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                                                                     EXHIBIT 4.2

                               [FORM OF WARRANT]

NEITHER THE ISSUANCE AND SALE OF THE SECURITIES REPRESENTED BY THIS CERTIFICATE
NOR THE SECURITIES INTO WHICH THESE SECURITIES ARE EXERCISEABLE HAVE BEEN
REGISTERED UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR APPLICABLE STATE
SECURITIES LAWS. THE SECURITIES MAY NOT BE OFFERED FOR SALE, SOLD, TRANSFERRED
OR ASSIGNED (I) IN THE ABSENCE OF (A) AN EFFECTIVE REGISTRATION STATEMENT FOR
THE SECURITIES UNDER THE SECURITIES ACT OF 1933, AS AMENDED, OR (B) AN OPINION
OF COUNSEL, IN A GENERALLY ACCEPTABLE FORM, THAT REGISTRATION IS NOT REQUIRED
UNDER SAID ACT OR (II) UNLESS SOLD PURSUANT TO RULE 144 OR RULE 144A UNDER SAID
ACT. NOTWITHSTANDING THE FOREGOING, THE SECURITIES MAY BE PLEDGED IN CONNECTION
WITH A BONA FIDE MARGIN ACCOUNT OR OTHER LOAN OR FINANCING ARRANGEMENT SECURED
BY THE SECURITIES.

                               ARTISTDIRECT, INC.

                        WARRANT TO PURCHASE COMMON STOCK

Warrant No.:__________
Number of Shares of Common Stock: [__________]
Date of Issuance: July 28, 2005 ("ISSUANCE DATE")

            ARTISTdirect, Inc., a Delaware corporation (the "COMPANY"), hereby
certifies that, for good and valuable consideration, the receipt and sufficiency
of which are hereby acknowledged, [______________], the registered holder hereof
or its permitted assigns (the "HOLDER"), is entitled, subject to the terms set
forth below, to purchase from the Company, at the Exercise Price (as defined
below) then in effect, upon surrender of this Warrant to Purchase Common Stock
(including any Warrants to Purchase Common Stock issued in exchange, transfer or
replacement hereof, the "WARRANT"), at any time or times on or after the date
hereof (the "INITIAL EXERCISABILITY DATE"), but not after 11:59 p.m., New York
Time, on the Expiration Date (as defined below), [________] fully paid
nonassessable shares of Common Stock (as defined below) (the "WARRANT SHARES").
Except as otherwise defined herein, capitalized terms in this Warrant shall have
the meanings set forth in Section 16. This Warrant is one of the Warrants to
purchase Common Stock (the "NPA WARRANTS") issued pursuant to Section 1 of that
certain Note and Warrant Purchase Agreement, dated as of July 28, 2005 (the
"SUBSCRIPTION DATE"), by and among the Company and the investors (the "BUYERS")
referred to therein (the "NOTE PURCHASE AGREEMENT").

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            1. EXERCISE OF WARRANT.

                  (a) Mechanics of Exercise. Subject to the terms and conditions
hereof (including, without limitation, the limitations set forth in Section
1(f)), this Warrant may be exercised by the Holder on any day on or after the
Initial Exercisability Date, in whole or in part, by (i) delivery of a written
notice, in the form attached hereto as Exhibit A (the "EXERCISE NOTICE"), of the
Holder's election to exercise this Warrant and (ii) (A) payment to the Company
of an amount equal to the applicable Exercise Price multiplied by the number of
Warrant Shares as to which this Warrant is being exercised (the "AGGREGATE
EXERCISE PRICE") in cash or wire transfer of immediately available funds or (B)
by notifying the Company that this Warrant is being exercised pursuant to a
Cashless Exercise (as defined in Section 1(d)). The Holder shall not be required
to deliver the original Warrant in order to effect an exercise hereunder.
Execution and delivery of the Exercise Notice with respect to less than all of
the Warrant Shares shall have the same effect as cancellation of the original
Warrant and issuance of a new Warrant evidencing the right to purchase the
remaining number of Warrant Shares. On or before the first Business Day
following the date on which the Company has received each of the Exercise Notice
and the Aggregate Exercise Price (or notice of a Cashless Exercise) (the
"EXERCISE DELIVERY DOCUMENTS"), the Company shall transmit by facsimile an
acknowledgment of confirmation of receipt of the Exercise Delivery Documents to
the Holder and the Company's transfer agent (the "TRANSFER AGENT"). On or before
the third (3rd) Business Day following the date on which the Company has
received all of the Exercise Delivery Documents (the "SHARE DELIVERY DATE"), the
Company shall (X) provided that the Transfer Agent is participating in The
Depository Trust Company ("DTC") Deposit Withdrawal Agent Commission Program
("DWAC"), credit such aggregate number of shares of Common Stock to which the
Holder is entitled pursuant to such exercise to the Holder's or its designee's
balance account with DTC through its DWAC, or (Y) if the Transfer Agent is not
participating in the DTC DWAC, issue and dispatch by overnight courier to the
address as specified in the Exercise Notice, a certificate, registered in the
Company's share register in the name of the Holder or its designee, for the
number of shares of Common Stock to which the Holder is entitled pursuant to
such exercise. Upon delivery of the Exercise Notice and Aggregate Exercise Price
referred to in clause (ii)(A) above or notification to the Company of a Cashless
Exercise referred to in Section 1(d), the Holder shall be deemed for all
corporate purposes to have become the holder of record of the Warrant Shares
with respect to which this Warrant has been exercised, irrespective of the date
of delivery of the certificates evidencing such Warrant Shares. If this Warrant
is submitted in connection with any exercise pursuant to this Section 1(a) and
the number of Warrant Shares represented by this Warrant submitted for exercise
is greater than the number of Warrant Shares being acquired upon an exercise,
then the Company shall as soon as practicable and in no event later than three
Business Days after any exercise and at its own expense, issue a new Warrant (in
accordance with Section 7(d)) representing the right to purchase the number of
Warrant Shares purchasable immediately prior to such exercise under this
Warrant, less the number of Warrant Shares with respect to which this Warrant is
exercised. No fractional shares of Common Stock are to be issued upon the
exercise of this Warrant, but rather the number of shares of Common Stock to be
issued shall be rounded up to the nearest whole number. The Company shall pay
any and all taxes which may be payable with respect to the issuance and delivery
of Warrant Shares upon exercise of this Warrant.

                  (b) Exercise Price. For purposes of this Warrant, "EXERCISE
PRICE" means $2.00, subject to adjustment as provided herein.

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                  (c) Company's Failure to Timely Deliver Securities. If the
Company shall fail for any reason or for no reason to issue to the Holder within
five (5) Business Days of receipt of the Exercise Delivery Documents, a
certificate for the number of shares of Common Stock to which the Holder is
entitled and register such shares of Common Stock on the Company's share
register or to credit the Holder's balance account with DTC for such number of
shares of Common Stock to which the Holder is entitled upon the Holder's
exercise of this Warrant, then, in addition to all other remedies available to
the Holder, the Company shall pay in cash to the Holder on each day after such
fifth (5th) Business Day that the issuance of such shares of Common Stock is not
timely effected an amount equal to 0.5% of the product of (A) the sum of the
number of shares of Common Stock not issued to the Holder on a timely basis and
to which the Holder is entitled and (B) the Closing Sale Price of the shares of
Common Stock on the trading day immediately preceding the last possible date
which the Company could have issued such shares of Common Stock to the Holder
without violating Section 1(a). In addition to the foregoing, if within three
(3) Trading Days after the Company's receipt of the facsimile copy of a Exercise
Notice, the Company shall fail to issue and deliver a certificate to the Holder
and register such shares of Common Stock on the Company's share register or
credit the Holder's balance account with DTC for the number of shares of Common
Stock to which the Holder is entitled upon such holder's exercise hereunder, and
if on or after such Trading Day the Holder purchases (in an open market
transaction or otherwise) shares of Common Stock to deliver in satisfaction of a
sale by the Holder of shares of Common Stock issuable upon such exercise that
the Holder anticipated receiving from the Company (a "BUY-IN"), then the Company
shall, within three (3) Business Days after the Holder's request and in the
Holder's discretion, either (i) pay cash to the Holder in an amount equal to the
Holder's total purchase price (including brokerage commissions, if any) for the
shares of Common Stock so purchased (the "BUY-IN PRICE"), at which point the
Company's obligation to deliver such certificate (and to issue such shares of
Common Stock) shall terminate, or (ii) promptly honor its obligation to deliver
to the Holder a certificate or certificates representing such shares of Common
Stock and pay cash to the Holder in an amount equal to the excess (if any) of
the Buy-In Price over the product of (A) such number of shares of Common Stock,
times (B) the Closing Bid Price on the date of exercise.

                  (d) Cashless Exercise. Notwithstanding anything contained
herein to the contrary, if at any time after the earlier of the Effectiveness
Deadline or Effective Date (as such terms are defined in the Registration Rights
Agreement), a Registration Statement (as defined in the Registration Rights
Agreement) covering the Warrant Shares that are the subject of the Exercise
Notice (the "Unavailable Warrant Shares") is not available for the resale of
such Unavailable Warrant Shares, the Holder may, in its sole discretion,
exercise this Warrant in whole or in part and, in lieu of making the cash
payment otherwise contemplated to be made to the Company upon such exercise in
payment of the Aggregate Exercise Price, elect instead to receive upon such
exercise the "Net Number" of shares of Common Stock determined according to the
following formula (a "Cashless Exercise"):

               Net Number = (A x B) - (A x C)
                            -----------------
                                    B

               purposes of the foregoing formula:

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               A= the total number of shares with respect to which this Warrant
               is then being exercised.

               B= the Closing Sale Price of the shares of Common Stock (as
               reported by Bloomberg) on the date immediately preceding the date
               of the Exercise Notice.

               C= the Exercise Price then in effect for the applicable Warrant
               Shares at the time of such exercise.

                  (e) Disputes. In the case of a dispute as to the determination
of the Exercise Price or the arithmetic calculation of the Warrant Shares, the
Company shall promptly issue to the Holder the number of Warrant Shares that are
not disputed and resolve such dispute in accordance with Section 13.

                  (f) Limitation on Exercise. Until the Stockholder Approval (as
defined in the Note Purchase Agreement) is obtained and a Certificate of
Amendment has been filed (which shall be filed promptly after receiving the
Stockholder Approval) and accepted by the Delaware Secretary of State, the
Holders may only exercise up to a total of 1,332,411 Warrant Shares, allocated
as follows: JMB Capital Partners, LP: 888,294 Warrant Shares; JMG Triton
Offshore Fund, Ltd.: 133,244 Warrant Shares; JMG Capital Partners, L.P.: 133,244
Warrant Shares; and CCM Master Qualified Fund, Ltd.: 177,659 Warrant Shares.

            2. ADJUSTMENT OF EXERCISE PRICE AND NUMBER OF WARRANT SHARES. The
Exercise Price and the number of Warrant Shares shall be adjusted from time to
time as follows:

                  (a) Adjustment upon Issuance of shares of Common Stock. If at
any time after the first anniversary of the Effective Date (as defined in the
Registration Rights Agreement), the Company issues or sells, or in accordance
with this Section 2(a) is deemed to have issued or sold, any shares of Common
Stock (including the issuance or sale of shares of Common Stock owned or held by
or for the account of the Company for a consideration per share, but excluding
shares of Common Stock deemed to have been issued or sold by the Company in
connection with any Excluded Security (as defined herein)) (the "NEW SECURITIES
ISSUANCE PRICE") less than a price (the "APPLICABLE PRICE") equal to $3.00 (the
foregoing a "DILUTIVE ISSUANCE"), then immediately after such Dilutive Issuance,
the Exercise Price then in effect shall be reduced, and in no event increased,
to an amount (rounded to the nearest cent) equal to the product of (A) the
Exercise Price in effect immediately prior to such Dilutive Issuance and (B) the
quotient determined by dividing (1) the sum of (I) the product derived by
multiplying the Exercise Price in effect immediately prior to such Dilutive
Issuance and the number of shares of Common Stock Deemed Outstanding immediately
prior to such Dilutive Issuance plus (II) the consideration, if any, received by
the Company upon such Dilutive Issuance, by (2) the product derived by
multiplying (I) the Conversion Price in effect immediately prior to such
Dilutive Issuance by (II) the number of shares of Common Stock Deemed
Outstanding immediately after such Dilutive Issuance. If and whenever prior to
the first anniversary of the Effective Date (as defined in the Registration
Right Agreement), the Company

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issues or sells, or in accordance with this Section 2 is deemed to have issued
or sold, any shares of Common Stock (including the issuance or sale of shares of
Common Stock owned or held by or for the account of the Company) for a New
Securities Issuance Price that is less than the Exercise Price in effect
immediately prior to such issue or sale or deemed issuance or sale, then
immediately after such issue or sale, the Exercise Price then in effect shall be
reduced to an amount equal to such New Securities Issuance Price. Upon each such
adjustment of the Exercise Price pursuant to the immediately preceding sentence,
the number of Warrant Shares shall be adjusted to the number of shares of Common
Stock determined by multiplying the Exercise Price in effect immediately prior
to such adjustment by the number of Warrant Shares acquirable upon exercise of
this Warrant immediately prior to such adjustment and dividing the product
thereof by the Exercise Price resulting from such adjustment. For purposes of
determining the adjusted Exercise Price under this Section 2(a), the following
shall be applicable:

                         (i)  Issuance of Options. If the Company in any manner
                         grants any Options and the lowest price per share for
                         which one share of Common Stock is issuable upon the
                         exercise of any such Option or upon conversion,
                         exercise or exchange of any Convertible Securities
                         issuable upon exercise of any such Option is less than
                         the Applicable Price or the Exercise Price in effect
                         immediately prior to such issue or sale, then such
                         share of Common Stock shall be deemed to be outstanding
                         and to have been issued and sold by the Company at the
                         time of the granting or sale of such Option for such
                         price per share. For purposes of this Section 2(a)(i),
                         the "lowest price per share for which one share of
                         Common Stock is issuable upon exercise of such Options
                         or upon conversion, exercise or exchange of such
                         Convertible Securities" shall be equal to the sum of
                         the lowest amounts of consideration (if any) received
                         or receivable by the Company with respect to any one
                         share of Common Stock upon the granting or sale of the
                         Option, upon exercise of the Option and upon
                         conversion, exercise or exchange of any Convertible
                         Security issuable upon exercise of such Option. No
                         further adjustment of the Exercise Price or number of
                         Warrant Shares shall be made upon the actual issuance
                         of such shares of Common Stock or of such Convertible
                         Securities upon the exercise of such Options or upon
                         the actual issuance of such shares of Common Stock upon
                         conversion, exercise or exchange of such Convertible
                         Securities.

                         (ii) Issuance of Convertible Securities. If the Company
                         in any manner issues or sells any Convertible
                         Securities and the lowest price per share for which one
                         share of Common Stock is issuable upon the conversion,
                         exercise or exchange thereof is less than the
                         Applicable Price or the Exercise Price in effect
                         immediately prior to such issue or sale, then such
                         share of Common Stock shall be deemed to be outstanding
                         and to have been issued and sold by the Company at the
                         time of the issuance or sale of such Convertible
                         Securities for such price per share. For the purposes
                         of this Section 2(a)(ii), the "lowest price per share
                         for which one share of Common Stock is issuable upon
                         the conversion, exercise or exchange"

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                         shall be equal to the sum of the lowest amounts of
                         consideration (if any) received or receivable by the
                         Company with respect to one share of Common Stock upon
                         the issuance or sale of the Convertible Security and
                         upon conversion, exercise or exchange of such
                         Convertible Security. No further adjustment of the
                         Exercise Price or number of Warrant Shares shall be
                         made upon the actual issuance of such shares of Common
                         Stock upon conversion, exercise or exchange of such
                         Convertible Securities, and if any such issue or sale
                         of such Convertible Securities is made upon exercise of
                         any Options for which adjustment of this Warrant has
                         been or is to be made pursuant to other provisions of
                         this Section 2(a), no further adjustment of the
                         Exercise Price or number of Warrant Shares shall be
                         made by reason of such issue or sale.

                         (iii) Change in Option Price or Rate of Conversion. If
                         the purchase price provided for in any Options, the
                         additional consideration, if any, payable upon the
                         issue, conversion, exercise or exchange of any
                         Convertible Securities, or the rate at which any
                         Convertible Securities are convertible into or
                         exercisable or exchangeable for shares of Common Stock
                         increases or decreases at any time, the Exercise Price
                         and the number of Warrant Shares in effect at the time
                         of such increase or decrease shall be adjusted to the
                         Exercise Price and the number of Warrant Shares which
                         would have been in effect at such time had such Options
                         or Convertible Securities provided for such increased
                         or decreased purchase price, additional consideration
                         or increased or decreased conversion rate, as the case
                         may be, at the time initially granted, issued or sold.
                         For purposes of this Section 2(a)(iii), if the terms of
                         any Option or Convertible Security that was outstanding
                         as of the date of issuance of this Warrant are
                         increased or decreased in the manner described in the
                         immediately preceding sentence, then such Option or
                         Convertible Security and the shares of Common Stock
                         deemed issuable upon exercise, conversion or exchange
                         thereof shall be deemed to have been issued as of the
                         date of such increase or decrease. No adjustment
                         pursuant to this Section 2(a)(iii) shall be made if
                         such adjustment would result in an increase of the
                         Exercise Price then in effect or a decrease in the
                         number of Warrant Shares.

                         (iv)  Calculation of Consideration Received. In case
                         any Option is issued in connection with the issue or
                         sale of other securities of the Company, together
                         comprising one integrated transaction in which no
                         specific consideration is allocated to such Options by
                         the parties thereto, the Options will be deemed to have
                         been issued for a consideration of $0.01. If any shares
                         of Common Stock, Options or Convertible Securities are
                         issued or sold or deemed to have been issued or sold
                         for cash, the consideration received therefor will be
                         deemed to be the net amount received by the Company
                         therefor. If any shares of Common Stock, Options or
                         Convertible Securities are issued or sold for a
                         consideration other than cash, the amount of such
                         consideration received by the

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                         Company will be the fair value of such consideration,
                         except where such consideration consists of securities,
                         in which case the amount of consideration received by
                         the Company will be the Closing Sale Price of such
                         security on the date of receipt. If any shares of
                         Common Stock, Options or Convertible Securities are
                         issued to the owners of the non-surviving entity in
                         connection with any merger in which the Company is the
                         surviving entity, the amount of consideration therefor
                         will be deemed to be the fair value of such portion of
                         the net assets and business of the non-surviving entity
                         as is attributable to such shares of Common Stock,
                         Options or Convertible Securities, as the case may be.
                         The fair value of any consideration other than cash or
                         securities will be determined jointly by the Company
                         and the Required Holders. If such parties are unable to
                         reach agreement within ten (10) days after the
                         occurrence of an event requiring valuation (the
                         "VALUATION EVENT"), the fair value of such
                         consideration will be determined within five (5)
                         Business Days after the tenth day following the
                         Valuation Event by an independent, reputable appraiser
                         jointly selected by the Company and the Required
                         Holders. The determination of such appraiser shall be
                         final and binding upon all parties absent manifest
                         error and the fees and expenses of such appraiser shall
                         be borne by the Company.

                         (v)  Record Date. If the Company takes a record of the
                         holders of shares of Common Stock for the purpose of
                         entitling them (A) to receive a dividend or other
                         distribution payable in shares of Common Stock, Options
                         or in Convertible Securities or (B) to subscribe for or
                         purchase shares of Common Stock, Options or Convertible
                         Securities, then such record date will be deemed to be
                         the date of the issue or sale of the shares of Common
                         Stock deemed to have been issued or sold upon the
                         declaration of such dividend or the making of such
                         other distribution or the date of the granting of such
                         right of subscription or purchase, as the case may be.

                  (b) Adjustment upon Subdivision or Combination of Common
Stock. If the Company at any time on or after the Subscription Date subdivides
(by any stock split, stock dividend, recapitalization or otherwise) one or more
classes of its outstanding shares of Common Stock into a greater number of
shares, the Exercise Price in effect immediately prior to such subdivision will
be proportionately reduced and the number of Warrant Shares will be
proportionately increased. If the Company at any time on or after the
Subscription Date combines (by combination, reverse stock split or otherwise)
one or more classes of its outstanding shares of Common Stock into a smaller
number of shares, the Exercise Price in effect immediately prior to such
combination will be proportionately increased and the number of Warrant Shares
will be proportionately decreased. Any adjustment under this Section 2(b) shall
become effective at the close of business on the date the subdivision or
combination becomes effective.

                  (c) Other Events. If any event occurs of the type contemplated
by the provisions of this Section 2 but not expressly provided for by such
provisions (including, without

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limitation, the granting of stock appreciation rights, phantom stock rights or
other rights with equity features), then the Company's Board of Directors will
make an appropriate adjustment in the Exercise Price and the number of Warrant
Shares so as to protect the rights of the Holder; provided that no such
adjustment pursuant to this Section 2(c) will increase the Exercise Price or
decrease the number of Warrant Shares as otherwise determined pursuant to this
Section 2.

            3. RIGHTS UPON DISTRIBUTION OF ASSETS. If the Company shall declare
or make any dividend or other distribution of its assets (or rights to acquire
its assets) to holders of shares of Common Stock, by way of return of capital or
otherwise (including, without limitation, any distribution of cash, stock or
other securities, property or options by way of a dividend, spin off,
reclassification, corporate rearrangement, scheme of arrangement or other
similar transaction) (a "DISTRIBUTION"), at any time after the issuance of this
Warrant, then, in each such case:

                  (a) any Exercise Price in effect immediately prior to the
close of business on the record date fixed for the determination of holders of
shares of Common Stock entitled to receive the Distribution shall be reduced,
effective as of the close of business on such record date, to a price determined
by multiplying such Exercise Price by a fraction of which (i) the numerator
shall be the Closing Bid Price of the shares of Common Stock on the trading day
immediately preceding such record date minus the value of the Distribution (as
determined in good faith by the Company's Board of Directors) applicable to one
share of Common Stock, and (ii) the denominator shall be the Closing Bid Price
of the shares of Common Stock on the trading day immediately preceding such
record date; and

                  (b) the number of Warrant Shares shall be increased to a
number of shares equal to the number of shares of Common Stock obtainable
immediately prior to the close of business on the record date fixed for the
determination of holders of shares of Common Stock entitled to receive the
Distribution multiplied by the reciprocal of the fraction set forth in the
immediately preceding paragraph (a); provided that in the event that the
Distribution is of shares of Common Stock (or common equity) ("OTHER SHARES OF
COMMON EQUITY") of a company whose shares of common equity are traded on a
national securities exchange or a national automated quotation system, then the
Holder may elect to receive a warrant to purchase Other Shares of Common Equity
in lieu of an increase in the number of Warrant Shares, the terms of which shall
be identical to those of this Warrant, except that such warrant shall be
exercisable into the number of shares of Other Shares of Common Equity that
would have been payable to the Holder pursuant to the Distribution had the
Holder exercised this Warrant immediately prior to such record date and with an
aggregate exercise price equal to the product of the amount by which the
exercise price of this Warrant was decreased with respect to the Distribution
pursuant to the terms of the immediately preceding paragraph (a) and the number
of Warrant Shares calculated in accordance with the first part of this paragraph
(b).

            4. PURCHASE RIGHTS; FUNDAMENTAL TRANSACTIONS.

                  (a) Purchase Rights. In addition to any adjustments pursuant
to Section 2 above, if at any time the Company grants, issues or sells any
Options, Convertible Securities or rights to purchase stock, warrants,
securities or other property pro rata to the record holders of

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any class of shares of Common Stock (the "PURCHASE RIGHTS"), then the Holder
will be entitled to acquire or receive, upon the terms applicable to such
Purchase Rights, the aggregate Purchase Rights which the Holder could have
acquired if the Holder had held the number of shares of Common Stock acquirable
upon complete exercise of this Warrant (without regard to any limitations on the
exercise of this Warrant) immediately before the date on which a record is taken
for the grant, issuance or sale of such Purchase Rights, or, if no such record
is taken, the date as of which the record holders of shares of Common Stock are
to be determined for the grant, issue or sale of such Purchase Rights.

                  (b) Fundamental Transactions. The Company shall not enter into
or be party to a Fundamental Transaction unless (i) the Successor Entity assumes
in writing all of the obligations of the Company under this Warrant and the
other Transaction Documents in accordance with the provisions of this Section
(4)(b) pursuant to written agreements in form and substance satisfactory to the
Required Holders and approved by the Required Holders prior to such Fundamental
Transaction, including agreements to deliver to each holder of Warrants in
exchange for such Warrants a security of the Successor Entity evidenced by a
written instrument substantially similar in form and substance to this Warrant,
including, without limitation, an adjusted exercise price equal to the value for
the shares of Common Stock reflected by the terms of such Fundamental
Transaction, and exercisable for a corresponding number of shares of capital
stock equivalent to the shares of Common Stock acquirable and receivable upon
exercise of this Warrant (without regard to any limitations on the exercise of
this Warrant) prior to such Fundamental Transaction, and satisfactory to the
Required Holders and (ii) the Successor Entity (including its Parent Entity) is
a publicly traded corporation whose common stock is quoted on or listed for
trading on an Eligible Market. Upon the occurrence of any Fundamental
Transaction, the Successor Entity shall succeed to, and be substituted for (so
that from and after the date of such Fundamental Transaction, the provisions of
this Warrant referring to the "Company" shall refer instead to the Successor
Entity), and may exercise every right and power of the Company and shall assume
all of the obligations of the Company under this Warrant with the same effect as
if such Successor Entity had been named as the Company herein. Upon consummation
of the Fundamental Transaction, the Successor Entity shall deliver to the Holder
confirmation that there shall be issued upon exercise of this Warrant at any
time after the consummation of the Fundamental Transaction, in lieu of the
shares of the Common Stock (or other securities, cash, assets or other property)
purchasable upon the exercise of the Warrant prior to such Fundamental
Transaction, such shares of stock, securities, cash, assets or any other
property whatsoever (including warrants or other purchase or subscription
rights) which the Holder would have been entitled to receive upon the happening
of such Fundamental Transaction had this Warrant been converted immediately
prior to such Fundamental Transaction, as adjusted in accordance with the
provisions of this Warrant. In addition to and not in substitution for any other
rights hereunder, prior to the consummation of any Fundamental Transaction
pursuant to which holders of shares of Common Stock are entitled to receive
securities or other assets with respect to or in exchange for shares of Common
Stock (a "CORPORATE EVENT"), the Company shall make appropriate provision to
insure that the Holder will thereafter have the right to receive upon an
exercise of this Warrant at any time after the consummation of the Fundamental
Transaction but prior to the Expiration Date, in lieu of the shares of the
Common Stock (or other securities, cash, assets or other property) purchasable
upon the exercise of the Warrant prior to such Fundamental Transaction, such
shares of stock, securities, cash, assets or any other property whatsoever
(including warrants or other purchase or subscription rights) which the Holder
would

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have been entitled to receive upon the happening of such Fundamental Transaction
had the Warrant been exercised immediately prior to such Fundamental
Transaction. Provision made pursuant to the preceding sentence shall be in a
form and substance reasonably satisfactory to the Required Holders. The
provisions of this Section shall apply similarly and equally to successive
Fundamental Transactions and Corporate Events and shall be applied without
regard to any limitations on the exercise of this Warrant.

            5. COMPANY'S RIGHT OF MANDATORY EXERCISE.

                  (a) Mandatory Exercise. If at any time following the Issuance
Date (i) a Mandatory Exercise Triggering Event occurs and (ii) on each day
during the period commencing on the Mandatory Exercise Notice Date and ending on
the Mandatory Exercise Date (each, as defined below), the Equity Conditions are
satisfied or waived in writing by the Holder, the Company shall have the right
to require the Holder to exercise all or any outstanding portion of this Warrant
as designated in the Mandatory Exercise Notice (the "MANDATORY EXERCISE AMOUNT")
into fully paid, validly issued and nonassessable shares of Common Stock in
accordance with Section 1 hereof (including, without limitation, the Holder's
right to exercise any portion of this Warrant pursuant to the cashless exercise
provisions as set forth in Section 1(d)) (a "MANDATORY EXERCISE"). The Company
may exercise its right to require exercise under this Section 5(a) by delivering
within not more than three (3) Trading Days following the end of such Mandatory
Exercise Measuring Period a written notice thereof by facsimile and overnight
courier to all, but not less than all, of the holders of the NPA Warrants and
the Transfer Agent (the "MANDATORY EXERCISE NOTICE" and the date all of the
holders received such notice is referred to as the "MANDATORY EXERCISE NOTICE
DATE"). The Mandatory Exercise Notice shall be irrevocable. Notwithstanding the
foregoing, the Company may only elect to pursue Mandatory Exercise
simultaneously with an election to pursue mandatory conversion of the
subordinated indebtedness and warrants issued pursuant to the Securities
Purchase Documents (as defined in the Note Purchase Agreement).

                  (b) Pro Rata Exercise Requirement. If the Company elects to
cause an exercise of all or any outstanding portion of this Warrant pursuant to
Section 5(a), then it must simultaneously take the same action with respect to
all of the NPA Warrants. The Mandatory Exercise Notice shall state the Trading
Day selected for the Mandatory Exercise (the "MANDATORY EXERCISE DATE") in
accordance with Section 5(a), which Trading Day shall be at least twenty (20)
Business Days but not more than sixty (60) Business Days following the Mandatory
Exercise Notice Date. If the Company has elected a Mandatory Exercise, the
mechanics of exercise set forth in Section 1 shall apply, to the extent
applicable, as if the Company and the Transfer Agent had received from the
Holder on the Mandatory Exercise Date a Mandatory Exercise Notice with respect
to the Mandatory Exercise Amount being exercised pursuant to the Mandatory
Exercise.

            6. NONCIRCUMVENTION. The Company hereby covenants and agrees that
the Company will not, by amendment of its Certificate of Incorporation, Bylaws
or through any reorganization, transfer of assets, consolidation, merger, scheme
of arrangement, dissolution, issue or sale of securities, or any other voluntary
action, avoid or seek to avoid the observance or performance of any of the terms
of this Warrant, and will at all times in good faith carry out all the
provisions of this Warrant and take all action as may be required to protect the
rights of the

                                       10

<PAGE>

Holder. Without limiting the generality of the foregoing, the Company (i) shall
not increase the par value of any shares of Common Stock receivable upon the
exercise of this Warrant above the Exercise Price then in effect, (ii) shall
take all such actions as may be necessary or appropriate in order that the
Company may validly and legally issue fully paid and nonassessable shares of
Common Stock upon the exercise of this Warrant, and (iii) shall, so long as any
of the NPA Warrants are outstanding, take all action necessary to reserve and
keep available out of its authorized and unissued shares of Common Stock
(including solicitation of Stockholder Approval), solely for the purpose of
effecting the exercise of the NPA Warrants, 130% of the number of shares of
Common Stock as shall from time to time be necessary to effect the exercise of
the NPA Warrants then outstanding (without regard to any limitations on
exercise).

            7. WARRANT HOLDER NOT DEEMED A STOCKHOLDER. Except as otherwise
specifically provided herein, the Holder, solely in such Person's capacity as a
holder of this Warrant, shall not be entitled to vote or receive dividends or be
deemed the holder of share capital of the Company for any purpose, nor shall
anything contained in this Warrant be construed to confer upon the Holder,
solely in such Person's capacity as the Holder of this Warrant, any of the
rights of a stockholder of the Company or any right to vote, give or withhold
consent to any corporate action (whether any reorganization, issue of stock,
reclassification of stock, consolidation, merger, conveyance or otherwise),
receive notice of meetings, receive dividends or subscription rights, or
otherwise, prior to the issuance to the Holder of the Warrant Shares which such
Person is then entitled to receive upon the due exercise of this Warrant. In
addition, nothing contained in this Warrant shall be construed as imposing any
liabilities on the Holder to purchase any securities (upon exercise of this
Warrant or otherwise) or as a stockholder of the Company, whether such
liabilities are asserted by the Company or by creditors of the Company.
Notwithstanding this Section 7, the Company shall provide the Holder with copies
of the same notices and other information given to the stockholders of the
Company generally, contemporaneously with the giving thereof to the
stockholders.

            8. REISSUANCE OF WARRANTS.

                  (a) Transfer of Warrant. If this Warrant is to be transferred,
the Holder shall surrender this Warrant to the Company, whereupon the Company
will forthwith issue and deliver upon the order of the Holder a new Warrant (in
accordance with Section 8(d)), registered as the Holder may request,
representing the right to purchase the number of Warrant Shares being
transferred by the Holder and, if less then the total number of Warrant Shares
then underlying this Warrant is being transferred, a new Warrant (in accordance
with Section 8(d)) to the Holder representing the right to purchase the number
of Warrant Shares not being transferred.

                  (b) Lost, Stolen or Mutilated Warrant. Upon receipt by the
Company of evidence reasonably satisfactory to the Company of the loss, theft,
destruction or mutilation of this Warrant, and, in the case of loss, theft or
destruction, of any indemnification undertaking by the Holder to the Company in
customary form and, in the case of mutilation, upon surrender and cancellation
of this Warrant, the Company shall execute and deliver to the Holder a new
Warrant (in accordance with Section 8(d)) representing the right to purchase the
Warrant Shares then underlying this Warrant.

                                       11

<PAGE>

                  (c) Exchangeable for Multiple Warrants. This Warrant is
exchangeable, upon the surrender hereof by the Holder at the principal office of
the Company, for a new Warrant or Warrants (in accordance with Section 8(d))
representing in the aggregate the right to purchase the number of Warrant Shares
then underlying this Warrant, and each such new Warrant will represent the right
to purchase such portion of such Warrant Shares as is designated by the Holder
at the time of such surrender; provided, however, that no Warrants for
fractional shares of Common Stock shall be given.

                  (d) Issuance of New Warrants. Whenever the Company is required
to issue a new Warrant pursuant to the terms of this Warrant, such new Warrant
(i) shall be of like tenor with this Warrant, (ii) shall represent, as indicated
on the face of such new Warrant, the right to purchase the Warrant Shares then
underlying this Warrant (or in the case of a new Warrant being issued pursuant
to Section 8(a) or Section 8(c), the Warrant Shares designated by the Holder
which, when added to the number of shares of Common Stock underlying the other
new Warrants issued in connection with such issuance, does not exceed the number
of Warrant Shares then underlying this Warrant), (iii) shall have an issuance
date, as indicated on the face of such new Warrant which is the same as the
Issuance Date, and (iv) shall have the same rights and conditions as this
Warrant.

            9. NOTICES. Whenever notice is required to be given under this
Warrant, unless otherwise provided herein, such notice shall be given in
accordance with Section 9(f) of the Note Purchase Agreement. The Company shall
provide the Holder with prompt written notice of all actions taken pursuant to
this Warrant, including in reasonable detail a description of such action and
the reason therefore. Without limiting the generality of the foregoing, the
Company will give written notice to the Holder (i) immediately upon any
adjustment of the Exercise Price, setting forth in reasonable detail, and
certifying, the calculation of such adjustment and (ii) at least fifteen (15)
days prior to the date on which the Company closes its books or takes a record
(A) with respect to any dividend or distribution upon the shares of Common
Stock, (B) with respect to any grants, issuances or sales of any Options,
Convertible Securities or rights to purchase stock, warrants, securities or
other property to holders of shares of Common Stock or (C) for determining
rights to vote with respect to any Fundamental Transaction, dissolution or
liquidation, provided in each case that such information shall be made known to
the public prior to or in conjunction with such notice being provided to the
Holder.

            10. AMENDMENT AND WAIVER. Except as otherwise provided herein, the
provisions of this Warrant may be amended and the Company may take any action
herein prohibited, or omit to perform any act herein required to be performed by
it, only if the Company has obtained the written consent of the Required
Holders; provided that no such action may increase the exercise price of any NPA
Warrants or decrease the number of shares or class of stock obtainable upon
exercise of any NPA Warrants without the written consent of the Holder. No such
amendment shall be effective to the extent that it applies to less than all of
the holders of the NPA Warrants then outstanding.

            11. GOVERNING LAW. This Warrant shall be governed by and construed
and enforced in accordance with, and all questions concerning the construction,
validity, interpretation and performance of this Warrant shall be governed by,
the internal laws of the State of New York, without giving effect to any choice
of law or conflict of law provision or rule

                                       12

<PAGE>

(whether of the State of New York or any other jurisdictions) that would cause
the application of the laws of any jurisdictions other than the State of New
York.

            12. CONSTRUCTION; HEADINGS. This Warrant shall be deemed to be
jointly drafted by the Company and all the Buyers and shall not be construed
against any person as the drafter hereof. The headings of this Warrant are for
convenience of reference and shall not form part of, or affect the
interpretation of, this Warrant.

            13. DISPUTE RESOLUTION. In the case of a dispute as to the
determination of the Exercise Price or the arithmetic calculation of the Warrant
Shares, the Company shall submit the disputed determinations or arithmetic
calculations via facsimile within two (2) Business Days of receipt of the
Exercise Notice giving rise to such dispute, as the case may be, to the Holder.
If the Holder and the Company are unable to agree upon such determination or
calculation of the Exercise Price or the Warrant Shares within three (3)
Business Days of such disputed determination or arithmetic calculation being
submitted to the Holder, then the Company shall, within two (2) Business Days
submit via facsimile (a) the disputed determination of the Exercise Price to an
independent, reputable investment bank selected by the Company and approved by
the Holder or (b) the disputed arithmetic calculation of the Warrant Shares to
the Company's independent, outside accountant. The Company shall cause at its
expense the investment bank or the accountant, as the case may be, to perform
the determinations or calculations and notify the Company and the Holder of the
results no later than ten (10) Business Days from the time it receives the
disputed determinations or calculations. Such investment bank's or accountant's
determination or calculation, as the case may be, shall be binding upon all
parties absent demonstrable error.

            14. REMEDIES, OTHER OBLIGATIONS, BREACHES AND INJUNCTIVE RELIEF. The
remedies provided in this Warrant shall be cumulative and in addition to all
other remedies available under this Warrant and the other Transaction Documents,
at law or in equity (including a decree of specific performance and/or other
injunctive relief), and nothing herein shall limit the right of the Holder right
to pursue actual damages for any failure by the Company to comply with the terms
of this Warrant. The Company acknowledges that a breach by it of its obligations
hereunder will cause irreparable harm to the Holder and that the remedy at law
for any such breach may be inadequate. The Company therefore agrees that, in the
event of any such breach or threatened breach, the holder of this Warrant shall
be entitled, in addition to all other available remedies, to an injunction
restraining any breach, without the necessity of showing economic loss and
without any bond or other security being required.

            15. TRANSFER. This Warrant may be offered for sale, sold,
transferred or assigned without the consent of the Company, except as may
otherwise be required by Section 4(f) of the Note Purchase Agreement.

            16. CERTAIN DEFINITIONS. For purposes of this Warrant, the following
terms shall have the following meanings:

                  (a) "APPROVED STOCK PLAN" means any employee benefit, option
or incentive plan which has been approved by the Board of Directors of the
Company, pursuant to

                                       13

<PAGE>

which the Company's securities may be issued to any employee, consultant,
officer or director for services provided to the Company.

                  (b) "BLOOMBERG" means Bloomberg Financial Markets.

                  (c) "BUSINESS DAY" means any day other than Saturday, Sunday
or other day on which commercial banks in The City of New York are authorized or
required by law to remain closed.

                  (d) "COMMON STOCK" means (i) the Company's shares of Common
Stock, par value $.01 per share, and (ii) any share capital into which such
Common Stock shall have been changed or any share capital resulting from a
reclassification of such Common Stock.

                  (e) "CLOSING BID PRICE" and "CLOSING SALE PRICE" means, for
any security as of any date, the last closing bid price and last closing trade
price, respectively, for such security on the Principal Market, as reported by
Bloomberg, or, if the Principal Market begins to operate on an extended hours
basis and does not designate the closing bid price or the closing trade price,
as the case may be, then the last bid price or last trade price, respectively,
of such security prior to 4:00:00 p.m., New York Time, as reported by Bloomberg,
or, if the Principal Market is not the principal securities exchange or trading
market for such security, the last closing bid price or last trade price,
respectively, of such security on the principal securities exchange or trading
market where such security is listed or traded as reported by Bloomberg, or if
the foregoing do not apply, the last closing bid price or last trade price,
respectively, of such security in the over-the-counter market on the electronic
bulletin board for such security as reported by Bloomberg, or, if no closing bid
price or last trade price, respectively, is reported for such security by
Bloomberg, the average of the bid prices, or the ask prices, respectively, of
any market makers for such security as reported in the "pink sheets" by Pink
Sheets LLC (formerly the National Quotation Bureau, Inc.). If the Closing Bid
Price or the Closing Sale Price cannot be calculated for a security on a
particular date on any of the foregoing bases, the Closing Bid Price or the
Closing Sale Price, as the case may be, of such security on such date shall be
the fair market value as mutually determined by the Company and the Holder. If
the Company and the Holder are unable to agree upon the fair market value of
such security, then such dispute shall be resolved pursuant to Section 13. All
such determinations to be appropriately adjusted for any stock dividend, stock
split, stock combination or other similar transaction during the applicable
calculation period.

                  (f) "CONVERTIBLE SECURITIES" means any stock or securities
(other than Options) directly or indirectly convertible into or exercisable or
exchangeable for shares of Common Stock.

                  (g) "EXCLUDED SECURITIES" means any shares of Common Stock
issued or issuable: (i) in connection with any Approved Stock Plan; (ii) upon
conversion, redemption or exchange of the subordinated indebtedness or warrants
issued pursuant to the Securities Purchase Documents (including any shares of
Common Stock issued as an interest payment pursuant to the Securities Purchase
Documents); (iii) pursuant to a bona fide firm commitment underwritten public
offering with a nationally recognized underwriter which generates gross proceeds
to the Company in excess of $25,000,000 (other than an "at-the-market offering"
as defined in Rule

                                       14

<PAGE>

415(a)(4) under the 1933 Act and "equity lines"); (iv) upon conversion of any
convertible security outstanding on the Subscription Date so long as the terms
of such securities are not thereafter amended, modified or changed; (v) to
employees, directors or consultants in the ordinary course of business in
consideration for services provided to the Company (to the extent the value of
the securities are based on fair market value as based on the Closing Sales
Price on the date of issuance) in an amount not to exceed an aggregate of
200,000 shares in any twelve (12) month period; and (vi) upon the issuance or
conversion of any security listed on Schedule A attached hereto.

                  (h) "ELIGIBLE MARKET" means the Principal Market, The New York
Stock Exchange, Inc., the American Stock Exchange, the Nasdaq National Market or
The Nasdaq SmallCap Market.

                  (i) "EQUITY CONDITIONS" means each of the following
conditions: (i) during the period beginning on the date that is three months
prior to the applicable date of determination and ending on and including the
applicable date of determination (the "EQUITY CONDITIONS MEASURING PERIOD"), the
Company shall have delivered shares of Common Stock upon any exercise or
conversion of the NPA Warrants or any subordinated indebtedness or warrants
issued pursuant to the Securities Purchase Documents (as defined in the Note
Purchase Agreement); (ii) on each day of the Equity Conditions Measuring Period,
the Common Stock shall be listed on the Principal Market or an Eligible Market
and delisting or suspension by such market or exchange shall not have been
threatened either (A) in writing by such market or exchange or (B) by falling
below the minimum listing maintenance requirements of such market or exchange;
(iii) during each day of the Equity Conditions Measuring Period, there shall not
have occurred (x) the public announcement of a pending, proposed or intended
Fundamental Transaction which has not been abandoned, terminated or consummated,
(y) an event of default on any indebtedness of the Company or (z) an event that
with the passage of time or giving of notice, and assuming it were not cured,
would constitute an event of default on any indebtedness of the Company; (iv) on
each day of the Equity Conditions Measuring Period, the registration statement
or registration statements required pursuant to the Registration Rights
Agreement shall be effective and available for the sale of all of the
Registrable Securities in accordance with the terms of the Registration Rights
Agreement; (v) on each day of the Equity Conditions Measuring Period and for the
thirty Trading Days thereafter, the registration statements required pursuant to
the Registration Rights Agreement shall be or shall be expected to be effective
and available for the sale of all of the Registrable Securities in accordance
with the terms of the Registration Rights Agreement; (vi) the Company otherwise
shall have been in material compliance with and shall not have breached (unless
subsequently cured by the Company prior to the first Trading Day of the
Mandatory Exercise Measuring Period), in any material respect, any material
provision, covenant, representation or warranty of the Transaction Documents (as
defined in the Note Purchase Agreement); and (vii) the Company shall not be in
violation of Section 3(d).

                  (j) "EXPIRATION DATE" means the date sixty months after the
Issuance Date or, if such date falls on a day other than a Business Day or on
which trading does not take place on the Principal Market (a "HOLIDAY"), the
next date that is not a Holiday.

                  (k) "FUNDAMENTAL TRANSACTION" means that the Company shall,
directly or indirectly, in one or more related transactions, (i) consolidate or
merge with or into (whether

                                       15

<PAGE>

or not the Company is the surviving corporation) another Person, or (ii) sell,
assign, transfer, convey or otherwise dispose of all or substantially all of the
properties or assets of the Company to another Person, or (iii) allow another
Person to make a purchase, tender or exchange offer that is accepted by the
holders of more than the 50% of either the outstanding shares of Common Stock
(not including any shares of Common Stock held by the Person or Persons making
or party to, or associated or affiliated with the Persons making or party to,
such purchase, tender or exchange offer), or (iv) consummate a stock purchase
agreement or other business combination (including, without limitation, a
reorganization, recapitalization, spin-off or scheme of arrangement) with
another Person whereby such other Person acquires more than the 50% of the
outstanding shares of Common Stock (not including any shares of Common Stock
held by the other Person or other Persons making or party to, or associated or
affiliated with the other Persons making or party to, such stock purchase
agreement or other business combination), or (v) reorganize, recapitalize or
reclassify its Common Stock.

                  (l) "MANDATORY EXERCISE TRIGGERING EVENT" means (A) the
Closing Sale Price of the Common Stock equals or exceeds $4.00 (subject to
appropriate adjustments for stock splits, stock dividends, stock combinations
and other similar transactions after the Issuance Date) for each of any fifteen
(15) consecutive Trading Days (the "MANDATORY EXERCISE MEASURING PERIOD") (with
a minimum trading volume of 200,000 shares of Common Stock on each such Trading
Day); and (B) the Notes (as defined in the Note Purchase Agreement), including
all principal and interest accrued and unpaid thereon have been paid in full and
are no longer outstanding.

                  (m) "OPTIONS" means any rights, warrants or options to
subscribe for or purchase shares of Common Stock or Convertible Securities.

                  (n) "PARENT ENTITY" of a Person means an entity that, directly
or indirectly, controls the applicable Person and whose common stock or
equivalent equity security is quoted or listed on an Eligible Market, or, if
there is more than one such Person or Parent Entity, the Person or Parent Entity
with the largest public market capitalization as of the date of consummation of
the Fundamental Transaction.

                  (o) "PERSON" means an individual, a limited liability company,
a partnership, a joint venture, a corporation, a trust, an unincorporated
organization, any other entity and a government or any department or agency
thereof.

                  (p) "PRINCIPAL MARKET" means the OTC Bulletin Board.

                  (q) "REGISTRATION RIGHTS AGREEMENT" means that certain
registration rights agreement by and among the Company and the Buyers.

                  (r) "REQUIRED HOLDERS" means the holders of the NPA Warrants
representing at least a majority of shares of Common Stock underlying the NPA
Warrants then outstanding.

                  (s) "SUCCESSOR ENTITY" means the Person (or, if so elected by
the Required Holders, the Parent Entity) formed by, resulting from or surviving
any Fundamental

                                       16

<PAGE>

Transaction or the Person (or, if so elected by the Required Holders, the Parent
Entity) with which such Fundamental Transaction shall have been entered into.

                  (t) "TRADING DAY" means any day on which the Common Stock is
traded on the Principal Market, or, if the Principal Market is not the principal
trading market for the Common Stock, then on the principal securities exchange
or securities market on which the Common Stock is then traded; provided that
"Trading Day" shall not include any day on which the Common Stock is scheduled
to trade on such exchange or market for less than 4.5 hours or any day that the
Common Stock is suspended from trading during the final hour of trading on such
exchange or market (or if such exchange or market does not designate in advance
the closing time of trading on such exchange or market, then during the hour
ending at 4:00:00 p.m., New York Time).

                            [SIGNATURE PAGE FOLLOWS]

                                       17

<PAGE>

     IN WITNESS WHEREOF, the Company has caused this Warrant to Purchase Common
Stock to be duly executed as of the Issuance Date set out above.

                                                 ARTISTDIRECT, INC.

                                                 By: __________________________
                                                 Name:
                                                 Title:

<PAGE>

                                                                       EXHIBIT A

                                 EXERCISE NOTICE

            TO BE EXECUTED BY THE REGISTERED HOLDER TO EXERCISE THIS
                        WARRANT TO PURCHASE COMMON STOCK

                               ARTISTDIRECT, INC.

     The undersigned holder hereby exercises the right to purchase
______________ of the shares of Common Stock ("WARRANT SHARES") of ARTISTdirect,
Inc., a Delaware corporation (the "COMPANY"), evidenced by the attached Warrant
to Purchase Common Stock (the "WARRANT"). Capitalized terms used herein and not
otherwise defined shall have the respective meanings set forth in the Warrant.

     1. Form of Exercise Price. The Holder intends that payment of the Exercise
Price shall be made as:

                    a "Cash Exercise" with respect to _________________ Warrant
                    Shares; and/or

                    a "Cashless Exercise" with respect to _________________
                    Warrant Shares.

     2. Payment of Exercise Price. In the event that the holder has elected a
Cash Exercise with respect to some or all of the Warrant Shares to be issued
pursuant hereto, the holder shall pay the Aggregate Exercise Price in the sum of
$___________________ to the Company in accordance with the terms of the Warrant.

     3. Delivery of Warrant Shares. The Company shall deliver to the holder
__________ Warrant Shares in accordance with the terms of the Warrant.

Date: _______________ __, ______

_________________________________
   Name of Registered Holder

By:      ________________________
         Name:
         Title:

                                      A-1

<PAGE>

                                 ACKNOWLEDGMENT

     The Company hereby acknowledges this Exercise Notice and hereby directs
American Stock Transfer & Trust Company to issue the above indicated number of
shares of Common Stock in accordance with the Transfer Agent Instructions dated
July 28, 2005 from the Company and acknowledged and agreed to by American Stock
Transfer & Trust Company.

                                     ARTISTDIRECT, INC.

                                     By: _____________________________________
                                           Name:
                                           Title:

                                      A-2

<PAGE>

                                   SCHEDULE A

<TABLE>
<CAPTION>
                                       EXERCISE PRICE  INVESTMENT AMT               PREWARRANTS FD  FULLY DILUTED
<S>                                    <C>             <C>             <C>          <C>             <C>
COMMON SHAREHOLDERS                                                     3,502,117                         9.5%
                                                                       ----------
OPTIONS
Current Directors/Management                                              302,370                         0.2%
                                                                           92,000                         0.2%
                                                                          259,659                         0.7%
                                                                          120,000                         0.3%
Employees (Non Directors/Management)                                      205,150                         0.6%
Subject to Cancellation                                                   320,000
                                                                        1,299,179
Employees/Artists/Directors                                               586,531
                                                                        1,885,710
Way out of money option                                                  (508,901)
Investor out of money options                                            (320,000)

TOTAL OPTIONS                                                           1,056,809                         2.9%
                                                                       ----------

TOTAL EXISTING OPTIONS & SHARES                                         4,558,926        17.5%

M&A Fee                                                $    1,564,000   1,109,032                        3.00%
Financing Capital Fee                                  $    1,530,000     987,097                         2.7%
                                                                       ----------
NEW SHARES                                                              2,096,129         8.1%

NEW SHARES /DEBT
CCM                                                    $   13,000,000   8,387,097
JFL                                                    $    1,500,000     967,742
Redwood                                                $    3,000,000   1,935,484
DKR Oasis                                              $    8,000,000   5,161,290
MediaDefender Mgt                                      $    4,500,000   2,903,226
                                                       --------------  ----------
                                                       $   30,000,000  19,354,839        74.4%          52.30%

PREWARRANT FULLY DILUTED                                               26,009,894

DEBT WARRANTS                            $   2.00      $   15,000,000   3,487,500
FINANCING FEE WARRANTS                   $   1.55                       1,516,935                        4.10%
NEW EQUITY WARRANTS                      $   1.55                       1,596,774                        4.32%
M&A FEE WARRANTS                                                          114,985                        0.31%
                                                                       ----------
PRE-MGT OPTIONS                                                        32,726,088

NEW MGT OPTIONS
Saaf                                     $   1.55                         200,000                         0.5%
Herrera                                  $   1.55                         200,000                         0.5%
Mgt & Others                             $   1.55                       3,878,098
                                                                       ----------
                                                                        4,278,098       13.07%             12%
                                                                                                         14.4%

                                                     FDILUTED SHARES   37,004,186
                                                                       ==========

Price per share                          $   1.55
</TABLE>

<TABLE>
<CAPTION>
                    TIME VESTING   PERFORMANCE             EXISTING        TOTAL
<S>                 <C>            <C>                     <C>           <C>
CEO                  1,045,000       1,708,098             259,659       3,012,757
CFO                    275,000         275,000             120,000         670,000
Outside Directors*     170,000                                             170,000
Directors               75,000                                              75,000
Others                 330,000                                             330,000
                     ---------
TOTAL                1,895,000       1,983,098             379,659

                    Total Pool       3,878,098
                              chk    3,878,098
</TABLE>

* EP = 85% of 60 day closing price beg. 30 days prior to closing.

                                      A-1<PAGE>

                                                                     EXHIBIT 4.3

                          REGISTRATION RIGHTS AGREEMENT

            REGISTRATION RIGHTS AGREEMENT (this "AGREEMENT"), dated as of July
28, 2005, by and among ARTISTdirect, Inc., a Delaware corporation, with
headquarters located at 10900 Wilshire Boulevard, Suite 1400, Los Angeles,
California 90024 (the "COMPANY"), and the undersigned buyers (each, a "BUYER",
and collectively, the "BUYERS").

            WHEREAS:

            A. In connection with the Note and Warrant Purchase Agreement by and
among the parties hereto of even date herewith (the "NOTE PURCHASE AGREEMENT"),
the Company has agreed, upon the terms and subject to the conditions set forth
in the Note Purchase Agreement, to issue and sell to each Buyer warrants (the
"WARRANTS"), which will be exercisable to purchase shares of the Company's
common stock, $0.01 par value per share (the "COMMON STOCK") (as exercised
collectively, the "WARRANT SHARES").

            B. To induce the Buyers to execute and deliver the Note Purchase
Agreement, the Company has agreed to provide certain registration rights under
the Securities Act of 1933, as amended, and the rules and regulations
thereunder, or any similar successor statute (collectively, the "1933 ACT"), and
applicable state securities laws.

            NOW, THEREFORE, in consideration of the premises and the mutual
covenants contained herein and other good and valuable consideration, the
receipt and sufficiency of which are hereby acknowledged, the Company and each
of the Buyers hereby agree as follows:

            1. Definitions.

            Capitalized terms used herein and not otherwise defined herein shall
have the respective meanings set forth in the Note Purchase Agreement. As used
in this Agreement, the following terms shall have the following meanings:

                  a. "BUSINESS DAY" means any day other than Saturday, Sunday or
any other day on which commercial banks in The City of New York are authorized
or required by law to remain closed.

                  b. "CLOSING DATE" shall have the meaning set forth in the Note
Purchase Agreement.

                  c. "EFFECTIVE DATE" means the date the Registration Statement
has been declared effective by the SEC.

                  d. "EFFECTIVENESS DEADLINE" means the date which is one
hundred eighty (180) days after the Closing Date.

                  e. "FILING DEADLINE" means the earlier of (i) one hundred ten
(110) days after the Closing Date and (ii) five (5) Business Days after the
later of (A) the date the Company files a Certificate of Amendment with the
Delaware Secretary of State (which shall be filed

<PAGE>

promptly after receiving the Stockholder Approval) or (B) the date the Company
files audited financial statements for MediaDefender, Inc. on a Form 8-K/A, as
required by the 1934 Act (as defined herein), which shall in no event be later
than seventy five (75) days after the MD Acquisition (as defined in the Note and
Warrant Purchase Agreement).

                  f. "INVESTOR" means a Buyer or any transferee or assignee
thereof to whom a Buyer assigns its rights under this Agreement and who agrees
to become bound by the provisions of this Agreement in accordance with Section 9
and any transferee or assignee thereof to whom a transferee or assignee assigns
its rights under this Agreement and who agrees to become bound by the provisions
of this Agreement in accordance with Section 9.

                  g. "PERSON" means an individual, a limited liability company,
a partnership, a joint venture, a corporation, a trust, an unincorporated
organization and a government or any department or agency thereof.

                  h. "REGISTER," "REGISTERED," and "REGISTRATION" refer to a
registration effected by preparing and filing one or more Registration
Statements (as defined below) in compliance with the 1933 Act and pursuant to
Rule 415 and the declaration or ordering of effectiveness of such Registration
Statement(s) by the SEC.

                  i. "REGISTRABLE SECURITIES" means (i) the Warrant Shares
issued or issuable upon exercise of the Warrants and (ii) any share capital of
the Company issued or issuable with respect to the Warrant Shares or the
Warrants as a result of any share split, share dividend, recapitalization,
exchange or similar event or otherwise, without regard to any limitations on
exercises of the Warrants.

                  j. "REGISTRATION STATEMENT" means a registration statement or
registration statements of the Company filed under the 1933 Act covering the
Registrable Securities.

                  k. "REQUIRED HOLDERS" means the holders representing at least
a majority of the Warrant Shares which may be issued upon exercise of the
Warrants; provided that shares of Common Stock which have been sold or otherwise
transferred pursuant to the Registration Statement shall not be included in the
calculation of Required Holders.

                  l. "REQUIRED REGISTRATION AMOUNT" means 130% of the sum of the
number of Warrant Shares issued and issuable pursuant to the Warrants as of the
trading day immediately preceding the applicable date of determination, subject
to adjustment as provided in Section 2(e), without regard to any limitations on
exercises of the Warrants.

                  m. "RULE 415" means Rule 415 under the 1933 Act or any
successor rule providing for offering securities on a continuous or delayed
basis.

                  n. "SEC" means the United States Securities and Exchange
Commission.

                                        2
<PAGE>

            2. Registration.

                  a. Mandatory Registration. The Company shall prepare, and, as
soon as practicable but in no event later than the Filing Deadline, file with
the SEC the Registration Statement on Form SB-2 covering the resale of (i) if
the Stockholder Approval (as defined in the Note Purchase Agreement) has not yet
been obtained, as least 1,332,411 shares of Common Stock; or (ii) if the
Stockholder Approval has been obtained and a Certificate of Amendment has been
filed (which shall be filed promptly after receiving the Stockholder Approval)
and accepted by the Delaware Secretary of State, all of the Registrable
Securities. In the event that Form SB-2 is unavailable for such a registration,
the Company shall use such other form as is available for such a registration on
another appropriate form reasonably acceptable to the Required Holders, subject
to the provisions of Section 2(d). The Registration Statement prepared pursuant
hereto shall register for resale at least the number of shares of Common Stock
equal to the Required Registration Amount (or such lesser amount provided for in
this Section 2(a)) determined as of the date the Registration Statement is
initially filed with the SEC. The Registration Statement shall contain (except
if otherwise directed by the Required Holders) the "Selling Shareholders" and
"Plan of Distribution" sections in substantially the forms attached hereto as
Exhibit B and Exhibit C. The Company shall use its best efforts to have the
Registration Statement declared effective by the SEC as soon as practicable, but
in no event later than the Effectiveness Deadline.

                  b. Allocation of Registrable Securities. The initial number of
Registrable Securities included in any Registration Statement and any increase
in the number of Registrable Securities included therein shall be allocated pro
rata among the Investors based on the number of Registrable Securities held by
each Investor at the time the Registration Statement covering such initial
number of Registrable Securities or increase thereof is declared effective by
the SEC. In the event that an Investor sells or otherwise transfers any of such
Investor's Registrable Securities pursuant to Section 9, each transferee shall
be allocated a pro rata portion of the then remaining number of Registrable
Securities included in such Registration Statement for such transferor. Any
shares of Common Stock included in a Registration Statement and which remain
allocated to any Person which ceases to hold any Registrable Securities covered
by such Registration Statement shall be allocated to the remaining Investors,
pro rata based on the number of Registrable Securities then held by such
Investors which are covered by such Registration Statement. In no event shall
the Company include any securities other than Registrable Securities and the
securities issued pursuant to the Securities Purchase Documents (as defined in
the Note Purchase Agreement) and Securities issued to Libra Securities, LLC in
connection with the transactions referenced in the Note Purchase Agreement on
any Registration Statement without the prior written consent of the Required
Holders.

                  c. Legal Counsel. Subject to Section 5 hereof, the Required
Holders shall have the right to select one legal counsel to review and oversee
any registration pursuant to this Section 2 ("LEGAL COUNSEL"), which shall be
Latham & Watkins LLP or such other counsel as thereafter designated by the
Required Holders. The Company and Legal Counsel shall reasonably cooperate with
each other in performing the Company's obligations under this Agreement.

                  d. Form S-3. The Company shall undertake to register the
Registrable Securities on Form S-3 as soon as such form is available, provided
that the Company shall

                                        3
<PAGE>

maintain the effectiveness of the Registration Statement then in effect until
such time as a Registration Statement on Form S-3 covering the Registrable
Securities has been declared effective by the SEC.

                  e. Sufficient Number of Shares Registered. In the event the
number of shares available under a Registration Statement filed pursuant to
Section 2(a) is insufficient to cover all of the Registrable Securities required
to be covered by such Registration Statement or an Investor's allocated portion
of the Registrable Securities pursuant to Section 2(b), the Company shall amend
the applicable Registration Statement, or file a new Registration Statement (on
the short form available therefor, if applicable), or both, so as to cover at
least the Required Registration Amount (or such lesser amount provided for in
Section 2(a)) as of the trading day immediately preceding the date of the filing
of such amendment or new Registration Statement, in each case, as soon as
practicable, but in any event not later than fifteen (15) days after the
necessity therefor arises. If the Registration Statement does not initially
cover all Registrable Securities due to a failure to obtain the Stockholder
Approval by the Filing Deadline, then the Company shall amend the applicable
Registration Statement, or file a new Registration Statement (on the short form
available therefore, if applicable), or both, so as to cover all Registrable
Securities by the date that is five (5) Business Days after receipt of the
Stockholder Approval. The Company shall use its best efforts to cause such
amendment and/or new Registration Statement to become effective as soon as
practicable following the filing thereof. For purposes of the foregoing
provision, the number of shares available under a Registration Statement shall
be deemed "insufficient to cover all of the Registrable Securities" if at any
time the number of shares of Common Stock available for resale under the
Registration Statement is less than the Required Registration Amount (or such
lesser amount provided for in Section 2(a)) as of such time. The calculation set
forth in the foregoing sentence shall be made without regard to any limitations
on the conversion of the Notes or the exercise of the Warrants and such
calculation shall assume that the Notes are then convertible into shares of
Common Stock at the then prevailing Conversion Rate (as defined in the Notes)
and that the Warrants are then exercisable for shares of Common Stock at the
then prevailing Exercise Price (as defined in the Warrants).

                  f. Effect of Failure to File and Obtain and Maintain
Effectiveness of Registration Statement. If (i) a Registration Statement
covering all of the Registrable Securities required to be filed by the Company
pursuant to this Agreement is (A) not filed with the SEC on or before the
respective Filing Deadline (a "FILING FAILURE") or (B) not declared effective by
the SEC on or before the respective Effectiveness Deadline (an "EFFECTIVENESS
FAILURE") or (ii) on any day after the Effective Date, sales of all of the
Registrable Securities required to be included on such Registration Statement
cannot be made (other than during an Allowable Grace Period (as defined in
Section 3(p)) pursuant to such Registration Statement (including, without
limitation, because of a failure to keep such Registration Statement effective,
to disclose such information as is necessary for sales to be made pursuant to
such Registration Statement or to register a sufficient number of shares of
Common Stock) (a "MAINTENANCE FAILURE") then, as partial relief for the damages
to any holder by reason of any such delay in or reduction of its ability to sell
the underlying shares of Common Stock (which remedy shall not be exclusive of
any other remedies available at law or in equity), the Company shall pay to each
holder of Registrable Securities relating to such Registration Statement an
amount in cash equal to one and one half percent (1.5%) of the aggregate
Purchase Price (as such term is defined in the Note Purchase Agreement)

                                        4
<PAGE>

of such Investor's Notes (as such term is defined in the Note Purchase
Agreement) on each of the following dates: (i) on the thirtieth (30th) day (pro
rated for periods totaling less than thirty (30) days) after the initial day of
a Filing Failure and every thirtieth (30th) day (pro rated for periods totaling
less than thirty (30) days) thereafter until such Filing Failure is cured; (ii)
on the thirtieth (30th) day (pro rated for periods totaling less than thirty
(30) days) after the initial day of an Effectiveness Failure and on every
thirtieth (30th) day (pro rated for periods totaling less than thirty (30) days)
thereafter until such Effectiveness Failure is cured; (iii) on the thirtieth
(30th) day (pro rated for periods totaling less than thirty (30) days) after the
initial day of a Maintenance Failure and on every thirtieth (30th) day (pro
rated for periods totaling less than thirty (30) days) thereafter until such
Maintenance Failure is cured. The payments to which a holder shall be entitled
pursuant to this Section 2(f) are referred to herein as "REGISTRATION DELAY
PAYMENTS." Registration Delay Payments shall be paid on the earlier of (I) the
last day of the calendar month during which such Registration Delay Payments are
incurred and (II) the third Business Day after the event or failure giving rise
to the Registration Delay Payments is cured. In the event the Company fails to
make Registration Delay Payments in a timely manner, such Registration Delay
Payments shall bear interest at the rate of one percent (1.0%) per month
(prorated for partial months) until paid in full.

            3. Related Obligations.

            At such time as the Company is obligated to file a Registration
Statement with the SEC pursuant to Section 2(a), 2(d) or 2(e), the Company will
use its best efforts to effect the registration of the Registrable Securities in
accordance with the intended method of disposition thereof and, pursuant
thereto, the Company shall have the following obligations:

                  a. The Company shall submit to the SEC, within two (2)
Business Days after the Company learns that no review of a particular
Registration Statement will be made by the staff of the SEC or that the staff
has no further comments on a particular Registration Statement, as the case may
be, a request for acceleration of effectiveness of such Registration Statement
to a time and date not later than forty-eight (48) hours after the submission of
such request. The Company shall keep each Registration Statement effective
pursuant to Rule 415 at all times until the earlier of (i) the date as of which
the Investors may sell all of the Registrable Securities covered by such
Registration Statement without restriction pursuant to Rule 144(k) (or any
successor thereto) promulgated under the 1933 Act or (ii) the date on which the
Investors shall have sold all of the Registrable Securities covered by such
Registration Statement (the "REGISTRATION PERIOD"). The Company shall ensure
that each Registration Statement (including any amendments or supplements
thereto and prospectuses contained therein) shall not contain any untrue
statement of a material fact or omit to state a material fact required to be
stated therein, or necessary to make the statements therein (in the case of
prospectuses, in the light of the circumstances in which they were made) not
misleading.

                  b. The Company shall prepare and file with the SEC such
amendments (including post-effective amendments) and supplements to a
Registration Statement and the prospectus used in connection with such
Registration Statement, which prospectus is to be filed pursuant to Rule 424
promulgated under the 1933 Act, as may be necessary to keep such Registration
Statement effective at all times during the Registration Period, and, during
such period, comply with the provisions of the 1933 Act with respect to the
disposition of all

                                        5
<PAGE>

Registrable Securities of the Company covered by such Registration Statement
until such time as all of such Registrable Securities shall have been disposed
of in accordance with the intended methods of disposition by the seller or
sellers thereof as set forth in such Registration Statement. In the case of
amendments and supplements to a Registration Statement which are required to be
filed pursuant to this Agreement (including pursuant to this Section 3(b)) by
reason of the Company filing a report on Form 10-QSB, Form 10-KSB or any
analogous report under the Securities Exchange Act of 1934, as amended (the
"1934 ACT"), the Company shall have incorporated such report by reference into
such Registration Statement, if applicable, or shall file such amendments or
supplements with the SEC prior to the opening of the next Business Day after the
1934 Act report is filed which created the requirement for the Company to amend
or supplement such Registration Statement.

                  c. The Company shall (A) permit Legal Counsel to review and
comment upon (i) a Registration Statement at least five (5) Business Days prior
to its filing with the SEC and (ii) all amendments and supplements to all
Registration Statements (except for Annual Reports on Form 10-KSB, Quarterly
Reports on Form 10-QSB, Current Reports on Form 8-K and any similar or successor
reports) within a reasonable number of days prior to their filing with the SEC,
and (B) not file any Registration Statement or amendment or supplement thereto
in a form to which Legal Counsel reasonably objects in writing. The Company
shall furnish to Legal Counsel, without charge, (i) copies of any correspondence
from the SEC or the staff of the SEC to the Company or its representatives
relating to any Registration Statement and any amendments thereto, (ii) promptly
after the same is prepared and filed with the SEC, one (1) copy of any
Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference, if
requested by an Investor, and all exhibits and (iii) upon the effectiveness of
any Registration Statement, a copy of the prospectus included in such
Registration Statement and all amendments and supplements thereto. The Company
shall reasonably cooperate with Legal Counsel in performing the Company's
obligations pursuant to this Section 3.

                  d. The Company shall furnish to each Investor whose
Registrable Securities are included in any Registration Statement, without
charge, (i) promptly after the same is prepared and filed with the SEC, a copy
of such Registration Statement and any amendment(s) thereto, including financial
statements and schedules, all documents incorporated therein by reference, if
requested by an Investor, all exhibits and each preliminary prospectus, (ii)
upon the effectiveness of any Registration Statement, a copy of the prospectus
included in such Registration Statement and all amendments and supplements
thereto (or such other number of copies as such Investor may reasonably request)
and (iii) such other documents, including copies of any preliminary or final
prospectus, as such Investor may reasonably request from time to time in order
to facilitate the disposition of the Registrable Securities owned by such
Investor.

                  e. The Company shall use its best efforts to (i) register and
qualify, unless an exemption from registration and qualification applies, the
resale by Investors of the Registrable Securities covered by a Registration
Statement under such other securities or "blue sky" laws of all applicable
jurisdictions in the United States, (ii) prepare and file in those
jurisdictions, such amendments (including post-effective amendments) and
supplements to such registrations and qualifications as may be necessary to
maintain the effectiveness thereof during the Registration Period, (iii) take
such other actions as may be necessary to maintain such

                                        6
<PAGE>

registrations and qualifications in effect at all times during the Registration
Period, and (iv) take all other actions reasonably necessary or advisable to
qualify the Registrable Securities for sale in such jurisdictions; provided,
however, that the Company shall not be required in connection therewith or as a
condition thereto to (x) qualify to do business in any jurisdiction where it
would not otherwise be required to qualify but for this Section 3(e), (y)
subject itself to general taxation in any such jurisdiction, or (z) file a
general consent to service of process in any such jurisdiction. The Company
shall promptly notify Legal Counsel and each Investor who holds Registrable
Securities of the receipt by the Company of any notification with respect to the
suspension of the registration or qualification of any of the Registrable
Securities for sale under the securities or "blue sky" laws of any jurisdiction
in the United States or its receipt of notice of the initiation or threatening
of any proceeding for such purpose.

                  f. The Company shall notify Legal Counsel and each Investor in
writing of the happening of any event, as promptly as practicable after becoming
aware of such event, as a result of which the prospectus included in a
Registration Statement, as then in effect, includes an untrue statement of a
material fact or omission to state a material fact required to be stated therein
or necessary to make the statements therein, in the light of the circumstances
under which they were made, not misleading (provided that in no event shall such
notice contain any material, nonpublic information), and, subject to Section
3(p), promptly prepare a supplement or amendment to such Registration Statement
to correct such untrue statement or omission, and deliver a copy of such
supplement or amendment to Legal Counsel and each Investor (or such other number
of copies as Legal Counsel or such Investor may reasonably request). The Company
shall also promptly notify Legal Counsel and each Investor in writing (i) when a
prospectus or any prospectus supplement or post-effective amendment has been
filed, and when a Registration Statement or any post-effective amendment has
become effective (notification of such effectiveness shall be delivered to Legal
Counsel and each Investor by facsimile on the same day of such effectiveness and
by overnight mail), (ii) of any request by the SEC for amendments or supplements
to a Registration Statement or related prospectus or related information, and
(iii) of the Company's reasonable determination that a post-effective amendment
to a Registration Statement would be appropriate.

                  g. The Company shall use its best efforts to prevent the
issuance of any stop order or other suspension of effectiveness of a
Registration Statement, or the suspension of the qualification of any of the
Registrable Securities for sale in any jurisdiction and, if such an order or
suspension is issued, to obtain the withdrawal of such order or suspension at
the earliest possible moment and to notify Legal Counsel and each Investor who
holds Registrable Securities being sold of the issuance of such order and the
resolution thereof or its receipt of notice of the initiation or threat of any
proceeding for such purpose.

                  h. The Company shall hold in confidence and not make any
disclosure of information concerning an Investor provided to the Company unless
(i) disclosure of such information is necessary to comply with federal or state
securities laws, (ii) the disclosure of such information is necessary to avoid
or correct a misstatement or omission in any Registration Statement, (iii) the
release of such information is ordered pursuant to a subpoena or other final,
non-appealable order from a court or governmental body of competent
jurisdiction, or (iv) such information has been made generally available to the
public other than by disclosure in violation of this Agreement or any other
agreement. The Company agrees that it shall, upon learning that

                                        7
<PAGE>

disclosure of such information concerning an Investor is sought in or by a court
or governmental body of competent jurisdiction or through other means, give
prompt written notice to such Investor and allow such Investor, at the
Investor's expense, to undertake appropriate action to prevent disclosure of, or
to obtain a protective order for, such information.

                  i. The Company shall use its best efforts to cause all of the
Registrable Securities covered by a Registration Statement to be listed on each
securities exchange or trading market (including, without limitation, The Nasdaq
SmallCap Market) on which securities of the same class or series issued by the
Company are then listed, if any, if the listing of such Registrable Securities
is then permitted under the rules of such exchange. The Company shall pay all
fees and expenses in connection with satisfying its obligation under this
Section 3(k).

                  j. The Company shall cooperate with the Investors who hold
Registrable Securities being offered and, to the extent applicable, facilitate
the timely preparation and delivery of certificates (not bearing any restrictive
legend) representing the Registrable Securities to be offered pursuant to a
Registration Statement and enable such certificates to be in such denominations
or amounts, as the case may be, as the Investors may reasonably request and
registered in such names as the Investor may request.

                  k. If requested by an Investor, the Company shall (i) as soon
as practicable incorporate in a prospectus supplement or post-effective
amendment such information as an Investor reasonably requests to be included
therein relating to the sale and distribution of Registrable Securities,
including, without limitation, information with respect to the number of
Registrable Securities being offered or sold, the purchase price being paid
therefor and any other terms of the offering of the Registrable Securities to be
sold in such offering; (ii) as soon as practicable make all required filings of
such prospectus supplement or post-effective amendment after being notified of
the matters to be incorporated in such prospectus supplement or post-effective
amendment; and (iii) as soon as practicable, supplement or make amendments to
any Registration Statement if reasonably requested by an Investor holding any
Registrable Securities to the effect of the foregoing.

                  l. The Company shall use its best efforts to cause the
Registrable Securities covered by a Registration Statement to be registered with
or approved by such other governmental agencies or authorities as may be
necessary to consummate the disposition of such Registrable Securities.

                  m. The Company shall make generally available to its security
holders as soon as practical, but not later than ninety (90) days after the
close of the period covered thereby, an earnings statement (in form complying
with, and in the manner provided by, the provisions of Rule 158 under the 1933
Act) covering a twelve-month period beginning not later than the first day of
the Company's fiscal quarter next following the effective date of a Registration
Statement.

                  n. The Company shall otherwise use its best efforts to comply
with all applicable rules and regulations of the SEC in connection with any
registration hereunder.

                  o. Within two (2) Business Days after a Registration Statement
which covers Registrable Securities is ordered effective by the SEC, the Company
shall deliver to the

                                        8
<PAGE>

transfer agent for such Registrable Securities (with copies to the Investors
whose Registrable Securities are included in such Registration Statement)
confirmation that such Registration Statement has been declared effective by the
SEC in substantially the form attached hereto as Exhibit A and shall cause legal
counsel for the Company to deliver to the transfer agent (if so requested) a
legal opinion with respect to the Registrable Securities in the form reasonably
acceptable to each of the transfer agent and legal counsel for the Company.

                  p. Notwithstanding anything to the contrary herein, at any
time after the Registration Statement has been declared effective by the SEC,
the Company may delay the disclosure of material, non-public information
concerning the Company the disclosure of which at the time is not, in the good
faith opinion of the Board of Directors of the Company and its counsel, in the
best interest of the Company and, in the opinion of counsel to the Company,
otherwise required (a "GRACE PERIOD"); provided, that the Company shall promptly
(i) notify the Investors in writing of the existence of material, non-public
information giving rise to a Grace Period (provided that in each notice the
Company will not disclose the content of such material, non-public information
to the Investors) and the date on which the Grace Period will begin, and (ii)
notify the Investors in writing of the date on which the Grace Period ends; and,
provided further, that no Grace Period shall exceed ten (10) consecutive days
and during any three hundred sixty five (365) day period such Grace Periods
shall not exceed an aggregate of thirty (30) days and the first day of any Grace
Period must be at least two (2) Business Days after the last day of any prior
Grace Period (each, an "ALLOWABLE GRACE PERIOD"). For purposes of determining
the length of a Grace Period above, the Grace Period shall begin on and include
the date the Investors receive the notice referred to in clause (i) and shall
end on and include the later of the date the Investors receive the notice
referred to in clause (ii) and the date referred to in such notice. The
provisions of Section 3(f) hereof shall not be applicable during the period of
any Allowable Grace Period. Upon expiration of the Grace Period, the Company
shall again be bound by the first sentence of Section 3(f) with respect to the
information giving rise thereto unless such material, non-public information is
no longer applicable. Notwithstanding anything to the contrary, the Company
shall cause its transfer agent to deliver unlegended shares of Common Stock to a
transferee of an Investor in accordance with the terms of the Note Purchase
Agreement in connection with any sale of Registrable Securities with respect to
which an Investor has entered into a contract for sale, and delivered a copy of
the prospectus included as part of the applicable Registration Statement, prior
to the Investor's receipt of the notice of a Grace Period and for which the
Investor has not yet settled.

            4. Obligations of the Investors.

                  a. Within five (5) Business Days of a written request by the
Company (which request shall be made a sufficient period of time prior to the
first anticipated filing date of the Registration Statement), each Investor
agrees to furnish the Company with a completed questionnaire in the form
attached hereto as Exhibit D (the "SELLING STOCKHOLDER QUESTIONNAIRE"). It shall
be a condition precedent to the obligations of the Company to complete the
registration pursuant to this Agreement with respect to the Registrable
Securities of a particular Investor that such Investor shall furnish to the
Company a completed Selling Stockholder Questionnaire and any other information
regarding itself as shall be reasonably required to effect the effectiveness of
the registration of such Registrable Securities and shall

                                        9
<PAGE>

execute such documents in connection with such registration as the Company may
reasonably request.

                  b. Each Investor, by such Investor's acceptance of the
Registrable Securities, agrees to cooperate with the Company as reasonably
requested by the Company in connection with the preparation and filing of any
Registration Statement hereunder, unless such Investor has notified the Company
in writing of such Investor's election to exclude all of such Investor's
Registrable Securities from such Registration Statement.

                  c. Each Investor agrees that, upon receipt of any notice from
the Company of the happening of any event of the kind described in Section 3(g)
or the first sentence of Section 3(f), such Investor will immediately
discontinue disposition of Registrable Securities pursuant to any Registration
Statement(s) covering such Registrable Securities until such Investor's receipt
of the copies of the supplemented or amended prospectus or notice, as
applicable, contemplated by Section 3(g) or the first sentence of Section 3(f)
or receipt of notice that no supplement or amendment is required.
Notwithstanding anything to the contrary, the Company shall cause its transfer
agent to deliver unlegended shares of Common Stock to a transferee of an
Investor in accordance with the terms of the Note Purchase Agreement in
connection with any sale of Registrable Securities with respect to which an
Investor has entered into a contract for sale prior to the Investor's receipt of
a notice from the Company of the happening of any event of the kind described in
Section 3(g) or the first sentence of Section 3(f) and for which the Investor
has not yet settled.

                  d. Each Investor covenants and agrees that it will comply with
the prospectus delivery requirements of the 1933 Act as applicable to it in
connection with sales of Registrable Securities pursuant to the Registration
Statement.

            5. Expenses of Registration.

            All reasonable expenses, other than underwriting discounts and
commissions for all Investors in the aggregate (if applicable), incurred in
connection with registrations, filings or qualifications pursuant to Sections 2
and 3, including, without limitation, all registration, listing and
qualifications fees, printers and accounting fees, and fees and disbursements of
counsel for the Company shall be paid by the Company. The Company shall also
reimburse the Investors for the fees and disbursements of Legal Counsel in
connection with registration, filing or qualification pursuant to this Agreement
which amount shall be limited to $15,000.

            6. Indemnification.

            In the event any Registrable Securities are included in a
Registration Statement under this Agreement:

                  a. To the fullest extent permitted by law, the Company will,
and hereby does, indemnify, hold harmless and defend each Investor, the
directors, officers, members, partners, employees, agents, representatives of,
and each Person, if any, who controls any Investor within the meaning of the
1933 Act or the 1934 Act (each, an "INDEMNIFIED PERSON"), against any losses,
claims, damages, liabilities, judgments, fines, penalties, charges, costs,
reasonable attorneys' fees, amounts paid in settlement or expenses, joint or
several, (collectively,

                                       10
<PAGE>

"CLAIMS") incurred in investigating, preparing or defending any action, claim,
suit, inquiry, proceeding, investigation or appeal, taken from the foregoing by
or before any court or governmental, administrative or other regulatory agency
or body or the SEC, whether pending or threatened, whether or not an indemnified
party is or may be a party thereto ("INDEMNIFIED DAMAGES"), to which any of them
may become subject insofar as such Claims (or actions or proceedings, whether
commenced or threatened, in respect thereof) arise out of or are based upon: (i)
any untrue statement or alleged untrue statement of a material fact in a
Registration Statement or any post-effective amendment thereto or in any filing
made in connection with the qualification of the offering under the securities
or other "blue sky" laws of any jurisdiction in which Registrable Securities are
offered ("BLUE SKY FILING"), or the omission or alleged omission to state a
material fact required to be stated therein or necessary to make the statements
therein not misleading, (ii) any untrue statement or alleged untrue statement of
a material fact contained in any preliminary prospectus if used prior to the
effective date of such Registration Statement, or contained in the final
prospectus (as amended or supplemented, if the Company files any amendment
thereof or supplement thereto with the SEC) or the omission or alleged omission
to state therein any material fact necessary to make the statements made
therein, in the light of the circumstances under which the statements therein
were made, not misleading, (iii) any violation or alleged violation by the
Company of the 1933 Act, the 1934 Act, any other law, including, without
limitation, any state securities law, or any rule or regulation thereunder
relating to the offer or sale of the Registrable Securities pursuant to a
Registration Statement or (iv) any violation of this Agreement (the matters in
the foregoing clauses (i) through (iv) being, collectively, "VIOLATIONS").
Subject to Section 6(c), the Company shall reimburse the Indemnified Persons,
promptly as such reasonable expenses are incurred and are due and payable, for
any legal fees or other reasonable expenses incurred by them in connection with
investigating or defending any such Claim. Notwithstanding anything to the
contrary contained herein, the indemnification agreement contained in this
Section 6(a): (i) shall not apply to a Claim by an Indemnified Person arising
out of or based upon a Violation which occurs in reliance upon and in conformity
with information furnished in writing to the Company by such Indemnified Person
for such Indemnified Person expressly for use in connection with the preparation
of the Registration Statement or any such amendment thereof or supplement
thereto, if such Registration Statement was timely made available by the Company
pursuant to Section 3(d); (ii) with respect to any preliminary prospectus, shall
not inure to the benefit of any such Person (or to the benefit of any Person
controlling such Person) from whom the Person asserting any such Claim purchased
the Registrable Securities that are the subject thereof if the untrue statement
or omission of material fact contained in the preliminary prospectus was
corrected in the prospectus, as then amended or supplemented, if such prospectus
was timely made available by the Company pursuant to Section 3(d), and the
Indemnified Person was promptly advised in writing not to use the incorrect
prospectus prior to the use giving rise to a violation and such Indemnified
Person, notwithstanding such advice, used it or failed to deliver the correct
prospectus as required by the 1933 Act and such correct prospectus was timely
made available by the Company pursuant to Section 3(d); (iii) shall not be
available to the extent such Claim is based on a failure of the Investor to
comply with its obligations pursuant to Section 4(d) above; and (iv) shall not
apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of the Company, which consent shall not be
unreasonably withheld or delayed. Such indemnity shall remain in full force and
effect regardless of any

                                       11
<PAGE>

investigation made by or on behalf of the Indemnified Person and shall survive
the transfer of the Registrable Securities by the Investors pursuant to Section
9.

                  b. In connection with any Registration Statement in which an
Investor is participating, each such Investor agrees to severally and not
jointly indemnify, hold harmless and defend, to the same extent and in the same
manner as is set forth in Section 6(a), the Company, each of its directors, each
of its officers who signs the Registration Statement and each Person, if any,
who controls the Company within the meaning of the 1933 Act or the 1934 Act
(each, an "INDEMNIFIED PARTY"), against any Claim or Indemnified Damages to
which any of them may become subject, under the 1933 Act, the 1934 Act or
otherwise, insofar as such Claim or Indemnified 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 written
information furnished to the Company by such Investor expressly for use in
connection with such Registration Statement; and, subject to Section 6(c), such
Investor will reimburse any legal or other expenses reasonably incurred by an
Indemnified Party in connection with investigating or defending any such Claim;
provided, however, that the indemnity agreement contained in this Section 6(b)
and the agreement with respect to contribution contained in Section 7 shall not
apply to amounts paid in settlement of any Claim if such settlement is effected
without the prior written consent of such Investor, which consent shall not be
unreasonably withheld or delayed; provided, further, however, that the Investor
shall be liable under this Section 6(b) for only that amount of a Claim or
Indemnified Damages as does not exceed the net proceeds to such Investor as a
result of the sale of Registrable Securities pursuant to such Registration
Statement. Such indemnity shall remain in full force and effect regardless of
any investigation made by or on behalf of such Indemnified Party and shall
survive the transfer of the Registrable Securities by the Investors pursuant to
Section 9. Notwithstanding anything to the contrary contained herein, the
indemnification agreement contained in this Section 6(b) with respect to any
preliminary prospectus shall not inure to the benefit of any Indemnified Party
if the untrue statement or omission of material fact contained in the
preliminary prospectus was corrected on a timely basis in the prospectus, as
then amended or supplemented.

                  c. Promptly after receipt by an Indemnified Person or
Indemnified Party under this Section 6 of notice of the commencement of any
action or proceeding (including any governmental action or proceeding) involving
a Claim, such Indemnified Person or Indemnified Party shall, if a Claim in
respect thereof is to be made against any indemnifying party under this Section
6, 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 control of the defense thereof
with counsel mutually satisfactory to the indemnifying party and the Indemnified
Person or the Indemnified Party, as the case may be; provided, however, that an
Indemnified Person or Indemnified Party shall have the right to retain its own
counsel with the fees and expenses of not more than one (1) counsel for such
Indemnified Person or Indemnified Party to be paid by the indemnifying party,
if, in the reasonable opinion of counsel retained by the indemnifying party, the
representation by such counsel of the Indemnified Person or Indemnified Party
and the indemnifying party would be inappropriate due to actual or potential
differing interests between such Indemnified Person or Indemnified Party and any
other party represented by such counsel in such proceeding. In the case of an
Indemnified Person, legal counsel referred to in the immediately preceding
sentence shall be selected by the Investors

                                       12
<PAGE>

holding at least a majority in interest of the Registrable Securities included
in the Registration Statement to which the Claim relates. The Indemnified Party
or Indemnified Person shall cooperate fully with the indemnifying party in
connection with any negotiation or defense of any such action or Claim by the
indemnifying party and shall furnish to the indemnifying party all information
reasonably available to the Indemnified Party or Indemnified Person which
relates to such action or Claim. The indemnifying party shall keep the
Indemnified Party or Indemnified Person reasonably apprised at all times as to
the status of the defense or any settlement negotiations with respect thereto.
No indemnifying party shall be liable for any settlement of any action, claim or
proceeding effected without its prior written consent, provided, however, that
the indemnifying party shall not unreasonably withhold, delay or condition its
consent. No indemnifying party shall, without the prior written consent of the
Indemnified Party or Indemnified Person, consent to entry of any judgment or
enter into any settlement or other compromise which does not include as an
unconditional term thereof the giving by the claimant or plaintiff to such
Indemnified Party or Indemnified Person of a release from all liability in
respect to such Claim or litigation. Following indemnification as provided for
hereunder, the indemnifying party shall be subrogated to all rights of the
Indemnified Party or Indemnified Person with respect to all third parties, firms
or corporations relating to the matter for which indemnification has been made.
The failure to deliver written notice to the indemnifying party within a
reasonable time of the commencement of any such action shall not relieve such
indemnifying party of any liability to the Indemnified Person or Indemnified
Party under this Section 6, except to the extent that the indemnifying party is
prejudiced in its ability to defend such action.

                  d. The indemnification required by this Section 6 shall be
made by periodic payments of the amount thereof during the course of the
investigation or defense, as and when bills are received or Indemnified Damages
are incurred.

                  e. The indemnity agreements contained herein shall be in
addition to (i) any cause of action or similar right of the Indemnified Party or
Indemnified Person against the indemnifying party or others, and (ii) any
liabilities the indemnifying party may be subject to pursuant to the law.

            7. Contribution.

            To the extent any indemnification by an indemnifying party is
prohibited or limited by law, the indemnifying party agrees to make the maximum
contribution with respect to any amounts for which it would otherwise be liable
under Section 6 to the fullest extent permitted by law; provided, however, that:
(i) no Person involved in the sale of Registrable Securities which Person is
guilty of fraudulent misrepresentation (within the meaning of Section 11(f) of
the 1933 Act) in connection with such sale shall be entitled to contribution
from any Person involved in such sale of Registrable Securities who was not
guilty of fraudulent misrepresentation; and (ii) contribution by any seller of
Registrable Securities shall be limited in amount to the net amount of proceeds
received by such seller from the sale of such Registrable Securities pursuant to
such Registration Statement.

                                       13
<PAGE>

            8. Reports Under the 1934 Act.

            With a view to making available to the Investors the benefits of
Rule 144 promulgated under the 1933 Act or any other similar rule or regulation
of the SEC that may at any time permit the Investors to sell securities of the
Company to the public without registration ("RULE 144"), the Company agrees to:

                  a. make and keep public information available, as those terms
are understood and defined in Rule 144;

                  b. file with the SEC in a timely manner (or obtain extensions
in respect thereto and file within the applicable period) all reports and other
documents required of the Company under the 1933 Act and the 1934 Act so long as
the Company remains subject to such requirements and the filing of such reports
and other documents is required for the applicable provisions of Rule 144; and

                  c. furnish to each Investor so long as such Investor owns
Registrable Securities, promptly upon request, (i) a written statement by the
Company, if true, that it has complied with the reporting requirements of Rule
144, the 1933 Act and the 1934 Act, (ii) a copy of the most recent annual report
of the Company and such other reports and documents so filed by the Company, and
(iii) such other information as may be reasonably requested to permit the
Investors to sell such securities pursuant to Rule 144 without registration.

            9. Assignment of Registration Rights.

            The rights under this Agreement shall be automatically assignable by
the Investors to any transferee of at least $10,000 (or such remaining balance
owned by such Investor if less than $10,000) worth of Registrable Securities if:
(i) the Investor agrees in writing with the transferee or assignee to assign
such rights, and a copy of such agreement is furnished to the Company within a
reasonable time after such assignment; (ii) the Company is, within a reasonable
time after such transfer or assignment, furnished with written notice of (a) the
name and address of such transferee or assignee, and (b) the securities with
respect to which such registration rights are being transferred or assigned;
(iii) immediately following such transfer or assignment the further disposition
of such securities by the transferee or assignee is restricted under the 1933
Act and applicable state securities laws; (iv) at or before the time the Company
receives the written notice contemplated by clause (ii) of this sentence the
transferee or assignee agrees in writing with the Company to be bound by all of
the provisions contained herein; and (v) such transfer shall have been made in
accordance with the applicable requirements of the Note Purchase Agreement.

            10. Amendment of Registration Rights.

            Provisions of this Agreement may be amended and the observance
thereof may be waived (either generally or in a particular instance and either
retroactively or prospectively), only with the written consent of the Company
and the Required Holders. Any amendment or waiver effected in accordance with
this Section 10 shall be binding upon each Investor and the Company. No such
amendment shall be effective to the extent that it applies to less than all of
the holders of the Registrable Securities. No consideration shall be offered or
paid to any Person

                                       14
<PAGE>

to amend or consent to a waiver or modification of any provision of any of this
Agreement unless the same consideration also is offered to all of the parties to
this Agreement.

            11. Miscellaneous.

                  a. A Person is deemed to be a holder of Registrable Securities
whenever such Person owns or is deemed to own of record such Registrable
Securities. If the Company receives conflicting instructions, notices or
elections from two or more Persons with respect to the same Registrable
Securities, the Company shall act upon the basis of instructions, notice or
election received from the such record owner of such Registrable Securities.

                  b. Any notices, consents, waivers or other communications
required or permitted to be given under the terms of this Agreement must be in
writing and will be deemed to have been delivered: (i) upon receipt, when
delivered personally; (ii) upon receipt, when sent by facsimile (provided
confirmation of transmission is mechanically or electronically generated and
kept on file by the sending party); or (iii) one (1) Business Day after deposit
with a nationally recognized overnight delivery service, in each case properly
addressed to the party to receive the same. The addresses and facsimile numbers
for such communications shall be:

      If to the Company:

            ARTISTdirect, Inc.
            10900 Wilshire Boulevard,
            Suite 1400
            Los Angeles, California 90024
            Telephone: (310) 443-5360
            Facsimile: (310) 443-5361
            Attention: Robert Weingarten

      Copy to (for informational purposes):

            Richardson & Patel LLP
            10900 Wilshire Boulevard, Suite 500
            Los Angeles, California  90024
            Telephone: (310) 208-1182
            Facsimile: (310) 208-1154
            Attention: Erick E. Richardson, Esq.

      Copy to (for informational purposes):

            Sheppard, Mullin, Richter & Hampton LLP
            333 South Hope Street, 48th Floor
            Los Angeles, California  90071
            Telephone: (213) 620-1780
            Facsimile: (213) 620-1398
            Attention: David H. Sands, Esq.

                                       15
<PAGE>

      If to Legal Counsel (for informational purposes):

            Latham & Watkins LLP
            633 W. Fifth Street, Suite 4000
            Los Angeles, California 90071
            Telephone: (213) 485-1234
            Facsimile: (213) 891-8763
            Attention: Thomas C. Sadler, Esq.

If to a Buyer, to its address and facsimile number set forth on the Schedule of
Buyers attached hereto, with copies to such Buyer's representatives as set forth
on the Schedule of Buyers, or to such other address and/or facsimile number
and/or to the attention of such other Person as the recipient party has
specified by written notice given to each other party five (5) days prior to the
effectiveness of such change. Written confirmation of receipt (A) given by the
recipient of such notice, consent, waiver or other communication, (B)
mechanically or electronically generated by the sender's facsimile machine
containing the time, date, recipient facsimile number and an image of the first
page of such transmission or (C) provided by a courier or overnight courier
service shall be rebuttable evidence of personal service, receipt by facsimile
or receipt from a nationally recognized overnight delivery service in accordance
with clause (i), (ii) or (iii) above, respectively.

                  c. Failure of any party to exercise any right or remedy under
this Agreement or otherwise, or delay by a party in exercising such right or
remedy, shall not operate as a waiver thereof.

                  d. All questions concerning the construction, validity,
enforcement and interpretation of this Agreement shall be governed by the
internal laws of the State of New York, without giving effect to any choice of
law or conflict of law provision or rule (whether of the State of New York or
any other jurisdictions) that would cause the application of the laws of any
jurisdictions other than the State of New York. Each party hereby irrevocably
submits to the exclusive jurisdiction of the state and federal courts sitting in
The City of New York, Borough of Manhattan, 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, that such suit, action or proceeding is
brought in an inconvenient forum or that the venue of such suit, action or
proceeding is improper. Each party hereby irrevocably waives personal service of
process and consents to process being served in any such suit, action or
proceeding by mailing a copy thereof to such party at the address for such
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. If any provision of this Agreement shall be invalid or
unenforceable in any jurisdiction, such invalidity or unenforceability shall not
affect the validity or enforceability of the remainder of this Agreement

                                       16
<PAGE>

in that jurisdiction or the validity or enforceability of any provision of this
Agreement in any other jurisdiction. EACH PARTY HEREBY IRREVOCABLY WAIVES ANY
RIGHT IT MAY HAVE, AND AGREES NOT TO REQUEST, A JURY TRIAL FOR THE ADJUDICATION
OF ANY DISPUTE HEREUNDER OR IN CONNECTION HEREWITH OR ARISING OUT OF THIS
AGREEMENT OR ANY TRANSACTION CONTEMPLATED HEREBY.

                  e. This Agreement, the other Transaction Documents (as defined
in the Note Purchase Agreement) and the instruments referenced herein and
therein constitute the entire agreement among the parties hereto with respect to
the subject matter hereof and thereof. There are no restrictions, promises,
warranties or undertakings, other than those set forth or referred to herein and
therein. This Agreement, the other Transaction Documents and the instruments
referenced herein and therein supersede all prior agreements and understandings
among the parties hereto with respect to the subject matter hereof and thereof.

                  f. Subject to the requirements of Section 9, this Agreement
shall inure to the benefit of and be binding upon the permitted successors and
assigns of each of the parties hereto.

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

                  h. This Agreement may be executed in identical counterparts,
each of which shall be deemed an original but all of which shall constitute one
and the same agreement. This Agreement, once executed by a party, may be
delivered to the other party hereto by facsimile transmission of a copy of this
Agreement bearing the signature of the party so delivering this Agreement.

                  i. Each party shall do and perform, or cause to be done and
performed, all such further acts and things, and shall execute and deliver all
such other agreements, certificates, instruments and documents, as any other
party may reasonably request in order to carry out the intent and accomplish the
purposes of this Agreement and the consummation of the transactions contemplated
hereby.

                  j. All consents and other determinations required to be made
by the Investors pursuant to this Agreement shall be made, unless otherwise
specified in this Agreement, by the Required Holders.

                  k. The language used in this Agreement will be deemed to be
the language chosen by the parties to express their mutual intent and no rules
of strict construction will be applied against any party.

                  l. This Agreement is intended for the benefit of the parties
hereto and their respective permitted successors and assigns, and is not for the
benefit of, nor may any provision hereof be enforced by, any other Person.

                  m. The obligations of each Buyer hereunder are several and not
joint with the obligations of any other Buyer, and no provision of this
Agreement is intended to confer any

                                       17
<PAGE>

obligations on any Buyer vis-a-vis any other Buyer. Nothing contained herein,
and no action taken by any Buyer pursuant hereto, shall be deemed to constitute
the Buyers as a partnership, an association, a joint venture or any other kind
of entity, or create a presumption that the Buyers are in any way acting in
concert or as a group with respect to such obligations or the transactions
contemplated herein.

                                   * * * * * *

                                       18
<PAGE>

            IN WITNESS WHEREOF, each Buyer and the Company have caused their
respective signature page to this Registration Rights Agreement to be duly
executed as of the date first written above.

                                              COMPANY:

                                              ARTISTDIRECT, INC.

                                              By: /s/ Robert N. Weingarten
                                                  -----------------------------
                                                  Name: Robert N. Weingarten
                                                  Title: Chief Financial Officer

<PAGE>

            IN WITNESS WHEREOF, each Buyer and the Company have caused their
respective signature page to this Registration Rights Agreement to be duly
executed as of the date first written above.

                                               BUYERS:
                                               JMG CAPITAL PARTNERS, LP

                                               By: /s/ [Illegible]
                                                   -----------------------
                                                   Name:
                                                   Title:

<PAGE>

            IN WITNESS WHEREOF, each Buyer and the Company have caused their
respective signature page to this Registration Rights Agreement to be duly
executed as of the date first written above.

                                               BUYERS:
                                               JMG TRITON OFFSHORE FUND, LTD.

                                               By: /s/ [Illegible]
                                                   -----------------------
                                                   Name:
                                                   Title:

<PAGE>

            IN WITNESS WHEREOF, each Buyer and the Company have caused their
respective signature page to this Registration Rights Agreement to be duly
executed as of the date first written above.

                                               BUYERS:
                                               JMB CAPITAL PARTNERS, L.P.

                                               By: /s/ Cyrus Hadidi
                                                   --------------------------
                                                   Name: Cyrus Hadidi
                                                   Title: Analyst

<PAGE>

            IN WITNESS WHEREOF, each Buyer and the Company have caused their
respective signature page to this Registration Rights Agreement to be duly
executed as of the date first written above.

                                               BUYERS:
                                               CCM MASTER QUALIFIED FUND, LTD

                                               By: /s/ Clint D. Coghill
                                                   -------------------------
                                                   Name: Clint D. Coghill
                                                   Title: Director

<PAGE>

                               SCHEDULE OF BUYERS

<TABLE>
<CAPTION>
                                                 BUYER'S ADDRESS
            BUYER                              AND FACSIMILE NUMBER
            -----                              --------------------
<S>                                       <C>
JMG CAPITAL PARTNERS, LP                  c/o JMG Capital Management, LLC
                                          Contact: Noelle Newton
                                          11601 Wilshire Blvd, Suite 2180
                                          Los Angeles, CA  90025
                                          Tel: (310) 601-2825
                                          Fax: (310) 601-2890

JMG TRITON OFFSHORE FUND, LTD.            c/o JMG Capital Management, LLC
                                          Contact: Noelle Newton
                                          11601 Wilshire Blvd, Suite 2180
                                          Los Angeles, CA  90025
                                          Tel: (310) 601-2825
                                          Fax: (310) 601-2890

JMB CAPITAL PARTNERS                      Contact: Cyrus Hadidi
                                          1999 Avenue of the Stars
                                          Suite 2040
                                          Los Angeles, CA 90067
                                          Tel: (310) 286-2929
                                          Fax: (310) 286-6662

CCM MASTER QUALIFIED FUND, LTD.           Contact: Todd Cook
                                          Coghill Capital Management
                                          One North Wacker Dr Suite 4350
                                          Chicago, Il  60606
                                          Tel: (312) 324-2024
</TABLE>                                  Fax: (312) 324-2001

<PAGE>

                                                                       EXHIBIT A

                         FORM OF NOTICE OF EFFECTIVENESS
                            OF REGISTRATION STATEMENT

American Stock Transfer & Trust Company
59 Maiden Lane - Plaza Level
New York, NY 10038
Attention: Karen A. Lazar

            Re:   ARTISTdirect, Inc. Registration Statement

Ladies and Gentlemen:

            Reference is made to that certain Note Purchase Agreement (the "NOTE
PURCHASE AGREEMENT") entered into by and among ARTISTdirect, Inc., a Delaware
corporation (the "COMPANY") and the buyers named therein (collectively, the
"HOLDERS") pursuant to which the Company issued to the Holders warrants (the
"WARRANTS") exercisable for shares of the Company's common stock, $0.01 par
value per share (the "COMMON STOCK"). Pursuant to the Note Purchase Agreement,
the Company also has entered into a Registration Rights Agreement with the
Holders (the "REGISTRATION RIGHTS AGREEMENT") pursuant to which the Company
agreed, among other things, to register the Registrable Securities (as defined
in the Registration Rights Agreement), including the shares of Common Stock
issuable upon exercise of the Warrants, under the Securities Act of 1933, as
amended (the "1933 ACT"). In connection with the Company's obligations under the
Registration Rights Agreement, on ____________ ___, 200_, the Company filed a
Registration Statement on Form SB-2 (File No. 333-_____________) (the
"REGISTRATION STATEMENT") with the Securities and Exchange Commission (the
"SEC") relating to the Registrable Securities which names each of the Holders as
a selling shareholder thereunder.

            In connection with the foregoing, [we][I] advise you that a member
of the SEC's staff has advised [us][me] by telephone that the SEC has entered an
order declaring the Registration Statement effective under the 1933 Act at
[ENTER TIME OF EFFECTIVENESS] on [ENTER DATE OF EFFECTIVENESS] and [we][I] have
no knowledge, after telephonic inquiry of a member of the SEC's staff, that any
stop order suspending its effectiveness has been issued or that any proceedings
for that purpose are pending before, or threatened by, the SEC and the
Registrable Securities are available for resale under the 1933 Act pursuant to
the Registration Statement.

            Based on the foregoing, this letter shall serve as our standing
opinion to you that the shares of Common Stock are freely transferable by the
Holders pursuant to the Registration

                                      A-1
<PAGE>

Statement. You need not require further letters from us to effect any future
legend removal from the shares of Common Stock to the Holders as contemplated by
the Company's Irrevocable Transfer Agent Instructions dated July 28, 2005.
Further, we shall promptly notify you of any suspension of the effectiveness of
the Registration Statement.

                                                  Very truly yours,

                                                  ARTISTdirect, Inc.

                                                  By:_____________________
CC: [LIST NAMES OF HOLDERS]

                                      A-2
<PAGE>

                                                                       EXHIBIT B

                              SELLING SHAREHOLDERS

      The shares of Common Stock being offered by the selling shareholders are
issuable upon exercise of the warrants. For additional information regarding the
issuance of those warrants, see "Private Placement of Warrants" above. We are
registering the shares of Common Stock in order to permit the selling
shareholders to offer the shares for resale from time to time. Except for the
ownership of the Warrants, the selling shareholders have not had any material
relationship with us within the past three years.

      The table below lists the selling shareholders and other information
regarding the beneficial ownership of the shares of Common Stock by each of the
selling shareholders. The second column lists the number of shares of Common
Stock beneficially owned by each selling shareholder, based on its ownership of
the warrants, as of ________, 200_, assuming exercise of the warrants held by
the selling shareholders on that date, without regard to any limitations on
conversions or exercise.

      The third column lists the shares of Common Stock being offered by this
prospectus by the selling shareholders.

      In accordance with the terms of registration rights agreements with the
selling shareholders, this prospectus generally covers the resale of at least
130% of the number of shares of Common Stock issuable upon exercise of the
related warrants as of the trading day immediately preceding the date the
registration statement is initially filed with the SEC. Because the exercise
price of the warrants may be adjusted, the number of shares that will actually
be issued may be more or less than the number of shares being offered by this
prospectus. The fourth column assumes the sale of all of the shares offered by
the selling shareholders pursuant to this prospectus.

                                      B-1
<PAGE>

<TABLE>
<CAPTION>
                                                         MAXIMUM NUMBER OF SHARES
                               NUMBER OF SHARES OWNED     TO BE SOLD PURSUANT TO      NUMBER OF SHARES
NAME OF SELLING SHAREHOLDER       PRIOR TO OFFERING           THIS PROSPECTUS        OWNED AFTER OFFERING
---------------------------    ----------------------    ------------------------    --------------------
<S>                            <C>                       <C>                         <C>

</TABLE>

                                      B-2
<PAGE>

                                                                       EXHIBIT C

                              PLAN OF DISTRIBUTION

      We are registering the shares of Common Stock issuable upon exercise of
the warrants to permit the resale of these shares of Common Stock by the holders
of the convertible notes and warrants from time to time after the date of this
prospectus. We will not receive any of the proceeds from the sale by the selling
shareholders of the shares of Common Stock. We will bear all fees and expenses
incident to our obligation to register the shares of Common Stock, as described
in the Registration Rights Agreement dated July 28, 2005.

      The selling stockholders may sell all or a portion of the shares of Common
Stock beneficially owned by them and offered hereby from time to time directly
or through one or more underwriters, broker-dealers or agents. If the shares of
Common Stock are sold through underwriters or broker-dealers, the selling
stockholders will be responsible for underwriting discounts or commissions or
agent's commissions. The shares of Common Stock may be sold in one or more
transactions at fixed prices, at prevailing market prices at the time of the
sale, at varying prices determined at the time of sale, or at negotiated prices.
These sales may be effected in transactions, which may involve crosses or block
transactions,

      -  on any national securities exchange or quotation service on which the
         securities may be listed or quoted at the time of sale;

      -  in the over-the-counter market;

      -  in transactions otherwise than on these exchanges or systems or in the
         over-the-counter market;

      -  through the writing of options, whether such options are listed on an
         options exchange or otherwise;

      -  ordinary brokerage transactions and transactions in which the
         broker-dealer solicits purchasers;

      -  block trades in which the broker-dealer will attempt to sell the shares
         as agent but may position and resell a portion of the block as
         principal to facilitate the transaction;

      -  purchases by a broker-dealer as principal and resale by the
         broker-dealer for its account;

      -  an exchange distribution in accordance with the rules of the applicable
         exchange;

      -  privately negotiated transactions;

      -  short sales;

                                      C-1
<PAGE>

      -  sales pursuant to Rule 144;

      -  broker-dealers may agree with the selling securityholders to sell a
         specified number of such shares at a stipulated price per share;

      -  a combination of any such methods of sale; and

      -  any other method permitted pursuant to applicable law.

      If the selling stockholders effect such transactions by selling shares of
Common Stock to or through underwriters, broker-dealers or agents, such
underwriters, broker-dealers or agents may receive commissions in the form of
discounts, concessions or commissions from the selling stockholders or
commissions from purchasers of the shares of Common Stock for whom they may act
as agent or to whom they may sell as principal (which discounts, concessions or
commissions as to particular underwriters, broker-dealers or agents may be in
excess of those customary in the types of transactions involved). In connection
with sales of the shares of Common Stock or otherwise, the selling stockholders
may enter into hedging transactions with broker-dealers, which may in turn
engage in short sales of the shares of Common Stock in the course of hedging in
positions they assume. The selling stockholders may also sell shares of Common
Stock short and deliver shares of Common Stock covered by this prospectus to
close out short positions and to return borrowed shares in connection with such
short sales. The selling stockholders may also loan or pledge shares of Common
Stock to broker-dealers who in turn may sell such shares.

      The selling stockholders may pledge or grant a security interest in some
or all of the convertible notes, warrants or shares of Common Stock owned by
them and, if they default in the performance of their secured obligations, the
pledgees or secured parties may offer and sell the shares of Common Stock from
time to time pursuant to this prospectus or any amendment to this prospectus
under Rule 424(b)(3) or other applicable provision of the Securities Act of
1933, as amended (the "SECURITIES ACT"), amending, if necessary, the list of
selling stockholders to include the pledgee, transferee or other successors in
interest as selling stockholders under this prospectus. The selling stockholders
also may transfer and donate the shares of Common Stock in other circumstances
in which case the transferees, donees, pledgees or other successors in interest
will be the selling beneficial owners for purposes of this prospectus.

      The selling stockholders and any broker-dealer participating in the
distribution of the shares of Common Stock may be deemed to be "underwriters"
within the meaning of the Securities Act, and any commission paid, or any
discounts or concessions allowed to, any such broker-dealer may be deemed to be
underwriting commissions or discounts under the Securities Act. At the time a
particular offering of the shares of Common Stock is made, a prospectus
supplement, if required, will be distributed which will set forth the aggregate
amount of shares of Common Stock being offered and the terms of the offering,
including the name or names of any broker-dealers or agents, any discounts,
commissions and other terms constituting compensation from the selling
stockholders and any discounts, commissions or concessions allowed or reallowed
or paid to broker-dealers.

                                      C-2
<PAGE>

      Under the securities laws of some states, the shares of Common Stock may
be sold in such states only through registered or licensed brokers or dealers.
In addition, in some states the shares of Common Stock may not be sold unless
such shares have been registered or qualified for sale in such state or an
exemption from registration or qualification is available and is complied with.

      There can be no assurance that any selling stockholder will sell any or
all of the shares of Common Stock registered pursuant to the shelf registration
statement, of which this prospectus forms a part.

      The selling stockholders and any other person participating in such
distribution will be subject to applicable provisions of the Securities Exchange
Act of 1934, as amended, and the rules and regulations thereunder, including,
without limitation, Regulation M of the Exchange Act, which may limit the timing
of purchases and sales of any of the shares of Common Stock by the selling
stockholders and any other participating person. Regulation M may also restrict
the ability of any person engaged in the distribution of the shares of Common
Stock to engage in market-making activities with respect to the shares of Common
Stock. All of the foregoing may affect the marketability of the shares of Common
Stock and the ability of any person or entity to engage in market-making
activities with respect to the shares of Common Stock.

      We will pay all expenses of the registration of the shares of Common Stock
pursuant to the Registration Rights Agreement, estimated to be $[ ] in total,
including, without limitation, Securities and Exchange Commission filing fees
and expenses of compliance with state securities or "blue sky" laws; provided,
however, that a selling stockholder will pay all underwriting discounts and
selling commissions, if any. We will indemnify the selling stockholders against
liabilities, including some liabilities under the Securities Act, in accordance
with the Registration Rights Agreements, or the selling stockholders will be
entitled to contribution. We may be indemnified by the selling stockholders
against civil liabilities, including liabilities under the Securities Act, that
may arise from any written information furnished to us by the selling
stockholder specifically for use in this prospectus, in accordance with the
related registration rights agreements, or we may be entitled to contribution.

      Once sold under the shelf registration statement, of which this prospectus
forms a part, the shares of Common Stock will be freely tradable in the hands of
persons other than our Affiliates (as such term is defined in the Securities
Act).

                                      C-3
<PAGE>

                                                                       EXHIBIT D

                               ARTISTDIRECT, INC.

                 SELLING SECURITYHOLDER NOTICE AND QUESTIONNAIRE

      The undersigned beneficial owner of common stock, par value $0.01 per
share (the "COMMON STOCK"), of ARTISTdirect, Inc., a Delaware corporation (the
"COMPANY") and/or warrants convertible into shares of Common Stock (the
"WARRANTS" and together with the Common Stock, the "REGISTRABLE SECURITIES")
understands that the Company has filed or intends to file with the Securities
and Exchange Commission (the "COMMISSION") a registration statement on Form SB-2
(the "REGISTRATION STATEMENT") for the registration and resale under Rule 415 of
the Securities Act of 1933, as amended (the "SECURITIES ACT"), of the
Registrable Securities, in accordance with the terms of the Registration Rights
Agreement, dated as of July 28, 2005 (the "REGISTRATION RIGHTS AGREEMENT"),
among the Company and the Investors named therein. A copy of the Registration
Rights Agreement is available from the Company upon request at the address set
forth below. All capitalized terms not otherwise defined herein shall have the
meanings ascribed thereto in the Registration Rights Agreement.

      Certain legal consequences arise from being named as a selling
securityholder in the Registration Statement and the related prospectus.
Accordingly, holders and beneficial owners of Registrable Securities are advised
to consult their own securities law counsel regarding the consequences of being
named or not being named as a selling securityholder in the Registration
Statement and the related prospectus.

                                     NOTICE

      The undersigned beneficial owner (the "SELLING SECURITYHOLDER") of
Registrable Securities hereby elects to include the Registrable Securities owned
by it and listed below in Item 3 (unless otherwise specified under such Item 3)
in the Registration Statement.

      The undersigned hereby provides the following information to the Company
and represents and warrants that such information is accurate:

                                  QUESTIONNAIRE

1.    NAME.

      (a)   Full Legal Name of Selling Securityholder

            ____________________________________________________________________

      (b)   Full Legal Name of Registered Holder (if not the same as (a) above)
            through which Registrable Securities Listed in Item 3 below are
            held:

            ____________________________________________________________________

      (c)   Full Legal Name of Natural Control Person (which means a natural
            person who directly you

                                      C-1
<PAGE>

            indirectly alone or with others has power to vote or dispose of the
            securities covered by the questionnaire):

            ____________________________________________________________________

2.    ADDRESS FOR NOTICES TO SELLING SECURITYHOLDER:

Telephone: ________________________________________________________

Fax: _____________________________________________________________

Contact Person: ____________________________________________________

3.    BENEFICIAL OWNERSHIP OF REGISTRABLE SECURITIES:

      (a)   Type and Number of Registrable Securities beneficially owned:

            ____________________________________________________________________
            ____________________________________________________________________
            ____________________________________________________________________

4.    BROKER-DEALER STATUS:

      (a)   Are you a broker-dealer*?

            Yes [ ] No [ ]

      Note: If yes, the Commission's staff has indicated that you should be
            identified as an underwriter in the Registration Statement.

      (b)   Are you an affiliate of a broker-dealer*?

            Yes [ ] No [ ]

      (c)   If you are an affiliate of a broker-dealer, do you certify that you
            bought the Registrable Securities in the ordinary course of
            business, and at the time of the purchase of the Registrable
            Securities to be resold, you had no agreements or understandings,
            directly or indirectly, with any person to distribute the
            Registrable Securities?

            Yes [ ] No [ ]

      Note: If no, the Commission's staff has indicated that you should be
            identified as an underwriter in the Registration Statement.

5.    BENEFICIAL OWNERSHIP OF OTHER SECURITIES OF THE COMPANY OWNED BY THE
      SELLING

                                      C-2
<PAGE>

      SECURITYHOLDER.

      Except as set forth below in this Item 5, the undersigned is not the
      beneficial or registered owner of any securities of the Company other than
      the Registrable Securities listed above in Item 3.

      (a)   Type and Amount of Other Securities beneficially owned by the
            Selling Securityholder:

            ____________________________________________________________________
            ____________________________________________________________________

6.    RELATIONSHIPS WITH THE COMPANY:

            Except as set forth below, neither the undersigned nor any of its
            affiliates, officers, directors or principal equity holders (owners
            of 5% of more of the equity securities of the undersigned) has held
            any position or office or has had any other material relationship
            with the Company (or its predecessors or affiliates) during the past
            three years. State any exceptions here:

      * As such term is defined in the Securities Exchange Act of 1934, as
amended.

      The undersigned agrees to promptly notify the Company of any inaccuracies
or changes in the information provided herein that may occur subsequent to the
date hereof at any time while the Registration Statement remains effective.

      By signing below, the undersigned consents to the disclosure of the
information contained herein in its answers to Items 1 through 6 and the
inclusion of such information in the Registration Statement and the related
prospectus. The undersigned understands that such information will be relied
upon by the Company in connection with the preparation or amendment of the
Registration Statement and the related prospectus.

      IN WITNESS WHEREOF the undersigned, by authority duly given, has caused
this Notice and Questionnaire to be executed and delivered either in person or
by its duly authorized agent.

Dated: ________________________________  Beneficial Owner: _____________________

                                         By:____________________________________
                                            Name:
                                            Title:

           PLEASE FAX A COPY OF THE COMPLETED AND EXECUTED NOTICE AND
         QUESTIONNAIRE, AND RETURN THE ORIGINAL BY OVERNIGHT MAIL, TO:

                                      C-3
<PAGE>

ARTISTDIRECT, INC.
10900 WILSHIRE BOULEVARD, SUITE 1400
LOS ANGELES, CALIFORNIA 90024
FACSIMILE: (310) 550-4069
ATTENTION: ROBERT WEINGARTEN

                                      C-4

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