Document:

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                                                                   EXHIBIT 10.31

                          LOUDEYE TECHNOLOGIES, INC.

                        2000 EMPLOYEE STOCK OPTION PLAN

                           as amended March 5, 2001

     1.  Purposes of the Plan.  The purposes of this 2000 Employee Stock Option
Plan are to attract and retain the best available personnel for positions of
substantial responsibility, to provide additional incentive to the Employees and
Consultants of the Company and to promote the success of the Company's business.
Options granted hereunder shall be Nonstatutory Stock Options.

     2.  Definitions.  As used herein, the following definitions shall apply:

          (a) "Administrator" shall mean the Board or any of its Committees
appointed pursuant to Section 4 of the Plan.

          (b) "Affiliate" means an entity which, together with the Company, is
under common control of a third person or entity.

          (c) "Applicable Laws" means the legal requirements relating to the
administration of stock option plans under applicable U.S. state corporate laws,
U.S. federal and applicable state securities laws, the Code, any Stock Exchange
rules and regulations and the applicable laws of any other country or
jurisdiction where Options are granted under the Plan, as such laws, rules,
regulations and requirements shall be in place from time to time.

          (d) "Board" shall mean the Board of Directors of the Company.

          (e) "Change of Control" means a sale of all or substantially all of
the Company's assets, or any merger or consolidation of the Company with or into
another corporation other than a merger or consolidation in which the holders of
more than 50% of the shares of capital stock of the Company outstanding
immediately prior to such transaction continue to hold (either by the voting
securities remaining outstanding or by their being converted into voting
securities of the surviving entity) more than 50% of the total voting power
represented by the voting securities of the Company, or such surviving entity,
outstanding immediately after such transaction.

          (f) "Code" shall mean the Internal Revenue Code of 1986, as amended.

          (g) "Committee" shall mean the Committee appointed by the Board of
Directors in accordance with paragraph (a) of Section 4 of the Plan, if one is
appointed.

          (h) "Common Stock" shall mean the Common Stock of the Company.

          (i) "Company" shall mean Loudeye Technologies, Inc., a Delaware
corporation.
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          (j) "Consultant" shall mean any person who is engaged by the Company
or any Parent, Subsidiary or Affiliate to render consulting services and is
compensated for such consulting services, excluding any Officers, Named
Executives and Directors.

          (k) "Continuous Service Status" means the absence of any interruption
or termination of service as an Employee or Consultant to the Company or a
Parent, Subsidiary or Affiliate.  Continuous Service Status shall not be
considered interrupted in the case of:  (i) sick leave; (ii) military leave;
(iii) any other leave of absence approved by the Administrator, provided that
such leave is for a period of not more than 90 days, unless reemployment upon
the expiration of such leave is guaranteed by contract or statute, or unless
provided otherwise pursuant to Company policy adopted from time to time; or (iv)
in the case of transfers between locations of the Company or between the
Company, its Parents, Subsidiaries or Affiliates or their respective successors.
A change in status from an Employee to a Consultant or from a Consultant to an
Employee will not constitute an interruption of Continuous Service Status.

          (l) "Corporate Transaction" means a sale of all or substantially all
of the Company's assets, or a merger, consolidation or other capital
reorganization of the Company with or into another corporation.

          (m) "Director" shall mean a member of the Board.

          (n) "Employee" shall mean any person who is employed by the Company or
any Parent, Subsidiary or Affiliate of the Company, excluding any Officer, Named
Executive and Director, except that an Officer shall be considered an Employee,
and therefore eligible to receive awards under the Plan, if and only if (i) the
award is made as an essential inducement to the individual's entering into an
employment contract with the Company, or (ii) the award made to the individual
is for a number of Shares that does not exceed the lesser of 1% (one percent) of
the Shares outstanding, 1% (one percent) of the voting power outstanding, or
25,000 Shares; provided that the total number of Shares issued subject to all
awards made pursuant to this clause (ii) shall not exceed in the aggregate the
limits set forth in clause (ii).

          (o) "Exchange Act" shall mean the Securities Exchange Act of 1934, as
amended.

          (p) "Fair Market Value" shall mean, as of any date, the value of
Common Stock determined as follows:

               (i)  If the Common Stock is listed on any established stock
exchange or a national market system including without limitation the National
Market of the National Association of Securities Dealers, Inc. Automated
Quotation ("Nasdaq") System, its Fair Market Value shall be the closing sales
price for such stock as quoted on such system on the date of determination (if
for a given day no sales were reported, the closing bid on that day shall be
used), as such price is reported in The Wall Street Journal or such other source
as the Administrator deems reliable;

               (ii)  If the Common Stock is quoted on the Nasdaq System (but not
on the National Market thereof) or regularly quoted by a recognized securities
dealer but selling
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prices are not reported, its Fair Market Value shall be the mean between the bid
and asked prices for the Common Stock or;

               (iii)  In the absence of an established market for the Common
Stock, the Fair Market Value thereof shall be determined in good faith by the
Administrator.

          (q)  "Named Executive" shall mean any individual who, on the last day
of the Company's fiscal year, is the chief executive officer of the Company (or
is acting in such capacity) or among the four highest compensated officers of
the Company (other than the chief executive officer). Such officer status shall
be determined pursuant to the executive compensation disclosure rules under the
Exchange Act.

          (r)  "Nonstatutory Stock Option" shall mean an Option not intended to
qualify as an Incentive Stock Option, as designated in the applicable Option
Agreement. "Incentive Stock Option" shall mean an Option intended to qualify as
an incentive stock option within the meaning of Section 422 of the Code, as
designated in the applicable Option Agreement.

          (s)  "Officer" shall mean a person who is appointed or elected by the
Board of Directors as an officer of the Company and is subject to Section 16 of
the Securities Exchange Act of 1934, as amended.

          (t)  "Option" shall mean a stock option granted pursuant to the Plan.

          (u)  "Option Agreement" means a written document, the form(s) of which
shall be approved from time to time by the Administrator, reflecting the terms
of an Option granted under the Plan and includes any documents attached to or
incorporated into such Option Agreement, including, but not limited to, a notice
of stock option grant and a form of exercise notice.

          (v)  "Optioned Stock" shall mean the Common Stock subject to an
Option.

          (w)  "Option Exchange Program" means a program approved by the
Administrator whereby outstanding Options are exchanged for Options with a lower
exercise price or are amended to decrease the exercise price as a result of a
decline in the Fair Market Value of the Common Stock.

          (x)  "Optionee" shall mean an Employee or Consultant who receives an
Option.

          (y)  "Parent" shall mean a "parent corporation," whether now or
hereafter existing, as defined in Section 424(e) of the Code.

          (z)  "Plan" shall mean this 2000 Employee Stock Option Plan.

          (aa)  "Rule 16b-3" shall mean Rule 16b-3 promulgated under the
Exchange Act as the same may be amended from time to time, or any successor
provision.
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          (bb)  "Share" shall mean a share of the Common Stock, as adjusted in
accordance with Section 12 of the Plan.

          (cc)  "Subsidiary" shall mean a "subsidiary corporation," whether now
or hereafter existing, as defined in Section 424(f) of the Code.

     3.  Stock Subject to the Plan.  Subject to the provisions of Section 13 of
the Plan, the maximum aggregate number of shares which may be sold under the
Plan is 2,500,000 shares of Common Stock.  The Shares may be authorized, but
unissued, or reacquired Common Stock.

     If an award should expire or become unexercisable for any reason without
having been exercised in full, or is surrendered pursuant to an Option Exchange
Program, the unpurchased Shares that were subject thereto shall, unless the Plan
shall have been terminated, become available for future grant under the Plan.
In addition, any Shares of Common Stock which are retained by the Company upon
exercise of an Option in order to satisfy any withholding taxes due with respect
to such exercise or purchase shall be treated as not issued and shall continue
to be available under the Plan.  Shares issued under the Plan and later
repurchased by the Company pursuant to any repurchase right which the Company
may have shall not be available for future grant under the Plan.

     4.  Administration of the Plan.

          (a)  Composition of Administrator.  The Plan shall be administered by
(A) the Board or (B) a Committee designated by the Board, which Committee shall
be constituted in such a manner as to satisfy the Applicable Laws.  If a
Committee has been appointed pursuant to this Section 4(a), such Committee shall
continue to serve in its designated capacity until otherwise directed by the
Board.  From time to time the Board may increase the size of any Committee and
appoint additional members thereof, remove members (with or without cause) and
appoint new members in substitution therefor, fill vacancies (however caused)
and remove all members of a Committee and thereafter directly administer the
Plan, all to the extent permitted by the Applicable Laws.

          (b)  Powers of the Administrator.  Subject to the provisions of the
Plan, and in the case of a Committee, the specific duties delegated by, or
limitations of authority imposed by, the Board to or on such Committee, the
Administrator shall have the authority, in its discretion:

               (i)  to grant Options under the Plan;

               (ii)  to determine, upon review of relevant information and in
accordance with Section 2(p) of the Plan, the Fair Market Value of the Common
Stock;

               (iii)  to determine the exercise price per share of Options to be
granted, which exercise price shall be determined in accordance with Section
8(a) of the Plan;

               (iv)  to determine the Employees or Consultants to whom, and the
time or times at which, Options shall be granted and the number of shares to be
represented by each Option;
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               (v)  to interpret the Plan;

               (vi)  to approve forms of agreement for use under the Plan;

               (vii)  to determine the terms and provisions of each Option
granted (which need not be identical) and, with the consent of the holder
thereof, modify or amend each Option;

               (viii)  to accelerate or defer (with the consent of the Optionee)
the exercise date of any Option;

               (ix)  to authorize any person to execute on behalf of the Company
any instrument required to effectuate the grant of an Option previously granted
by the Administrator;

               (x)  to implement an Option Exchange Program on such terms and
conditions as the Administrator in its discretion deems appropriate, provided
that no amendment or adjustment to an Option that would materially and adversely
affect the rights of any Optionee shall be made without the prior written
consent of the Optionee;

               (xi)  to adjust the vesting of an Option held by an Employee or
Consultant as a result of a change in the terms or conditions under which such
person is providing services to the Company;

               (xii)  to determine whether and under what circumstances an
Option may be settled in cash under Section 9(f) instead of Common Stock;

               (xiii)  in order to fulfil the purposes of the Plan and without
amending the Plan, to modify grants of Options to Employees or Consultants who
are foreign nationals or employed outside the United States in order to
recognize differences in local law, tax policies or customs; and

               (xiv)  to make all other determinations deemed necessary or
advisable for the administration of the Plan.

          (c)  Effect of Administrator's Decision.  All decisions,
determinations and interpretations of the Administrator shall be final and
binding on all Optionees and any other holders of any Options granted under the
Plan.

     5.  Eligibility.

          (a)  Recipients of Grants.  Options may be granted only to Employees
and Consultants. An Employee or Consultant who has been granted an Option may,
if he is otherwise eligible, be granted an additional Option or Options.

          (b)  Type of Option.  Each Option shall be designated in the Option
Agreement as a Nonstatutory Stock Option.

          (c)  At-Will Relationship.  The Plan shall not confer upon any
Optionee any right with respect to continuation of employment or consulting
relationship with the Company,
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nor shall it interfere in any way with his right or the Company's right to
terminate his or her employment or consulting relationship at any time, with or
without cause.

     6.  Term of Plan.  The Plan shall become effective upon its adoption by the
Board of Directors.  It shall continue in effect for a term of ten (10) years
unless sooner terminated under Section 14 of the Plan.

     7.  Term of Option. The term of each Option shall be ten (10) years from
the date of grant thereof or such shorter term as may be provided in the Option
Agreement.

     8.  Exercise Price and Consideration.

          (a)  The per Share exercise price for the Shares to be issued pursuant
to exercise of an Option shall be such price as is determined by the
Administrator, but shall be no less than 85% of the Fair Market Value per Share
on the date of grant.

          (b)  The consideration to be paid for the Shares to be issued upon
exercise of an Option, including the method of payment, shall be determined by
the Administrator and may consist entirely of (1) cash, (2) check, (3)
promissory note, (4) other Shares of Common Stock which (i) either have been
owned by the Optionee for more than six (6) months on the date of surrender or
were not acquired, directly or indirectly, from the Company, and (ii) have a
fair market value on the date of surrender equal to the aggregate exercise price
of the Shares as to which said Option shall be exercised, (5) delivery of a
properly executed exercise notice together with irrevocable instructions to a
broker to deliver promptly to the Company the amount of sale or loan proceeds
required to pay the exercise price, (6) any combination of such methods of
payment, or (7) such other consideration and method of payment for the issuance
of Shares to the extent permitted under the Applicable Laws.  In making its
determination as to the type of consideration to accept, the Administrator shall
consider if acceptance of such consideration may be reasonably expected to
benefit the Company, and the Administrator may refuse to accept a particular
form of consideration at the time of any Option exercise if, in its sole
discretion, acceptance of such form of consideration is not in the best
interests of the Company at such time.

     9.  Exercise of Option.

          (a)  Procedure for Exercise; Rights as a Stockholder.  Any Option
granted hereunder shall be exercisable at such times and under such conditions
as determined by the Administrator, consistent with the terms of the Plan and
reflected in the Option Agreement, including vesting requirements and/or
performance criteria with respect to the Company and/or the Optionee.

          An Option may not be exercised for a fraction of a Share.

          An Option shall be deemed to be exercised when written notice of such
exercise has been given to the Company in accordance with the terms of the
Option by the person entitled to exercise the Option and full payment for the
Shares with respect to which the Option is exercised has been received by the
Company.  Full payment may, as authorized by the Administrator, consist of any
consideration and method of payment allowable under Section 8(b) of the Plan.
Until the issuance (as evidenced by the appropriate entry on the books of the
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Company or of a duly authorized transfer agent of the Company) of the stock
certificate evidencing such Shares, no right to vote or receive dividends or any
other rights as a stockholder shall exist with respect to the Optioned Stock,
notwithstanding the exercise of the Option. The Company shall issue (or cause to
be issued) such stock certificate promptly upon exercise of the Option. No
adjustment will be made for a dividend or other right for which the record date
is prior to the date the stock certificate is issued, except as provided in
Section 12 of the Plan.

          Exercise of an Option in any manner shall result in a decrease in the
number of Shares which thereafter may be available, both for purposes of the
Plan and for sale under the Option, by the number of Shares as to which the
Option is exercised.

          (b)  Termination of Employment or Consulting Relationship.  In the
event of termination of an Optionee's Continuous Service Status with the
Company, such Optionee may, but only within three (3) months (or such other
period of time, not less than 30 days, as is determined by the Administrator)
after the date of such termination (but in no event later than the date of
expiration of the term of such Option as set forth in the Option Agreement),
exercise his Option to the extent that he was entitled to exercise it at the
date of such termination.  To the extent that the Optionee was not entitled to
exercise the Option at the date of such termination, or if the Optionee does not
exercise the Option to the extent so entitled within the time specified above,
the Option shall terminate and the Optioned Stock underlying the unexercised
portion of the Option shall revert to the Plan.  No termination shall be deemed
to occur and this Section 9(b) shall not apply if (i) the Optionee is a
Consultant who becomes an Employee, or (ii) the Optionee is an Employee who
becomes a Consultant.

          (c)  Disability of Optionee.  Notwithstanding the provisions of
Section 9(b) above, in the event of termination of an Optionee's Continuous
Service Status as a result of Optionee's disability (including a disability
within the meaning of Section 22(e)(3) of the Code), Optionee may, but only
within twelve (12) months (or such other period of time as is determined by the
Administrator) from the date of such termination (but in no event later than the
date of expiration of the term of such Option as set forth in the Option
Agreement), exercise the Option to the extent otherwise entitled to exercise it
at the date of such termination. To the extent that Optionee was not entitled to
exercise the Option at the date of termination, or if Optionee does not exercise
such Option (to the extent so entitled) within the time specified above, the
Option shall terminate, and the Optioned Stock underlying the unexercised
portion of the Option shall revert to the Plan.

          (d)  Death of Optionee.  Notwithstanding the provisions of Section
9(b) above, in the event of the death of an Optionee during the period of
Continuous Service Status since the date of grant of the Option, or within 30
days following termination of the Optionee's Continuous Service Status, the
Option may be exercised, at any time within twelve (12) months following the
date of death (but in no event later than the expiration date of the term of
such Option as set forth in the Option Agreement), by such Optionee's estate or
by a person who acquired the right to exercise the Option by bequest or
inheritance, but only to the extent of the right to exercise that had accrued at
the date of death or, if earlier, the date of termination of the Optionee's
Continuous Service Status. To the extent that the Optionee was not entitled to
exercise the Option at the date of death or termination, as the case may be, or
if the Optionee does not exercise such Option to the extent so entitled within
the time specified above, the
<PAGE>

Option shall terminate and the Optioned Stock underlying the unexercised portion
of the Option shall revert to the Plan.

          (e)  Extension of Exercise Period.  The Administrator shall have full
power and authority to extend the period of time for which an Option is to
remain exercisable following termination of an Optionee's Continuous Service
Status from the periods set forth in Sections 9(b), 9(c) and 9(d) above or in
the Option Agreement to such greater time as the Board shall deem appropriate,
provided, that in no event shall such Option be exercisable later than the date
of expiration of the term of such Option as set forth in the Option Agreement.

          (f)  Buy-Out Provisions.  The Administrator may at any time offer to
buy out for a payment in cash or Shares an Option previously granted under the
Plan, based on such terms and conditions as the Administrator shall establish
and communicate to the Optionee at the time such offer is made.

     10.  Taxes.

          (a)  As a condition of the exercise of an Option granted under the
Plan, the Optionee (or in the case of the Optionee's death, the person
exercising the Option) shall make such arrangements as the Administrator may
require for the satisfaction of any applicable federal, state, local or foreign
withholding tax obligations that may arise in connection with the exercise of an
Option and the issuance of Shares.  The Company shall not be required to issue
any Shares under the Plan until such obligations are satisfied.  If the
Administrator allows the withholding or surrender of Shares to satisfy a
Participant's tax withholding obligations under this Section 10 (whether
pursuant to Section 10(c), (d) or (e), or otherwise), the Administrator shall
not allow Shares to be withheld in an amount that exceeds the minimum statutory
withholding rates for federal and state tax purposes, including payroll taxes.

          (b)  In the case of an Employee and in the absence of any other
arrangement, the Employee shall be deemed to have directed the Company to
withhold or collect from his or her compensation an amount sufficient to satisfy
such tax obligations from the next payroll payment otherwise payable after the
date of an exercise of the Option.

          (c)  In the case of a Optionee other than an Employee (or in the case
of an Employee where the next payroll payment is not sufficient to satisfy such
tax obligations, with respect to any remaining tax obligations), in the absence
of any other arrangement and to the extent permitted under the Applicable Laws,
the Optionee shall be deemed to have elected to have the Company withhold from
the Shares to be issued upon exercise of the Option that number of Shares having
a Fair Market Value determined as of the applicable Tax Date (as defined below)
equal to the minimum statutory amount required to be withheld.  For purposes of
this Section 10, the Fair Market Value of the Shares to be withheld shall be
determined on the date that the amount of tax to be withheld is to be determined
under the Applicable Laws (the "Tax Date").

          (d)  If permitted by the Administrator, in its discretion, a Optionee
may satisfy his or her tax withholding obligations upon exercise of an Option by
surrendering to the Company Shares that (i) in the case of Shares previously
acquired from the Company, have been owned by the Optionee for more than six
months on the date of surrender, and (ii) have a Fair
<PAGE>

Market Value determined as of the applicable Tax Date equal to the minimum
statutory amount required to be withheld.

          (e)  Any election or deemed election by a Optionee to have Shares
withheld to satisfy tax withholding obligations under Section 10(c) or (d) above
shall be irrevocable as to the particular Shares as to which the election is
made and shall be subject to the consent or disapproval of the Administrator.
Any election by an Optionee under Section 10(d) above must be made on or prior
to the applicable Tax Date.

          (f)  In the event an election to have Shares withheld is made by a
Optionee and the Tax Date is deferred under Section 83 of the Code because no
election is filed under Section 83(b) of the Code, the Optionee shall receive
the full number of Shares with respect to which the Option is exercised but such
Optionee shall be unconditionally obligated to tender back to the Company the
proper number of Shares on the Tax Date.

     11.  Non-Transferability of Options.  The Option may not be sold, pledged,
assigned, hypothecated, transferred, or disposed of in any manner other than by
will or by the laws of descent or distribution; provided, that the Administrator
may in its discretion grant transferable Options pursuant to option agreements
specifying (i) the manner in which such Options are transferable and (ii) that
any such transfer shall be subject to the Applicable Laws.  The designation of a
beneficiary by an Optionee will not constitute a transfer.  An Option may be
exercised, during the lifetime of the Optionee, only by the Optionee or a
transferee permitted by this Section 11.

     12.  Adjustments Upon Changes in Capitalization, Merger or Certain Other
Transactions.

          (a)  Changes in Capitalization.  Subject to any required action by the
stockholders of the Company, the number of Shares of Common Stock covered by
each outstanding Option, and the number of Shares of Common Stock that have been
authorized for issuance under the Plan but as to which no Options have yet been
granted or that have been returned to the Plan upon cancellation or expiration
of an Option, as well as the price per Share of Common Stock covered by each
such outstanding Option, shall be proportionately adjusted for any increase or
decrease in the number of issued Shares of Common Stock resulting from a stock
split, reverse stock split, stock dividend, combination, recapitalization or
reclassification of the Common Stock, or any other increase or decrease in the
number of issued Shares of Common Stock effected without receipt of
consideration by the Company; provided, however, that conversion of any
convertible securities of the Company shall not be deemed to have been "effected
without receipt of consideration."  Such adjustment shall be made by the
Administrator, whose determination in that respect shall be final, binding and
conclusive.  Except as expressly provided herein, no issuance by the Company of
shares of stock of any class, or securities convertible into shares of stock of
any class, shall affect, and no adjustment by reason thereof shall be made with
respect to, the number or price of Shares of Common Stock subject to an Option.
<PAGE>

          (b)  Dissolution or Liquidation.  In the event of the dissolution or
liquidation of the Company, each Option will terminate immediately prior to the
consummation of such action, unless otherwise determined by the Administrator.

          (c)  Corporate Transactions.  In the event of a Corporate Transaction,
each outstanding Option shall be assumed or an equivalent option or right shall
be substituted by such successor corporation or a parent or subsidiary of such
successor corporation (the "Successor Corporation"), unless the Successor
Corporation does not agree to assume the award or to substitute an equivalent
option or right, in which case such Option shall terminate upon the consummation
of the transaction.

     Notwithstanding the above sentence, in the event of a Change of Control,
the vesting and exercisability of each award outstanding under the Plan shall
automatically be accelerated to the extent of 25% of the Shares then unvested
and any repurchase right of the Company with respect to Shares previously issued
upon exercise of an award shall lapse as to 25% of the Shares then subject to
such repurchase right (with such vesting, exercisability and/or repurchase right
thereafter continuing on the schedule set forth in the applicable Stock Option
Agreement) and each such outstanding award shall either be (i) assumed or
replaced with equivalent option by the Successor Corporation or (ii) replaced by
a cash incentive program of the Successor Corporation based on the value of the
award at the time of the consummation of the transaction; provided that if the
Successor Corporation does not agree to assume the award or replace it with an
equivalent option, stock purchase right or cash incentive program, then the
vesting and exercisability of each outstanding award shall instead accelerate in
full, with such Options becoming vested and exercisable as to one hundred
percent (100%) of underlying Shares and any repurchase right of the Company
applicable to Shares previously issued upon exercise of an award lapsing as to
one hundred percent (100%) of the underlying Shares.  Any acceleration provided
for under this Section 14(c) shall occur effective immediately prior to
consummation of the Change of Control upon such conditions as the Administrator
shall determine.  To the extent that an award is not exercised prior to
consummation of a Change of Control transaction in which the award is not being
assumed or replaced with an equivalent option or stock purchase right by the
Successor Corporation, such Option or Stock Purchase Right shall terminate upon
such consummation.

          For purposes of this Section 12(c), an Option shall be considered
assumed, without limitation, if, at the time of issuance of the stock or other
consideration upon a Corporate Transaction or a Change of Control, as the case
may be, each holder of an Option would be entitled to receive upon exercise of
the award the same number and kind of shares of stock or the same amount of
property, cash or securities as such holder would have been entitled to receive
upon the occurrence of the transaction if the holder had been, immediately prior
to such transaction, the holder of the number of Shares of Common Stock covered
by the award at such time (after giving effect to any adjustments in the number
of Shares covered by the Option as provided for in this Section 12); provided
that if such consideration received in the transaction is not solely common
stock of the Successor Corporation, the Administrator may, with the consent of
the Successor Corporation, provide for the consideration to be received upon
exercise of the award to be solely common stock of the Successor Corporation
equal to the Fair Market Value of the per Share consideration received by
holders of Common Stock in the transaction.
<PAGE>

          (d)  Certain Distributions.  In the event of any distribution to the
Company's stockholders of securities of any other entity or other assets (other
than dividends payable in cash or stock of the Company) without receipt of
consideration by the Company, the Administrator may, in its discretion,
appropriately adjust the price per Share of Common Stock covered by each
outstanding Option to reflect the effect of such distribution.

     13.  Time of Granting Options.  The date of grant of an Option shall, for
all purposes, be the date on which the Administrator makes the determination
granting such Option.  Notice of the determination shall be given to each
Employee or Consultant to whom an Option is so granted within a reasonable time
after the date of such grant.

     14.  Amendment and Termination of the Plan.

          (a)  Authority to Amend or Terminate.  The Board may at any time
amend, alter, suspend or discontinue the Plan, but no amendment, alteration,
suspension or discontinuation (other than an adjustment pursuant to Section 12
above) shall be made that would materially and adversely affect the rights of
any Optionee under any outstanding grant, without his or her consent.

          (b)  Effect of Amendment or Termination.  No amendment or termination
of the Plan shall materially and adversely affect Options already granted,
unless mutually agreed otherwise between the Optionee and the Administrator,
which agreement must be in writing and signed by the Optionee and the Company.

     15.  Conditions Upon Issuance of Shares.  Notwithstanding any other
provision of the Plan or any agreement entered into by the Company pursuant to
the Plan, the Company shall not be obligated, and shall have no liability for
failure, to issue or deliver any Shares under the Plan unless such issuance or
delivery would comply with the Applicable Laws, with such compliance determined
by the Company in consultation with its legal counsel.  As a condition to the
exercise of an Option, the Company may require the person exercising the award
to represent and warrant at the time of any such exercise that the Shares are
being purchased only for investment and without any present intention to sell or
distribute such Shares if, in the opinion of counsel for the Company, such a
representation is required by law.

     16.  Reservation of Shares.  The Company, during the term of this Plan,
will at all times reserve and keep available such number of Shares as shall be
sufficient to satisfy the requirements of the Plan.  The inability of the
Company to obtain authority from any regulatory body having jurisdiction, which
authority is deemed by the Company's counsel to be necessary to the lawful
issuance and sale of any Shares hereunder, shall relieve the Company of any
liability in respect of the failure to issue or sell such Shares as to which
such requisite authority shall not have been obtained.

     17.  Option Agreements.  Options shall be evidenced by Option Agreements in
such forms as the Administrator shall from time to time approve.

     18.  Information to Optionees.  The Company shall provide to each Optionee
upon request, during the period for which such Optionee has one or more Options
outstanding, copies
<PAGE>

of all annual reports and other information which are provided to all
stockholders of the Company.<PAGE>
                                                                   Exhibit 10.32

                                        February 23, 2001

John Baker
1245 20th Place
Hermosa Beach, CA  90254

Dear John,

     On behalf of Loudeye Technologies, Inc., a Delaware corporation (the
"Company"), I am pleased to offer you the position of President and Chief
Executive Officer of the Company.  You will also become a member of the Board of
Directors. Speaking for myself, as well as the other members of the Company's
management team, we are all very impressed with your credentials and we look
forward to your future success in this position.

     The terms of your new position with the Company are as set forth below:

          1.   Position.

               a.   You will become the President and Chief Executive Officer of
                    the Company, working out of the Company's office in Seattle,
                    Washington . You will report to the Board of Directors.

               b.   You agree to the best of your ability and experience that
                    you will at all times loyally and conscientiously perform
                    all of the duties and obligations required of and from you
                    pursuant to the express and implicit terms hereof, and to
                    the reasonable satisfaction of the Company. During the term
                    of your employment, you further agree that you will devote
                    all of your business time and attention to the business of
                    the Company, the Company will be entitled to all of the
                    benefits and profits arising from or incident to all such
                    work services and advice, you will not render commercial or
                    professional services of any nature to any person or
                    organization, whether or not for compensation, without the
                    prior written consent of the Company's Board of Directors,
                    and you will not directly or indirectly engage or
                    participate in any business that is competitive in any
                    manner with the business of the Company. Nothing in this
                    letter agreement will prevent you from accepting speaking or
                    presentation engagements in exchange for honoraria or from
                    serving on boards of charitable organizations, or from
                    owning no more than one percent (1%) of the outstanding
                    equity securities of a corporation whose stock is listed on
                    a national stock exchange.
<PAGE>

February 23, 2001
Page 2

          2.   Start Date.  Subject to fulfillment of any conditions imposed by
               this letter agreement, you will commence this new position with
               the Company on March 5, 2000.

          3.   Proof of Right to Work.  For purposes of federal immigration law,
               you will be required to provide to the Company documentary
               evidence of your identity and eligibility for employment in the
               United States. Such documentation must be provided to us within
               three (3) business days of your Start Date, or our employment
               relationship with you may be terminated.

          4.   Compensation.

               a.   Base Salary.  You will be paid a monthly salary of
                    $25,000.00, which is equivalent to $300,000.00 on an
                    annualized basis. Your salary will be payable in two equal
                    payments per month pursuant to the Company's regular payroll
                    policy (or in the same manner as other employees of the
                    Company).

               b.   Annual Review.  Your base salary will be reviewed annually
                    as part of the Company's normal salary review process and at
                    the discretion of the Board of Directors.

               c.   Annual Bonus.  You are eligible to receive an annual bonus
                    of between $75,000.00 and $150,000.00 based on the
                    achievement of objectives set forth by you and the Board of
                    Directors.

          5.   Stock Options.

               a.   Initial Option Grant.  You will be eligible to participate
                    in any stock option or other incentive programs available to
                    officers or employees of the Company. Your initial grant
                    amount will be issued on your Start Date and will total
                    1,200,000 Nonqualified Stock Options. This grant shall have
                    a ten-year term and shall be exercisable at the rate of
                    18.75% of the shares on the nine month anniversary from your
                    Vesting Commencement Date, (which shall be start date), and
                    quarterly thereafter at a rate of 6.25% of the total number
                    of options every quarter until fully vested (pro-rated for
                    any periods less than a full calendar quarter). The exercise
                    price per share of your Initial Option Grant will be equal
                    to the Company's closing common stock price on your Start
                    Date.

               b.   Bonus Option Grants.  You will be eligible for a bonus grant
                    of 200,000 options issued at the exercise price of $4.00 per
                    share at such time as the Company's common stock closes at
                    or above a price of $4.00 for ten
<PAGE>

February 23, 2001
Page 3

                    consecutive days. You will also be eligible for a bonus
                    grant of 200,000 options issued at the exercise price of
                    $6.00 per share at such time as the Company's common stock
                    closes at or above a price of $6.00 for ten consecutive
                    days. You will also be eligible for a bonus grant of 200,000
                    options issued at the exercise price of $8.00 per share at
                    such time as the Company's common stock closes at or above a
                    price of $8.00 for ten consecutive days. Each such bonus
                    option grant shall have a ten-year term and shall be
                    exercisable at the rate of 6.25% of the total number of
                    options every quarter from the date of grant until fully
                    vested (pro-rated for any periods less than a full calendar
                    quarter).

               c.   Change of Control.  If the Company experiences a change in
                    control, the vesting and exercisability of these options
                    will accelerate with respect to 100% of the total number of
                    shares originally subject to these options.

               d.   Severance.

                    1.   Acceleration.  If you are terminated not for Cause and
                         not related to change of control, you will receive 50%
                         accelerated vesting of your remaining options. "Cause"
                         for termination of your employment shall exist if you
                         willfully fail to substantially perform your duties and
                         responsibilities to the Company, have repeated
                         unexplained or unjustified absences from the Company,
                         commit any act of fraud, embezzlement, dishonesty or
                         other willful misconduct that causes or would likely
                         cause material injury to the Company, use or disclose
                         without authorization any proprietary information or
                         trade secrets of the Company (or other parties to whom
                         you owe an obligation of confidentiality as a result of
                         your relationship with the Company), or willfully
                         breach your obligations under any agreement with the
                         Company including the Confidentiality Agreement.
                         "Cause" is also not defined as you willfully separating
                         from the Company.

                    2.   Exerciseability.  If you are terminated not for cause,
                         you will have up to 90 days after any trading
                         restrictions have been removed to exercise any vested
                         options.

          6.   Benefits.

               a.   The Company will provide you and your dependents with
                    standard medical and optional dental and vision insurance
                    benefits. The Company will subsidize 100% of these premiums.
                    In addition, the Company currently indemnifies all officers
                    and directors to the maximum extent permitted by law, and
                    you will be requested to enter into the Company's standard
                    form of Indemnification Agreement giving you such
                    protection. Pursuant to the Indemnification Agreement, the
<PAGE>

February 23, 2001
Page 4

                    Company will agree to advance any expenses for which
                    indemnification is available to the extent allowed by
                    applicable law.

               b.   You will be eligible to participate in all standard employee
                    benefits including the following: 17 general
                    vacation/sick/personal days; 8 paid Holidays; the Company's
                    401K plan; Employee Stock Purchase Program; Short and Long
                    Term Disability plans; Soft Dollar "Life Enhancement" plan;
                    and the Company's Flexible Spending Account plan. Also, in
                    addition to the $150,000.00 of employer paid Life and AD&D
                    insurance, you are also eligible to apply for voluntary Life
                    insurance and will receive a guarantee issue of $50,000.00
                    if you elect coverage. If you complete and pass a medical
                    questionnaire and possible medical exam, you are eligible to
                    receive up to $300,000.00 upon approval.

          7.   Proprietary Information and Inventions Agreement.  Your
               acceptance of this offer and commencement of employment with the
               Company is contingent upon the execution, and delivery to an
               officer of the Company, of the Company's Proprietary Information
               and Inventions Agreement, a copy of which is enclosed for your
               review and execution (the "Confidentiality Agreement"), prior to
               or on your Start Date.

          8.   Confidentiality of Terms.  You agree to follow the Company's
               strict policy that employees must not disclose, either directly
               or indirectly, any information, including any of the terms of
               this agreement, regarding salary, bonuses, or stock purchase or
               option allocations to any person; provided, however, that you may
               discuss such terms with members of your immediate family and any
               legal, tax or accounting specialists who provide you with
               individual legal, tax or accounting advice.

          9.   Severance Agreement.  If your employment is terminated by the
               Company or its successor for any reason other than Cause, as
               reasonably determined by the Company's Board of Directors, you
               will be entitled to receive continuation of your base salary and
               reimbursement of your insurance benefit expenses for twelve
               months following the date of termination of your employment.

          10.  At-Will Employment.  Notwithstanding the Company's obligation
               described in Section 8 above, your employment with the Company
               will be on an "at will" basis, meaning that either you or the
               Company may terminate your employment at any time for any reason
               or no reason, without further obligation or liability.
<PAGE>

February 23, 2001
Page 5

          11.  Relocation.  You will be eligible to receive reimbursement for
               relocation and transition expenses up to $100,000 and will be
               asked to submit receipts. You will also be able to expense
               temporary housing and travel to the Company for the estimated
               four month transition period until your relocation is complete.

     We are all delighted to be able to extend you this offer and look
forward to working with you.  To indicate your acceptance of the Company's
offer, please sign and date this letter in the space provided below and return
it to me, along with a signed and dated copy of the Proprietary Information and
Inventions Agreement.  This letter, together with the Proprietary Information
and Inventions Agreement, sets forth the terms of your employment with the
Company and supersedes any prior representations or agreements, whether written
or oral.  This letter may not be modified or amended except by a written
agreement, signed by the Company and by you.

                                        Very truly yours,

                                        LOUDEYE TECHNOLOGIES

                                        /s/ Martin Tobias

                                        MARTIN TOBIAS
                                        Chairman, Board of Directors

ACCEPTED AND AGREED:

John Baker

        /s/ John Baker
--------------------------------
Signature

      February 23, 2001
--------------------------------
Date

Enclosure:  Proprietary Information and Inventions Agreement

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