breach or failure shall continue uncured
for ten (10) days following notice thereof having been given to the Company; (b)
the sale or discontinuation of substantially all of the business of the Company
under the Executive's management; or (c) a Change in Control of the Company (as
hereinafter defined). If the Executive terminates his employment for Good Reason
within six (6) months following the occurrence of an event giving rise to "Good
Reason", then the Executive shall receive the compensation and benefits set
forth in Section 9(c) applicable to termination of the Executive's employment
without Cause.

                  (c) Change of Control. For purposes of this Agreement, a
"Change of Control" shall be deemed to occur, unless previously consented to in
writing by the Executive, upon (i) the actual acquisition of fifty percent (50%)
or more of the voting securities of the Company by any company or entity or
affiliated group of companies or entities (other than pursuant to a bona fide
underwriting agreement relating to a public distribution of securities of the
Company) not affiliated with the Executive or Satellite Asset Management and/or
any of its affiliates (ii) the completion of a proxy content against the
management for the election of a majority of the Board of Directors of the
Company if the group conducting the proxy contest owns, has or gains the power
to vote at least fifty percent (50%) of the voting securities of the Company, or
(iii) a merger or consolidation in which the Company is not the surviving entity
or a sale of all or substantially all of the assets of the Company.

         11. Termination by Death or Disability of the Executive.

                  (a) Death. The Executive's employment hereunder shall
terminate upon his death. In the event of the Executive's death during the term
of this Agreement, all obligations of the parties hereunder shall terminate
immediately, and the Company shall pay to the Executive's legal representatives

                                      -7-
<PAGE>

the Base Salary (and any earned bonuses) due the Executive through the day on
which Executive's death shall have occurred.

                  (b) Disability. Subject to applicable state and federal law,
the Company shall at all times have the right, upon written notice to the
Executive, to terminate this Agreement based on the Executive's Disability (as
defined below). Upon any termination pursuant to this Section, the Company shall
pay to the Executive any unpaid Base Salary through the effective date of
termination specified in such notice. The Company shall have no further
liability hereunder (other than for reimbursement for reasonable business
expenses incurred prior to the date of termination, subject, however, to the
provisions hereof). Termination by the Company of the Executive's employment
based on "Disability" shall mean termination because the Executive is unable to
perform the essential functions of Executive's position with or without
accommodation due to a disability (as such term is defined in the Americans with
Disabilities Act) for six (6) consecutive months. This definition shall be
interpreted and applied consistent with the Americans with Disabilities Act, the
Family and Medical Leave Act and other applicable law.

         12. Termination by Mutual Consent. If at any time during the term of
this Agreement the parties by mutual consent decide to terminate this Agreement,
they shall do so by separate agreement setting forth the terms and conditions of
such agreement.

         13. Indemnification. The Company shall indemnify and hold harmless the
Executive to the fullest extent permitted by the Florida Business Corporation
Act, the federal securities laws, the Sarbanes-Oxley Act of 2002 and the
Company's Articles of Incorporation and By-laws, each as amended from time to
time, for all amounts (including without limitation, judgments, fines,
settlement payments, expenses and attorney's fees) incurred or paid by the
Executive in connection with any action, suit, investigation or proceeding
arising out of or relating to the performance by the Executive of services for,
or the acting by the Executive as a director, officer or employee of the
Company, or any other person or enterprise at the Company's request. 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 have the right to assume the defense or
investigation of such Claim or matter. The Executive shall reimburse the Company
for any amounts advanced to the Executive, 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.
To the fullest extent permitted by the Florida Business Corporation Act, the
federal securities laws, the Sarbanes-Oxley Act of 2002 and the Company's
Articles of Incorporation and By-laws, each as amended from time to time, the
Company shall advance and pay the expenses (including attorneys' fees and
disbursements) incurred by the Executive in defending any proceeding in advance
of its final disposition. If a claim by the Executive for indemnification or
payment of expenses under this Section 13 is not paid in full after a written
claim therefor has been received by the Company, the Executive may file suit to
recover the unpaid amount of such claim and, if successful in whole or in part,
shall be entitled to be paid the expense of prosecuting such claim, including
reasonable attorneys' fees; in any such action, the Company shall have the

                                      -8-
<PAGE>

burden of proving that the Executive is not entitled to the requested
indemnification or payment of expenses under applicable law. This Section 13
shall survive the termination of this Agreement.

         14. Governing Law. This Agreement shall be construed in accordance with
the laws of the State of New Jersey (except that Section 13 shall be governed by
and construed in accordance with the Florida Corporation Business Act) and any
action brought by either party shall be commenced in the state or federal courts
of the State of New Jersey. The Executive and the Company hereby irrevocably and
unconditionally consent to submit to the exclusive jurisdiction of the state or
federal courts of the State of New Jersey 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
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.

         15. Binding Agreement. This Agreement and all rights and obligations
hereunder shall inure to the benefit of and be enforceable by the parties and
their personal or legal representatives, executors, administrators, successors,
heirs, distributes, devisees and legatees and assigns, including, without
limitation any successor to the Company whether by merger, consolidation, sale
of stock or otherwise. Neither this Agreement nor any right or obligation
hereunder may be sold, transferred, assigned, or pledged by the Company (except
to an affiliate or successor) or by Executive without the prior written consent
of the other.

         16. Notices. 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 pre-paid, addresses as follows:

         If to the Executive:  To his home address as listed in Company records
                               at the time notice is given;

         If to the Company:    To its corporate headquarters at the time notice
                               of given. "Attention: Board of Directors," with a
                               copy in like manner to Adam G. Safir, Esq., 437
                               Madison Ave Fl 20, New York, New York 10022-7045;

or to such other address as the parties may furnish to each other in writing.
Service of process in any action, proceeding or counterclaim arising hereunder
or with respect to the subject matter hereof may be made in the manner herein
set forth for notices, each party hereby waiving the requirement for personal
service or service by any other means.

         17. Waiver and Modification.

                                      -9-
<PAGE>

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

                  (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 of a waiver of such party's
rights to enforce any right, option or power as against the other party or as to
a 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.

         18. Severability. 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; and, in the event that any one or more
of the words, phrases, sentences, clauses, provisions, sections or articles
contained in this Agreement shall be declared invalid, this Agreement shall be
construed as if such invalid word or words, phrase or phrases, sentence or
sentences, clause or clauses, provision or provisions, section or sections or
article or articles had not bee inserted and the remainder of this Agreement
shall remain in full force and effect.

         19. 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. A photocopy or electronic
facsimile of this Agreement or of any signature hereon shall be deemed and
original for all purposes.

         20. Entire Agreement. This Agreement contains the entire understanding
of the Company and the Executive with respect to the subject matter hereof. This
Agreement supersedes all prior agreements and understandings, whether written or
oral, between the Executive and the Company with respect to such subject matter,
including the employment agreement dated as of January 28, 2004 by and between
the Company and the Executive, other than any option agreement between the
Company and the Executive relating to the grant of stock options by the Company
to the Executive, 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 as of the
date first written above.

                                       "COMPANY"

                                       MEDIABAY, INC., a Florida Corporation

                                       By: /s/ Joseph Rosetti
                                           ----------------------------------
                                           Printed Name:  Joseph Rosetti
                                           Title:  Chairman

                                       "EXECUTIVE"

                                           /s/ Jeffrey A. Dittus
                                           ----------------------------------
                                           Jeffrey A. Dittus

                                      -10-

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00086-of-00352.parquet"}]]