NON-QUALIFIED STOCK OPTION AGREEMENT MEDIABAY, INC.Equity Contribution Agreement |
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Exhibit 10.5
NON-QUALIFIED STOCK OPTION AGREEMENT
MEDIABAY, INC.
AGREEMENT made as of this April 4, 2005 (the "Grant Date")
between MediaBay, Inc. (the "Company"), a Florida corporation, having a
principal place of business in Cedar Knolls, New Jersey, and Daniel J. Altobello
(the "Grantee") residing at 9727 Avenel Farm Drive, Potomac, Maryland 20854.
WHEREAS, the Company desires to grant to the Grantee a
Non-Qualified Stock Option to purchase 50,000 shares of its common stock, no par
value (the "Shares"), under and for the purposes of the 2004 Stock Incentive
Plan of the Company (the "Plan"), pursuant to the terms thereof;
WHEREAS, the Company and the Grantee understand and agree that
unless otherwise defined herein any terms used herein have the same meanings as
in the Plan.
NOW, THEREFORE, in consideration of the mutual covenants
hereinafter set forth and for other good and valuable consideration, the parties
hereto agree as follows:
1. Grant of Option. The Company hereby grants to the Grantee
the right and option (the "Option") to purchase all or any part of an aggregate
of 50,000 shares of its common stock, no par value, on the terms and conditions
and subject to all the limitations set forth herein and in the Plan, which is
incorporated herein by reference. The Grantee acknowledges receipt of a copy of
the Plan.
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2. Purchase Price. The purchase price of the 50,000 of the
Shares covered by the Option shall be $0.59 per share.
3. Exercise of Option. The Option granted hereby shall vest
immediately and be exercisable on the following dates:
1 Twenty-Five Thousand (25,000) on the date hereof
2 Twenty-Five Thousand (25,000) on April 1, 2006
4. Term of Option. The Option shall terminate on April 1,
2010.
5. Non-Assignability. The Option shall not be transferable by
the Grantee otherwise than by will or by the laws of descent and distribution
and shall be exercisable, during the Grantee's lifetime, only by the Grantee.
The Option shall not be assigned, pledged or hypothecated in any way (whether by






