Document:

<PAGE>

                                                                   EXHIBIT 10.60

                       ASSIGNMENT AND ASSUMPTION AGREEMENT

                This ASSIGNMENT AND ASSUMPTION AGREEMENT is entered into as of
this 16th day of January, 2003 (the "Assignment Effective Date"), by and between
Universal Music Group, Inc., a California corporation ("UMG"), and Geneva Media,
LLC, a Delaware limited liability company ("Geneva") (which is an affiliate of
Anderson Merchandisers, LP, a Texas limited partnership ("Anderson")) with
reference to that Option and Purchase Agreement, dated as of November 15, 2002
(as amended by that Amendment No. 1 to Option and Purchase Agreement dated as of
January 6, 2003 (the "Option Amendment"), the "Option Agreement"), by and
between UMG and Liquid Audio, Inc. ("Liquid"). Capitalized terms used herein and
not otherwise defined shall have the same meanings described to them in the
Option Agreement. UMG and Geneva shall be referred to herein as the "Parties".

                                   WITNESSTH:

                WHEREAS, subject to the terms and conditions set forth in the
Option Agreement, UMG has the right to assign its rights and obligations
thereunder to Anderson;

                WHEREAS, UMG has received a Trigger Event Notice from Liquid,
and UMG therefore has the right (but not the obligation) to exercise the option
described in the Option Agreement, on the terms and conditions set forth therein
(but has not done so); and

                WHEREAS, Liquid has previously consented to the assignment of
the Option Agreement to Anderson, and the consent of Liquid to this Agreement is
required to effectuate the assignment to Geneva hereunder;

                NOW, THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which are hereby confirmed and acknowledged, the parties
hereto agree as follows:

                        1.      UMG and Liquid hereby agree that references to
                Anderson in the Option Amendment will be deemed to be replaced
                with Geneva;

                        2.      Pursuant to the terms of this Agreement and the
                Option Agreement, UMG hereby irrevocably sells, transfers,
                conveys, assigns and delivers to Geneva, as of the Assignment
                Effective Date, all of UMG's rights and obligations to and under
                the Option Agreement. Each of the Parties represents that it has
                all necessary authority to enter into this Agreement and to
                effectuate the transactions contemplated herein. Notwithstanding
                the foregoing, the parties hereto acknowledge and agree that UMG
                retains each of its obligations under Paragraph 2(b) of the
                Option Amendment.

                        3.      Pursuant to the terms of this Agreement and the
                Option Agreement, Geneva hereby assumes and agrees that it is
                bound by all of UMG's obligations under the Option Agreement,
                and agrees to perform all of the obligations of UMG under the
                Option Agreement. Geneva does not hereby

<PAGE>

                assume and shall have no liability for any debt, liability or
                obligation of UMG of whatsoever kind or nature other than as
                specifically set forth herein or in the Option Agreement. Liquid
                shall be an express third party beneficiary of Geneva's
                assumption and other agreements in this Section 3.

                        4.      This Agreement and all of the provisions hereof
                shall be binding upon and insure to the benefit of the parties
                hereto and their respective successors and assigns.

                        5.      This Agreement shall be governed by and
                construed in accordance with the laws of the State of
                California.

<PAGE>

                IN WITNESS WHEREOF, the parties hereto have duly executed and
delivered this Agreement as of the day and year first above written.

                                    UNIVERSAL MUSIC GROUP, INC.

                                    By: /s/ David L. Ring
                                        --------------------------------------
                                        Name: David L. Ring
                                              --------------------------------
                                        Title: VP Bus Dev & Bus Affairs, eLabs
                                               -------------------------------

                                    GENEVA MEDIA, LLC

                                    By:   [Name], its
                                                      ------------------------

                                    By: /s/ Bill Lardie
                                        --------------------------------------
                                        Name: Bill Lardie
                                              --------------------------------
                                        Title: PRESIDENT
                                               -------------------------------

CONSENT AND AGREEMENT OF LIQUID AUDIO, INC.

Liquid hereby consents to the assignment by UMG of its rights and obligations
under the Option Agreement as set forth in the foregoing Agreement and agrees to
the terms and conditions as set forth in Section 1 and 2 of this Agreement only.
The undersigned is duly authorized to sign this consent and agreement on behalf
of Liquid.

LIQUID AUDIO, INC.

By:
   -------------------
Raymond A. Doig
Its: CEO

<PAGE>

                IN WITNESS WHEREOF, the parties hereto have duly executed and
delivered this Agreement as of the day and year first above written.

                                    UNIVERSAL MUSIC GROUP, INC.

                                    By:
                                        ------------------------------------
                                        Name:
                                              ------------------------------
                                        Title:
                                               -----------------------------

                                    GENEVA MEDIA, LLC

                                    By: [Name], its
                                                    ----------------------------

                                    By:
                                        ------------------------------------
                                        Name:
                                              ------------------------------
                                        Title:
                                               -----------------------------

CONSENT AND AGREEMENT OF LIQUID AUDIO, INC.

Liquid hereby consents to the assignment by UMG of its rights and obligations
under the Option Agreement as set forth in the foregoing Agreement and agrees to
the terms and conditions as set forth in Section 1 and 2 of this Agreement only.
The undersigned is duly authorized to sign this consent and agreement on behalf
of Liquid.

LIQUID AUDIO, INC.

By: /s/ Raymond A. Doig
   --------------------
Raymond A. Doig
Its: CEO<PAGE>

                                                                   EXHIBIT 10.61

                AMENDMENT NO. 2 TO OPTION AND PURCHASE AGREEMENT

                This Amendment No. 2, dated as of January 20, 2003, to the
Option and Purchase Agreement, dated as of November 15, 2002, as amended by that
certain Amendment No. 1 to Option and Purchase Agreement dated January 9, 2003,
(as such agreement may be amended, modified or supplemented from time to time,
the "Option Agreement"), is entered into by and between Liquid Audio, Inc., a
corporation organized under the laws of the state of Delaware ("Liquid"), and
Geneva Media, LLC, a limited liability company organized under the laws of the
state of Delaware ("Geneva"). Liquid and Geneva are sometimes referred to herein
as the "Parties" and individually referred to as a "Party." Capitalized terms
used by not otherwise defined herein shall have the meanings ascribed to them in
the Option Agreement.

                                   WITNESSETH:

                WHEREAS, on November 15, 2002, the Parties entered into the
Option Agreement setting forth the terms and conditions upon which Liquid
granted Universal Music Group, Inc. ("UMG") an option to acquire certain assets
as more particularly therein described.

                WHEREAS, as a result of Amendment No. 1 to Option and Purchase
Agreement and that certain Assignment and Assumption Agreement dated January 17,
2003, whereby UMG assigned certain of its right, title and interest in and to
the Option Agreement to Geneva, the Option is due to be exercised.

                WHEREAS, Geneva has proposed a further amendment to the Option
Agreement to include certain assets which were inadvertently omitted from the
description of the Service Assets, to clarify the transfer of the "Liquid Audio"
trademarks, and to adjust the Purchase Price, none of which amendments affect
the retained rights and obligations of UMG under the Option.

                NOW THEREFORE, for good and valuable consideration, the receipt
and sufficiency of which are hereby confirmed and acknowledged, the parties
hereto agree as follows:

        1.      Definition of Service Assets. The Service Assets defined in
                Section 6 shall include, and Schedule 6(a) is amended to
                include, the items described on Exhibit A to the Bill of Sale
                attached hereto and described in Section 3 hereof.
        2.      Purchase Price. Section 8 of the Option Agreement is amended to
                read as follows:

                   8.   Purchase Price. If UMG exercises the Option pursuant to
                        Section 3, the purchase price for the Service Assets and
                        all of Liquid's services in effecting the Transition
                        Plan shall be Three Million Two Hundred Thousand Dollars
                        ($3,200,000) (the "Purchase Price"). The Purchase

<PAGE>

                        Price shall be payable by UMG to Liquid on the Closing
                        Date. UMG shall have no right of set off or deductions
                        from the Purchase Price.

        3.      Amendment to Bill of Sale. The Bill of Sale in the form
                attached hereto as Exhibit 1 is substituted for Exhibit 9.1.1(b)
                of the Option.
        4.      No Other Changes. Except as expressly set forth above, all of
                the provisions of the Option Agreement shall remain unchanged
                and in full force and effect. This Amendment shall be binding on
                Liquid and Geneva only, and shall not affect the rights and
                obligations of UMG under the Option Agreement.

                IN WITNESS WHEREOF, the parties hereto have duly executed and
                delivered this Amendment as of this date.

                                    LIQUID AUDIO, INC.

                                    By: /s/ Raymond A. Doig
                                        Name: Raymond A. Doig
                                        Title: CEO

                                    GENEVA MEDIA, LLC
                                    Assignee of Universal Music Group, Inc.

                                    By: /s/ Bill Lardie
                                        Name: Bill Lardie
                                        Title: President

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00050-of-00352.parquet"}]]