Document:

<PAGE>

                                                                    EXHIBIT 10.1

THIS DOCUMENT IS IMPORTANT AND REQUIRES YOUR IMMEDIATE ATTENTION. IF YOU ARE IN
ANY DOUBT AS TO THE ACTION YOU SHOULD TAKE, YOU SHOULD IMMEDIATELY CONSULT YOUR
STOCKBROKER, BANK MANAGER, SOLICITOR, ACCOUNTANT OR OTHER INDEPENDENT FINANCIAL
ADVISER AUTHORISED UNDER THE FINANCIAL SERVICES AND MARKETS ACT 2000.

THIS DOCUMENT SHOULD BE READ IN CONJUNCTION WITH THE ACCOMPANYING FORM OF
ACCEPTANCE AND ELECTION.

IF YOU HAVE SOLD OR OTHERWISE TRANSFERRED all your OD2 Shares, your OD2 Warrants
or your OD2 Convertible Notes, please forward this document, together with the
accompanying Form of Acceptance and Election, as soon as possible to the
purchaser or transferee. However, this document and the accompanying Form of
Acceptance and Election should not be forwarded or transmitted in or into
Canada, Australia or the Republic of Ireland.

The Offer is not being made, directly or indirectly, and this document should
not be sent, in or into Canada, Australia or the Republic of Ireland or by use
of the mails of or by any means of instrumentality of interstate or foreign
commerce of, or any facilities of a national securities exchange of, any of
these jurisdictions, including, without limitation, the post, facsimile
transmission, telex and telephone and the Offer should not be accepted by any
such use, means, instrumentality or facility, or from within Canada, Australia
or the Republic of Ireland and doing so may render invalid any purported
acceptance of the Offer.

---------------------------------------------------------------------------

                                RECOMMENDED OFFER

                                       BY

                                  LOUDEYE CORP.

                                       FOR

                         ON DEMAND DISTRIBUTION LIMITED

---------------------------------------------------------------------------

TO ACCEPT THE OFFER, FORMS OF ACCEPTANCE AND ELECTION SHOULD BE COMPLETED IN
ACCORDANCE WITH THE INSTRUCTIONS SET OUT THEREIN AND RETURNED, BY POST OR
(DURING NORMAL BUSINESS HOURS ONLY) BY HAND SIGNED AND WITNESSED TO CHRISTOPHER
PIKE AT OD2, BROADQUAY HOUSE, PRINCE STREET, BRISTOL BS1 4DJ AS SOON AS POSSIBLE
AND, IN ANY EVENT, SO AS TO BE RECEIVED BY NOT LATER THAN 3.00 PM ON 22 JULY
2004. THE PROCEDURE FOR ACCEPTANCE OF THE OFFER IS SET OUT ON PAGES 28 TO 30 OF
THIS DOCUMENT, APPENDIX I AND IN THE ACCOMPANYING FORM OF ACCEPTANCE AND
ELECTION.

A Letter from the Chairman of OD2 containing the recommendation of the directors
of OD2 is set out on pages 8 to 18 of this document.

THE PROVISIONS OF THE CITY CODE ON TAKEOVERS AND MERGERS DO NOT APPLY TO THE
OFFER AND THIS DOCUMENT.

No person has been authorized by Loudeye to give any information or to make any
representation other than those contained in this document and, if given or
made, such information or representation should not be relied upon as having
been authorized by Loudeye. The delivery of this Offer Document shall not under
any circumstances create any implication that there has been no change in
Loudeye's affairs since the date of this document, or that the information
contained in this document is correct as of any time subsequent to its date.

This Offer Document does not constitute an offer to sell Loudeye securities or
the solicitation of an offer to buy Loudeye securities, nor shall there be any
sale, issuance or transfer of Loudeye securities in any jurisdiction in which
such offer, solicitation or sale would be unlawful.

<PAGE>

Neither the proposed transaction described in this Offer Document nor the
securities of Loudeye to be issued in connection with such transaction have been
approved or disapproved by the Securities and Exchange Commission or any state
securities commission, nor has the Securities and Exchange Commission or any
state securities commission passed upon the accuracy or adequacy of this Offer
Document. Any representation to the contrary is a criminal offense.

This Offer Document is being used in connection with the private placement of
securities of Loudeye pursuant to an exemption from registration contained in
Section 4(2) of the US Securities Act of 1933 and Regulation D promulgated
thereunder and/or as a placement under Regulation S promulgated under the
Securities Act.

In addition to the transfer restrictions described below, Loudeye's securities
described in this document are subject to contractual and legal restrictions on
transferability and resale and may not be transferred or resold except as
permitted under this Offer Document, the Securities Act and applicable state
securities laws. As a prospective investor in Loudeye securities, you should be
aware that you may be required to bear the financial risks of this investment
for an indefinite period of time. For a description of the restrictions on
transfer of the Loudeye Securities, see Part D of Appendix I. The Promissory
Notes and the Contingent Value Rights are non-transferable.

THE SECURITIES OF LOUDEYE TO BE ISSUED IN CONNECTION WITH THE OFFER HAVE NOT
BEEN REGISTERED UNDER THE SECURITIES ACT AND MAY NOT BE OFFERED OR SOLD IN THE
UNITED STATES OR TO U.S. PERSONS UNLESS SUCH SECURITIES ARE REGISTERED UNDER THE
SECURITIES ACT OR AN EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF THE
SECURITIES ACT IS AVAILABLE. IN ADDITION, HEDGING TRANSACTIONS INVOLVING SUCH
SECURITIES MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE SECURITIES ACT. A
LEGEND TO THIS EFFECT WILL BE PLACED ON THE CERTIFICATES EVIDENCING THE
SECURITIES. THE SECURITIES ARE SUBJECT TO OTHER RESTRICTIONS ON TRANSFER
DESCRIBED IN THIS OFFER DOCUMENT.

                                       2
<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
 SECTION                                                        PAGE
 -------                                                        -----
<S>                                                             <C>
Definitions                                                       4

Letter from OD2                                                   8

Letter from Loudeye Corp.                                        19

1.       Introduction                                            19

2.       The Offer for the OD2 Shares                            19

3.       Contingent Value Rights                                 21

4.       Promissory Notes                                        22

5.       Compulsory Sale Procedure                               22

6.       Undertakings to accept the Offer                        23

7.       Optionholders                                           23

8.       Registration Rights                                     26

9.       Information on Loudeye                                  26

10.      Information on Loudeye Common Stock                     27

11.      Loudeye Dividend Policy                                 27

12.      Reasons for the Offer                                   27

13.      Directors, Management and Employees                     28

14.      Procedure for acceptance of the Offer and
         participation in the Optionholder Alternative           28

15.      Settlement                                              30

16.      Further Information                                     31

Appendix I - Conditions and Further Terms of the Offer           32

Appendix II - Contingent Value Rights                            40

Appendix III - Registration Rights                               52

Appendix IV - Promissory Notes - Summary Terms                   62

Appendix V - Additional Information                              64

Appendix VI - Loudeye 10-Q                                       88

Appendix VII - Optionholder Alternative                         143
</TABLE>

                                       3
<PAGE>

                                   DEFINITIONS

"ACCEPTING HOLDER"                  has the meaning given in paragraph 4 of the
                                    Loudeye Letter;

"BROADVIEW"                         Broadview International Limited of St.
                                    James's House, 23 King Street, London SW1Y
                                    6QY;

"BUSINESS DAYS"                     means a day (other than a Saturday or
                                    Sunday) on which banks are open for business
                                    in London and Seattle, Washington USA;

"COMPLETION"                        completion of the transfer to Loudeye of 100
                                    per cent. of the OD2 Shares the subject of
                                    the Offer;

"COMPLETION DATE"                   the date of Completion;

"COMPULSORY SALE PROCEDURE"         the procedure prescribed by Sections
                                    428-430F of the Companies Act 1985 to
                                    acquire compulsorily any outstanding OD2
                                    Shares;

"CONTINGENT VALUE RIGHT"            a Contingent Value Right to be issued by
                                    Loudeye under the terms of the Offer having
                                    the rights and being subject to the
                                    restrictions set out in Appendix II to this
                                    document;

"DEFERRED CONSIDERATION"            that element of the Offer consideration
                                    described in paragraph 2(ii) of the Loudeye
                                    Letter;

"EARN-OUT CONSIDERATION"            that element of the consideration under the
                                    Offer described in paragraph 2(iii) of the
                                    Loudeye Letter;

"EMI PLAN"                          the Company's enterprise management
                                    incentive share option plan established by
                                    deeds creating EMI options;

"EMPLOYEE OPTIONS"                  options to acquire OD2 Shares granted under
                                    the Unapproved Plan and the Non-Executive
                                    Options;

"EMPLOYEE OPTIONHOLDERS"            the holders of Employee Options;

"EXCHANGED OPTIONS"                 has the meaning given in paragraph 7(ii) of
                                    the Loudeye Letter;

"EXCHANGE RATE"                     the mid-range(pound)/U.S. dollar closing
                                    price in respect of the relevant day as
                                    reported in the Wall Street Journal;

"FINAL ACCEPTANCE DATE"             22 July, 2004 unless the Offer Period is
                                    extended by Loudeye;

"FORM OF ACCEPTANCE AND ELECTION    the form of acceptance and election relating
"OR " FORM"                         to the Offer dispatched with this document;

                                       4
<PAGE>

"FURTHER LOUDEYE SHARES"            Loudeye Shares issued to holders of
                                    Contingent Value Rights in accordance with
                                    the terms of Appendix II;

"INITIAL CONSIDERATION"             that element of the Offer consideration
                                    described in paragraph 2(i) of the Loudeye
                                    Letter;

"INITIAL LOUDEYE SHARES"            the initial Loudeye Shares to be issued
                                    pursuant to the Offer and the Compulsory
                                    Sale Procedure and referred to in paragraph
                                    2(i)(a) of the Loudeye Letter;

"LOUDEYE" OR "PURCHASER"            Loudeye Corp. of 1130 Rainier Avenue South
                                    Seattle, Washington 98144, USA;

"LOUDEYE LETTER"                    the letter from Loudeye set out on pages 19
                                    to 31 of this document;

"LOUDEYE GROUP"                     Loudeye or any of its subsidiaries, or any
                                    partnership, joint venture, firm or company
                                    in which Loudeye or any of its subsidiaries
                                    is interested;

"LOUDEYE SECURITIES"                has the meaning given in Part D of Appendix
                                    I;

"LOUDEYE SHARE PRICE"               the volume weighted average of the closing
                                    price in(pound)of a Loudeye Share on NASDAQ
                                    for the 30 Trading Days (or such other
                                    period as may be specified in this Offer
                                    Document) ended on (and including) the day
                                    in question (save that in the event that the
                                    day in question is not a Trading Day, the
                                    period of 30 Trading Days (or such other
                                    period as may be specified in this Offer
                                    Document) shall end on (and include) the
                                    Trading Day immediately prior to the day in
                                    question), calculated at the Exchange Rate
                                    each day;

"LOUDEYE SHARES"                    shares of Common Stock, par value $0.001 per
                                    share, of Loudeye;

"NASDAQ"                            the NASDAQ electronic stock market;

"NON-EXECUTIVE OPTIONS"             options granted by the Company to
                                    non-executive directors of the Company under
                                    letters dated 24 April 2003;

"NOTEHOLDERS"                       the holders of OD2 Convertible Notes;

"OD2" or "COMPANY"                  On Demand Distribution Limited with
                                    registered office address at Box Hill, Mill
                                    Lane, Box, Corsham, Wiltshire SN13 8PN;

"OD2 BOARD"                         the board of directors of OD2;

"OD2 CONVERTIBLE NOTES"             the loan notes issued by the Company on or
                                    about 24 April 2003;

                                       5
<PAGE>

"OD2 DIRECTORS"                     the directors of OD2;

"OD2 GROUP" or "GROUP"              OD2 and its Subsidiaries;

"OD2 LETTER"                        the letter set out on pages 8 to 18 of this
                                    document;

"OD2 OPTIONS"                       Options over OD2 Shares on the terms and
                                    conditions of the EMI Plan, the Unapproved
                                    Plan and the Non-Executive Options or any
                                    other options or rights to subscribe for OD2
                                    Shares;

"OD2 SHARES"                        the existing unconditionally issued or
                                    allotted and fully paid ordinary shares of
                                    10p each in OD2 and any further such shares
                                    which are unconditionally issued and
                                    allotted or credited as fully paid on or
                                    before the date on which the Offer ceases to
                                    be open for acceptance (or such earlier date
                                    as the Purchaser may decide) including any
                                    shares in the capital of OD2 which fall to
                                    be issued upon valid exercise of the OD2
                                    Options, the OD2 Warrants or the OD2
                                    Convertible Notes;

"OD2 WARRANTS"                      warrants to subscribe for OD2 Shares;

"OFFER"                             the Offer made by the Purchaser to acquire
                                    OD2 Shares on the terms and subject to the
                                    conditions set out in this document and the
                                    accompanying Form of Acceptance and
                                    Election;

"OFFER PERIOD"                      the period commencing on the date of this
                                    Offer and ending at 3.00 p.m. on the Final
                                    Acceptance Date, unless extended by Loudeye;

"OPTIONHOLDER ALTERNATIVE"          the alternative available to Employee
                                    Optionholders described in paragraph 7(ii)
                                    of the Loudeye Letter;

"OPTIONHOLDERS"                     the holders of OD2 Options;

"PROMISSORY NOTES" OR "NOTES"       the Series A Notes, the Series B Notes and
                                    the Series C Notes or any of them;

"REGISTRATION RIGHTS"               the Registration Rights in respect of the
                                    Loudeye Shares issued pursuant to the Offer;

"SECURITIES ACT"                    the United States Securities Act of 1933, as
                                    amended;

"SERIES A NOTES"                    the Series A loan notes the terms of which
                                    are summarised in Appendix IV;

"SERIES B NOTES"                    the Series B loan notes the terms of which
                                    are summarised in Appendix IV;

                                       6
<PAGE>

"SERIES C NOTES"                    the Series C loan notes the terms of which
                                    are summarised in Appendix IV;

"SHAREHOLDERS"                      the holders of OD2 Shares;

"SUBSIDIARIES"                      means each of On Demand Distribution sas, On
                                    Demand Distribution S.r.l., On Demand
                                    Distribution GmbH and WebAudioNetwork
                                    Limited;

"TRADING DAYS"                      days upon which Loudeye Shares are available
                                    for trading on NASDAQ;

"UNAPPROVED PLAN"                   the On Demand Distribution Limited Employee
                                    Share Option Plan;

"US" OR "UNITED STATES"             the United States of America, its
                                    territories and possessions, any state of
                                    the United States and the District of
                                    Columbia;

"VENDORS"                           persons accepting the Offer or who are
                                    compelled to transfer OD2 Shares pursuant to
                                    the Compulsory Sale Procedure or under
                                    Article 13 of the Company's Articles of
                                    Association;

"WARRANTHOLDERS"                    the holders of OD2 Warrants;

"WIDER OD2 GROUP"                   OD2 and any of its subsidiaries or
                                    subsidiary undertakings and any associated
                                    company and any company of which 20 per cent
                                    or more of the voting capital is held by any
                                    member of the OD2 Group and any partnership,
                                    joint venture, firm or company in which any
                                    member of OD2 Group is directly or
                                    indirectly interested; and

"(POUND)" AND "PENCE"               British pounds sterling and pence.

                                       7
<PAGE>

[OD2 LOGO]

                                                                 BroadQuay House
                                                                   Prince Street
                                                                Bristol, BS1 4DJ

                                                                    22 June 2004

To:  Shareholders, Optionholders, Warrantholders and Noteholders.

Dear Sir or Madam,

RECOMMENDED OFFER FOR OD2

On 22 June 2004, the board of Loudeye announced a private offer to acquire all
of the issued and to be issued ordinary share capital of OD2.

Loudeye will issue up to 13,950,000 Loudeye Shares in connection with the Offer,
the Compulsory Sale Procedure and the Optionholder Alternative (which are
described below). Loudeye will also pay deferred consideration over the next 18
months of between approximately (pound)9,760,000 and (pound)9,970,000 (depending
upon how many Employee Optionholders elect to participate in the Optionholder
Alternative), plus additional contingent consideration of up to an additional
(pound)10 million in the aggregate based on and subject to OD2's future
financial performance. All additional payments are payable, at Loudeye' option,
in further Loudeye Shares or cash (subject to the right of accepting holders of
OD2 Shares to elect to receive Promissory Notes in lieu of cash).

An alternative to acceptance of the Offer for Employee Optionholders is also
being proposed by Loudeye which Employee Optionholders may wish to consider.
Details of the Optionholder Alternative are set out below and in paragraph 7(ii)
of the Loudeye Letter and an explanation of the associated tax considerations is
set out below. The Optionholder Alternative is not available in respect of
options granted under the EMI Plan.

The purpose of this letter is to explain the background to the Offer and the
reasons why your board unanimously recommends you accept it.

THE OFFER FOR OD2 SHARES

The formal Offer to Shareholders and to Optionholders, Warrantholders and
Noteholders (in respect of OD2 Shares which fall to be issued by OD2 upon the
exercise of OD2 Options, OD2 Warrants and upon the conversion of OD2 Convertible
Notes respectively) is set out in the letter from Loudeye on pages 19 to 31 of
this document.

FOR EVERY OD2 SHARE (and so in proportion for any other number of OD2 Shares
held), a person accepting the Offer will receive:

                                       8
<PAGE>

(i)   INITIAL CONSIDERATION

      (a)   the issue of 0.4469 Loudeye Shares, PLUS

      (b)   on 31 January 2005, at Loudeye's option, either:

            -     the payment of 18.12p in cash; or

            -     the issue of such number of Loudeye Shares with an aggregate
                  Loudeye Share Price as of 31 January 2005 (which shall be
                  determined based on the 90 Trading Days ended on (and
                  including) 31 January 2005) equal to 18.12p; AND

(ii)  DEFERRED CONSIDERATION

      19.04P, which shall be satisfied by:

      (a)   on 30 November 2004, at Loudeye's option, either:

            -     the payment of 4.76p in cash; or

            -     the issue of such number of Loudeye Shares with an aggregate
                  Loudeye Share Price as of 30 November, 2004 equal to 4.76p;
                  AND

      (b)   on 31 May 2005, at Loudeye's option, either:

            -     the payment of 4.76p in cash; or

            -     the issue of such number of Loudeye Shares with an aggregate
                  Loudeye Share Price as of 31 May 2005 equal to 4.76p; AND

      (c)   on 30 November 2005, at Loudeye's option, either:

            -     the payment of 9.52p in cash; or

            -     the issue of such number of Loudeye Shares with an aggregate
                  Loudeye Share Price as of 31 November 2005 equal to 9.52p; AND

(iii) EARN-OUT CONSIDERATION

      the issue of ONE (1) CONTINGENT VALUE RIGHT, having the rights described
      below and in Appendix II of this document.

Fractions of Loudeye Shares will be rounded down to the nearest whole Loudeye
Share and any fractional entitlements of accepting persons shall be ignored.

Based on representations that have been made to Loudeye regarding the
capitalisation of OD2, the payment of the consideration described above will not
result in the issuance of more than 13,950,000 Loudeye Shares in connection with
the Offer, the Compulsory Sale Procedure and the Optionholder Alternative.
Loudeye will not issue more than 13,950,000 Loudeye Shares in connection with
this transaction unless it obtains the approval of its stockholders in
accordance with NASDAQ requirements as described below. Accordingly, Loudeye may
elect to pay an amount of cash equal to the trading price of a Loudeye Share on
the date of settlement multiplied by 0.4469 per OD2 Share in lieu of the
issuance of Loudeye Shares described at paragraph (i)(a) above so as to ensure
that such limitation is not exceeded.

                                       9
<PAGE>

Persons accepting the Offer may elect to receive Promissory Notes in lieu of all
(and not part only) of the following elements of the consideration payable under
the Offer:

-     the consideration referred to at paragraphs (i)(b) and (ii)(a)-(c) above;
      and

-     any consideration which becomes payable under the Contingent Value Rights
      unless Loudeye elects to pay such consideration in the form of Loudeye
      Shares.

Further details of the terms of the Promissory Notes are set out in paragraph 4
of the Loudeye Letter and in Appendix IV of this document.

The right to receive any future Consideration payable by Loudeye as described
above may not be transferred or assigned without the prior written consent of
Loudeye.

CONTINGENT VALUE RIGHTS

Persons who accept the Offer or who are compelled to transfer their OD2 Shares
pursuant to the Compulsory Sale Procedure will each be issued one Contingent
Value Right in respect of each OD2 Share sold under the terms of the Offer. Each
Contingent Value Right entitles the holder to receive additional consideration
for the sale of his OD2 Shares contingent upon the Company reaching certain
financial performance targets in the future. If such financial performance
targets are met the Purchaser shall make payments of additional consideration to
holders of Contingent Value Rights, to be satisfied in cash or, at the election
of the Purchaser, by the issue of further Loudeye Shares (alternatively, cash
payments may be satisfied by an issue of Promissory Notes in accordance with
paragraph 4 of the Loudeye Letter). The maximum amount of additional
consideration payable by the Purchaser under all Contingent Value Rights is
(pound)10 million.

The Contingent Value Rights will not be certificated. The Contingent Value
Rights are personal to the holder and are not transferable, assignable or
chargeable. Any purported transfer, assignment, disposal or dealing with the
rights attaching to the Contingent Value Rights will render the Contingent Value
Right void. Further details regarding the Contingent Value Rights are set out in
paragraph 3 of the Loudeye Letter and in Appendix II to this document.

LOUDEYE SHARES

The Loudeye Share Price as at 18 June 2004, the latest practicable date before
the dispatch of this document, was $1.32 (or 72.13p, at the Exchange Rate).

Loudeye will not issue more than 13,950,000 Loudeye Shares (including shares
underlying the Exchanged Options) in connection with the Offer, the Compulsory
Sale Procedure and the Optionholder Alternative unless it obtains the approval
of the holders of a majority of outstanding Loudeye Shares in accordance with
NASDAQ requirements. To the extent required by NASDAQ rules, the votes of
holders of Initial Loudeye Shares issued in connection with the Offer, the
Compulsory Sale Procedure or the Optionholder Alternative will not be counted
(with respect to such Initial Loudeye Shares) to approve or disapprove the
issuance of additional Loudeye Shares as a means of paying any additional
consideration that Loudeye may be required to pay in connection with the Offer
or the Compulsory Sale Procedure. If such approval is not obtained, any
obligation of Loudeye under the Offer to pay further consideration will be
satisfied in cash (subject to the right of accepting holders of OD2 Shares to
elect to receive Promissory Notes in lieu of cash (see paragraph 4 of the
Loudeye Letter)). In addition, no further shares or options will be issued under
the Unapproved Plan (other than Loudeye Shares issuable upon exercise of
Exchanged Options).

                                       10
<PAGE>

UNDERTAKINGS TO ACCEPT THE OFFER AND THE COMPULSORY SALE PROCEDURE

Irrevocable undertakings to accept the Offer have been given to Loudeye by the
OD2 Directors and certain other Shareholders in respect of their holdings of OD2
Shares (currently in issue and/or falling to be issued pursuant to the exercise
of their respective OD2 Options, OD2 Warrants and/or upon conversion of their
OD2 Convertible Notes). In aggregate these represent 23,923,470 OD2 Shares,
approximately 92.68 per cent. of the OD2 Shares. This means that immediately
following the launch of the Offer the acceptance condition set out in Section A
of Appendix I to this document will be satisfied and Loudeye will be entitled,
and intends, to apply the provisions of Sections 428-430F of the Companies Act
1985 and/or the provisions of Article 13 (Drag Along) of the Company's Articles
of Association compulsorily to acquire any outstanding OD2 Shares (including any
OD2 Shares issued following the date of the Offer).

BACKGROUND TO THE OFFER

Loudeye is an innovative business-to-business provider of services that
facilitates the distribution and promotion of digital media content to media &
entertainment, retail and enterprise customers. Loudeye's services enable its
customers to outsource the management and distribution of audio and video
digital media content over the Internet and on other digital distribution
platforms. Its technical infrastructure and back-end solutions, combined with
its proprietary applications, comprise an end-to-end solution, from basic
digital media services, such as the hosting, storage, encoding, management and
protection of media assets for content owners, to complex, fully-outsourced
digital media distribution and promotional services, such as private-labeled
digital music download stores and streaming Internet radio and music sample
services. Loudeye's solutions reduce the complexity and cost of internal
solutions, and enable its customers to provide branded digital media offerings
to their users while supporting a variety of digital media technologies and
consumer business models.

The acquisition supports Loudeye's commitment to global expansion by broadening
its delivery of end-to-end digital media solutions and services into new, key
geographic regions such as Europe and Australia. In addition, OD2 will provide a
platform and proven business-to-business technology to enhance Loudeye's Digital
Music Store offering. Loudeye will also seek to expand OD2's digital music
catalog, leveraging Loudeye's recently upgraded 4.5 million track commercial
archive of digital music.

MANAGEMENT AND EMPLOYEES

Loudeye has given assurances to the board of OD2 that the existing rights of OD2
employees will be safeguarded. In respect of the future, Loudeye will make
appropriate proposals for the directors and management of OD2 to participate in
Loudeye options consistent with the current Loudeye option plan.

THE OPTIONHOLDER ALTERNATIVE

An alternative to acceptance of the Offer for Employee Optionholders is being
proposed by Loudeye which Optionholders may wish to consider.

Employees exercising Employee Options and accepting the Offer will trigger an
income tax and employee's national insurance charge (as explained in the "United
Kingdom taxation" section of this letter (below)) which will be payable through
the PAYE system. Under the terms governing the Employee Options, Employee
Optionholders have agreed to indemnify the Company in respect of such
liabilities (including by way of deductions from salary and/or the sale of
shares). However, the Loudeye Shares which such employees will be issued upon
acceptance of the Offer will not be able to be sold in order to finance any such
income tax and national insurance contributions until such shares are registered
under the Securities Act or an exemption from the registration requirements of
the Securities Act is available, which is unlikely to happen before any such tax
becomes due.

                                       11
<PAGE>
The terms of the Optionholder Alternative are that Employee Optionholders who do
not exercise their Employee Options and accept the Offer may elect to exchange
their Employee Options for options over Loudeye Shares, in the form of the
substitution of the option agreement set out in Appendix VII to this document in
place of their existing option agreements. The principal difference between the
Employee Optionholders' existing option agreements and the agreement set out in
Appendix VII can be summarised as follows:

-     Exchanged Options will not lapse at the expiry of the Compulsory Sale
      Procedure and will remain exercisable for a period of up to ten years from
      the date of grant of the original OD2 Option (subject to the terms of the
      relevant Option Exchange Agreement and the rules of the Unapproved Plan,
      where applicable) whereas Employee Options which are not exercised as part
      of the Offer will lapse.

-     The Board of OD2 has determined that accelerated vesting of the Employee
      Options will occur so that the Exchanged Options will be fully vested and
      exercisable in accordance with the Rules of the Unapproved Plan and the
      terms of the Non-Executive Options.

-     Employee Optionholders will be required to meet a portion of the
      employer's national insurance contributions arising on the exercise or
      other dealing in the Exchanged Options. The employer's national insurance
      contributions with respect to any increase in value of a Loudeye Share
      following the grant of the Exchanged Option will be met by the Employee
      Optionholder. OD2 will continue to be responsible for an amount of
      employer's national insurance contributions equal to the amount of
      contributions that would have arisen had the Optionholder exercised his
      Employee Options at the fair market value at 21 June 2004 (with `fair
      market value' per OD2 Share for this purpose (as determined by the OD2
      Board) being 62.52p).

-     In the event of a sale of all or substantially all of Loudeye's assets, or
      a merger, consolidation or other capital reorganization of Loudeye with or
      into another corporation, the Exchanged Option may be assumed or replaced
      with an equivalent option, or in certain circumstances, with a cash
      incentive program, of the successor corporation or its affiliates. If the
      successor corporation does not agree to assume the Exchanged Options or to
      substitute an equivalent option, the Exchanged Options will lapse and
      terminate upon the consummation of the transaction. In addition, the
      Exchanged Options will lapse and terminate immediately prior to any
      dissolution or liquidation of Loudeye, unless otherwise determined by the
      Loudeye Board.

-     Employee Optionholders agree to cooperate with Loudeye to further amend
      the Exchanged Options to the extent Loudeye determines it is necessary or
      desirable in order to accommodate United States legal or tax
      considerations or to conform such Exchanged Option to the terms and
      conditions of Loudeye's existing stock option plan and option agreements,
      however, any amendment which adversely affects the rights of Employee
      Optionholders as a whole to a material extent requires the prior consent
      of Employee Optionholder(s) holding between them more than 50 per cent. of
      the outstanding Exchanged Options.

-     Loudeye Shares issuable upon exercise of the Exchanged Option will be
      subject to the transfer restrictions set forth in Part D of Appendix I of
      this document and will bear restrictive legends until they are registered.

Employee Optionholders who choose to exercise their OD2 Options and accept the
Offer will be entitled to receive the Initial Consideration, Deferred
Consideration and any Earn-Out Consideration, as described above. Employee
Optionholders electing to participate in the Optionholder Alternative should
note that they will have no right to participate in such consideration. Any
gains the Employee Optionholder makes on exercise of their Exchanged Options
will be dependent upon the price of a Loudeye Share at the time of exercise.

                                       12
<PAGE>

Employee Optionholders should consider carefully what action they should take in
relation to the Offer and the Optionholder Alternative and they should consult
an independent professional adviser if they are in any doubt. Employee
Optionholders are advised to read Appendix VII to this document.

The Optionholder Alternative is only available in respect of Employee Options.
Each of the OD2 Directors who hold Employee Options has irrevocably undertaken
to elect to participate in the Optionholder Alternative in respect of all of the
1,975,587 Employee Options which they hold in aggregate.

No further options will be issued under the OD2 Employee Share Option Plan
(other than Loudeye Shares issuable upon exercise of Exchanged Options).

UNITED KINGDOM TAXATION

The comments set out below summarise certain aspects of the UK taxation
treatment upon acceptance of the Offer and upon the exercise and lapse of
Options and the Optionholder Alternative, relating to Shareholders,
Optionholders, Warrantholders and Noteholders who are individuals resident and
ordinarily resident for tax purposes in the UK who hold their shares as an
investment. The comments are intended as a general guide only to certain aspects
of capital gains tax ("CGT"), stamp duty, income tax and national insurance
contributions, under current UK law and Inland Revenue practice. Accordingly,
the comments are not applicable to all Shareholders, Optionholders,
Warrantholders or Noteholders and they do not constitute advice to any
Shareholder, Optionholder, Warrantholder or Noteholder on his or her personal
tax position.

All Shareholders, Warrantholders, Noteholders and Optionholders should consult
their own tax advisers with respect to the tax consequences of the Offer and, if
applicable, the Optionholder Alternative.

(i)   EXERCISE OF OD2 OPTIONS

      A liability to income tax and employer's and employee's national insurance
      contributions will arise on the exercise of the OD2 Options.

      In respect of EMPLOYEE OPTIONS, income tax and employer's and employee's
      national insurance contributions will be payable on the gain arising on
      exercise of the OD2 Options (i.e. on the market value of the OD2 Shares at
      the date of exercise less the aggregate exercise price per OD2 Option of
      nil).

      In respect of options granted under the EMI PLAN, as the exercise price of
      such options is set at less than the market value of an OD2 Share at the
      date of grant, income tax and employer's and employee's national insurance
      contributions will be payable on the discounted element on exercise of the
      OD2 Options (i.e. on the market value of the OD2 Shares at the date of
      grant less the aggregate exercise price per OD2 Option of nil). In the
      event that the EMI options are exercised more than 40 days after the date
      upon which Loudeye acquires control of OD2, to the extent that they have
      not lapsed by that date, a 'disqualifying event' will occur for tax
      purposes, with the effect that CGT taper relief will cease to apply from
      the date of grant of the EMI options and any gains attributable to the
      increase in value of the OD2 Shares after the date of the disqualifying
      event will be treated as unapproved for tax purposes.

      OD2, as the Optionholders' employer, must account for the income tax and
      employer's and employee's national insurance contributions arising on
      exercise of the OD2 Options through the PAYE system. Under the rules
      governing the OD2 Options, the Optionholders have agreed to indemnify OD2
      in respect of any income tax and employee's national insurance
      contributions arising on exercise of the OD2 Options. This will include
      appointing OD2 as the Optionholders' agent and attorney for the sale of
      the appropriate number of Loudeye

                                       13
<PAGE>

      Shares and authorising payment to OD2 of the relevant amount out of the
      net proceeds of sale of such shares. Further tax charges may arise in the
      event that Optionholders fail to reimburse OD2 for the income tax and
      employee's national insurance contributions within 90 days of exercise of
      the OD2 Options.

      As it is possible that OD2 Shares acquired by the Optionholders upon
      exercise of their OD2 Options may be restricted securities for the
      purposes of the Income Tax (Earnings and Pensions) Act 2003, it is a term
      of the Offer that Optionholders enter into an election at the time of
      exercise declaring that the Optionholders wish to be taxed on the market
      value of the OD2 Shares as if they were not restricted securities. This
      prevents a further income tax charge arising when the OD2 Shares are sold
      and the generally more favourable CGT tax regime should apply. A form of
      election in the form set out in Schedule 4 to the Form of Acceptance and
      Election will be completed by Loudeye as attorney for the relevant
      Optionholder pursuant to the power granted in the Form. Further elections
      may also be necessary when OD2 Shares or Promissory Notes are exchanged
      for Loudeye Shares.

(ii)  ACCEPTANCE OF THE OFFER BY OPTIONHOLDERS

      Assuming that Optionholders have made the election referred to above, the
      comments set out in the paragraph below entitled 'Taxation on chargeable
      gains on OD2 Shares' will be relevant to Optionholders upon acceptance of
      the Offer.

(iii) WARRANTHOLDERS

      The tax treatment of Warrantholders will mirror the treatment of the
      Optionholders who accept the Offer if they have acquired their Warrants by
      reason of their employment and to the extent that they decide to exercise
      their Warrants to acquire OD2 Shares. It is also a term of the Offer that
      the Warrantholders enter into an election as required for the
      Optionholders who accept the Offer.

(iv)  LAPSE OF OD2 OPTIONS OR OD2 WARRANTS

      There will be no income or CGT consequences of the lapse of the OD2
      Options or OD2 Warrants, if Optionholders or Warrantholders choose not to
      accept the Offer.

(v)   OPTIONHOLDER ALTERNATIVE - EXCHANGE OF OD2 OPTIONS

      Where Employee Optionholders elect to exchange their Employee Options
      pursuant to the Optionholder Alternative, no tax liability should arise at
      the point of exchange.

      On exercise of the Exchanged Options, save as set out below, the tax
      treatment will follow the treatment of those Optionholders who exercise
      their OD2 Options (as explained under "(i) Exercise of OD2 Options" above)
      and references to OD2 Shares should be read as references to Loudeye
      Shares. Currently, OD2 is liable to pay employer's national insurance
      contributions on exercise of the Employee Options. OD2 will continue to be
      responsible for an amount of employer's national insurance contributions
      equal to the amount of contributions that would have arisen had the
      Optionholder exercised his Employee Options at the fair market value at 21
      June 2004 (with 'fair market value' per OD2 Share for this purpose (as
      determined by the OD2 Board) being 62.80p). Under the terms of the
      Optionholder Alternative, the Optionholders will be required to meet any
      employer's national insurance contributions arising on exercise of the
      Exchanged Options in respect of the increased value of the Loudeye Shares
      i.e. to the extent that the value of the Loudeye Shares on exercise
      exceeds the fair market value at 21 June 2004 (with 'fair market value'
      per OD2 Share for this purpose (as determined by the OD2 Board) being
      62.80p). The amount of employer's

                                       14
<PAGE>

      national insurance contributions paid by the Employee Optionholder should
      be deductible for income tax purposes.

      As it is possible that Loudeye Shares acquired by the Employee
      Optionholders upon exercise of their Exchanged Options may be restricted
      securities for the purpose of the Income Tax (Earnings and Pensions) Act
      2003, it is a term of the Optionholder Alternative that Employee
      Optionholders who accept the Optionholder Alternative enter into an
      election at the time of acceptance declaring that the Employee
      Optionholders wish to be taxed on the market value of the Loudeye Shares
      as if they were not restricted securities. This prevents a further income
      tax charge arising when the Loudeye Shares are sold and the generally more
      favourable CGT tax regime should apply. A form of election in the form set
      out in Schedule 4 of the Form of Acceptance and Election will be completed
      by Loudeye as attorney for the relevant Optionholder pursuant to the power
      granted in the Form.

(vi)  NOTEHOLDERS

      If the Noteholders elect to convert their OD2 Convertible Notes into OD2
      Shares an income tax charge will arise in respect of any interest due on
      such OD2 Convertible Notes up to the date of conversion. It is also a term
      of the Offer that the Noteholders who are employees of OD2 enter into an
      election as required for the Optionholders above. Following the exchange
      of OD2 Shares for Loudeye Shares, the comments in paragraph (vii) below
      will be relevant to the tax position of Noteholders.

(vii) TAXATION ON CHARGEABLE GAINS ON OD2 SHARES

      Subject to an exception noted in the next paragraph, Shareholders who are
      individuals will not be treated as making a disposal for CGT purposes to
      the extent that they receive Initial Loudeye Shares (being the Offer
      consideration referred to in paragraph 2(i) of the Loudeye Letter).
      Instead, the Initial Loudeye Shares will be treated as the same asset as
      the existing holding of shares in OD2.

      The exception is that any Shareholder who has claimed and retained the
      benefit of EIS deferral relief on their OD2 Shares cannot claim the
      benefit of this treatment. Such Shareholders will be deemed to make a gain
      (subject to personal circumstances) to the extent of the share exchange
      and the sale will also cause any EIS deferral relief to be recaptured.

      Shareholders who are individuals, and WHO DO NOT TAKE ADVANTAGE OF THE
      PROMISSORY NOTE ALTERNATIVE, will be treated as making a disposal for CGT
      purposes to the extent that they receive any cash consideration from
      Loudeye as part of the Initial Consideration or the Deferred
      Consideration. With regard to the Loudeye Shares that may be issued as
      part of the Initial Consideration as at 31st January 2005 (the "SECOND
      STAGE OF THE INITIAL CONSIDERATION") and the Deferred Consideration, it is
      possible that the Inland Revenue would treat the issue of these shares, so
      that there is no disposal for CGT purposes (in the same manner described
      in the first paragraph above). However, this treatment should not be
      relied upon as compared to the Promissory Note alternative (see below).

      With regard to CONTINGENT VALUE RIGHTS, if the Promissory Note alternative
      is not taken, a value will need to be brought into account for the
      Contingent Value Right at the point of completion of the sale and transfer
      of the relevant OD2 Shares to Loudeye, and will be taxed as part of the
      initial disposal. Any gain on the Earn-Out (over and above the amount
      already taxed) will be taxed as and when further Loudeye Shares are issued
      or cash received (at Loudeye's election). There is no basis upon which the
      Inland Revenue would treat the issue of these Shares in the same terms as
      the first paragraph above.

                                       15
<PAGE>

      Shareholders who are individuals, and WHO TAKE ADVANTAGE OF THE PROMISSORY
      NOTE ALTERNATIVE, will not be treated as making a disposal for CGT
      purposes to the extent that they receive the Second Stage of the Initial
      Consideration and the Deferred Consideration in the form of the Promissory
      Note. Instead, the Promissory Note will be treated as the same asset as
      the existing holding of OD2 Shares (as part of the process noted above)
      and will continue to be so treated if and to the extent that Loudeye
      elects to convert the Promissory Note into Loudeye Shares. A gain will
      potentially arise (subject to personal circumstances) at that point if
      Loudeye instead elects to redeem the Promissory Note for cash.

      With regard to the CONTINGENT VALUE RIGHTS, Shareholders who are
      individuals, and WHO TAKE ADVANTAGE OF THE PROMISSORY NOTE ALTERNATIVE,
      will not be treated as making a disposal for CGT purposes to the extent
      that they elect at box 5 on the Form of Acceptance and Election to receive
      Promissory Notes with respect to the EARN-OUT. In this case, such
      shareholders may treat the CONTINGENT VALUE RIGHT received under the Offer
      as the same asset as the existing holding of OD2 Shares (as part of the
      process noted above) and this treatment will continue whether Loudeye
      elects to satisfy any consideration payable under the Contingent Value
      Right by the issue of Loudeye Shares or a Promissory Note.

      In any of these cases, where Shareholders have not been treated as making
      a disposal for CGT, a gain will potentially arise (subject to personal
      circumstances) at the point that the Loudeye Shares or the Promissory Note
      are sold, redeemed or otherwise disposed of for CGT purposes.

      Taper relief may be available to reduce the gain at any point, at a rate
      depending upon the precise circumstances of an individual shareholder and
      the nature of the business of OD2 and Loudeye from time to time.
      Shareholders may care to note that the Series A Notes and the Series C
      Notes are expected to be "non Qualifying Corporate Bonds" for CGT purposes
      and that the Series B Notes are expected to be "Qualifying Corporate
      Bonds" for CGT purposes.

      In deciding whether to elect to take non-qualifying corporate bonds
      (Series C Notes) or qualifying corporate bonds (Series B Notes) in lieu of
      any cash consideration paid out under the Contingent Value Rights,
      shareholders should examine their own personal capital gains tax taper
      relief position. The taper relief rules are complex and specific advice
      should be sought. However, in general, non-qualifying corporate bonds will
      extend the qualifying ownership period for taper relief purposes until
      they are redeemed. Again, depending on the nature of the Loudeye business,
      this may lower the effective rate of capital gains tax payable by certain
      Shareholders. Purely by way of an illustration, Shareholders who are
      employed by OD2 and who have held their OD2 Shares for less than two years
      may wish to consider taking non-qualifying corporate bonds. This would
      extend their taper relief ownership period so that they may qualify for a
      lower rate of tax. However, for some Shareholders, taking non-qualifying
      corporate bonds may actually increase their effective rate of tax. Those
      shareholders may prefer to take qualifying corporate bonds. By taking
      qualifying corporate bonds, the qualifying ownership period stops at the
      date of issue (rather than at the date of redemption) and freezes the
      effective rate of tax. Again, by way of an illustration, Shareholders who
      will not be employed by OD2 following the sale of their OD2 Shares) may
      wish to consider taking qualifying corporate bonds. For these
      Shareholders, this should preserve a lower rate of tax compared to taking
      non-qualifying corporate bonds.

      Optionholders may wish to note the following. EMI Plan Optionholders'
      period of ownership for taper relief commenced on the date they acquired
      their Options. For holders of Employee Options the period of ownership
      starts to run from the date of exercise.

      As the Loudeye Shares acquired by Shareholders may be restricted
      securities for the purposes of the Income Tax (Earnings and Pensions) Act
      2003, it is a term of the Offer that Shareholders (if they are employees
      of OD2) enter into an election at the time of acquiring the

                                       16
<PAGE>

      Loudeye Shares, declaring that the Shareholders wish to be taxed on the
      market value of the Loudeye Shares as if they were not restricted
      securities. This prevents a further income tax charge arising when the
      Loudeye Shares are sold and the generally more favourable CGT tax regime
      should apply. A form of election in the form set out in Schedule 4 to the
      Form of Acceptance and Election will be completed by Loudeye as attorney
      for the relevant shareholder pursuant to the power granted in the form.
      Further elections may also be necessary when Loudeye Shares are issued
      upon redemption of Promissory Notes.

(viii) STAMP DUTY

      No stamp duty will be payable by the Shareholders as a result of accepting
      the Offer.

(ix)  INCOME TAX

      For shareholders who are individuals resident and ordinarily resident for
      tax purposes in the UK, interest on the Promissory Notes and dividends on
      the Loudeye Shares (if any) will in the first instance be subject to tax
      in the US and thereafter be subject to UK income tax (with credit for tax
      paid in the US). Payments of interest on the Promissory Notes or dividends
      on the Loudeye Shares may be subject to withholding tax in the US. In
      appropriate cases the US tax may be eliminated or reduced where an
      appropriate claim is made under the terms of the double taxation treaty
      between the UK and the US.

ANY SHAREHOLDER, OPTIONHOLDER, WARRANTHOLDER OR NOTEHOLDER WHO IS IN ANY DOUBT
ABOUT HIS OR HER OWN TAX POSITION AND/OR WHO IS SUBJECT TO TAXATION IN ANY
JURISDICTION OTHER THAN THE UK IS STRONGLY RECOMMENDED TO CONSULT HIS OR HER
INDEPENDENT PROFESSIONAL ADVISER IMMEDIATELY.

ACTION TO BE TAKEN

The procedure for acceptance of the Offer is set out on pages 28 to 30 of this
document, Appendix I and in the accompanying Form of Acceptance and Election. To
accept the Offer you must complete the Form of Acceptance and Election in
accordance with the instructions printed thereon and return it by post or by
hand, to CHRISTOPHER PIKE of OD2, BROADQUAY HOUSE, PRINCE STREET, BRISTOL BS1
4DJ as soon as possible, but in any event so as to be received no later than
3:00 pm on 22 July 2004.

The procedure for Optionholders to elect to participate in the Optionholder
Alternative is set out in paragraph 7(ii) of the Loudeye Letter and in the
accompanying Form of Acceptance and Election.

RECOMMENDATION

Your board, which has received advice from Broadview on the financial
implications of the Offer, considers the terms of the Offer to be fair. In
providing advice to the OD2 Directors, Broadview has relied upon the OD2
Directors' commercial assessment of the Offer. Accordingly, your directors
unanimously recommend that you accept the Offer as they intend to do in respect
of their own beneficial holdings of OD2 Shares (whether issued or falling to be
issued under OD2 Options (save to the extent Directors elect for tax reasons to
participate in the Optionholder Alternative), OD2 Warrants and/or OD2
Convertible Notes). OD2 Directors have irrevocably undertaken to accept the
Offer in respect of 11,641,887 OD2 Shares in aggregate, representing
approximately 40.33 per cent. of the fully diluted share capital of OD2.

                                       17
<PAGE>

Yours sincerely

/s/ Charles Grimsdale
________________________________
Charles Grimsdale
for and on behalf of
ON DEMAND DISTRIBUTION LIMITED

                                       18

<PAGE>

[LOUDEYE LOGO]

                                                       1130 Rainier Avenue South
                                                       Seattle, Washington 98144
                                                                             USA

                                                                    22 June 2004

To OD2 Shareholders, Optionholders, Warrantholders and Noteholders.

Dear Sir or Madam,

OFFER FOR OD2

On 22 June 2004, the board of Loudeye announced the terms of a private offer to
acquire all of the issued and to be issued ordinary share capital of OD2.

1.    INTRODUCTION

      This letter sets out the terms of an offer by Loudeye to acquire the
      entire issued and to be issued share capital of OD2.

      Your attention is drawn to the letter from Charles Grimsdale on pages 8 to
      18 of this document, from which you will see that the directors of OD2
      consider the terms and conditions of the Offer to be fair and unanimously
      recommend that you accept the Offer.

2.    THE OFFER FOR THE OD2 SHARES

      We hereby offer to acquire, on the terms and subject to the conditions set
      out or referred to in this document and in the Form of Acceptance and
      Election, all of the OD2 Shares in issue and to be issued on the following
      basis:

      FOR EVERY OD2 SHARE (and so in proportion for any other number of OD2
      Shares held), a person accepting the Offer will receive:

      (i)   INITIAL CONSIDERATION

            (a)   the issue of 0.4469 Loudeye Shares, PLUS

            (b)   on 31 January 2005, at Loudeye's option, either:

                  -     the payment of 18.12p in cash; or

                  -     the issue of such number of Loudeye Shares with an
                        aggregate Loudeye Share Price on 31st January 2005
                        (which shall be determined based on the 90 Trading Days
                        ended on (and including) 31 January 2005) equal to
                        18.12p; AND

      (ii)  DEFERRED CONSIDERATION

            19.04P, which shall be satisfied by:

            (a)   on 30 November 2004, at Loudeye's option, either:

                                       19
<PAGE>

                  -     the payment of 4.76p in cash; or

                  -     the issue of such number of Loudeye Shares with an
                        aggregate Loudeye Share Price on 30 November 2004 equal
                        to 4.76p; AND

            (b)   on 31 May 2005, at Loudeye's option, either:

                  -     the payment of 4.76p in cash; or

                  -     the issue of such number of Loudeye Shares with an
                        aggregate Loudeye Share Price on 31 May 2005 equal to
                        4.76p; AND

            (c)   on 30 November 2005, at Loudeye's option, either:

                  -     the payment of 9.52p in cash; or

                  -     the issue of such number of Loudeye Shares with an
                        aggregate Loudeye Share Price on 30 November 2005 equal
                        to 9.52p; AND

      (iii) EARN-OUT CONSIDERATION

            the issue of ONE (1) CONTINGENT VALUE RIGHT, having the rights
            described in Appendix II of this document.

      Fractions of Loudeye Shares will be rounded down to the nearest whole
      Loudeye Share and any fractional entitlements of accepting persons shall
      be ignored.

      Based on representations that have been made to Loudeye regarding the
      capitalisation of OD2, the payment of the consideration described above
      will not result in the issuance of more than 13,950,000 Loudeye Shares
      (including shares underlying the Exchanged Options) in connection with the
      Offer, the Compulsory Sale Procedure and the Optionholder Alternative.
      Loudeye will not issue more than 13,950,000 Loudeye Shares (including
      shares underlying the Exchanged Options), which amounts to approximately
      19.9 per cent. of the number of shares of Loudeye Common Stock outstanding
      as of the date of this Offer Document, in connection with the Offer, the
      Compulsory Sale Procedure and the Optionholder Alternative unless it
      obtains the approval of the holders of a majority of outstanding Loudeye
      Shares (excluding shares issued in connection with the Offer, the
      Compulsory Sale Procedure or the Optionholder Alternative) in accordance
      with NASDAQ requirements. Accordingly, Loudeye may elect to pay an amount
      of cash equal to the trading price of a Loudeye Share on the date of
      settlement multiplied by 0.4469 per OD2 Share in lieu of the issuance of
      Loudeye Shares described at paragraph (i)(a) above so as to ensure that
      such limitation is not exceeded. In addition, no further shares or options
      will be issued under the Unapproved Plan (other than Loudeye Shares
      issuable upon exercise of Exchanged Options).

      Persons accepting the Offer may elect to receive a Promissory Note in lieu
      of:

      -     the consideration referred to at paragraphs 2(i)(b) and 2(ii)(a-c)
            above; and

      -     any consideration which becomes payable under the Contingent Value
            Rights unless Loudeye elects to pay such consideration in the form
            of Loudeye Shares,

      in each case, in accordance with paragraph 4 of this letter.

      The right to receive any future Consideration payable by Loudeye as
      described above may not be transferred or assigned without the prior
      written consent of Loudeye.

                                       20
<PAGE>

      The Loudeye Shares to be issued pursuant to the Offer will be issued
      credited as fully paid and non-assessable and will rank pari passu in all
      respects with the issued and outstanding Loudeye Shares.

      Acceptances of the Offer should be dispatched as soon as possible, and in
      any event so as to be received no later than 3.00 p.m. on 22 July 2004.
      Your attention is drawn to paragraph 14 of this letter, which sets out the
      procedure for acceptance of the Offer, and to the conditions and further
      terms of the Offer set out in Appendix I, II, III, IV, V, VI and VII to
      this document and in the Form of Acceptance and Election.

      The OD2 Shares are to be acquired fully paid and free from all liens,
      equities, charges and encumbrances and other interests and together with
      all rights attaching to them, including without limitation, the right to
      receive and retain in full all dividends and other distributions declared,
      made or paid on or after 22 June, 2004.

3.    CONTINGENT VALUE RIGHTS

      Shareholders and Optionholders, Warrantholders and Noteholders (in respect
      of OD2 Shares which fall to be issued by OD2 upon the exercise of OD2
      Options, OD2 Warrants and upon the conversion of OD2 Convertible Notes)
      who accept the Offer or who are compelled to transfer their OD2 Shares
      pursuant to the Compulsory Sale Procedure will each be issued one
      Contingent Value Right in respect of each OD2 Share sold under the terms
      of the Offer. Each Contingent Value Right entitles the holder to the right
      to receive additional consideration for the sale of his OD2 Shares
      contingent upon the Company reaching certain financial performance targets
      in the future which are based on the gross profits and pre-tax profits or
      losses of the Group less a multiple of the Group's pre-tax losses in
      respect of four earn-out periods. The four earn-out periods in respect of
      which those targets will be applied, and the maximum aggregate value of
      consideration payable in respect of each of those periods, are as follows:

<TABLE>
<CAPTION>
    EARN-OUT PERIODS                AGGREGATE VALUE OF CONSIDERATION PAYABLE
<S>                              <C>
(a)  Six months ending 30        Up to (pound)1,250,000
     November 2004

(b)  12 months ending 31 May     Up to (pound)2,500,000 (less any amount paid in respect of the first
     2005                        earn-out period)

(c)  18 months ending 30         Up to (pound)5,000,000 (less any amount paid
     November 2005               in respect of the first  and second earn-out periods)

(d)  30 months ending 30         Up to (pound)5,000,000
     November 2006
</TABLE>

      The maximum amount of additional consideration payable by Loudeye in
      respect of the Contingent Value Rights is (pound)10 million.

      If the specified financial performance targets are met by the Company,
      Loudeye will make payments of additional consideration to holders of
      Contingent Value Rights, to be satisfied in cash or, at the election of
      Loudeye, by the issue of further Loudeye Shares. The Contingent Value
      Rights are personal to the holder and are not transferable, assignable or
      chargeable. Any purported transfer, assignment, disposal or dealing with
      the rights attaching to the Contingent Value Rights will render the
      Contingent Value Right void.

                                       21
<PAGE>

      Details of the Contingent Value Rights (including the financial
      performance targets, the basis on which the gross profits and pre-tax
      profits or losses of the Group are to be calculated, and the mechanics of
      payment of any additional consideration) are set out in full in Appendix
      II.

4.    PROMISSORY NOTES

      A holder of OD2 Shares accepting the Offer (an "ACCEPTING HOLDER") shall
      be entitled to elect at the time of acceptance that in lieu (and in full
      satisfaction) of:

      (i)   the consideration referred to in paragraphs 2(i)(b) and 2(ii)(a)-(c)
            of this letter, such Accepting Holder be issued with a Series A
            Note; and

      (ii)  any consideration which becomes payable under the Contingent Value
            Rights unless Loudeye elects to pay such consideration in the form
            of Loudeye Shares (as specified in Appendix II), such Accepting
            Holder be issued with either a Series B Note or a Series C Note, at
            the election of the Accepting Holder.

      Series A Notes shall be issued with a principal amount which is less than
      the aggregate value of the consideration payable to the relevant Accepting
      Holder under paragraphs 2(i)(b) and 2(ii)(a-c) of this letter. However,
      the Series A Notes will carry interest such that the principal amount to
      be redeemed upon each redemption date plus the interest accrued on that
      principal amount shall be equal to the aggregate value of consideration
      payable under each of paragraphs 2(i)(b), 2(ii)(a), 2(ii)(b) and 2(ii)(c),
      as appropriate.

      Series A Notes shall be issued by Loudeye to electing Accepting Holders at
      the same time as Initial Loudeye Shares are issued to Accepting Holders in
      accordance with paragraph 15 below. Series B Notes and Series C Notes
      shall be issued to electing Accepting Holders by Loudeye at the same time
      as consideration, if any, in the form of further Loudeye Shares or cash is
      issued or paid in accordance with Appendix II.

      An Accepting Holder must make such an election by completing either or
      both of boxes 5 and 9 in the Form of Acceptance and Election.

      Summary terms of the Promissory Notes are set out in Appendix IV to this
      document and copies of the instruments constituting the Promissory Notes
      will be available for inspection during the Offer Period at the address
      specified in Part D of Appendix V.

      No Accepting Holder shall be entitled to receive Promissory Notes pursuant
      to this paragraph 4 with respect to any payment to be satisfied by the
      issue of Loudeye Shares under paragraph 2(i)(a) of the Offer. No Accepting
      Holder shall be entitled to receive any Promissory Notes unless he
      provides to Loudeye the warranties set forth in paragraph 9 of the Form of
      Acceptance and Election.

5.    COMPULSORY SALE PROCEDURES

      When sufficient acceptances are received and/or sufficient OD2 Shares are
      otherwise acquired, Loudeye intends to apply the provisions of Sections
      428-430F of the Companies Act 1985 and/or the provisions of Article 13
      (Drag Along) of the Company's Articles of Association to acquire any
      outstanding OD2 Shares (including any OD2 Shares issued following the date
      of the Offer).

      At the date of this Offer there are no shares in or debentures of OD2 (or,
      save for the irrevocable undertakings referred to at paragraph 6 below,
      investments falling within paragraphs 17, 18 or 21 of Schedule 1 of the
      Financial Services and Markets Act 2000

                                       22
<PAGE>

      (Financial Promotion) Order 2001 relating to shares in or debentures of
      OD2) which are held by or on behalf of Loudeye.

6.    UNDERTAKINGS TO ACCEPT THE OFFER

      Irrevocable undertakings to accept the Offer have been received from the
      OD2 Directors and all major Shareholders in respect of their holdings of
      OD2 Shares. In aggregate these represent 23,923,470 OD2 Shares,
      approximately 92.68 per cent of the fully diluted share capital of OD2
      (after deducting OD2 Options in respect of which irrevocable undertakings
      to participate in the Optionholder Alternative have been received).

7.    OPTIONHOLDERS

      (i)   GENERAL

            Under the rules of the Unapproved Plan, the EMI Plan and the
            Non-Executive Options, an Optionholder shall be entitled to exercise
            his or her OD2 Options on (or immediately prior to) the occurrence
            of a sale, even though such exercise occurs before the normal
            vesting date.

            The courses of action available to Optionholders are (i) to exercise
            their OD2 Options to acquire OD2 Shares and then immediately accept
            the Offer in respect of such OD2 Shares (as set out in paragraph 14
            below), (ii) to take no action, in which case the OD2 Options will
            lapse and cease to be capable of exercise in accordance with the
            rules of the relevant plan or arrangement; or (iii) in respect of
            their Employee Options, elect to participate in the Optionholder
            Alternative (see (ii) below), in which case their options over OD2
            Shares will be amended and exchanged for options over Loudeye
            Shares.

            Optionholders may exercise their OD2 Options without accepting the
            Offer, but Loudeye will be entitled compulsorily to acquire the OD2
            Shares acquired on exercise of the OD2 Options as described in
            paragraph 5 above.

      (ii)  OPTIONHOLDER ALTERNATIVE

            An alternative to acceptance of the Offer for Employee Optionholders
            is being proposed by Loudeye which Optionholders may wish to
            consider. Each of the OD2 Directors who hold Employee Options has
            irrevocably undertaken to elect to participate in the Optionholder
            Alternative in respect of all of the 1,975,587 Employee Options
            which they hold in aggregate.

            Employees exercising Employee Options and accepting the Offer will
            trigger an income tax and employee's national insurance charge (as
            explained in the "United Kingdom taxation" section of the OD2
            Letter) which will be payable through the PAYE system. Under the
            terms governing the Employee Options, Employee Optionholders have
            agreed to indemnify the Company in respect of such liabilities
            (including by way of deductions from salary and/or the sale of
            shares). However, the Loudeye Shares which such employees will be
            issued upon acceptance of the Offer will not be able to be sold in
            order to finance any such income tax and national insurance charges
            until such shares are registered under the Securities Act or an
            exemption from the registration requirements of the Securities Act
            is available, which is unlikely to happen before any such tax
            becomes due.

            The terms of the Optionholder Alternative are that Employee
            Optionholders who do not exercise their Employee Options and accept
            the Offer may elect to exchange their

                                       23
<PAGE>

            Employee Options for options over Loudeye Shares (the "EXCHANGED
            OPTIONS"), in the form of the option agreement set out in Appendix
            VII to this document in place of their existing option agreements.
            The principal difference between Employee Optionholder's existing
            option agreements and the agreement set out in Appendix VII can be
            summarised as follows:

            -     Exchanged Options will not lapse at the expiry of the
                  Compulsory Sale Procedure and will remain exercisable for a
                  period of up to ten years from the date of grant of the
                  original OD2 Option (subject to the terms of the relevant
                  Option Exchange Agreement and the rules of the Unapproved
                  Plan, where applicable) whereas Employee Options which are not
                  exercised as part of the Offer will lapse.

            -     The Board of OD2 has determined that accelerated vesting of
                  the Employee Options will occur so that the Exchanged Options
                  will be fully vested and exercisable in accordance with the
                  Rules of the Unapproved Plan/the terms of the Non-Executive
                  Options.

            -     Employee Optionholders will be required to meet a proportion
                  of the employer's national insurance contributions arising on
                  the exercise or other dealing in the Exchanged Options. The
                  employer's national insurance contributions on any increase in
                  value of a Loudeye Share following the grant of the Exchanged
                  Option will be met by the Employee Optionholder. OD2 will
                  continue to be responsible for an amount of employer's
                  national insurance contributions equal to the amount of
                  contributions that would have arisen had the Optionholder
                  exercised his Employee Options at the fair market value at 21
                  June 2004 (with 'fair market value' per OD2 Share for this
                  purpose (as determined by the OD2 Board) being 62.80p).

            -     In the event of a sale of all or substantially all of
                  Loudeye's assets, or a merger, consolidation or other capital
                  reorganization of Loudeye with or into another corporation,
                  the Exchanged Option may be assumed or replaced with an
                  equivalent option, or in certain circumstances, with a cash
                  incentive program, of the successor corporation or its
                  affiliates. If the successor corporation does not agree to
                  assume the Exchanged Options or to substitute an equivalent
                  option, the Exchanged Options will lapse and terminate upon
                  the consummation of the transaction. In addition, the
                  Exchanged Options will lapse and terminate immediately prior
                  to any dissolution or liquidation of Loudeye, unless otherwise
                  determined by the Loudeye Board.

            -     Employee Optionholders agree to cooperate with Loudeye to
                  further amend the Exchanged Options to the extent Loudeye
                  determines it is necessary or desirable in order to
                  accommodate United States legal or tax considerations or to
                  conform such Exchanged Option to the terms and conditions of
                  Loudeye's existing stock option plan and option agreements,
                  however, any amendment which adversely affects the rights of
                  Employee Optionholders as a whole to a material extent
                  requires the prior consent of Employee Optionholder(s) holding
                  between them more than 50 per cent. of the outstanding
                  Exchanged Options.

            -     Loudeye Shares issuable upon exercise of the Exchanged Option
                  will be subject to the transfer restrictions set forth in Part
                  D of Appendix I of this document and will bear restrictive
                  legends until they are registered.

                                       24
<PAGE>

            Employee Optionholders who choose to exercise their OD2 Options and
            accept the Offer will be entitled to receive the Initial
            Consideration, Deferred Consideration and any Earn Out
            Consideration, as described above. Employee Optionholders electing
            to participate in the Optionholder Alternative should note that they
            will have no right to participate in such consideration. Any gains
            the Employee Optionholder makes on exercise of their Exchanged
            Options will be dependent upon the price of a Loudeye Share at the
            time of exercise.

            An election to participate in the Optionholder Alternative shall
            constitute acceptance of the terms of Appendix VII of this document.

            In addition to agreeing to these amendments, Optionholders electing
            to participate in the Optionholder Alternative are required to
            complete a national insurance joint election in the form set out in
            Schedule 5 (for holders of options under the Unapproved Plan) or
            Schedule 6 (for holders of Non-Executive Options) to the Form of
            Acceptance and Election. Completion of the joint election means that
            the electing Optionholder agrees to become liable to pay that part
            of employer's secondary national insurance contributions equal to
            the amount of contributions that would have arisen had the
            Optionholder exercised his Employee Options at the fair market value
            at 21 June 2004 (with 'fair market value' per OD2 Share for this
            purpose (as determined by the OD2 Board) being 62.80p) ("EMPLOYER'S
            NIC LIABILITY"). Employer's NIC Liability which arises can be
            recovered from the Optionholder on default in a number of ways, at
            OD2's election, including by deduction from salary, by withholding
            the issue of Loudeye Shares upon the exercise of the Exchanged
            Options or by requiring payment contemporaneous with the exercise of
            the Exchanged Options. Optionholders should read carefully the terms
            of the joint election.

            Under the Optionholder Alternative each option over an OD2 Share
            will be substituted for an option over 0.8706 Loudeye Shares. This
            ratio has been determined by the OD2 Board and represents their view
            of the relative values of an OD2 Share under the Offer and a Loudeye
            Share at the date the Offer is made.

            Employee Optionholders electing to participate in the Optionholder
            Alternative should note that they will have no right to participate
            in any Initial Consideration, Deferred Consideration or Earn-Out
            Consideration as they would have if they exercised their Employee
            Options and accepted the Offer.

            The Optionholder Alternative shall cease to be available after 3.00
            p.m. on the Final Acceptance Date.

            No further options will be issued under the Unapproved Plan (other
            than Loudeye Shares issuable upon exercise of Exchanged Options).

            The Transfer Restrictions set out in Part D of Appendix I of this
            document apply to the Exchanged Options and any Loudeye Shares
            issued upon exercise of the Exchanged Options.

      (iii) PROCEDURE FOR PARTICIPATING IN OPTIONHOLDER ALTERNATIVE

            Guidance on what you need to do to participate in the Optionholder
            Alternative is set out at paragraph 14(b) below.

                                       25
<PAGE>

8.    REGISTRATION RIGHTS

      The Registration Rights Agreement set out in Appendix III contains an
      agreement by Loudeye to use its commercially reasonable best efforts to
      cause a re-sale registration statement covering:

      (i)   the Initial Loudeye Shares to be filed with the Securities Exchange
            Commission on or prior to the date that is the later to occur of (A)
            45 days following the date of this Offer; (B) 15 days following
            Completion; and (C) ten Business Days following the receipt by
            Loudeye of all audited and interim financial statements and pro
            forma financial information of OD2 (in final agreed form) required
            to be filed by Loudeye under a Form 8-K;

      (ii)  any Loudeye Shares issued under paragraph 2(i)(b) of the Offer
            (above), to be filed with the Securities Exchange Commission no
            later than February 15, 2005;

      (iii) any Loudeye Shares issued under paragraph 2(ii) (a-c) of the Offer
            (above) to be filed with the Securities Exchange Commission within
            45 days of the issue of any such Loudeye Shares; and

      (iv)  any Further Loudeye Shares to be filed with the Securities Exchange
            Commission within 60 days of the issue of any such Further Loudeye
            Shares.

      Certain selling restrictions and the terms of the Registration Rights
      described above are summarised in Parts D and E of Appendix I to this
      document and the Registration Rights Agreement is set out in Appendix III.
      Acceptance of the Offer shall constitute acceptance of the terms of the
      Registration Rights Agreement.

9.    INFORMATION ON LOUDEYE

      Loudeye is an innovative business-to-business provider of services that
      facilitates the distribution and promotion of digital media content to
      media & entertainment, retail and enterprise customers. Loudeye's services
      enable its customers to outsource the management and distribution of audio
      and video digital media content over the Internet and on other digital
      distribution platforms. Its technical infrastructure and back-end
      solutions, combined with its proprietary applications, comprise an
      end-to-end solution, from basic digital media services, such as the
      hosting, storage, encoding, management and protection of media assets for
      content owners, to complex, fully-outsourced digital media distribution
      and promotional services, such as private-labeled digital music download
      stores and streaming Internet radio and music sample services. Loudeye's
      solutions reduce the complexity and cost of internal solutions, and enable
      its customers to provide branded digital media offerings to their users
      while supporting a variety of digital media technologies and consumer
      business models.

      Loudeye's Common Stock trades through the Nasdaq SmallCap Market under the
      symbol "LOUD." Loudeye's principal executive offices are located at 1130
      Rainier Avenue South, Seattle, WA 98144 and its Internet site is located
      at www.loudeye.com.

      Loudeye is a reporting company and files annual, quarterly and current
      reports, proxy statements and other information with the US Securities
      Exchange Commission (the "SEC"). You can request copies of these documents
      by writing to the SEC and paying a fee for the copying cost. Loudeye's SEC
      filings are also available at the SEC's website at "http:\\www.sec.gov."
      Loudeye also makes available through its website (www.loudeye.com) free of
      charge all of its annual, quarterly and current reports as soon as
      reasonably practicable after it files them electronically with, or
      furnishes them to, the SEC.

                                       26
<PAGE>

      Further information regarding Loudeye is set out or referred to in
      Appendix V (Further Information).

10.   INFORMATION ON LOUDEYE COMMON STOCK

      The holders of Loudeye common stock are entitled to one vote per share on
      all matters to be voted on by the stockholders. Subject to preferences
      that may be applicable to any outstanding preferred stock, the holders of
      common stock are entitled to receive ratably such dividends, if any, as
      may be declared from time to time by the board of directors of Loudeye out
      of funds legally available for that purpose. To date Loudeye has not
      declared any dividends on its common stock. In the event of a liquidation,
      dissolution or winding up of Loudeye, the holders of common stock are
      entitled to share ratably in all assets remaining after payment of
      liabilities, subject to prior distribution rights of preferred stock, if
      any, then outstanding. The common stock has no preemptive or conversion
      rights or other subscription rights. There are no redemption or sinking
      fund provisions applicable to the common stock.

      The closing price of a Loudeye Share on NASDAQ on the first Trading Day in
      each month in 2004 up to and including June 2004 is set out in the
      following table:

<TABLE>
<CAPTION>
     DATE                PRICE IN US$
<C>                      <C>
2 January 2004             $2.07
2 February 2004            $2.25
1 March 2004               $2.35
1 April 2004               $1.94
3 May 2004                 $1.99
1 June 2004                $1.73
</TABLE>

      Loudeye will not issue more than 13,950,000 Loudeye Shares (which amounts
      to approximately 19.9 per cent. of the number of shares of Loudeye Common
      Stock outstanding as of the date of this Offer Document) in connection
      with the Offer, the Compulsory Sales Procedure and the Optionholder
      Alternative unless it obtains the approval of the holders of a majority of
      outstanding Loudeye Shares in accordance with NASDAQ requirements. To the
      extent required by NASDAQ rules, the votes of holders of Initial Loudeye
      Shares issued in connection with the Offer, the Compulsory Sale Procedure
      or the Optionholder Alternative will not be counted (with respect to such
      Initial Loudeye Shares) to approve or disapprove the issuance of
      additional Loudeye Shares as a means of paying any additional
      consideration that Loudeye may be required to pay in connection with the
      Offer or the Compulsory Sale Procedure. If such approval is not obtained,
      any obligation of Loudeye under the Offer to pay further consideration
      will be satisfied in cash (with persons accepting the Offer being able to
      take Promissory Notes in lieu of cash at their election (see paragraph 4
      of this letter)). In addition, no further shares or options will be issued
      under the Unapproved Plan (other than Loudeye Shares issuable upon
      exercise of Exchanged Options).

11.   LOUDEYE DIVIDEND POLICY

      Loudeye currently intends to retain future earnings to finance its growth
      and development and therefore does not anticipate paying any cash
      dividends in the foreseeable future. Payment of any future dividends will
      depend upon the future earnings and capital requirements of Loudeye and
      other factors which the Loudeye Board of Directors considers appropriate.

12.   REASONS FOR THE OFFER

      The acquisition supports Loudeye's commitment to global expansion by
      broadening its delivery of end-to-end digital media solutions and services
      into new, key geographic regions such as Europe and Australia. In
      addition, OD2 will provide a platform and proven business-

                                       27
<PAGE>

      to-business technology to enhance Loudeye's Digital Music Store offering.
      Loudeye will also seek to expand OD2's digital music catalog, leveraging
      Loudeye's recently upgraded 4.5 million track commercial archive of
      digital music.

13.   DIRECTORS, MANAGEMENT AND EMPLOYEES

      Loudeye has given assurances to the board of OD2 that the existing rights
      of OD2 employees will be safeguarded. In respect of the future, Loudeye
      will make proposals for appropriate directors and management of OD2 to
      participate in Loudeye options consistent with the current Loudeye option
      plan.

14.   PROCEDURE FOR ACCEPTANCE OF THE OFFER AND PARTICIPATION IN THE
      OPTIONHOLDER ALTERNATIVE

      THIS SECTION SHOULD BE READ TOGETHER WITH THE NOTES ON THE FORM OF
      ACCEPTANCE AND ELECTION.

      (a)   TO ACCEPT THE OFFER

            To accept the Offer you should complete Boxes 1 and 3 and sign Box 2
            of the Form of Acceptance and Election in accordance with the
            instructions printed on it.

            If you are an OPTIONHOLDER you will need to exercise your OD2
            Options to acquire OD2 Shares which will then be acquired by Loudeye
            under the Offer. You may do this by:

            -     completing Box 6 of the Form of Acceptance and Election;

            -     completing the exercise notice set out in schedule 1 of the
                  Form of Acceptance and Election; and

            -     including with the completed Form a cheque made payable to On
                  Demand Distribution Limited in respect of 10p as payment of
                  the nominal value of one OD2 Share.

            If you are a WARRANTHOLDER you will need to exercise your OD2
            Warrants to acquire OD2 Shares which will then be acquired by
            Loudeye under the Offer. You may do this by:

            -     completing Box 9 of the Form of Acceptance and Election;

            -     completing the subscription notice set out in schedule 3 of
                  the Form of Acceptance and Election; and

            -     including with the completed Form a cheque made payable to On
                  Demand Distribution Limited in respect of all subscription
                  monies payable upon exercise of your OD2 Warrants.

            If you are a NOTEHOLDER you will need to convert your OD2
            Convertible Notes into OD2 Shares which will then be acquired by
            Loudeye under the Offer. You may do this by:

            -     completing Box 8 of the Form of Acceptance and Election; and

            -     completing the conversion notice set out in schedule 2 of the
                  Form of Acceptance and Election;

            OD2 Options and OD2 Warrants which are not exercised will, by their
            terms, lapse and cease to be capable of exercise.

                                       28
<PAGE>

      (b)   TO PARTICIPATE IN THE OPTIONHOLDER ALTERNATIVE

            Optionholders electing to participate in the OPTIONHOLDER
            ALTERNATIVE can do this by:

            -     completing box 7 of the Form of Acceptance and Election; and

            -     completing the National Insurance Joint Election at schedule 5
                  or schedule 6 of the Form of Acceptance and Election.

      (c)   RETURN OF FORM OF ACCEPTANCE AND ELECTION

            TO ACCEPT THE OFFER OR ELECT TO PARTICIPATE IN THE OPTIONHOLDER
            ALTERNATIVE, THE FORM OF ACCEPTANCE AND ELECTION MUST BE COMPLETED
            AND RETURNED. The completed Form of Acceptance and Election,
            together with, in the case of an acceptance of the Offer, your
            certificate(s) for your OD2 Shares, OD2 Options, OD2 Warrants or OD2
            Convertible Notes and/or other documents(s) of title (or indemnity
            for lost certificate in a form approved by Loudeye), exercise
            notices (as appropriate) and subscription monies (as required); and,
            in the case of the Optionholder Alternative, the National Insurance
            Joint Election SHOULD BE RETURNED BY POST OR BY HAND TO CHRISTOPHER
            PIKE OF OD2, BROADQUAY HOUSE, PRINCE STREET, BRISTOL, BS1 4DJ IN
            EACH CASE AS SOON AS POSSIBLE BUT IN ANY EVENT SO AS TO BE RECEIVED
            NOT LATER THAN 3.00 PM ON 22 JULY, 2004. No acknowledgment of
            receipt of documents will be given. The instructions printed on the
            Form of Acceptance and Election shall be deemed to form part of the
            terms of the Offer.

      (d)   CERTIFICATES NOT READILY AVAILABLE OR LOST

            If your certificate(s) and/or other document(s) of title in respect
            of OD2 Shares, OD2 Options, OD2 Warrants or OD2 Convertible Notes
            is/are not readily available or is/are lost, the Form of Acceptance
            and Election should nevertheless be completed, signed and RETURNED
            AS STATED ABOVE SO AS TO ARRIVE NOT LATER THAN 3.00 PM ON 22 JULY,
            2004 together with any certificate(s) and/or other document(s) of
            title that you have available, accompanied by an indemnity for lost
            certificate in a form approved by Loudeye or a letter stating, that
            the balance will follow or that you have lost one or more of your
            certificate(s) and/or documents(s) of title. You should then arrange
            for the relevant certificate(s) and/or other document(s) of title to
            be forwarded as soon as possible. No acknowledgment of receipt of
            documents will be given. In the case of loss (unless the Form of
            Acceptance and Election is accompanied by an indemnity for lost
            certificate in a form approved by Loudeye), you should write as soon
            as possible to OD2's Company Secretary at OD2 for a letter of
            indemnity for lost certificate(s) and/or other document(s) of title
            which, when completed in accordance with the instructions given,
            should be returned to Christopher Pike as set out in paragraph (b)
            above. Your attention is drawn to paragraph (e) below regarding
            issuance of consideration in circumstances where certificates and/or
            other document(s) of title (or an indemnity for lost certificate in
            a form approved by Loudeye) do not accompany a Form of Acceptance
            and Election.

                                       29
<PAGE>

      (e)   VALIDITY OF ACCEPTANCES

            Loudeye reserves the right to treat as valid any acceptance of the
            Offer which is not entirely in order or (as applicable) the relevant
            certificate(s) and/or other document(s) of title (or an indemnity in
            respect of lost certificates in a form approved by Loudeye). In that
            event, no issuance of any consideration under the Offer will be made
            until the relevant certificate(s) and/or other document(s) of title
            or indemnity satisfactory to Loudeye have been received.

            If you are in any doubt as to the procedure for acceptance, please
            contact Christopher Pike, (telephone number +44 (0) 117 905 8974) at
            OD2, BroadQuay House, Prince Street, Bristol BS1 4DJ.

      (e)   TAX

            Any Shareholder, Optionholder, Warrantholder or Noteholder who is in
            any doubt about his or her own tax position and/or who is subject to
            taxation in any jurisdiction other than the UK is strongly
            recommended to consult his or her independent professional adviser
            immediately and prior to acceptance of the Offer or the Optionholder
            Alternative. The limited tax information contained in the letter
            from OD2 is not provided by Loudeye or its advisors and has been
            provided by the advisor to certain selling shareholders. Loudeye is
            not providing any advice or assurance in relation to the tax
            position of any person accepting the Offer or the Optionholder
            Alternative.

15.   SETTLEMENT

      Subject to the Offer becoming or being declared unconditional:

      (i)   the issue of any Initial Loudeye Shares or Series A Notes to which
            any Person is entitled to be issued under the Offer will be effected
            within 7 days of the date of the Offer for Shareholders,
            Optionholders, Warrantholders and Noteholders in respect of whom
            valid acceptances of the Offer have been received within 5 days of
            the date of the Offer. For all other acceptances the issue of any
            Initial Loudeye Shares or Series A Notes to which any Person is
            entitled to be issued under the Offer will be effected within 14
            days of the Final Acceptance Date or at such earlier time as Loudeye
            may determine. Definitive certificates for the appropriate number of
            Loudeye Shares and (if applicable) Series A Notes will be sent to
            validly accepting Shareholders, Optionholders, Warrantholders or
            Noteholders (as appropriate) or their appointed agents;

      (ii)  the issue of any Loudeye Shares or the payment of any cash which any
            Person who has not elected to receive Series A Notes is entitled to
            be issued or paid under paragraph 2(i)(b) or 2(ii)(a-c) of the Offer
            (above) will be effected within 14 days of the date upon which such
            shares or cash becomes due. Definitive stock certificates for the
            appropriate number of Loudeye Shares will be sent to validly
            accepting Shareholders, Optionholders, Warrantholders or Noteholders
            (as appropriate) or their appointed agents; and

      (iii) the issue of any Further Loudeye Shares, Series B Notes or Series C
            Notes or the payment of any cash which any Person is entitled to be
            issued or paid under the Contingent Value Rights will be effected in
            accordance with the terms of Appendix II.

                                       30
<PAGE>

      In the event that Loudeye elects to satisfy any amount due under paragraph
      2(i)(b), any Deferred Consideration or any Earn-Out Consideration by cash
      and fails to make payment to the relevant Person within 30 days of the
      date upon which such cash payment becomes payable in accordance with this
      paragraph 15, interest at a rate equal to 2 per cent. above the base rate
      of NatWest plc from time to time shall accrue on the overdue amount from
      (and including) the date upon which payment was due to be made by Loudeye
      until (but excluding) the date upon which payment is made.

      If the Offer does not become unconditional or lapses, certificates and/or
      other documents of title (or any indemnity for lost certificate which has
      been provided) will be returned by post, within 14 days of the Offer being
      withdrawn, or lapsing, to the person or agent whose name and address is
      set out in Box 3 on the relevant Form of Acceptance and Election or, if
      none is set out, to the first-named holder at his registered address.

      All communications, notices, certificates, documents of title (or
      indemnities for lost certificates), and remittances to be delivered by or
      sent to or from Shareholders, Optionholders, Warrantholders or Noteholders
      (as appropriate) (or their designated agent(s)) will be delivered by or
      sent to or from them (or their designated agent(s)) at their risk.

16.   FURTHER INFORMATION

      Your attention is driven to the further information in Appendix I, II,
      III, IV, V, VI and VII which form part of this document.

Yours faithfully,

/s/ Jeffrey M. Cavins
_______________________
Jeffrey M. Cavins
for and on behalf of
LOUDEYE CORP.

                                       31
<PAGE>

                                   APPENDIX I

                    CONDITIONS AND FURTHER TERMS OF THE OFFER

PART A: CONDITIONS OF THE OFFER

The Offer will be subject to the condition that valid acceptances must have been
received by 3.00 p.m. on 24 June 2004 in respect of not less than 90 per cent.
of the OD2 Shares to which the Offer relates, and for this purpose:

(i)   the expression "OD2 Shares to which the Offer relates" shall be construed
      in accordance with sections 428 to 430F of the Companies Act 1985; and

(ii)  shares which have been unconditionally allotted shall be deemed to carry
      the voting rights which they will carry upon issue.

The Purchaser reserves the right to waive, in whole or in part, the condition
set out above. The Purchaser shall be under no obligation to waive or treat as
satisfied the above condition by a date earlier than the latest date specified
above for the satisfaction thereof.

PART B: FURTHER TERMS OF THE OFFER

The following further terms apply to the Offer. Except where the context
otherwise requires, any reference in Parts B or C of this Appendix I and in the
Form of Acceptance and Election:

(i)   to the "Offer", shall include any revision, variation or renewal thereof
      or extension thereto;

(ii)  to the "Offer becoming effective" and to the "Offer becoming
      unconditional", means the condition to the Offer becoming or being
      declared satisfied or waived;

(iii) to "acceptances of the Offer", shall include deemed acceptances of the
      Offer; and

(iv)  to the Offer Document, shall mean this document and any other document
      containing the Offer.

1.    ACCEPTANCE PERIOD

      (a)   The Offer will be open for acceptance until 3.00 pm on 22 July 2004,
            or such later time as the Purchaser may determine, being not later
            than 31 August 2004. Notwithstanding the foregoing, if the Offer
            becomes unconditional it will remain open for acceptance until
            further notice and at least 14 days' notice will be given before it
            is closed.

      (b)   Acceptances shall be irrevocable.

      (c)   The Purchaser may extend the Final Acceptance Date to any later time
            and/or date to any time up to 3.00 pm on the date falling 10 weeks
            following the date of the Offer. Acceptances of the Offer received
            prior to any such extension shall be treated as an acceptance of the
            Offer as so extended. The Purchaser shall notify all persons to whom
            this Offer Document has been sent of any such extension.

2.    GENERAL

      (a)   The Offer will lapse unless the condition has been fulfilled or
            waived by 24 June 2004. If the Offer lapses for any reason, the
            Offer shall cease to be capable of further

                                       32
<PAGE>

            acceptance and the Purchaser and Shareholders, Optionholders,
            Warrantholders and Noteholders shall cease to be bound by prior
            acceptances.

      (b)   The terms, provisions, instructions and authorities contained in or
            deemed to be incorporated in the Form of Acceptance and Election
            constitute part of the terms of the Offer. Words and expressions
            defined in this document will have the same meanings when used in
            the Form of Acceptance and Election unless the context otherwise
            requires.

      (c)   The Offer and all acceptances thereof or pursuant thereto and the
            relevant Form of Acceptance and Election and all contracts made
            pursuant thereto and action taken or made or deemed to be taken or
            made under any of the foregoing shall be governed by and construed
            in accordance with English law save that the Registration Rights
            Agreement set out in Appendix III of this document shall be governed
            by and enforced in accordance with the internal laws of the State of
            Delaware. Execution by or on behalf of a Shareholder, Optionholder,
            Warrantholder or Noteholder of a Form of Acceptance and Election
            will constitute his submission, in relation to all matters arising
            out of or in connection with the Offer and the Form of Acceptance
            and Election, to the jurisdiction of the Courts of England and his
            agreement that nothing shall limit the rights of the Purchaser
            arising out of or in connection with the Offer and the Form of
            Acceptance and Election.

      (d)   Any omission to dispatch this document or the Form of Acceptance and
            Election or any notice required to be dispatched under the terms of
            the Offer to, or any failure to receive the same by, any person to
            whom the Offer is made, or should be made, shall not invalidate the
            Offer in any way. The Offer extends to all Shareholders,
            Optionholders, Warrantholders or Noteholders to whom this document,
            the Form of Acceptance and Election and any related documents may
            not be dispatched, and such persons may request copies of those
            documents from CHRISTOPHER PIKE at OD2, BROADQUAY HOUSE, PRINCE
            STREET, BRISTOL BS1 4DJ (TEL: +44 (0) 117 905 8974).

      (e)   Without prejudice to any other provision in Part B of this Appendix
            I, the Purchaser reserves the right to treat acceptances of the
            Offer as valid if received by or on behalf of it at any place or
            places determined by it otherwise than as set out herein or in the
            Form of Acceptance and Election.

      (f)   All powers of attorney, appointments of agents and authorities on
            the terms conferred by or referred to in this Appendix I or in the
            Form of Acceptance and Election are given by way of security for the
            performance of the obligations of the Shareholder, Optionholder,
            Warrantholder or Noteholder concerned and are irrevocable (in
            respect of powers of attorney in accordance with section 4 of the
            Powers of Attorney Act 1971) for a period of six months from the
            date of the Offer.

      (g)   No acknowledgment of receipt of any Form of Acceptance and Election,
            share certificate(s) and/or other document(s) of title (or
            indemnities for lost certificates) will be given. All
            communications, notices, certificates, documents of title (or
            indemnities for lost certificates) and remittances to be delivered
            by or sent to or from Shareholders, Optionholders, Warrantholders or
            Noteholders (or their designated agent(s)) will be delivered by or
            sent to or from such Shareholders, Optionholders, Warrantholders or
            Noteholders (or their designated agent(s)) at their risks.

      (h)   If the Offer does not become effective, the Form of Acceptance and
            Election and any share certificate(s) and/or other document(s) of
            title (or indemnities for lost certificates) will be returned by
            post within 14 days of the Offer lapsing, at the risk of the person
            entitled thereto, to the person or agent whose name and address
            outside

                                       33
<PAGE>

            Canada, Australia or the Republic of Ireland is set out in the
            relevant Box on the Form of Acceptance and Election or, if none is
            set out, to the first-named holder at his/her registered address
            outside Canada, Australia or the Republic of Ireland. No such
            documents will be sent to an address in Canada, Australia or the
            Republic of Ireland.

      (i)   The Offer described in this document was made on 22 June 2004 and is
            capable of acceptance from and after that time. Copies of this
            document, the Form of Acceptance and Election and any related
            documents are available from Christopher Pike at BroadQuay House,
            Prince Street, Bristol, BS1 4DJ from that time.

      (j)   If sufficient acceptances are received and/or sufficient OD2 Shares
            are otherwise acquired, Loudeye intends to apply the provisions of
            Sections 428-430F of the Companies Act 1985 and/or the provisions of
            Article 13 (Drag Along) of the Company's Articles of Association to
            acquire any outstanding OD2 Shares (including any OD2 Shares issued
            following the date of the Offer).

      (k)   The Purchaser reserves the right to notify any matter (including the
            making of the Offer) to all or any Shareholder, Optionholder,
            Warrantholder or Noteholder with registered address(es) outside the
            UK or whom the Purchaser knows to be nominees for such persons by
            announcement or paid advertisement in any daily newspaper published
            and circulated in the UK in which case such notice shall be deemed
            to have been sufficiently given notwithstanding any failure by any
            such shareholders to receive such notice, and all references in this
            document to notice in writing shall be construed accordingly.

      (l)   The Purchaser has been advised that this document does not
            constitute a financial promotion pursuant to Section 21 of the
            Financial Services and Markets Act 2000 by virtue of exemptions
            contained in the Financial Services and Markets Act 2000 (Financial
            Promotion) Order (SI 2001/1335).

      (m)   Completion of a Form of Acceptance and Election will constitute
            agreement to the terms of the Registration Rights Agreement set out
            in Appendix III to this document.

      (n)   All references in this Appendix to any statute or statutory
            provision shall include a statute or statutory provision which
            amends, consolidates or replaces the same (whether before or after
            the date hereof).

      (o)   The acquisition of OD2 Shares under the Offer is not conditional
            upon Shareholders, Optionholders, Warrantholders or Noteholders
            approving or consenting to any payment or other benefit being made
            or given to any director or former director of OD2 in connection
            with, or as compensation or consideration for his ceasing to be a
            director; his ceasing to hold any office held in conjunction with
            any directorship; or, in the case of a former director, his ceasing
            to hold any office which he held in conjunction with his former
            directorship and which he continued to hold after ceasing to be a
            director.

      (p)   Broadview has given and not withdrawn its written consent to the
            issue of this document with the inclusion herein of the reference to
            its name in the form and context in which it appears.

PART C: FORM OF ACCEPTANCE AND ELECTION

      Each Shareholder, Optionholder, Warrantholder or Noteholder by whom, or on
      whose behalf, a Form of Acceptance and Election is executed and received
      during the Offer Period or by or

                                       34
<PAGE>

      on behalf of the Purchaser irrevocably undertakes, represents, warrants
      and agrees to and with the Purchaser (so as to bind him, his personal
      representatives, heirs, successors and assigns) to the following effect:

      (a)   that the execution of a Form of Acceptance and Election, whether or
            not any other Boxes on such Form are completed, shall constitute:

            (i)   an acceptance of the Offer in respect of the relevant
                  Shareholder's, Optionholder's, Warrantholder's or Noteholder's
                  entire holding of OD2 Shares, provided that, if the word
                  "all", if no number, or a number which exceeds such holder's
                  holding of OD2 Shares, is inserted in Box 1, the acceptance
                  will be deemed to have been made in respect of that holder's
                  entire holding of OD2 Shares, and

            (ii)  an undertaking to execute any further documents and give any
                  further assurances which may be required to enable the
                  Purchaser to obtain the full benefit of the terms of the Offer
                  (including this Appendix) and/or to perfect any of the
                  authorities expressed to be given hereunder,

            on and subject to the terms and conditions set out or in this
            document and the Form of Acceptance and Election and that each such
            acceptance shall be irrevocable;

      (b)   that such Shareholder, Optionholder, Warrantholder or Noteholder
            represents and warrants for the benefit of the Purchaser that (i) he
            has not received or sent copies or originals of this document, the
            Form of Acceptance and Election or any related documents in, into or
            from Canada, Australia or the Republic of Ireland; (ii) he has not
            otherwise utilised in connection with the Offer, directly or
            indirectly, the mail of or any means or instrumentality (including,
            without limitation, the post, facsimile transmission, telex and
            telephone) of interstate or foreign commerce or any facility of a
            national securities exchange of Canada, Australia or the Republic of
            Ireland; (iii) he was outside Canada, Australia or the Republic of
            Ireland when the Form of Acceptance and Election was delivered; and
            (iv) in respect of the OD2 Shares to which the Form of Acceptance
            and Election relates, he is not an agent or a fiduciary acting on a
            non-discretionary basis for a principal, unless such agent or
            fiduciary is an authorised employee of such principal or such
            principal has given any instructions with respect to the Offer from
            outside Canada, Australia or the Republic of Ireland;

      (c)   that the OD2 Shares in respect of which the Offer is accepted or
            deemed to be accepted are sold with full title guarantee and free
            from all liens, equities, charges, encumbrances and other interests
            and together with all rights attaching thereto on or after 22 June
            2004 including voting rights and the right to all dividends,
            interest and other distributions declared, made or paid on or after
            that date;

      (d)   that the execution of the Form of Acceptance and Election will
            (except to the extent that any document referred to in this
            paragraph is executed by a Shareholder, Optionholder, Warrantholder
            or Noteholder as principal) constitute, subject to the Offer
            becoming effective, the irrevocable appointment of the Purchaser and
            its directors and agents as such shareholder's attorney and/or agent
            (the "ATTORNEY"), and an irrevocable instruction to the attorney
            with the authority to complete and execute all or any forms of
            transfer and to deliver such form(s) of transfer together with the
            certificate(s) and/or other document(s) of title (or indemnities for
            lost certificates) relating to such OD2 Shares for registration
            within six months of the Offer becoming effective and to do all such
            other acts and things as may in the opinion of the attorney be
            necessary or expedient for the purposes of or in connection with,
            the acceptance of the Offer including the exercise of any relevant
            OD2 Options, OD2 Warrants or the

                                       35
<PAGE>

            conversion of any OD2 Convertible Notes and to vest in the Purchaser
            or its nominee(s) the OD2 Shares as aforesaid;

      (e)   that the execution of the Form of Acceptance and Election will
            constitute, subject to the Offer becoming effective, the irrevocable
            appointment of Christopher Pike as such person's attorney and/or
            agent (the "CVR REPRESENTATIVE"), and an irrevocable instruction to
            the CVR Representative with the authority to give, complete and/or
            execute all or any documents, deeds, consents, agreements,
            resolutions, statements or forms in connection with the
            determination and agreement of any Additional Consideration which
            may become payable under the Contingent Value Rights (including,
            without limitation, agreement of the Accounts for each Earn Out
            Period) and to do all such other acts and things as may in the
            opinion of the CVR Representative be necessary or expedient for the
            purposes of or in connection with, such person's rights under any
            Contingent Value Rights issued to them;

      (f)   that the execution of the Form of Acceptance and Election and such
            receipt will constitute, subject to the Offer becoming unconditional
            an irrevocable authority and request:

            (i)   to OD2 or its agents to procure the registration of the
                  transfer of the OD2 Shares in certificated form pursuant to
                  the Offer and the delivery of the share certificate(s) and/or
                  other document(s) of title (or indemnities for lost
                  certificates) in respect thereof to the Purchaser or as it may
                  direct;

            (ii)  subject to the provisions of this Appendix, to the Purchaser
                  or its agents to procure the dispatch by post of the
                  consideration to which he is entitled under the Offer together
                  with any documents of title for any Loudeye Shares or
                  Promissory Notes to which the accepting Shareholder,
                  Optionholder, Warrantholder or Noteholder becomes entitled
                  pursuant to his acceptance of the Offer at the risk of such
                  Shareholder, Optionholder, Warrantholder or Noteholder to the
                  person whose name and address is set out in Box 3 of the Form
                  of Acceptance and Election or, if none is set out, to the
                  first-named holder at his registered address (outside Canada,
                  Australia and the Republic of Ireland);

      (g)   that the Purchaser shall be entitled after the Offer becomes
            effective or if the Offer will become effective immediately upon the
            outcome of the resolution in question, to direct the exercise of any
            votes and any or all other rights and privileges (including the
            right to requisition the convening of a general or separate class
            meeting of OD2) attaching to any OD2 Shares in respect of which the
            Offer has been accepted and the execution of the Form of Acceptance
            and Election will constitute an authority to OD2 from such
            shareholder to send any notice, circular, warrant or other document
            of communication which may be required to be sent to him as a member
            of OD2 in respect of such shares to the Purchaser at its registered
            office, and an authority to the Purchaser or any person nominated by
            the Purchaser to sign any consent to short notice of a general or
            separate class meeting as his attorney and/or agent and on his
            behalf and/or to execute a form of proxy in respect of such OD2
            Shares appointing any person nominated by the Purchaser to attend
            general and separate class meetings of OD2 and to exercise the votes
            attaching to such slates on his behalf where relevant, such votes to
            be cast so far as possible to satisfy any outstanding condition of
            the Offer, and will also constitute the agreement of such
            shareholder not to exercise any such rights without the consent of
            the Purchaser and the irrevocable undertaking of such shareholder
            not to appoint a proxy for or to attend such general or separate
            class meeting;

                                       36
<PAGE>

      (h)   that he will deliver or procure the delivery, to Christopher Pike at
            OD2, BroadQuay House, Prince Street, Bristol BS1 4DJ his
            certificate(s) and/or other documents of title in respect of the OD2
            Shares, in respect of which the Offer has been accepted held by him
            or an indemnity acceptable to the Purchaser in lieu thereof, as soon
            as possible and in any event within six months of the Offer becoming
            effective;

      (i)   that he agrees to ratify each and every act or thing which may be
            done or effected by the Purchaser or any of its partners, directors
            or agents or OD2 or its agents, as the case may be, in the proper
            exercise of any of its or his powers and/or authorities hereunder;

      (j)   that he shall do all such acts and things as shall be necessary or
            expedient to vest in the Purchaser or its nominee(s) the OD2 Shares
            and (as appropriate) all such acts and things as shall be necessary
            or desirable in connection with the exercise of OD2 Options or OD2
            Warrants or the conversion of OD2 Convertible Notes so that the OD2
            Shares issued by OD2 as a result may be vested in the Purchaser or
            its nominee(s);

      (k)   that if any provision of Part A, B or C of this Appendix I shall be
            unenforceable or invalid or shall not operate so as to afford the
            Purchaser or any of its partners, directors or agents the benefit of
            the authority expressed to be given therein, he shall with all
            practicable speed do all such acts and things and execute all such
            documents that may be required to enable the Purchaser and/or any of
            its partners, directors or agents to secure the full benefits of
            Part A, B or C of this Appendix I; and

      (l)   that an execution of the Form of Acceptance and Election takes
            effect as a deed.

PART D: TRANSFER RESTRICTIONS

      The right to receive any future consideration payable by Loudeye as
      described in the Offer Document may not be transferred or assigned without
      the prior written consent of Loudeye.

      The Loudeye Shares, Contingent Value Rights, Promissory Notes, Exchanged
      Options and any Loudeye Shares issued upon exercise of the Exchanged
      Options (the "SECURITIES") have not been registered under the Securities
      Act and may not be offered, sold, transferred or otherwise disposed of
      except pursuant to a registration under the Securities Act, Regulation S
      under the Securities Act or another available exemption from the
      registration requirements of the Securities Act. Except in the case of
      transactions pursuant to an effective registration, Loudeye will instruct
      its transfer agent not to register and transfer Loudeye Shares unless
      Loudeye shall have received an opinion of counsel reasonably acceptable to
      it that foregoing legal requirements have been satisfied. In addition to
      the foregoing, the Contingent Value Rights, the Promissory Notes and the
      Exchanged Options are personal to the holder and are not transferable
      assignable or chargeable.

      No Securities shall be offered or sold or otherwise transferred or
      disposed of (i) in the United States or to, or (ii) for the benefit or
      account of, a U.S. Person, until one year after the Completion Date, in
      each case other than pursuant to registration under the Securities Act,
      Regulation S or an available exemption from the registration requirements
      of the Securities Act. During the one year period following the
      Completion, any person acquiring of Securities will be required to certify
      to Loudeye either that:

      -     it is not a U.S. Person and its is not acquiring the Securities for
            the account or benefit of a U.S. Person; or

                                       37
<PAGE>

      -     it is acquiring the Securities in a transaction not requiring
            registration under the Securities Act.

      No hedging transactions may be undertaken with regard to the Securities
      unless in compliance with the Securities Act.

      The Securities, and any securities issued in respect of or in exchange for
      the Securities, will bear the following legend (or a legend with similar
      effect) and all transfers of Securities (if permitted) must satisfy the
      provisions of such legend:

      THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE
      SECURITIES OR BLUE SKY LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE ACT, REGULATION S PROMULGATED UNDER THE
      ACT OR ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
      THE ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS AND, IN THE
      CASE OF A TRANSACTION NOT SUBJECT TO SUCH REGISTRATION REQUIREMENTS,
      UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION
      UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SHARES REPRESENTED BY
      THIS CERTIFICATE MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

PART E: SUMMARY OF REGISTRATION RIGHTS

      Pursuant to the Registration Rights Agreement, Loudeye has agreed to use
      its commercially reasonable best efforts to prepare and file with the U.S.
      Securities Exchange Commission (the "SEC") one or more registration
      statements to register for resale the shares issued by it in connection
      with the Offer. The dates for filing such registration statements are:

      (i)   with respect to the Initial Loudeye Shares, on or prior to the date
            that is the later to occur of (A) 45 days following the date of this
            Offer; (B) 15 days following Completion; and (C) ten Business Days
            following the receipt by Loudeye of all audited and interim
            financial statements and pro forma financial information of OD2 (in
            final agreed form) required to be filed by Loudeye under a Form 8-K;

      (ii)  with respect to any Loudeye Shares issued under paragraph 2(i)(b),
            no later than February 15, 2005;

      (iii) with respect to any Loudeye Shares issued under paragraph 2(ii) of
            the Offer, within 45 days of the issue of any such Loudeye Shares;
            and

      (iv)  with respect to any Further Loudeye Shares, within 60 days of the
            issue of any such Further Shares.

      Loudeye has agreed to use commercially reasonable best efforts to have
      each such registration statement declared effective as soon as practicable
      after it is filed. Once a registration statement is effective, Loudeye has
      agreed to use commercially reasonable efforts to keep it effective for a
      period of twelve months or until such earlier time as all of the shares
      included in that registration statement have been sold or are no longer
      "Registrable Securities." "Registrable Securities" are defined as the
      Loudeye Shares issued in the Offer, until such shares (i) have been
      disposed of pursuant to an effective registration statement, (ii) have
      been transferred pursuant to Rule 144 under the Securities Act or are
      eligible for resale pursuant to

                                       38
<PAGE>

      Rule 144, or (iii) have ceased to be outstanding. Upon notice from
      Loudeye, selling holders may be required to suspend temporarily sales
      under an effective registration statement in certain circumstances
      described in the Registration Rights Agreement.

      Each selling holder must furnish to Loudeye certain information regarding
      itself, the Registrable Securities held by it, and such holder's intended
      method of disposition of the Registrable Securities as Loudeye may
      request.

      Loudeye shall bear all costs and expenses incident to its performance of
      its registration obligations under the Registration Rights Agreement, and
      the selling holders shall bear all selling expenses (including
      underwriting discounts, selling commissions, brokers' fees and transfer
      taxes) incurred in connection with the sale of their Loudeye Shares.

                                       39
<PAGE>

                                   APPENDIX II

                             CONTINGENT VALUE RIGHTS

1.    INTERPRETATION

      In this Appendix II the definitions used elsewhere in this document shall
      apply save as follows:

      "ACCOUNTS" means in relation to any Earnout Period the consolidated profit
      and loss account of the Group for that Earnout Period made up as at the
      close of that Earnout Period in accordance with the provisions of this
      Appendix II;

      "ADDITIONAL CONSIDERATION" has the meaning given in paragraph 2.1 below;

      "ADJUSTED NET PRE-TAX FIGURE" means in relation to any Earnout Period, the
      consolidated profits or losses before interest and taxation of the Group
      for that period shown in the Accounts for the relevant Earnout Period,
      adjusted as may be necessary to:

      (i)   exclude in computing such amount:

            (a)   any profits achieved in such Earnout Period which are derived
                  from sales made by any Group Company in North America and/or
                  Japan;

            (b)   any management charges, contributions to central overheads or
                  other similar charges levied by any member of the Purchaser's
                  Group on any member of the Group other than:

                        (i)   reimbursement by any Group Company of reasonable
                              direct costs incurred by a member of the
                              Purchaser's Group on behalf of any Group Company,
                              including but not limited to dedicated finance
                              personnel, outside legal fees and other direct
                              costs; and

                        (ii)  a contribution by the Company in respect of the
                              central overheads of the Purchaser's Group
                              amounting to two (2) per cent. of incremental
                              quarterly Gross Profits of the Group in excess of
                              (pound)449,662 (being the quarterly Gross Profits
                              of the Group for the quarter ended 31 March 2004);

            (c)   any interest on borrowed moneys which would not have been
                  incurred but for the transfer from any Group Company to any
                  member of the Purchaser's Group of any cash resources now or
                  hereafter held by any Group Company whether by way of
                  dividend, loan or howsoever otherwise;

            (d)   twenty (20) per cent. of the value of Gross Profit (as
                  calculated in accordance with UK GAAP) earned by any Group
                  Company in respect of any sales by such Group Company of
                  products or services of the Purchaser on behalf of the
                  Purchaser, provided that the Group Company is primarily
                  responsible for implementing, executing and financing such
                  commercial activities;

            (e)   eighty (80) per cent. of the value of Gross Profit (as
                  calculated in accordance with UK GAAP) earned by any Group
                  Company in respect of any sales by

                                       40

<PAGE>

                  such Group Company of products or services of the Purchaser on
                  behalf of the Purchaser, provided that the Purchaser is
                  primarily responsible for implementing, executing and
                  financing such commercial activities;

            (f)   any liability to Tax (including deferred Tax);

      (ii)  include in computing such amount:

            (a)   all expenditure (other than any expressly excluded by
                  paragraph (i) of this definition) which properly relates to
                  the relevant Earnout Period;

            (b)   full provision for all bad and doubtful debtors in respect of
                  products sold by any Group Company in such Earnout Period,
                  which shall include, without prejudice to any other
                  inclusions, all debtors which have been overdue for more than
                  60 days when the Accounts are prepared and in respect of
                  credit notes issued and refunds granted in respect of any
                  debtors;

            (c)   full provision in respect of all liabilities (whether actual
                  or contingent) incurred or sustained by any Group Company in
                  the course of their respective trades during the relevant
                  Earnout Period, including, without limitation, actual or
                  anticipated guarantee or warranty claims in respect of goods
                  and services supplied, but excluding:-

                  (A)   any liabilities expressly excluded by paragraph (i) of
                        this definition; and

                  (B)   any liabilities guaranteed by a Group Company which are
                        the primary responsibility of any member of the
                        Purchaser's Group;

            (d)   provision for all dilapidations and wants of repair in respect
                  of any fixed assets of any Group Company arising in the
                  relevant Earnout Period that would normally have been accrued
                  for in such Earnout Period;

            (e)   notwithstanding paragraph (i)(a) above, twenty (20) per cent.
                  of the value of Gross Profit (as calculated in accordance with
                  US GAAP) earned by the Purchaser in respect of any sales by
                  the Purchaser of products or services of any Group Company on
                  behalf of the Group Company; provided that the Purchaser is
                  primarily responsible for implementing, executing and
                  financing such commercial activities;

            (f)   notwithstanding paragraph (i)(a) above, eighty (80) per cent.
                  of the value of Gross Profit (as calculated in accordance with
                  US GAAP) earned by the Purchaser in respect of any sales by
                  the Purchaser of products or services of a Group Company;
                  provided that such Group Company is primarily responsible for
                  implementing, executing and financing such commercial
                  activities; and

      (iii) (Subject to paragraphs (i) and (ii) of this definition) reflect any
            differences between the accounting policies, bases, methods,
            practices and principles employed in the audited accounts of the
            Company and those employed in the Accounts with the intent that,
            subject as aforesaid, the Adjusted Net Pre-Tax Figure shall be
            ascertained on the same accounting policies, bases, methods,
            practices and principles as those employed in the audited accounts
            of the Company and otherwise in accordance with UK GAAP

                                       41

<PAGE>

            in force at the relevant time, except as provided for in (ii)(e) and
            (f) above and save to the extent that there are any changes under UK
            GAAP relating to the manner in which share options are expensed.

      "ADJUSTED NET PRE-TAX LOSSES" means in relation to any Earnout Period in
      which the Adjusted Net Pre-Tax Figure is a negative number, the absolute
      value of the Adjusted Net Pre-Tax Figure for such Earnout Period.

      "EARNOUT PERIOD" means all or any of the First Earnout Period, Second
      Earnout Period, Third Earnout Period and Fourth Earnout Period as the
      context requires;

      "FIRST EARNOUT PERIOD" means the period of 6 calendar months ending 30th
      November, 2004 inclusive;

      "FOURTH EARNOUT PERIOD" means the period of 30 calendar months ending 30th
      November, 2006 inclusive;

      "GROSS PROFIT" means in relation to any Earnout Period, the Revenue
      recognized by the Group in such Earnout Period less all direct costs
      incurred by the Group in such Earnout Period associated with generating
      such Revenue calculated in accordance with UK GAAP, including, but not
      limited to license fees, retailer commissions, co-location costs,
      bandwidth charges and sales commissions as shown in the Accounts for such
      Earnout Period; for the avoidance of doubt, indirect costs (including but
      limited to internal overhead allocations) shall not be deducted from
      Revenue for the purposes of calculating Gross Profit in respect of an
      Earnout Period;

      "GROUP" means the Company, the Subsidiary and the New Subsidiaries and
      each a "GROUP COMPANY";

      "NEW SUBSIDIARIES" means any wholly-owned subsidiary (within the meaning
      of Sections 736 and 736A, Companies Act 1985) of any Group Company from
      time to time provided that subsidiaries of any Group Company established
      by way of an acquisition subsequent to Closing shall be specifically
      excluded from this definition;

      "PURCHASER'S GROUP" means Purchaser and its subsidiaries (other than any
      Group Company);

      "REVENUE" means revenue recognised by the Group in accordance with the UK
      GAAP;

      "SECOND EARNOUT PERIOD" means the period of 12 calendar months ending on
      31st May 2005 inclusive;

      "TAX" means all forms of taxation, duties, levies, and imposts whether of
      the United Kingdom or any other jurisdiction including (without
      limitation) corporation tax, including instalment payments in respect of
      corporation tax, advance corporation tax, the charge under s.419 Taxes Act
      1988, the charge under s.747 Taxes Act 1988, income tax, capital gains
      tax, the charge under s.601(2) Taxes Act 1988, value added tax, the charge
      to tax under Schedule 9A Value Added Tax Act 1994, duties of excise,
      customs and other import duties, inheritance tax, stamp duty, stamp duty
      reserve tax, stamp duty land tax, capital duties, national insurance
      contributions, landfill tax, insurance premium tax, climate change levy,
      aggregates levy, local authority council taxes, petroleum revenue tax,
      amounts payable in consideration for the surrender of group relief or
      advance corporation tax or refunds pursuant to s.102 Finance Act 1989, and
      any payment whatsoever which the Company may be or become bound to make to

                                       42

<PAGE>

      any person as a result of the operation of any enactment relating to any
      such taxes or duties and all penalties, fines, charges and interest
      relating to any of the foregoing or resulting from a failure to comply
      with the provisions of any enactment relating to taxation;

      "THIRD EARNOUT PERIOD" means the period of 18 calendar months ending on
      30th November, 2005 inclusive.

      "UK GAAP" shall mean United Kingdom generally accepted accounting
      principles as in effect from time to time.

      "US GAAP" shall mean United States generally accepted accounting
      principles as in effect from time to time.

      "CVR REPRESENTATIVES" means Charles Grimsdale and Christopher Pike.

2.    AMOUNT OF ADDITIONAL CONSIDERATION PAYABLE UNDER THE CONTINGENT VALUE
      RIGHTS

2.1   AGGREGATE AMOUNT OF ADDITIONAL CONSIDERATION

      The Additional Consideration required to be paid under all Contingent
      Value Rights shall comprise the aggregate of the amounts payable in
      respect of the First Earnout Period, the Second Earnout Period, the Third
      Earnout Period and the Fourth Earnout Period and shall not exceed an
      aggregate value of (pound)10,000,000 (and shall be subject to the
      additional limitations set forth below).

      The maximum aggregate amount of the Additional Consideration in respect
      of:

      (i)   the First Earnout Period shall not exceed (pound)1,250,000;

      (ii)  the Second Earnout Period shall not exceed (pound)2,500,000 (less
            any amounts payable in respect of the First Earnout Period);

      (iii) the Third Earnout Period shall not exceed (pound)5,000,000 (less any
            amounts payable in respect of the First Earnout Period and the
            Second Earnout Period); and

      (iv)  the Fourth Earnout Period shall not exceed (pound)5,000,000.

2.2   AMOUNT OF ADDITIONAL CONSIDERATION PER CONTINGENT VALUE RIGHT

      Subject as provided below in relation to costs and expenses borne by the
      Vendor Representative, each Contingent Value Right shall entitle the
      holder to such part of the Additional Consideration (if and when any
      becomes payable in any Earn Out Period) determined in accordance with the
      following formula:

            P=AC/S

      where:

      P = the entitlement to Additional Consideration for each Contingent Value
      Right in an Earnout Period;

                                       43

<PAGE>

      AC = the aggregate amount of the Additional Consideration payable in
      respect of such Earnout Period;

      S = the total number of Contingent Value Rights issued by the Purchaser
      under the Offer.

      Persons accepting the Offer may elect to receive a Promissory Note in lieu
      of any consideration which becomes payable under the Contingent Value
      Rights (see paragraph 4 of the Loudeye Letter).

      To the extent that the Vendor Representative becomes responsible for
      bearing all or part of the fees and expenses of the Firm in accordance
      with paragraph 3.3 below, an amount equal to such fees and expenses
      actually incurred by the Vendor Representative shall be deducted from the
      aggregate amount of Additional Consideration payable in respect of the
      relevant Earnout Period prior to determining the entitlement to Additional
      Consideration for each Contingent Value Right in such Earnout Period. The
      amount so deducted shall be paid by Loudeye to the Vendor Representative
      by way of reimbursement of such fees and expenses.

2.3   FIRST EARNOUT PERIOD

      2.3.1 TARGETED PROFITS EXCEEDED

            Subject to paragraph 2.1, to the extent that the Gross Profits in
            the First Earnout Period equal or exceed (pound)1,804,919, the
            Purchaser shall pay the aggregate of:

            (i)   (pound)1,250,000; less

            (ii)  0.5 times the amount, if any, by which Adjusted Net Pre-Tax
                  Losses for the First Earnout Period are greater than
                  (pound)1,811,442 (it being understood that this clause (ii)
                  shall not apply if there are no Adjusted Net Pre-Tax Losses
                  for the First Earnout Period or if the amount of Adjusted Net
                  Pre-Tax Losses for the First Earnout Period are less than
                  (pound)1,811,442).

      2.3.2 80 PER CENT. OF TARGETED PROFITS EXCEEDED

            Subject to paragraph 2.1, and to the extent that the provisions of
            paragraph 2.3.1 do not apply, if the Gross Profits in the First
            Earnout Period are equal to or greater than (pound)1,443,935 but
            less than (pound)1,804,919 the Purchaser shall pay the aggregate of:

            (i)   an amount equal to (pound)1,250,000 multiplied by a fraction,
                  the numerator of which is the amount of Gross Profits in the
                  First Earnout Period less (pound)1,443,935 and the denominator
                  of which is (pound)360,984; plus

            (ii)  0.5 times the sum of the Adjusted Net Pre-Tax Figure for the
                  First Earnout Period and (pound)1,811,442,

            up to a maximum amount payable pursuant to this paragraph 2.3.2
            of (pound)1,250,000.

      2.3.3 LESS THAN 80 PER CENT. OF TARGETED PROFITS

                  If the Gross Profits in the First Earnout Period are less than
                  (pound)1,443,935, no Additional Consideration in respect of
                  the First Earnout Period shall be payable under this clause
                  2.3.

                                       44

<PAGE>

2.4   SECOND EARNOUT PERIOD

      2.4.1 TARGETED PROFITS EXCEEDED

            Subject to paragraph 2.1, to the extent that the Gross Profits in
            the Second Earnout Period equal or exceed (pound)4,443,348 the
            Purchaser shall pay the aggregate of:

            (i)   (pound)2,500,000; less

            (ii)  the amount, if any, by which Adjusted Net Pre-Tax Losses for
                  the Second Earnout Period exceed (pound)3,298,166 (it being
                  understood that this clause (ii) shall not apply if there are
                  no Adjusted Net Pre-Tax Losses for the Second Earnout Period
                  or if the amount of Adjusted Net Pre-Tax Losses for the Second
                  Earnout Period are less than (pound)3,298,166),

            up to a maximum amount payable pursuant to this paragraph 2.4.1 of
            (pound)2,500,000 less the total amount payable pursuant to paragraph
            2.3.

      2.4.2 80 PER CENT. OF TARGETED PROFITS EXCEEDED

            Subject to paragraph 2.1, and to the extent that the provisions of
            paragraph 2.4.1 do not apply, if the Gross Profits in the Second
            Earnout Period are equal to or greater than (pound)3,554,678 but
            less than (pound)4,443,348 the Purchaser shall pay the aggregate of:

            (i)   an amount equal to (pound)2,500,000 multiplied by a fraction,
                  the numerator of which is the amount of Gross Profits in the
                  Second Earnout Period less (pound)3,554,678 and the
                  denominator of which is (pound)888,669; plus

            (ii)  one (1) times the sum of the Adjusted Net Pre-Tax Figure for
                  the Second Earnout Period and (pound)3,298,166

            up to a maximum amount payable pursuant to this paragraph 2.4.2 of
            (pound)2,500,000 less the total amount payable pursuant to paragraph
            2.3.

      2.4.3 LESS THAN 80 PER CENT. OF TARGETED PROFITS

            If the Gross Profits in the Second Earnout Period are less than
            (pound)3,554,678, no Additional Consideration in respect of the
            Second Earnout Period shall be payable.

2.5   THIRD EARNOUT PERIOD

      2.5.1 TARGETED PROFITS EXCEEDED

            Subject to paragraph 2.1, to the extent that the Gross Profits in
            the Third Earnout Period equal or exceed (pound)8,891,670 the
            Purchaser shall pay the aggregate of:

            (i)   (pound)5,000,000; less

            (ii)  two (2) times the amount by which Adjusted Net Pre-Tax Losses
                  for the Third Earnout Period exceed (pound)3,312,662 (it being
                  understood that this clause (ii) shall not apply if there are
                  no Adjusted Net Pre-Tax Losses for the Third Earnout Period or
                  if the amount of Adjusted Net Pre-Tax Losses for the Third
                  Earnout Period are less than (pound)3,312,662)

                                       45

<PAGE>

            up to a maximum amount payable pursuant to this paragraph 2.5.1 of
            (pound)5,000,000 less the total amounts payable pursuant to
            paragraphs 2.3 and 2.4.

      2.5.2 80 PER CENT. OF TARGETED PROFITS EXCEEDED

            Subject to paragraph 2.1, and to the extent that the provisions of
            paragraph 2.5.1 do not apply, to the extent that the Gross Profits
            in the Third Earnout Period are equal to or greater than
            (pound)7,113,336 but less than (pound)8,891,670 the Purchaser shall
            pay the aggregate of:

            (i)   an amount equal to (pound)5,000,000 multiplied by a fraction,
                  the numerator of which is the amount of Gross Profits in the
                  Third Earnout Period less (pound)7,113,336 and the denominator
                  of which is (pound)1,778,334; plus

            (ii)  two (2) times the sum of the Adjusted Net Pre-Tax Figure for
                  the Third Earnout Period and (pound)3,312,662,

            up to a maximum amount payable pursuant to this paragraph 2.5.2 of
            (pound)5,000,000 less the total amounts payable pursuant to
            paragraphs 2.3 and 2.4.

      2.5.3 LESS THAN 80 PER CENT. OF TARGETED PROFITS

            If the Gross Profits in the Third Earnout Period are less than
            (pound)7,113,336, no Additional Consideration in respect of the
            Third Earnout Period shall be payable.

2.6   FOURTH EARNOUT PERIOD

      Subject to paragraph 2.1 to the extent that the Gross Profits in the
      Fourth Earnout Period equal or exceed (pound)25,000,000 the Purchaser
      shall pay:

      2.6.1 the amount by which the Gross Profits exceed (pound)25,000,000; less

      2.6.2 the amount by which the Adjusted Net Pre-Tax Figure for the Fourth
            Earnout Period is less than (pound)3,250,000,

      up to a maximum amount payable pursuant to this paragraph 2.6
      of (pound)5,000,000.

2.7   NEGATIVE EARNOUT VALUES

      If in any circumstance any of the formulas in paragraphs 2.3, 2.4, 2.5 or
      2.6 yield a negative number, no amount shall be paid by the Purchaser to
      the holders of Contingent Value Rights nor, for the avoidance of doubt,
      shall any amount be payable by the holders of the Contingent Value Rights
      to the Purchaser with respect thereto. For the avoidance of doubt, the sum
      of the amounts described in any of paragraphs 2.3.2(ii), 2.4.2(ii) and/or
      2.5.2(ii) may result in a negative number in which case such amount would
      result in a reduction of the amount set forth in clause (i) of the
      corresponding paragraph for purposes of determining the amount, if any, of
      Earnout Consideration to be paid with respect to the applicable Earnout
      Period.

                                       46

<PAGE>

3.    DETERMINATION OF THE ADDITIONAL CONSIDERATION

3.1   PREPARATION OF ACCOUNTS

      3.1.1 The Purchaser shall procure that draft Accounts for each Earnout
            Period (each "DRAFT ACCOUNTS") shall be prepared by the Company at
            the direction and under the supervision of the Purchaser. The
            Purchaser shall within 40 days of the end of each Earnout Period
            deliver copies of the Draft Accounts to the Vendor Representative
            together with a statement in draft showing the Purchaser's
            calculation of the Additional Consideration (if any) payable in
            respect of that Earnout Period incorporating a list of the
            adjustments made to the Accounts in order to arrive at Gross Profit
            and the Adjusted Net Pre-Tax Figure for that Earnout Period (the
            "CALCULATION"). A copy of the Draft Accounts and the Calculation
            shall be sent by the Purchaser to Charles Grimsdale at the same time
            as a copy is delivered to the Vendor Representative. The Purchaser
            shall afford to the Vendor Representative and their accounting
            representatives reasonable access upon reasonable notice during
            normal business hours to such information as is reasonably necessary
            to verify calculations set forth in the Calculation.

      3.1.2 Unless the Vendor Representative shall, within 15 days after receipt
            of the draft Calculation, serve a notice on the Purchaser that he
            objects to it, identifying the reason for the objection and the
            items comprised in the Draft Accounts or the draft Calculation which
            are in dispute (such notice, an "OBJECTION NOTICE") the Vendor
            Representative shall be deemed to have irrevocably agreed to the
            draft Calculation for all purposes under this Appendix II and such
            Calculation shall be binding upon all holders of Contingent Value
            Rights.

3.2   AGREEMENT OF DRAFT

      If, within the period referred to in paragraph 3.1.2, the Vendor
      Representative shall serve upon the Purchaser an Objection Notice then the
      Purchaser and the Vendor Representative shall use all reasonable
      endeavours to reach agreement upon the matters in dispute. Neither the
      Vendor Representative nor the Purchaser shall be entitled to propose any
      adjustments to the draft Calculation except (i) in the case of the Vendor
      Representative an adjustment relating to any item referred to in its
      Objection Notice and (ii) in the case of either of them an adjustment by
      way of counter proposal to an adjustment proposed by the other of them,
      being in each case, a revision of an adjustment referred to in the
      Objection Notice.

3.3   INDEPENDENT ACCOUNTANT

      If the Vendor Representative and the Purchaser shall have failed to agree
      the draft Calculation within 40 Business Days after service of the
      Objection Notice either the Vendor Representative or the Purchaser shall
      be entitled to refer the matter or matters in dispute to an independent
      firm of Chartered Accountants (the "FIRM") agreed upon between them or
      (failing agreement) to be selected (at the instance of either party) by
      the President for the time being of the Institute of Chartered Accountants
      in England and Wales. The Vendor Representative and the Purchaser shall
      use their respective reasonable endeavours to procure that the Firm
      delivers its decision within such time as may be stipulated in their terms
      of reference. The Firm shall act as experts and not as arbitrators and
      shall determine the matters or matters in dispute (which may include any
      dispute concerning the interpretation of any provision of this Appendix
      affecting the Calculation or their jurisdiction to determine the dispute
      or their terms of reference) and their decision shall be final and
      binding. The Firm may, so far as is reasonable, instruct valuers,
      solicitors and other professional advisers to the

                                       47

<PAGE>

      extent they consider necessary to reach their determination. The fees and
      expenses of the Firm (including the fees of any professional adviser
      appointed by the Firm as aforesaid) shall be borne by the Purchaser and
      the Vendor Representative (on behalf of the holders of Contingent Value
      Rights) in proportion to the amount of the disputed items with respect to
      which such party's claim was unsuccessful (i.e., if there is a
      (pound)1,000,000 dispute regarding the amount of Additional Consideration
      for an Earnout Period and the Firm determines that Vendor Representative's
      claim prevails with respect to (pound)250,000 of such disputed amount and
      the Purchaser's claim prevails with respect to (pound)750,000 of such
      disputed amount, then Vendor Representative would be obligated to pay
      seventy five (75) per cent. of the fees and expenses and the Purchaser
      would be obligated to pay twenty five (25) per cent. of the fees and
      expenses). The Vendor Representative and the Purchaser shall each provide
      or procure the provision to the Firm of such information and explanations
      as they shall reasonably require of them for the purposes of their
      determination.

3.4   CALCULATION FINAL AND BINDING

      If within the period referred to in paragraph 3.1.2 the Vendor
      Representative shall not have served an Objection Notice on the Purchaser,
      or if such notice is served and the Purchaser and the Vendor
      Representative shall subsequently agree the draft Calculation, or the
      matters in dispute are referred to the Firm under paragraph 3.3, the draft
      Calculation, as adjusted (where applicable) so as to be in accordance with
      the agreement of the Purchaser and the Vendor Representative or the
      determination of the Firm shall be the Calculation for the purposes of
      this Appendix II and shall be final and binding on the Vendor
      Representative, each Vendor and the Purchaser.

4.    PAYMENT OF THE ADDITIONAL CONSIDERATION

4.1   ALLOCATION

      Any Additional Consideration due from the Purchaser will be allocated
      amongst the holders of Contingent Value Rights in accordance with their
      entitlements determined in accordance with paragraph 2.2 above.

4.2   METHOD OF PAYMENT

      In respect of each Earnout Period individually, the Purchaser may, in its
      sole discretion, elect to pay any Additional Consideration either in cash
      or by issuing to the holders of Contingent Value Rights additional shares
      of unregistered common stock of Loudeye.

      Loudeye will not issue more than 13,950,000 Loudeye Shares (which amounts
      to approximately 19.9 per cent. of the number of shares of Loudeye Common
      Stock outstanding as of the date of this Offer Document) in connection
      with the Offer, the Compulsory Sales Procedure and the Optionholder
      Alternative unless it obtains the approval of the holders of a majority of
      outstanding Loudeye Shares in accordance with NASDAQ requirements. To the
      extent required by NASDAQ rules, the votes of holders of Initial Loudeye
      Shares issued in connection with the Offer, the Compulsory Sale Procedure
      or the Optionholder Alternative will not be counted (with respect to such
      Initial Loudeye Shares) to approve or disapprove the issuance of
      additional Loudeye Shares as a means of paying any additional
      consideration that Loudeye may be required to pay in connection with the
      Offer or the Compulsory Sale Procedure. If such approval is not obtained,
      any obligation of Loudeye under the Offer to pay further consideration
      will be satisfied in cash (with persons accepting the Offer being able to
      take Promissory Notes in lieu of cash at their election (see paragraph 4
      of the Loudeye

                                       48

<PAGE>

      Letter)). In addition, no further shares or options will be issued under
      the Unapproved Plan (other than Loudeye Shares issuable upon exercise of
      Exchanged Options).

4.3   PAYMENT IN CASH

      If pursuant to paragraph 4.2 the Purchaser elects to pay any Additional
      Consideration in cash, any such amount in respect of any Earnout Period
      shall be paid by the Purchaser to the holders of Contingent Value Rights
      within 60 Business Days after the end of the relevant Earnout Period if no
      Objection Notice has been served. Should an Objection Notice be served the
      Purchaser shall pay any balance owing within 10 Business Days of the
      Calculation becoming final and binding. Each amount due in respect of the
      Additional Consideration shall be paid by cheque or by transfer into such
      bank account as the holders of Contingent Value Rights may hereafter
      notify to the Purchaser. As set forth in paragraph 2.2, if Purchaser
      elects to pay any Additional Consideration in cash, the amount of such
      cash payment to be made with respect to each Contingent Value Right shall
      equal "P" (as such term is defined in paragraph 2.2). Holders of
      Contingent Value Rights that elected to receive consideration payable
      under the Contingent Value Rights in the form of Series B Notes or Series
      C Notes shall receive such Series B Notes or Series C Notes in lieu of the
      cash payments described in this paragraph 4.3.

4.4   PAYMENT IN SHARES

      If pursuant to paragraph 4.2 the Purchaser elects to pay any Additional
      Consideration in shares, the number of such additional shares to be issued
      to each holder of Contingent Value Rights in respect of each Contingent
      Value Right held by him shall be calculated by using the following
      formula:

            N=P/C

            where:

            N = the number of additional shares to be issued in respect of each
                Contingent Value Right;

            P   has the meaning assigned to "P" in paragraph 2.2 above; and

            C = the volume weighted average closing share price in (pound) of a
                Loudeye Share on NASDAQ for the 6 month period immediately
                preceding and inclusive of the last day of the relevant Earnout
                Period, calculated at the Exchange Rate each day;

            and such amount of shares in respect of any Earnout Period
            multiplied by the number of Contingent Value Rights held by the
            relevant Vendor shall be issued by the Purchaser to that Vendor
            within 60 Business Days after the end of the relevant Earnout Period
            if no Objection Notice has been served. Should an Objection Notice
            be served the Purchaser shall issue such number of shares within 10
            Business Days of the Calculation becoming final and binding. The
            Purchaser shall use its reasonable endeavours to file a registration
            statement with the Securities and Exchange Commission with respect
            to any shares issued as Additional Consideration in accordance with
            the terms of the Registration Rights Agreement.

                                       49

<PAGE>

5.    PROTECTION OF THE ADDITIONAL CONSIDERATION AND WORKING CAPITAL

5.1   CONDUCT OF THE COMPANY'S AFFAIRS DURING THE EARNOUT PERIOD

      5.1.1 The Purchaser and each of the Vendors agree to act in good faith
            during the Earnout Period in relation to the Group and not to take
            actions that would be unfairly prejudicial or discriminatory to the
            Group for the purpose of adversely affecting the Vendors' interests
            in receiving Additional Consideration. Nothing in this paragraph 5.1
            shall require the Purchaser to make available to the Company and any
            of the Subsidiaries any additional capital in excess of
            (pound)5,000,000 in the aggregate in accordance with paragraph 5.2.

      5.1.2 During the Earnout Period, Executive Directors of the Company shall
            prepare and submit to the Purchaser's Board of Directors for
            approval annual operating budgets. During the Earnout Period, the
            Executive Directors of the Company shall have the authority to
            operate the Company's business in the ordinary course of business
            consistent with past practice so long as such activities are within
            the parameters set forth in the applicable budget approved by
            Purchaser's Board of Directors and are otherwise in compliance with
            directives and restrictions that may be issued by Purchaser's Board
            of Directors or the Company's Board of Directors (which shall
            include representatives designated by Purchaser) from time to time.

      5.1.3 If increases in the Purchaser's authorized common stock and option
            plan are approved by the Purchaser's stockholders at the Purchaser's
            annual meeting of stockholders scheduled to be held on July 22,
            2004, then, subject to receipt of any other shareholder approvals
            which may be required by NASDAQ, the Purchaser shall reserve options
            to purchase 2,000,000 shares of the Purchaser's common stock for
            grant to employees of the Company for future services and shall
            consult with the Executive Directors with respect to the appropriate
            allocation of such stock options (which allocation shall be subject
            to approval by the Purchaser's Board of Directors or compensation
            committee).

5.2   WORKING CAPITAL

      The Purchaser shall advance (pound)3,000,000 to the Company (by
      telegraphic transfer to the Company's bank account) within five (5) days
      following the date of the Offer becoming unconditional. The Purchaser
      further agrees to provide up to (pound)2,000,000 of additional funding, if
      necessary, on a quarterly basis beginning on April 1, 2005 pursuant to
      budgets approved by the Purchaser's Board of Directors. For the avoidance
      of doubt, the Purchaser is not obligated to advance any amounts to the
      Company in excess of (pound)5,000,000, provided that in its sole
      discretion the Purchaser may agree to provide additional funding.

6.    TRANSFER

6.1   The Contingent Value Rights are personal to the holder and shall not be
      transferable, assignable or chargeable. Any purported transfer,
      assignment, disposal or dealing with the rights attaching to the
      Contingent Value Rights shall render the Contingent Value Right void.

7.    CERTIFICATES AND REGISTRATION

7.1   The Contingent Value Rights shall be uncertificated and the Purchaser
      shall not issue any certificate to holders.

                                       50

<PAGE>

7.2   The Purchaser shall procure that a register is maintained in respect of
      the Contingent Value Rights recording:

      7.2.1 the number of Contingent Value Rights issued;

      7.2.2 the names and addresses of the holders of the Contingent Value
            Rights;

      7.2.3 the number of Contingent Value Rights held by each holder.

7.3   Any change of name or address on the part of any holder of Contingent
      Value Rights shall forthwith be notified by the holder to the Purchaser.

7.4   A Noteholder and any person authorised by him may request an extract from
      the Register in relation to his holding of Contingent Value Rights upon
      payment of a reasonable charge.

7.5   The Purchaser shall recognise the registered holder of the Contingent
      Value Rights as the absolute owner of his Contingent Value Rights and
      shall not (except as ordered by a court of competent jurisdiction) be
      bound to take notice or see to the execution of any trust, whether
      express, implied or constructive, to which the Contingent Value Rights may
      be subject.

                                       51

<PAGE>

                                  APPENDIX III

                          REGISTRATION RIGHTS AGREEMENT

            THIS REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of
June 22, 2004, is entered into by and among Loudeye Corp., a Delaware
corporation (the "COMPANY"), and each Holder (as defined below).

            WHEREAS, pursuant to the private offer made by the Company to
acquire all of the issued and to be issued ordinary share capital of On Demand
Distribution Limited (the "OFFER") on the terms set forth in the Offer Document
(as defined below), the Company will issue to the Holders shares of its common
stock, par value $0.001 per share ("COMMON STOCK"); and

            WHEREAS, the Company intends to provide certain registration rights
with respect to the shares of Common Stock issued, or to be issued, by it to the
Holders pursuant to the Offer as set forth herein.

            In consideration of the foregoing, the Company and the Holders
hereby agree as follows:

            SECTION 1. DEFINITIONS.

            As used in this Agreement, the following terms shall have the
following meanings:

            "BUSINESS DAY" means a day that is not a Saturday, Sunday or a day
on which banking institutions in New York City, New York, or London, England are
not required to be opened.

            "COMMISSION" means the U.S. Securities and Exchange Commission.

            "COMMON STOCK" has the meaning set forth in the preamble.

            "COMPANY" has the meaning set forth in the preamble and shall
include the Company's successors by merger, acquisition, reorganization or
otherwise.

            "COMPLETION DATE" means the date on which the Company acquires 100%
of the OD2 Shares.

            "CONTROLLING PERSONS" has the meaning set forth in Section 6(a).

            "DAMAGES" has the meaning set forth in Section 6(a).

            "DEFERRED LOUDEYE SHARES" means shares of Common Stock potentially
issuable to Holders, at the election of the Company, on November 30, 2004, May
31, 2005 and November 30, 2005 pursuant to paragraph 2(ii) of the Company's
letter included in the Offer Document.

            "FURTHER LOUDEYE SHARES" shall have the meaning set forth in the
Offer Document.

            "EXCHANGE ACT" means the U.S. Securities Exchange Act of 1934, as
amended from time to time, or any successor statute, and the rules and
regulations of the Commission promulgated thereunder.

            "HOLDER" means each Person receiving Registrable Securities from the
Company pursuant to the Offer, and each other holder, from time to time, of
Registrable Securities executing a signature page hereto.

            "INITIAL LOUDEYE SHARES" shall have the meaning set forth in the
Offer Document.

                                       52

<PAGE>

            "NASD" means the National Association of Securities Dealers, Inc.

            "OD2" means On Demand Distribution Limited with registered office
address at Box Hill, Mill Lane, Corsham, Wiltshire SN13 8PN, England.

            "OD2 SHARES" shall have the meaning set forth in the Offer Document.

            "OFFER DOCUMENT" means the Recommended Offer by the Company for On
Demand Distribution Limited dated as of June 22, 2004, as such document may be
amended, modified or supplemented from time to time, together with any exhibits,
schedules or other attachments thereto.

            "OTHER LOUDEYE SHARES" means shares of Common Stock potentially
issuable to Holders, at the election of the Company, on January 31, 2005
pursuant to paragraph 2(i)(b) of the Company's letter included in the Offer
Document.

            "PERSON" means any individual, corporation, partnership, joint
venture, association, joint-stock company, trust, limited liability company,
unincorporated organization, government or other agency, or any political
subdivision thereof, or any other entity of whatever nature.

            "PROSPECTUS" means the prospectus included in any Registration
Statement, as amended or supplemented by any prospectus supplement, with respect
to the terms of the offering of any portion of the Registrable Securities
covered by such Registration Statement, and all other amendments and supplements
to the prospectus, including post-effective amendments, and all material
incorporated by reference or deemed to be incorporated by reference in such
prospectus.

            "REGISTRABLE SECURITIES" means the Shares; provided, however, that
any Shares shall cease to be Registrable Securities when (i) they have been
disposed of pursuant to an effective Registration Statement, (ii) they have been
transferred to any other Person pursuant to Rule 144 or are eligible for resale
pursuant to Rule 144, or (iii) such Shares shall have ceased to be outstanding.

            "REGISTRATION STATEMENT" means a registration statement of the
Company that covers any of the Registrable Securities pursuant to the provisions
of this Agreement, including in each case the Prospectus, and all amendments and
supplements to any such registration statement or Prospectus.

            "RULE 144" means Rule 144 promulgated by the Commission pursuant to
the Securities Act, as such Rule may be amended from time to time, and any
successor rule hereafter adopted by the Commission.

            "SECURITIES ACT" means the U.S. Securities Act of 1933, as amended
from time to time, or any successor statute, and the rules and regulations of
the Commission promulgated thereunder.

            "SHARES" means the Initial Loudeye Shares, the Other Loudeye Shares
(if any are issued), the Deferred Loudeye Shares (if any are issued), and the
Further Loudeye Shares (if any are issued), and all shares of Common Stock
directly or indirectly issued or issuable in respect of such Shares by way of
stock dividend or stock split or in connection with a combination of shares,
recapitalization, merger, consolidation, or other reorganization.

            SECTION 2. REGISTRATION OBLIGATIONS.

            (a)   Subject to the terms and conditions of this Agreement, the
Company shall use commercially reasonable best efforts to prepare and file with
the Commission one or more Registration Statements on Form S-3 (or, if the
Company is not then eligible to register for resale the Registrable Securities
on Form S-3, such other appropriate form), covering the resale of:

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                  (i)   the Initial Loudeye Shares, on or prior to the date that
                        is the later to occur of: (A) 45 days following the date
                        of the Offer; (B) 15 days following the Completion Date;
                        and (C) ten Business Days following the date of receipt
                        by the Company of all audited and interim financial
                        statements and pro forma financial information of OD2
                        (in final agreed form) required to be filed by the
                        Company under Form 8-K;

                  (ii)  the Other Loudeye Shares, not later than February 15,
                        2005;

                  (iii) any Deferred Loudeye Shares which are Registrable
                        Securities, not later than 45 days following each
                        applicable date of their issuance to Holders by the
                        Company, and

                  (iv)  any Further Loudeye Shares which are Registrable
                        Securities, not later than 60 days following each
                        applicable date of their issuance to Holders by the
                        Company.

Each Registration Statement required to be filed hereunder shall contain a "Plan
of Distribution" section encompassing the selling Holders' intended methods of
distribution of the Registrable Securities included therein which has been
provided to the Company pursuant to Section 4(a) (except to the extent the
Company determines that modifications thereto are required by applicable law or
to satisfy comments of the Commission).

            (b)   The Company shall use commercially reasonable best efforts to
cause each such Registration Statement to be declared effective by the
Commission as soon as practicable after the date it is filed.

            (c)   The Company shall use commercially reasonable efforts to keep
each such Registration Statement continuously effective from the date on which
it is declared effective until the earlier of (i) the date which is twelve (12)
months following such effective date, (ii) all Registrable Securities covered
thereby have been sold or disposed of, or (iii) all Registrable Securities
covered thereby cease to be Registrable Securities.

            SECTION 3. REGISTRATION PROCEDURES.

            (a)   The Company shall promptly prepare and file with the
Commission such amendments and post-effective amendments to each Registration
Statement required to be filed hereunder as may be necessary to keep such
Registration Statement effective for the period specified in Section 2(c)
hereof; shall cause the Prospectus to be supplemented by any required Prospectus
supplement, and, as so supplemented, to be filed pursuant to Rule 424 under the
Securities Act; and shall comply with the provisions of the Securities Act
applicable to it with respect to the disposition of all Registrable Securities
covered thereby during the applicable period(s).

            (b)   The Company shall promptly furnish to any Holder of
Registrable Securities included in a Registration Statement, such number of
conformed copies of such Registration Statement and any post-effective amendment
thereto and such number of copies of the Prospectus (including each preliminary
Prospectus) and any amendments or supplements thereto, as any such Holder may
reasonably request in order to facilitate the public sale or other disposition
of the Registrable Securities covered thereby.

            (c)   The Company shall, on or prior to the date on which a
Registration Statement is declared effective, use commercially reasonable
efforts to register or qualify the Registrable Securities covered by such
Registration Statement under the securities or "blue sky" laws of such United
States jurisdictions as the Holders may reasonably request, or obtain
appropriate exemptions

                                       54

<PAGE>

therefrom; provided, however, that the Company shall not be required (i) to
qualify to do business in any jurisdiction where it would not otherwise be
required to so qualify but for this paragraph or (ii) to file any general
consent to service of process in any such jurisdiction.

            (d)   The Company shall promptly notify each Holder of Registrable
Securities included in a Registration Statement: (i) when such Registration
Statement or a Prospectus or any post-effective amendment or any Prospectus
supplement has been filed and, with respect to such Registration Statement or
any post-effective amendment, when the same has become effective; (ii) of any
request by the Commission or any state securities authority for amendments and
supplements to such Registration Statement and Prospectus after such
Registration Statement has become effective; (iii) of the issuance by the
Commission of any stop order suspending the effectiveness of such Registration
Statement or the initiation or threatening of any proceedings for that purpose;
and (iv) of the issuance by any state securities commission or other regulatory
authority of any order suspending the registration or qualification or exemption
from registration or qualification of any such Registrable Securities under
state securities or "blue sky" laws or the initiation of any proceedings for
that purpose.

            (e)   The Company shall use commercially reasonable efforts to
prevent the issuance of any order suspending the effectiveness of a Registration
Statement, and, if any such order suspending the effectiveness of a Registration
Statement is issued, shall use commercially reasonable efforts to obtain the
withdrawal of such order at the earliest practicable date.

            (f)   At any time when a Prospectus relating to the Registrable
Shares is required to be delivered under the Securities Act, the Company shall
promptly notify each Holder of Registrable Securities included in a Registration
Statement of the happening of any event of which the Company has knowledge which
makes any statement of a material fact made in such Registration Statement or
related Prospectus untrue or which requires the making of any changes in such
Registration Statement or Prospectus so that such Registration Statement or
Prospectus will not contain any untrue statement of a material fact or omit to
state any material fact required to be stated therein or necessary to make the
statements therein, in light of the circumstances under which they were made,
not misleading. The Company shall, as promptly as practicable thereafter,
prepare and file an amendment to such Registration Statement with the Commission
and furnish to any such Holders a supplement or amendment to such Prospectus so
that, as thereafter deliverable to the purchasers of such Registrable
Securities, such Prospectus will not contain any untrue statement of a material
fact or omit to state a material fact necessary to make the statements therein,
in light of the circumstances under which they were made, not misleading.

            (g)   The Company shall use commercially reasonable efforts to cause
the Registrable Securities included in a Registration Statement to be listed on
Nasdaq or such other national securities exchange or automated inter-dealer
quotation system, if any, on which the same type of securities issued by the
Company are then listed or traded, by the date of first sale of Registrable
Shares pursuant to the Registration Statement.

            (h)   The Company shall, if requested by the Holders, cooperate with
the Holders of Registrable Securities included in a Registration Statement to
facilitate the timely preparation and delivery of certificates representing
Registrable Securities sold under such Registration Statement to the purchasers
thereof, and enable such Registrable Securities to be in such denominations and
registered in such names as such Holders may reasonably request.

            (i) The Company shall provide a transfer agent and registrar and a
CUSIP number for all Registrable Securities covered by a Registration Statement,
in each case not later than the effective date of such Registration Statement.

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<PAGE>

            SECTION 4. HOLDERS' OBLIGATIONS.

            (a)   It shall be a condition precedent to the obligations of the
Company to take any action pursuant to Section 3 with respect to the Registrable
Securities of any selling Holder that such Holder shall timely furnish to the
Company all information regarding itself, the Registrable Securities held by it,
and such Holder's intended method of disposition of such Registrable Securities,
as may be requested by the Company in order to effect the registration and
disposition of such Registrable Securities pursuant to such Registration
Statement.

            (b)   Each Holder shall comply with any conditions reasonably
requested by the Company in order to comply with all applicable federal and
state laws, including, without limitation, compliance with all prospectus
delivery requirements of the Securities Act and with all anti-stabilization,
anti-manipulation and similar provisions of the Exchange Act and any rules
promulgated thereunder by the Commission, and to furnish to the Company
information about sales made in any offering.

            (c)   Each Holder of Registrable Securities included in a
Registration Statement, upon receipt of any notice from the Company of the
happening of any event of the kind described in Section 3(f), shall immediately
discontinue disposition of the Registrable Securities pursuant to such
Registration Statement until such Holder's receipt of copies of the supplemented
or amended Prospectus contemplated by Section 3(f) or until such Holder is
advised in writing by the Company that the use of the Prospectus may be resumed,
and such Holder has received copies of any additional or supplemental filings
which are incorporated by reference in the Prospectus; and, if so directed by
the Company, such Holder will deliver to the Company all copies, other than
permanent file copies then in such Holder's possession, of the Prospectus
covering such Registrable Securities current at the time of receipt of such
notice. The Company may provide appropriate stop orders to enforce this
paragraph.

            (d)   Each Holder shall cooperate with, and take such action as may
be reasonably requested by, the Company in order to carry out the provisions and
purposes of this Agreement and the transactions contemplated hereby.

            SECTION 5. REGISTRATION EXPENSES.

            (a)   The Company shall bear all costs and expenses incident to the
Company's performance of its registration obligations under this Agreement,
including, without limitation, all registration and filing fees of the
Commission, Nasdaq or the NASD, fees and expenses incurred in connection with
complying with state securities or "blue sky" laws, fees of transfer agents and
registrars, printing expenses, and fees and disbursements of counsel and
independent public accountants for the Company.

            (b)   All selling expenses including, without limitation,
underwriting discounts, selling commissions and brokers' fees, transfer taxes
(if any), and fees and disbursements of counsel to the Holders, incurred in
connection with the sale or other disposition of the Shares shall be borne by
the selling Holders.

            SECTION 6. INDEMNIFICATION AND CONTRIBUTION.

            (a) INDEMNIFICATION BY THE COMPANY.

            The Company agrees to indemnify and hold harmless, to the extent
permitted by law, each Holder and each Person, if any, who controls such Holder
within the meaning of either Section 15 of the Securities Act or Section 20 of
the Exchange Act (collectively, the "Controlling Persons"), from and against all
losses, claims, damages and liabilities (joint or several) (collectively,
"Damages") to which they may become subject under the Securities Act, the
Exchange Act or other federal or state

                                       56

<PAGE>

law, insofar as such Damages (or actions in respect thereof) arise out of or are
based upon any of the following statements, omissions or violations (each, a
"Violation"): (i) any untrue statement or alleged untrue statement of a material
fact contained in such Registration Statement, including any related Prospectus
contained therein or any amendments or supplements thereto, (ii) the omission or
alleged omission to state therein a material fact required to be stated therein,
or necessary to make the statements therein not misleading, or (iii) any
violation or alleged violation by the Company of the Securities Act, the
Exchange Act, any state securities law or any rule or regulation promulgated
under the Securities Act, the Exchange Act or any state securities law;
provided, however, that the Company shall not be liable for Damages to any
Holder or Controlling Person under this Section 6(a) to the extent that any such
Damages (i) were paid in settlement of any such loss, claim, damage, liability,
or action if such settlement is effected without the consent of the Company
(which consent shall not be unreasonably withheld), (ii) arise out of or are
based upon any such untrue statement or omission which is based upon information
relating to such Holder furnished to the Company by such Holder for use in any
Registration Statement or Prospectus (or amendment or supplement thereto); or
(iii) were caused by the fact that such Holder sold Registrable Securities to a
Person who was not sent or given, or deemed sent or given, at the time of or
prior to the written confirmation of such sale, a copy of the Prospectus as then
amended or supplemented, if the Company has previously furnished copies of such
amended or supplemented Prospectus to such Holder and such Damages were caused
by any untrue statement or omission or alleged untrue statement or omission
contained in the Prospectus so delivered which was corrected in such amended or
supplemented Prospectus.

            (b)   INDEMNIFICATION BY THE HOLDERS.

            In connection with any Registration Statement in which a Holder is
participating, each such Holder agrees to indemnify and hold harmless, to the
extent permitted by law, the Company, its directors and officers and each
Person, if any, who controls the Company within the meaning of either Section 15
of the Securities Act or Section 20 of the Exchange Act from and against all
Damages to which any of the foregoing persons may become subject under the
Securities Act, the Exchange Act or other federal or state law, insofar as such
Damages arise out of or are based upon any Violation, in each case to the extent
(and only to the extent) that such Violation occurs in reliance upon and in
conformity with information furnished by such Holder for use in connection with
such Registration Statement; provided, however, that the indemnity agreement
contained in this Section 6(b) shall not apply to amounts paid in settlement of
any such loss, claim, damage, liability or action if such settlement is effected
without the consent of the Holder, which consent shall not be unreasonably
withheld. In no event shall the liability of any Holder hereunder be greater in
amount than the dollar amount of the proceeds (net of underwriting discounts,
selling commissions and broker's fees, if any) received by such Holder upon the
sale of the Registrable Securities giving rise to such indemnification
obligation, except in the case of willful fraud by such Holder.

            (c)   INDEMNIFICATION PROCEDURES.

            Promptly after receipt by an indemnified party under this Section 6
of notice of the commencement of any action (including any governmental action),
such indemnified party will, if a claim in respect thereof is to be made against
any indemnifying party under this Section 7, deliver to the indemnifying party a
written notice of the commencement thereof and the indemnifying party shall have
the right to participate in, and, to the extent the indemnifying party so
desires, jointly with any other indemnifying party similarly noticed, to assume
the defense thereof with counsel mutually satisfactory to the parties; provided,
however, that an indemnified party (together with all other indemnified parties
which may be represented without conflict by one counsel) shall have the right
to retain one separate counsel, with the reasonable fees and expenses to be paid
by the indemnifying party, if representation of such indemnified party by the
counsel retained by the indemnifying party would be inappropriate due to actual
or potential differing interests between such indemnified party and any other
party represented by such counsel in such proceeding. The failure to deliver
written notice to the indemnifying party within a reasonable time of the
commencement of any such action, if prejudicial to its ability to defend such
action, shall relieve such indemnifying party of any liability to

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<PAGE>

the indemnified party under this Section 6, but the omission so to deliver
written notice to the indemnifying party will not relieve it of any liability
that it may have to any indemnified party otherwise than under this Section 7.
The indemnifying party shall not be liable for any settlement of any action
effected without its written consent (which consent shall not be unreasonably
withheld) but, if settled with such consent or if there be a final judgment for
the plaintiff, the indemnifying party agrees to indemnify each indemnified party
from and against any loss or liability by reason of such settlement or judgment.
No indemnifying party shall, without the prior written consent of any
indemnified party (which consent shall not be unreasonably withheld), effect any
settlement of any pending or threatened proceeding in respect of which such
indemnified party is a party and indemnity could have been sought hereunder by
such indemnified party, unless such settlement includes an unconditional release
of such indemnified party from all liability on all claims that are the subject
matter of such proceeding with no payment by such indemnified party of
consideration.

            (d)   CONTRIBUTION.

            If the indemnification from the indemnifying party provided for in
this Section 6 is found, pursuant to a final judicial determination not subject
to appeal, to be unavailable to an indemnified party hereunder in respect of any
Damages referred to therein, then the indemnifying party, in lieu of
indemnifying such indemnified party, shall contribute to the amount paid or
payable by such indemnified party as a result of such Damages in such proportion
as is appropriate to reflect the relative fault of the indemnifying party and
the indemnified parties in connection with the actions that resulted in such
Damages, as well as any other relevant equitable considerations; provided, that
in no event shall any contribution by a Holder under this Section 6(d) exceed
the net proceeds from the offering received by such Holder, except in the case
of willful fraud by such Holder. The relative fault of such indemnifying party
and indemnified parties shall be determined by reference to, among other things,
whether any action in question, including any untrue or alleged untrue statement
of a material fact or the omission or alleged omission to state a material fact,
has been made by, or relates to information supplied by, such indemnifying party
or indemnified parties, and the parties' relative intent, knowledge, access to
information and opportunity to correct or prevent such action. Each Holder's
obligation to contribute pursuant to this Section 6(d) is several and not joint
and shall be determined by reference to the proportion that the net proceeds of
the offering received by such Holder bears to the total net proceeds of the
offering received by all the Holders.

            (e)   SURVIVAL.

            The indemnities and obligations provided in this Section 6 shall
survive the completion of any offering of Registrable Shares and the transfer of
any Registrable Shares by the Holders.

            SECTION 7. BLACK-OUT PERIODS.

            Notwithstanding any other provision of this Agreement, the Company
shall be entitled to suspend or withdraw any Registration Statement for a period
(each a "BLACK-OUT PERIOD") not to exceed sixty (60) consecutive days and ninety
(90) days in the aggregate during any one-year period, at any time and from time
to time when the Company, in its good faith judgment, determines that the
continued offering of Registrable Shares would be detrimental to the Company.
Immediately upon the completion of a Black-Out Period, or such earlier date as
the Company determines in good faith that sales of Registrable Shares may
continue, it shall notify the Holders and take all steps reasonably necessary to
permit the Holders to resume sales under the applicable Registration Statement.

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<PAGE>

            SECTION 8. MISCELLANEOUS.

            (a)   AMENDMENTS AND WAIVERS.

            The provisions of this Agreement, including the provisions of this
sentence, may not be amended, modified or supplemented, and waivers or consents
to departures from the provisions hereof may not be given, unless the Company
has obtained the written consent of Holders which are affected by such
amendment, modification, supplement, waiver or consent.

            (b)   NOTICES.

            Any notice or other communication required to be given under this
Agreement or in connection with the matters contemplated by it shall, except
where otherwise specifically provided, be in writing in the English language and
shall be addressed to the parties at their respective addresses set forth on the
signature pages hereto and may be:

                  (i)   personally delivered, in which case it shall be deemed
                        to have been given upon delivery at the relevant
                        address; or

                  (ii)  if within the United Kingdom, sent by first class
                        pre-paid post, in which case it shall be deemed to have
                        been given two Business Days after the date of posting;
                        or

                  (iii) if from or to any place outside the United Kingdom, sent
                        by pre-paid airmail or by air courier, in which case it
                        shall be deemed to have been given seven Business Days
                        after the date of posting in the case of airmail or two
                        Business Days after delivery to the courier in the case
                        of air courier; or

                  (iv)  sent by fax, in which case it shall be deemed to have
                        been given when despatched, subject to confirmation of
                        uninterrupted transmission by a transmission report
                        provided that any notice despatched by fax after 17:00
                        hours (at the place where such fax is to be received) on
                        any day shall be deemed to have been received at 09:00
                        on the next Business Day.

            Any party to this Agreement may notify the other parties of any
change to its address provided that such notification shall only be effective on
the date specified in such notice or five Business Days after the notice is
given, whichever is later.

            (c)   SUCCESSORS AND ASSIGNS.

            This Agreement shall inure to the benefit of and be binding upon the
successors, assigns and transferees of each of the parties, including, without
limitation, subsequent Holders; provided, however, that no Holder shall be
entitled to assign its rights or obligations hereunder except in connection with
a transfer of at least 100,000 Shares to each such subsequent holder. Nothing in
this Agreement, express or implied, is intended to confer upon any party other
than the parties hereto or their respective successors and assigns any rights,
remedies, obligations, or liabilities under or by reason of this Agreement,
except as expressly provided in this Agreement.

            (d)   EXECUTION AND COUNTERPARTS.

            This Agreement may be executed in any number of counterparts and by
the parties hereto in separate counterparts, each of which when so executed
shall be deemed to be an original and all of which taken together shall
constitute one and the same agreement. In the event that any

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<PAGE>

signature is delivered by facsimile transmission, such signature shall create a
valid binding obligation of the party executing (or on whose behalf such
signature is executed) the same with the same force and effect as if such
facsimile signature were the original thereof.

            (e)   HEADINGS.

            The headings in this Agreement are for convenience of reference only
and shall not limit or otherwise affect the meaning hereof.

            (f)   GOVERNING LAW.

            All questions concerning the construction, validity, enforcement and
interpretation of this Agreement shall be governed by and construed and enforced
in accordance with the internal laws of the State of Delaware, without regard to
the principles of conflicts of law thereof. Each party agrees that all legal
proceedings concerning the interpretations, enforcement and defense of the
transactions contemplated by this Agreement (whether brought against a party
hereto or its respective affiliates, directors, officers, shareholders,
employees or agents) shall be commenced exclusively in the state and federal
courts sitting in Seattle, Washington. Each party hereto hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in
Seattle, Washington for the adjudication of any dispute hereunder or in
connection herewith or with any transaction contemplated hereby or discussed
herein, and hereby irrevocably waives, and agrees not to assert in any suit,
action or proceeding, any claim that it is not personally subject to the
jurisdiction of any such court, or that such suit, action or proceeding is
improper. Each party hereto hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by delivering a copy thereof via overnight delivery (with evidence of
delivery) to such party at the address in effect for notices to it under this
Agreement and agrees that such service shall constitute good and sufficient
service of process and notice thereof. Nothing contained herein shall be deemed
to limit in any way any right to serve process in any manner permitted by law.
Each party hereto hereby irrevocably waives, to the fullest extent permitted by
applicable law, any and all right to trial by jury in any legal proceeding
arising out of or relating to this Agreement or the transactions contemplated
hereby. If either party shall commence an action or proceeding to enforce any
provisions of this Agreement, then the prevailing party in such action or
proceeding shall be reimbursed by the other party for its attorneys fees and
other costs and expenses incurred with the investigation, preparation and
prosecution of such action or proceeding.

            (g)   SEVERABILITY.

            In the event that any one or more of the provisions contained
herein, or the application thereof in any circumstances, is held invalid,
illegal or unenforceable in any respect for any reason, the validity, legality
and enforceability of any such provision in every other respect and of the
remaining provisions contained herein shall not be in any way impaired thereby.

            (h)   ENTIRE AGREEMENT.

            This Agreement is intended by the parties as a final expression of
their agreement and is intended to be the complete and exclusive statement of
the agreement and understanding of the parties hereto in respect of the subject
matter contained herein. There are no restrictions, promises, warranties or
undertakings, other than those set forth or referred to herein. This Agreement
supersede all prior agreements and understandings between the parties with
respect to such subject matter.

            (i)   REMEDIES.

            In the event of a breach or a threatened breach by any party to this
Agreement of its obligations under this Agreement, any party injured or to be
injured by such breach will be entitled to specific performance of its rights
under this Agreement or to injunctive relief, in addition to being

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<PAGE>

entitled to exercise all rights provided in this Agreement and granted by law.
The parties agree that the provisions of this Agreement shall be specifically
enforceable, it being agreed by the parties that remedies at law for violations
hereof including monetary damages, are inadequate and that the right to object
in any action for specific performance or injunctive relief hereunder on the
basis that a remedy at law would be adequate is waived. The remedies provided
herein are cumulative and not exclusive of any remedies provided by law.

                                       61
<PAGE>

                                   APPENDIX IV

                        PROMISSORY NOTES - SUMMARY TERMS

The Promissory Notes will be issued by Loudeye and will constitute unsecured
obligations of Loudeye. The Promissory Notes will not contain any restrictions
on borrowing, disposals or charging of assets by any member of the Loudeye
Group.

There are three classes of Promissory Notes: Series A Notes, Series B Notes and
Series C Notes. Each class is summarised below.

SERIES A NOTES

Each note issued will bear interest at a fixed rate of 5 per cent. per annum.

The Series A Notes are redeemable in four stages. For tax planning reasons,
Series A Notes will not be redeemable in respect of that tranche until 30
December 2004; thereafter the Series A Notes are redeemable on each date on
which accepting OD2 shareholders would have been paid the corresponding amount
of cash consideration which they would otherwise have been entitled under the
Offer had they not elected for Notes, subject always to the share redemption
mechanism detailed below.

On any redemption date, Loudeye may elect to redeem the relevant portion of the
Series A Notes then due and payable together with accrued interest into a cash
equivalent number of Loudeye Shares based on the applicable Loudeye Share Price
determined in accordance with paragraph 2 of the Loudeye Letter.

Because the terms of the Offer do not include interest on Deferred
Consideration, the aggregate principal amount of the Series A Notes upon issue
will be discounted by an amount equal to the interest which will accrue during
its term. Holders of Series A Notes will be eligible to receive (subject to any
tax on the interest (see the letter from OD2)) the same amount of cash or
Loudeye Shares (at Loudeye's option) as if no election for Promissory Notes had
been made. Definitive numbers will be included in the relevant Promissory Notes,
however, purely by way of illustration, if a Shareholder would receive cash of
(pound)10,000 six months after issue of the Promissory Notes, that Shareholder
(having elected to receive Promissory Notes) would receive Series A Notes with a
principal amount of (pound)9,756. On redemption of these Series A Notes,
interest of (pound)244 would have accrued so that the redemption amount is
(pound)10,000.

No Series A Notes may be transferred except to personal representatives on the
death of the noteholder. Holders of Series A Notes shall not be entitled to
mortgage, charge, pledge or otherwise encumber the Series A Notes without the
prior written consent of Loudeye.

The Series A Notes are expected to be non Qualifying Corporate Bonds for CGT
purposes.

SERIES B NOTES

The aggregate principal amount of Series B Notes to be issued will be calculated
at the time the relevant amounts are determined in respect of the First Earn-out
Period, the Second Earn-out Period, the Third Earn-out Period and the Fourth
Earn-out Period (as such terms are defined in Appendix II of this document).

The Series B Notes will be issued only after the above amounts have been
determined.

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<PAGE>

The Series B Notes are repayable on the first Business Day falling on or
immediately after the date falling six months and one day from the date of
issue.

Each Series B Note issued will bear interest at a fixed rate of 5 per cent. per
annum.

No Series B Notes may be transferred except to personal representatives on the
death of the noteholder. Holders of Series B Notes shall not be entitled to
mortgage, charge, pledge or otherwise encumber the Series B Notes without the
prior written consent of Loudeye.

The Series B Notes are expected to be Qualifying Corporate Bonds for CGT
purposes.

SERIES C NOTES

The Series C Notes are identical to the Series B Notes in all respects, save
that the Series C Notes are expected to be non Qualifying Corporate Bonds for
CGT purposes.

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                                  APPENDIX VII

                            OPTIONHOLDER ALTERNATIVE

The following provisions of this Appendix VII shall apply with respect to
Optionholders electing to participate in the Optionholder Alternative:

1.    An election to participate in the Optionholder Alternative by completion
      of: (i) Box 7 of the Form of Acceptance and Election; and (ii) the
      National Insurance Joint Election at schedule 5 of the Form of Acceptance
      and Election, by AN OPTIONHOLDER HOLDING OD2 OPTIONS GRANTED UNDER THE
      UNAPPROVED PLAN shall constitute the agreement of the relevant
      Optionholder with the Company and Loudeye to the terms of the Option
      Exchange Agreement set out in EXHIBIT A to this Appendix VII.

2.    An election to participate in the Optionholder Alternative by completion
      of: (i) Box 7 of the Form of Acceptance and Election; and (ii) the
      National Insurance Joint Election at schedule 6 of the Form of Acceptance
      and Election, by AN OPTIONHOLDER HOLDING NON-EXECUTIVE OPTIONS shall
      constitute the agreement of the relevant Optionholder with the Company and
      Loudeye to the terms of the Option Exchange Agreement set out in EXHIBIT B
      to this Appendix VII.

3.    Following receipt by Loudeye of a completed Form of Acceptance and
      Election and National Insurance Joint Election and Completion of the Offer
      Loudeye will prepare and send to each relevant Optionholder a conformed
      copy of the relevant Option Exchange Agreement for reference.

4.    Each Optionholder electing to participate in the Optionholder Alternative
      agrees that OD2 may enforce the terms of the Option Exchange Agreement set
      out in Exhibit A or Exhibit B (as appropriate) which are expressed to be
      for its benefit subject to and in accordance with the provisions of the
      Contracts (Rights of Third Parties) Act 1999.

                                      143

<PAGE>

EXHIBIT A

            ON DEMAND DISTRIBUTION LIMITED EMPLOYEE SHARE OPTION PLAN
         (ADOPTED IN 2001 AND AS AMENDED IN 2001 AND 2003) (the "PLAN")

                   OPTION EXCHANGE AGREEMENT (the "AGREEMENT")

WHEREAS

A.    The Optionholder was granted option(s) (the "OLD OPTION") over Shares in
      On Demand Distribution Limited ("OD2") under the Plan and pursuant to an
      option agreement effecting the Old Option (the "OLD OPTION AGREEMENT").

B.    Loudeye Corp. of 1130 Rainier Avenue South Seattle, Washington 98144, USA
      ("LOUDEYE") has made an offer (the "OFFER") to acquire all of the issued
      and to be issued ordinary share capital of OD2, pursuant to an offer
      document dated 22 June 2004 (the "OFFER DOCUMENT")

C.    This Agreement is conditional upon and shall have no effect until the
      Offer becomes unconditional in all respects (the "EFFECTIVE DATE").

D.    Pursuant to the terms of clause 2.6 of the Old Option Agreement and rule 6
      of the Plan, the Optionholder has agreed to release the Old Option in
      consideration of the grant to him/her of the Exchanged Option (as defined
      in clause 1).

E.    The capitalised terms in this Agreement that are not defined within the
      Agreement have the meaning assigned to them in the Plan.

F.    The Exchanged Option will be governed by the Plan, as amended by this
      Agreement except to the extent that this Agreement contains provisions
      that conflicts with the Plan, in which case the terms of this Agreement
      will apply and take priority over the Plan.

THE PARTIES AGREE AS FOLLOWS:-

1.    DETAILS OF THE EXCHANGED OPTION

<TABLE>
<S>                                     <C>
DETAILS OF VESTING:                     the Exchanged Option will be fully vested
                                        and exercisable on the Effective Date, but
                                        will not be vested or exercisable to any
                                        extent until then

DESCRIPTION OF SHARES UNDER EXCHANGED   shares of Common Stock, par value USD0.001
OPTION:                                 per share, of Loudeye Corp ("LOUDEYE
                                        SHARES")
</TABLE>

                                      144

<PAGE>

<TABLE>
<S>                                        <C>
MAXIMUM NUMBER OF LOUDEYE SHARES           A = 0.8706 x B; where:
UNDER EXCHANGED OPTION:
                                               A = number of Loudeye Shares under
                                               the Exchanged Option; and

                                               B = number of OD2 Shares under the
                                               Old Option

Price at which each Loudeye Share can      USD0.001
be purchased on exercise of the Exchanged
Option ("NEW EXERCISE PRICE"):

EXPIRATION  DATE                           Unless the Exchanged Option expires or
                                           lapses earlier pursuant to this
                                           Agreement or the Plan, the Exchanged
                                           Option shall expire on and not be
                                           exercisable after the day before the
                                           tenth anniversary of the date of grant
                                           of the Old Option.
</TABLE>

2.    RELEASE OF THE OLD OPTION

      As of the Effective Date (i) the Optionholder releases the Old Option by
      releasing OD2 from its obligations under the Old Option to issue OD2
      Shares to the Optionholder under the terms of the Plan and the Old Option
      Agreement; and (ii) the Optionholder agrees that he/she has no rights
      whatsoever under or in respect of:

      a.    the Old Option; or

      b.    the Old Option Agreement.

3.    GRANT OF THE EXCHANGED OPTION

3.1   As of the Effective Date, Loudeye hereby grants to the Optionholder the
      Exchanged Option.

3.2   The Exchanged Option will be subject to the terms and conditions set out
      or referred to in this Agreement and the Plan, as amended from time to
      time.

3.3   If there are any inconsistencies or conflicts between the terms of the
      Plan and the terms of this Agreement, the terms of this Agreement will
      apply and take precedence over the terms of the Plan.

4.    EXERCISE AND LAPSE OF THE EXCHANGED OPTION

4.1   The Exchanged Option will only be validly exercised if exercised in
      accordance with this Agreement.

4.2   To exercise the Exchanged Option, the Optionholder must complete the
      Notice of Exercise attached to this Agreement as the Exhibit.

4.3   Except as otherwise specified in the Plan (including rules 4.9 to 4.11 of
      the Plan), on the date the Optionholder ceases to hold any office or
      employment with OD2 or any other associated company, the Exchanged Option
      will lapse.

                                      145

<PAGE>

5.    TAX AND NATIONAL INSURANCE CONTRIBUTIONS

5.1   All liability for any tax, or Employer's NICs (as defined in clause 5.5
      below) or employee's National Insurance contributions (or their equivalent
      in any non-UK jurisdiction) in respect of the grant or exercise of or
      other dealing in the Exchanged Option or sale of the Loudeye Shares
      ("TAX") will be the responsibility of and borne by the Optionholder, or
      where the Optionholder has died, his personal representatives (the
      Optionholder and his personal representatives (where applicable) together
      in this clause 5 referred to as the "OPTIONHOLDER").

5.2   Neither Loudeye nor OD2 makes any representation to the Optionholder with
      regard to the Tax that may arise as a consequence of surrendering and
      releasing the Old Option, the grant of the Exchanged Option or the
      exercise of the Exchanged Option.

5.3   The Optionholder will indemnify and keep indemnified his or her employer,
      Loudeye and OD2 from and against any liability for, or obligation to pay,
      any Tax.

5.4   The Exchanged Option cannot be exercised until the Optionholder has
      entered into an election with his/her employer (in a form approved by
      Loudeye and the Inland Revenue) (an "ELECTION AGREEMENT") under which any
      liability of that employer or Loudeye for Employer's NICs arising in
      respect of the issuance, vesting, exercise of or other dealing in the
      Exchanged Option is transferred to and met by the Optionholder.

5.5   "EMPLOYER'S NICS" means the amount of employer's National Insurance
      contributions that arise upon the grant or exercise of or other dealing in
      the Exchanged Option or sale of the Loudeye Shares less the amount of
      employer's NICs that would have arisen had the Optionholder exercised his
      options under the OD2 Plan at the fair market at 21 June 2004 (with 'fair
      market value' per OD2 Share for this purpose (as determined by the OD2
      Board) being 62.80p).

6.    ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, MERGER OR CERTAIN OTHER
      TRANSACTIONS

6.1   Notwithstanding anything to the contrary in the Plan or otherwise, subject
      to any required action by the stockholders of Loudeye, the number of
      Loudeye Shares under the Exchanged Option and the New Exercise Price shall
      be proportionately adjusted for any increase or decrease in the number of
      Loudeye Shares resulting from a stock split, reverse stock split, stock
      dividend, combination, recapitalization or reclassification of Loudeye
      Shares, or any other increase or decrease in the number of issued Loudeye
      Shares effected without receipt of consideration by Loudeye which occurs
      after the Effective Date; provided, however, that conversion of any
      convertible securities of Loudeye shall not be deemed to have been
      "effected without receipt of consideration" and further provided that the
      exercise price shall not be reduced below the par value per Loudeye Share.
      Such adjustment shall be made by the Board of Loudeye, whose determination
      in that respect shall be final, binding and conclusive. Except as
      expressly provided herein, no issuance by Loudeye 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 Loudeye Shares under the Exchanged
      Option.

6.2   In the event of the dissolution or liquidation of Loudeye, the Exchanged
      Option shall lapse and terminate immediately prior to the consummation of
      such action, unless otherwise determined by the Board of Loudeye.

6.3   Notwithstanding anything to the contrary in the Plan or otherwise, in the
      event of a Corporate Transaction (as defined below), the Exchanged Option
      shall be assumed or an equivalent option shall be substituted by such
      successor corporation or a parent or subsidiary of such

                                      146

<PAGE>

      successor corporation (the "SUCCESSOR CORPORATION"), unless the Successor
      Corporation does not agree to assume the award or to substitute an
      equivalent option, in which case the Exchanged Option shall lapse and
      terminate upon the consummation of the transaction.

6.4   Notwithstanding the terms of clause 6.3, in the event of a Change in
      Control (as defined below), if :

      a.    the Successor Corporation so agrees, the Exchanged Option may either
            be:

            (i)   assumed or replaced with an equivalent option by the Successor
                  Corporation; or

            (ii)  replaced with a cash incentive program of the Successor
                  Corporation based on the value of the Exchanged Option at the
                  time of the consummation of the transaction.

      b.    the Exchanged Option is not being assumed or replaced with an
            equivalent option by the Successor Corporation, then to the extent
            that it is not exercised prior to consummation of a Change of
            Control transaction, the Exchanged Option shall lapse and terminate
            upon such consummation.

6.5   For purposes of this clause 6.4, a Exchanged 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, the Optionholder would be entitled to receive upon
      exercise of the new 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
      Optionholder had been, immediately prior to such transaction, the holder
      of the number of Loudeye Shares covered by the award at such time (after
      giving effect to any adjustments in the number of shares covered by the
      Exchanged Option as provided for in this Agreement); provided that if such
      consideration received in the transaction is not solely common stock of
      the Successor Corporation, the Board of Loudeye 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 the Loudeye's common stock in the transaction.

6.6   For purposes of this Agreement, "CHANGE OF CONTROL" means a sale of all or
      substantially all of Loudeye's assets, or any merger or consolidation of
      Loudeye 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 Loudeye 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 Loudeye, or such surviving entity, outstanding immediately
      after such transaction.

6.7   For purposes of this Agreement, "CORPORATE TRANSACTION" means a sale of
      all or substantially all of Loudeye's assets, or a merger, consolidation
      or other capital reorganization of Loudeye with or into another
      corporation.

7.    OPTIONHOLDER'S ACKNOWLEDGEMENT AND UNDERTAKING

7.1   The Optionholder acknowledges and agrees:

                                      147

<PAGE>

      a.    that nothing in this Agreement, nor in the Plan, shall confer upon
            the Optionholder any right with respect to the continuation of
            his/her employment or appointment as an officer by any OD2 or any
            associated company; and

      b.    to accept as binding, conclusive and final all decisions or
            interpretations made by or on behalf of Loudeye in respect of any
            questions arising under the Plan.

8.    MISCELLANEOUS

8.1   Notwithstanding anything to the contrary, the Optionholder agrees to
      cooperate with Loudeye to further amend the Exchanged Option to the extent
      Loudeye determines it is necessary or desirable in order to accommodate
      United States legal or tax considerations or to conform such Exchanged
      Option to the terms and conditions of the Loudeye 2000 Stock Option Plan
      (titled the Loudeye Technologies, Inc. 2000 Stock Plan) and any form
      option agreements thereunder, provided that any amendment which adversely
      affects the rights of Employee Optionholders as a whole to a material
      extent requires the prior consent of Employee Optionholder(s) holding
      between them more than 50 per cent. of the outstanding Exchanged Options.

8.2   This Agreement is governed by and is to be construed in accordance with
      the laws of the State of Delaware of the United States of America.

8.3   The Optionholder agrees that the Loudeye Shares issuable upon exercise of
      the Exchanged Option shall be subject to the transfer restrictions set
      forth in Part D of Appendix I of the Offer Document and, unless registered
      under the Securities Act of 1933, as amended, will bear the following
      legend:

      THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE
      SECURITIES OR BLUE SKY LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE ACT, REGULATION S PROMULGATED UNDER THE
      ACT OR ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
      THE ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS AND, IN THE
      CASE OF A TRANSACTION NOT SUBJECT TO SUCH REGISTRATION REQUIREMENTS,
      UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION
      UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SHARES REPRESENTED BY
      THIS CERTIFICATE MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

                                      148

<PAGE>

                                     EXHIBIT

                               NOTICE OF EXERCISE

To:      Loudeye Corp.

Attn:    Stock Option Administrator

Subject: Notice of Intention to Exercise Exchanged Option

         This is official notice that the undersigned ("OPTIONHOLDER")
         intends to exercise Optionholder's option to purchase __________
         shares of Loudeye Corp. Common Stock, under and pursuant to the On
         Demand Distribution Limited Employee Share Option Plan and the
         Option Exchange Agreement (the "AGREEMENT") dated _______________as
         follows:

Grant Number:                        __________________________________

Date of Purchase:                    __________________________________

Number of Loudeye Shares:            __________________________________

New Exercise Price per Loudeye Share:__________________________________

Method of Payment of
Purchase Price:                      __________________________________

Social Security No.:                 __________________________________

The shares should be issued as follows:

Name:    ______________________________

Address: ______________________________

         ______________________________

         ______________________________

I agree:

(a)   pursuant to clause 5 of the Agreement and rule 11 of the Plan to indemnify
      Loudeye Corp. and any of its subsidiaries, including my employer in
      respect of any Tax (as defined in clause 5.1 of the Option Exchange
      Agreement) which arises as a result of the grant, exercise of or other
      dealing in the Exchanged Option; and

                                      149

<PAGE>

(b)   that the issue of these Loudeye Shares to me shall be conditional upon my
      first making arrangements to the satisfaction of Loudeye Corp. to
      discharge any such Tax, including the giving of an appropriate power of
      attorney and (if required by Loudeye Corp.) entering into an election
      pursuant to clause 5 of the Agreement to transfer the primary
      responsibility to pay part of the employer's National Insurance
      contributions to myself.

Signed:  ______________________________  Date: ______________________________

Name:    ______________________________

NOTES:

(1)   This form must be accompanied by payment of the aggregate New Exercise
      Price for the Loudeye Shares in respect of which the Exchanged Option is
      exercised.

(2)   IMPORTANT neither Loudeye nor OD2 gives any advice to you on the tax
      consequences of exercising the Exchanged Option. If you are unsure of the
      tax liabilities that may arise, you should take professional advice before
      exercising the Exchanged Option.

                                      150

<PAGE>

EXHIBIT B

            ON DEMAND DISTRIBUTION LIMITED NON-EXECUTIVE SHARE OPTION

                   OPTION EXCHANGE AGREEMENT (the "AGREEMENT")

WHEREAS

A.    The Optionholder was granted option(s) (the "OLD OPTION") over ordinary
      shares in On Demand Distribution Limited ("OD2") pursuant to a letter
      agreement dated 24th April, 2003 effecting the Old Option (the "OLD OPTION
      AGREEMENT").

B.    Loudeye Corp. of 1130 Rainier Avenue South Seattle, Washington 98144, USA
      ("LOUDEYE") has made an offer (the "OFFER") to acquire all of the issued
      and to be issued ordinary share capital of OD2, pursuant to an offer
      document dated 22 June 2004 (the "OFFER DOCUMENT").

C.    This Agreement is conditional upon and shall have no effect until the
      Offer becomes unconditional in all respects (the "EFFECTIVE DATE").

D.    Pursuant to the terms of paragraph 10 of the Old Option Agreement, the
      Optionholder has agreed to release the Old Option in consideration of the
      grant to him/her of the Exchanged Option (as defined in clause 1).

THE PARTIES AGREE AS FOLLOWS:-

1.    DETAILS OF THE EXCHANGED OPTION

<TABLE>
<S>                                                    <C>
DETAILS OF VESTING:                                    the Exchanged Option will be fully vested and exercisable on the
                                                       Effective Date, but will not be vested or exercisable to any
                                                       extent until then

DESCRIPTION OF SHARES UNDER EXCHANGED OPTION:          shares of Common Stock, par value $0.001 per share, of Loudeye
                                                       Corp ("LOUDEYE SHARES")

MAXIMUM NUMBER OF LOUDEYE SHARES UNDER EXCHANGED       A = 0.8706 x B; where:
OPTION:
                                                           A = number of Loudeye Shares under the Exchanged Option; and

                                                           B = number of OD2 Shares under the Old Option

Price at which each Loudeye Share can be  purchased    USD0.001
on exercise of the Exchanged Option ("NEW EXERCISE
PRICE"):
</TABLE>

2.    RELEASE OF THE OLD OPTION

      As of the Effective Date (i) the Optionholder releases the Old Option by
      releasing OD2 from its obligations under the Old Option to issue OD2
      Shares to the Optionholder under the terms

                                      151

<PAGE>

      of the Old Option Agreement; and (ii) the Optionholder agrees that he/she
      has no rights whatsoever under or in respect of:

      a.    the Old Option; or

      b.    the Old Option Agreement.

3.    GRANT OF THE EXCHANGED OPTION

3.1   As of the Effective Date, Loudeye hereby grants to the Optionholder the
      Exchanged Option.

3.2   The Exchanged Option will be subject to the terms and conditions set out
      or referred to in this Agreement, as amended from time to time.

4.    EXERCISE AND LAPSE OF THE EXCHANGED OPTION

4.1   The Exchanged Option will only be validly exercised if exercised in
      accordance with this Agreement.

4.2   To exercise the Exchanged Option, the Optionholder must complete the
      Notice of Exercise attached to this Agreement as the Exhibit.

4.3   In the event that the Optionholder ceases to hold the office of
      non-executive director of OD2, the Exchanged Option shall lapse three
      months after the later to occur of:

      a.    the date on which you cease to hold the office of non-executive
            director of OD2; or

      b.    the date on which you cease to hold any Loudeye Shares.

4.4   Subject to the other provisions of this Agreement, in the event of the
      Optionholder's death, your personal representatives may exercise the
      Exchanged Option during the period of 12 months after the date of death,
      after which it shall lapse.

4.5   The Exchanged Option shall not under any circumstances be capable of
      exercise later than 24 April 2013.

5.    TAX AND NATIONAL INSURANCE CONTRIBUTIONS

5.1   All liability for any tax, or Employer's NICs (as defined in clause 5.5
      below) or employee's National Insurance contributions (or their equivalent
      in any non-UK jurisdiction) in respect of the grant or exercise of or
      other dealing in the Exchanged Option or sale of the Loudeye Shares
      ("TAX") will be the responsibility of and borne by the Optionholder, or
      where the Optionholder has died, his personal representatives (the
      Optionholder and his personal representatives (where applicable) together
      in this clause 5 referred to as the "OPTIONHOLDER").

5.2   Neither Loudeye nor OD2 makes any representation to the Optionholder with
      regard to the Tax that may arise as a consequence of surrendering and
      releasing the Old Option, the grant of the Exchanged Option or the
      exercise of the Exchanged Option.

5.3   The Optionholder will indemnify and keep indemnified his or her employer,
      Loudeye and OD2 from and against any liability for, or obligation to pay,
      any Tax.

5.4   The Exchanged Option cannot be exercised until the Optionholder has
      entered into an election with his/her employer (in a form approved by
      Loudeye and the Inland Revenue) (an "ELECTION AGREEMENT") under which any
      liability of that employer or Loudeye for Employer's NICs

                                      152

<PAGE>

      arising in respect of the issuance, vesting, exercise of or other dealing
      in the Exchanged Option is transferred to and met by the Optionholder.

5.5   "EMPLOYER'S NICS" means the amount of employer's National Insurance
      contributions that arise upon the grant or exercise of or other dealing in
      the Exchanged Option or sale of the Loudeye Shares less the amount of
      employer's NICs that would have arisen had the Optionholder exercised his
      Non-Executive Options at the fair market value at 21 June 2004 (with 'fair
      market value' per OD2 Share for this purpose (as determined by the OD2
      Board) being 62.80p).

6.    ADJUSTMENTS UPON CHANGES IN CAPITALIZATION, MERGER OR CERTAIN OTHER
      TRANSACTIONS

6.1   Subject to any required action by the stockholders of Loudeye, the number
      of Loudeye Shares under the Exchanged Option and the New Exercise Price
      shall be proportionately adjusted for any increase or decrease in the
      number of Loudeye Shares resulting from a stock split, reverse stock
      split, stock dividend, combination, recapitalization or reclassification
      of Loudeye Shares, or any other increase or decrease in the number of
      issued Loudeye Shares effected without receipt of consideration by Loudeye
      which occurs after the Effective Date; provided, however, that conversion
      of any convertible securities of Loudeye shall not be deemed to have been
      "effected without receipt of consideration" and further provided that the
      exercise price shall not be reduced below the par value per Loudeye Share.
      Such adjustment shall be made by the Board of Loudeye, whose determination
      in that respect shall be final, binding and conclusive. Except as
      expressly provided herein, no issuance by Loudeye 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 Loudeye Shares under the Exchanged
      Option.

6.2   In the event of the dissolution or liquidation of Loudeye, the Exchanged
      Option shall lapse and terminate immediately prior to the consummation of
      such action, unless otherwise determined by the Board of Loudeye.

6.3   In the event of a Corporate Transaction (as defined below), the Exchanged
      Option shall be assumed or an equivalent option 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, in which case the Exchanged Option shall lapse and
      terminate upon the consummation of the transaction.

6.4   Notwithstanding the terms of clause 6.3, in the event of a Change in
      Control (as defined below), if :

      a.    the Successor Corporation so agrees, the Exchanged Option may either
            be:

            (i)   assumed or replaced with an equivalent option by the Successor
                  Corporation; or

            (ii)  replaced with a cash incentive program of the Successor
                  Corporation based on the value of the Exchanged Option at the
                  time of the consummation of the transaction.

      b.    the Exchanged Option is not being assumed or replaced with an
            equivalent option by the Successor Corporation, then to the extent
            that it is not exercised prior to consummation of a Change of
            Control transaction, the Exchanged Option shall lapse and terminate
            upon such consummation.

                                      153

<PAGE>

6.5   For purposes of this clause 6.4, a Exchanged 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, the Optionholder would be entitled to receive upon
      exercise of the new 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
      Optionholder had been, immediately prior to such transaction, the holder
      of the number of Loudeye Shares covered by the award at such time (after
      giving effect to any adjustments in the number of shares covered by the
      Exchanged Option as provided for in this Agreement); provided that if such
      consideration received in the transaction is not solely common stock of
      the Successor Corporation, the Board of Loudeye 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 the Loudeye's common stock in the transaction.

6.6   For purposes of this Agreement, "CHANGE OF CONTROL" means a sale of all or
      substantially all of Loudeye's assets, or any merger or consolidation of
      Loudeye 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 Loudeye 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 Loudeye, or such surviving entity, outstanding immediately
      after such transaction.

6.7   For purposes of this Agreement, "CORPORATE TRANSACTION" means a sale of
      all or substantially all of Loudeye's assets, or a merger, consolidation
      or other capital reorganization of Loudeye with or into another
      corporation.

7.    OPTIONHOLDER'S ACKNOWLEDGEMENT AND UNDERTAKING

7.1   The Optionholder acknowledges and agrees:

      a.    that nothing in this Agreement shall confer upon the Optionholder
            any right with respect to the continuation of his/her employment or
            appointment as an officer by any OD2 or any associated company;

      b.    the Exchanged Option does not form part of the terms of the
            Optionholder's appointment to the office of non-executive director
            of OD2 or in any way entitle the Optionholder to take into account
            the Exchanged Option in calculating any compensation or damages on
            the termination of his office which might otherwise be payable to
            him; and

      c.    to accept as binding, conclusive and final all decisions or
            interpretations made by or on behalf of Loudeye in respect of any
            questions arising under this Agreement.

8.    TRANSFER

      The Exchanged Option is not transferable.

9.    MISCELLANEOUS

9.1   Notwithstanding anything to the contrary, the Optionholder agrees to
      cooperate with Loudeye to further amend the Exchanged Option to the extent
      Loudeye determines it is necessary or desirable in order to accommodate
      United States legal or tax considerations or to conform such Exchanged
      Option to the terms and conditions of the Loudeye 2000 Stock option Plan

                                      154

<PAGE>

      (titled the Loudeye Technologies, Inc. 2000 Stock Plan) and any form
      option agreements thereunder, provided that any amendment which adversely
      affects the rights of Employee Optionholders as a whole to a material
      extent requires the prior consent of Employee Optionholder(s) holding
      between them more than 50 per cent. of the outstanding Exchanged Options.

9.2   Any Notice to be given to the Optionholder in respect of the Exchanged
      Option shall be delivered to the Optionholder in person or sent by first
      class pre-paid post to you at your last known home address, according to
      Loudeye's records, or at such other address as may appear to Loudeye to be
      appropriate. Any notice so delivered or sent to the Optionholder will be
      deemed to have been given on the date of delivery, or, as the case may be,
      on the next following business day after the date of posting.

9.3   This Agreement is governed by and is to be construed in accordance with
      the laws of the State of Delaware of the United States of America.

9.4   The Optionholder agrees that the Loudeye Shares issuable upon exercise of
      the Exchanged Option shall be subject to the transfer restrictions set
      forth in Part D of Appendix I of the Offer Document and, unless registered
      under the Securities Act of 1933, as amended, will bear the following
      legend:

      THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN REGISTERED
      UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"), OR UNDER THE
      SECURITIES OR BLUE SKY LAWS OF ANY STATE AND MAY NOT BE OFFERED, SOLD,
      TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT TO AN EFFECTIVE
      REGISTRATION STATEMENT UNDER THE ACT, REGULATION S PROMULGATED UNDER THE
      ACT OR ANOTHER AVAILABLE EXEMPTION FROM THE REGISTRATION REQUIREMENTS OF
      THE ACT AND ANY APPLICABLE STATE SECURITIES OR BLUE SKY LAWS AND, IN THE
      CASE OF A TRANSACTION NOT SUBJECT TO SUCH REGISTRATION REQUIREMENTS,
      UNLESS THE COMPANY HAS RECEIVED AN OPINION OF COUNSEL REASONABLY
      SATISFACTORY TO IT THAT SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION
      UNDER THE ACT. HEDGING TRANSACTIONS INVOLVING THE SHARES REPRESENTED BY
      THIS CERTIFICATE MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

                                      155

<PAGE>

                                     EXHIBIT

                               NOTICE OF EXERCISE

To:      Loudeye Corp.

Attn:    Stock Option Administrator

Subject: Notice of Intention to Exercise Exchanged Option

         This is official notice that the undersigned ("OPTIONHOLDER")
         intends to exercise Optionholder's option to purchase __________
         shares of Loudeye Corp. Common Stock, under and pursuant to the
         Option Exchange Agreement (the "AGREEMENT") dated _______________as
         follows:

Grant Number:                        __________________________________

Date of Purchase:                    __________________________________

Number of Loudeye Shares:            __________________________________

New Exercise Price per Loudeye Share:__________________________________

Method of Payment of
Purchase Price:                      __________________________________

Social Security No.:                 __________________________________

The shares should be issued as follows:

Name:    ______________________________

Address: ______________________________

         ______________________________

         ______________________________

I agree:

(a)   pursuant to clause 5 of the Agreement to indemnify Loudeye Corp. and any
      of its subsidiaries, including my employer in respect of any Tax (as
      defined in clause 5.1 of the Option Exchange Agreement) which arises as a
      result of the grant, exercise of or other deaking in the Exchanged Option;
      and

                                      156

<PAGE>

(b)   that the issue of these Loudeye Shares to me shall be conditional upon my
      first making arrangements to the satisfaction of Loudeye Corp. to
      discharge any such Tax, including the giving of an appropriate power of
      attorney and (if required by Loudeye Corp.) entering into an election
      pursuant to clause 5 of the Agreement to transfer the primary
      responsibility to pay employer's National Insurance contributions to
      myself.

Signed:______________________________  Date: ______________________________

Name:  ______________________________

NOTES:

(1)   This form must be accompanied by payment of the aggregate New Exercise
      Price for the Loudeye Shares in respect of which the Exchanged Option is
      exercised.

(2)   IMPORTANT neither Loudeye nor OD2 gives any advice to you on the tax
      consequences of exercising the Exchanged Option. If you are unsure of the
      tax liabilities that may arise, you should take professional advice before
      exercising the Exchanged Option.

                                      157<PAGE>

                                                                    EXHIBIT 10.2

                               DATED 22 JUNE 2004

                               THE SEVERAL PERSONS
                                (as the Obligors)

                      -------------------------------------

                       DEED POLL OF WARRANTY AND INDEMNITY

                      -------------------------------------

                                 99 Bishopsgate
                                 London EC2M 3XF
                            +44 (0)20 7710 1000 (Tel)
                            +44 (0)20 7374 4460 (Fax)
                                   www.lw.com

                  Contact: Mike Bond / Rory Negus / Nick Cline

<PAGE>

                                    CONTENTS

<TABLE>
<CAPTION>
Clause                                                                                                                  Page
------                                                                                                                  ----
<S>                                                                                                                     <C>
1.       Interpretation...........................................................................................        1
         1.1      Definitions.....................................................................................        1
         1.2      Construction of certain references..............................................................        3
         1.3      Several liabilities.............................................................................        4
         1.4      Headings........................................................................................        4
         1.5      Schedules.......................................................................................        4

2.       Warranties...............................................................................................        5
         2.1      General.........................................................................................        5
         2.2      Purchaser's knowledge...........................................................................        5
         2.3      Warranties to be independent....................................................................        5
         2.4      Damages.........................................................................................        5
         2.5      Waiver of Claims................................................................................        5

3.       Restriction of Warrantors................................................................................        6
         3.1      Peter Gabriel...................................................................................        6
         3.2      Restricted Business.............................................................................        6
         3.3      Undertakings....................................................................................        6
         3.4      Separate undertakings...........................................................................        7
         3.5      Reasonableness..................................................................................        7
         3.6      Void or unenforceable restrictions..............................................................        7
         3.7      Confidential information concerning the Company.................................................        8

4.       Indemnities..............................................................................................        8
         4.1      Tax  ...........................................................................................        8
         4.2      Failure to give notice..........................................................................        8
         4.3      Termination of Subscription Agreement...........................................................        8

5.       Working capital adjustment...............................................................................        8

6.       Orderly sales restrictions...............................................................................        8

7.       Confidentiality..........................................................................................        9
         7.1      Confidentiality.................................................................................        9
         7.2      Permitted disclosure or use.....................................................................        9
         7.3      Continuance of restrictions.....................................................................        9

8.       Announcements............................................................................................       10
         8.1      Restrictions....................................................................................       10
         8.2      Permitted announcements.........................................................................       10
         8.3      Continuance of restrictions.....................................................................       10
         8.4      Announcements to customers and suppliers........................................................       10

9.       Provisions relating to this Deed.........................................................................       10
         9.1      Exchange rates..................................................................................       10
         9.2      Assignment......................................................................................       10
         9.3      Whole agreement and variations..................................................................       11
         9.4      Deed survives Completion........................................................................       11
         9.5      Rights etc cumulative and other matters.........................................................       11
         9.6      Release of Warrantors...........................................................................       11
         9.7      Invalidity......................................................................................       11
</TABLE>

                                       i
<PAGE>

<TABLE>
<S>                                                                                                                      <C>
         9.8      Counterparts....................................................................................       11
         9.9      Costs...........................................................................................       11
         9.10     Termination.....................................................................................       12
         9.11     Notices.........................................................................................       12

10.      Law and Jurisdiction.....................................................................................       14
         10.1     English Law.....................................................................................       14
         10.2     Jurisdiction....................................................................................       14
         10.3     Process Agent...................................................................................       14
         10.4     Contracts (Rights of Third Parties) Act 1999....................................................       15

schedule 1 : The Warrantors.......................................................................................       16

schedule 2 : The Investors........................................................................................       17

schedule 3 : The Company..........................................................................................       20

schedule 4 : The Subsidiaries.....................................................................................       22

schedule 5 : Warranties and Representations.......................................................................       26

schedule 6 : Tax..................................................................................................       55

schedule 7 : Particulars of Premises..............................................................................       68

schedule 8 : Obligors' Protection.................................................................................       70

schedule 9 : Escrow Mechanism.....................................................................................       73

schedule 10 : Obligors' Professional Fees.........................................................................       79

schedule 11 : Tax Indemnity.......................................................................................       80

schedule 12 : Working Capital Adjustment..........................................................................       89

schedule 13 : Orderly Sales Provisions............................................................................       94

schedule 14 : Employer National Insurance Limits..................................................................       97
</TABLE>

                                       ii
<PAGE>

THIS DEED POLL is made on 22 June 2004

BY

(1)   THE SEVERAL PERSONS, (the "WARRANTORS") whose names and addresses are set
      out in columns 1 and 2 of schedule 1; and

(2)   THE SEVERAL PERSONS, (the "INVESTORS") whose names and addresses are set
      out in columns 1 and 2 of schedule 2.

BACKGROUND:

(A)   The Purchaser (as defined below) is considering making an offer (the
      "OFFER") to purchase the entire issued and to be issued share capital of
      On Demand Distribution Limited.

(B)   In order to induce the Purchaser to make the Offer the Obligors are
      entering into this Deed Poll intended to be for the benefit of the
      Purchaser to, amongst other things, make the warranties as set out in this
      Deed.

NOW IT IS AGREED AS FOLLOWS:

1.    INTERPRETATION

1.1   DEFINITIONS

      In this Deed, unless the context otherwise requires:

      "AFFILIATE" means, in relation to a body corporate, any subsidiary or
      holding company of such body corporate, and any subsidiary of any such
      holding company for the time being;

      "AGREED FORM" means, in relation to any document, a document in the terms
      signed or initialled by or on behalf of the parties for identification;

      "AUDITED ACCOUNTS" means the audited consolidated balance sheet of the
      Company and the Subsidiaries made up as at the Balance Sheet Date and the
      audited consolidated profit and loss account of the Company and the
      Subsidiaries in respect of the financial year ended on the Balance Sheet
      Date including, in each case, the notes thereto and the directors' report
      and auditors' report;

      "BALANCE SHEET DATE" means 31 March 2004;

      "BUSINESS DAY" means a day (other than a Saturday or Sunday) on which
      banks are open for ordinary banking business in London and Seattle,
      Washington USA;

      "CLAIM" means any claim by the Purchaser under this Deed including, but
      without limitation, under the Warranties, the restrictive covenants in
      clause 3, the indemnities in clause 4, the tax indemnity in schedule 11
      and the working capital adjustment in schedule 12;

      "COMPANY" means On Demand Distribution Limited, a company registered in
      England and Wales under company number 03935034, with its registered
      office at Box Mill, Mill Lane, Box, Corsham, Wiltshire, SN13 8PN;

      "COMPANIES ACTS" means statutes from time to time in force concerning
      companies including (without limitation) the Companies Act 1985, the
      Companies Act 1989, Part V of the Criminal Justice Act 1993 and the
      Companies Consolidation (Consequential Provisions) Act 1985;

                                       1
<PAGE>

      "COMPLETION" means completion of the transfer to the Purchaser of 100% of
      the OD2 Shares the subject of the Offer;

      "COMPLETION ACCOUNTS" means the accounts prepared in accordance with
      schedule 12;

      "COMPLETION DATE" means the date of Completion;

      "CONSIDERATION" means the total consideration (in cash, Loudeye Shares,
      Promissory Notes, Contingent Value Right or otherwise) including any
      deferred or contingent consideration to be paid for the OD2 Shares
      pursuant to the Offer;

      "CONTINGENT VALUE RIGHT" shall have the meaning ascribed to it in the
      Offer Document;

      "DIRECTORS" means in relation to the Company or any of the Subsidiaries,
      its directors;

      "DISCLOSURE LETTER" means the letter dated the date hereof written and
      delivered by or on behalf of the Warrantors to the Purchaser in Agreed
      Form;

      "EMPLOYEE" means any individual employed by or engaged to provide services
      to the Company or to any Subsidiary;

      "ENCUMBRANCE" includes any interest or equity of any person (including any
      right to acquire, option or right of pre-emption); any mortgage, charge,
      pledge, lien, assignment, hypothecation, security interest (including any
      created by law), title retention or other security agreement or
      arrangement; and any rental, hire purchase, credit or conditional sale or
      other agreement for payment on deferred terms;

      "ESCROW ACCOUNT" means an interest bearing account to be held by a
      mutually acceptable escrow agent on such terms as the Obligors and the
      Purchaser may agree, such agreement not to be unreasonably withheld;

      "ESCROW CASH" means any cash paid into the Escrow Account;

      "ESCROW SHARES" means the Loudeye Shares held by the Purchaser in
      accordance with paragraph 1 of schedule 9;

      "FURTHER LOUDEYE SHARES" shall have the meaning ascribed to it in the
      Offer Document;

      "GROUP" means the Company and its subsidiaries and each a Group Company;

      "INITIAL LOUDEYE SHARES" shall have the meaning ascribed to it in the
      Offer Document;

      "LAW" or "LAWS" includes all applicable legislation, statutes, directives,
      regulations, judgments, decisions, decrees, orders, instruments, by-laws,
      and other legislative measures or decisions having the force of law,
      treaties, conventions and other agreements between states, or between
      states and the European Union or other supranational bodies, rules of
      common law, customary law and equity and all civil or other codes and all
      other laws of, or having effect in, any jurisdiction from time to time and
      whether before or after the date of this Deed;

      "LONDON STOCK EXCHANGE" means London Stock Exchange plc;

      "LOUDEYE SHARES" means shares of common stock, par value $0.001 per share,
      of the Purchaser;

      "OBLIGORS" means together the Warrantors and the Investors and each an
      Obligor;

                                       2
<PAGE>

      "OD2 SHARES" shall have the meaning ascribed to it in the Offer Document;

      "OFFER" means the offer by the Purchaser to acquire the OD2 Shares;

      "OFFER DATE" means the date upon which the Offer is declared wholly
      unconditional;

      "OFFER DOCUMENT" means the document proposed to be sent to, amongst
      others, the shareholders in the Company setting out the terms of the
      Offer;

      "PREMISES" means the land and premises particulars of which are set out in
      schedule 7;

      "PROMISSORY NOTES" shall have the meaning ascribed to it in the Offer
      Document;

      "PURCHASER" means Loudeye Corp., a company incorporated under the laws of
      the State of Delaware, with its principal place of business at 1130
      Rainier Avenue South, Seattle, Washington 98144, United States of America;

      "PURCHASER'S GROUP" means the Purchaser and each of its Affiliates;

      "RELEVANT CLAIM" means any claim under this Deed for a breach of the
      Warranties or the tax indemnity provisions in schedule 11;

      "REPRESENTATIVE" shall have the meaning set out in schedule 9;

      "RESTRICTED BUSINESS" has the meaning given in clause 3.1;

      "SUBSIDIARIES" means the companies details of which are set out in
      schedule 4; and

      "WARRANTIES" means the warranties set out in schedule 5 and schedule 6.

1.2   CONSTRUCTION OF CERTAIN REFERENCES

      In this Deed, where the context admits:

      (A)   words and phrases the definitions of which are contained or referred
            to in Part XXVI Companies Act 1985 shall have the meanings thereby
            attributed to them;

      (B)   every reference to a particular statutory provision or other Law
            shall be construed also as a reference to:

            (1)   all other Laws made under the Law referred to; and

            (2)   (except to the extent that it would create or increase the
                  liability of any party under this Deed) to all such Laws as
                  amended, re-enacted, consolidated or replaced or as their
                  application or interpretation is affected by other Laws from
                  time to time,

            whether before or after the date of this Deed;

            (C)   where any statement is to the effect that the Warrantors are
                  not aware of any matter or circumstance, or is a statement
                  qualified by the expression "so far as the Warrantor are
                  aware" or "to the best of the Warrantors' knowledge and
                  belief" or any similar expression, that statement shall be
                  deemed to include an additional statement that it has been
                  made after reasonable enquiry and the same shall apply in
                  relation to such statements as to the awareness or knowledge
                  of any other person;

                                       3
<PAGE>

            (D)   references to clauses and schedules are references to clauses
                  of and schedules to this Deed, references to paragraphs are,
                  unless otherwise stated, references to paragraphs of the
                  schedule in which the reference appears, references to
                  exhibits are to documents in Agreed Form identified as such
                  and references to this Deed include the schedules and
                  exhibits;

            (E)   references to the singular shall include the plural and vice
                  versa and references to the masculine, the feminine and the
                  neuter shall include each other such gender;

            (F)   "person" includes any individual, partnership, body corporate,
                  corporation sole or aggregate, state or agency of a state, and
                  any unincorporated association or organisation, in each case
                  whether or not having separate legal personality;

            (G)   "company" includes any body corporate;

            (H)   references to the Warrantors include a reference to each of
                  them;

            (I)   references to the Investors include a reference to each of
                  them;

            (J)   references to the Obligors include a reference to each of
                  them;

            (K)   references to "indemnify" and "indemnifying" any person
                  against any liability or circumstance include indemnifying him
                  and keeping him harmless from all actions, claims, demands and
                  proceedings from time to time made against that person and all
                  losses, damages, payments, costs and expenses (including legal
                  costs and expenses on a full indemnity basis) made, suffered
                  or incurred by that person as a consequence of or which would
                  not have arisen but for that liability or circumstance and
                  where any payment made under any indemnity is subject to any
                  Tax (as defined in schedule 6) or cost or expense which would
                  not have been incurred by the payee but for the payment, it
                  shall be increased by such amount as is necessary to ensure
                  that the payee receives the same net amount as it would have
                  received had the payment not been so subject;

            (L)   words introduced by the word "other" shall not be given a
                  restrictive meaning because they are preceded by words
                  referring to a particular class of acts, matters or things;
                  and

            (M)   general words shall not be given a restrictive meaning because
                  they are followed by words which are particular examples of
                  the acts, matters or things covered by the general words and
                  the word "including" shall be construed without limitation.

1.3   SEVERAL LIABILITIES

      Save as is otherwise mentioned in this Deed, all warranties,
      representations, indemnities, covenants, agreements and obligations given
      or entered into by more than one person in this Deed are given or entered
      into severally, and in respect of the Investors, in relation to himself
      only.

1.4   HEADINGS

      The headings and sub-headings are inserted for convenience only and shall
      not affect the construction of this Deed.

1.5   SCHEDULES

      Each of the schedules shall have effect as if set out herein.

                                       4
<PAGE>

2.    WARRANTIES

2.1   GENERAL

      Subject to the provisions of schedule 8:

      (A)   the Warrantors hereby jointly and severally warrant to and for the
            benefit of the Purchaser in the terms of the Warranties and
            acknowledge and accept that the Purchaser will make the Offer in
            reliance upon each of the Warranties each of which is given on the
            basis that it will remain true and accurate at all times up to the
            Offer Date; and

      (B)   the Investors hereby warrant to and for the benefit of the Purchaser
            in the terms of the warranties set out in paragraphs 2.1, 2.2 and 14
            of schedule 5 so far as the same shall relate only to each Investor,
            and acknowledge and accept that the Purchaser will make the Offer in
            reliance upon each of the Warranties each of which is given on the
            basis that it will remain true and accurate at all times up to the
            Offer Date.

      Any sum payable, or deemed payable, out of the Escrow Shares or the Escrow
      Account in respect of any breach of the Warranties shall be treated as a
      reduction in the Consideration.

2.2   PURCHASER'S KNOWLEDGE

      The Warranties are given subject to matters fairly disclosed in this Deed
      or in the Disclosure Letter with sufficient details to identify the nature
      and scope of the matters disclosed.

2.3   WARRANTIES TO BE INDEPENDENT

      Each of the Warranties shall be separate and independent and, save as
      expressly provided, shall not be limited by reference to any other
      Warranty or anything in this Deed.

2.4   DAMAGES

      Subject to the provisions of schedule 8, in the event that any of the
      Warranties is broken or untrue or misleading the amount deemed to be
      payable (as far as possible by way of repayment of the Consideration) as
      agreed liquidated damages shall be the aggregate of:

      (A)   the amount necessary to put the Purchaser, the Company and each of
            the Subsidiaries into the position which would have existed if the
            Warranties had not been broken and had been true and not misleading,
            including the amount by which the value of any asset or contract
            (including one warranted to exist but not in fact existing) thereby
            is or becomes less and the amount of any liability which thereby
            arises or is or becomes greater or which the Company or any
            Subsidiary thereby incurs or to which any of them thereby becomes
            subject; and

      (B)   all costs and expenses reasonably incurred by the Purchaser, the
            Company or any of the Subsidiaries, directly or indirectly, as a
            result of such breach or in order to remedy the same

      and amounts payable under this clause 2.4 shall be determined without
      reference to the Laws relating to the computation of damages for breach of
      warranty. For the avoidance of doubt any such amount shall be settled from
      the Escrow Shares or the Escrow Cash in accordance with the provisions of
      schedule 8 and schedule 9.

2.5   WAIVER OF CLAIMS

      The Obligors undertake to and for the benefit of the Purchaser that they
      will not make or pursue any claim or action howsoever arising against any
      of the "THIRD PARTIES" (being the Company, any of

                                       5
<PAGE>

      the Subsidiaries or any of the Employees) in respect of any loss or
      liability the Obligors may incur pursuant to this Deed (or any other
      document referred to herein) or otherwise in connection with the making of
      the Offer, the preparation of the Offer Document, the sale of the OD2
      Shares to the Purchaser or the preparation of the Disclosure Letter. The
      rights of the Third Parties under this clause 2.5 are intended to be
      enforceable under the Contracts (Rights of Third Parties) Act 1999 but
      subject to the terms that the Purchaser has the right (which it may waive
      in whole or in part in its absolute discretion and without the consent of
      any Third Party) to have the sole conduct of any proceedings in relation
      to the enforcement of such rights (including any decision as to the
      commencement or compromise of such proceedings) but will not owe any duty
      or have any liability to any of the Third Parties in relation to such
      conduct. The rights of the Third Parties under this clause 2.5 are not
      assignable and are subject to clauses 9.2 and 10 and the parties to this
      Deed may rescind or vary this Deed without the consent of any of the Third
      Parties.

3.    RESTRICTION OF WARRANTORS

3.1   PETER GABRIEL

      (A)   Subject to clauses 3.1(B) and 3.1(C) below, Peter Gabriel undertakes
            (for the benefit of the Purchaser, the Company, the Subsidiaries and
            the Purchaser's successors in title) that he will not for the period
            of 12 months from the date of this Deed:

            (1)   carry on or be engaged in any business which is wholly or
                  partly in competition with the Company or any member of the
                  Group with respect to the digital distribution of master
                  recordings as carried on by the Company;

            (2)   solicit or entice away or endeavour to entice away from the
                  Company or any Group Company any person who at the date of
                  this Deed or within 12 months hereof was a director or
                  employee of the Company, including for the avoidance of doubt
                  Charles Grimsdale, Ed Averdieck, John Grinham and David
                  Shepherd.

      (B)   It is acknowledged that Peter Gabriel has other business interests
            relating inter alia to master recordings, musical compositions and
            audio visual material and the exploitation thereof whether the
            performances are those of Peter Gabriel or those of other performers
            and nothing herein will interfere with the exploitation thereof
            howsoever and Peter Gabriel shall be free to exploit such materials
            with his third party licensees without fetter or inhibition.

      (C)   In the event that the Purchaser makes any damages claim against
            Peter Gabriel or the Obligors for breach of the covenants in clause
            3.1(A), the provisions of paragraphs 2.1 and 2.2 of schedule 8 shall
            apply, but in no event will this in any way limit the ability of the
            Purchaser to seek any equitable remedy for such breach, including
            without limitation, injunctive relief.

3.2   RESTRICTED BUSINESS

      In the remainder of this clause 3, "RESTRICTED BUSINESS" means the
      business of providing digital media services to third party media
      companies and retailer partners wheresoever carried on.

3.3   UNDERTAKINGS

      Each of the Warrantors undertakes (for the benefit of the Purchaser, the
      Company, the Subsidiaries and the Purchaser's successors in title) that it
      will not from the date of this Deed:

      (A)   for the period of 30 months after the Offer Date, either on his own
            account or in conjunction with or on behalf of any person, firm or
            company, carry on or be engaged, concerned or

                                       6
<PAGE>

            interested (directly or indirectly and whether as principal,
            shareholder, director, employee, agent, consultant, partner or
            otherwise) in carrying on any Restricted Business, other than:

            (1)   as a holder for investment purposes only (which shall exclude
                  a management function or material influence) of any shares,
                  debentures or other participation and a holding of not more
                  than 10 per cent of any class of shares or debentures shall be
                  deemed to be for investment purposes unless the contrary is
                  shown; or

            (2)   pursuant to any commercial agreement with any member of the
                  Purchaser's Group including the Group; and

      (B)   for the period of 30 months after the Offer Date, either on his own
            account or in conjunction with or on behalf of any person, firm or
            company, solicit or endeavour to entice away from the Company or any
            of the Subsidiaries any person who at the Offer Date is (or who
            within a period of one year prior to the Offer Date has been) an
            officer, manager, senior employee, agent or consultant of the
            Company or any of the Subsidiaries whether or not such person would
            commit a breach of contract by reason of leaving service or office;
            and

      (C)   for the period of 30 months after the Offer Date, either on his own
            account or in conjunction with or on behalf of any person, firm or
            company, in connection with any Restricted Business, solicit the
            custom of or endeavour to entice away from the Company or any of the
            Subsidiaries any person who at the Offer Date is (or who within a
            period of one year prior to the Offer Date has been) a client or
            customer of the Company or any of the Subsidiaries whether or not
            such person would commit a breach of contract by reason of
            transferring business; and

      (D)   at any time after the date of this Deed, directly or indirectly use
            or attempt to use in the course of any business on its own account
            or in conjunction with or on behalf of any person, firm or company,
            any valid trade or service mark, trade name, design or logo (whether
            registered or not and including the Listed IP referred to in
            schedule 5) used in the business of the Company or any of the
            Subsidiaries or any other name, logo, trade or service mark or
            design which is or might be confusingly similar thereto.

3.4   SEPARATE UNDERTAKINGS

      Each of the undertakings in clauses 3.1(A)(1), 3.1(A)(2), 3.3(A), 3.3(B),
      3.3(C) and 3.3(D) shall be construed as a separate and independent
      undertaking and if one or more of the undertakings is held to be void or
      unenforceable, the validity of the remaining undertakings shall not be
      affected.

3.5   REASONABLENESS

      Each of Peter Gabriel, the Warrantors and the Obligors agree that each of
      the restrictions and undertakings contained in clauses 3.1 and 3.3 are
      reasonable and necessary for the protection of the Purchaser's legitimate
      interests in the goodwill of the Company and the Subsidiaries, but if any
      such restriction or undertaking shall be found to be void or voidable but
      would be valid and enforceable if some part or parts of the restriction or
      undertaking were deleted, such restriction or undertaking shall apply with
      such modification as may be necessary to make it valid and enforceable.

3.6   VOID OR UNENFORCEABLE RESTRICTIONS

      Without prejudice to clause 3.5, if any restriction or undertaking is
      found by any court or other competent authority to be void or
      unenforceable the parties shall negotiate in good faith to replace such
      void or unenforceable restriction or undertaking with a valid provision
      which, as far as possible, has the same commercial effect as that which it
      replaces.

                                       7
<PAGE>

3.7   CONFIDENTIAL INFORMATION CONCERNING THE COMPANY

      Each of the Obligors shall not and shall procure that none of their
      Affiliates or the officers, employees or agents of that Obligor or of any
      such Affiliate shall make use of or divulge to any other party (other than
      to the Obligors' professional advisers for any purposes of this Deed or
      any matter arising out of it in which case the Obligors shall use all
      reasonable endeavours to procure that such advisers keep such information
      confidential on terms equivalent to this clause 3.7) any confidential
      information relating to the Company and the Subsidiaries save only:

      (A)   in so far as the same has become public knowledge otherwise than,
            directly or indirectly, through the breach by any Obligor of this
            clause 3.7 or the failure of any such Affiliate, officer, employee
            or professional adviser referred to above to keep the same
            confidential; or

      (B)   to the extent required by Law or by any supervisory or regulatory
            body having jurisdiction over them and whether or not the
            requirement has the force of Law.

4.    INDEMNITIES

4.1   TAX

      Subject to the provisions of schedule 8, the Warrantors indemnify the
      Purchaser in relation to tax liabilities on the terms of schedule 11.

4.2   FAILURE TO GIVE NOTICE

      The Warrantors agree to indemnify the Purchaser and the Company against
      all liabilities which may arise by the Company not having given sufficient
      notice of the Offer to each holder of warrants granted by the Company or
      loan notes issued by the Company.

4.3   TERMINATION OF SUBSCRIPTION AGREEMENT

      The Warrantors agree to indemnify the Purchaser and the Company against
      all liabilities which may arise under the subscription agreement (the
      "SUBSCRIPTION AGREEMENT") dated 28 September 2000 between:

      (A)   Nick McKeown, Brent Bilger, Morgan Littlewood, Jeremy McKeown
            (together the "ANGELS");

      (B)   the Company, and

      (C)   Peter Gabriel and Charles Grimsdale

      in relation to the Company not continuing to supply after the Offer Date
      any information to the Angels as required under clause 4 of the
      Subscription Agreement. The Warrantors will use all reasonable endeavours
      to procure the termination of and the release of the Company from the
      Subscription Agreement as soon as possible following the Offer Date.

5.    WORKING CAPITAL ADJUSTMENT

      The provisions of schedule 12 shall apply in relation to an adjustment
      which may be payable to the Purchaser in respect of a change in the
      working capital of the Company.

6.    ORDERLY SALES RESTRICTIONS

      The provisions of schedule 13 shall apply in relation to the sale of any
      Loudeye Shares.

                                       8
<PAGE>

7.    CONFIDENTIALITY

7.1   CONFIDENTIALITY

      Subject to clause 7.2 and to clause 8 and without prejudice to clause 3.7,
      the Obligors:

      (A)   shall treat as strictly confidential the provisions of this Deed and
            the process of the negotiation and all information about any other
            person obtained or received by it as a result of negotiating,
            entering into or performing its obligations under this Deed
            ("CONFIDENTIAL INFORMATION"); and

      (B)   shall not, except with the prior written consent of the Purchaser
            (which shall not be unreasonably withheld or delayed), make use of
            (save for the purposes of performing its obligations under this
            Deed) or disclose to any person any Confidential Information.

7.2   PERMITTED DISCLOSURE OR USE

      Clause 7.1 shall not apply if and to the extent that the person using or
      disclosing Confidential Information can demonstrate that:

      (A)   such disclosure is required by Law or by any supervisory, regulatory
            or governmental body having jurisdiction over it (including the
            London Stock Exchange, the Financial Services Authority, the Panel
            on Take-overs and Mergers, the Serious Fraud Office, the Securities
            and Exchange Commission and NASDAQ) and whether or not the
            requirement has the force of Law; or

      (B)   such disclosure is made for the purposes of a contract or
            arrangement to which a Group Company is a party, in connection with
            obtaining the consent of a counter-party to such contract to the
            change in control of the Company resulting from the Offer; or

      (C)   such disclosure is to its professional advisers in relation to the
            negotiation, entry into or performance of this Deed or any matter
            arising out of the same; or

      (D)   such disclosure is required in order to facilitate any assignment or
            proposed assignment of the whole or any part of the rights or
            benefits under this Deed which is permitted by clause 9.2; or

      (E)   in the case of disclosure or use, the Confidential Information
            concerned was lawfully in its possession (as evidenced by written
            records) prior to its being obtained or received as described in
            clause 7.1(A); or

      (F) in the case of disclosure or use, the Confidential Information
      concerned has come into the public domain other than through its fault or
      the fault of any person to whom such Confidential Information has been
      disclosed in accordance with clause 7.1(B).

7.3   CONTINUANCE OF RESTRICTIONS

      The restrictions contained in this clause 7 shall survive Completion and
      shall continue without limit of time.

                                       9
<PAGE>

8.    ANNOUNCEMENTS

8.1   RESTRICTIONS

      Subject to clauses 8.2 and 8.4, and whether or not any restriction
      contained in clause 7 applies, no party to this Deed shall make any
      announcement, (including any communication to the public, to any customers
      or suppliers of the Company, or to all or any of the employees of the
      Company) concerning the provisions or subject matter of this Deed or
      containing any information about any other party without the prior written
      approval of the Purchaser (which shall not be unreasonably withheld or
      delayed).

8.2   PERMITTED ANNOUNCEMENTS

      Clause 8.1 shall not apply if and to the extent that such announcement is
      required by Law or by any supervisory, regulatory or governmental body
      having jurisdiction over it (including the London Stock Exchange, the
      Financial Services Authority, The Panel on Take-overs and Mergers, the
      Serious Fraud Office, the Securities and Exchange Commission and NASDAQ)
      and whether or not the requirement has the force of Law and provided that
      any such announcement shall be made only after consultation with the other
      parties. The Obligors consent to the terms of this Deed being filed with
      the Securities and Exchange Commission without prior consultation.

8.3   CONTINUANCE OF RESTRICTIONS

      The restrictions contained in this clause 8 shall survive Completion and
      shall continue without limit of time.

8.4   ANNOUNCEMENTS TO CUSTOMERS AND SUPPLIERS

      The Obligors and the Purchaser shall as soon as practicable after
      Completion procure that a joint announcement of the sale and purchase of
      the OD2 Shares is made to the customers and suppliers of the Company and
      each Subsidiary in such form as they may agree.

9.    PROVISIONS RELATING TO THIS DEED

9.1   EXCHANGE RATES

      Where in this Deed any amount (the "AMOUNT") is required to be converted
      between US Dollars and GB Pounds or vice versa, the rate to be used shall
      be the mid-range (pound)/U.S. Dollar closing price as reported in the Wall
      Street Journal on the last day of publication of the Wall Street Journal
      before the determination of the Amount to be paid.

9.2   ASSIGNMENT

      (A)   This Deed shall be binding upon and enure for the benefit of the
            successors of the parties or beneficiaries, but shall not be
            assignable, save that the Purchaser may at any time assign all or
            any part of its rights and benefits under this Deed, including any
            of the Warranties and any other indemnities, undertakings and
            obligations given or undertaken by the Warrantors and any cause of
            action arising under or in respect of any of them, to any member of
            the Purchaser's Group for so long as such assignee shall remain part
            of the Purchaser's Group.

      (B)   Every such assignee shall be entitled to enforce the benefits
            conferred upon it by such assignment and this clause 9.2 directly
            against the Warrantors as permitted by the Contracts (Rights of
            Third Parties) Act 1999 and for that purpose each such assignee
            shall be entitled to the benefit of and be subject to all the
            provisions of this Deed in any way relevant to the

                                       10
<PAGE>

            rights assigned to it and conferred upon it by this clause 9.2. The
            consent of no such assignee shall be required to any amendment to
            this Deed.

9.3   WHOLE AGREEMENT AND VARIATIONS

      (A)   This Deed, together with any documents referred to in it,
            constitutes the whole agreement between the parties relating to its
            subject matter and supersedes and extinguishes any prior drafts,
            agreements, and undertakings, whether in writing or oral, relating
            to such subject matter, except to the extent that the same are
            repeated in this Deed.

      (B)   No variation of this Deed shall be effective unless the prior
            written consent of the Purchaser is obtained and following such
            consent any amendment is made in writing and signed by each of the
            parties.

9.4   DEED SURVIVES COMPLETION

      The Warranties and all other provisions of this Deed, in so far as the
      same shall not have been performed at Completion, shall remain in full
      force and effect notwithstanding Completion.

9.5   RIGHTS ETC CUMULATIVE AND OTHER MATTERS

      (A)   The rights, powers, privileges and remedies provided in this Deed
            are cumulative and are not exclusive of any rights, powers,
            privileges or remedies provided by law or otherwise.

      (B)   No failure to exercise nor any delay in exercising any right, power,
            privilege or remedy under this Deed shall in any way impair or
            affect the exercise thereof or operate as a waiver thereof in whole
            or in part.

      (C)   No single or partial exercise of any right, power, privilege or
            remedy under this Deed shall prevent any further or other exercise
            thereof or the exercise of any other right, power, privilege or
            remedy.

9.6   RELEASE OF WARRANTORS

      The Purchaser may release or compromise the liability of any of the
      Obligors hereunder without affecting the liability of the other Obligors,
      but such a release shall not act to increase the liability of any
      remaining Obligor.

9.7   INVALIDITY

      If any provision of this Deed shall be held to be illegal, void, invalid
      or unenforceable under the Laws of any jurisdiction, the legality,
      validity and enforceability of the remainder of this Deed in that
      jurisdiction shall not be affected, and the legality, validity and
      enforceability of the whole of this Deed in any other jurisdiction shall
      not be affected.

9.8   COUNTERPARTS

      This Deed may be executed in any number of counterparts, which shall
      together constitute one Deed. Any party may enter into this Deed by
      signing any such counterpart.

9.9   COSTS

      Save as set out below, each party shall bear their own costs arising out
      of or in connection with the preparation, negotiation and implementation
      of this Deed. The Purchaser will pay the Obligors' reasonable accountancy,
      legal and other costs and expenses incurred from the advisers listed in

                                       11
<PAGE>

      schedule 10, actually incurred in relation to the preparation and
      negotiation of the Offer, up to an aggregate limit of (pound)1,000,000
      (inclusive of VAT), but the payment shall be conditional upon the Offer
      having been made and becoming unconditional in all respects and the
      Obligors providing in a form reasonably acceptable to the Purchaser the
      following information in relation to such professional costs:

      (A)   a certification from the relevant professional advisor that the
            rates charged are their standard rates and all time incurred in
            relation to the said costs have been incurred solely in relation to
            the Offer; and

      (B)   where applicable a copy of an invoice(s) which sets out the fee
            earners, number of hours worked and the hourly rates applicable to
            the fee earners, and details the total amount payable by the
            Obligors to the relevant professional advisor.

9.10  TERMINATION

      This Deed shall terminate and be of no further effect in the event that
      the Offer lapses in accordance with its terms.

9.11  NOTICES

      (A)   Any notice or other communication required to be given under this
            Deed or in connection with the matters contemplated by it shall,
            except where otherwise specifically provided, be in writing in the
            English language and shall be addressed as provided in clause
            9.11(B) and may be:

            (1)   personally delivered, in which case it shall be deemed to have
                  been given upon delivery at the relevant address; or

            (2)   if within the United Kingdom, sent by first class pre-paid
                  post, in which case it shall be deemed to have been given two
                  Business Days after the date of posting; or

            (3)   if from or to any place outside the United Kingdom, sent by
                  pre-paid airmail or by air courier, in which case it shall be
                  deemed to have been given seven Business Days after the date
                  of posting in the case of airmail or two Business Days after
                  delivery to the courier in the case of air courier; or

            (4)   sent by fax, in which case it shall be deemed to have been
                  given when despatched, subject to confirmation of
                  uninterrupted transmission by a transmission report provided
                  that any notice despatched by fax after 17:00 hours (at the
                  place where such fax is to be received) on any day shall be
                  deemed to have been received at 09:00 on the next Business
                  Day.

      (B)   The addresses and other details of the parties referred to in clause
            9.11(A) are, subject to clause 9.11(C):

      For the Warrantors:

      Name:                                  Christopher Pike
                                             (the "WARRANTORS' REPRESENTATIVE")

      Address:                               On Demand Distribution Limited
                                             Broad Quay House
                                             Prince Street

                                       12
<PAGE>

                                             Bristol
                                             BS1 4DJ

      Fax number:                            +44 (0)1179 058 828

      For the Investors (excluding
      Peter Gabriel and Michael Large):

      Name:                                  Quester Venture Partnership LLP

                                             (the "INVESTORS' REPRESENTATIVE")

      For the attention of:                  Jamie Brooke

      Address:                               29 Queen Anne's Gate
                                             London
                                             SW1H 9BU
                                             UK

      Fax number:                            +44 (0)207 222 5250

      For Peter Gabriel and Michael Large:

      Name:                                  Michael Large

      Address:                               The Malting Barn
                                             185 Top Lane
                                             Whitley
                                             Melksham
                                             SN12 8QL
                                             UK
      Fax number:                            01225 744 370

      For the Purchaser:

      Name:                                  Loudeye Corp.

      For the attention of:                  Larry Madden

      Address:                               1130 Rainier Avenue South
                                             Seattle
                                             WA 98144
                                             United States of America

      Fax number:                            +1 206 832 4301

                                       13
<PAGE>

      (C)   Any party to this Deed may notify the other parties of any change to
            its address or other details specified in clause 9.11(B) including
            in the case of the Warrantors and the Investors, the name of their
            respective representative provided that such notification shall only
            be effective on the date specified in such notice or five Business
            Days after the notice is given, whichever is later.

      (D)   For the purposes of this clause 9.11, the Warrantors shall together
            constitute one party, notices to the Warrantors' Representative
            addressed as set out in clause 9.11(B) shall be notice to all the
            Warrantors, and any notice referred to in clause 9.11(C) shall be
            signed on behalf of all of them. Any notice signed by or on behalf
            the Warrantors' Representative, when served in accordance with this
            clause 9.11, shall take effect as notice given by all the
            Warrantors.

      (E)   For the purposes of this clause 9.11, the Investors (excluding Peter
            Gabriel and Michael Large) shall together constitute one party,
            notices to the Investors' Representative addressed as set out in
            clause 9.11(B) shall be notice to all the Investors, and any notice
            referred to in clause 9.11(C) shall be signed on behalf of all of
            them. Any notice signed by or on behalf the Investors'
            Representative, when served in accordance with this clause 9.11,
            shall take effect as notice given by all the Investors.

      (F)   For the purposes of this clause 9.11, Peter Gabriel and Michael
            Large shall together constitute one party and notices to Michael
            Large addressed as set out in clause 9.11(B) shall be notice to each
            of Peter Gabriel and Michael Large, and any notice referred to in
            clause 9.11(C) shall be signed on behalf of all of them. Any notice
            signed by or on behalf the Michael Large, when served in accordance
            with this clause 9.11, shall take effect as notice given by both of
            Peter Gabriel and Michael Large.

10.   LAW AND JURISDICTION

10.1  ENGLISH LAW

      This Deed shall be governed by, and construed in accordance with, English
      Law.

10.2  JURISDICTION

      In relation to any legal action or proceedings to enforce this Deed or
      arising out of or in connection with this Deed ("PROCEEDINGS") each of the
      parties irrevocably submits to the exclusive jurisdiction of the English
      courts and waives any objection to Proceedings in such courts on the
      grounds of venue or on the grounds that the Proceedings have been brought
      in an inappropriate forum.

10.3  PROCESS AGENT

      (A)   Each of Investment Enterprise Partnership `NIF New Technology Fund
            99A', Investment Enterprise Partnership `NIF New Technology Fund
            99B', Investment Enterprise Partnership `NIF New Technology Fund
            2000/01', Investment Enterprise Partnership `NIF New Technology Fund
            2000/02', Investment Enterprise Partnership `NIF 21-ONE(1) and NIF
            Ventures Co. Ltd (together the "NIF FUNDS"), appoint Quester Venture
            Partnership, LLP of 29 Queen Anne's Gate, London, SW1H 9BU, UK as
            their process agent to receive on their behalf service of process in
            any proceedings in England. Service upon the process agent shall be
            good service upon each of the NIF Funds whether or not it is
            forwarded to and received by any of the NIF Funds. If for any reason
            the process agent ceases to be able to act as process agent, or no
            longer has an address in England, the NIF Funds irrevocably agree to
            appoint a substitute process agent with an address in England
            acceptable to the Purchaser and to deliver to the Purchaser a copy
            of the substitute process agent's acceptance of that

                                       14
<PAGE>

            appointment within 20 Business Days. In the event that the NIF Funds
            fail to appoint a substitute process agent, it shall be effective
            service for the Purchaser to serve the process upon the last known
            address in England of the last known process agent for the NIF Funds
            notified to the Purchaser, notwithstanding that such process agent
            is no longer found at such address or has ceased to act.

      (B)   The Purchaser, appoints the Company of Box Mill, Mill Lane, Box,
            Corsham, Wiltshire SN13 8PN as its process agent to receive on its
            behalf service of process in any proceedings in England. Service
            upon the process agent shall be good service upon the Purchaser,
            provided always that a copy of any documents served are sent to the
            Purchaser in accordance with the provisions of clause 9.11. If for
            any reason the process agent ceases to be able to act as process
            agent, or no longer has an address in England, the Purchaser
            irrevocably agrees to appoint a substitute process agent with an
            address in England acceptable to the Obligors and to deliver to the
            Obligors a copy of the substitute process agent's acceptance of that
            appointment within 20 Business Days. In the event that the Purchaser
            fails to appoint a substitute process agent, it shall be effective
            service for the Obligors to serve the process upon the last known
            address in England of the last known process agent for the Purchaser
            notified to the Obligors, notwithstanding that such process agent is
            no longer found at such address or has ceased to act.

10.4  CONTRACTS (RIGHTS OF THIRD PARTIES) ACT 1999

      Except:

      (A)   pursuant to clauses 2.5, 3.1, 3.3 and 9.2, and

      (B)   for the benefit of the Purchaser

      (in all such cases referred to in clause 10.4(A) and 10.4(B) it being
      intended that such person(s) may rely on this Deed) no person who is not a
      party to this Deed shall have any right under the Contracts (Rights of
      Third Parties) Act 1999 to enforce any term of this Deed.

AS WITNESS the hands of the parties or their duly authorised representatives on
the date first before written have executed this Deed Poll.

                                       15
<PAGE>

                          SCHEDULE 1 : THE WARRANTORS

<TABLE>
<CAPTION>
                                                                                    NUMBER OF OD2
                                                                                    SHARES UNDER
                                                                    NUMBER OF OD2     EMPLOYEE      NUMBER OF OD2
                                                       NUMBER OF    SHARES UNDER     UNAPPROVED     SHARES UNDER
   NAME OF WARRANTOR         ADDRESS OF WARRANTOR      OD2 SHARES    EMI OPTIONS    SHARE OPTION      WARRANTS
------------------------  ---------------------------  ----------   -------------   -------------   -------------
<S>                       <C>                          <C>          <C>             <C>             <C>
Charles Grimsdale         Little Court, Grib Lane,     2,179,950       858,685        1,200,000        62,500
                          Blagdon, Somerset BS40
                          7SA

John Grinham              4 Iddesleigh Road,                   0       498,591                0        31,863
                          Redland, Bristol BS6
                          6YJ

David Shephard            18 Noble Street, Sherston,           0       498,591                0        20,563
                          Wiltshire SN16 0NA

Edward Averdieck          41 Beauchamp Road, Clapham           0       443,192                0        32,463
                          Junction, London SW11 1PG

Christopher Pike          Top Floor Flat, 18 The               0       415,493                0             0
                          Avenue, Sneyd Park, Bristol
                          BS9 1PE

Susan Moule               Little Court, Grib Lane,        90,000             0                0             0
                          Blagdon, Somerset BS40
                          7SA
</TABLE>

                                       16
<PAGE>

                           SCHEDULE 2 : THE INVESTORS

<TABLE>
<CAPTION>
                                                                    NUMBER OF OD2
                                                                    SHARES UNDER
                                                                      NON-EXEC      NUMBER OF OD2
                                                                     DIRECTORS'     SHARES UNDER    NUMBER OF OD2
                                                       NUMBER OF     UNAPPROVED      UNDER LOAN     SHARES UNDER
   NAME OF WARRANTOR         ADDRESS OF WARRANTOR      OD2 SHARES   SHARE OPTION       NOTES          WARRANTS
------------------------  ---------------------------  ----------   -------------   -------------   -------------
<S>                       <C>                          <C>          <C>             <C>             <C>
Peter Gabriel             Box Mill, Mill Lane, Box,     3,541,650      526,291        1,145,259           0
                          Corsham, Wiltshire SN13
                          8PN

Michael Large             The Malting Barn, 185 Top             0      249,296                0           0
                          Lane, Whitley, Melksham
                          SN12 8QL

Quester Venture           29 Queen Anne's Gate,         1,318,575            0          163,170           0
Partnership, LLP          London, SW1H 9BU,
                          UK

Quester VCT2 plc          29 Queen Anne's Gate,         3,341,188            0          413,462           0
                          London, SW1H 9BU,
                          UK

Quester VCT3 plc          29 Queen Anne's Gate,         3,341,188            0          413,462           0
                          London, SW1H 9BU,
                          UK

Quester VCT4 plc          29 Queen Anne's Gate,         1,252,637            0          155,007           0
                          London, SW1H 9BU,
                          UK
</TABLE>

                                       17
<PAGE>

<TABLE>
<CAPTION>
                                                                    NUMBER OF OD2
                                                                    SHARES UNDER
                                                                      NON-EXEC      NUMBER OF OD2
                                                                     DIRECTORS'     SHARES UNDER    NUMBER OF OD2
                                                       NUMBER OF     UNAPPROVED      UNDER LOAN     SHARES UNDER
   NAME OF WARRANTOR         ADDRESS OF WARRANTOR      OD2 SHARES   SHARE OPTION       NOTES          WARRANTS
------------------------  ---------------------------  ----------   -------------   -------------   -------------
<S>                       <C>                          <C>          <C>             <C>             <C>
Investment Enterprise     Daiwa Yaesu Buildings,         275,000          0                  0            0
Partnership `NIF New      1-2-1 Kyobashi, Chuo-ku,
Technology Fund 99A'      Tokyo 104-0031,
                          Japan

Investment Enterprise     Daiwa Yaesu Buildings,         275,000          0                  0            0
Partnership `NIF New      1-2-1 Kyobashi, Chuo-ku,
Technology Fund 99B'      Tokyo 104-0031,
                          Japan

Investment Enterprise     Daiwa Yaesu Buildings,         650,000          0                  0            0
Partnership `NIF New      1-2-1 Kyobashi, Chuo-ku,
Technology Fund 2000/01'  Tokyo 104-0031,
                          Japan

Investment Enterprise     Daiwa Yaesu Buildings,         650,000          0            400,787            0
Partnership `NIF New      1-2-1 Kyobashi, Chuo-ku,
Technology Fund 2000/02'  Tokyo 104-0031,
                          Japan
</TABLE>

                                       18
<PAGE>

<TABLE>
<CAPTION>
                                                                    NUMBER OF OD2
                                                                    SHARES UNDER
                                                                      NON-EXEC      NUMBER OF OD2
                                                                     DIRECTORS'     SHARES UNDER    NUMBER OF OD2
                                                       NUMBER OF     UNAPPROVED      UNDER LOAN     SHARES UNDER
   NAME OF WARRANTOR         ADDRESS OF WARRANTOR      OD2 SHARES   SHARE OPTION       NOTES          WARRANTS
------------------------  ---------------------------  ----------   -------------   -------------   -------------
<S>                       <C>                          <C>          <C>             <C>             <C>
Investment Enterprise     Daiwa Yaesu Buildings,              0           0            400,787            0
Partnership               Kyobashi, Chuo-ku,
`NIF 21-ONE(1)1-2-1       Tokyo 104-0031,
                          Japan

NIF Ventures Co. Ltd      Daiwa Yaesu Buildings,        787,125           0            343,532            0
                          1-2-1 Kyobashi, Chuo-ku,
                          Tokyo 104-0031,
                          Japan
</TABLE>

                                       19
<PAGE>

                            SCHEDULE 3 : THE COMPANY

Name:                         On Demand Distribution Limited

Number:                       3935034

Registered Office:            Box Mill, Mill Lane, Box, Corsham, Wiltshire SN13
                              8PN

Authorised Capital:           (pound)3,584,943 comprising 35,849,430 ordinary
                              shares of(pound)0.10 each

Issued Capital:               (pound)1,864,810.20 made up of 18,648,102 ordinary
                              shares of(pound)0.10 each

Directors:                    Christopher Paul Russell Pike

                              Edward Averdieck

                              James Dominic Brooke

                              Peter Brian Gabriel

                              Charles Henry Robertson Grimsdale

                              John Richard Grinham

                              Michael David Large

                              David Shephard

Secretary:                    Christopher Paul Russell Pike

Accounting Reference Date:    31 March

Auditors:                     Grant Thornton

Continuing Directors:         Christopher Paul Russell Pike

                              Edward Averdieck

                              Charles Henry Robertson Grimsdale

                              John Richard Grinham

                              David Shephard

Shareholder and number of
shares held
                              Peter Gabriel                            3,541,650

                              Charles Grimsdale                        2,179,950

                                       20
<PAGE>

Susan Kelly Moule                                                         90,000

Quester VCT 2 plc                                                      3,341,188

Quester VCT 3 plc                                                      3,341,188

Quester VCT 4 plc                                                      1,252,637

Quester Venture Partners                                               1,318,575

Investment Enterprise Partnership 'NIF New 275,000
Tech Fund 99A'

Investment Enterprise Partnership 'NIF New 275,000
Tech Fund 99B'

Investment Enterprise Partnership 'NIF New 650,000
Tech Fund 2000/01'

Investment Enterprise Partnership 'NIF New 650,000
Tech Fund 2000/02'

NIF Ventures Co. Ltd                                                     787,125

Nick McKeown                                                             104,563

Brent Bilger                                                              45,463

Morgan Littlewood                                                         45,463

Jeremy McKeown                                                             9,088

Mark Farmer                                                               33,333

David Embleton                                                            33,333

Dori Dana Haeri                                                           33,333

WEA International Inc                                                    381,475

Edel Music AG                                                            137,925

RealWorld Records Ltd                                                     45,975

Steve Thornton                                                            62,500

Charles Bocock                                                             9,175

Ian Cox                                                                    4,163

                                       21
<PAGE>

                          SCHEDULE 4 : THE SUBSIDIARIES

Name:                         ON DEMAND DISTRIBUTION SAS

Number:                       B437640188

Registered Office:            290 Bld Voltaire, 75011 Paris, France

Authorised Capital:           (euro)38,200

Issued Capital:               (euro)38,200

Details of Shareholders:      On Demand Distribution Limited 100%

President:                    On Demand Distribution Limited

Represented by:               Charles Grimsdale

Accounting Reference Date:    31 March

Auditors:                     Grant Thornton
                              43 Queen Square
                              Bristol
                              BS1 4QR

Tax residence:                France

                                       22
<PAGE>

Name:                         ON DEMAND DISTRIBUTION S.R.L.

Company Registration Number:  1742478

Fiscal and Vat Number:        04361960968

Registered Office:            Corso di Ports Vittoria 28, Milan, Italy

Authorised Capital:           (euro)10,000

Issued Capital:               (euro)10,000

Details of Shareholders:      On Demand Distribution Limited 100%

Directors:                    Christopher Pike
                              Carlo Galassi

Accounting Reference Date:    31 December

Tax residence:                Italy

                                       23
<PAGE>

Name:                         ON DEMAND DISTRIBUTION GMBH

Number:                       HRB 35078

Registered Office:            Everhardstrasse 56, 50823 Koln, Germany

Authorised Capital:           (euro)25,000

Issued Capital:               (euro)25,000

Details of Shareholders:      On Demand Distribution Limited 100%

Directors:                    Anke Fleischer

Accounting Reference Date:    31 December

Auditors:                     Grant Thornton
                              43 Queen Square
                              Bristol
                              BS1 4QR

Tax residence:                Germany

                                       24
<PAGE>

Name:                         WEBAUDIONETWORK LIMITED

Number:                       4163448

Registered Office:            Box Mill, Mill Lane, Box, Corsham SN13 8PN

Authorised Capital:           (pound)1

Issued Capital:               (pound)1

Details of Shareholders:      On Demand Distribution Limited 100%

Directors:                    Charles Grimsdale

Secretary:                    Christopher Pike

Accounting Reference Date:    31 March

Auditors:                     None

Tax residence:                UK

                                       25
<PAGE>

                   SCHEDULE 5 : WARRANTIES AND REPRESENTATIONS

1.    INTERPRETATION

1.1   DEFINITIONS

      In this schedule, where the context admits:

      "ACCREDITED INVESTOR" means:

      (A)   any natural person (i) whose individual net worth, or joint net
            worth with such person's spouse, will at the time of the investment
            in the Loudeye Shares exceed $1,000,000, or (ii) who had an
            individual income in excess of $200,000 in each of the two most
            recent years or joint income with such person's spouse in excess of
            $300,000 in each of those years and has a reasonable expectation of
            reaching the same income level in the current year;

      (B)   a corporation, partnership, limited liability company or other legal
            entity with total assets in excess of $5,000,000, not formed for the
            specific purpose of acquiring the Loudeye Shares; or

      (C)   an entity all of the equity owners of which are as specified in (A)
            or (B) above.

      "AUTHORITY" means any competent governmental, administrative, supervisory,
      regulatory, judicial, determinative, disciplinary, enforcement or tax
      raising body, authority, agency, board, department, court or tribunal of
      any jurisdiction and whether supranational, national, regional or local;

      "AUTHORISATION" means any licence, consent, permit, approval or other
      authorisation, whether public or private;

      "COMPUTER CONTRACTS" means all arrangements and agreements under which any
      third party provides any element of, or services relating to, the Computer
      Systems, including leasing, hire purchase, licensing, escrow and
      maintenance agreements;

      "COMPUTER SYSTEMS" means all the computer hardware (including network and
      telecommunications equipment) and software (including associated
      preparatory materials, user manuals and other related documentation)
      owned, used, leased or licensed by or to the Company;

      "DISCLOSED" means disclosed in the Disclosure Letter;

      "FORM OF ACCEPTANCE AND ELECTION" shall have the meaning ascribed to it in
      the Offer Document;

      "INTELLECTUAL PROPERTY" means:

      (A)   patents, utility models, trade marks, design rights, copyright,
            database rights, topography rights, plant variety rights,
            confidential information and knowledge (including know how,
            inventions, secret formulae and processes, market information, and
            lists of customers and suppliers), and rights protecting goodwill
            and reputation;

      (B)   all other rights and forms of protection having a similar nature or
            effect anywhere in the world to any of the rights described in (A)
            above; and

      (C)   applications for or registrations of any of the rights described in
            (A) or (B) above;

      "LISTED IP" means the Intellectual Property referred to in the list
      annexed to the Disclosure Letter;

                                       26
<PAGE>

      "LISTED IP AGREEMENTS" means the agreements set out in the list annexed to
      the Disclosure Letter;

      "MANAGEMENT ACCOUNTS" means the consolidated management accounts of the
      Company and the Subsidiaries for the period from the Balance Sheet Date;

      "SECURITIES ACT" means the Securities Act of 1933 of the United States of
      America;

      "TREATY" means the Treaty establishing the European Community, as amended
      by the Treaty on European Union and by the Treaty of Amsterdam;

      "UK GAAP" means the generally accepted accounting principles in the United
      Kingdom, consistently applied; and

      "U.S. PERSON" means:

      (A)   any natural person resident in the United States;

      (B)   any partnership or corporation organized or incorporated under the
            laws of the United States;

      (C)   any estate of which any executor or administrator is a U.S. Person;

      (D)   any trust of which any trustee is a U.S. Person;

      (E)   any agency or branch of a foreign entity located in the United
            States;

      (F)   any non-discretionary account or similar account (other than an
            estate or trust) held by a dealer or other fiduciary for the benefit
            or account of a U.S. Person;

      (G)   any discretionary account or similar account (other than an estate
            or trust) held by a dealer or other fiduciary organized,
            incorporated, or (if an individual) resident in the United States;
            and

      (H)   any partnership or corporation if:

            (1)   organised or incorporated under the laws of any foreign
                  jurisdiction; and

            (2)   formed by a U.S. Person principally for the purpose of
                  investing in securities not registered under the Act, unless
                  it is organized or incorporated, and owed, by accredited
                  investors (as defined in Section 230.501(a)) who are not
                  natural persons, estates or trusts.

      The following are not "U.S. Persons":

      (A)   any discretionary account or similar account (other than an estate
            or trust) held for the benefit or account of a non-U.S. Person by a
            dealer or other professional fiduciary organized, incorporated, or
            (if an individual) resident in the United States;

      (B)   any estate of which any professional fiduciary acting as executor or
            administrator is a U.S. Person if:

            (1)   an executor or administrator of the estate who is not a U.S.
                  Person has sole or shared investment discretion with respect
                  to the assets of the estate; and

            (2)   the estate is governed by foreign law;

                                       27
<PAGE>

      (C)   any trust of which any professional fiduciary acting as trustee is a
            U.S. Person, if a trustee who is not a U.S. Person has sole or
            shared investment discretion with respect to the trust assets, and
            no beneficiary of the trust (and no settlor if the trust is
            revocable) is a U.S. Person;

      (D)   any employee benefit plan established and administered in accordance
            with the law of a country other than the United States and customary
            practices and documentation of such country;

      (E)   any agency or branch of a U.S. Person located outside the United
            States if:

            (1)   the agency or branch operates for valid business reasons; and

            (2)   the agency or branch is engaged in the business of insurance
                  or banking and is subject to substantive insurance or banking
                  regulation, respectively, in the jurisdiction where located;
                  and

      (F)   the International Monetary Fund, the International Bank for
            Reconstruction and Development, the Inter-American Development Bank,
            the Asian Development Bank, the African Development Bank, the United
            Nations, and their agencies, affiliates and pension plans, and any
            other similar international organizations, their agencies,
            affiliates and pension plans.

1.2   CONSTRUCTION

      In this schedule where the context admits:-

      (A)   any question whether a person is connected with another shall be
            determined in accordance with s.839 Income and Corporation Taxes Act
            1988, (subject to the deletion of the words from "Except" to
            "arrangements" in sub-section (4) thereof) which shall apply in
            relation to this schedule as it applies in relation to that act;

      (B)   references to the "Company" shall include each of the Subsidiaries;

      (C)   reference to any English Law and to any English legal term for any
            action, remedy, method of judicial proceeding, legal document, legal
            status, court, official or any legal concept or thing shall in
            respect of any jurisdiction other than England be deemed to include
            that which most nearly approximates in that jurisdiction to the
            English legal term; and

      (D)   where, in this schedule 5, a term is defined in and for the purposes
            of a particular paragraph, the relevant definition shall apply,
            where the context admits, for all other purposes of this schedule.

2.    THE COMPANY AND THE WARRANTORS

2.1   CAPACITY

      Each of the Obligors has full power and authority to enter into and
      perform this Deed and the Form of Acceptance and Election, and may execute
      and deliver this Deed and the Form of Acceptance and Election and perform
      his obligations thereunder without requiring or obtaining the consent of
      its shareholders or of any other person or Authority and this Deed
      constitutes valid and binding obligations of the Obligors in accordance
      with its terms.

                                       28
<PAGE>

2.2   OWNERSHIP OF OD2 SHARES

      (A)   Each Obligor warrants that it:

            (1)   is the registered and sole beneficial owner of the number of
                  OD2 Shares and/or rights to subscribe for shares as set out
                  against its name in schedule 1 or schedule 2 as the case may
                  be and has the right to transfer the entire legal and
                  beneficial title to the same free from any Encumbrances;

            (2)   there is no dispute concerning the title of such Obligor to
                  its OD2 Shares or its ability to sell the same and no other
                  person has claimed to have title to any of such OD2 Shares or
                  to be entitled to any interest therein;

            (3)   no Obligor is engaged in any litigation, arbitration or other
                  proceedings in any way relating to his title to the OD2 Shares
                  to be sold by him, and the Company has not received any
                  application for the rectification of its register of members;
                  and.

      (B)   There are no circumstances likely to give rise to any of the matters
            referred to in paragraph 2.2(A) in respect of the OD2 Shares to be
            sold by each such Obligor.

2.3   LIABILITIES OWING TO OR BY WARRANTORS

      Other than accrued salary and expenses incurred in the ordinary course of
      their employment there is not outstanding any indebtedness or other
      liability (actual or contingent) owing by the Company to any Warrantor or
      to any Director or any person connected with any of them, nor is there any
      indebtedness owing to the Company by any such person.

2.4   COMPETING INTERESTS

      None of the Warrantors nor any person connected with any of them has any
      interest, direct or indirect, in any business other than that now carried
      on by the Company which is or is likely to be or become competitive with
      the business or any proposed business which the board of the Company has
      resolved to enter into.

3.    THE COMPANY'S CONSTITUTION

3.1   SHARE CAPITAL

      The OD2 Shares comprise the whole of the issued and allotted share capital
      of the Company and schedule 4 contains true particulars of the authorised
      and issued share capital of the Subsidiaries and all the shares there
      shown as issued are in issue fully paid and are beneficially owned and
      registered as set out therein and free from any Encumbrances. There is no
      dispute concerning the title to any such shares and no other person has
      claimed to have title to the same or to be entitled to any interest
      therein and there is no litigation, arbitration or other proceedings in
      any way relating to the title to such shares and no Subsidiary has
      received any application for the rectification of its register of members.
      There are no circumstances likely to give rise to any such dispute,
      proceedings or application.

3.2   CAPITALISATION TABLE

      The fully diluted equity spreadsheet set out in the Disclosure Letter
      fully and accurately details the holders' name, address (being the
      residential or principal place of business), number of shares held and any
      rights to call for the allotment, issue, sale, transfer or conversion of
      any share or loan capital under any option or other agreement (including
      conversion rights), in the Company.

                                       29
<PAGE>

3.3   OPTIONS ETC.

      No person has the right (whether exercisable now or in the future and
      whether contingent or not) to call for the allotment, issue, sale,
      transfer or conversion of any share or loan capital of the Company under
      any option or other agreement (including conversion rights and rights of
      pre-emption).

3.4   MEMORANDUM AND ARTICLES

      The copy of the memorandum and articles of association of the Company
      annexed to the Disclosure Letter is true and complete and has embodied
      therein or annexed to it a copy of every resolution or agreement as is
      required by law to be embodied in or annexed to it, and sets out
      completely the rights and restrictions attaching to each class of
      authorised share capital of the Company.

3.5   COMPANY RESOLUTIONS

      Neither the Company nor any class of its members has passed any resolution
      (other than resolutions relating to business at annual general meetings
      which was not special business) which have not been filed at Companies
      House.

4.    THE COMPANY AND ITS INVESTMENTS

4.1   PARTICULARS OF THE COMPANY AND SUBSIDIARIES

      The particulars of the Company and the Subsidiaries set out in schedule 3
      and schedule 4 are true and complete and, other than the Subsidiaries, the
      Company has no subsidiaries.

4.2   INVESTMENTS, ASSOCIATIONS AND BRANCHES

      The Company:-

      (A)   is not the holder or beneficial owner of, and has not agreed to
            acquire, any share or other capital of any other company or
            corporation (whether incorporated in the United Kingdom or
            elsewhere) other than of the Subsidiaries;

      (B)   is not, and has not agreed to become, a member of any partnership,
            joint venture, consortium or other unincorporated association, body
            or undertaking in which it is to participate with any other in any
            business or investment; and

      (C)   has no branch, agency or place of business outside England and no
            permanent establishment (as that expression is defined in the
            relevant double taxation relief orders current at the date of this
            Deed) outside the United Kingdom.

4.3   CITY CODE

      During the 10 years prior to the date of this Deed, the Company has not:-

      (A)   had at any time any equity share capital listed or admitted to
            trading on the London Stock Exchange;

      (B)   had any dealings in its equity share capital advertised in a
            newspaper on a regular basis for a continuous period of at least 6
            months;

      (C)   had at any time any equity share capital subject to a marketing
            arrangement as described in s. 163(2)(b) Companies Act 1985, such as
            dealings on the Unlisted Securities Market or Alternative Investment
            Market; or

                                       30
<PAGE>

      (D)   filed a prospectus with the Registrar of Companies for the issue of
            any equity share capital.

5.    THE COMPANY AND THE LAW

5.1   COMPLIANCE WITH LAWS

      The Company has conducted its business in all material respects in
      accordance with all applicable Laws of the United Kingdom and each other
      jurisdiction in which it has an establishment or conducts any business and
      there is no order, decree or judgment of any Authority outstanding against
      the Company or, so far as the Warrantors are aware, any person for whose
      acts the Company is vicariously liable which may have a material adverse
      effect upon the assets or business of the Company.

5.2   AUTHORISATIONS

      (A)   All Authorisations necessary under any Law for utilising any of the
            assets of the Company or carrying on effectively any aspect of its
            business in the places and in the manner in which such business is
            now carried on have been obtained by the Company and all of them are
            in full force and effect and none of them is limited in duration or
            subject to onerous conditions.

      (B)   All reports, returns and information required by any Law or as a
            condition of any Authorisations to be made or given to any person or
            Authority in connection with the Company's business have been made
            or given to the appropriate person or Authority.

      (C)   The utilisation of any of the assets of the Company or the carrying
            on of any aspect of the Company's business or any business now being
            carried on at any of the Premises is not in breach of any of the
            terms and conditions of any Authorisation and so far as the
            Warrantors are aware there is no circumstance which indicates that
            any Authorisation is likely to be suspended, cancelled or revoked or
            that any of them will expire within a period of one year from the
            date of this Deed.

      (D)   The making of or Completion of the Offer will not give rise to any
            restriction on the right of the Company to carry on its business
            which does not now apply to the Company.

5.3   BREACH OF THE LAW

      Neither the Company, nor any of its officers, agents or employees (during
      the course of their duties in relation to the Company) have committed, or
      omitted to do, any act or thing the commission or omission of which is, or
      could be, in contravention of any Law and no notice or communication has
      been received with respect to any alleged, actual or potential violation
      of or failure to comply with, any Law.

5.4   LITIGATION

      (A)   Neither the Company, nor any of its officers, agents or employees
            (during the course of their duties in relation to the Company) is
            engaged in or the subject of any litigation or arbitration or
            administrative or criminal proceedings whether as claimant,
            plaintiff, defendant or otherwise. The Company has not received any
            written or verbal notification that it is subject to any
            investigation or enquiry by any Authority which adversely affects or
            is likely to have an adverse effect on the Company's business and/or
            the ability of the Company or any purchaser to carry on the
            Company's business in the same manner and to the same extent as
            previously carried on.

                                       31
<PAGE>

      (B)   The Company has not received any written or verbal notification that
            any litigation or arbitration or administrative or criminal
            proceedings or investigation or enquiry are pending or threatened or
            against the Company or any such officer, agent or employee; and so
            far as the Warrantors are aware there are no facts or circumstances
            likely to give rise to the same.

      (C)   Neither the Company nor any of its officers or employees (in the
            course of his duties in relation to the Company) has been a party to
            any undertaking or assurance given to any Authority or the subject
            of any injunction or other similar court order which is still in
            force.

5.5   FAIR TRADING

      (A)   No agreement, practice or arrangement carried on by the Company or
            to which the Company is or has in the 4 years prior to the date of
            this Deed been a party:

            (1)   is in breach of or would on the expiry or withdrawal of any
                  applicable transitional period provided for under Schedule 13
                  Competition Act 1998 be in breach of the Chapter I or the
                  Chapter II prohibition as defined in the Competition Act 1998;
                  or

            (2)   infringes Article 81 of the Treaty or constitutes an abuse of
                  a dominant position contrary to Article 82 of the Treaty or
                  infringes any regulation or other enactment made under Article
                  83 and/or Article 308 of the Treaty or is or has been the
                  subject of any enquiry, complaint, investigation or proceeding
                  in respect thereof; or

            (3)   has been notified to the Director General of Fair Trading (or
                  any "regulator" as that term is defined in s.54 Competition
                  Act 1998) pursuant to the Competition Act 1998 or to the
                  Competition Directorate-General of the Commission of the
                  European Communities (the "European Commission") and/or to the
                  EFTA Surveillance Authority; or

            (4)   is by virtue of its terms or by virtue of any practice for the
                  time being carried on in connection therewith a "Consumer
                  Trade Practice" within the meaning of s.13 Fair Trading Act
                  1973 and susceptible to or under reference to the Consumer
                  Protection Advisory Committee or the subject matter of a
                  report to the Secretary of State or the subject matter of an
                  Order by the Secretary of State under the provisions of Part
                  II of that Act; or

            (5)   infringes any other competition, restrictive trade practice,
                  anti-trust, fair trading or consumer protection Law applicable
                  in any jurisdiction in which the Company has assets or carries
                  on or intends to carry on business or in which the activities
                  of the Company may have an effect.

      (B)   The Company has not received notice that it is or has been the
            subject of any enquiry, complaint, investigation, proceeding,
            reference or report under the Fair Trading Act 1973, the Competition
            Act 1998 or the Competition Act 1980 or has constituted an
            anti-competitive practice within the meaning of that Act.

      (C)   The Company has not given any assurance or undertaking (written or
            oral) to the Restrictive Practices Court, the Director General of
            Fair Trading, the Competition Commission, the Secretary of State for
            Trade and Industry, the European Commission, the EFTA Surveillance
            Authority or the Courts of the European Communities, or to any other
            Authority and is not subject to or in default or contravention of
            any such assurance or undertaking or any Article, Act, decision,
            direction, regulation, order or other instrument or undertaking
            relating to any matter referred to in this paragraph 5.5.

                                       32
<PAGE>

      (D)

            (1)   None of the activities of the Company as currently conducted
                  could give rise to the imposition of any anti-dumping duty or
                  other sanction under any trade regulation Law in respect of
                  any products manufactured by the Company in recognised
                  market-economy countries or in which the Company trades from
                  such countries.

            (2)   No anti-dumping duty or other sanction under any trade
                  regulation legislation is or has been in force in any area in
                  which the Company carries on or intends to carry on business
                  in respect of products manufactured by the Company or in which
                  the Company trades.

            (3)   No undertaking has been given by the Company to any Authority
                  under any anti-dumping or other trade regulation Law.

      (E)

            (1)   The Company is not and has not been in receipt of any aid
                  which could be construed as falling within Article 87(1) of
                  the Treaty other than existing aid as that term is defined in
                  Council Regulation 659/99/EC.

            (2)   The Company is not and has not received any written
                  notification that it is the subject of an enquiry, complaint,
                  investigation, proceeding or review in relation to the receipt
                  or alleged receipt by it of any aid or alleged aid or the
                  misuse by it of any aid received by it and the Company is not
                  aware of any pending or threatened enquiry, complaint,
                  investigation, proceeding or review in relation to any such
                  matters.

      (F)

            (1)   The Company is not a party to any contract or involved in the
                  award of any contract of whatever nature which was awarded or
                  is proposed to be awarded in breach of any Law or
                  administrative practice relating to the procurement of works,
                  goods or services or which has been, is or could reasonably be
                  the subject of an enquiry, complaint, investigation,
                  proceeding or review in relation to such matters.

            (2)   So far as the Warrantors are aware, there is no pending or
                  threatened enquiry, complaint, investigation, proceeding or
                  review in relation to any matter described in paragraph
                  5.5(F)(1) above.

5.6   PRODUCT LIABILITY

      (A)   There is no claim in respect of Product Liability outstanding or
            threatened against or expected by the Company in relation to its
            business and so far as the Warrantors are aware there are no
            circumstances which are likely to give rise to any such claim. For
            this purpose "Product Liability" means a liability arising out of
            death, personal injury or damage to property caused by a defective
            product or defective services sold, supplied or provided by the
            Company in the course of its business on or prior to the date of
            this Deed.

      (B)   The Company has not manufactured, sold or supplied any product or
            service which:-

            (1)   is, was or will become, in any material respect, faulty or
                  defective; or

                                       33
<PAGE>

            (2)   does not comply in any material respect with any warranty or
                  representation, express or implied, made by or on behalf of
                  the Company in respect of it or with all Laws, standards and
                  requirements applicable to it; or

            (3)   was sold or supplied on terms that the Company accepts an
                  obligation to service or repair or replace such products after
                  delivery.

      (C)   The Company has not received a prohibition notice, a notice to warn
            or a suspension notice under the Consumer Protection Act 1987 in
            relation to any of its products.

5.7   HEALTH AND SAFETY

      The Company has in relation to its plant and machinery and other fixed
      assets, the Premises, its employees and any person who might be affected
      by the conduct of the Company's business, complied in all material
      respects with all requirements of all Laws relating to health and safety
      including those imposed by the Health and Safety at Work etc Act 1974 and
      all regulations made thereunder, and no written notice has been received
      by the Company from any Authority in relation to any actual or alleged
      breach of such requirements and neither is the Company in receipt of any
      claim by any person in relation to any such breach and the Warrantors are
      not aware of any circumstances which may lead to such action or claim.

5.8   ENVIRONMENTAL

      (A)   DEFINITIONS

      For the purpose of this paragraph 5.8, the following terms shall have the
      following meanings:

            "ENVIRONMENT" means all or any of the media of air, water and land
            (wherever occurring) and any living organisms or systems supported
            by those media and in relation to the media of air and water
            includes without limitation, the air and water within buildings and
            the air and water within other natural or man-made structures above
            or below ground and includes all natural resources and the built
            environment;

            "ENVIRONMENTAL LAW" means all or any Laws, and any relevant code of
            practice, guidance, note, standard or other advisory material issued
            by any Authority which from time to time relates to Environmental
            Matters;

            "ENVIRONMENTAL MATTERS" means the pollution of the Environment, the
            protection of the Environment and human health, the health and
            safety of employees and other persons in the workplace or as a
            result of workplace activities, the protection of natural amenity,
            the creation of any noise, vibration, radiation, common law or
            statutory nuisance, or the production, disposal, release, use,
            storage, spillage, deposit, escape, discharge, leak, emission,
            recovery, transport of, or radiation from any hazardous material or
            waste;

            "ENVIRONMENTAL PERMITS" means all Authorisations or agreements
            required under Environmental Law in relation to the carrying on of
            the business of the Company or the occupation or use of the Premises
            or Former Premises; and

            "FORMER PREMISES" means any land or premises or interest therein
            formerly owned or occupied by the Company.

      (B)   BASIS OF WARRANTIES

                                       34
<PAGE>

            The Warranties contained in this paragraph 5.8 are given on the
            basis that the Warrantors acknowledge that the Purchaser has not
            searched any public register or made enquiries of any Authority and
            has no knowledge of any matters which might be revealed by such
            searches or enquiries.

      (C)   ENVIRONMENTAL MATTERS

            (1)   The Company and the Subsidiaries have complied at all times
                  with Environmental Law.

            (2)   All necessary Environmental Permits have been lawfully
                  obtained and are in full force and effect and the Company and
                  the Subsidiaries have complied at all times with all
                  conditions and limitations in all Environmental Permits.

            (3)   The Company and the Subsidiaries have complied with any
                  internal or published statements of corporate environmental
                  policy and operating procedures.

5.9   INDUCEMENTS

      So far as the Warrantors are aware no officer, agent or employee of the
      Company or any of the Subsidiaries has paid or accepted any unlawful bribe
      or inducement (monetary or otherwise) or used any of the Company's assets
      unlawfully to obtain an advantage for himself or any other person.

5.10  FRAUD ETC

      As far as the Warrantors are aware, no officer, agent or employee of the
      Company has committed or purported to commit the Company to any contract,
      commitment, engagement, arrangement or obligation of any kind which is not
      in accordance with the authority given to such officer, agent or employee
      by the directors of the Company or any officer or executive of the Company
      responsible for conferring such authority and no officer, agent or
      employee of the Company or any of its customers or suppliers or any other
      person has committed any fraud upon the Company or has misappropriated any
      of its property or assets or falsified any of its records.

6.    THE COMPANY'S AND WARRANTORS' SOLVENCY

6.1   WINDING-UP

      No order has been made, petition presented or resolution passed for the
      winding up of the Company or any of the Warrantors and no meeting has been
      convened for the purpose of winding up the Company or any of the
      Warrantors.

6.2   ADMINISTRATION AND RECEIVERSHIP

      No steps have been taken for the appointment of an administrator or
      receiver (including an administrative receiver) of all or any part of the
      Company's or any of the Warrantors' assets.

6.3   COMPOSITIONS

      Neither the Company nor any of the Warrantors has made or proposed any
      arrangement or composition with its or his creditors or any class of its
      or his creditors.

6.4   INSOLVENCY

      Neither the Company nor any of the Warrantors is insolvent, or unable to
      pay its or his debts within the meaning of the insolvency legislation
      applicable to the Company and the Warrantors respectively

                                       35
<PAGE>

      and neither the Company nor any of the Warrantors has stopped paying its
      or his debts as they fall due.

6.5   UNSATISFIED JUDGMENTS

      No distress, execution or other process has been levied against the
      Company or action taken to repossess goods in the Company's possession. No
      unsatisfied judgment is outstanding against the Company.

6.6   FLOATING CHARGES

      No floating charge created by the Company has crystallised and, so far as
      the Warrantors are aware, there are no circumstances likely to cause such
      a floating charge to crystallise.

6.7   ANALOGOUS EVENTS

      No event analogous to any of the matters detailed in paragraph 6.1 to 6.6
      has occurred in or outside England in respect of the Company or any of the
      Subsidiaries.

7.    THE COMPANY'S ACCOUNTS AND RECORDS

7.1   BOOKS AND RECORDS

      All accounts, books, ledgers, financial and other records of whatsoever
      kind ("RECORDS") of the Company:

      (A)   have been fully, properly and accurately maintained on a consistent
            basis, are up to date and in the possession and control of the
            Company and contain true, complete and accurate records of all
            matters required by law to be entered therein;

      (B)   do not contain or reflect any material inaccuracies or
            discrepancies; and

      (C)   give and reflect a true and fair view of the financial, contractual
            and trading position of the Company and of its fixed and current
            assets and liabilities (actual and contingent) debtors and creditors
            (as appropriate) and all other matters which ought or would normally
            be expected to appear therein

      and no notice or allegation that any of the records is incorrect or should
      be rectified has been received.

7.2   ACCOUNTS

      The Audited Accounts:

      (A)   were prepared in accordance with the requirements of all relevant
            Laws and accounting practices generally accepted in the United
            Kingdom at the time they were audited and commonly adopted by
            companies carrying on business similar to that of the Company
            (including all applicable Statements of Standard Accounting Practice
            and Financial Reporting Standards published by the Accounting
            Standards Board or the Accounting Standards Committee and not
            superseded and all applicable Statements of Recommended Practice
            published by bodies recognised by the Accounting Standards Board);

      (B)   show a true and fair view of the assets and liabilities of the
            Company as at, and the profits of the Company for the accounting
            reference period ended on, the Balance Sheet Date;

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      (C)   are not affected by any unusual or non-recurring items;

      (D)   in the case of consolidated financial statements, show a true and
            fair view of the state of affairs of the Company and the
            Subsidiaries as a whole; and

      (E)   apply bases and policies of accounting which have been consistently
            applied in the audited financial statements of the Company and, in
            the case of the Company and the Subsidiaries, in the audited
            consolidated financial statements for the three accounting reference
            periods ending on the Balance Sheet Date.

7.3   LOSSES

      The losses of the Company for the four years ended on the Balance Sheet
      Date as shown by the Audited Accounts and the audited accounts for such
      previous years and the trend of losses thereby shown have not (save as
      fairly disclosed in such accounts) been affected by the inclusion of
      non-recurring items of income or expenditure, by transactions of an
      abnormal or unusual nature or entered into otherwise than on normal
      commercial terms or by any other factors rendering such losses for all or
      any of those periods exceptionally high or low.

7.4   PROVISION FOR LIABILITIES

      Full provision has been made in the Audited Accounts for all actual
      liabilities of the Company outstanding at the Balance Sheet Date and
      proper provision (or note) in accordance with generally accepted
      accounting principles in the United Kingdom at the time they were audited
      has been made therein for all other liabilities of the Company then
      outstanding whether contingent, quantified, disputed or not including the
      cost of any work or material for which payment has been received or credit
      taken, any future loss which may arise in connection with uncompleted
      contracts and any claims against the Company in respect of completed
      contracts.

7.5   MANAGEMENT ACCOUNTS

      The Management Accounts have been carefully prepared in accordance with
      accounting policies consistent with those used in preparing the Audited
      Accounts and on a basis consistent with the management accounts prepared
      in the preceding year. The cumulative profits, assets and liabilities of
      the Company stated in the Management Accounts have not been materially
      mis-stated and are not materially inaccurate and the Warrantors do not
      consider the Management Accounts misleading.

7.6   RETURNS

      The Company has complied with the provisions of the Companies Acts and all
      returns, particulars, resolutions and other documents required under any
      Law to be delivered on behalf of the Company to the Registrar of Companies
      or to any other Authority have been properly made and delivered. All such
      documents which have been so delivered, whether or not required by any
      Law, were true and accurate when so delivered and the Company has not
      received notification of the levy of any fine or penalty for
      non-compliance by the Company or any director of the Company.

8.    THE COMPANY'S BUSINESS AND THE EFFECT OF THE SALE

8.1   BUSINESS SINCE THE BALANCE SHEET DATE

      Since the Balance Sheet Date:

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      (A)   the Company has carried on its business in the ordinary and usual
            course so as to maintain it as a going concern and without any
            interruption or alteration in the nature, scope or manner of its
            business;

      (B)   there has been no material deterioration in the financial or trading
            position, profitability, prospects or turnover of the Company;

      (C)   there has been no significant event or occurrence (including the
            loss of any significant customer or supplier) which has had or may
            following Completion have a material adverse affect on the Company's
            business or its value, profitability or prospects;

      (D)   the Company has not borrowed or raised any money or taken any form
            of financial facility (whether pursuant to a factoring arrangement
            or otherwise);

      (E)   the Company has paid its creditors in accordance with their
            respective credit terms or (if not) within the time periods usually
            applicable to such creditors and save as disclosed there are no
            debts outstanding by the Company which have been due for more than
            six weeks;

      (F)   the Company has not entered into, or agreed to enter into, any
            commitment to acquire or dispose of on capital account any asset of
            a value in excess of (pound)50,000 or any commitment involving
            expenditure by it on capital account;

      (G)   no share or loan capital has been issued or agreed to be issued by
            the Company;

      (H)   other than in respect of any bonus issue of shares validly declared
            pursuant to the exercise of any employee share options, no
            distribution of capital or income has been declared, made or paid in
            respect of any share capital of the Company and (excluding
            fluctuations in overdrawn current accounts with bankers) no loan or
            share capital of the Company has been repaid in whole or part or has
            become liable to be repaid in whole or part;

      (I)   the Company has not done or omitted to do anything which might
            prejudicially affect its goodwill; and

      (J)   no substantial customer or supplier representing more than five per
            cent of sales or suppliers of any product or service of the Company
            has since 31 December 2003:

            (1)   ceased or reduced the level of its trade with or supplies to
                  the Company or indicated an intention to do any of the
                  foregoing; or

            (2)   changed or indicated an intention to change the terms on which
                  it is prepared to trade with or supply the Company.

8.2   COMMISSION

      No one is entitled to receive from the Company any finder's fee,
      brokerage, or other commission in connection with this Deed or the sale
      and purchase of shares in the Company.

8.3   CONSEQUENCE OF SHARE ACQUISITION BY THE PURCHASER

      The acquisition of the OD2 Shares by the Purchaser and compliance with the
      terms of this Deed will not:

      (A)   cause the Company to lose the benefit of any licence, consent,
            permit, approval or authorisation (public or private) or any right
            or privilege it presently enjoys or relieve any person of any
            obligation to the Company (whether contractual or otherwise) or
            enable any

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<PAGE>

            person to determine any such obligation or any contractual right or
            benefit now enjoyed by the Company or to exercise any right whether
            under an agreement with the Company or otherwise;

      (B)   result in any present or future indebtedness of the Company becoming
            due or capable of being declared due and payable prior to its stated
            maturity;

      (C)   give rise to or cause to become exercisable any right of
            pre-emption;

      (D)   result in a breach of, or constitute a default under any provision
            of the memorandum or articles of association of the Company;

      (E)   result in a breach of, or constitute a default under any order,
            judgement or decree of any Authority by which the Company is bound
            or subject; and

      (F)   result in a breach of, or constitute a default under the terms,
            conditions or provisions of any agreement, understanding,
            arrangement or instrument (including, but not limited to, any of the
            Company's contracts)

      and, to the best of the knowledge and belief of the Warrantors, the
      Company's relationships with clients, customers, suppliers and employees
      will not be adversely affected thereby and the Warrantors are not aware of
      any circumstances (whether or not connected with the Purchaser or the sale
      of the OD2 Shares) indicating that, nor have they been informed or are
      otherwise aware that any person who now has business dealings with the
      Company would or might cease to do so from and after the Offer Date.

8.4   GRANTS

      The Company has not applied for or received any grant or other financial
      assistance from any Authority.

8.5   INSURANCES

      (A)   Full particulars of all the insurance policies (including the limit
            and basis of cover under each policy and the amount of the
            applicable excess) in which the Company has an interest (the
            "COMPANY'S INSURANCEs") are given in the Disclosure Letter. The
            Company's Insurances afford the Company adequate cover against fire
            and such other risks as companies carrying on a similar business to
            the Company commonly cover by insurance and in particular:

            (1)   the assets of the Company are insured in their full
                  replacement value;

            (2)   the Computer Systems are insured for all foreseeable risks to
                  their full replacement value, together with incidental
                  expenses, including, without limitation, costs and expenses of
                  data recovery and reconstruction; and

            (3)   the Company is now, and has at all material times been, fully
                  covered against accident, damage, injury, third party loss
                  (including product liability), loss of profits and other risks
                  normally insured against by companies carrying on a similar
                  business.

      (B)   All the Company's Insurances are in full force and effect and will
            be maintained in full force without alteration pending Completion
            and all premiums have been paid on time. So far as the Warrantors
            are aware, there are no circumstances which might lead to any
            liability under any of the Company's Insurances being avoided by the
            insurers or the premiums being

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<PAGE>

            increased. There is no claim outstanding under any of the Company's
            Insurances nor are the Warrantors aware of any circumstances likely
            to give rise to a claim.

8.6   TRADING NAME

      The Company does not trade under any name other than its corporate name.

8.7   TRADE ASSOCIATIONS

      Full particulars of all trade or business associations of which the
      Company is a member are set out in the Disclosure Letter, and the Company
      is now and has been at all material times in compliance in all material
      respects with the regulations or guidelines laid down by any such trade or
      business association.

8.8   TERMS OF BUSINESS

      True and complete copies of the standard terms upon which the Company
      carries on business or provides goods or services to any person are
      annexed to the Disclosure Letter and the Company does not provide and has
      not provided any goods or services to any person on terms which differ
      from its standard terms as so annexed.

9.    THE COMPANY'S ASSETS

9.1   NET ASSET VALUE

      Save for any depreciation which has been applied in accordance with UK
      GAAP and the Company's normal accounting policies, in the period between
      the Balance Sheet Date and the date of this Deed, the value of the net
      tangible assets (which shall exclude any assets included in working
      capital) of the Company at the date of this Deed determined in accordance
      with the same accounting policies as those applied in the Audited Accounts
      (and on the basis that each fixed asset is valued at a figure no greater
      than the value attributed to it in the Audited Accounts or, in the case of
      any fixed asset acquired by the Company after the Balance Sheet Date, at a
      figure no greater than cost) is not less than the value of the net
      tangible assets of the Company at the Balance Sheet Date as shown in the
      Audited Accounts.

9.2   ASSETS AND CHARGES

      (A)   Except for current assets disposed of by the Company in the ordinary
            course of its business, the Company is the owner legally and
            beneficially of and has good marketable title to all assets included
            in the Audited Accounts and all assets which have been acquired by
            the Company since the Balance Sheet Date and no Encumbrance is
            outstanding nor is there any agreement or commitment to give or
            create or allow any Encumbrance over or in respect of the whole or
            any part of the Company's assets, undertaking, goodwill or uncalled
            capital and no claim has been made by any person that he is entitled
            to any such Encumbrance.

      (B)   Since the Balance Sheet Date, save for disposals in the ordinary
            course of its business, the assets of the Company have been in the
            possession of, or under the control of, the Company.

      (C)   No asset is shared by the Company with any other person. The Company
            does not require or depend for the continuation of its business or
            for the continuation of the method or manner or scope of operation
            of its business in the same way or manner or on the same basis as
            heretofore upon any assets, premises facilities or services of any
            other person.

      (D)   No charge in favour of the Company is void or voidable for want of
            registration.

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<PAGE>

9.3   DEBTS

      Save to the extent of the provision or reserve thereof contained or
      reflected in the Audited Accounts, any debts owed to the Company as
      recorded in the Company's books and records are good and collectable in
      the ordinary course of business. The rights of the Company in respect of
      such debts are valid and enforceable and are not subject to any defence,
      right of set-off or counter-claim, withholding or other deduction and no
      act has been done or omission permitted whereby any of them has ceased or
      might cease to be valid and enforceable in whole or in part. No amount
      included in the Audited Accounts as owing to the Company at the Balance
      Sheet Date has been released for an amount less than the value at which it
      was included in the Audited Accounts or is now regarded by the Warrantors
      as irrecoverable in whole or in part. The Company has not factored or
      discounted any of its debts or other receivables or agreed to do so.

9.4   TITLE RETENTION

      The Company has not acquired or agreed to acquire any material asset on
      terms that property therein does not pass until full payment is made.

9.5   FIXED ASSETS

      All fixed assets of the Company including all fixed and movable plant and
      machinery, vehicles, Computer Systems and other equipment used in, or in
      connection with, the business of the Company:

      (A)   are in good repair and condition (taking into account their age and
            level of use), are in satisfactory working order and have been
            regularly and properly serviced and maintained and none is
            dangerous, inefficient, obsolete or in need of renewal or
            replacement;

      (B)   are not unsafe, dangerous or in such a physical condition as to
            contravene the terms of any contract (express or implied) between
            the Company and any of its employees, customers or any other person,
            or otherwise contravene or infringe any Law applicable to the
            Company or any obligation to which it is subject or breach any duty
            of care which it owes;

      (C)   are capable, and will (subject to fair wear and tear) be capable,
            over the period of time during which they will be written down to a
            nil value in the accounts of the Company, of doing the work for
            which they were designed or purchased; and

      (D)   are not surplus to the Company's current or proposed requirements.

9.6   INTELLECTUAL PROPERTY RIGHTS

      (A)   Apart from the Listed IP, the Company does not own any registered
            Intellectual Property or applications to register Intellectual
            Property.

      (B)   The Listed IP contains details of all material unregistered
            Intellectual Property owned by the Company.

      (C)   The Company is the sole legal, beneficial and (where relevant)
            registered owner of the Listed IP.

      (D)   All Intellectual Property owned by the Company is owned free from
            Encumbrances.

      (E)   None of the Warrantors own any Intellectual Property that is used by
            the Company.

      (F)   In the last 4 years, the Company has not received:

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<PAGE>

            (1)   notice that any Intellectual Property owned by or licensed to
                  the Company is being claimed, opposed or challenged by any
                  third party;

            (2)   written advice from an in-house or external professional
                  expressing doubt on the validity of any Intellectual Property
                  owned by or licensed to the Company.

      (G)   All fees, costs, charges and taxes required to maintain the Listed
            IP with the relevant registries and authorities have been duly paid
            on time.

      (H)   The confidential information and know how used by the Company is
            kept confidential, and has not been disclosed to third parties other
            than in the ordinary course of business.

      (I)   The Company is not subject to any injunction or undertaking
            prohibiting the infringement of Intellectual Property.

      (J)   The activities of the Company that relate to making sound or video
            recordings available to third parties (whether through streaming,
            downloading or any other means) have not infringed the Intellectual
            Property of any third party during the last 4 years. The Warrantors
            have no reason for believing that any other activities of the
            Company may have infringed the Intellectual Property of any third
            party during the last 4 years.

      (K)   The Warrantors have no reason for believing that any material
            Intellectual Property owned by the Company may have been infringed
            during the last 2 years.

      (L)   The Company is not engaged in proceedings, nor has it in the last 2
            years received or given written notice threatening proceedings, for
            infringement of Intellectual Property.

      (M)   Save as may appear from the Listed IP Agreements:

            (1)   no third party has been authorised to use any material
                  Intellectual Property owned by the Company nor has a third
                  party been granted any other right, title or interest in such
                  Intellectual Property;

            (2)   other than off the shelf software licences the Company does
                  not use or control any Intellectual Property under licence
                  from a third party.

      (N)   So far as the Warrantors are aware, the terms of the Listed IP
            Agreements have been complied with by all parties in all material
            respects.

      (O)   In the last 2 years, the Company has not given or received written
            notice that purports to avoid, repudiate, rescind or terminate any
            agreement authorising the use of Intellectual Property.

      (P)   Apart from the Listed Domain Names, the Company does not own any
            domain names.

      (Q)   The Company complies in all material respects with all applicable
            laws and regulations regarding the collection, handling and use of
            personal data.

      (R)   The Company has not been subject to nor threatened with any
            objections, claims, investigations or proceedings (whether of a
            criminal, civil or administrative nature) in respect of the manner
            in which the Company collects, handles or uses personal data.

9.7   COMPUTER SYSTEMS

      (A)   Complete and accurate particulars of the Computer Systems have been
            Disclosed;

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<PAGE>

      (B)   Save as may appear from any Computer Contracts that have been
            Disclosed, the Company is the sole owner of the Computer Systems
            free from Encumbrances;

      (C)   The Company is entitled to use and, where necessary, to grant
            sub-licences to third parties to use the Computer Systems for the
            normal purposes of its business. All royalties and other payments
            due under the Computer Contract have been paid when due and there
            has been no act or default by the Company or, where appropriate, its
            sub-licensees or any other person which may in any way result in any
            of the Computer Contracts being terminated. None of such licences
            will be terminable as a result of the execution or completion of
            this Deed or the Offer.

      (D)   The Computer Systems have been regularly maintained and supported
            and the Company has the benefit of appropriate maintenance and
            support agreements in respect of the Computer Systems with an
            independent contractor (not being any of the Warrantors or any
            person connected with any of them), details of which are Disclosed.

      (E)   The Computer Systems have adequate capability and capacity for all
            the processing and other functions currently required by the Company
            as of the Offer Date.

      (F)   The Company has an appropriate disaster recovery contract with a
            reputable independent service provider (not being any of the
            Warrantors or any person connected with any of them), details of
            which are Disclosed.

      (G)   The Company has and follows appropriate procedures for ensuring the
            security of the Computer Systems and the confidentiality and
            integrity of all data stored within it.

      (H)   The Company has possession of control of the source code of all
            software in the Computer Systems (other than commercial off the
            shelf software), and has all rights necessary to modify or procure
            the modification of such software.

      (I)   During the last three years, the Computer Systems have not:

            (1)   failed to function in any material respect;

            (2)   been infected by any software virus (so far as the Warrantors
                  are aware); nor

            (3)   been accessed by any unauthorised person (so far as the
                  Warrantors are aware).

10.   PREMISES

10.1  TITLE TO PREMISES

      (A)   The particulars of the Premises shown in schedule 7 are true and
            correct. Except as shown the Company has no other estate or interest
            in or over land or premises and does not occupy any other land or
            premises and has not entered into any agreement to acquire or
            dispose of any land or premises or any estate or interest therein
            which has not been completed.

      (B)   The owner of each of the Premises shown in schedule 7 is solely
            legally and beneficially entitled to and has good and marketable
            title to and exclusive occupation of such Premises.

      (C)   Each of the Premises is held free from any Encumbrance, lease,
            sub-lease, tenancy, licence or right of occupation, rentcharge,
            exception, reservation, right, easement, quasi-easement or privilege
            (or agreement for any of the same) in favour of a third party.

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<PAGE>

      (D)   The leases, sub-leases, tenancies, licences or agreements for any of
            the same under which the Premises are held are valid and subsisting
            against all persons, including any person in whom any superior
            estate or interest is vested.

      (E)   There are appurtenant to each of the Premises all rights and
            easements necessary for its current use and enjoyment (without
            restriction as to time or otherwise).

10.2  MATTERS AFFECTING PREMISES

      (A)   There is no covenant, restriction, burden, stipulation or outgoing
            affecting any Premises which is of an onerous or unusual nature or
            which conflicts with its current use.

      (B)   No material breach of any covenant affecting the Company's title to
            the Premises is outstanding and the rent and any other sums due
            under any lease of the Premises has been paid up to date.

      (C)   There are no disputes regarding boundaries, easements, covenants or
            other matters relating to the Premises or their use.

      (D)   No breach of any planning laws, bye-laws, building regulations and
            other legislation has been committed in relation to the Premises.

      (E)   The Company has not received any notice or order affecting the
            Premises from any authority or third party.

10.3  OUTSTANDING PREMISES LIABILITIES

      Except in relation to the Premises, the Company has no liabilities (actual
      or contingent) arising out of the conveyance, transfer, lease, sublease,
      tenancy, licence, agreement or other document relating to land or premises
      or an estate or interest in or over land or premises, including leasehold
      premises assigned or otherwise disposed of.

11.   THE COMPANY'S CONTRACTS

11.1  NO OTHER CONTRACTS

      There are not in force in relation to the Company's business, assets or
      undertaking any agreements, undertakings, understandings, arrangements or
      other engagements, whether written or oral, to which any of the Warrantors
      or any person connected with them is a party or of which it has the
      benefit or to which it is otherwise subject, the benefit of which would be
      required to be assigned to or otherwise vested in the Company to enable
      the Company to carry on its business and/or to enjoy all the rights and
      privileges attaching thereto and/or to any of its assets and undertaking
      in the same manner and scope and to the same extent and on the same basis
      as the Company has carried on business or enjoyed such rights prior to the
      date of this Deed.

11.2  THE COMPANY'S CONTRACTS

      Each of the Company's contracts is valid and binding and no notice of
      termination of any such contract has been received or served by the
      Company. So far as the Warrantors are aware there are no circumstances
      which currently or may in the future give rise to any counterparty giving
      notice to terminate any contract or failing to renew any contract with the
      Company or any of the Subsidiaries.

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<PAGE>

11.3  CONTRACTUAL ARRANGEMENTS

      The Company is not a party to or subject to any agreement, transaction,
      obligation, commitment, understanding, arrangement or liability which:

      (A)   is of six months or greater duration or is incapable of complete
            performance in accordance with its terms within six months after the
            date on which it was entered into or undertaken or is otherwise of a
            length that is greater than is customary in businesses of a similar
            nature to that of the Company; or

      (B)   is known by the Warrantors or by the Company to be likely to result
            in a loss to the Company on completion of performance; or

      (C)   cannot readily be fulfilled or performed by the Company on time and
            without undue or unusual expenditure of money or effort; or

      (D)   involves or is likely to involve obligations, restrictions,
            expenditure or receipts of an unusual, onerous or exceptional
            nature; or

      (E)   is a contract for services (other than contracts for the supply of
            electricity or other utilities or normal office services) or is in
            the nature of an agency, distribution, franchise or management
            agreement; or

      (F)   requires the Company to pay any commission, finder's fee, royalty or
            the like; or

      (G)   involves liabilities which may fluctuate in accordance with an index
            or rate of currency exchange or interest or movements in the price
            of any securities or commodities; or

      (H)   is a contract for the supply of assets to the Company on hire,
            lease, hire purchase, credit or deferred payment terms; or

      (I)   is dependent on the guarantee or covenant of or security provided by
            any other person; or

      (J)   in any way restricts the Company's freedom to carry on the whole or
            any part of its business in any part of the world in such manner as
            it thinks fit; or

      (K)   is a contract for the sale of shares or assets comprising a business
            undertaking which contains warranties or indemnities under which the
            Company still has a remaining liability or obligation; or

      (L)   can be terminated as a result of any change in the underlying
            ownership or control of the Company, or would be materially affected
            by such change; or

      (M)   is in any way otherwise than in the ordinary course of the Company's
            business.

11.4  SUBSTANTIAL OR SIGNIFICANT CONTRACTS

      No contract, agreement, transaction, obligation, commitment,
      understanding, arrangement or liability entered into by the Company and
      now outstanding or unperformed involves any of the following:

      (A)   obligations on the part of the Company which will cause or are
            likely to cause the Company to incur expenditure or an obligation to
            pay money in excess of (pound)100,000; or

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<PAGE>

      (B)   obligations on the part of the Company to purchase any specified
            minimum quantity or any specified minimum percentage of its total
            requirement for any service, bandwidth or music for download from
            any one supplier; or

      (C)   the supply by the Company of any product or services whether by way
            of lease or outright sale or otherwise to any one customer such that
            the value of such supplies exceeds or is likely to exceed 5 per
            cent. of the total turnover of the Company in the financial year
            ending on the Balance Sheet Date or in any subsequent year.

11.5  DEFAULTS

      (A)   Neither the Company nor, so far as the Warrantors are aware, any
            other party to any agreement with the Company is in default
            thereunder, and the Company is not aware of any invalidity or
            grounds for termination, avoidance, rescission or repudiation of any
            agreement to which the Company is a party which, in any such case,
            would be material in the context of the financial or trading
            position of the Company nor (so far as the Warrantors are aware) are
            there any circumstances likely to give rise to any such event.

      (B)   Full details of any customers (or any persons to whom the Company in
            the course of business has supplied goods and services in the 12
            months ending on the date of this Deed) who have defaulted (or who
            are believed by the Company to be likely to default) in any material
            respect in the payment when due of any monies to the Company are
            specified in the Disclosure Letter.

11.6  SURETIES

      No Warrantor nor any other person has given any guarantee of or security
      for, any overdraft loan, loan facility or off-balance sheet financing
      granted to the Company nor has the Company given any guarantee of or
      security for any overdraft loan, loan facility or off-balance sheet
      financing granted to any of the Warrantors or any person connected with
      any of them and there is not now outstanding in respect of the Company any
      guarantee or warranty or agreement for indemnity or for suretyship given
      by or for the accommodation of the Company or in respect of the Company's
      business.

11.7  POWERS OF ATTORNEY

      No power of attorney given by the Company (other than to the holder of an
      Encumbrance solely to facilitate its enforcement) is now in force. No
      person, as agent or otherwise, is entitled or authorised to bind or commit
      the Company to any obligation not in the ordinary course of the Company's
      business, and the Warrantors are not aware of any person purporting to do
      so.

11.8  INSIDER CONTRACTS

      Other than in respect of:

      (A)   the subscription agreement dated 28 September 2000 between, amongst
            others, the Company, Peter Gabriel and Charles Grimsdale;

      (B)   the debenture dated 24 April 2003 to secure the Company's
            obligations under various loan notes to, amongst others, Peter
            Gabriel (dated 24 April 2003) and the related inter creditor
            agreement dated 24 April 2003;

      (C)   the investment agreement dated 21 December 2001 between, amongst
            others, the Company, Charles Grimsdale, Peter Gabriel and other
            directors; and

                                       46
<PAGE>

      (D)   the investment agreement dated 29 November 2000 between, amongst
            others, the Company, Charles Grimsdale, Peter Gabriel and other
            directors and the IP Assignment Agreement between salestech.co.uk
            limited and the Company dated 15 November 2000:

            (1)   there is not outstanding, and there has not at any time during
                  the last six years been outstanding, any agreement or
                  arrangement to which the Company is a party and in which

                  (a)   any of the Warrantors;

                  (b)   any person beneficially interested in the Company's
                        share capital;

                  (c)   any Director; or

                  (d)   any person connected with any of them

                        is or has been interested, whether directly or
                        indirectly.

            (2)   the Company is not a party to, nor have its profits or
                  financial position during such period been affected by, any
                  agreement or arrangement which is not entirely of an arm's
                  length nature; and

            (3)   all costs incurred by the Company have been charged to the
                  Company and not borne by any of the Warrantors or any person
                  connected with any of them or any other person.

11.9  DEBTS

      There are no debts owing by or to the Company other than debts which have
      arisen in the ordinary course of business, nor has the Company lent any
      money which has not been repaid.

11.10 OPTIONS AND GUARANTEES

      The Company is not a party to any option or pre-emption right, and it has
      not given any guarantee, suretyship, comfort letter or any other
      obligation (whatever called) to pay, provide funds or take action in the
      event of default in the payment of any indebtedness of any other person or
      in the performance of any obligation of any other person.

11.11 TENDERS, ETC.

      No offer, tender, or the like is outstanding which is capable of being
      converted into an obligation of the Company by an acceptance or other act
      of some other person and the Company is not in negotiations with, nor has
      it put proposals forward or entered into discussions with any customer or
      supplier for the renewal of any existing business or acquisition of any
      new business.

11.12 DOCUMENTS

      All title deeds and agreements to which the Company is a party and other
      documents owned by or which ought to be in the possession or control of
      the Company are in the possession or control of the Company and are
      properly stamped and are free from any Encumbrance.

                                       47
<PAGE>

11.13 MSN CONTRACT

      The Company has signed an agreement dated 01 June 2004, with Microsoft
      Corporation in relation to the provision of the OD2 music service, the
      full terms of which are contained in the Disclosure Letter.

12.   THE COMPANY AND ITS BANKERS

12.1  BORROWINGS

      The total amount borrowed by the Company from its bankers does not exceed
      its facilities and the total amount borrowed by the Company from
      whatsoever source does not exceed any limitation on its borrowing
      contained in its articles of association, or in any debenture or loan
      stock deed or other instrument.

12.2  CONTINUANCE OF FACILITIES

      Full details of all overdrafts, loans or other financial facilities
      outstanding or available to the Company are given in the Disclosure Letter
      and true and correct copies of all documents relating thereto are annexed
      to the Disclosure Letter and neither the Warrantors nor the Company has
      done anything whereby the continuance of any such facilities in full force
      and effect might be affected or prejudiced.

12.3  OFF-BALANCE SHEET FINANCING

      The Company has not engaged in any borrowing or financing not required to
      be reflected in the Audited Accounts.

12.4  BANK ACCOUNTS

      Full particulars of all the bank and deposit accounts of the Company and
      of the credit or debit balances on such accounts as at 28 May 2004 (the
      "STATEMENT DATE") are given in the Disclosure Letter. Since the Statement
      Date there have been no payments out of any such accounts except for
      routine payments in the ordinary course of the Company's business.

13.   DIRECTORS, EMPLOYEES AND WORKERS

13.1  DIRECTORS

      The details set out in schedule 3 and schedule 4 show the full names of
      and offices held by each person who is a director of the Company or its
      Subsidiaries and no other person is a director or shadow director of the
      Company or its Subsidiaries.

13.2  WORKFORCE

      (A)   The names of all of the Employees are set out in the Disclosure
            Letter.

      (B)   There is no person who has accepted an offer of employment made by
            the Company or its Subsidiaries whose employment has yet to start
            and there are no offers of employment which have been issued and
            remain open for acceptance.

      (C)   other than the Employees, there are no workers, consultants, agency
            workers or other individuals employed or otherwise engaged (either
            personally or through a personal services company) by the Company or
            any Subsidiary.

                                       48
<PAGE>

13.3  TERMS AND CONDITIONS OF ENGAGEMENT

      (A)   The terms and conditions of engagement in respect of each Employee
            are Disclosed, together with (to the extent not detailed in such
            terms and conditions): name of employer, name, sex, date of birth,
            length of continuous service, date of commencement of engagement,
            notice period (or date of expiry of fixed term), the position held
            and job location, country of domicile, country of residence,
            governing law of contract, salary, fees or wages (stating whether
            overtime is contractual or discretionary), pay review date, holiday
            entitlement, pension entitlement, commission, profit sharing, bonus
            and incentive arrangements.

      (B)   No Employee is entitled to benefits or other payments (including
            payments on redundancy, retirement or termination of employment)
            that exceed the required level for such benefits or payments as set
            out by Law from time to time.

      (C)   No changes to the terms and conditions or benefits of any Employee
            have been proposed or agreed or are due to be considered within 12
            months after Completion.

      (D)   The Company has no legal obligation or ex gratia arrangement to pay
            pensions, gratuities, superannuation, allowances or any other
            benefit to any person who is not an Employee.

13.4  SHARE SCHEMES

      (A)   Details of any shares, share options or rights in respect of shares
            in the Company or any Subsidiary held by any person including
            details of the plan or scheme under which they are granted are set
            out in full in the Disclosure Letter.

      (B)   The Company or any Subsidiary is not obliged to grant any options or
            rights under any share ownership or share option plan.

13.5  OUTSTANDING OBLIGATIONS

      No amounts due to, or in respect of any Employee are in arrears or unpaid
      and there are no amounts other than salary in respect of the month in
      which Completion occurs and unpaid expenses incurred in the ordinary
      course) that have accrued but are not yet due to be paid.

13.6  TERMINATION OF EMPLOYMENT

      During the 12-month period prior to Completion no person has ceased to be
      employed by the Company or any Subsidiary (other than through death or
      retirement at normal retirement age), and no person has given or received
      notice terminating his employment.

13.7  ABSENT EMPLOYEES

      (A)   No Employee is absent due to:

            (1)   maternity, adoption, paternity or parental leave;

            (2)   disability;

            (3)   sickness lasting for more than two consecutive weeks;

            (4)   other leave of absence;

            (5)   secondment; or

                                       49
<PAGE>

            (6)   for any other reason.

      (B)   No person has a legal or contractual right to return to work in the
            Company or any Subsidiary.

      (C)   No Employee is currently claiming under any medical, health or
            disability benefit plan provided as a benefit of his employment.

13.8  DISPUTES OR CLAIMS

      The Company or any Subsidiary is not involved in any existing, pending or
      threatened industrial claim or dispute or a claim or dispute by or in
      respect of any Employee, former employee or employee representative
      ("EMPLOYMENT DISPUTE") and has not been involved in any Employment Dispute
      in the 12 months prior to Completion. There are no facts that might
      suggest that there may be grounds for any Employment Dispute; or that any
      of the provisions of this Deed (including the identity of the Purchaser)
      may lead to any Employment Dispute.

13.9  LOANS TO EMPLOYEES

      The Company or any Subsidiary has not made any loan or advance that is
      outstanding to any Employee or former employee.

13.10 COMPLIANCE WITH LEGISLATION

      (A)   The Company and the Subsidiaries have complied in all material
            respects with all laws and codes of practice in respect to its
            employees.

      (B)   The Company and the Subsidiaries have maintained adequate records
            regarding the service of each Employee, and will deliver these
            records to the Purchaser or to such person as the Purchaser may
            direct, at Completion.

      (C)   There are no Employees who are persons not granted leave to enter or
            remain in the United Kingdom, or who are not entitled to work in the
            United Kingdom in terms of the Asylum and Immigration Act 1996.

13.11 TRANSFER OF UNDERTAKINGS

      (A)   During the 12 month period prior to Completion, the Company and the
            Subsidiaries have not been party to any relevant transfer as defined
            in the Transfer of Undertakings (Protection of Employment)
            Regulations 1981 (a "RELEVANT TRANSFER").

      (B)   No Employee (or former employee) has transferred to the Company or
            any Subsidiary under a Relevant Transfer who at any time prior to
            the Relevant Transfer:

            (1)   was a member of an occupational pension scheme; or

            (2)   was a member of a scheme providing an interest in or option
                  over shares where that scheme has not been materially
                  replicated by the Company or any Subsidiaries.

13.12 EMPLOYEES REPRESENTATIVES AND COLLECTIVE AGREEMENTS

      (A)   The Company and any Subsidiaries have not recognised (or done any
            act which might be construed as recognition of) any trade union,
            whether voluntarily or in terms of the statutory procedure set out
            in the Trade Union and Labour Relations (Consolidation) Act 1992,
            nor

                                       50
<PAGE>

            entered into any kind of collective agreement, understanding or
            arrangement with a trade union in relation to any of the Employees.

      (B)   The Company or any Subsidiary has no agreement or arrangement with
            and has not at any time provided information to or consulted with, a
            works council, staff association or any other employee
            representative in relation to any of the Employees.

      (C)   The Company and the Subsidiaries have complied with all collective,
            workforce and other agreements and obligations affecting its
            relations with, or the conditions of service of the Employees.

      (D)   The Company and the Subsidiaries have at all times complied with its
            obligations to inform and/or consult with employee representatives
            of the Employees.

13.13 PENSION

      (A)   Neither the Company nor any Subsidiary has at any time been:

            (1)   a party to or had any obligation to any scheme or arrangement
                  for the provision of any pension, retirement (including on
                  early retirement) or death benefits (including in the form of
                  a lump sum) (together referred to as "PENSION BENEFITS") to or
                  for the benefit of any of the Employees, Former Employee or
                  present or former officers of the Company or any of their
                  families or dependants (such scheme or arrangement being a
                  "RELEVANT SCHEME"); or

            (2)   obliged to provide Pension Benefits to any Employee or Former
                  Employee.

      (B)   Neither the Company nor any Subsidiary provides, participates in or
            contributes to or has any obligation to provide, participate in or
            contribute to, nor has it or they ever provided, participated in or
            contributed to, any gratuity or allowance under a Relevant Scheme.

      (C)   No Employee or Former Employee is entitled to any Pension Benefits
            that become payable before their normal retirement age as stated in
            their contract of employment or the benefit scheme itself.

      (D)   The Company and each Subsidiary complies and has at all times
            complied in all material respects with any duty to facilitate access
            to a stakeholder pension arrangement under Section 3 of the Welfare
            Reform and Pensions Act 1999.

      (E)   No proposal or announcement has been made to any Employee or
            Director about the introduction, continuance, increase or
            improvement of any pension, lump sum, death, ill-heath, disability
            or accident benefit.

      (F)   The Disclosure Letter contains the rate of contributions which the
            Company and any Subsidiary currently pays to a pension scheme in
            respect of each Employee and former employee.

      (G)   All employer's and employees' contributions or other payment which
            have fallen due for payment to, or in respect of, the Employees or
            any former employees by the Company and/or any Subsidiary prior to
            Completion have been paid.

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<PAGE>

14.   INVESTMENT REPRESENTATIONS

14.1  STATUS

      Each shareholder or person entitled to acquire shares or securities in the
      Company is either:

      (A)   an Accredited Investor; or

      (B)   not a U.S. Person and is not acquiring any part of the Consideration
            for the account of or on behalf of such a U.S. Person.

14.2  HOLDING FOR OWN ACCOUNT

      Each Obligor confirms that such Obligor is acquiring the Consideration for
      such Obligor's own account, for investment purposes only, and not with a
      view toward the resale or distribution thereof, except pursuant to
      effective registrations or qualifications relating thereto under the
      Securities Act and applicable U.S. state securities or "blue sky" laws or
      pursuant to an exemption therefrom.

14.3  OBLIGOR'S BUSINESS EXPERIENCE

      Each Obligor has such knowledge and experience in financial and business
      matters so that such Obligor is capable of evaluating the relative merits
      and risks of an investment in the Purchaser. Each Obligor has adequate
      means of providing for its, his or her current economic needs and possible
      personal contingencies, has no need for liquidity in its, his or her
      investment in the Purchaser and is able financially to bear the risks of
      such investment.

14.4  OFFSHORE TRANSACTION

      (A)   Each Obligor agrees that it will not offer or sell or otherwise
            transfer or assign any part of the Consideration or the right to
            receive any part of the Consideration (i) in the United States or
            to, or (ii) for the benefit or account of, a U.S. Person, until one
            year after Completion, other than pursuant to registration under the
            Securities Act, Regulation S promulgated under the Securities Act or
            another available exemption from the registration requirements of
            the Securities Act. Each Obligor also agrees that, from the date of
            this Deed to the date one year following Completion, it will require
            any purchaser of any part of the Consideration to certify to such
            Obligor either that:

            (1)   it is not a U.S. Person and its is not acquiring any part of
                  the Consideration for the account or benefit of a U.S. Person;
                  or

            (2)   it is a U.S. Person acquiring such part of the Consideration
                  in a transaction not requiring registration under the
                  Securities Act.

      (B)   Each Obligor agrees that it will not engage in hedging transactions
            with regard to the Consideration unless in compliance with the
            Securities Act.

14.5  UNREGISTERED SECURITIES; REGISTRATION RIGHTS

      Each Obligor understands that:

      (A)   the Consideration will not have been registered under the Securities
            Act or the securities laws of any state or other jurisdiction in
            reliance upon exemptions from such registration requirements for
            non-public offerings;

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<PAGE>

      (B)   the Consideration may not be sold, pledged or otherwise transferred
            except pursuant to effective registration statements under the
            Securities Act and qualification under applicable state securities
            or blue sky laws or pursuant to an exemption therefrom; and

      (C)   the Purchaser is not under any obligation to register the
            Consideration under the Securities Act or any state securities laws,
            or to take any action to make any exemption from any such
            registration provisions available (except to the extent provided in
            the terms of the Offer).

14.6  LEGENDS

      Each Obligor understands that the Consideration, and any securities issued
      in respect of or in exchange for the Consideration, will bear the
      following legend (or a legend with similar effect) and that all transfers
      of any such securities must satisfy the provisions of such legend:

            THE SECURITIES EVIDENCED BY THIS CERTIFICATE HAVE NOT BEEN
            REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "ACT"),
            OR UNDER THE SECURITIES OR BLUE SKY LAWS OF ANY STATE AND MAY NOT BE
            OFFERED, SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF EXCEPT PURSUANT
            TO AN EFFECTIVE REGISTRATION STATEMENT UNDER THE ACT, REGULATION S
            PROMULGATED UNDER THE ACT OR ANOTHER AVAILABLE EXEMPTION FROM THE
            REGISTRATION REQUIREMENTS OF THE ACT AND ANY APPLICABLE STATE
            SECURITIES OR BLUE SKY LAWS AND, IN THE CASE OF A TRANSACTION NOT
            SUBJECT TO SUCH REGISTRATION REQUIREMENTS, UNLESS THE COMPANY HAS
            RECEIVED AN OPINION OF COUNSEL REASONABLY SATISFACTORY TO IT THAT
            SUCH TRANSACTION DOES NOT REQUIRE REGISTRATION UNDER THE ACT.
            HEDGING TRANSACTIONS INVOLVING THE SHARES REPRESENTED BY THIS
            CERTIFICATE MAY NOT BE CONDUCTED UNLESS IN COMPLIANCE WITH THE ACT.

            THE SECURITIES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
            TRANSFER RESTRICTIONS (INCLUDING SALES VOLUME LIMITATIONS) SET FORTH
            IN THAT CERTAIN DEED POLL OF WARRANTY AND INDEMNITY DATED AS OF 22
            JUNE, 2004, A COPY OF WHICH IS AVAILABLE FROM THE COMPANY UPON
            REQUEST.

14.7  STOP TRANSFER INSTRUCTIONS

      Each Obligor agrees that, in order to ensure compliance with the transfer
      restrictions described in this paragraph 14, the Purchaser shall issue
      `stop transfer' instructions to its stock transfer agent.

14.8  NO REQUIREMENT TO TRANSFER

      The Purchaser shall not be required:

      (A)   to transfer or have transferred on its books any part of the
            Consideration that has been sold or otherwise transferred in
            violation of any of the provisions of this Deed or the Offer; or

      (B)   to treat as owner of such Consideration or to accord the right to
            vote or pay dividends to any purchaser or other transferee to whom
            such Consideration shall have been so transferred in violation of
            any provision of this Deed or the Offer.

                                       53
<PAGE>

14.9  NO PUBLIC SOLICITATION

      Each Obligor represents that at no time was such Obligor presented with or
      solicited by any general mailing, leaflet, public promotional meeting,
      newspaper or magazine article, radio or television advertisement, or any
      other form of general advertising or general solicitation in connection
      with the transactions contemplated by this Deed or the Offer.

14.10 PRINCIPAL RESIDENCE OR PRINCIPAL PLACE OF BUSINESS

      The address shown after each shareholder or person entitled to acquire
      shares in schedule 1 and schedule 2 is such person's principal residence
      if such person is an individual or such person's principal place of
      business if it is an entity.

14.11 CONSULTATION WITH COUNSEL

      Each Obligor has carefully read this Deed and, to the extent such Obligor
      believes necessary, has discussed with such Obligor's legal advisors the
      representations, warranties and agreements that such Obligor makes herein
      and the applicable limitations upon such Obligor's resale of the
      Consideration.

15.   LIABILITIES OF THE COMPANY

      The Company has incurred no liability for any costs or professional fees
      in connection with the making of the Offer and has not taken any action in
      breach of section 151 of the Companies Act 1985 in connection with the
      making of or completion of the Offer.

                                       54
<PAGE>

                                SCHEDULE 6 : TAX

1.    INTERPRETATION

      In this schedule and in schedule 11, where the context admits:

      "TAX" means all forms of taxation, duties, levies, and imposts whether of
      the United Kingdom or any other jurisdiction including (without
      limitation) corporation tax, including instalment payments in respect of
      corporation tax, advance corporation tax, the charge under s.419 Taxes Act
      1988, the charge under s.747 Taxes Act 1988, income tax, capital gains
      tax, the charge under s.601(2) Taxes Act 1988, value added tax, the charge
      to tax under Schedule 9A Value Added Tax Act 1994, duties of excise,
      customs and other import duties, inheritance tax, stamp duty, stamp duty
      reserve tax, stamp duty land tax, capital duties, national insurance
      contributions, landfill tax, insurance premium tax, climate change levy,
      aggregates levy, local authority council taxes, petroleum revenue tax,
      amounts payable in consideration for the surrender of group relief or
      advance corporation tax or refunds pursuant to s.102 Finance Act 1989, and
      any payment whatsoever which the Company may be or become bound to make to
      any person as a result of the operation of any enactment relating to any
      such taxes or duties and all penalties, fines, charges and interest
      relating to any of the foregoing or resulting from a failure to comply
      with the provisions of any enactment relating to taxation;

      "TAXES ACT 1988" means Income and Corporation Taxes Act 1988;

      "TCGA 1992" means the Taxation of Chargeable Gains Act 1992;

      "VALUE ADDED TAX" and "VAT" mean value added tax as provided for in the
      Value Added Tax Act 1994 and legislation supplemental thereto or
      replacing, modifying or consolidating it;

      references to income or profits or gains earned, accrued or received shall
      include income or profits or gains treated as earned, accrued or received
      for the purposes of any legislation; and

      references to the "COMPANY" include each of the Subsidiaries.

2.    GENERAL TAXATION MATTERS

2.1   RESIDENCE

      The Company is and always has been resident for Tax purposes only in the
      jurisdiction in which it is incorporated.

2.2   TAX PROVISIONS

      Full provision or reserve has been made in the Audited Accounts for all
      Tax liable to be assessed on the Company or for which it is accountable in
      respect of income, profits or gains earned, accrued or received on or
      before the Balance Sheet Date and any event on or before the Balance Sheet
      Date including distributions made down to such date or provided for in the
      Audited Accounts and full provision has been made in the Audited Accounts
      for deferred Tax calculated in accordance with generally accepted
      accounting practice.

2.3   RETURNS

      The Company has properly and punctually made all returns and provided all
      information required for Tax purposes, all such returns and information
      remain correct and complete and none of such returns is disputed by the
      Inland Revenue or any other Taxation authority concerned (in the United
      Kingdom

                                       55
<PAGE>

      or elsewhere) and the Warrantors are not aware that any dispute is likely,
      or that any event, act or omission has occurred which would or might give
      rise to any penalty or interest. The Disclosure Letter contains details of
      any amendments made to any such return either by the Company or the Inland
      Revenue or other authority concerned and any such amendment made by the
      Company was properly and punctually made and is not disputed by the Inland
      Revenue or the Taxation authority concerned (as the case may be).

2.4   RECORDS

      The Company has kept and preserved all such records and information as may
      be needed to enable it to deliver correct and complete returns for its
      accounting periods.

2.5   PAYMENT OF TAX

      The Company has duly and punctually paid all Tax which it has become
      liable to pay. The Company is under no liability to pay any penalty, fine
      or interest in connection with any claim for Tax and the Warrantors are
      not aware of any circumstances existing which may give rise to any such
      penalty, fine or interest.

2.6   CORPORATION TAX INSTALMENT PAYMENTS

      The Company is not and has never been a large company for the purposes of
      the Corporation Tax (Instalment Payments) Regulations 1998.

2.7   AUDITS

      The Company has in the last seven years neither received any visit or
      inspection from any Tax authority nor any notice of enquiry into any
      return made by the Company.

2.8   TRANSFERRED TAX REFUNDS

      The Disclosure Letter contains particulars of all arrangements and
      agreements relating to the transfer of tax refunds to which the Company is
      or has been a party; and

      (A)   all claims by the Company for the transfer of tax refunds were when
            made and are now valid and have been or will be allowed by way of
            discharging the liability of the recipient company to pay any
            corporation tax;

      (B)   the Company has received all payments due to it under any such
            arrangement or agreement or transfer of tax refunds made by it and
            no such payment is likely to be repaid; and

      (C)   save in respect of this Deed, there have not been in existence in
            relation to the Company any such arrangements as are referred to in
            s.410 Taxes Act 1988.

2.9   SPECIAL ARRANGEMENTS AND CONCESSIONS

      (A)   Full details of any special arrangements (including, without
            limitation, any arrangements relating to the taxation of foreign
            exchange gains and losses and/or derivative contracts and/or loan
            relationships) which have been made with any Tax authority or relied
            upon by the Company, in either case within the last seven years, are
            set out in the Disclosure Letter.

      (B)   Full details of any arrangements relating to the discharge of any
            liability for corporation tax of the Company by any other company or
            the discharge of any liability for corporation tax of any other
            company by the Company are set out in the Disclosure Letter.

                                       56
<PAGE>

      (C)   The Company has not taken any action which has had, or is likely to
            have, the result of prejudicing or disturbing any such arrangement.

3.    DISTRIBUTIONS AND PAYMENTS

3.1   DISTRIBUTIONS

      (A)   No distribution within the meaning of ss.209, 210 and 212 Taxes Act
            1988 has been made by the Company except dividends shown in its
            audited accounts nor is the Company bound to make any such
            distribution.

      (B)   No securities (within the meaning of s.254(1) Taxes Act 1988) issued
            by the Company and remaining in issue at the date hereof were issued
            in such circumstances that the interest payable thereon falls to be
            treated as a distribution under ss.209(2)(d), 209(2)(da) or
            209(2)(e) Taxes Act 1988.

      (C)   The Company has not made or received any distribution which is an
            exempt distribution within s.213 Taxes Act 1988.

      (D)   The Company has not received any capital distribution to which the
            provisions of s189 TCGA 1992 could apply.

      (E)   The Company has not issued any share capital, nor granted options or
            rights to any person which entitles that person to require the issue
            of any share capital to which the provision of s.249 Taxes Act 1988
            could apply.

3.2   PAYMENTS UNDER DEDUCTION

      (A)   All payments by the Company to any person which ought to have been
            made under deduction of Tax have been so made and the Company has
            (if required by law to do so) provided certificates of deduction to
            such person and accounted to the Inland Revenue for the Tax so
            deducted.

      (B)   The Disclosure Letter contains details of any payments made by the
            Company in relation to which no tax, or tax at a reduced rate, has
            been deducted in reliance on the provisions of s.349A or s.349E
            Taxes Act 1988.

3.3   PAYMENTS AND DISALLOWANCES

      No rents, interest, annual payments or other sums of an income nature
      which the Company is under an obligation to pay in the future are wholly
      or partially disallowable as deductions or charges in computing profits
      for the purposes of corporation tax by reason of the provisions of ss.74,
      125, 338, 338B, 577, 577A, 779 to 784, and 787 Taxes Act 1988 or
      otherwise.

4.    GROUP RELIEF

      The Disclosure Letter contains particulars of all arrangements and
      agreements relating to group relief under section 402 ICTA to which the
      Company is or has been a party and:

      (A)   all claims by the Company for group relief were when made and are
            now valid and have been or will be allowed by way of relief from
            corporation tax;

      (B)   the Company has not made nor is liable to make any payment under any
            such arrangement or agreement save in consideration for the
            surrender of group relief allowable to the Company

                                       57
<PAGE>

            by way of relief from corporation tax and equivalent to the Tax for
            which the Company would have been liable had it not been for the
            surrender;

      (C)   the Company has received all payments due to it under any such
            arrangement or agreement for surrender of group relief made by it
            and no such payment is liable to be repaid;

      (D)   the Company is not a dual resident investing company within the
            meaning of s.404 Taxes Act 1988; and

      (E)   save in respect of this Deed, there have not been in existence in
            relation to the Company any such arrangements as are referred to in
            s.410 Taxes Act 1988.

5.    CLOSE COMPANIES

      (A)   No distribution within s. 418 Taxes Act 1988 has been made by the
            Company.

      (B)   The Company has not made (and will not be deemed to have made) any
            loan or advance to a participator or an associate of a participator
            so as to become liable to make any payment under s.419 Taxes Act
            1988.

6.    ANTI-AVOIDANCE

6.1   S.765 TAXES ACT 1988

      The Company has not without the prior consent of the Treasury been a party
      to any transaction for which consent under s.765 Taxes Act 1988 was
      required. Where such consent would have been required but for the
      provisions of s.765A(1) Taxes Act 1988, the Company has complied in full
      with the requirements of The Movements of Capital (Required Information)
      Regulations 1990 and a copy of the notification required pursuant thereto
      is annexed to the Disclosure Letter.

6.2   CONTROLLED FOREIGN COMPANIES

      (A)   The company does not have and has not at any time had any interest
            in any Controlled Foreign Company:

      (B)   For the purposes of paragraph 7.3(A), "Controlled Foreign Company"
            means any company (a "FOREIGN COMPANY") in respect of which both:

            (1)   that foreign company is a controlled foreign company within
                  the meaning of s.747(2) Taxes Act 1988; and

            (2)   in the event that an apportionment of the chargeable profits
                  of that foreign company pursuant to s.752 Taxes Act 1988 falls
                  to be made under s.747(3) Taxes Act 1988, the total proportion
                  of the foreign company's chargeable profits that would be
                  apportioned to the Company and to persons who are connected to
                  or associated with the Company, would be at least;

                  (a)   25 per cent in respect of one or more accounting periods
                        ending on or after 01 July 1999; or

                  (b)   10 per cent in respect of one or more accounting periods
                        ending before 01 July 1999.

                                       58
<PAGE>

6.3   ANTI-AVOIDANCE

      (A)   The Company has not at any time entered into or been a party to a
            transaction or series of transactions either

            (1)   containing steps inserted without any commercial or business
                  purpose or

            (2)   being transactions to which any of the following provisions
                  apply:

                  ss. 703, 730, 737A-C, 739, 774, 776, 779, 780, 781 or 786
                  Taxes Act 1988, s.168A Finance Act 1994, schedule 9 paragraph
                  13 Finance Act 1996, paragraph 21 schedule 20 Finance Act
                  2000, paragraph 16 schedule 12 Finance Act 2002, schedule 29
                  paragraph 111 Finance Act 2002, schedule 26 paragraph 23
                  Finance Act 2002 or paragraph 5 schedule 7 AC TCGA 1992

            without, in the appropriate cases, having received clearance in
            respect thereof from the Inland Revenue.

      (B)   The Company has never been requested to furnish information pursuant
            to notices served under ss. 745 or 778 Taxes Act 1988.

      (C)   In respect of every transaction or series of transactions under
            which the Company is an affected person within the meaning of
            Schedule 28AA Taxes Act 1988:

            (1)   provision between the Company and other affected persons is
                  not susceptible to adjustment by the Inland Revenue; and

            (2)   the Company has prepared and retained all such documentation
                  as is necessary to identify the terms of the transactions and
                  the methodology used in arriving at arm's length terms for
                  such transactions.

6.4   RENT FACTORING ETC

      The Company has not entered into a finance agreement as defined in s.43A
      Taxes Act 1988 such as will result in any finance amount (as defined in
      s.43B Taxes Act 1988) or lease premium (as referred to in s.43D Taxes Act
      1988) being treated as taxable income of the Company.

7.    CAPITAL ASSETS

7.1   BASE VALUES

      (A)   The Disclosure Letter contains full particulars of:

            (1)   the extent to which the book value of an asset or a particular
                  class of assets as shown in the Audited Accounts is in excess
                  of either:-

                  (a)   the amount falling to be deducted under s.38 TCGA 1992
                        from the consideration receivable on a disposal of that
                        asset, or

                  (b)   the balance of the qualifying expenditure attributable
                        to that asset or pool of assets, as the case may be,
                        brought forward into the accounting period in which
                        Completion will occur and save to the extent disclosed,
                        no such excess exists; and

                                       59
<PAGE>

            (2)   the extent to which provision for Tax in respect of such
                  excess has been made in the Audited Accounts.

7.2   ROLL-OVER/HOLD OVER RELIEF

      The Disclosure Letter contains full particulars of all claims made by the
      Company under ss.152 to 156, s.158, s.165, s179B, ss.242 to 245, s.247 or
      s.248 TCGA 1992 and no such claim has been made by any other person (in
      particular pursuant to s.165 or s.175 TCGA 1992) which affects or could
      affect the amount or value of the consideration for the acquisition of any
      asset by the Company taken into account in calculating liability to
      corporation tax on chargeable gains on a subsequent disposal.

7.3   VALUE SHIFTING

      The Company does not hold, and has never held, any shares upon the
      disposal of which ss.31, 31A or 32 TCGA 1992 could apply.

7.4   CONNECTED PARTY AND INTRA-GROUP TRANSACTIONS

      (A)   The Company has not disposed of or acquired any asset to or from any
            person connected with it within s.839 Taxes Act 1988 or in
            circumstances such that the provision of s.17 TCGA 1992 could apply
            to such disposal or acquisition.

      (B)   The Company has not acquired any asset (past or present) from any
            other company then belonging to the same group of companies as the
            Company within the meaning of s.170(2) to (14) TCGA 1992.

      (C)   The Company has not made, and is not entitled to make, a claim
            pursuant to s.172 TCGA 1992 in relation to disposals made before 01
            April 2000.

      (D)   The Company has not made any joint election under s.171A TCGA 1992.

      (E)   The Company has not made any joint election under s.179A TCGA 1992.

      (F)   The Company has not made any claim under s.140 TCGA 1992
            (Postponement of charge on transfer of assets to non-resident
            company).

7.5   GROUP RECONSTRUCTIONS

      The Company has not been party to any scheme of reconstruction or
      reorganisation to which the provisions of s.139 TCGA 1992, s.703 Taxes Act
      1988 or to which s.343 Taxes Act 1988 could apply.

7.6   CHARGEABLE DEBTS

      The Company is not owed a debt, other than a debt on a security, on the
      disposal or satisfaction of which a liability to corporation tax on
      chargeable gains will arise by reason of s.257 TCGA 1992.

7.7   RELIEF FOR LOSSES TO TRADERS AND QUALIFYING CORPORATE BONDS

      No claim for relief has been allowed to the Company pursuant to ss.253 and
      254 TCGA 1992 in respect of any loan and no chargeable gain has or is
      likely to arise pursuant to ss.253(5), (6), (7), or (8) or s.254(9) or
      (10) of the TCGA 1992.

                                       60
<PAGE>

7.8   CHARGEABLE POLICIES

      The Company has not acquired benefits under any policy of assurance
      otherwise than as original beneficial owner.

7.9   GAINS ACCRUING TO NON-RESIDENT COMPANIES OR TRUSTS

      There has not accrued any gain in respect of which the Company may be
      liable to corporation tax on chargeable gains by virtue of the provisions
      of s.13 or s.87 TCGA 1992.

7.10  COMPANY MIGRATION

      There are no circumstances pursuant to which the Company may become liable
      to tax pursuant to s.185 (Deemed disposal of assets on company ceasing to
      be resident in U.K.), s.187 (Postponement of charge on deemed disposal)
      TCGA 1992 or s.132 (Liability of other persons for unpaid tax) Finance Act
      1988 or s.191 TCGA 1992 (Non-payment of tax by non-resident companies).

7.11  RECOVERY OF UNPAID TAX

      There are no circumstances in existence which could lead to a notice
      requiring payment of unpaid tax being served on the Company pursuant to
      s.190(3) Taxation of Chargeable Gains Act 1992 (Tax recoverable from
      another group company or controlling director) or schedule 28 paragraph 3
      Finance Act 2000 (Recovery of tax payable by non-resident company).

8.    INTANGIBLE ASSETS

8.1   GENERAL

      (A)   The Disclosure Letter contains full particulars of all assets of the
            Company to which the provisions of Schedule 29 Finance Act 2002
            apply ("INTANGIBLE ASSETS").

      (B)   No election has been made by the Company under paragraph 10 Schedule
            29 Finance Act 2002 in respect of any Intangible Assets of the
            Company.

      (C)   The Disclosure Letter contains full particulars of the extent to
            which the book value of any Intangible Assets as shown in the
            Audited Accounts exceeds their tax written down value.

8.2   CLAIMS

      The Disclosure Letter contains full particulars of:

      (A)   all claims made by the Company under Part 7 Schedule 29 Finance Act
            2002 and no such claim has been made by any other person (in
            particular by virtue of Part 9) which affects or could affect the
            cost for tax purposes of any asset acquired by the Company; and

      (B)   any declaration of provisional entitlement to relief made under
            paragraph 43 Schedule 29 Finance Act 2002.

8.3   CONNECTED PARTIES AND INTRA-GROUP TRANSACTIONS

      (A)   The Disclosure Letter contains full particulars of any Intangible
            Asset acquired from any other company then belonging in the same
            group of companies as the Company within the meaning of Part 8
            Schedule 29 Finance Act 2002.

      (B)   The Company has not made any election under paragraph 66 Schedule 29
            Finance Act 2002.

                                       61
<PAGE>

8.4   RECONSTRUCTIONS

      The Disclosure Letter contains full particulars of:

      (A)   any scheme of reconstruction to which the Company has been a party
            and to which provisions of Part 11 Schedule 29 Finance Act 2002
            apply;

      (B)   any claim or election made by the Company pursuant to paragraph 86
            (Postponement of charge on transfer of assets to non-resident
            company) or paragraph 109 (Asset ceasing to be intangible asset:
            postponement of gain in certain cases) Schedule 29 Finance Act 2002;
            and

      (C)   any applications for clearance made by the Company under paragraphs
            84(6), 85(5), 86(9) or 87(8) Schedule 29 Finance Act 2002.

9.    CLAIMS, ELECTIONS AND CLEARANCES

      9.1   CLAIMS AND ELECTIONS

      All claims for any relief, allowance or repayment and all elections made
      for tax purposes by the Company in the previous seven years have been duly
      and promptly made and remain valid.

9.2   CLAIMS BY THE COMPANY

      The Company has made no claim under any of the following:

      (A)   s.279 TCGA 1992 (assets situated outside the United Kingdom);

      (B)   s.24(2) TCGA 1992 (assets of negligible value);

      (C)   s.280 TCGA 1992 (tax on chargeable gains payable by instalments);

      (D)   ss.242 and 243 Taxes Act 1988 (surplus franked investment income);

      (E)   s.584 Taxes Act 1988 (unremittable income arising outside the United
            Kingdom); or

      (F)   schedule 15 and/or 16 of the Finance Act 2000 (corporate venturing
            scheme).

9.3   ELECTIONS

      The Disclosure Letter contains full particulars of all elections made by
      the Company under the following provisions:

      (A)   ss.524, 527 and 534 Taxes Act 1988 (lump sum receipts for patents
            and copyright);

      (B)   s.83 Capital Allowances Act 2001 (short life assets) ; and

      (C)   s.290 Capital Allowances Act 2001 (leasehold interests).

9.4   TAX RELIEF FOR EXPENDITURE OF RESEARCH AND DEVELOPMENT

      The Disclosure Letter contains full details of all claims made by the
      Company under schedule 20 Finance Act 2000 or schedule 12 Finance Act
      2002.

                                       62
<PAGE>

10.   DOUBLE TAX RELIEF

10.1  CLAIMS

      All claims in respect of double tax relief made by the Company within the
      last seven years have been duly and promptly made and remain valid.

11.   MISCELLANEOUS

11.1  LEASEHOLDS

      The Company is not liable to Tax under the provisions of ss.34, 35 and 36
      Taxes Act 1988 nor does it own any leasehold interest to which the said
      s.35 applies.

11.2  FOREIGN EXCHANGE GAINS AND LOSSES

      The Disclosure Letter contains full details of all claims to defer
      unrealised exchange gains made by the Company pursuant to s.139 Finance
      Act 1993.

11.3  DERIVATIVE CONTRACTS

      The Disclosure Letter contains full details of all qualifying contracts
      with non resident persons for the purposes of s.168 Finance Act 1994 or
      paragraph 31 Schedule 26 Finance Act 2002.

11.4  FINANCE LEASES

      The Company is not a party to any finance lease to which Schedule 12
      Finance Act 1997 would apply.

11.5  LOAN RELATIONSHIPS

      (A)   The Company applies an authorised accruals method of accounting (as
            that term is defined in s.85 Finance Act 1996) in respect of all
            loan relationships (as that term is defined in s.81 Finance Act
            1996) to which it is a party.

      (B)   The Disclosure Letter contains full particulars of any loan
            relationship to which the Company is a party, whether as debtor or
            creditor, where any other party to that loan relationship is
            connected with the Company for the purposes of Chapter II of Part IV
            Finance Act 1996 or where the Company or the other party to the loan
            relationship has a major interest in the other as "major interest"
            is defined in paragraph 20 Schedule 9 Finance Act 1996.

      (C)   The Disclosure Letter contains full particulars of any loan
            relationship to which the Company is a party and to which s.92 or
            s.93 Finance Act 1996 applies.

      (D)   The Disclosure Letter contains full particulars of any debtor
            relationship (as that term is defined in s.103 Finance Act 1996) of
            the Company which relates to a relevant discounted security (as that
            term is defined in paragraph 3 of schedule 13 Finance Act 1996) to
            which paragraph 17 or paragraph 18 of schedule 9 Finance Act 1996
            applies.

      (E)   The Company has not entered into any transaction to which paragraph
            11(1) of schedule 9 Finance Act 1996 applies.

      (F)   The Company is not entitled to be, released from any liability which
            arises under a debtor relationship of that Company.

                                       63
<PAGE>

11.6  REVERSE PREMIUMS

      (A)   The Company has not since the Balance Sheet Date received or become
            entitled to receive a reverse premium (within the meaning of
            Schedule 6 paragraph 1 Finance Act 1999 or otherwise being any
            payment received as an inducement to acquire an interest in land) in
            respect of any premises.

      (B)   The Company is not, and has not since the Balance Sheet Date been,
            under an obligation to pay a premium to a third party as an
            inducement to that third party to agree to acquire an interest in
            land.

11.7  COMMUNITY INVESTMENT TAX RELIEF

      The Disclosure Letter contains details of any investment made by the
      Company in a community development finance institution for the purposes of
      Schedule 16 Finance Act 2002, which was made within the previous five
      years.

12.   TAXATION OF EMPLOYEES AND AGENTS

12.1  P.A.Y.E.

      The Company has properly operated the Pay As You Earn system, making such
      deductions and payments of tax as required by law from all payments to or
      treated as made to employees, ex-employees, officers and ex-officers of
      the Company and punctually accounted to the Inland Revenue for all such
      tax and all returns required pursuant to s.203 Taxes Act 1988 and
      regulations made thereunder have been punctually made and are accurate and
      complete in all respects.

12.2  DISPENSATIONS

      The Disclosure Letter contains details of all PAYE settlement agreements
      entered into and all dispensations obtained by the Company.

12.3  BENEFITS FOR EMPLOYEES

      (A)   The Company has not made any payment to or provided any benefit for
            any officer or employee or ex-officer or ex-employee of the Company
            which is not allowable as a deduction in calculating the profits of
            the Company for taxation purposes.

      (B)   The Company has not issued or agreed to issue any shares or
            securities or interests in shares or securities to any person where
            the shares are acquired by reason of that person's past, present or
            future office or employment or any other benefit in respect of which
            the Company will or would, if the prescribed circumstances arise, be
            required on or after the Offer Date to operate PAYE or pay or
            account for any national insurance contributions.

12.4  SUB-CONTRACTORS

      The Company is not and never has been either a contractor or a
      sub-contractor for the purposes of Chapter IV Part XIII Taxes Act 1988.

12.5  NATIONAL INSURANCE

      The Company has paid all national insurance contributions for which it is
      liable and has kept proper books and records relating to the same.

                                       64
<PAGE>

13.   STAMP DUTIES

13.1  STAMP DUTY

      The Company has duly paid all stamp duty on documents and transactions to
      which it is a party and which are liable to stamp duty.

13.2  STAMP DUTY RESERVE TAX AND STAMP DUTY LAND TAX

      The Company has made all returns and paid all stamp duty reserve tax and
      stamp duty land tax in respect of any transaction in securities and/or
      land in respect of which it is liable to account for stamp duty reserve
      tax or stamp duty land tax.

13.3  UNDERTAKINGS AND PAYMENTS ON ACCOUNT

      The Disclosure Letter contains details of any undertakings given by or on
      behalf of the Company in respect of stamp duty or stamp duty reserve tax
      and full details of any payment made on account of or lodged with the
      Inland Revenue or other Tax authorities in respect of stamp duty.

13.4  WITHDRAWAL OF RELIEFS

      The Disclosure Letter contains details of any document or transaction to
      which the Company is a party which was executed within the previous three
      years and which has been relieved from stamp duty in whole or in part
      pursuant to the provisions of s.42 Finance Act 1930, s.151 Finance Act
      1995 or s.76 Finance Act 1986.

13.5  CONTRACTS FOR THE SALE OF AN ESTATE OR INTEREST IN LAND

      The Company has not entered into any contract or agreement for the sale of
      an estate or interest in land in the United Kingdom which is or may be
      chargeable with stamp duty pursuant to s.115 Finance Act 2002.

14.   VALUE ADDED TAX

14.1  COMPLIANCE

      The Company has complied with all statutory provisions and regulations
      relating to value added tax and has duly paid or provided for all amounts
      of value added tax for which the Company is liable.

14.2  TAXABLE SUPPLIES

      All supplies made by the Company are taxable supplies and the Company is
      not and will not be denied credit for any input tax by reason of the
      operation of s.26 Value Added Tax Act 1994 and regulations made
      thereunder.

14.3  VAT GROUPS

      The Company is not and has not been, for VAT purposes a member of a group
      of companies for VAT purposes full details of which are contained in the
      Disclosure Letter.

14.4  SECTION 8 SUPPLIES

      No supplies of a material amount have been made to the Company to which
      the provisions of s.8 Value Added Tax Act 1994 might apply.

                                       65
<PAGE>

14.5  OFFENCES

      The Company has not committed any offence contrary to s.60 or s.72 Value
      Added Tax Act 1994, nor has it received any penalty liability notice
      pursuant to s.64(3), surcharge liability notice pursuant to s.59, or
      written warning issued pursuant to s.76(2) of that Act.

14.6  SECURITY

      The Company has not been required to give security under paragraph 4
      schedule 11 Value Added Tax Act 1994.

14.7  ELECTIONS

      The Disclosure Letter contains details and copies of all elections,
      together with the relevant notification, made by the Company pursuant to
      paragraph 2 schedule 10 Value Added Tax Act 1994.

14.8  DEVELOPERS

      The Company is not and has not been in relation to any land, building or
      civil engineering work a developer within the meaning of paragraph 5(5)
      schedule 10 Value Added Tax Act 1994.

14.9  INTEREST

      The Company has not paid and is not liable to pay any interest pursuant to
      s.74 Value Added Tax Act 1994.

14.10 CAPITAL GOODS SCHEME

      The Disclosure Letter contains details of any assets of the Company to
      which the provisions of Part XV Value Added Tax Regulations 1995 (the
      Capital Goods Scheme) apply and in particular:

      (A)   the identity (including in the case of leasehold property, the term
            of years), date of acquisition and cost of the asset; and

      (B)   the proportion of input tax for which credit has been claimed
            (either provisionally or finally in a tax year and stating which).

15.   INHERITANCE TAX AND GIFTS

15.1  POWERS OF SALE FOR INHERITANCE TAX PURPOSES

      There are not in existence any circumstances whereby any such power as is
      mentioned in s.212 Inheritance Tax Act 1984 could be exercised in relation
      to any shares in, securities of, or assets of, the Company.

15.2  GIFTS

      (A)   The Company is not liable to be assessed to corporation tax on
            chargeable gains or to inheritance tax as donor or donee of any gift
            or transferor or transferee of value.

      (B)   The Company has not been a party to associated operations in
            relation to a transfer of value within the meaning of s.268
            Inheritance Tax Act 1984.

      (C)   No Inland Revenue charge (as defined in s.237 Inheritance Tax Act
            1984) is outstanding over any asset of the Company or in relation to
            any shares in the capital of the Company.

                                       66
<PAGE>

      (D)   The Company has not received any asset as mentioned in s.282 TCGA
            1992.

                                       67
<PAGE>

                       SCHEDULE 7: PARTICULARS OF PREMISES

<TABLE>
<CAPTION>

                             PRESENT              DATE OF AND                                      CURRENT PRINCIPAL
DEMISED PREMISES              TENANT            PARTIES TO LEASE                 TERM                 YEARLY RENT
<S>                        <C>                  <C>                   <C>                          <C>
5th Floor                  The Company          Arnolfini             5 year lease                 (pound)115,625
Bush House                                                            3 year break clause
Prince Street                                                         Lease from 01 July
Bristol                                                               2004
BS1
United Kingdom

Broad Quay House           The Company          Regus                 Expires 31 July 2004         (pound)272,412
Prince Street
Bristol
BS1 4DJ
United Kingdom

Spaces Personal Storage    The Company          Spaces Personal       One month rolling contract     (pound)3,708
10 Clift House Road                             Storage               4 weeks notice to terminate
Ashton Gate
Bristol
BS3 1RX
United Kingdom

Suite 10                   The Company          Chapman Taylor LLP    6 month rolling contract      (pound)28,200
3rd Floor                                                             Expires 29.11.2003
Macmillon House                                                       4 weeks notice to terminate
96 Kensington High Street
London
W8 4SG
United Kingdom
</TABLE>

<TABLE>
<CAPTION>
                                                     DETAILS OF ANY TENANCY TO WHICH
                              CURRENT                THE PREMISES ARE SUBJECT (OR ANY
DEMISED PREMISES                USE                    AGREEMENT FOR SUCH TENANCY)
<S>                        <C>                       <C>
5th Floor                  Office Space              None
Bush House
Prince Street
Bristol
BS1
United Kingdom

Broad Quay House           Office Space              None
Prince Street
Bristol
BS1 4DJ
United Kingdom

Spaces Personal Storage    Office Space              None
10 Clift House Road
Ashton Gate
Bristol
BS3 1RX
United Kingdom

Suite 10                   Office Space              None
3rd Floor
Macmillon House
96 Kensington High Street
London
W8 4SG
United Kingdom
</TABLE>

                                       68
<PAGE>

<TABLE>
<S>                        <C>                  <C>                   <C>                          <C>
Regus Business Centre      On Demand            Regus                 One Year contract            (euro)  21,600
Lago Richini No 6          Distribution S.r.l.                        Expires 28.02.2005
20122 Milan
Italy

290 Boulevard Voltaire     On Demand            Bail Lafon            9 year lease                 (euro)  21,953
75011 Paris                Distribution sas     Letting agent:        Expires 31.03.2010
France                                          Muriel Forest-Vergez  3 year break clauses

Stammstrasse 90            On Demand            Udo Krone & Rose      One year rolling contract    (euro)  10,800
5823 Cologne               Distribution GmbH    Haferkamp             Expires 01.06.2005
Germany
</TABLE>

<TABLE>
<S>                        <C>                  <C>
Regus Business Centre      Office Space         None
Lago Richini No 6
20122 Milan
Italy
290 Boulevard Voltaire     Office Space         Sept a Voir is a sub-tenant of
75011 Paris                                     On Demand Distribution sas
France

Stammstrasse 90            Office Space         IT Synergy is a sub-tenant of On
5823 Cologne                                    Demand Distribution GmbH
Germany
</TABLE>

                                       69
<PAGE>

                        SCHEDULE 8: OBLIGORS' PROTECTION

1.    NON-APPLICATION TO CERTAIN CLAIMS.

      For the avoidance of doubt, no provision in this schedule shall apply to
      any claim under clauses 4.2 and 4.3 of this Deed.

2.    LIMITATIONS ON RECOVERY

2.1   SOLE RIGHT OF RECOURSE

      The sole right of recourse of the Purchaser for any Relevant Claim and for
      any amounts due under schedule 12 following the preparation of the
      Completion Accounts and for any damages payable under clause 3.1(A), shall
      be limited (in accordance with the terms of schedule 9) to the Escrow
      Shares, the Escrow Cash and, subject to paragraphs 2.2 and 6.4 of schedule
      9, any further Consideration due under the Offer.

2.2   MAXIMUM CLAIM

      The total amount which the Purchaser may claim for:

      (A)   all Relevant Claims; and

      (B)   any amounts due under schedule 12 following the preparation of the
            Completion Accounts; and

      (C)   any damages payable under clause 3.1(A),

      shall not, in aggregate, exceed 15% of the Consideration.

3.    TIME LIMITS

      The Obligors shall have no liability in respect of any Relevant Claim
      unless the Purchaser shall have given notice in writing to the Obligors of
      such claim not later than the last Business Day before the date which is
      18 months after the Offer Date and such Relevant Claim is either (i)
      settled between the Purchaser and the Obligors or (ii) the Purchaser has
      commenced proceedings in respect of such Relevant Claim within 3 months of
      the date of such notice.

4.    NO DUPLICATION OF RECOVERY

4.1   NO DOUBLE RECOVERY

      The Purchaser shall not be entitled to recover damages or otherwise obtain
      reimbursement or restitution more than once in respect of the same loss
      (including for the avoidance of doubt under the Warranties and the
      indemnities in clause 4 and schedule 11), but to the extent any loss is
      not satisfied in full by any particular damages claim or reimbursement,
      this provision shall not apply to the difference between the amount
      recovered and the loss suffered.

4.2   CLAIMS UNDER WARRANTIES OR TAX INDEMNITY

      In the event that the Purchaser is entitled to claim under the indemnity
      contained in schedule 11 or under the Warranties in respect of the same
      subject matter, the Purchaser may claim under either or both but payments
      under the indemnity contained in schedule 11 shall pro tanto satisfy and

                                       70
<PAGE>

      discharge any claim which is capable of being made under the Warranties in
      respect of the same subject matter and vice versa.

5.    RELEVANCE OF LIMITATIONS IN CIRCUMSTANCES OF FRAUD ETC

      Nothing in this Deed shall limit the ability of the Purchaser to recover
      any amount from any Obligor in respect of a Claim against any Obligor if
      it is (or the delay in the discovery of which is) the consequence of
      fraud, wilful misconduct or wilful concealment by that Obligor.

6.    THIRD PARTY CLAIMS

6.1   The Purchaser shall notify the Obligors in writing of:

      (A)   any claim made against it by a third party which may give rise to a
            Relevant Claim;

      (B)   any claim that any Group Company is entitled to bring against a
            third party which claim is based on circumstances which may give
            rise to a Relevant Claim.

6.2   The Purchaser shall procure that the conduct, negotiation, settlement or
      litigation of the claim by or against such third party is, so far as is
      reasonably practicable and having regard to the interests of the Company
      and Loudeye (which shall include the preservation and maintenance of the
      goodwill of the Purchaser Group (including the Group) with any customer or
      supplier of the Company or the Subsidiaries), carried out in accordance
      with the wishes of the Warrantors and at their cost subject to their
      giving timely instructions to the Purchaser and indemnifying and securing
      the Purchaser and/ or the Company to the Purchaser's reasonable
      satisfaction against all costs and expenses which might be incurred by the
      Purchaser or the Company in so doing. Nothing in this paragraph 6 shall
      apply to any Relevant Claim under the Warranties contained in schedule 6
      or the indemnity in schedule 11.

6.3   The Purchaser shall, at the Warrantors' cost, provide and shall procure
      that the Group provides to the Warrantors and their professional advisers
      reasonable access to premises and personnel and to any relevant assets,
      documents and records within their power, possession or control for the
      purpose of investigating any Relevant Claim and enabling the Obligors to
      take the action referred to in sub-paragraph 6.2 and shall allow the
      Obligors and their advisers to take copies of any relevant documents or
      records at their expense.

7.    LIMITATIONS ON LIABILITY

7.1   No rights to the Escrow Shares shall be waived by the Obligors or Escrow
      Cash released to the Purchaser under schedule 9 in respect of any Relevant
      Claim unless the amount of any such Relevant Claim, when aggregated with
      all other Relevant Claims, made on the same occasion or previously, is
      equal to or exceeds(pound)10,000 (in which case the Obligors shall be
      liable for the whole amount and not simply the excess).

7.2   No rights to the Escrow Shares shall be waived by the Warrantors or Escrow
      Cash released to the Purchaser under schedule 9 in respect of any Relevant
      Claim unless the amount of such Relevant Claim exceeds(pound)1,000 (in
      which case the Obligors shall be liable for the whole and not simply the
      excess).

7.3   No Escrow Shares shall be waived by the Obligors or Escrow Cash released
      to the Purchaser under schedule 9 in respect of and to the extent that:

      (A)   the Purchaser has actual knowledge of the subject matter of the
            Relevant Claim on or before the Offer Date;

                                       71
<PAGE>

      (B)   an allowance, provision or reserve in respect of any liability the
            subject of the Relevant Claim was made or taken into account, or
            payment or discharge of which was taken into account, in or in
            preparing the Accounts;

      (C)   it would not have arisen or would have been reduced or eliminated
            but for:

            (1)   any claim, election, surrender or disclaimer made or notice or
                  consent given or any other thing done after Completion by any
                  Group Company or the Purchaser or any person connected with
                  them;

            (2)   it is attributable to or arises as a result of:

                  (a)   any voluntary act or omission of the Purchaser (or any
                        persons deriving title from it) or any Group Company
                        after Completion done or suffered outside the ordinary
                        course of business;

                  (b)   a change in the law (whether retrospectively or not);

            (3)   the Purchaser is indemnified against any loss or damage
                  suffered by it under the terms of any insurance policy for the
                  time being in force and any claim under such insurance policy
                  is successful and covers the whole amount of any loss or
                  damage which would otherwise have been recoverable from the
                  Warrantors;

            (4)   the Purchaser would have been so indemnified under paragraph
                  7.3(C)(3) had the insurance policies held by the Group
                  immediately prior to Completion remained in full force and
                  effect;

            (5)   any action taken at the request or direction of the Purchaser
                  (including any changes to accounting policies);

            (6)   a breach of the Purchaser's obligations under this Deed;

            (7)   has been or is made good or is otherwise compensated for
                  without cost to the Purchaser or any Group Company.

7.4   Where the subject matter of the Relevant Claim is capable of remedy, the
      Obligors shall not be liable for the Relevant Claim if the breach or
      default is remedied by them to the reasonable satisfaction of the
      Purchaser within 30 days of receipt by them of the notification of the
      Claim pursuant to paragraph 3 above.

                                       72
<PAGE>

                          SCHEDULE 9 : ESCROW MECHANISM

1.    INTERPRETATION

1.1   DEFINITIONS

      In this schedule, where the context admits:

      "DEFERRED CONSIDERATION" shall have the meaning ascribed to it in the
      Offer Document;

      "EARN OUT CONSIDERATION" shall have the meaning ascribed to it in the
      Offer Document;

      "ESCROW PERIOD" shall have the meaning set out in paragraph 3 of this
      schedule;

      "RELEVANT PERCENTAGE" means the percentages listed in column 3 of the
      table at paragraph 2.1 of this schedule;

      "SERIES B NOTES" shall have the meaning ascribed to it in the Offer
      Document;

      "SERIES C NOTES" shall have the meaning ascribed to it in the Offer
      Document; and

      SET-OFF AMOUNT shall have the meaning set out in paragraph 6.4 of this
      schedule.

2.    ESCROW ARRANGEMENTS

2.1   The Purchaser will retain the following amounts of Initial Loudeye Shares
      otherwise due to be issued to the Obligors under the terms of the Offer
      and/or Loudeye Shares due under the Optionholder Alternative (as set out
      in the Offer Document) and hold them on the terms set out in this
      schedule:

<TABLE>
<CAPTION>
                                NUMBER OF INITIAL LOUDEYE
        NAME                         SHARES IN ESCROW              RELEVANT PERCENTAGE
<S>                             <C>                                <C>
Charles Grimsdale                         342,276                          16.36%
John Grinham                               42,835                           2.05%
Edward Averdieck                           38,410                           1.84%
Christopher Pike                           33,552                           1.60%
David Shephard                             41,923                           2.00%
Peter Gabriel                             420,973                          20.12%
Michael Large                              20,131                           0.96%
Susan Moule                                 7,268                           0.35%
Quester Venture Partners LLP              119,653                           5.72%
Quester VCT2 plc                          303,194                          14.49%
Quester VCT3 plc                          303,194                          14.49%
</TABLE>

                                       73
<PAGE>

<TABLE>
<S>                                     <C>                                <C>
Quester VCT4 plc                          113,669                           5.43%

Investment Enterprise
Partnership `NIF New
Technology Fund
99A'                                       22,207                           1.06%

Investment Enterprise
Partnership `NIF New
Technology Fund 99B'                       22,207                           1.06%

Investment Enterprise
Partnership `NIF New
Technology Fund 2000/01'                   52,489                           2.51%

Investment Enterprise
Partnership `NIF New
Technology Fund 2000/02'                   84,853                           4.06%

Investment Enterprise
Partnership `NIF 21-ONE(1)                 32,364                           1.55%

NIF Ventures Co. Limited                   91,302                           4.36%

TOTALS                                  2,092,500                            100%
</TABLE>

2.2   Each of the Obligors irrevocably directs the Purchaser to, and consents
      and agrees to, the holding of the Escrow Shares by the Purchaser on the
      terms set out in this schedule. Each of the Obligors irrevocably directs
      the Purchaser to, and consents and agrees to, the Purchaser retaining the
      Relevant Percentage of each of their respective entitlements to (when and
      if the same shall become due, provided that with respect to entitlements
      that may become due following the expiration of the Escrow Period, the
      Purchaser shall be entitled to retain amounts (of either cash or Loudeye
      Shares, but not to exceed the Relevant Percentages) that may be necessary
      to satisfy Claims made prior to the expiration of the Escrow Period):

      (A)   any cash;

      (B)   any Loudeye Shares; and

      (C)   any Further Loudeye Shares

      whether due under a Promissory Note or otherwise, but due to them under
      the terms of the Offer and/or the Optionholder Alternative (as set out in
      the Offer Document), such cash and/or Loudeye Shares to be held on the
      terms of this schedule and deemed to be Escrow Cash or Escrow Shares as
      appropriate.

2.3   For the avoidance of doubt, in the event of any discrepancy between the
      terms of this schedule and:

      (A)   the terms of the Offer; or

      (B)   the terms of any Promissory Note

                                       74
<PAGE>

      the terms of this schedule shall prevail in all respects irrespective of
      whether this Deed is dated prior to the date of the Offer or any
      Promissory Note and irrespective of whether the Offer or Promissory Notes
      contain any terms to the effect that the terms of such document are the
      whole agreement between the parties.

3.    ESCROW PERIOD

      The Escrow Shares and Escrow Cash will be held by the Purchaser or in the
      Escrow Account respectively on the terms set out in this Deed until the
      later of:

      (A)   the settlement of the Completion Accounts;

      (B)   the date which is 18 months from the Offer Date;

      (C)   the conclusion of any legal proceedings in the courts of England and
            Wales to judgment, settlement or waiver in respect of any Claim; or

      (D)   the expiration of any notice of a Relevant Claim pursuant to
            paragraph 3 of schedule 8

      the period from the Offer Date to such date being the "ESCROW PERIOD".

4.    ESCROW MECHANISM

4.1   All Loudeye Shares which are the subject of paragraphs 2.1 and 2.2 above
      shall be issued by the Purchaser in the name of the relevant Obligor, but
      the certificates in respect of such Loudeye Shares shall be held by the
      Purchaser until the end of the Escrow Period or until any Claims under the
      terms of this Deed are settled.

4.2   All cash amounts (if any) which are the subject of paragraph 2.2 above
      shall be paid into the Escrow Account until the end of the Escrow Period
      or until any Claims under the terms of this Deed are settled.

4.3   For the avoidance of doubt, if the Purchaser is required to actually pay
      over any amount of cash or actually issue any Loudeye Shares pursuant to a
      Promissory Note prior to the end of the Escrow Period, the Purchaser shall
      retain (in the case of Loudeye Shares) or pay into the Escrow Account (in
      the case of cash) the Relevant Percentages of such Loudeye Shares or cash
      that would otherwise be payable to each Obligor under such Promissory Note
      and any such Loudeye Shares and/or cash shall be considered Escrow Shares
      and Escrow Cash for the purposes of this schedule 9. The retention by the
      Purchaser of such Escrow Shares or payment into the Escrow Account of such
      Escrow Cash resulting from any Promissory Note shall be deemed to satisfy
      in full the Purchaser's obligations under the terms of the Promissory Note
      in respect of such Escrow Shares or Escrow Cash.

5.    APPOINTMENT OF REPRESENTATIVE

5.1   Each of the Obligors approve the joint appointment of and jointly appoint
      Christopher Pike, Jamie Brooke and Michael Large as the joint
      representative of the Obligors (the "REPRESENTATIVE") and as the attorney
      and agent for and on behalf of each Obligor with respect to the taking by
      the Representative of any and all actions and the making of any decisions
      required or permitted to be taken by the Representative under this
      schedule including the exercise of the power to:

      (A)   authorise the release or delivery to the Purchaser of Escrow Shares
            or give instructions to release the Escrow Cash from the Escrow
            Account in satisfaction of any Claim to the Purchaser;

                                       75
<PAGE>

      (B)   enter into agreements with the holder of the Escrow Account in
            relation to the operation of the Escrow Account;

      (C)   agree to, negotiate, enter into settlements and compromises of, and
            comply with orders of courts with respect to, such Claim;

      (D)   resolve, settle or compromise any Claim hereunder;

      (E)   take all actions contemplated by schedule 12 in relation to the
            Completion Accounts (as the same is defined in schedule 12); and

      (F)   take all actions necessary in the judgment of the Representative to
            accomplish the foregoing.

      For the avoidance of doubt Christopher Pike, Jamie Brooke and Michael
      Large shall act as a joint Representative and their joint consent is
      required to take any action under their joint appointment as
      Representative. The Representative will have authority and power to act on
      behalf of each Obligor with respect to the disposition, settlement or
      other handling of all Claims hereunder. Each Obligor will be bound by all
      actions taken and documents executed by the Representative in connection
      with this Deed, and the Purchaser will be entitled to rely on any action
      or decision of the Representative. In performing the functions specified
      in this Deed, the Representative will not be liable to any Obligor in the
      absence of gross negligence or wilful misconduct on the part of the
      Representative. The Obligors (excluding Quester Venture Partnership, LLP,
      Quester VCT2 plc, Quester VCT3 plc, Quester VCT4 plc (together "QUESTER"),
      Investment Enterprise Partnership `NIF New Technology Fund 99A',
      Investment Enterprise Partnership `NIF New Technology Fund 99B',
      Investment Enterprise Partnership `NIF New Technology Fund 2000/01',
      Investment Enterprise Partnership `NIF New Technology Fund 2000/02',
      Investment Enterprise Partnership `NIF 21-ONE(1) and NIF Ventures Co. Ltd
      (together "NIF")) shall severally indemnify the Representative and hold
      each of them harmless against any loss, liability or expense incurred
      without gross negligence or wilful misconduct on the part of the
      Representative and arising out of or in connection with the acceptance or
      administration of their duties in this schedule or schedule 12. Quester
      may at any time by written notice to each of the Purchaser, Christopher
      Pike and Michael Large, remove Jamie Brooke as a joint representative and
      replace him with such other employee of Quester in his place.

6.    WAIVER OF ESCROW CASH AND ESCROW SHARES

6.1   WAIVER OF ESCROW CASH

      Following judgment being obtained against all or any of the Obligors from
      a court or tribunal of competent jurisdiction or any Claim against all or
      any of the Obligors being settled by the Representative in favour of the
      Purchaser each Obligor hereby irrevocably waives his or its right to such
      amount of Escrow Cash as shall be calculated by the following formula:

            where:

            N = the amount of Escrow Cash to which the relevant Obligor waives
            their rights;

            A = the amount owed pursuant to the Claim; and

            B = the Relevant Percentage specified next to such Obligor's name in
            paragraph 2.1.

                                       76
<PAGE>

6.2   WAIVER OF ESCROW SHARES

      Following judgment being obtained against all or any of the Obligors from
      a court or tribunal of competent jurisdiction or any Claim against all or
      any of the Obligors being settled by the Representative in favour of the
      Purchaser each Obligor hereby irrevocably waives his or its right to such
      number of Escrow Shares as shall be calculated by the following formula:

            where:

            N = the number of Escrow Shares to which the relevant Obligor waives
            their rights;

            A = the amount owed pursuant to the Claim;

            B = the Relevant Percentage specified next to such Obligor's name in
            paragraph 2.1; and

            C = the closing share price of the Loudeye Shares on NASDAQ on the
            last day on which NASDAQ is open for the settlement of trades in
            Loudeye Shares before the settlement of the Claim or judgment having
            been given.

6.3   Without limiting the foregoing, any Claim by the Purchaser (or portion
      thereof) which has not been contested by the Representative within 30 days
      after receipt thereof shall be deemed to have been settled in favour of
      the Purchaser and the corresponding amount of Escrow Cash or number of
      Escrow Shares waived by the Obligors under this paragraph 6.

6.4   The Purchaser agrees that in respect of any Claim, the waiver by the
      Obligors pursuant to paragraphs 6.1 and/or 6.2 of their right to all or
      some of any Escrow Cash and/or Escrow Shares shall constitute full and
      final settlement of the whole (or as the case may be part) of the Claim,
      provided that such waiver meets the total liability of the Claim. If there
      are insufficient Escrow Shares or Escrow Cash available to make payment in
      full of the Claim the amount outstanding shall be applied against any
      Escrow Shares or Escrow Cash which may, at a later date, become the
      subject of this schedule. Following any such waiver, should there be any
      amount still due under any Claim (the "SET-OFF AMOUNT"), the Purchaser
      shall be entitled to set-off against payments due under any outstanding
      Promissory Notes or the payment of any further Consideration due under the
      Offer (whether by Promissory Note or otherwise and including, without
      limitation, any Deferred Consideration and Earn Out Consideration) in
      accordance with the Relevant Percentages of each Obligor up to the Set-Off
      Amount, provided always that the total amount which the Purchaser may
      claim under the Warranties, the tax indemnity in schedule 11, the
      Completion Accounts in schedule 12 and the covenant in clause 3.1(A) shall
      not exceed 15% of the total Consideration payable under the Offer. Any
      such set-off applied in satisfaction of a Claim shall be deemed to satisfy
      in full the Purchaser's obligation under the Offer and/or any Promissory
      Note to the extent of the Set-Off Amount.

6.5   If any Set-Off Amount is settled by way of set-off against any amount due
      under any Series B Note or Series C Note, such note shall be deemed to
      have its principal amount reduced from the date of its issue by the amount
      of such Set-Off Amount and accordingly no interest shall accrue on such
      Set-Off Amount. Each Obligor undertakes to surrender any certificate in
      respect of any B Promissory Note or C Promissory Note which has been the
      subject of a Set-Off Amount for reissue by the Purchaser for such lower
      amount as is equal to the original principal amount minus any Set-Off
      Amount.

6.6   Each of the Obligors irrevocably agrees that their Escrow Shares and
      Escrow Cash will be used to satisfy any Claim under this Deed in the
      percentage proportions set out in paragraph 2.1 irrespective

                                       77
<PAGE>

      of whether it is a breach of the Warranties or any indemnity or
      restrictive covenant given by all or some only of the Warrantors or
      otherwise.

7.    ORDER OF SATISFACTION OF CLAIM

      Following judgment being obtained against the Obligors from a court or
      tribunal of competent jurisdiction or any Claim being settled by the
      Representative in favour of the Purchaser, such Claim shall be settled
      first from the Escrow Cash (if any), secondly from the Escrow Shares,
      thirdly from any cash payable under the Offer, which does not become
      Escrow Cash, by way of set-off pursuant to paragraph 6.4 and fourthly from
      any Further Loudeye Shares payable under the Offer, which do not become
      Escrow Shares, by way of set-off pursuant to paragraph 6.4.

8.    RELEASE TO OBLIGORS

      On the first Business Day following the expiry of the Escrow Period and
      following written notice from the Representative on behalf of the
      Obligors:

      (A)   the Purchaser and the Representative shall give instructions in
            relation to the Escrow Account to transfer to each Obligor the
            amount of Escrow Cash (together with any accrued interest); and

      (B)   the Purchaser shall release to each Obligor the remaining number of
            Escrow Shares to which he is entitled pursuant to the this schedule

      less any Escrow Cash and/or Escrow Shares in respect of which each such
      Obligor has waived their rights pursuant to paragraph 6 above.

9.    RELEASE TO PURCHASER

      On the first Business Day following any waiver pursuant to paragraph 6,
      then following written notice from the Purchaser to the Representative to
      that effect:

      (A)   the Purchaser and the Representative shall give instructions in
            relation to the Escrow Account to transfer such amount of Escrow
            Cash to the Purchaser; and

      (B)   such number of Escrow Shares as are the subject of such waiver may,
            without limitation and in the Purchaser's sole discretion, be
            cancelled, held in treasury by the Purchaser or reissued by the
            Purchaser to another person;

      and upon such waiver the Consideration shall be deemed to have been
      reduced accordingly. At the request of the Purchaser, each Obligor shall
      execute such stock transfer instructions as may be reasonably necessary
      (if any) to effect the release of such Escrow Shares to the Purchaser.

                                       78
<PAGE>

                    SCHEDULE 10: OBLIGORS' PROFESSIONAL FEES

<TABLE>
<CAPTION>
PROFESSIONAL ADVISOR       WORK PROVIDED                                                       FEES
<S>                        <C>                                                  <C>
Osborne Clarke             Legal Services to the Obligors

Broadview International    Financial Services and Markets Act 2000
Limited                    (Financial Promotion) Order 2001,
                           paragraph 15 of part II of
                           Schedule 4 advice to the directors
                           of the Company regarding the
                           implications of the Offer

Gray Cary                  Legal Services to the Obligors

Grant Thornton             Audit of the Company's accounts to US
                           GAAP for the purposes of the
                           Purchaser's 8-K filing with the
                           Securities and Exchange Commission

Sheridans                  Legal Services to certain of the Obligors

KPMG                       Preparation of the Company's Accounts
                           in accordance with US GAAP

Total                                                                           (pound)1,000,000 inclusive of VAT

</TABLE>

                               79
<PAGE>

                           SCHEDULE 11: TAX INDEMNITY

1.    INTERPRETATION

1.1   DEFINITIONS

      The following words and expressions shall have the following meanings:

      "AUDITORS" means the auditors from time to time of the Company;

      "DEEMED TAX LIABILITY" has the meaning given in paragraph 1.2(B);

      "DISTRIBUTIOn" has the meaning given in paragraph 1.2(D)(3);

      "EVENT" includes the existence of any state of affairs and any payment,
      transaction, action or omission, any change in the residence of any person
      for the purposes of any Tax, the death of any person, and a failure to
      take any action which would avoid an apportionment or deemed distribution
      of income (regardless of whether the taking of any such action after the
      Offer Date could have avoided such apportionment or deemed distribution)
      and shall also include Completion and reference to an Event occurring on
      or before the Offer Date shall be deemed to include any combination of two
      or more Events only the first of which shall have occurred on or before
      that date outside the ordinary course of business and the second of which
      shall have occurred after the Offer Date within the ordinary course of
      business;

      "GROUP RELIEF" means any loss, allowance, credit, exemption or set-off or
      other amount eligible for surrender by way of group relief in accordance
      with the provisions contained in sections 402 to 413 Taxes Act;

      "INCOME, PROFITS OR GAINS" has the meaning given in paragraph 1.2(D)(1);

      "PROCEEDINGS" means any proceeding, suit or action arising out of or in
      connection with this schedule;

      "RELEVANT AMOUNT" has the meaning set out in paragraph 5.3;

      "RELEVANT COMPANY" has the meaning set out in paragraph 2.1(C);

      "RELIEF" means any relief, allowance, credit, exemption or set-off in
      respect of any Tax or any deduction in computing Income, Profits or Gains
      for the purposes of any Tax;

      "TAX ASSESSMENT" means any assessments, demand, determination or other
      similar formal notice issued by or on behalf of any Tax Authority by
      virtue of which the Company or any of the Subsidiaries is liable or is
      likely to become liable to make a payment of Tax or will, or is likely to
      with the passing of time, become so liable (in the absence of any
      successful application to postpone any such payment) and shall also mean
      any self-assessment made by the Company, any of the Subsidiaries or any
      other person in respect of any amount of Tax which any of them either
      considers that it is liable to pay or considers that it will, with the
      passing of time, become liable to pay;

      "TAX AUTHORITY" means the Inland Revenue, Customs & Excise, Department of
      Social Security and any taxing or other authority (whether within or
      outside the United Kingdom) competent to impose any Taxation; and

      "TAX LIABILITY" has the meaning given in paragraph 1.2(A).

                                       80
<PAGE>

1.2   CONSTRUCTION OF CERTAIN REFERENCES

      (A)   references to any "TAX LIABILITY" of the Company or any of the
            Subsidiaries shall mean both liabilities of the Company or that
            Subsidiary to make actual payments of Tax (or amounts in respect of
            Tax), regardless of whether any such liability shall have been
            discharged in whole or in part on or before the Offer Date save to
            the extent that such discharge is taken into account in the Audited
            Accounts, and also:

            (1)   the loss of any Relief where such Relief has been taken into
                  account in computing and so reducing or eliminating any
                  provision for deferred Tax which appears in the Audited
                  Accounts (or which but for such Relief would have appeared in
                  the Audited Accounts) or where such Relief was treated as an
                  asset of the Company in the Audited Accounts or was taken into
                  account in the computing any deferred Tax asset which appears
                  in the Audited Accounts;

            (2)   the loss of a right to repayment of Tax (including any
                  repayment supplement) which has been treated as an asset of
                  the Company or the relevant Subsidiary in preparing the
                  Audited Accounts or the setting off of any such right to
                  repayment of Tax against any actual Tax Liability in respect
                  of which the Purchaser would, but for that setting off, have
                  been able to make a claim against the Warrantors or any of
                  them under this schedule;

            (3)   the setting off or use against Income, Profits or Gains which
                  were earned, accrued or received on or before the Offer Date
                  or in respect of a period ended on or before the Offer Date or
                  against any Tax otherwise chargeable in respect of an Event
                  occurring (or deemed to occur) on or before the Offer Date or
                  in respect of a period ended on or before the Offer Date of
                  any Relief which arises as a consequence of or by reference to
                  an Event occurring (or deemed to occur) after the Offer Date
                  or in respect of a period commencing after the Offer Date and
                  not as a consequence of or by reference to any Event occurring
                  (or deemed to occur) on or before the Offer Date or in respect
                  of a period ended on or before the Offer Date in circumstances
                  where, but for such setting off, the Company or the relevant
                  Subsidiary would have had an actual Tax Liability in respect
                  of which the Purchaser would have been able to make a claim
                  against the Warrantors or any of them under this schedule; and

            (4)   any payment or repayment referred to in paragraph 2.1(D).

      (B)   in any case falling within any of paragraphs 1.2(A)(1), 1.2(A)(2),
            1.2(A)(3), or paragraph 1.2(A)(4), the amount that is to be treated
            for the purposes of this schedule as a Tax Liability of the Company
            or the relevant Subsidiary (the "DEEMED TAX LIABILITY") shall be
            determined as follows:

            (1)   in a case which falls within paragraph 1.2(A)(2) the Deemed
                  Tax Liability shall be the amount of the repayment and any
                  related supplement that would have been obtained but for the
                  loss or setting off mentioned in that paragraph;

            (2)   in a case which falls within paragraphs 1.2(A)(1) or 1.2(A)(3)
                  and where the Relief that was lost or the subject of the
                  setting off was a deduction from or offset against Tax, the
                  Deemed Tax Liability shall be the amount of that Relief;

            (3)   in a case which falls within paragraphs 1.2(A)(1) or 1.2(A)(3)
                  and where the Relief that was the subject of the setting off
                  was a deduction from or offset against Income, Profits or
                  Gains, the Deemed Tax Liability shall be the amount of Tax
                  which has been saved in consequence of the setting off; and

                                       81
<PAGE>

            (4)   in a case which falls within paragraph 1.2(A)(4) the amount of
                  the payment or repayment.

      (C)   in determining any Tax Liability for the period from 1 April 2004 to
            the Offer Date the accounting period in which the Offer Date occurs
            shall be deemed to end on the Offer Date and a new accounting period
            commenced immediately after the Offer Date.

      (D)   references to:

            (1)   "Income, Profits or Gains" shall include any standard or
                  measure for the purposes of any Tax and shall also include any
                  income, profits or gains which are deemed to be earned,
                  accrued or received for the purposes of any Tax;

            (2)   Income, Profits or Gains (as defined in paragraph 1.2(D)(1))
                  as being earned, accrued or received on or before a particular
                  date or in respect of a particular period shall mean Income,
                  Profits or Gains which are regarded as having been, or are
                  deemed to have been, earned, accrued or received on or before
                  that date or in respect of that period for the purposes of any
                  Tax;

            (3)   any "Distribution" shall include anything which is, or is
                  deemed to be, a dividend or distribution for the purposes of
                  any Tax;

            (4)   any Distribution as occurring on or before a particular date
                  shall include any Distribution which has fallen due to be made
                  on or before that date for the purposes of any Tax; and

            (5)   any "subsidiary of the Warrantors" shall mean any company of
                  which the Warrantors, or any one or more of the Warrantors,
                  have control for the purposes of section 416 Taxes Act.

2.    INDEMNITY

2.1   Subject to the provisions of schedule 8 (and for the avoidance of doubt
      paragraph 2 of schedule 8) and paragraph 3 of this schedule, the
      Warrantors hereby jointly and severally covenant with the Purchaser to pay
      to the Purchaser (so far as possible by way of repayment of the
      Consideration payable under the Offer) an amount equal to any of the
      following:

      (A)   any Tax Liability of the Company and/or any of the Subsidiaries
            arising as a consequence of any Event which occurred on or before
            the Offer Date or arising in respect of or by reference to any
            Income, Profits or Gains which were earned, accrued or received on
            or before the Offer Date;

      (B)   any liability of the Company and/or any of the Subsidiaries to
            employer's national insurance arising as a consequence of the
            exercise by any employee or officer of any Group Company of any
            option (granted before the Offer Date), at any time, to subscribe
            for any shares in the Company if the amount of such employer's
            national insurance exceeds the amount listed for any employee or
            officer in schedule 14, in which case the Warrantors shall be liable
            for the excess only above the amount listed in schedule 14;

      (C)   any Tax Liability of the Company and/or any of the Subsidiaries
            arising as a consequence of or by reference to any of the following
            occurring or being deemed to occur at any time after the Offer Date:

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            (1)   the disposal by any Relevant Company of any asset or of any
                  interest in or right over any asset;

            (2)   the making by any Relevant Company of any such payment or
                  deemed payment as constitutes a chargeable payment for the
                  purposes of section 214 Taxes Act or the making of any such
                  payment or deemed payment by any person, not being the
                  Purchaser and not being a company, that is acting in pursuance
                  of a scheme or arrangements made with any Relevant Company or

            (3)   any Relevant Company ceasing to be resident in the United
                  Kingdom for the purposes of any Tax; or

            (4)   any Relevant Company failing to pay the whole of the Tax
                  charged by any Tax Assessment made in respect of that Relevant
                  Company within six months of the date of that Tax Assessment,

            and, for the purposes of this paragraph, the term "Relevant Company"
            shall mean such of the Warrantors as are companies and any company,
            other than the Company or any of the Subsidiaries, that may be
            treated for the purposes of any Tax as being, or as having at any
            time been, either a member of the same group of companies as any of
            the Warrantors or otherwise associated with any of the Warrantors;
            or

      (D)   any payment for Group Relief surrendered or any repayment of any
            payment previously made for the surrender of Group relief required
            to be made by the Company or any of the Subsidiaries in respect of
            accounting periods ending before the Offer Date;

      (E)   any Tax liability arising to the Company or any of the Subsidiaries
            under Section 179 TCGA 1992 or under Section 111 Finance Act 2002 as
            a consequence an Event occurring at any time on or before the Offer
            Date; and

      (F)   any costs and expenses reasonably and properly incurred and payable
            by the Purchaser, the Company and/or any of the Subsidiaries in
            connection with any successful claim under this paragraph 2 therefor
            or in taking or defending any action under this schedule.

3.    LIMITS ON LIABILITY

3.1   Without prejudice to the provisions of schedule 8, the Warrantors shall
      not be liable for any claim under paragraph 2 or under the Warranties
      relating to Taxation:

      (A)   to the extent that provision or reserve in respect of that Tax
            liability was made in the Audited Accounts or in the Completion
            Accounts; or

      (B)   to the extent that the liability arises or is increased as a result
            only of:

            (1)   any increase in rates of Tax;

            (2)   any change in the bases upon which Accounts are prepared or
                  any change in accounting practices or principles;

            (3)   any change in the accounting date of the Company or the
                  relevant Subsidiary; or

            (4)   or any change in law made,

            in each case after the Offer Date with retrospective effect; or

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      (C)   to the extent that the liability would not have arisen but for a
            voluntary transaction, action or omission carried out or effected by
            the Purchaser or the Company or any of the Subsidiaries at any time
            after the Offer Date, other than any such transaction, action or
            omission:

            (1)   carried out or effected under a legally binding commitment
                  created on or before the Offer Date; or

            (2)   carried out or effected in the ordinary course of the business
                  carried on by the Company or the relevant Subsidiary as at the
                  Offer Date;

            where in either such case such act or transaction was carried out
            without the consent of the Warrantors or any of them and where the
            Purchaser, the Company or the relevant Subsidiary knew or ought
            reasonably to have known that such act or transaction would give
            rise to such liability; or

      (D)   to the extent that any Income, Profits or Gains to which the
            liability is attributable were actually earned or received by or
            actually accrued to the Company and/or any of the Subsidiaries but
            were not (in either such case) reflected in the Audited Accounts; or

      (E)   to the extent that the liability is attributable to the Company
            and/or any of the Subsidiaries ceasing to be entitled to the small
            companies' rate of corporation tax; or

      (F)   to the extent that the Purchaser has made recovery in respect of the
            liability by means of a claim for breach of any of the Warranties or
            under another claim under this schedule; or

      (G)   to the extent that the liability arises or is increased as a result
            of a cessation of trade or a major change in the nature or conduct
            of the Company's (or the relevant Subsidiary's) trade after the
            Offer Date; or

      (H)   to the extent that the liability is in respect of employer's
            national insurance contributions in respect of the exercise of share
            options by any employee or officer where such employer's national
            insurance contributions does not exceed the amount listed in
            schedule 14 for that employee or officer; and if the liability does
            exceed the amount in schedule 14, the Warrantors shall only be
            liable for the excess over that amount.

4.    MITIGATION

4.1   The Purchaser shall, at the direction in writing of the Warrantors,
      procure that the Company and/or the Subsidiaries take all such steps as
      the Warrantors may reasonably require to:

      (A)   use in the manner hereinafter mentioned all such Reliefs arising as
            a consequence of or by reference to any Event occurring (or deemed
            to occur) on or before the Offer Date or in respect of a period
            ended on or before the Offer Date and not as a consequence of or by
            reference to an Event occurring (or deemed to occur) after the Offer
            Date or in respect of a period commencing after the Offer Date as
            are available to the Company and/or the Subsidiaries to reduce or
            eliminate any Tax Liability in respect of which the Purchaser would
            have been able to make a claim against the Warrantors or any of them
            under this schedule, the said use being to effect the reduction or
            elimination of any such Tax Liability to the extent specified by the
            Warrantors and permitted by law, and to provide to the Warrantors,
            at the Warrantors' expense, a certificate from the auditors (for the
            time being) of the Company and/or any of the Subsidiaries confirming
            that all such Reliefs have been so used;

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      (B)   make all such claims and elections specified by the Warrantors in
            respect of any accounting period of the Company and/or any of the
            Subsidiaries commencing before the Offer Date as have the effect of
            reducing or eliminating any such Tax Liability as is mentioned in
            paragraph 4.1(A), provided that no such claim or election shall
            require the Company or any of the Subsidiaries to use any Relief
            which arises as a consequence of or by reference to an Event
            occurring (or deemed to occur) after the Offer Date or in respect of
            a period commencing after the Offer Date; and

      (C)   allow the Warrantors to reduce or eliminate any Tax Liability by
            surrendering, or procuring the surrender by any company other than
            the Company or any of the Subsidiaries, of Group Relief or advance
            corporation tax to the Company and/or any of the Subsidiaries to the
            extent permitted by law but without any payment being made in
            consideration for such surrender.

5.    OVER-PROVISIONS, RELIEFS, SAVINGS ETC.

5.1   If the Auditors certify (at the request and expense of the Warrantors)
      that any provision for Tax in the Audited Accounts (excluding any
      provision for deferred Tax) has proved to be an over-provision (otherwise
      than by reason of change in the rate of corporation tax applicable to any
      accounting period ended on or before the Offer Date by virtue of a change
      of law after the Offer Date) then the amount of such over provision shall
      be dealt with in accordance with paragraph 5.3.

5.2   If the Auditors certify (at the request and expense of the Warrantors)
      that any Tax Liability which has resulted in a payment having been made or
      becoming due from the Warrantors under this schedule will give rise to a
      Relief for the Company or any of the Subsidiaries which would not
      otherwise have arisen and where such Relief relates to a reduction or
      elimination of a liability to make an actual payment of Tax in respect of
      which the Warrantors would not have been liable under this schedule, then
      the amount of that Relief shall be dealt with in accordance with paragraph
      5.3, provided that if the Relief in question is a deduction from or offset
      against Income, Profits or Gains, the amount to be so dealt with shall be
      a sum equal to the amount of Tax that would be saved through the use of
      that Relief on the basis of the rates of tax current at the date of the
      certification made by the Auditors under this paragraph.

5.3   Where it is provided under paragraphs 5.1 or 5.2 that any amount (the
      "RELEVANT AMOUNT") is to be dealt with in accordance with this paragraph:

      (A)   the Relevant Amount shall first be set off against any payment then
            due from the Warrantors under this schedule; and

      (B)   to the extent there is an excess, a refund shall be made to the
            Warrantors of the whole or such part of any previous payment or
            payments made by the Warrantors under this schedule and not
            previously refunded under this Clause up to the amount of such
            excess as will leave the Purchaser in the same net after tax
            position that it would have been in had there been no such excess;
            and

      (C)   to the extent that the excess referred to in paragraph 5.3(B) of
            this Clause is not exhausted under that paragraph, the remainder of
            that excess shall be carried forward and set off against any future
            payment or payments which become due from the Warrantors under this
            schedule.

5.4   Where any such certification as is mentioned in paragraphs 5.1 or 5.2 has
      been made, the Warrantors or the Purchaser or the Company may request the
      Auditors to review such certification in the light of all relevant
      circumstances, including any facts which have become known only since such
      certification, and to certify whether such certification remains correct
      or whether, in the light of those circumstances, the amount that was the
      subject of such certification should be amended.

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5.5   If the Auditors certify under paragraph 5.4 that an amount previously
      certified should be amended, that amended amount shall be substituted for
      the purposes of paragraph 5.3 as the Relevant Amount in respect of the
      certification in question in place of the amount originally certified, and
      such adjusting payment (if any) as may be required by virtue of the
      above-mentioned substitution shall be made as soon as practicable by the
      Warrantors or (as the case may be) to the Warrantors.

6.    RECOVERY FROM OTHER PERSONS

6.1   If, in the event of any payment becoming due from the Warrantors under
      paragraph 2 or the Warranties relating to Taxation, the Company or any of
      the Subsidiaries either is immediately entitled at the due date for the
      making of that payment to recover from any person (not being the Company
      or any of the Subsidiaries but including any Tax Authority) any sum in
      respect of the Tax Liability or liability under the Warranties relating to
      Taxation that has resulted in that payment becoming due from the
      Warrantors, or at some subsequent date becomes entitled to make such a
      recovery, then the Purchaser shall promptly notify or procure that the
      Company or the Subsidiary entitled to make that recovery shall promptly
      notify the Warrantors of its entitlement and shall, if so required by the
      Warrantors and at the Warrantors' sole expense, take all appropriate steps
      to enforce that recovery (keeping the Warrantors fully and promptly
      informed of the progress of any action taken); and if the Warrantors have
      made a payment under paragraph 2 in respect of the Tax Liability or a
      payment in respect of the relevant Warranty relating to Taxation, the
      Purchaser shall account to the Warrantors (by way of reissuing such number
      of Escrow Shares as were waived by the Warrantors to settle such payment
      obligation) for whichever is the lesser of:

      (A)   any sum so recovered by the Company or the relevant Subsidiary in
            respect of that Tax Liability or liability under the relevant
            Warranty relating to Taxation (including any interest or repayment
            supplement paid by the Tax Authority or other person on or in
            respect of this schedule less any Tax chargeable on the Company or
            the relevant Subsidiary in respect of that interest);

      (B)   the amount paid by the Warrantors under paragraph 2 in respect of
            that Tax Liability or the amount paid under the relevant Warranty
            relating to Taxation; and

      (C)   such amount as will leave the Purchaser in the same net after tax
            position that it would have been in had no such sum been recovered.

7.    DISPUTES AND CONDUCT OF TAX CLAIMS

7.1   Subject to the other provisions of this paragraph 7 the Purchaser and its
      professional advisers shall have the sole conduct of the tax affairs of
      the Company and the Subsidiaries.

7.2   Upon the Purchaser, the Company or any of the Subsidiaries becoming aware
      of a Tax Assessment of which none of the Warrantors is then aware, which
      could give rise to a claim under this schedule or the Warranties relating
      to Taxation, the Purchaser shall promptly (having regard for any relevant
      time limit) give written notice of that Tax Assessment to the Warrantors
      or, as the case may be, shall procure that the Company or the relevant
      Subsidiary promptly give written notice of that Tax Assessment to the
      Warrantors but so that any notice which any of the Warrantors has in their
      capacity as a director of the Company for the time being or in any other
      capacity shall be deemed to be awareness by them for the purposes of this
      Clause.

7.3   The Purchaser shall further procure that the Company and/or the relevant
      Subsidiary (if the Warrantors shall indemnify the Purchaser, the Company
      and/or the relevant Subsidiary to the Purchaser's reasonable satisfaction
      against all losses, costs, damages and expenses, including interest on
      overdue Tax, which may be incurred thereby) take such action and give such
      information and assistance in connection with the affairs of the Company
      and/or the relevant Subsidiary as the

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<PAGE>

      Warrantors may reasonably and promptly by written notice request to avoid,
      dispute, defend, resist, appeal or compromise the claim the subject of the
      Tax Assessment (such a claim where action is so requested being
      hereinafter referred to as a "DISPUTE"), provided that:

      (A)   the Purchaser shall not be obliged to appeal, nor shall it be
            obliged to procure that either the Company or any of the
            Subsidiaries appeal against any Tax Assessment if, the Warrantors
            having been given written notice of the receipt of that Tax
            Assessment in accordance with the preceding provisions of this
            Clause, the Company or the relevant Subsidiary have not within 14
            days thereafter received instructions in writing from the
            Warrantors, in accordance with the preceding provisions of this
            Clause, to make that appeal;

      (B)   the Purchaser shall not be obliged to procure that either Company or
            any of the Subsidiaries take any action under this Clause which
            involves contesting any Tax Assessment before any court or other
            appellate body (excluding the authority or body demanding the Tax in
            question) unless the Warrantors furnish the Company or that
            Subsidiary with the written opinion of tax counsel who is a Queens
            Counsel (or equivalent) to the effect that an appeal against the Tax
            Assessment in question will, on the balance of probabilities, be
            successful;

      (C)   neither the Purchaser nor the relevant Subsidiaries shall be obliged
            to take any action which may increase the future liability to Tax of
            the Purchaser or any company which is for this time being a member
            of the same group of companies as the Purchaser including any
            Subsidiaries; and

      (D)   if any of the Warrantors is in material breach of its obligations
            under this schedule the provisions of this paragraph 7.3 shall cease
            to apply.

8.    TAX RETURNS

8.1   The Warrantors or their duly authorised agent shall procure the
      preparation of the Tax returns of the Company and the Subsidiaries for all
      accounting periods ended on or before the Balance Sheet Date, to the
      extent that the same shall not have been prepared before the Offer Date
      and submit them to the Purchaser.

8.2   The Purchaser shall procure that the Company and the Subsidiaries shall
      cause the returns mentioned in paragraph 8.1 to be authorised, signed and
      submitted to the relevant Tax Authority without amendment or with such
      amendments as the Purchaser reasonably considers to be necessary and shall
      give the Warrantors or their agent all such assistance as may reasonably
      be required to agree those returns with the appropriate authorities,
      provided that the Purchaser shall not be obliged to procure that either
      the Company or any of the Subsidiaries take any such action as is
      mentioned in this Clause in relation to any Tax return that is not true
      and accurate in all material respects.

8.3   The Warrantors or their duly authorised agent shall, prepare all
      documentation and deal with all matters (including correspondence)
      relating to the Tax returns of the Company and the Subsidiaries for all
      accounting periods ended on or before the Balance Sheet Date, provided
      that the Warrantors shall not without the prior written consent of the
      Purchaser (not to be unreasonably withheld or delayed) transmit any
      communication (written or otherwise) to the relevant Tax Authority or
      agree any matter with the relevant Tax Authority.

8.4   The Purchaser shall procure that the Company and the Subsidiaries shall
      afford such access to their books, Audited Accounts and records as is
      necessary and reasonable to enable the Warrantors or their duly authorised
      agent to prepare the returns and conduct matters relating thereto in
      accordance with the Warrantors' rights under this paragraph 8.

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8.5   Nothing done by the Company or by any of the Subsidiaries pursuant to this
      paragraph 8 shall in any respect restrict or reduce any rights the
      Purchaser may have to make a claim against the Warrantors under this
      schedule in respect of any such Tax Liability as is mentioned in paragraph
      2.

9.    DUE DATE OF PAYMENT

9.1   Subject to the provisions of schedule 8 and schedule 9, where the
      Warrantors become liable to make any payment under paragraph 2, the due
      date for the waiver of any Escrow Shares or Escrow Cash shall be the later
      of the date falling seven days after the Purchaser has served a notice on
      the Warrantors demanding that payment and:

      (A)   in a case that involves an actual payment of Tax by the Company
            and/or any of the Subsidiaries, the date that is the last date on
            which the Company or the relevant Subsidiary would have had to have
            paid to the appropriate Tax Authority the Tax that has given rise to
            the Warrantors' liability under this schedule in order to avoid
            incurring a liability to interest or a charge or penalty in respect
            of that Tax Liability; or

      (B)   in any case that involves a Tax Liability falling within Clause
            1.2(A)(1) or 1.2(A)(3) the last date upon which Tax would have been
            required to be paid to the relevant Tax Authority in respect of the
            period in which the loss or set off of the Relief occurs (assuming
            for this purpose that the Company had sufficient profits or was
            otherwise in position to use the Relief); or

      (C)   in any case that involves a Tax Liability falling within Clause
            1.2(A)(2) the date upon which the repayment was due from the
            relevant Tax Authority; or

      (D)   in any case that involves a Tax Liability falling within Clause
            1.2(A)(4) the date upon which the payment or repayment is made.

9.2   Any dispute as to the amount specified in any notice served on the
      Warrantors shall be determined by the Auditors at that time (the costs of
      that determination being shared equally by the Warrantors and the
      Purchaser).

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                    SCHEDULE 12: WORKING CAPITAL ADJUSTMENT

1.    INTERPRETATION

      In this schedule, where the context admits:

      "COMPLETION ACCOUNTS" means the accounts prepared in accordance with
      paragraph 2 and agreed or determined in accordance with paragraph 3;

      "COMPLETION ACCOUNTS DATE" means 31 May 2004;

      "FRS" means a Financial Reporting Standard published by the Accounting
      Standards Board and in force at the date of this Deed;

      "NET WORKING CAPITAL" means the aggregate value of all current assets
      (excluding fixed assets, goodwill, patents, trademarks and other
      intangible assets) minus the aggregate value of all liabilities and
      provisions (in accordance with paragraph 89 of schedule 4 of the Companies
      Act 1985 and FRS 12 in respect of contingent liabilities) and excluding
      any reserves or capital created by the upward revaluation of assets
      subsequent to the Balance Sheet Date, all as shown in or derived from the
      Completion Accounts;

      "OBLIGORS' ACCOUNTANTS" means Grant Thornton;

      "POST BALANCE SHEET COSTS" means the aggregate amount of all overheads (as
      such term has historically been set out and accounted for in the
      management accounts of the Company) incurred in the period from 01 June
      2004 to the Offer Date inclusive excluding any employer's national
      insurance due in respect of the exercise of any EMI options held by
      certain officers of the Company;

      "PURCHASER'S ACCOUNTANTS" means such firm of accountants as may be
      nominated by the Purchaser from time to time;

      "REPRESENTATIVE" shall have the meaning set out in paragraph 5 of schedule
      9;

      "SORP" means a Statement of Recommended Practice published by bodies
      recognised by the Accounting Standards Board and in force at the date of
      this Deed; and

      "SSAP" means a Statement of Standard Accounting Practice originally
      published by the Accounting Standards Committee and not since superseded
      and in force at the date of this Deed.

2.    COMPLETION ACCOUNTS

2.1   PREPARATION

      The Warrantors shall as soon as practicable, and in any event within 30
      Business Days after the Offer Date, procure that Completion Accounts for
      the Company and the Subsidiaries shall be prepared in accordance with this
      schedule and the parties shall use their best endeavours to secure
      compliance with this schedule by their respective accountants. The
      Purchaser shall promptly supply all such information and provide access to
      all such records and personnel at the Company as the Warrantors and any
      independent firm of accountants appointed under paragraph 3.3 shall
      reasonably require in relation to the preparation of the Completion
      Accounts. The Warrantors, if so required by the Purchaser or such
      independent firm, shall use all reasonable endeavours with the reasonable
      assistance of the Purchaser, to obtain for the Purchaser or such
      independent firm access to the working papers of the Company's auditors
      prepared in relation to the audit of the Audited Accounts.

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2.2   DESCRIPTION

      The Completion Accounts shall consist of a consolidated balance sheet of
      the Company and the Subsidiaries as at the close of business on the
      Completion Accounts Date, a statement of the Net Working Capital on the
      Completion Accounts Date and the Post Balance Sheets Costs as at the Offer
      Date and shall be substantially in the form of the Audited Accounts.

2.3   GENERAL REQUIREMENTS

      Subject to the specific requirements of paragraph 2.4 which shall take
      priority over the general requirements set out below, the Completion
      Accounts shall:-

      (A)   make full provision for all actual, future and contingent
            liabilities of the Company and the Subsidiaries as at the Offer Date
            in accordance with FRS 12;

      (B)   be prepared under the historic cost convention and in accordance
            with the requirements of all relevant Laws and generally accepted
            accounting policies, bases, methods, practices and procedures and
            with all SSAPs, FRSs, and applicable SORPS;

      (C)   show a true and fair view of the state of affairs of the Company and
            the Subsidiaries at the Completion Accounts Date; and

      (D)   subject to paragraphs 2.3(A), 2.3(B) and 2.3(C), apply and adopt the
            same policies, bases, methods, practices and procedures of
            accounting as applied or adopted for the purposes of the Audited
            Accounts.

2.4   SPECIFIC REQUIREMENTS

      In preparing the Completion Accounts:

      (A)   no value shall be attributed to goodwill or any other intangible
            asset;

      (B)   other fixed assets shall be included at the value at which they were
            included in the Audited Accounts, (or, if acquired after the Balance
            Sheet Date, at their cost) less, in each case, depreciation on a pro
            rata basis at the rates used in the Audited Accounts and, in each
            case, less full provision for damage or impairment on the same basis
            used in preparing the Audited Accounts;

      (C)   no value shall be attributed to any assets (including in particular
            any prepayment or debt) except to the extent that (following the
            Offer Date) the Company or a Subsidiary will have the benefit of the
            same;

      (D)   full provision shall be made for rebates and discounts that will
            fall due and fees, bonuses and commissions that will become payable
            after the Completion Accounts Date in either case in respect of
            sales or other transactions that took place before the Completion
            Accounts Date;

      (E)   full provision shall be made for any liability arising as a result
            of the change of control of the Company as a result of the making of
            the Offer or on Completion;

      (F)   full provision shall be made in respect of the cost of making good
            dilapidations and/or wants of repair on or to the Premises as would
            usually have been accrued for in any accounts of the Company;

      (G)   full provision shall be made for any debts due in the ordinary
            course of trading outstanding and uncollected at the Completion
            Accounts Date for a period of more than 60 days past the

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            due date and proper provision or reserve shall be made for all other
            bad or doubtful debts included in the Completion Accounts on the
            basis of the information available at the time the Completion
            Accounts are prepared;

      (H)   full provision shall be made for any repairs or other servicing
            required in relation to any vehicles or other plant and machinery;

      (I)   full provision shall be made for liabilities disclosed in the
            Disclosure Letter;

      (J)   provision shall be made for all tax and deferred tax in accordance
            with normal accounting principles;

      (K)   full provision shall be made for the preparation of all year end tax
            returns of the Company for all years to 31 March 2005, to the extent
            they have not already been prepared;

      (L)   full provision shall be made for all professional fees incurred,
            invoiced or to be invoiced to the Company in connection with any
            aborted equity offering or initial public offering of shares in the
            Company;

      (M)   full provision, shall be made for all employer's national insurance
            payable by the Company in respect of the exercise of any option to
            subscribe for shares in the Company; and

      (N)   full provision, regardless of when the same shall become due or
            payable, shall be made at the Completion Accounts Date for all
            bonuses payable to Employees, directors, former employees or former
            directors of any Group Company payable as result of the Purchaser
            making the Offer.

3.    PROCEDURE

3.1   SUBMISSION OF DRAFT

      (A)   As soon as the draft Completion Accounts shall have been prepared,
            the Warrantors shall send a copy to the Purchaser together with such
            working papers used in connection with the preparation of the same
            as it considers necessary or appropriate to understand and agree the
            Completion Accounts and shall in addition, at the same time, send to
            the Purchaser its calculation of the Net Working Capital and the
            Post Balance Sheet Costs.

      (B)   Unless the Purchaser shall within 30 Business Days after receipt of
            the draft Completion Accounts (and associated papers and calculation
            as provided in paragraph 3.1(A)) serve a notice in writing on the
            Obligors that it objects to the draft Completion Accounts
            (identifying the reason for any objection and the amount(s) or
            item(s) in the draft Completion Accounts and/or calculation which
            is/are in dispute) (such notification being, for the purposes of
            this paragraph 3, an "OBJECTION NOTICE") the Purchaser shall be
            deemed to have irrevocably agreed to the draft Completion Accounts,
            the calculation of the Net Working Capital and the Posts Balance
            Sheet Costs for all purposes of this Deed.

3.2   AGREEMENT OF DRAFT

      If, within the period referred to in paragraph 3.1(B), the Purchaser shall
      serve upon the Obligors an Objection Notice then the Purchaser and the
      Representative shall use their reasonable endeavours to reach agreement
      upon adjustments to the draft Completion Accounts. Neither the
      Representative nor the Purchaser shall be entitled to propose any
      adjustments to the draft Completion Accounts except: (i) in the case of
      the Purchaser, an adjustment relating to any asset, liability or overhead
      amount referred to in its Objection Notice and (ii) in the case of either
      of them, an adjustment by way of

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<PAGE>

      counter-proposal to an adjustment proposed by the other of them, being in
      each case, a revision of an adjustment referred to in the Objection
      Notice.

3.3   INDEPENDENT ACCOUNTANT

      If the Representative and the Purchaser are unable to reach agreement
      within 30 Business Days following service of the Objection Notice, either
      the Representative or the Purchaser shall be entitled to refer the matter
      or matters in dispute to an independent firm of chartered accountants (the
      "FIRM") agreed upon between them or (failing agreement) to be selected (at
      the instance of either of them) by the President for the time being of the
      Institute of Chartered Accountants in England and Wales. The Firm shall
      act as experts not as arbitrators and shall determine the matter or
      matters in dispute (which may include any dispute concerning the
      interpretation of any provision of this Deed affecting the Completion
      Accounts or their jurisdiction to determine the dispute or the content or
      interpretation of their terms of reference) and their decision shall be
      final and binding. The Firm may, so far as is reasonable, instruct
      valuers, solicitors and other professional advisers to the extent they
      consider necessary to reach their determination. The fees and expenses of
      the Firm (including the fees of any professional advisers appointed by
      them as aforesaid) shall be borne by the Obligors and the Purchaser in
      proportion to the amount of the disputed items with respect to which such
      party's claim was unsuccessful (for example, if there is a
      (pound)1,000,000 dispute regarding the Completion Accounts and the Firm
      determines that the Representative's claim prevails with respect to
      (pound)250,000 of such disputed amount and the Purchaser's claim prevails
      with respect to (pound)750,000 of such disputed amount, then the Obligors
      would be obligated to pay seventy five percent (75%) of the fees and
      expenses and the Purchaser would be obligated to pay twenty five percent
      (25%) of the fees and expenses).

3.4   ACCOUNTS FINAL AND BINDING

      If within the period referred to in paragraph 3.1(B) the Purchaser shall
      not have served an Objection Notice on the Obligors, or if such notice is
      served and the Purchaser and the Representative shall subsequently agree
      the draft Completion Accounts or the matters in dispute are referred to
      the Firm under paragraph 3.3, the draft Completion Accounts, as adjusted
      (where applicable) so as to be in accordance with the agreement of the
      Purchaser and the Representative or the determination of the Firm shall be
      the Completion Accounts for the purposes of this Deed and shall be final
      and binding on the parties.

3.5   INFORMATION AND EXPLANATIONS

      The Obligors and the Obligors' Accountants shall provide such information
      and explanations relating to the draft Completion Accounts and their
      preparation as the Purchaser's Accountants, or the Firm shall reasonably
      require.

4.    ADJUSTMENT OF CONSIDERATION

      When the Completion Accounts have become final and binding, the
      Consideration payable to the Obligors shall be pro rata reduced in the
      proportions set out in paragraph 2.1 of schedule 9 by the aggregate of:

      (A)   the amount (if any) by which the Net Working Capital of the Company
            and the Subsidiaries as at the Completion Accounts Date as shown by
            the Completion Accounts is more negative than negative
            (pound)600,000; and

      (B)   the amount (if any) by which the Post Balance Sheet Costs as shown
            by the Completion Accounts are more than `C' as calculated by the
            following formula:

                                       92

<PAGE>

            where

            D = number of Business Days elapsed from and including 01 June 2004
            to the Offer Date inclusive.

4.2   PAYMENT

      Any reduction in the Consideration pursuant to paragraph 4 shall be paid
      by the Obligors in accordance with the provisions of schedule 9 and
      paragraphs 2.1 and 2.2 of schedule 8, but for the avoidance of doubt no
      other provisions of schedule 8 shall apply to any reduction in the
      Consideration pursuant to this schedule 12.

                                       93

<PAGE>

                     SCHEDULE 13: ORDERLY SALES PROVISIONS

1.    INTERPRETATION

      In this schedule, where the context admits:

      "AVERAGE DAILY TRADING PRICE" means the average trading price of Loudeye
      Shares on NASDAQ on the Trading Day immediately prior to the Proposed Sale
      Date;

      "ADTV" means the average daily trading volume of Loudeye Shares on NASDAQ
      for the thirty Trading Days immediately preceding the Proposed Sale Date;

      "MAXIMUM SHARE AMOUNT" means the amount calculated in accordance with
      paragraph 3;

      "PROPOSED SALE DATE" means the date on which any Obligor proposes to sell
      any Loudeye Shares;

      "TRADING DAY" means a day on which NASDAQ is open for the settlement of
      trades in Loudeye Shares; and

      "VWAP" means the volume weighted average price of Loudeye Shares on NASDAQ
      for the thirty Trading Days immediately preceding the Proposed Sale Date.

2.    RESTRICTIONS ON SALE

      Subject to paragraph 7 of this schedule, but notwithstanding any other
      provisions of this Deed or the Offer Document, each Obligor agrees not to
      publicly sell, offer for sale, transfer or otherwise dispose of any
      Loudeye Shares issued in connection with the Offer, if the aggregate
      number of Loudeye Shares sold by all Obligors on any given Trading Day
      would exceed the Maximum Share Amount. At least two Business Days prior to
      any Proposed Sale Date, each Obligor (a "NOTIFYING OBLIGOR") shall notify
      the Purchaser regarding the number of Loudeye Shares it proposes to sell
      and the Proposed Sale Date. If the aggregate number of Loudeye Shares
      proposed to be sold by all Obligors on any given Proposed Sale Date would
      exceed the Maximum Share Amount, the Purchaser shall notify each such
      Notifying Obligor of the number of Loudeye Shares it may sell, which shall
      be pro rated amongst the Notifying Obligors based upon the number of
      Loudeye Shares each proposed to sell.

3.    CALCULATION OF MAXIMUM SHARE AMOUNT

      The following table sets out (expressed as a percentage of ADTV) the
      Maximum Share Amount which may be sold on any given trading day depending
      on the Average Daily Trading Price expressed (as a Percentage of VWAP).

<TABLE>
<CAPTION>
                                                              MAXIMUM SHARE AMOUNT WHICH MAY BE SOLD
AVERAGE DAILY TRADING PRICE EXPRESSED AS A                    ON ANY GIVEN TRADING DAY EXPRESSED AS A
          PERCENTAGE OF VWAP                                             PERCENTAGE OF ADTV
------------------------------------------                    ---------------------------------------
<S>                                                           <C>
Greater than 150%                                                             Up to 50%
>115% to 150%                                                                 Up to 35%
>110% to 115%                                                                 Up to 30%
>105% to 110%                                                                 Up to 25%
</TABLE>

                                       94

<PAGE>

<TABLE>
<S>                                                                           <C>
>100% to 105%                                                                 Up to 20%
>95% to 100%                                                                  Up to 15%
>90% to 95%                                                                   Up to 10%
85% to 90%                                                                    Up to 5%
Less than 85%                                                                 0%
</TABLE>

4.    TRANSFEREES OF SHARES

      Each Obligor will procure that any transferee acquiring Loudeye Shares
      from such Obligor prior to the date such shares have been registered under
      the U.S. Securities Act of 1933 and sold on NASDAQ shall agree to be bound
      by the foregoing orderly sales limitation.

5.    LEGENDS

      Each Obligor acknowledges and agrees that the Loudeye Shares issued to it
      in connection with the Offer, and any securities issued in respect of or
      in exchange for such shares will bear the following legend (or a legend
      with similar effect):

            THE SHARES EVIDENCED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
            TRANSFER RESTRICTIONS (INCLUDING SALES VOLUME LIMITATIONS) SET FORTH
            IN THAT CERTAIN DEED POLL OF WARRANTY AND INDEMNITY DATED AS OF 22
            JUNE, 2004, A COPY OF WHICH IS AVAILABLE FROM THE COMPANY UPON
            REQUEST.

6.    STOP TRANSFER INSTRUCTIONS

      Each Obligor agrees that the Purchaser shall issue `stop transfer'
      instructions to its stock transfer agent to ensure compliance with the
      trading restrictions described in this schedule.

7.    EXEMPT DISPOSALS

      The provisions of this schedule shall not apply with respect to the sale
      by the persons listed below of Loudeye Shares not to exceed the number of
      Loudeye Shares set out opposite their name::

<TABLE>
<CAPTION>
                                    NUMBER OF INITIAL LOUDEYE SHARES PERMITTED TO BE SOLD,
    OBLIGOR                         OFFERED FOR SALE, TRANSFERRED OR OTHERWISE DISPOSED OF
----------------                    ------------------------------------------------------
<S>                                 <C>
Peter Gabriel                                        458,188
Mike Large                                           217,037
Charles Grimsdale                                    728,518
John Grinham                                          51,684
Dave Shephard                                         49,159
Ed Averdieck                                          46,867
</TABLE>

                                       95

<PAGE>

<TABLE>
<S>                                                <C>
Christopher Pike                                      37,137
Totals:                                            1,588,590
</TABLE>

                                       96
<PAGE>

                SCHEDULE 14 : EMPLOYER NATIONAL INSURANCE LIMITS

<TABLE>
<CAPTION>
                             ASSUMED EMPLOYER
                            NATIONAL INSURANCE
EMPLOYEE                         AMOUNT
<S>                         <C>
Peter Gabriel               (pound) 42,307.63
Charles Grimsdale           (pound)104,709.31
Michael Large               (pound) 20,040.48
John Grinham                (pound)  4,786.47
David Shephard              (pound)  4,786.47
Edward Averdieck            (pound)  4,254.64
Christopher Pike            (pound)  3,988.73
Paul Summerfield            (pound)    974.42
Stanislas Hintzy            (pound) 10,048.53
Anke Fleischer              (pound)  8,541.25
Sally Clayton               (pound)  2,773.40
Deon Fourie                 (pound)  2,773.40
Paul Smith                  (pound)  2,411.65
Michael Jones               (pound)  1,205.82
Carlo Galassi               (pound)  1,909.22
James Routley               (pound)  1,823.85
Peter Helps                 (pound)  1,823.85
Steve Robbins               (pound)  1,607.77
Bruce Storrie               (pound)  1,607.77
Allan Rogers                (pound)  1,406.79
Phillip Shepherd            (pound)  1,205.82
Geoffrey Roberts            (pound)  1,205.82
Nicholas Swallow            (pound)  1,215.87
Andrew Avery                (pound)    361.75
Denis Geoghegan             (pound)    361.75
Margaret Davis              (pound)  1,738.40
Inderjeet Singh Tak         (pound)    803.88
Charlotte Bale              (pound)    803.88
Matthew Rigby               (pound)    803.88
Eric Munier                 (pound)  2,009.71
Joe Ballard                 (pound)  1,004.85
James Innes                 (pound)    602.91
Alistair Dutton             (pound)    602.91
Neil Elkins                 (pound)    602.91
Steve Morris                (pound)    321.55
Richard Cain                (pound)    241.16
Phillip Austin              (pound)    241.16
Peter Armstrong             (pound)    241.16
Andy Rich                   (pound)    241.16
Tim Swallow                 (pound)    241.16
Roger Cooper                (pound)    241.16
Neil Caddick                (pound)    241.16
Louise Cronin               (pound)    241.16
Suzanne Prestidge           (pound)    241.16
Robert Poulton              (pound)    241.16
Jenny Dack                  (pound)    241.16
</TABLE>

                                       97

<PAGE>

<TABLE>
<S>                         <C>
Jon Reynolds                (pound)         241.16
Pinky Shetty                (pound)         241.16
Stefan Vallbracht           (pound)         602.91
Sarah Laval                 (pound)         602.91
Letitia Massot              (pound)         602.91
Sergio DeCataldis           (pound)         602.91
Daniel Narayanan            (pound)         160.78
Lara Insull                 (pound)         160.78
Michael Simmonds            (pound)         160.78
Jon Pepper                  (pound)         160.78
Lee Jones                   (pound)         160.78
Paul Smeddles               (pound)         160.78
Sarah Creasy                (pound)         160.78
Menno Wiegeraad             (pound)         602.91
Albert Pastore              (pound)         562.72
Christoph Schick            (pound)       1,507.28
                            (pound)     246,772.43
</TABLE>

                                       98

<PAGE>

SIGNED AS A DEED by Charles Grimsdale        -----------------------------------

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

SIGNED AS A DEED by Peter Gabriel            -----------------------------------

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

SIGNED AS A DEED by Michael Large            -----------------------------------

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

SIGNED AS A DEED by Edward Averdieck         -----------------------------------

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

SIGNED AS A DEED by John Grinham             -----------------------------------

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

                                       99

<PAGE>

SIGNED AS A DEED by David Shephard           -----------------------------------

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

SIGNED AS A DEED by Christopher Pike         -----------------------------------

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

SIGNED AS A DEED by Susan Moule              -----------------------------------

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

SIGNED AS A DEED by
QUESTER CAPITAL MANAGEMENT LIMITED
in its capacity as manager of
QUESTER VENTURE PARTNERSHIP LLP
acting by

             , a director and                -----------------------------------

             , a director/secretary          -----------------------------------

SIGNED AS A DEED by

Quester VCT2 plc acting by

             , a director and                -----------------------------------

             , a director/secretary          -----------------------------------

                                      100

<PAGE>

SIGNED AS A DEED by

Quester VCT3 plc acting by

             , a director and                -----------------------------------

             , a director/secretary          -----------------------------------

SIGNED AS A DEED by

Quester VCT4 plc acting by

             , a director and                -----------------------------------

             , a director/secretary          -----------------------------------

SIGNED AS A DEED by

Investment Enterprise Partnership `NIF New
Technology Fund 99A' acting by

in the presence of:

-----------------------------------          -----------------------------------
Name:                                                       Authorised signatory
Address:

Occupation:

SIGNED AS A DEED by

Investment Enterprise Partnership `NIF New
Technology Fund 99B' acting by               -----------------------------------
                                                            Authorised signatory

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

                                      101

<PAGE>

SIGNED AS A DEED by

Investment Enterprise Partnership `NIF New
Technology Fund 2000/01' acting by           -----------------------------------
                                                            Authorised signatory

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

SIGNED AS A DEED by

Investment Enterprise Partnership `NIF New
Technology Fund 2000/02' acting by           -----------------------------------
                                                            Authorised signatory

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

SIGNED AS A DEED by

NIF Ventures Co. Limited acting by           -----------------------------------
                                                            Authorised signatory

in the presence of:

-----------------------------------
Name:
Address:

Occupation:

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00078-of-00352.parquet"}]]