Document:

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                                                                     Exhibit 4.2

NEITHER THIS SECURITY NOR THE SECURITIES INTO WHICH THIS SECURITY IS EXERCISABLE
HAVE BEEN REGISTERED WITH THE SECURITIES AND EXCHANGE COMMISSION OR THE
SECURITIES COMMISSION OF ANY STATE IN RELIANCE UPON AN EXEMPTION FROM
REGISTRATION UNDER THE SECURITIES ACT OF 1933, AS AMENDED (THE "SECURITIES
ACT"), AND, ACCORDINGLY, MAY NOT BE OFFERED OR SOLD EXCEPT PURSUANT TO AN
EFFECTIVE REGISTRATION STATEMENT UNDER THE SECURITIES ACT OR PURSUANT TO AN
AVAILABLE EXEMPTION FROM, OR IN A TRANSACTION NOT SUBJECT TO, THE REGISTRATION
REQUIREMENTS OF THE SECURITIES ACT AND IN ACCORDANCE WITH APPLICABLE STATE
SECURITIES LAWS AS EVIDENCED BY A LEGAL OPINION OF COUNSEL TO THE TRANSFEROR TO
SUCH EFFECT, THE SUBSTANCE OF WHICH SHALL BE REASONABLY ACCEPTABLE TO THE
COMPANY. THIS SECURITY AND THE SECURITIES ISSUABLE UPON EXERCISE OF THIS
SECURITY MAY BE PLEDGED IN CONNECTION WITH A BONA FIDE MARGIN ACCOUNT OR OTHER
LOAN SECURED BY SUCH SECURITIES.

                          COMMON STOCK PURCHASE WARRANT

                  To Purchase 60,000 Shares of Common Stock of

                               ARTISTdirect, Inc.

          THIS COMMON STOCK PURCHASE WARRANT (the "Warrant") certifies that, for
value received, CCM Master Qualified Fund, Ltd. (the "Holder"), is entitled,
upon the terms and subject to the limitations on exercise and the conditions
hereinafter set forth, at any time (i) on or after the first to occur of (A)
September 30, 2005, if the acquisition target, which is mutually acceptable to
ARTISTdirect, Inc., a Delaware corporation (the "Company") and the Holder (the
"Acquisition Candidate"), has not executed a definitive purchase agreement with
any person or entity on or prior to such date or (B) the date that the Company
notifies the Holder that the Acquisition Candidate has executed a definitive
purchase agreement with a party other than (1) the Company or (2) the Holder or
its affiliates (which shall include for this purpose only, any party that that
submits a competing bid to acquire the Acquisition Candidate and such party
receives financing to fund all or any portion of such acquisition from the
Holder or any of its affiliate funds) (the first to occur of (i)(A) and (i)(B)
is referred to as the "Initial Exercise Date") and (ii) on or prior to the
earlier of (A) the occurrence of a Fundamental Transaction (as defined below)
and (B) the close of business on the fifth anniversary of the Initial Exercise
Date (the "Termination Date") but not thereafter, to subscribe for and purchase
from the Company up to 60,000 shares (the "Warrant Shares") of Common Stock, par
value $0.01 per share, of the Company (the "Common Stock"). The purchase price
of one share of Common Stock under this Warrant shall be equal to the Exercise
Price, as defined in Section 1(b). The Company shall notify the Holder of the
triggering of the Initial Exercise Date within two (2) trading days and such
notice shall be in accordance with Section 4(j) below.

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     Section 1. Exercise.

          a) Exercise of Warrant. Exercise of the purchase rights represented by
     this Warrant may be made, in whole or in part, at any time or times on or
     after the Initial Exercise Date and on or before the Termination Date by
     delivery to the Company of a duly executed original or facsimile copy of
     the Notice of Exercise Form annexed hereto (or such other office or agency
     of the Company as it may designate by notice in writing to the registered
     Holder at the address of such Holder appearing on the books of the
     Company); provided, however, within five (5) trading days of the date said
     Notice of Exercise is delivered to the Company, the Holder shall have
     surrendered this Warrant to the Company and the Company shall have received
     full payment of the aggregate Exercise Price for shares thereby purchased
     by wire transfer of immediately available funds or cashier's check drawn on
     a United States bank (unless exercised by means of a "cashless exercise" in
     accordance with Section 1(c) below).

          b) Exercise Price. The exercise price of the Common Stock under this
     Warrant shall be $1.00 per share, subject to adjustment hereunder (the
     "Exercise Price").

          c) Cashless Exercise. If at any time after one (1) year from the date
     of issuance of this Warrant there is no effective registration statement
     filed with the Securities and Exchange Commission ("SEC") under the
     Securities Act of 1933, as amended (the "Securities Act") registering, or
     no current prospectus available for, the resale of the Warrant Shares by
     the Holder, then this Warrant may also be exercised at such time by means
     of a "cashless exercise" in which the Holder shall be entitled to receive a
     certificate for the number of Warrant Shares equal to the quotient obtained
     by dividing [(A-B) (X)] by (A), where:

          (A)  = the average closing price of the Common Stock over the five (5)
               trading days immediately preceding the date of such election (the
               "Closing Price"), as such closing price is reported on the
               Over-the-Counter Bulletin Board, or if the Company's Common Stock
               ceases trading on the Over-the-Counter Bulletin Board, such other
               national securities trading market in which the primary trading
               of the Common Stock of the Company occurs;

          (B)  = the Exercise Price of this Warrant, as adjusted; and

          (X)  = the number of Warrant Shares then issuable upon exercise of
               this Warrant in accordance with the terms of this Warrant by
               means of a cash exercise rather than a cashless exercise;

     provided, however, that the Holder's ability to exercise all or any portion
     of this Warrant by means of a "cashless exercise" shall be postponed if,
     within the twenty (20) trading days preceding the date of such election,
     Holder or any of its affiliates has traded, placed any order for or bid
     upon any shares of the Company's Common Stock on the open

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     market with the intent or expectation of manipulating the price of the
     Company's Common Stock.

          Notwithstanding anything herein to the contrary (but subject to
     Section 1(d)), on the Termination Date, this Warrant shall be automatically
     exercised via cashless exercise pursuant to this Section 1(c), so long as
     the Exercise Price is less than the Closing Price.

          d) Exercise Limitations; Holder's Restrictions. The Holder shall not
     have the right to exercise any portion of this Warrant, pursuant to Section
     1(c) or otherwise, to the extent that after giving effect to such issuance
     after exercise, the Holder (together with such Holder's affiliates), as set
     forth on the applicable Notice of Exercise, would beneficially own in
     excess of 4.99% of the number of shares of the Common Stock outstanding
     immediately after giving effect to such issuance. For purposes of the
     foregoing sentence, the number of shares of Common Stock beneficially owned
     by the Holder and its affiliates shall include the number of shares of
     Common Stock issuable upon exercise of this Warrant with respect to which
     the determination of such sentence is being made, but shall exclude the
     number of shares of Common Stock which would be issuable upon (A) exercise
     of the remaining, non-exercised portion of this Warrant beneficially owned
     by such Holder or any of its affiliates and (B) exercise or conversion of
     the unexercised or non-converted portion of any other securities of the
     Company (including, without limitation, any other Warrants) subject to a
     limitation on conversion or exercise analogous to the limitation contained
     herein beneficially owned by such Holder or any of its affiliates. Except
     as set forth in the preceding sentence, for purposes of this Section 1(d),
     beneficial ownership shall be calculated in accordance with Section 13(d)
     of the Exchange Act of 1934, as amended (the "Exchange Act"), it being
     acknowledged by a Holder that the Company is not representing to such
     Holder that such calculation is in compliance with Section 13(d) of the
     Exchange Act and such Holder is solely responsible for any schedules
     required to be filed in accordance therewith and any other obligations of
     Holder arising thereunder or under any other state or federal securities or
     "blue sky" laws or regulations. To the extent that the limitation contained
     in this Section 1(d) applies, the determination of whether this Warrant is
     exercisable (in relation to other securities owned by such Holder) and of
     which a portion of this Warrant is exercisable shall be in the sole
     discretion of Holder, and the submission of a Notice of Exercise shall be
     deemed to be each Holder's determination of whether this Warrant is
     exercisable (in relation to other securities owned by such Holder) and of
     which portion of this Warrant is exercisable, in each case subject to such
     aggregate percentage limitation, and the Company shall have no obligation
     to verify or confirm the accuracy of such determination. For purposes of
     this Section 1(d), in determining the number of outstanding shares of
     Common Stock, the Holder may rely on the number of outstanding shares of
     Common Stock as reflected in the later of (x) the Company's most recent
     Form 10-Q or Form 10-K, as the case may be, (y) a more recent public
     announcement or filing with the SEC by the Company or (z) any other notice
     by the Company or the Company's transfer agent setting forth the number of
     shares of Common Stock outstanding. Upon delivery of written notice of a
     Holder, the Company shall within two (2) trading days confirm in writing to
     such Holder the number of shares of Common Stock then

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     outstanding. In any case, the number of outstanding shares of Common Stock
     shall be determined after giving effect to the conversion or exercise of
     securities of the Company, including this Warrant, by such Holder or its
     affiliates since the date as of which such number of outstanding shares of
     Common Stock was reported. Further, the Holder shall not have the right to
     exercise any portion of this Warrant while such Holder (or any of such
     Holder's affiliates) is in possession of material, confidential and
     non-public information regarding the Company; including, but not limited
     to, information regarding any pending financing or strategic transactions.

          e) Mechanics of Exercise.

                    i. Authorization of Warrant Shares. The Company covenants
               that all Warrant Shares which may be issued upon the exercise of
               the purchase rights represented by this Warrant will, upon
               exercise of the purchase rights represented by this Warrant, be
               duly authorized, validly issued, fully paid and nonassessable and
               free from all taxes, liens and charges in respect of the issue
               thereof (other than taxes in respect of any transfer occurring
               contemporaneously with such issue).

                    ii. Delivery of Certificates Upon Exercise. Certificates for
               shares purchased hereunder shall be transmitted by the transfer
               agent of the Company to the Holder by crediting the account of
               the Holder's prime broker registered on the books of the
               Depository Trust Company through its Deposit Withdrawal Agent
               Commission ("DWAC") system, if the Company is a participant in
               such system, and otherwise by physical delivery of the
               certificate to the address specified by the Holder in the Notice
               of Exercise within five (5) trading days from the delivery to the
               Company of the Notice of Exercise Form, surrender of this Warrant
               and payment of the aggregate Exercise Price as set forth above
               ("Warrant Share Delivery Date"). This Warrant shall be deemed to
               have been exercised on the date the Exercise Price is received by
               the Company. The Warrant Shares shall be deemed to have been
               issued, and Holder or any other person so designated to be named
               therein shall be deemed to have become a holder of record of such
               shares for all purposes, as of the date the Warrant has been
               exercised by payment to the Company of the Exercise Price and all
               taxes required to be paid by the Holder, if any, pursuant to
               Section 1(e)(vii) prior to the issuance of such shares, have been
               paid.

                    iii. Delivery of New Warrants Upon Exercise. If this Warrant
               is exercised in part, the Company shall, at the time of delivery
               of the certificate or certificates representing Warrant Shares,
               deliver to Holder a new Warrant evidencing the rights of Holder
               to purchase the remaining unpurchased Warrant Shares called for
               by this Warrant, which new Warrant shall in all other respects,
               be identical with this Warrant.

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                    iv. Rescission Rights. If the Company fails to cause its
               transfer agent to transmit to the Holder or its nominee a
               certificate or certificates representing the Warrant Shares
               pursuant to this Section 1(e)(iv) by the Warrant Share Delivery
               Date, then the Holder will have the right to rescind such
               exercise.

                    v. Compensation for Buy-In on Failure to Timely Deliver
               Certificates Upon Exercise. In addition to any other rights
               available to the Holder, if the Company fails to cause its
               transfer agent to transmit to the Holder, or its nominee, one or
               more certificates representing the Warrant Shares pursuant to an
               exercise on or before the Warrant Share Delivery Date, and if
               after such date the Holder is required by its broker to purchase
               (in an open market transaction or otherwise) shares of Common
               Stock to deliver in satisfaction of a sale by the Holder of the
               Warrant Shares which the Holder in good faith anticipated
               receiving upon such exercise (a "Buy-In"), then the Company shall
               (1) pay in cash to the Holder the amount by which (x) the
               Holder's total purchase price (including brokerage commissions,
               if any) for the shares of Common Stock so purchased exceeds (y)
               the amount obtained by multiplying (A) the number of Warrant
               Shares that the Company was required to deliver to the Holder in
               connection with the exercise at issue times (B) the price at
               which the sell order giving rise to such purchase obligation was
               executed, and (2) at the option of the Holder, either reinstate
               the portion of the Warrant and equivalent number of Warrant
               Shares for which such exercise was not honored or deliver to the
               Holder the number of shares of Common Stock that would have been
               issued had the Company timely complied with its exercise and
               delivery obligations hereunder. For example, if the Holder
               purchases Common Stock having a total purchase price of $11,000
               to cover a Buy-In with respect to an attempted exercise of shares
               of Common Stock with an aggregate sale price giving rise to such
               purchase obligation of $10,000, under clause (1) of the
               immediately preceding sentence the Company shall be required to
               pay the Holder $1,000. The Holder shall provide the Company
               written notice indicating the amounts payable to the Holder in
               respect of the Buy-In, together with applicable confirmations and
               other evidence reasonably requested by the Company. Nothing
               herein shall limit a Holder's right to pursue any other remedies
               available to it hereunder, at law or in equity including, without
               limitation, a decree of specific performance and/or injunctive
               relief with respect to the Company's failure to timely deliver
               certificates representing shares of Common Stock upon exercise of
               the Warrant as required pursuant to the terms hereof.

                    vi. No Fractional Shares or Scrip. No fractional shares or
               scrip representing fractional shares shall be issued upon the
               exercise of this Warrant. As to any fraction of a share which
               Holder would otherwise be

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               entitled to purchase upon such exercise, the Company shall pay a
               cash adjustment in respect of such final fraction in an amount
               equal to such fraction multiplied by the Exercise Price.

                    vii. Charges, Taxes and Expenses. Issuance of certificates
               for Warrant Shares shall be made without charge to the Holder for
               any issue or other incidental expense in respect of the issuance
               of such certificate, all of which taxes (excluding any applicable
               transfer tax incidental thereto) and expenses shall be paid by
               the Company, and such certificates shall be issued in the name of
               the Holder or in one or more such names as may be directed by the
               Holder; provided, however, that in the event certificates for
               Warrant Shares are to be issued in a name other than the name of
               the Holder, this Warrant when surrendered for exercise shall be
               accompanied by the Assignment Form attached hereto duly executed
               by the Holder; and the Company may require, as a condition
               thereto, the payment of a sum sufficient to reimburse it for any
               expenses in respect of the issuance of certificates for Warrant
               Shares, including, but not limited to, any incidental expenses or
               taxes (including any applicable transfer tax).

                    viii. Closing of Books. The Company will not close its
               stockholder books or records in any manner which prevents the
               timely exercise of this Warrant, pursuant to the terms hereof.

     Section 2. Certain Adjustments.

          a) Stock Dividends and Splits. If the Company, at any time while this
     Warrant is outstanding: (A) pays a stock dividend or otherwise makes one or
     more distributions on all shares of its Common Stock or any other equity or
     equity equivalent securities payable in shares of Common Stock (which, for
     avoidance of doubt, shall not include any shares of Common Stock issued by
     the Company pursuant to this Warrant), (B) sub-divides outstanding shares
     of Common Stock into a larger number of shares, (C) combines (including by
     way of reverse stock split) outstanding shares of Common Stock into a
     smaller number of shares, or (D) issues by reclassification of shares of
     Common Stock any shares of capital stock of the Company, then in each case
     the Exercise Price shall be multiplied by a fraction of which the numerator
     shall be the number of shares of Common Stock (excluding treasury shares,
     if any) outstanding immediately before such event and of which the
     denominator shall be the number of shares of Common Stock (excluding
     treasury shares, if any) outstanding immediately after such event and the
     number of shares issuable upon exercise of this Warrant shall be
     proportionately adjusted. Any adjustment made pursuant to this Section 2(a)
     shall become effective immediately after the record date for the
     determination of stockholders entitled to receive such dividend or
     distribution and shall become effective immediately after the effective
     date in the case of a sub-division, combination or reclassification.

          b) Adjustment Due to Dilutive Issuance.

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                    i. Dilutive Issuances On or Prior to December 31, 2005. If
     at any time on or prior to December 31, 2005, the Company or any subsidiary
     thereof, as applicable, while any portion of this Warrant is outstanding,
     shall sell, issue or grant any option or warrant to acquire its Common
     Stock, or reprice any outstanding options or warrants exercisable into
     Common Stock, or otherwise sell, issue or grant any securities at any time
     convertible, exchangeable or exercisable into Common Stock ("Common Stock
     Equivalents"), other than Excluded Stock (as defined below), at a price per
     share less than the Exercise Price in effect on the date of such issuance
     (or deemed issuance) of such shares of Common Stock or Common Stock
     Equivalents (such lower price, the "Base Share Price" and such issuances
     other than with respect to Excluded Stock collectively, a "Dilutive
     Issuance") then, the Exercise Price shall be reduced to equal the Base
     Share Price and the number of Warrant Shares issuable hereunder shall be
     increased such that the aggregate Exercise Price payable hereunder, after
     taking into account the decrease in the Exercise Price, shall be equal to
     the aggregate Exercise Price prior to such adjustment.

                      ii. Dilutive Issuances Subsequent to December 31, 2005. If
     at any time subsequent to December 31, 2005, the Company or any subsidiary
     thereof, as appropriate, makes a Dilutive Issuance while any portion of
     this Warrant is outstanding, then immediately upon the Dilutive Issuance,
     the Exercise Price will adjusted to a price equal to the quotient obtained
     by using the following formula:

                                 Z = A  +  B
                                     -------
                                        X

               Where:

               (A)= the product of (x) the total number of shares of Common
     Stock (excluding shares of Excluded Stock) outstanding immediately prior to
     such issuance multiplied by (y) the applicable Exercise Price in effect
     immediately prior to such issuance;

               (B)= the consideration received by the Company upon such
     issuance; and

               (X)= the total number of shares of Common Stock outstanding
     (excluding shares of Excluded Stock) immediately after the issuance of such
     Common Stock.

     Any such adjustments made pursuant to this Section 2(b) shall be made
     whenever such Common Stock or Common Stock Equivalents are issued. The
     Company shall notify the Holder in writing, no later than five (5) business
     days following the issuance of any Common Stock or Common Stock Equivalents
     subject to this section (such notice the "Dilutive Issuance Notice"). For
     purposes of clarification, whether or not the Company provides a Dilutive
     Issuance Notice pursuant to this Section 2(b), upon the occurrence of any
     Dilutive Issuance, after the date of such Dilutive Issuance, the Holder
     will be entitled

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     to receive a number of Warrant Shares based upon the adjustments set forth
     above regardless of whether the Holder accurately provides notice
     describing the adjusted Exercise Price in the Notice of Exercise.

     For purposes of this Section 2(b), "Excluded Stock" shall mean shares of
     Common Stock or Common Stock Equivalents issued by the Company (i) prior to
     April 1, 2005, (ii) to employees, officers, directors and consultants of
     the Company in the ordinary course of business, (iii) under a Compensatory
     Benefit Plan (as defined in Rule 701 of the Securities Act of 1933, as
     amended), (iv) with respect to which the provisions of Section 2(a), 2(c)
     and/or 2(d) apply, (v) to the Holder or any of its affiliates, or (vi) upon
     conversion of any Common Stock Equivalents for which adjustment of the
     Exercise Price has previously been made pursuant to Section 2(b).

          c) Pro Rata Distributions. If the Company, at any time prior to the
     Termination Date, shall distribute to all holders of Common Stock (and not
     to Holders of the Warrants) evidences of its indebtedness or assets
     (including cash and cash dividends) or rights or warrants to subscribe for
     or purchase any security other than the Common Stock (which shall be
     subject to Section 2(b)), then in each such case the Exercise Price shall
     be adjusted by multiplying the Exercise Price in effect immediately prior
     to the record date fixed for determination of stockholders entitled to
     receive such distribution by a fraction of which the denominator shall be
     the average closing price of the Common Stock over the ten (10) trading
     days immediately preceding the record date (as reported by the
     Over-the-Counter Bulletin Board, or if the Company's Common Stock ceases
     trading on the Over-the-Counter Bulletin Board, such other national
     securities trading market in which the primary trading of the Common Stock
     of the Company occurs), and of which the numerator shall be such average
     closing price of the Common Stock over the ten (10) trading days
     immediately preceding the record date (as reported by the Over-the-Counter
     Bulletin Board, or if the Company's Common Stock ceases trading on the
     Over-the-Counter Bulletin Board, such other national securities trading
     market in which the primary trading of the Common Stock of the Company
     occurs) less the then per share fair market value at such record date of
     the portion of such assets or evidence of indebtedness so distributed
     applicable to one outstanding share of the Common Stock as determined by
     the Board of Directors in good faith. In either case the adjustments shall
     be described in a statement provided to the Holder of the portion of assets
     or evidences of indebtedness so distributed or such subscription rights
     applicable to one share of Common Stock. Such adjustment shall be made
     whenever any such distribution is made and shall become effective
     immediately after the record date mentioned above.

          d) Fundamental Transaction. If, at any time while this Warrant is
     outstanding, (A) the Company effects any merger or consolidation of the
     Company with or into another entity, (B) the Company effects any sale of
     all or substantially all of its assets in one or a series of related
     transactions, (C) any tender offer or exchange offer (whether by the
     Company or another person or entity) is completed pursuant to which holders
     of Common Stock are permitted to tender or exchange their shares for other
     securities, cash or property, or (D) the Company effects any
     reclassification of the

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     Common Stock or any compulsory share exchange pursuant to which the Common
     Stock is effectively converted into or exchanged for other securities, cash
     or property (in any such case, a "Fundamental Transaction"), then, this
     Warrant shall be cancelled and shall no longer be in force or effect.

          e) Calculations. All calculations under this Section 2 shall be made
     to the nearest cent or the nearest 1/100th of a share, as the case may be.
     For purposes of this Section 2, the number of shares of Common Stock deemed
     to be issued and outstanding as of a given date shall be the sum of the
     number of shares of Common Stock (excluding treasury shares, if any) issued
     and outstanding.

          f) Voluntary Adjustment By Company. The Company may at any time during
     the term of the Warrant reduce the then current Exercise Price to any
     amount and for any period of time deemed appropriate by the Board of
     Directors of the Company (in its discretion).

          g) Notice to Holders.

                    i. Adjustment to Exercise Price. Whenever the Exercise Price
               is adjusted pursuant to this Section 2, the Company shall
               promptly mail to each Holder a notice setting forth the Exercise
               Price after such adjustment and setting forth a brief statement
               of the facts requiring such adjustment.

                    ii. Notice to Allow Exercise by Holder. If (A) the Company
               shall declare a dividend (or any other distribution) on the
               Common Stock; (B) the Company shall declare a special
               non-recurring cash dividend on or a redemption of the Common
               Stock; (C) the Company shall authorize the granting to all
               holders of the Common Stock rights or warrants to subscribe for
               or purchase any shares of capital stock of any class or of any
               rights; (D) the approval of the stockholders of the Company shall
               be required in connection with any reclassification of the Common
               Stock, any consolidation or merger to which the Company is a
               party, any sale or transfer of all or substantially all of the
               assets of the Company, of any compulsory share exchange whereby
               the Common Stock is converted into other securities, cash or
               property; (E) the Company shall authorize a Fundamental
               Transaction or the voluntary or involuntary dissolution,
               liquidation or winding up of the affairs of the Company; then, in
               each case, the Company shall cause to be mailed to the Holder at
               its last address as it shall appear upon the Warrant Register (as
               defined below) of the Company, at least twenty (20) calendar days
               prior to the applicable record or effective date hereinafter
               specified, a notice stating (x) the date on which a record is to
               be taken for the purpose of such dividend, distribution,
               redemption, rights or warrants, or if a record is not to be
               taken, the date as of which the holders of the Common Stock of
               record to be entitled to such dividend, distributions,
               redemption, rights or warrants are to be determined or (y) the
               date on which such reclassification,

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               consolidation, merger, sale, transfer or share exchange is
               expected to become effective or close, and the date as of which
               it is expected that holders of the Common Stock of record shall
               be entitled to exchange their shares of the Common Stock for
               securities, cash or other property deliverable upon such
               reclassification, consolidation, merger, sale, transfer or share
               exchange; provided, that the failure to mail such notice or any
               defect therein or in the mailing thereof shall not affect the
               validity of the corporate action required to be specified in such
               notice. The Holder is entitled to exercise this Warrant during
               the twenty (20) day period commencing on the date of such notice
               to the effective date of the event triggering such notice.

     Section 3. Transfer of Warrant.

          a) Transferability. Subject to compliance with any applicable
     securities laws and regulations and the conditions set forth in Sections
     3(d) and 4(a) hereof, this Warrant and all rights hereunder are
     transferable, in whole or in part, upon surrender of this Warrant at the
     principal office of the Company, together with a written assignment of this
     Warrant substantially in the form attached hereto duly executed by the
     Holder or its agent or attorney and funds sufficient to pay any transfer
     taxes payable upon the making of such transfer. Upon such surrender and, if
     required, such payment, the Company shall execute and deliver one or more
     new Warrants in the name of the assignee(s) and in the denomination(s)
     specified in such instrument of assignment, and shall issue to the assignor
     a new Warrant containing identical terms and conditions as this Warrant
     evidencing the portion of this Warrant not so assigned, and this Warrant
     shall promptly be cancelled. A Warrant, if properly assigned, may be
     exercised by a new holder for the purchase of Warrant Shares without having
     a new Warrant issued.

          b) New Warrants. This Warrant may be divided or combined with other
     Warrants containing identical terms and conditions upon presentation hereof
     at the aforesaid office of the Company, together with a written notice
     specifying the names and denominations in which new Warrants are to be
     issued, signed by the Holder or its agent or attorney. Subject to
     compliance with Section 3(a), as to any transfer which may be involved in
     such division or combination, the Company shall execute and deliver one or
     more new Warrants in exchange for the Warrant(s) to be divided or combined
     in accordance with such notice.

          c) Warrant Register. The Company shall register this Warrant, upon
     records to be maintained by the Company for that purpose (the "Warrant
     Register"), in the name of the record Holder hereof from time to time. The
     Company may deem and treat the registered Holder of this Warrant as the
     absolute owner hereof for the purpose of any exercise hereof or any
     distribution to the Holder, and for all other purposes, absent actual
     written notice to the contrary.

          d) Transfer Restrictions. If, at the time of the surrender of this
     Warrant in connection with any transfer of this Warrant, the transfer of
     this Warrant shall not be

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     registered pursuant to an effective registration statement filed with the
     SEC under the Securities Act and under applicable state securities or blue
     sky laws, the Company may require, as a condition of allowing such transfer
     (i) that the Holder or transferee of this Warrant, as the case may be,
     furnish to the Company a written opinion of counsel (which opinion shall be
     in form, substance and scope customary for opinions of counsel in
     comparable transactions) to the effect that such transfer may be made
     without registration under the Securities Act and under applicable state
     securities or blue sky laws, (ii) that the Holder or transferee execute and
     deliver to the Company an investment letter in form and substance
     acceptable to the Company and (iii) that the transferee be an "accredited
     investor" as defined in Rule 501(a)(1), (a)(2), (a)(3), (a)(7), or (a)(8)
     promulgated under the Securities Act or a qualified institutional buyer as
     defined in Rule 144A(a) under the Securities Act.

     Section 4. Miscellaneous.

          a) If at any time prior to the Termination Date there is not an
     effective registration statement filed with the SEC under the Securities
     Act covering all of the Warrant Shares and the Company shall determine to
     prepare and file with the SEC a registration statement relating to an
     offering for its own account or the account of others under the Securities
     Act of any of its equity securities, then the Company shall send to each
     Holder a written notice of such determination and, if within fifteen (15)
     days after the date of such notice, any such Holder shall so request in
     writing, the Company shall include in such registration statement all or
     any part of such Warrant Shares such holder requests to be registered;
     provided, however, that, (i) the Company shall not be required to register
     any Warrant Shares pursuant to this Section 4(a) that are eligible for
     resale pursuant to Rule 144(k) promulgated under the Securities Act or that
     are the subject of a then effective registration statement filed with the
     SEC under the Securities Act; or (ii) if managing underwriter of any
     offering by the Company, for its own account or the account of others, or
     the Company's Board of Directors, determines that marketing factors require
     limitation of the number of shares that may be included in a registration
     statement, the Company may, at its discretion, limit or exclude the Warrant
     Shares from such registration.

          b) Title to Warrant. Prior to the Termination Date and subject to
     compliance with applicable laws and Section 4 of this Warrant, this Warrant
     and all rights hereunder are transferable, in whole or in part, at the
     office or agency of the Company by the Holder in person or by duly
     authorized attorney, upon surrender of this Warrant together with the
     Assignment Form annexed hereto properly endorsed. The transferee shall sign
     an investment letter in form and substance reasonably satisfactory to the
     Company.

          c) No Rights as Stockholder Until Exercise. This Warrant does not
     entitle the Holder to any voting rights or other rights as a stockholder of
     the Company prior to the exercise hereof. Upon the surrender of this
     Warrant and the payment of the aggregate Exercise Price (or by means of a
     cashless exercise), the Warrant Shares so purchased shall be and be deemed
     to be issued to such Holder, or nominee, as the record owner of

                                      -11-
<PAGE>
     such shares as of the close of business on the later of the date of such
     surrender or payment.

          d) Loss, Theft, Destruction or Mutilation of Warrant. The Company
     covenants that upon receipt by the Company of evidence reasonably
     satisfactory to it of the loss, theft, destruction or mutilation of this
     Warrant or any stock certificate relating to the Warrant Shares, and in
     case of loss, theft or destruction, of indemnity or security reasonably
     satisfactory to it (which, in the case of the Warrant, shall not include
     the posting of any bond), and upon surrender and cancellation of such
     Warrant or stock certificate, if mutilated, the Company will make and
     deliver a new Warrant or stock certificate of like tenor and dated as of
     such cancellation, in lieu of such Warrant or stock certificate.

          e) Saturdays, Sundays, Holidays, etc. If the last or appointed day for
     the taking of any action or the expiration of any right required or granted
     herein shall be a Saturday, Sunday or a legal holiday, then such action may
     be taken or such right may be exercised on the next succeeding day not a
     Saturday, Sunday or legal holiday.

          f) Authorized Shares.

          The Company covenants that during the period the Warrant is
     outstanding, it will reserve from its authorized and unissued Common Stock
     a sufficient number of shares to provide for the issuance of the Warrant
     Shares upon the exercise of any purchase rights under this Warrant. The
     Company further covenants that its issuance of this Warrant shall
     constitute the granting of full authority to its officers who are charged
     with the duty of executing stock certificates to execute and issue the
     necessary certificates for the Warrant Shares upon the exercise of the
     purchase rights under this Warrant. The Company will take all such
     reasonable action as may be necessary to assure that such Warrant Shares
     may be issued as provided herein without violation of any applicable law or
     regulation, or of any requirements of the trading market upon which the
     Common Stock may be listed; provided, however, that the Company shall have
     five (5) trading days to report the issuance of the Warrant Shares to the
     then applicable trading market.

          Except and to the extent as waived or consented to by the Holder, the
     Company shall not by any action, including, without limitation, amending
     its certificate of incorporation or through any reorganization, transfer of
     assets, consolidation, merger, 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, but will at all times in
     good faith assist in the carrying out of all such terms and in the taking
     of all such actions as may be necessary or appropriate to protect the
     rights of Holder as set forth in this Warrant against impairment. Without
     limiting the generality of the foregoing, the Company will (a) not increase
     the par value of any Warrant Shares above the amount payable therefor upon
     such exercise immediately prior to such increase in par value, (b) take all
     such action as may be necessary or appropriate in order that the Company
     may validly and legally issue fully paid and nonassessable Warrant Shares
     upon the exercise of this Warrant, and (c) use commercially reasonable
     efforts to obtain all such

                                      -12-
<PAGE>
     authorizations, exemptions or consents from any public regulatory body
     having jurisdiction thereof as may be necessary to enable the Company to
     perform its obligations under this Warrant.

          g) Jurisdiction. All questions concerning the construction, validity,
     enforcement and interpretation of this Warrant shall be determined in
     accordance with the laws of the State of New York.

          h) Restrictions. THE HOLDER ACKNOWLEDGES THAT THE WARRANT SHARES
     ACQUIRED UPON THE EXERCISE OF THIS WARRANT, IF NOT REGISTERED, WILL HAVE
     RESTRICTIONS UPON RESALE IMPOSED BY APPLICABLE STATE AND FEDERAL SECURITIES
     LAWS AND REGULATIONS AND THE CERTIFICATES ISSUED HEREUNDER WILL CONTAIN
     CUSTOMARY RESTRICTIVE LEGENDS.

          i) Non-waiver and Expenses. No course of dealing or any delay or
     failure to exercise any right hereunder on the part of Holder shall operate
     as a waiver of such right or otherwise prejudice Holder's rights, powers or
     remedies, notwithstanding the fact that all rights hereunder terminate on
     the Termination Date. If the Company willfully and knowingly fails to
     comply with any provision of this Warrant, which results in any material
     damages to the Holder, the Company shall pay to Holder such amounts as
     shall be sufficient to cover any costs and expenses including, but not
     limited to, reasonable attorneys' fees, including those of appellate
     proceedings, incurred by Holder in collecting any amounts due pursuant
     hereto or in otherwise enforcing any of its rights, powers or remedies
     hereunder.

          j) Notices. Any notice, request or other document required or
     permitted to be given or delivered to the Holder by the Company shall be
     delivered via personal delivery, facsimile transmission or first class
     registered or certified mail at (a) 1133 5th Avenue, New York, NY 10128,
     facsimile number (212) 348-2457, or such other address or facsimile number
     as the Holder shall have furnished to the Company in writing or (b) if to
     the Company, at 10900 Wilshire Boulevard, Suite 1400, Los Angeles,
     California 90024 or facsimile number (310) 443-5361.

          k) Limitation of Liability. No provision hereof, in the absence of any
     affirmative action by Holder to exercise this Warrant or purchase Warrant
     Shares, and no enumeration herein of the rights or privileges of Holder,
     shall give rise to any liability of Holder for the purchase price of any
     Common Stock or as a stockholder of the Company, whether such liability is
     asserted by the Company or by creditors of the Company.

          l) Remedies. Holder, in addition to being entitled to exercise all
     rights granted by law, including recovery of damages, will be entitled to
     specific performance of its rights under this Warrant. The Company agrees
     that monetary damages would not be adequate compensation for any loss
     incurred by reason of a breach by it of the provisions of this Warrant and
     hereby agrees to waive the defense in any action for specific performance
     that a remedy at law would be adequate.

                                      -13-
<PAGE>
          m) Successors and Assigns. Subject to applicable securities laws, this
     Warrant and the rights and obligations evidenced hereby shall inure to the
     benefit of and be binding upon the successors of the Company and the
     successors and permitted assigns of Holder. The provisions of this Warrant
     are intended to be for the benefit of all Holders from time to time of this
     Warrant and shall be enforceable by any such Holder of Warrant Shares.

          n) Amendment. This Warrant may be modified or amended or the
     provisions hereof waived only by the written consent of the Company and the
     Holder.

          o) Disclosure. The Company may disclose the terms of this Warrant to
     third parties, or file a copy of such Warrant as an exhibit to a filing
     with the SEC, to the extent the Company determines that it is required to
     do so under applicable federal securities laws or as required by the rules
     of the trading market in which the primary trading of the Common Stock of
     the Company occurs.

          p) Severability. Wherever possible, each provision of this Warrant
     shall be interpreted in such manner as to be effective and valid under
     applicable law, but if any provision of this Warrant shall be prohibited by
     or invalid under applicable law, such provision shall be ineffective to the
     extent of such prohibition or invalidity, without invalidating the
     remainder of such provisions or the remaining provisions of this Warrant.

          q) Headings. The headings used in this Warrant are for the convenience
     of reference only and shall not, for any purpose, be deemed a part of this
     Warrant.

          r) Early Termination. The Holder acknowledges and agrees that if the
     Company consummates an acquisition of the Acquisition Candidate, this
     Warrant shall be, without additional consideration, immediately rescinded
     and treated as if it was never in force or effect.

                              ********************

                                      -14-
<PAGE>
          IN WITNESS WHEREOF, the Company has caused this Warrant to be executed
by its officer thereunto duly authorized.

Dated:  May 25, 2005

                                   ARTISTDIRECT, INC.

                                   By: /s/ Robert N. Weingarten
                                       ----------------------------------------

                                   Name: Robert N. Weingarten
                                         --------------------------------------

                                   Title: Chief Financial Officer
                                          -------------------------------------

                                      -15-
<PAGE>
                               NOTICE OF EXERCISE

TO: ARTISTDIRECT, INC.

          (1) The undersigned hereby elects to purchase ________ Warrant
Shares of the Company pursuant to the terms of the attached Warrant (only if
exercised in full), and tenders herewith payment of the exercise price in full,
together with all applicable transfer taxes, if any.

          (2) Payment shall take the form of (check applicable box):

               [ ] in lawful money of the United States; or

               [ ] the cancellation of such number of Warrant Shares as is
               necessary, in accordance with the formula set forth in subsection
               1(c), to exercise this Warrant with respect to the maximum number
               of Warrant Shares purchasable pursuant to the cashless exercise
               procedure set forth in subsection 1(c).

          (3) Please issue a certificate or certificates representing said
Warrant Shares in the name of the undersigned or in such other name as is
specified below:

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

The Warrant Shares shall be delivered to the following:

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

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

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

          (4) Accredited Investor. The undersigned is an "accredited investor"
as defined in Regulation D promulgated under the Securities Act of 1933, as
amended.

          (5) The undersigned hereby represents and warrants to the Company that
within the twenty (20) trading days preceding the date hereof, neither the
undersigned or any of its affiliates has traded, placed any order for or bid
upon any shares of the Company's Common Stock on the open market with the intent
or expectation of manipulating the price of the Company's Common Stock.

[SIGNATURE OF HOLDER]

Name of Investing Entity: ______________________________________________________

Signature of Authorized Signatory of Investing Entity: _________________________

Name of Authorized Signatory: __________________________________________________

Title of Authorized Signatory: _________________________________________________

Date: __________________________________________________________________________

                                      -16-
<PAGE>
                                 ASSIGNMENT FORM

                    (To assign the foregoing warrant, execute
                   this form and supply required information.
                 Do not use this form to exercise the warrant.)

          FOR VALUE RECEIVED, the foregoing Warrant and all rights evidenced
thereby are hereby assigned to

_______________________________________________ whose address is

___________________________________________________________________.

___________________________________________________________________

                                            Dated:  ______________, _______

                  Holder's Signature:  _____________________________

                  Holder's Address:    _____________________________

                                       _____________________________

Signature Guaranteed: ___________________________________________

NOTE: The signature to this Assignment Form must correspond with the name as it
appears on the face of the Warrant, without alteration or enlargement or any
change whatsoever, and must be guaranteed by a bank or trust company. Officers
of corporations and those acting in a fiduciary or other representative capacity
should file proper evidence of authority to assign the foregoing Warrant.

                                      -17-<PAGE>

                                                                    EXHIBIT 10.1

                                Escrow Agreement

                                  by and among

                     DKR SoundShore Oasis Holding Fund Ltd.,

                               ARTISTdirect, Inc.,

                                       and

                         U.S. Bank National Association

                            Dated as of May 23, 2005

<PAGE>

      THIS ESCROW AGREEMENT is entered into as of May 23, 2005 (this
"Agreement") by and among U.S. Bank National Association (the "Escrow Agent"),
DKR SoundShore Oasis Holding Fund Ltd. ("Oasis") and ARTISTdirect, Inc. (the
"Company" and together with Oasis, the "Interested Parties").

      WHEREAS, the Company, Oasis and Verus International Group Ltd. ("Verus")
are currently negotiating the terms of a Convertible Subordinated Debenture to
be issued by the Company (the "Debenture");

      WHEREAS, the net proceeds from the Debenture will be used by the Company
to finance in part the acquisition of an acquisition target (including the
purchase price therefor and all costs, fees and expenses incurred in connection
therewith), mutually acceptable to the Company, Oasis and Verus (the
"Acquisition Candidate") (the transaction is referred to herein as the
"Acquisition");

      WHEREAS, the execution and funding of the Debenture by Oasis and Verus are
contingent upon the consummation of the Acquisition;

      WHEREAS, to induce Acquisition Candidate to execute a letter of intent and
to facilitate the consummation of the Acquisition, Oasis has agreed to cause the
deposit of certain funds with the Escrow Agent;

      WHEREAS, a portion of the funds deposited by Oasis with the Escrow Agent
(not more than Fifteen Million Ninety Thousand U.S. Dollars ($15,090,000)) shall
be applied toward a portion of the purchase price of the Debenture and such
funds shall be distributed to the Company only upon consummation of the
Acquisition, or shall be returned to Oasis in accordance with this Agreement;
and

      WHEREAS, the parties to this Agreement desire to define the terms and
conditions pursuant to which the Escrow Agent shall hold and release such funds;

      NOW, THEREFORE, in consideration of the mutual promises and covenants
contained herein, the Escrow Agent shall hold in escrow and shall distribute the
Escrowed Funds (as defined herein) in accordance with and subject to the
following terms and conditions:

      1.    Appointment as Escrow Agent. The Company and Oasis each hereby
appoint Escrow Agent to act as the escrow agent under the terms hereof, and the
Escrow Agent hereby accepts such appointment and agrees to act as escrow holder
for the Escrowed Funds in accordance with the terms hereof.

      2.    Escrowed Funds. Upon the effectiveness of this Agreement, Oasis
shall deposit with the Escrow Agent a sum of Twenty Five Million U.S. Dollars
(U.S. $25,000,000) (the "Oasis Deposit"), to be held subject to the terms and
provisions herein. The foregoing funds, plus all interest, dividends, and other
distributions and payments therein (collectively the "Distributions") received
by the Escrow Agent, less any funds distributed or paid in accordance with this
Agreement, are collectively referred to herein as the "Escrowed Funds." The
Escrow Agent shall hold the Escrowed Funds in escrow and shall not withdraw, and
none of the parties

                                      -1-
<PAGE>

shall be entitled to any disbursement of, the Escrowed Funds for any purpose or
in any manner or circumstances other than as set forth herein.

      3.    Investment of Escrowed Funds.

            (a)   The Escrow Agent shall invest the Escrowed Funds in Eligible
Investments. For purposes of this Agreement, "Eligible Investments" shall mean
(i) sixty (60) day United States Treasury Bills or (ii) money market funds
investing in United States Government securities. Oasis shall have the right to
select the Eligible Investment and any such selection shall be made in writing
and delivered to Escrow Agent on the date hereof.

            (b)   All earnings received from the investment of the Escrowed
Funds shall be credited to, and shall become a part of, the Escrowed Funds (and
any losses on such investments shall be debited to the Escrow Account). The
Escrow Agent shall have no liability for any investment losses, including
without limitation any market loss on any investment liquidated prior to
maturity in order to make a payment required hereunder.

            (c)   The Interested Parties agree that, for tax reporting purposes,
all interest and other income earned from the investment of the Escrowed Funds
in any tax year shall, to the extent such interest or other income is
distributed by the Escrow Agent to any person or entity pursuant to the terms of
this Agreement during such tax year, be reported as allocated to such person or
entity.

            (d)   Each of the Interested Parties hereto agrees to provide the
Escrow Agent with a certified tax identification number by signing and returning
a Form W-9 (or Form W-8 BEN, in case of non-U.S. persons) to the Escrow Agent
upon the execution and delivery of this Agreement. The Interested Parties
understand that, in the event their tax identification numbers are not certified
to the Escrow Agent, the Internal Revenue Code, as amended from time to time,
may require withholding of a portion of any interest or other income earned on
the investment of the Escrowed Funds. Each of the Interested Parties agrees to
instruct the Escrow Agent in writing with respect to the Escrow Agent's
responsibility for withholding and other taxes, assessments or other
governmental charges, and to instruct the Escrow Agent with respect to any
certifications and governmental reporting that may be required under any laws or
regulations that may be applicable in connection with its acting as Escrow Agent
under this Agreement.

      4.    Distribution of Escrowed Funds. The Escrow Agent is directed to hold
and distribute the Escrowed Funds in the following manner:

            (a)   On the date the Acquisition is consummated, the Company and
Oasis shall deliver a written notice to the Escrow Agent, duly executed by an
authorized signatory for the Company and Oasis, notifying the Escrow Agent that
the Company and Oasis have executed documentation in connection with the
issuance of the Debenture. Upon receipt of such notice, the Escrow Agent will
release the applicable portion of the Oasis Deposit to the Company via wire
transfer, and return the balance of the Oasis Deposit, plus any applicable
accrued interest or other income, to Oasis via wire transfer, or as otherwise
set forth in the written notice, within two (2) Business Days after receipt of
such notice.

                                      -2-
<PAGE>

            (b)   In the event Acquisition Candidate either (i) executes a
definitive purchase or acquisition agreement with a party other than the Company
or (ii) affirmatively rejects the Company's offer to acquire Acquisition
Candidate, whichever shall occur first, the Company and Oasis shall deliver a
written notice to the Escrow Agent, duly executed by an authorized signatory for
the Company and Oasis, notifying the Escrow Agent that the Acquisition, and
corresponding issuance of the Debenture, has been terminated. Upon receipt of
such notice, the Escrow Agent will return the Oasis Deposit, plus any applicable
accrued interest or other income, to Oasis via wire transfer, or as otherwise
set forth in the written notice, within two (2) Business Days after receipt of
such notice.

            (c)   In the event the Acquisition is not consummated by July 31,
2005 (with certification thereof provided to the Escrow Agent in accordance with
Section 4(a) above), the Escrow Agent shall thereupon immediately return the
Oasis Deposit, plus any applicable accrued interest or other income, to Oasis
via wire transfer within two (2) Business Days.

            (d)   The Escrow Agent shall return the Oasis Deposit, plus any
applicable accrued interest to other income, to Oasis within three (3) Business
Days if so requested by Oasis, if at any time and for any reason Oasis, in its
sole discretion, is not satisfied with the results of its due diligence review
of the Company and/or the Acquisition Candidate.

      For purposes of this Agreement, "Business Day" shall mean any day other
than a Saturday, Sunday or other day on which commercial banks in the City of
Los Angeles, California are authorized or required by law or executive order to
close.

      5.    Addresses and Account Information. Notices, instructions and other
communications hereunder shall be sent as specified in Exhibit 1. All notices or
communications required or permitted to be given hereunder shall be in writing
and shall be delivered by hand, sent by facsimile or sent, postage prepaid, by
registered, certified or express mail, or reputable overnight courier service
and shall be deemed given when actually so delivered by hand or facsimile, or,
if mailed, three (3) days after mailing (one (1) business day in the case of
express mail or overnight courier service).

      6.    Termination of Escrow Agreement. This Agreement shall terminate upon
the distribution of all of the Escrowed Funds by the Escrow Agent pursuant to
this Agreement.

      7.    Limitation of Escrow Agent's Duties and Liabilities.

            (a)   Each Interested Party acknowledges and agrees that the Escrow
Agent (i) shall not be responsible for any of the agreements referred to or
described herein (including without limitation any documents pertaining to the
Acquisition, including, but not limited to, the Debenture), or for determining
or compelling compliance therewith, and shall not otherwise be bound thereby,
(ii) shall be obligated only for the performance of such duties as are expressly
and specifically set forth in this Agreement on its part to be performed, each
of which is ministerial (and shall not be construed to be fiduciary) in nature,
and no implied duties or obligations of any kind shall be read into this
Agreement against or on the part of the Escrow Agent, (iii) shall not be
obligated to take any legal or other action hereunder which might in its
judgment involve or cause it to incur any expense or liability unless it shall
have been furnished

                                      -3-
<PAGE>

with acceptable indemnification, (iv) may rely on and shall be protected in
acting or refraining from acting upon any written notice, instruction
(including, without limitation, wire transfer instructions, whether incorporated
herein or provided in a separate written instruction), instrument, statement,
certificate, request or other document furnished to it hereunder and believed by
it in good faith to be genuine and to have been signed or presented by the
proper person, and shall have no responsibility or duty to make inquiry as to or
to determine the genuineness, accuracy or validity thereof (or any signature
appearing thereon), or of the authority of the person signing or presenting the
same, and (v) may consult counsel satisfactory to it, including in-house
counsel, and the opinion or advice of such counsel in any instance shall be full
and complete authorization and protection in respect of any action taken,
suffered or omitted by it hereunder in good faith and in accordance with the
opinion or advice of such counsel.

            (b)   The Escrow Agent shall not be liable to anyone for any action
taken or omitted to be taken by it hereunder except in the case of the Escrow
Agent's gross negligence, willful misconduct or fraud in breach of the terms of
this Agreement. In no event shall the Escrow Agent be liable for indirect,
punitive, special or consequential damage or loss (including but not limited to
lost profits) whatsoever, even if the Escrow Agent has been informed of the
likelihood of such loss or damage and regardless of the form of action, unless
due to the Escrow Agent's willful misconduct or fraud.

            (c)   The Escrow Agent shall have no more or less responsibility or
liability on account of any action or omission of any book-entry depository,
securities intermediary or other subescrow agent employed by the Escrow Agent
than any such book-entry depository, securities intermediary or other subescrow
agent has to the Escrow Agent, except to the extent that such action or omission
of any book-entry depository, securities intermediary or other subescrow agent
was caused by the Escrow Agent's own gross negligence or willful misconduct in
breach of this Agreement.

            (d)   The Escrow Agent is hereby authorized, in making or disposing
of any investment permitted by this Agreement, to deal with itself (in its
individual capacity) or with any one or more of its affiliates, whether it or
such affiliate is acting as a subagent of the Escrow Agent or for any third
person or dealing as principal for its own account.

            (e)   Notwithstanding any term appearing in this Agreement to the
contrary, in no instance shall the Escrow Agent be required or obligated to
distribute any of the Escrowed Funds (or take other action that may be called
for hereunder to be taken by the Escrow Agent) sooner than two (2) Business Days
after (i) it has received the applicable documents required under this Agreement
in good form, or (ii) passage of the applicable time period (or both, as
applicable under the terms of this Agreement), as the case may be.

      8.    Compensation and Reimbursement of Expenses.

            (a)   The Company agrees (i) to pay or reimburse the Escrow Agent
for its reasonable attorney's fees and expenses incurred in connection with the
preparation of this Agreement (which are in the aggregate amount of $4,000) and
(ii) to pay the Escrow Agent's compensation for its normal services hereunder in
accordance with the fee schedule attached

                                      -4-
<PAGE>

hereto as Exhibit 2 and made a part hereof, which may be subject to change
hereafter by the Escrow Agent on an annual basis.

            (b)   The Company agrees to reimburse the Escrow Agent on demand for
all reasonable out-of-pocket costs and expenses incurred in connection with the
administration of this Agreement or the escrow created hereby or the performance
or observance of its duties hereunder which are in excess of its compensation
for services hereunder, including without limitation, payment of any reasonable
legal fees and expenses incurred by the Escrow Agent in connection with
resolution of any claim by any party hereunder.

            (c)   Each of the Interested Parties covenants and agrees, jointly
and severally, to indemnify the Escrow Agent (and its directors, officers and
employees) and hold it (and such directors, officers and employees) harmless
from and against any loss, liability, damage, cost and expense of any nature
incurred by the Escrow Agent arising out of or in connection with this Agreement
or with the administration of its duties hereunder, including but not limited to
reasonable attorney's fees, tax liabilities (other than income tax liabilities
associated with the Escrow Agent's fees), any liabilities or damages that may
result from any inaccuracy or misrepresentation made in any tax certification
provided to the Escrow Agent, and other costs and expenses of defending or
preparing to defend against any claim of liability unless and except to the
extent such loss, liability, damage, cost and expense shall be caused by the
Escrow Agent's gross negligence, or willful misconduct. The foregoing
indemnification and agreement to hold harmless shall survive the termination of
this Agreement.

      9.    Resignation. The Escrow Agent may at any time resign as Escrow Agent
hereunder by giving thirty (30) days prior written notice of resignation to each
of the Interested Parties. Prior to the effective date of the resignation as
specified in such notice, the Company and Oasis will issue to the Escrow Agent a
written instruction authorizing redelivery of the Escrowed Funds to a bank or
trust company that they have selected as successor to the Escrow Agent
hereunder. If no successor escrow agent is named by the Company and Oasis within
twenty (20) days after notice of resignation is received, the Escrow Agent shall
automatically return the Oasis Deposit, plus any applicable accrued interest or
other income, to Oasis via wire transfer.

      10.   No Third Party Beneficiaries. This Agreement is for the exclusive
benefit of the parties hereto and their respective permitted successors
hereunder, and shall not be deemed to give, either express or implied, any legal
or equitable right, remedy, or claim to any other entity or person whatsoever
except as provided herein.

      11.   Assignment. No party may assign any of its rights or obligations
under this Agreement without the written consent of the other parties hereto.
This Agreement shall be binding upon and inure to the benefit of the parties
hereto and their respective successors and permitted assigns.

      12.   Governing Law; Submission to Jurisdiction. This Agreement shall be
governed by and construed in accordance with the laws of the State of New York
applicable to agreements made and to be performed entirely within such state.
Each party hereby irrevocably and unconditionally consents to submit to the
exclusive jurisdiction of the courts of the State of New

                                      -5-
<PAGE>

York or the courts of the United States of America located in New York City for
any actions, suits, or proceedings arising out of or relating to this Agreement
(and the parties agree not to commence any action, suit, or proceeding relating
thereto except in such courts), and further agrees that service of any process,
summons, notice, or document by U.S. registered mail to the respective addresses
set forth above shall be effective service of process for any action, suit, or
proceeding brought against the parties in any such court. Each party hereby
irrevocably and unconditionally waives any objection to the laying of venue of
any action, suit, or proceeding arising out of this Agreement, in the courts of
the State of New York or the United States of America located in New York City,
and hereby further irrevocably and unconditionally waives its right and agrees
not to plead or claim in any such court that any such action, suit, or
proceeding brought in any such court has been brought in an inconvenient forum.

      13.   Waiver of Jury Trial. THE ESCROW AGENT AND THE INTERESTED PARTIES
HEREBY WAIVE A TRIAL BY JURY OF ANY AND ALL ISSUES ARISING IN ANY ACTION OR
PROCEEDING BETWEEN THEM OR THEIR SUCCESSORS OR ASSIGNS, UNDER OR IN CONNECTION
WITH THIS AGREEMENT OR ANY OF ITS PROVISIONS OR ANY NEGOTIATIONS IN CONNECTION
HEREWITH.

      14.   Force Majeure. The Escrow Agent shall not be responsible for delays
or failures in performance resulting from acts beyond its reasonable control.
Such acts shall include but not be limited to acts of God, strikes, lockouts,
riots, acts of war, epidemics, governmental regulations superimposed after the
fact, fire, communication line failures, computer viruses, power failures,
earthquakes or other disasters.

      15.   Waivers. No waiver by any party hereto of any condition or of any
breach of any provision of this Agreement shall be effective unless in writing
and signed by a duly authorized representative of the party granting such
waiver. No waiver by any party of any such condition or breach in any one
instance shall be deemed to be a further or continuing waiver of such condition
or breach or a waiver of any other condition or breach of any other provision
contained herein.

      16.   Amendment. This Agreement may only be amended by the written
agreement of the Company, Oasis and the Escrow Agent.

      17.   Severability. The invalidity, illegality, or unenforceability of any
provision of this Agreement shall in no way effect the validity, legality, or
enforceability of any other provision; and if any provision is held to be
unenforceable as a matter of law, the other provisions shall not be affected
thereby and shall remain in full force and effect.

      18.   Headings. The headings contained in this Agreement are for
convenience of reference only and shall have no effect on the interpretation or
operation hereof.

      19.   Reproduction of Documents. This Agreement and all documents relating
thereto, including, without limitation, (a) consents, waivers and modifications
which may hereafter be executed, and (b) certificates and other information
previously or hereafter furnished, may be reproduced by any photographic,
photostatic, microfilm, optical disk, micro-card, miniature photographic or
other similar process. The parties agree that any such reproduction shall be

                                      -6-
<PAGE>

admissible in evidence as the original itself in any judicial or administrative
proceeding, whether or not the original is in existence and whether or not such
reproduction was made by a party in the regular course of business, and that any
enlargement, facsimile or further reproduction of such reproduction shall
likewise be admissible in evidence.

      20.   Customer Identification Program. Each of the Interested Parties
acknowledge receipt of the notice set forth on Exhibit 3 attached hereto and
made part hereof that information that may be requested to verify their
identities.

      21.   Counterparts. This Agreement may be executed in two (2) or more
counterparts, each of which shall be deemed an original but all of which
together shall constitute one and the same instrument.

      22.   Entire Agreement. This Agreement constitutes the entire
understanding and agreement of the parties hereto with respect to the subject
matter hereof and supersedes all prior agreements and understandings, written or
oral, between the parties hereto with respect to the subject matter hereof.

                       [REST OF PAGE INTENTIONALLY BLANK]

                                      -7-
<PAGE>

      IN WITNESS WHEREOF, each of the parties has caused this Agreement to be
executed by a duly authorized officer as of the day and year first written
above.

THE COMPANY:                              ARTISTDIRECT, INC.

                                          By: /s/ Robert Weingarten
                                              ----------------------------------

                                          Name: Robert Weingarten
                                                --------------------------------

                                          Title: Chief Financial Officer
                                                 -------------------------------

OASIS:                                    DKR SOUNDSHORE OASIS HOLDING FUND LTD.

                                          By: /s/ Brad Caswell
                                              ----------------------------------

                                          Name: Brad Caswell
                                                --------------------------------

                                          Title: Director
                                                 -------------------------------

THE ESCROW AGENT:                         U.S. BANK NATIONAL ASSOCIATION

                                          By: /s/ Brad E. Scarbrough
                                              ----------------------------------

                                          Name: Brad E. Scarbrough
                                                --------------------------------

                                          Title: Vice President
                                                 -------------------------------

                                      -8-

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