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                                                                   EXHIBIT 10.28

                           UBL MERCHANDISER AGREEMENT

This Agreement, dated as of April 1, 1999, between Giant Merchandising
("Merchandiser"), 5655 Union Pacific Avenue, Commerce, CA 90022, and The
Ultimate Band List, LLC ("UBL"), 17835 Ventura Blvd., Suite 310, Encino, CA
91316, is being entered into in light of the following:

        A. Merchandiser is in the business of manufacturing and selling
merchandise containing the names, photographs and other likenesses, biographical
material and other personal identification (collectively, "Personal
Identification") of artists.

        B. UBL is in the business of operating an Internet web site (the "UBL
Store") that, among other things, sells merchandise containing the Personal
Identification of the various artists.

        C. Merchandiser and UBL are entering into this Agreement in order to set
forth the terms and conditions upon which Merchandiser has agreed to sell
merchandise to UBL for resale over the UBL Site.

            NOW, THEREFORE, in consideration of the foregoing and the mutual
benefits contained herein, the parties hereto agree as follows:

        1. Term: The term of this Agreement (the "Term") shall be four (4) years
commencing on the date of this Agreement.

        2. Merchandise Sales:

            (a) Merchandiser agrees to sell to UBL during the Term, for resale
over the UBL Site upon the terms and conditions set forth below, all merchandise
manufactured by or under the control of Merchandiser, except to the extent
Merchandiser does not have the right to sell such merchandise to web site retail
outlets. Merchandiser agrees to use reasonable efforts to diligently and timely
fulfill UBL's orders of merchandise under this Agreement.

            (b) Merchandiser agrees to sell all such merchandise to UBL at
Merchandiser's standard wholesale prices (i.e., the prices that Merchandiser
generally charges its other wholesale customers, subject to Merchandiser's
customary volume discounts). Merchandiser represents and warrants that attached
hereto as Exhibit A are Merchandiser's standard wholesale prices as of the
execution of this Agreement. Merchandiser shall notify UBL of any changes to its
standard wholesale prices, which changes shall only apply to merchandise ordered
by UBL after its receipt of such notice from Merchandiser. Notwithstanding the
foregoing, the parties agree and acknowledge that Merchandiser may not have
standard wholesale prices for certain collectible or limited edition items, in
which case the wholesale price shall be reasonably determined by Merchandiser.

            (c) UBL shall remit payment to Merchandiser for all product
purchased from Merchandiser under this Agreement pursuant to invoices therefor
rendered to UBL, it being

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understood that payment shall not be due earlier than the date [***] after the
arrival at the Center of the applicable product items and UBL's receipt of an
invoice from Merchandiser therefor.

            (d) Merchandiser shall use reasonable efforts to cause each person
or entity who manufactures and distributes product under license from
Merchandiser (a "Sublicensee") to sell merchandise to UBL hereunder upon [***]
payment terms and at no more than the Sublicensee's standard wholesale prices.
If a Sublicensee is unwilling to do so, Merchandiser may elect (in its
discretion) to purchase the applicable merchandise from such Sublicensee and
sell same to UBL pursuant to [***] payment terms, provided that the purchase
price charged by Merchandiser to UBL shall not be greater than the lesser of (i)
the price Merchandiser paid for such merchandise, or (ii) the lowest price the
applicable Sublicensee offered the merchandise to UBL.

            (e) Merchandiser agrees that UBL may at any time return (not for
credit) to Merchandiser any unsold products sold to UBL by Merchandiser or a
Sublicensee. [***] shall pay all costs (including all associated freight and
insurance costs) of returning any unsold products from the Center to
Merchandiser's warehouse. Merchandiser agrees to use its commercially reasonably
efforts to promptly sell such returned product at liquidation prices (subject to
Merchandiser's commercially reasonable efforts to maximize the liquidation
proceeds) and to remit to UBL, within [***] after each such sale, [***] of the
net proceeds thereof. As used in this paragraph 2(e), the term "net proceeds"
shall mean the gross amount payable or credited to Merchandiser from such sales
less Merchandiser's verifiable direct third party out-of-pocket costs in
connection with such sales.

            (f) Notwithstanding anything to the contrary contained herein, any
"Merchandiser Product" sold on the UBL Site pursuant to a particular "Store
Agreement" [as such terms are defined in the agreement between Merchandiser and
ARTISTdirect New Media, LLC, of even date herewith (the "ADMN Agreement")] shall
not be subject to this Agreement, it being the intention of the parties that all
such Merchandiser Product shall be subject to the terms and conditions of the
ADMN Agreement and the applicable Store Agreement.

        3. Warrant. In further consideration of Merchandiser's entering into and
fully performing its obligations under this Agreement, and in exchange for the
payment by Merchandiser to ARTISTdirect, LLC ("AD") of one dollar ($1.00), upon
the consummation of the transaction that currently is contemplated to occur
whereby AD will become the beneficial owner of one hundred percent 100% of the
outstanding membership interests of UBL (the "Rollup"), UBL shall cause AD to
grant to Merchandiser a warrant to acquire common units of AD representing
approximately one percent (1%) of AD's outstanding membership interests for an
aggregate exercise price not to exceed One Million Twenty-One Thousand
Forty-Five Dollars ($1,021,045), which warrant shall be subject to the terms
generally set forth in Exhibit B attached hereto; provided, however, that if the
Rollup shall not occur prior to July 31, 1999, then UBL shall then grant to
Merchandiser a warrant substantially in the form of Exhibit B attached hereto.

        4. Representations and Warranties; Indemnity:

--------------------------
[***] Confidential treatment has been requested for the bracketed portion. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

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            (a) Each party hereto represents and warrants that: (i) it has the
full right, power and authority to enter into and to perform this Agreement;
(ii) it is not under any restriction or obligation that may or will impair such
party's full performance of this Agreement; and (iii) it shall not at any time
do or authorize any person or entity to do anything inconsistent with, or
anything that might diminish, impair or interfere with any of the other party's
rights hereunder.

            (b) Each party hereto agrees to indemnify and hold the other and its
members, employees, attorneys, agents, successors, affiliates, assigns and
licensees harmless against any claim, liability, cost and expenses (including
attorneys' and accountants' fees reasonably incurred) in connection with any
breach or alleged breach of this Agreement the indemnifying party. In this
regard, the indemnified party shall not settle any claim without first notifying
the indemnifying party of the terms of any proposed settlement and obtaining its
consent thereto.

            (c) Merchandiser acknowledges that UBL is making no representations
and warranties concerning anticipated success of the UBL Store, the amount of
compensation payable to Merchandiser hereunder, and/or the current or future
value of UBL or the warrants described in paragraph 3 above. Likewise, UBL
acknowledges that Merchandiser is making no representations and warranties
concerning anticipated success of the UBL Store or the amount of compensation
payable to UBL with respect thereto.

        5. Notices:

            (a) All notices and payments to either party hereto shall be sent to
such party's address first mentioned herein, or such other address as a party
hereto may hereafter designate by notice to the other. All notices sent under
this Agreement must be in writing to be effective, and must be sent by a third
party messenger, by air courier service with a written acknowledgment of
receipt, by registered or certified mail, return receipt requested, or through a
telegraph office. The date of personal delivery, of mailing or faxing, or the
date of delivery to a telegraph office, as the case may be, of any such notice
shall be deemed the date of the giving thereof (except, with respect to notices
of change of address, the date of which will be the date of receipt by the
receiving party). Until UBL notifies Merchandiser otherwise, a copy of all
notices hereunder to UBL shall be simultaneously sent as aforesaid to Lenard &
Gonzalez LLP, 1900 Avenue of the Stars, 25th Floor, Los Angeles, CA 90067;
Attention: Allen D. Lenard, Esq. Until Merchandiser notifies UBL otherwise, a
copy of all notices hereunder to Merchandiser shall be simultaneously sent as
aforesaid to Warner Music Group Inc., 3400 Riverside Drive, 6th Floor, Burbank,
CA 91505; Attention: Legal Department.

            (b) No failure by a party hereto to perform any of its obligations
hereunder shall be deemed a breach of this Agreement, unless the party claiming
a breach has given the other party hereto notice of such alleged breach in
reasonable detail and such alleged breach is not cured within fifteen (15)
business days [ten (10) business days for non-payments] after the giving of such
notice, provided this sentence shall not apply to breaches incapable of being
cured (e.g., representations and warranties).

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        6. Miscellaneous:

            (a) All references to "this Agreement," "hereof," "herein" and words
of similar connotation include all exhibits attached hereto, unless specified
otherwise. This Agreement is intended by the parties hereto as a final
expression of their understanding and agreement with respect to the subject
matter hereof and as a complete and exclusive statement of the terms thereof;
this Agreement supersedes all prior and contemporaneous negotiations,
understandings, and agreements between the parties hereto with respect to the
subject matter hereof. The parties acknowledge and agree that neither party
hereto has made any representations or promises in connection with this
Agreement or the subject matter hereof not contained herein. Nothing in this
Agreement shall be construed to require the commission of any act contrary to
law, and wherever there is a conflict between any provisions of this Agreement
and any statute, law, ordinance, order or regulation contrary to which the
parties hereto have no legal right to contract, such statute, law, ordinance,
order or regulation shall prevail; provided that, in such event, (a) the
provision of this Agreement so affected shall be limited only to the extent
necessary to permit the compliance with the minimum legal requirements, (b) no
other provisions of this Agreement shall be affected thereby, and (c) all such
other provisions shall remain in full force and effect. The parties hereto shall
negotiate in good faith to replace any invalid, illegal or unenforceable
provision (the "Invalid Provision") with a valid provision, the effect of which
comes as close as possible to that of the Invalid Provision. This Agreement
cannot be canceled, modified, amended or waived, in part or in full, in any
manner except by an instrument in writing signed by the party to be charged. No
waiver by UBL, whether expressed or implied, of any provision of this Agreement
or default hereunder shall affect UBL's right to thereafter enforce such
provision or to exercise the right or remedy set forth in this Agreement in the
event of any other default, whether or not similar. Words in the singular number
shall include the plural, and vice versa. Whenever examples are used in this
Agreement with the words "including," "for example," "e.g.," "such as," "etc."
or any derivation thereof, such examples are intended to be illustrative and not
in limitation thereof. The paragraph headings herein are used solely for
convenience and shall not be used in the interpretation or construction of this
Agreement.

            (b) In entering into this Agreement and providing services pursuant
hereto, Merchandiser and UBL each have and shall have the status of independent
contractors. Nothing herein contained shall contemplate or constitute either
party being an agent or employee of the other party, and nothing herein shall
constitute a partnership, joint venture or fiduciary relationship between the
parties.

            (c) This Agreement shall be deemed to have been entered into in the
State of California and the validity, interpretation and legal affect of this
Agreement shall be governed by the laws of the State of California applicable to
contracts entered into and performed entirely within the State of California.
The courts located in the County of Los Angeles, California (state and federal),
only, will have jurisdiction of any controversy regarding this Agreement; any
action or other proceeding which involves such a controversy will be brought in
those courts, in California and not elsewhere.

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THE ULTIMATE BAND LIST, LLC               GIANT MERCHANDISING

By:     /s/  Marc P. Geiger               By:         /s/  [Illegible]
        -------------------------                 -------------------------
        (an authorized signatory)                 (an authorized signatory)

                              (i)

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                                    EXHIBIT A

                  MERCHANDISER'S STANDARD WHOLESALE PRICE LIST

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                                    EXHIBIT B

                           THE ULTIMATE BAND LIST, LLC

                    WARRANT TO PURCHASE 385,300 COMMON UNITS

                                                              WARRANT NO. 1999-1

THIS WARRANT HAS BEEN ACQUIRED FOR INVESTMENT AND HAS NOT BEEN REGISTERED UNDER
THE SECURITIES ACT OF 1933, AS AMENDED, OR ANY STATE SECURITIES LAWS. THIS
WARRANT MAY NOT BE SOLD, TRANSFERRED OR OTHERWISE DISPOSED OF IN THE ABSENCE OF
SUCH REGISTRATION OR AN EXEMPTION THEREFROM UNDER SAID ACT AND ANY APPLICABLE
STATE SECURITIES LAWS. THIS WARRANT IS FURTHER SUBJECT TO CERTAIN RESTRICTIONS
ON TRANSFER CONTAINED HEREIN AND IN THAT CERTAIN AMENDED AND RESTATED OPERATING
AGREEMENT OF THE ULTIMATE BAND LIST, LLC, A CALIFORNIA LIMITED LIABILITY COMPANY
DATED JULY 28, 1998, AS AMENDED.

                               WARRANT TO PURCHASE
                     LIMITED LIABILITY COMPANY COMMON UNITS

        This certifies that Giant Merchandising ("Merchandiser") is entitled, on
or after April 1, 1999, to become a Member in The Ultimate Band List, LLC, a
California limited liability company (the "Company"), on and subject to the
terms and conditions contained herein and in the "Operating Agreement" (as
defined below), with the number of Common Units in the Company set forth in
Section 1 below, in return for a capital contribution by Merchandiser to the
Company of cash consideration in an amount equal to Two and 65/100 Dollars
($2.65) per Common Unit (subject to adjustment as hereinafter provided, the
"Warrant Price").

        Except as otherwise specifically provided herein, terms used by not
otherwise defined herein shall have those meanings as set forth in that certain
Amended and Restated Operating Agreement of The Ultimate Band List, LLC, a
California limited liability company dated July 28, 1998, as amended (the
"Operating Agreement"). A true and correct copy of the Operating Agreement is
attached hereto.

        This Warrant is subject to the following terms and conditions:

1. Common Units Subject to Warrant: Vesting.

        (a) Definitions.

            (i) "Determination Date" means April 30, 2003;

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            (ii) "Merchandiser Agreement" means that certain Merchandiser
Agreement dated as of April 1, 1999 between the Company and Merchandiser;

            (iii) "Qualifying Terms" means on a consignment basis or on terms
requiring payment no earlier than the date [***] after the receipt by the
"Center" (as defined in the Merchandiser Agreement) of the applicable product
items;

            (iv) "Merchandiser Product" means merchandise provided to the
Company on Qualifying Terms by either Merchandiser or any "Sublicensee" (as
defined in the Merchandiser Agreement);

            (v) "Gross Merchandiser Product Revenue" shall mean the amount
actually received by the Company in respect of Merchandiser Product sold to
customers who place orders through the "UBL Store" (as defined in the
Merchandiser Agreement), including any directly related shipping and handling
revenues collected by the Company from such customers;

            (vi) "Deductible Amounts" shall mean all shipping and handling
costs; third party fulfillment fees, warehouse charges and related charges;
sales, use and value-added taxes; credit card and other third party service
fees; agent commissions; and any credits for returns, rebates, cancellations and
exchanges;

            (vii) "Adjusted Gross Merchandiser Product Revenue" shall mean Gross
Merchandiser Product Revenue less the Deductible Amounts; and

            (viii) "Highest Sales" means the greatest Adjusted Gross
Merchandiser Product Revenue during any period of twelve (12) consecutive
calendar months of the term of the Merchandiser Agreement (i.e., between April
1, 1999 and March 31, 2003).

        (b) This Warrant may be exercised with respect to:

            (i) 192,650 Common Units at any time on or before March 31, 2004;
and

            (ii) an additional 96,325 Common Units for each full Five Hundred
Thousand Dollars ($500,000) in Highest Sales in excess of One Million Dollars
($1,000,000); provided that the number of additional Common Units that may be
acquired pursuant to this Section 1(b)(ii) shall be subject to a maximum of
192,650 (i.e., for Highest Sales of Two Million Dollars ($2,000,000) or more).

On or before the Determination Date, the Company shall notify Merchandiser of
the Highest Sales.

2.      Term. Except for the rights conferred upon the Company pursuant to
        Section 8 below, this Warrant, and Merchandiser's right to exercise this
        Warrant, shall terminate immediately upon the first to occur of the
        following:

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        (a) the close of business (i.e., 5:00 p.m., Los Angeles time) on April
30, 2008;

        (b) the termination of the Merchandiser Agreement prior to the
expiration of the full term thereof either (i) by the Company due to a material
breach thereof by Merchandiser, which breach remains uncured for the period
specified in Section 5(b) of the Merchandiser Agreement or (ii) by Merchandiser
other than due to a material breach thereof by the Company, which breach remains
uncured for the period specified in Section 5(b) of the Merchandiser Agreement;
or

        (c) the breach by Merchandiser of any material provision of this
Warrant.

3.      Method of Exercise; Payment; Issuance of New Warrant: Transfer and
        Exchange. This Warrant may be exercised by Merchandiser, in whole or in
        part, by the surrender of this Warrant, properly endorsed, at the
        principal office of the Company at 17835 Ventura Blvd., Suite 310,
        Encino, CA 91316 (or at such other location within the State of
        California or the State of New York as the Manager may advise
        Merchandiser in writing), and by (a) payment to the Company in cash or
        immediately available funds of the Warrant Price of the Common Units
        being purchased, and (b) delivery to the Company of a customary
        investment letter executed by Merchandiser, representing and warranting
        that the Common Units are being acquired for Merchandiser's own account,
        for investment purposes only, and not with a view to the distribution,
        resale or other distribution thereof in violation of applicable
        securities laws, and acknowledging the issuance and transfer of the
        Common Units are subject to the requirements of federal and state
        securities laws. Merchandiser, in lieu of exercising this Warrant for a
        specified number of Common Units (the "Exercised Units") and paying the
        aggregate exercise price therefor (the "Exercise Price"), may elect to
        receive a number of Common Units equal to the number of Exercised Units,
        minus a number of Common Units having an aggregate "Fair Market Value"
        (as defined below) equal to the Exercise Price. After any such election,
        the number of Common Units covered by this Warrant shall be deemed
        automatically reduced by the number of Exercised Shares. For purposes of
        this Warrant, "Fair Market Value" means (a) if the Common Units are then
        publicly traded, the closing sale price of the Common Units on its
        principal stock exchange or market system (or the average of the closing
        bid and asked prices, if closing sales prices are not reported) for the
        ten (10) consecutive trading days immediately prior to the date of any
        such "net exercise," or (b) in all other cases, as determined by the
        Manager in its sole, good faith discretion. In the event of any
        exercise, or any such "net exercise," of less than all of the rights
        represented by this Warrant, the Company shall issue to Merchandiser a
        new warrant evidencing the ability of Merchandiser to purchase the
        balance of the number of Common Units from the Company, and shall
        deliver such warrant to Merchandiser promptly following such partial
        exercise. The Company agrees that the Common Units issuable to
        Merchandiser upon exercise of this Warrant and Merchandiser's making the
        applicable payment to the Company in respect thereof, Merchandiser and
        the Common Units issued to Merchandiser with respect to such exercise
        shall become subject to the terms and conditions of the Operating
        Agreement, including without limitation, the obligation to sell Common
        Units and the restrictions on transfer of Common Units contained
        therein. In this regard, Merchandiser acknowledges that it shall only
        become a Member and be entitled to the rights as a Member once
        Merchandiser validly exercises

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        this Warrant in accordance with the terms hereof and executes a
        signature page to the Operating Agreement whereby it agrees to be bound
        by all of the terms thereof, excluding the non-competition covenant
        contained in Section 3.10 thereof, from which Merchandiser shall be
        exempted.

4.      Due Authorization and Issuance. The Company covenants and agrees that
        any and all of the Common Units issued to Merchandiser in accordance
        with the terms hereof will, upon such issuance, be duly authorized,
        validly issued and free from all preemptive rights of any holder of
        Common Units in the Company, free and clear of all taxes, liens and
        charges with respect to such issuance. The Company further covenants and
        agrees that, during the period within which this Warrant may be
        exercised, the Company will take no action that would prohibit the
        issuance of Common Units required to be issued in accordance with the
        terms and conditions hereof on such exercise.

5.      Fractional Common Units. No fractional Common Units shall be issued in
        connection with any exercise hereunder but in lieu of such fractional
        Common Units, the Company shall make a cash payment therefor upon the
        basis of the fair market value of the Common Units, as determined by the
        Manager in its sole, good faith discretion.

6.      Certain Adjustments.

        (a) If the outstanding Common Units are changed into or exchanged for a
different number or kind of securities of the Company or a successor entity
(including a "C-corporation" that becomes the successor or parent of the Company
in connection with a roll-up or similar exchange transaction in connection with
an initial public offering) through a capital reorganization or
reclassification, or if the number of outstanding Common Units is changed
through a split of Common Units, reverse split of Common Units or issuance of a
Common Unit dividend, then a reasonable and appropriate adjustment shall be made
by the Company in (i) the number or kind of Common Units that may be purchased
pursuant to the exercise of this Warrant, and (ii) the number, exercise price,
or kind of securities subject to this Warrant. Any such adjustment in this
Warrant, however, shall be made without a change in the total price applicable
to the unexercised portion of this Warrant but with a corresponding adjustment
in the price for each Common Unit covered by this Warrant. In making such
adjustments, or in determining that no such adjustments are necessary, the
Company may rely upon the advice of counsel and accountants to the Company, and
the reasonable determination of the Company shall be binding.

        (b) Upon (i) the dissolution, liquidation, or sale of all or
substantially all of the business, properties and assets of the Company, (ii)
any reorganization, merger, consolidation, sale or exchange of securities in
which the Company does not survive, (iii) any reorganization, merger,
consolidation, sale or exchange of securities in which the Company does survive
and any of the Company's members have the opportunity to receive cash,
securities of another' entity and/or other property in exchange for their Common
Units (other than a "roll-up" or similar exchange transaction in connection with
an initial public offering), or (iv) any acquisition by any person or group (as
defined in Section 13(d) of the Securities Exchange Act of 1934, as amended), of
beneficial ownership of more than fifty percent (50%) of the Company's then
outstanding Common Units (each of the events described in clauses (i), (ii),
(iii), or (iv) is

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referred to herein as an "Extraordinary Event"), this Warrant shall terminate
unless it survives the Extraordinary Event pursuant to Section 6(d) below.

        (c) Merchandiser shall have the right until ten (10) days before the
effective date of any Extraordinary Event to exercise, in whole or in part, this
Warrant, but only to the extent to which it is exercisable pursuant to the
provisions hereof. In this regard, the Company shall notify Merchandiser in
writing of the Company's intent to engage in any Extraordinary Event on or
before the date (the "Notice Date") that is no less than thirty (30) days before
the effective date of such Extraordinary Event. In addition, notwithstanding
anything to the contrary contained herein, if an Extraordinary Event shall occur
during the term of the Merchandiser Agreement, then, solely for purposes of
determining the extent to which this Warrant is exercisable in accordance with
this Section 6(c), Highest Sales shall be determined either: (i) with reference
to each period of twelve (12) consecutive calendar months of the term of the
Merchandiser Agreement prior to the Notice Date; or (ii) if fewer than twelve
(12) months have elapsed since the commencement of the term of the Merchandiser
Agreement, on an annualized basis.

        (d) If an Extraordinary Event occurs during the term of the Merchandiser
Agreement, then the Company shall be obligated to either, in its sole
discretion: (i) cause this Warrant to survive such Extraordinary Event or (ii)
cause the surviving entity (which may be the Company), or any other entity that,
after giving effect to the Extraordinary Event, owns, directly or indirectly,
fifty percent (50%) or more of the Company's then outstanding Common Units, to
tender to Merchandiser a substitute warrant to purchase units or other equity
interests in such entity containing terms and provisions substantially
preserving, in the reasonable, good faith discretion of the Company, the rights
and benefits of this Warrant to the extent then outstanding (a "Substitute
Warrant"). If an Extraordinary Event occurs after the term of the Merchandiser
Agreement, in its sole and absolute discretion, the Company may permit this
Warrant to survive such Extraordinary Event. In addition, if an Extraordinary
Event occurs after the term of the Merchandiser Agreement, in its sole and
absolute discretion, the surviving entity (which may be the Company), or another
entity, may, but shall not be so obligated, tender to Merchandiser a Substitute
Warrant.

        (e) The grant of this Warrant shall not affect in any way the right or
power of the Company to make adjustments, reclassification or changes in its
capital or business structures or to merge, consolidate, dissolve, or liquidate
or to sell or transfer all or any part of its business or assets or undertake
any other permitted limited liability company action.

        (f) Upon the occurrence of each adjustment of this Warrant pursuant to
this Section 6, the Company at its expense shall promptly compute such
adjustment or readjustment in accordance with the terms hereof and furnish to
Merchandiser a certificate setting forth such adjustment or readjustment and
showing in detail the facts upon which such adjustment or readjustment is based.
The Company shall, upon the written request of Merchandiser, furnish or cause to
be furnished to Merchandiser a like certificate setting forth: (i) such
adjustments and readjustments; (ii) the applicable Exercise Price at the time in
effect; and (iii) the number of Common Units, if any, and the amount, if any, of
other securities or property that at the time would be received upon the
exercise of this Warrant.

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        (g) Other Action Affecting Common Units. The Company will not, by
amendment of its Articles of Organization or the Operating Agreement, or through
any reorganization, recapitalization, transfer of assets, consolidation, merger,
dissolution, issue or sale of securities, dividend or other distribution of cash
or property, or any other voluntary action, avoid or seek to,: avoid the rights
granted to Merchandiser hereunder or the observance or performance of any of the
terms to be observed or performed hereunder by the Company, but will at all
times in good faith assist in the carrying out of all the provisions hereof, and
in the taking of all such actions as may be necessary or appropriate in order to
protect the rights of Merchandiser as set forth herein against impairment.

7.      Payment of Taxes. The Company will pay all taxes (other than taxes based
        upon income) and other governmental charges that may be imposed with
        respect to the issue or delivery of Common Units upon exercise of this
        Warrant.

8.      Drag-Along Obligation.

        (a) Definition of Equity Securities. For purposes of this Warrant,
"Equity Securities" shall mean all (i) Units, all rights, options or warrants to
purchase Units, all securities of any type whatsoever that are convertible into
or exchangeable for Units, and all rights, options or warrants to purchase
securities that are convertible into or exchangeable for Units and (ii) all
shares, options, warrants, general or limited partnership interests, limited
liability company membership interests, participations or other equivalents
(regardless of how designated) of or in a corporation, partnership, limited
liability company or equivalent entity that are issued in exchange for any of
the items described in the preceding clause (ii).

        (b) The Obligation. Notwithstanding anything to the contrary contained
herein, if the Manager finds an acquirer for all or any portion of its interest
in the Company (whether such acquisition is by way of purchase of assets, Common
Units or successor Equity SECURITIES, merger, recapitalization or other form of
transaction, and including, without limitation, a roll-up transaction that is
for the purpose of a reorganization among the Company and its Affiliates), then,
at the request of the Manager, Merchandiser shall sell or otherwise transfer a
corresponding portion of any Common Units (or successor Equity Securities) then
held by Merchandiser to such acquirer on the same terms and conditions as apply
to the sale or other transfer by the Manager. Merchandiser to such acquirer on
the same terms and conditions as apply to the sale or other transfer by the
Manager. Merchandiser further agrees timely to take such other actions as the
Manager may reasonably request in connection with the approval of the
consummation of such sale or other transfer, including, without limitation,
voting in favor of such sale or other transfer and waiving any dissenters'
rights, executing such agreements, powers of attorney, voting proxies or other
documents and instruments as may. be necessary or desirable to consummate such
sale or other transfer, and, in the event that such sale or other transfer is
structured as a recapitalization, transferring and retaining such portion of
Common Units (or successor Equity Securities) and rights under this Warrant as
may be requested by the Manager.

9.      Tag-along Right.

        (a) Definition of Excluded Transferee. For purposes of this Warrant,
"Excluded Transferee" shall mean: (i) Marc Geiger; (ii) Donald Muller; (iii) a
spouse, descendant or parent

                                       6
<PAGE>   13

of Marc Geiger or Donald Muller; (iv) a descendant of any Person listed in
clauses (i), (ii) or (iii) above; (v) a trust for the sole benefit of any one or
more of the Persons listed in clauses (i), (ii), (iii) or (iv) above; (vi)
ARTISTdirect New Media, LLC ("ADNM"); or (vii) any Affiliate of any Person
listed in clauses (i), (ii), (iii), (iv), (v) or (vi) above.

        (b) The Right. If ADNM, or any direct or indirect successor, assignee or
transferee of ADNM (each a "Transferor"), proposes alone or with others to
Transfer, directly or indirectly, to any Person that is not an Excluded
Transferee, any Equity Securities (each, a "Subject Interest") that represent a
fully-diluted Percentage of twenty percent (20%) or more, in a single
transaction or series of transactions, and the Common Units (or substitute
Equity Securities) issued to Merchandiser) pursuant to this (or any successor)
Warrant (the "Securities") include (at such time or upon exercise, conversion or
exchange) any Equity Securities of the same class as the Subject Interest (the
"Subject Interest Class"), the would-be Transferor shall provide Merchandiser
with not less than thirty (30) days' prior written notice of such proposed sale,
which notice shall include all of the material terms and conditions of such
proposed sale and which shall identify such purchaser (the "Sale Notice"), and
Merchandiser shall have the option, exercisable by written notice to the
Transferor within twenty (20) days after the receipt of the Sale Notice, to
participate in such transaction pro rata with the Transferor at the same time
as, and upon the same terms and conditions as (including all direct or indirect
consideration) the Transferor Transfers his Equity Securities in the Company.
Merchandiser may sell all or any portion of the Securities held by Merchandiser
(or issuable to Merchandiser upon exercise, conversion or exchange of any of the
Securities) that are of the class of Equity Securities that includes the Subject
Interest Class (the "Merchandiser's Securities") equal to the product obtained
by multiplying (i) the Subject Interest by (ii) a fraction, the numerator of
which is Merchandiser's Securities and the denominator of which is the total
number of Equity Securities of the Subject Interest Class then owned by the
Transferor, Merchandiser, and any other Person that has tag-along rights with
respect to the proposed Transfer by Transferor. To the extent that Merchandiser,
or any other Person that has tag-along rights with respect to the proposed
Transfer by Transferor, shall exercise its tag-along right, the number of Equity
Securities that the Transferor may Transfer in the transaction shall be
correspondingly reduced.

        (c) Expenses. In any transaction in which Merchandiser sells or
otherwise disposes of any of the Merchandiser's Securities pursuant to this
Section 9, Merchandiser shall bear its pro rata share of the reasonable expenses
incurred by the Transferor in connection with the sale of the Subject Interest.

        (d) Exempt Sales. The rights and obligations set forth in this Section 9
shall not apply to any sale of Equity Securities made in connection with or
following an initial public offering of common stock of the corporate successor
of the Company.

10.     Transferability of Warrant.

        (a) Except as set forth in Section 10(b) below, this Warrant may not be
sold, conveyed, transferred, alienated, donated, encumbered or otherwise
disposed of by Merchandiser and, accordingly, any purported such transaction in
violation of this Section 10 shall be void ab initio, of no force or effect.

                                       7
<PAGE>   14

        (b) Notwithstanding Section 10(a) above, but subject to applicable
securities laws, Merchandiser may transfer all, but not less than all, of this
Warrant, to any Affiliate of Merchandiser, provided that no such transfer shall
be effective until the transferee agrees in writing to be bound by all of the
provisions of this Warrant, including Section 8 above.

11.     Investment Representation. Merchandiser represents and warrants to the
        Company that Merchandiser is acquiring this Warrant for Merchandiser's
        own account for investment and not with a view to, or for resale in
        connection with, any distribution thereof. Merchandiser acknowledges
        that this Warrant and the Common Units that may be purchased under this
        Warrant have not been, registered under the Securities Act, by reason of
        a specific exemption from the registration provisions of the Securities
        Act that depends upon, among other things, the bona fide nature of the
        investment intent of Merchandiser as expressed herein.

12.     Representation Regarding Exercise Price. The Company hereby represents
        and warrants to Merchandiser that the Exercise Price was calculated by
        applying a value of the Company that does not exceed the value of the
        Company that applied in the Company's most recent issuance of Common
        Units to an unrelated third party.

13.     Amendment and Waiver; Successors. This Warrant may only be amended or
        supplemented, and any waiver or departure from the provisions hereof may
        only be given, with the consent of the Manager and Merchandiser. All of
        the covenants and provisions of this Warrant by or for the benefit of
        the Company and Merchandiser shall bind and inure to the benefit of them
        and their respective permitted successors and assigns hereunder.

14.     Notices. All notices required by this Warrant to merchandiser shall be
        sent to Giant Merchandising, 5655 Union Pacific Avenue, Commerce, CA
        90022, or such other address as Merchandiser may hereafter designate by
        notice to the Company. All notices sent under this Agreement to the
        Company or the Manager shall be sent to the address indicated in Section
        3 above. All notices required by this Warrant must be in writing to be
        effective, and must be sent by a third party messenger, by air courier
        service with a written acknowledgment of receipt, by registered or
        certified mail, return receipt requested, or through a telegraph office.
        The date of personal delivery, of mailing, or the date of delivery to a
        telegraph office. The date of any such notice shall be deemed the date
        of the giving thereof (except, with respect to notices of change of
        address, the date of which will be the date of receipt by the receiving
        party). Until the Company notifies Merchandiser otherwise, a copy of all
        notice hereunder to the Company shall be simultaneously sent as
        aforesaid to Lenard & Gonzalez LLP, 1900 Avenue of the Stars, 25th
        Floor, Los Angeles, CA 90067; Attention: Allen D. Lenard, Esq.

15.     Descriptive Headings and Governing Law. The descriptive headings of the
        several paragraphs of this Warrant are inserted for convenience only and
        do not constitute a part of this Warrant. This Warrant shall be
        construed and enforced in accordance with, and the rights of the parties
        shall be governed by, the laws of the State of California.

                                       8
<PAGE>   15

16.     Lost Warrant. The Manager and the Company represent and warrant to
        Merchandiser that upon receipt of evidence reasonably satisfactory to
        the Manager and the Company of the loss, theft, destruction or
        mutilation of this Warrant and, in the case of any such loss, theft or
        destruction upon receipt of an indemnity reasonably satisfactory to the
        Manager and the Company, or in the case of any such mutilation upon
        surrender and cancellation of such Warrant, the Manager and the Company
        will make and deliver a new Warrant in lieu of the lost, stolen,
        destroyed or mutilated Warrant.

               IN WITNESS WHEREOF, Merchandiser, the Company and the Manager
have caused this Warrant to be duly executed and issued by their respective
officers thereunto duly authorized as of the 1st day of April, 1999.

"COMPANY"                                   "MERCHANDISER"

THE ULTIMATE BAND LIST, LLC                 Giant Merchandising

By:   /s/  Marc P. Geiger                   By:
   -------------------------------             ------------------------------
Its:    Co-Chief Executive Officer                 (an authorized signatory)

"MANAGER"

ARTISTdirect New Media, LLC

By:    /s/  Marc P. Geiger
   -------------------------------
Its:    Co-Chief Executive Officer

                                       9<PAGE>   1
                                                                   EXHIBIT 10.32

                                                                        12.15.99

                        INTERNET VIDEO LICENSE AGREEMENT

THIS AGREEMENT is made as of the 20th day of December, 1999 BETWEEN:

1.       MAVERICK RECORDING COMPANY ("Maverick") of 9348 Civic Center Drive,
         Beverly Hills, California 90210; and

2.       ARTISTdirect, INC. ("ADI") of 17835 Ventura Boulevard, Suite 310,
         Encino, California 91316.

BACKGROUND

A.       WHEREAS, Maverick, in order to promote the sale and distribution of
         phonorecords and audio-visual music products throughout the "Territory"
         (as hereinafter defined in subparagraph 1.01(o)), licenses the use of
         "Maverick Videos" (as hereinafter defined in subparagraph 1.01(q)); and

B.       WHEREAS, ADI intends to "Stream" (as hereinafter defined in
         subparagraph 1.01(l)) Maverick Videos from "Licensed Music Sites" (as
         hereinafter defined in subparagraph 1.01(e)).

C.       NOW THEREFORE, the parties hereto have agreed to the terms and
         conditions set forth below with respect to the non-exclusive use by ADI
         of Maverick Videos on Licensed Music Sites.

THE PARTIES AGREE AS FOLLOWS:

1.       DEFINITIONS AND INTERPRETATION

1.01     Definitions Unless defined elsewhere in this Agreement, capitalized
         terms shall have the meanings ascribed to them below:

(a)      "ENDUSER DEVICE": any device (such as a computer or a Web TV) which is
         capable of receiving and playing/displaying the audio-visual output of
         a Streamed Video.

(b)      "EXCERPT": means a continuous audio-visual portion of a Maverick Video
         where no more than 30 seconds thereof may be accessed by the enduser or
         viewed by a viewer.

(c)      Intentionally deleted.

                                       1
<PAGE>   2

(d)      "INTERNET": the wide area cooperative network of university, corporate,
         government and private computer networks communicating through
         Transmission Control Protocol/Internet Protocol which is commonly
         referred to as the Internet.

(e)      "LICENSED MUSIC SITE": any Music Site which: (i) (A) is either wholly-
         or partially-owned by ADI; and (B) is wholly-programmed and operated by
         ADI; and (C) is prominently and exclusively branded with the tradename,
         trademark or logo of ADI; or (ii) (A) is operated and managed by ADI
         and (B) is subject to a comprehensive written web site agreement
         between ADI and a recording artist (or such recording artist's
         furnishing company) ("Artist") of the type which ADI typically enters
         into with recording artists as of the date hereof; provided, that such
         Artist is a recording artist then-currently signed to an exclusive
         recording agreement with Maverick, which such Music Site on a gratis
         basis (A) Streams Videos in a sequence designated by ADI on a
         continuous 24-hour, seven-day-a-week basis (i.e., as part of a
         "Pre-Programmed Stream") or (B) Streams particular Videos at the demand
         of an enduser (i.e., as part of an "On-Demand Stream"). Without
         limiting the foregoing, "Licensed Music Site" shall include all of
         those "pages" on a Music Site: (w) that constitute "home pages"; (x)
         that direct an enduser to a Video; (y) through which an enduser
         navigates in order to view a Video; or (z) from which an enduser can
         Stream a Video.

(f)      "MASTER": a first generation color copy of the fully-edited titled and
         assembled electronic master of a Maverick Video (a "Videotape Copy")
         or, at Maverick's election, a copy of such electronic master digitized
         by Maverick in a format compatible with ADI's technical requirements (a
         "Digitized Copy").

(g)      "MUSIC SITE": a non-subscription, music audio-visual programming
         service which may be advertiser-supported, which: (i) is delivered over
         the Internet (which may also include delivery via broadband
         technology); (ii) is transmitted from fileservers exclusively located
         in the United States using Streaming technologies; (iii) uses English
         as the principal language spoken by hosts or used in textual, graphic
         or interstitial programming; and (iv) if such service transmitted
         digital audio data only, rather than digital audio-visual data (other
         than with respect to On-Demand Streams) would be subject to statutory
         licensing pursuant to Paragraph 2, Subsection d, Section 114 of title
         17, United States Code (the "Digital Millennium Copyright Act").

(h)      "ON-DEMAND STREAM FRACTION": a fraction, the numerator of which is that
         number of transmissions to an individual enduser of Maverick Videos (in
         whole or in part) other than Excerpts on a particular Licensed Music
         Site as part of an On-Demand Stream and the denominator of which is
         that number of transmissions to an individual enduser of Videos (in
         whole or in part),

                                       2
<PAGE>   3

         including Maverick Videos, on such particular Licensed Music Site as
         part of an On-Demand Stream, as determined in a calendar quarter.

(i)      "ON-DEMAND STREAM RECEIPTS":  gross advertising monies (or the
         monetary value of any non-monetary advertising consideration) actually
         received, directly or indirectly, by ADI or ADI's affiliates in
         connection with the page of a Licensed Music Site that provides an
         On-Demand Stream of one or more Maverick Videos less any actual
         advertising agency or media sales fees directly related thereto.

(j)      "PRE-PROGRAMMED STREAM FRACTION": a fraction, the numerator of which is
         that number of transmissions to an individual enduser of Maverick
         Videos (in whole or in part) other than Excerpts on a particular
         Licensed Music Site as part of a Pre-Programmed Stream and the
         denominator of which is that number of transmissions to an individual
         enduser of Videos (in whole or in part), including Maverick Videos, on
         such particular Licensed Music Site as part of a Pre-Programmed Stream,
         as determined in a calendar quarter.

(k)      "PRE-PROGRAMMED STREAM RECEIPTS":  gross advertising monies (or the
         monetary value of any non-monetary advertising consideration) actually
         received, directly or indirectly, by ADI or ADI's affiliates in
         connection with the page of a Licensed Music Site that provides a
         Pre-Programmed Stream of one or more Maverick Videos less any actual
         advertising agency or media sales fees directly related thereto.

(l)      "STREAM(s)(ed)(ing)": a public performance of any duration via the
         Internet that permits an enduser to view data contemporaneously with
         its reception by an Enduser Device in such a manner that the data is
         not copied, duplicated or stored in such Enduser Device except by way
         of temporary buffering.

(m)      "TERM": shall commence on the date of this Agreement and end on
         December 31, 2001, unless sooner terminated as set forth herein.

(n)      "TERM YEAR": each separate, consecutive 12-month period of the Term.

(o)      "TERRITORY":  worldwide.

(p)      "VIDEO": an audio-visual work embodying the sound recording of a single
         musical composition in synchronization with visual images intended
         primarily for promotional use.

(q)      "MAVERICK VIDEO": any Video with respect to which Maverick has
         promotional exhibition rights in the Territory (a "Controlled Video")
         that Maverick wishes to license to unaffiliated third parties for
         broadcast television exhibition or to unaffiliated third party Music
         Sites for Streaming, provided that the soundtrack of such Video is a
         duplicate of a sound recording owned or controlled for the Territory by
         Maverick. "Maverick Videos" shall not include: (i) any Videos
         commercially exhibited prior to the commencement of the Term; or (ii)
         any Video which is part of a long-form audio-visual program and is not
         distributed or licensed by Maverick separately therefrom. Maverick
         shall have the right to elect in Maverick's sole discretion that
         Controlled Videos from up to [***]* albums released in any Term Year
         not become Maverick Videos for the purposes of this Agreement until 90
         days following the date which is the earlier of: (A) the date on which
         the Video is initially Streamed under Maverick's authority by an
         unaffiliated third party; or (B) the date on which the Video is
         initially exhibited under Maverick's authority on television in the
         U.S.

----------
* Confidential treatment has been requested for the bracketed portion. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       3
<PAGE>   4

1.02     Headings The headings used in this Agreement are for ease of
         reference only and shall have no effect on the interpretation or
         construction of this Agreement.

1.03     Plural/Singular/References The plural may include the singular and the
         singular may include the plural and this Agreement shall be interpreted
         in this regard as the context may require. References to paragraphs and
         subparagraphs are to paragraphs and subparagraphs of this Agreement,
         and references to any agreement or other instrument shall be deemed to
         include references to that agreement or other instrument as varied or
         replaced from time to time.

2.       GRANT OF RIGHTS

2.01     Duplication Rights During the Term, subject to the terms and conditions
         of this Agreement, Maverick grants to ADI a non-exclusive license to
         digitally encode and duplicate Maverick Videos in their entirety for
         duplication on ADI's fileservers for the sole purpose of producing
         programming containing Maverick Videos for Streaming on Licensed Music
         Sites.

2.02     Streaming Right Subject to the terms and conditions of this Agreement
         and any contractual restrictions imposed upon Maverick in connection
         with Maverick Videos of which Maverick has advised ADI in writing with
         reasonable advance notice, during the Term Maverick grants to ADI a
         non-exclusive license: (a) to permit endusers to access via Streaming
         Maverick Videos in their entirety as part of a Pre-Programmed Stream on
         a Licensed Music Site; and (b) to permit endusers to access via
         Streaming Maverick Videos in their entirety as part of an On-Demand
         Stream on a Licensed Music Site; provided, however, that endusers shall
         not be able to Stream more than one Maverick Video at a time as part of
         a continuous transmission (i.e., endusers shall not be able to Stream a
         series of Maverick Videos as part of one continuous transmission).
         Continuously during the Streaming of any Maverick Video as part of an
         On-Demand Stream and in a space that is "above the fold," near or
         adjacent to, and on the same page as such Maverick Video, ADI shall, at
         ADI's sole cost and expense, provide a button permitting an enduser
         "one-click" access to the "home page" for Maverick's official site of
         the applicable artist (or, if the artist does not have an official
         site, Maverick's site), provided that Maverick delivers to ADI, prior
         to or no later than Maverick's delivery of the applicable Maverick
         Video, the foregoing "home page" information. If other links are
         provided to third-party sites for the same artist, then Maverick's link
         shall be the first listed and the most prominent.

2.03     Advertising and Promotion Subject to the terms and conditions of this
         Agreement and any contractual restrictions imposed upon Maverick in
         connection with Maverick Videos of which Maverick has advised ADI in
         writing, during the Term, ADI may utilize Excerpts in any and all media
         to

                                       4
<PAGE>   5

         advertise, promote and publicize the exhibition of Maverick Videos on
         the Licensed Music Sites; provided, however, that, without Maverick's
         written consent, no more than one Excerpt per artist may be used for
         such purpose.

2.04     Names and Likenesses Subject to the terms and conditions of this
         Agreement and any contractual restrictions imposed upon Maverick in
         connection with Maverick Videos of which Maverick has advised ADI in
         writing with reasonable advance notice, during the Term, ADI may use
         the name and Maverick-approved or -supplied likenesses, such approval
         not to be unreasonably withheld or delayed, of such artist for the
         purposes of advertising, promoting or publicizing the Streaming by ADI
         of such Maverick Video on the applicable Licensed Music Site, but not
         in a manner which implies an endorsement of any service (including,
         without limitation, Licensed Music Sites) or product without Maverick's
         prior consent.

2.05     Reservation of Rights

(a)      As between Maverick and ADI, Maverick retains all ownership rights in
         Masters and Maverick Videos including, without limitation, all
         copyrights and trademarks in Masters and Maverick Videos; provided,
         however, that Maverick shall not use in any manner any Digitized Copy
         of a Maverick Video created by or at the direction of ADI, unless
         Maverick has made payment therefor in accordance with paragraph 4.01.

(b)      ADI shall not have any rights in Maverick Videos other than as
         expressly provided in this Agreement.

2.06     Withdrawal Rights

         ADI agrees that ADI's rights to Stream any Maverick Video may be
         terminated by Maverick upon one week's prior written notice to ADI if
         any of the following conditions are met:

(a)      If Maverick, in Maverick's good faith business judgment believes that
         such termination is necessary for significant artist relations
         purposes; or

(b)       If Maverick's rights in the Maverick Video terminate; or

(c)      If Maverick is notified or otherwise becomes aware of an apparently
         bona fide third-party claim that the transmission of the Maverick Video
         infringes rights owned by others.

                                       5
<PAGE>   6

3.       PROHIBITIONS ON ADI

         ADI shall only have the right to exploit or use Maverick Videos as
         specifically authorized in Paragraph 2 of this Agreement, or as
         otherwise agreed to by Maverick in writing in its sole discretion, and
         may not exploit or use Maverick Videos in any other manner. Without
         limiting the foregoing, unless Maverick agrees otherwise in writing,
         during the Term, neither ADI nor any party acting on behalf of ADI
         shall, directly or indirectly:

(a)      copy or duplicate any Maverick Video except as ADI may reasonably
         require to exercise ADI's rights under this Agreement;

(b)      Stream (or encode to permit the Streaming of) the audio portion of any
         Maverick Video at a transmission rate greater than [***]* or the video
         portion of any Maverick Video at a transmission rate greater than
         [***]*;

(c)      Stream the soundtrack of any Maverick Video separately from the visual
         portion thereof;

(d)      Stream the visual portion of any Maverick Video separately from the
         soundtrack thereof, except to the extent that ADI uses only the visual
         portion of an Excerpt to exercise ADI's rights under subparagraph 2.03
         above without any soundtrack whatsoever;

(e)      Stream any Maverick Video other than in conjunction with the sequence
         of images originally synchronized with the sound recording included
         thereon;

(f)      Stream any Maverick Video on a "pay-per-view" or "pay-per-play" basis;

(g)      exhibit any advertisement or commercial of any nature during or
         associated with the Streaming of any Maverick Video in a manner which
         reasonably implies an endorsement by the artist whose performances are
         contained on such Maverick Video;

(h)      license or authorize a third party (whether or not affiliated with ADI)
         to "deep link" to a non-Licensed Music Site for the purpose of
         Streaming a Maverick Video; or

(i)      except as expressly set forth in Paragraph 5, edit or otherwise alter
         any Maverick Video, including, without limitation, the deletion or
         erasing of any signal now or hereafter contained therein to facilitate
         the automatic identification and/or logging of Maverick Videos so
         Streamed and/or to restrict

----------
* Confidential treatment has been requested for the bracketed portion. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       6
<PAGE>   7

         the reproduction of Maverick Videos so Streamed (a "Protective
         Signal").Should ADI become aware that any party (whether or not acting
         on behalf of ADI) is circumventing the provisions of this Paragraph 3
         (a "Circumvention Event"), ADI shall promptly notify Maverick in
         writing thereof and ADI shall, at ADI's sole cost and expense, use
         ADI's commercially reasonable efforts to prevent such circumvention.

4.       MAVERICK VIDEOS

4.01     Servicing of Masters In respect of each Maverick Video, Maverick shall
         make a Master available to ADI for collection at ADI's expense, no
         later than the date Maverick makes the applicable Maverick Video
         available for delivery to other unaffiliated third parties. Should
         Maverick provide ADI with a Master in Videotape Copy form, ADI shall
         provide Maverick, at Maverick's request, with a Digitized Copy of such
         Master provided that Maverick pays ADI's actual duplication and
         shipping expenses in connection therewith.

4.02     Treatment of Maverick Videos and Masters

         ADI shall:

(a)      maintain all Masters and all copies of Masters on ADI's premises and
         safeguard the same from any loss, damage, theft, unauthorized use,
         copying, storage or duplication by others;

(b)      be solely responsible for any loss, theft or damage to Masters and
         copies of Masters in their possession and any unauthorized use,
         copying, storage or duplication by others thereof; and

(c)      upon the expiration of the Term or termination of this Agreement, at
         Maverick's election, ADI shall either: (i) (A) to the extent that
         Maverick made Digitized Copies of any Masters and provided them to ADI
         hereunder, return all such Masters and copies of such Masters to
         Maverick at ADI's expense; (B) to the extent that ADI made Digitized
         Copies of any Masters hereunder, but has not provided Digitized Copies
         of such Masters to Maverick pursuant to subparagraph 4.01 above, return
         all such Masters and copies of such Masters to Maverick and Maverick
         shall pay ADI's actual duplication and shipping expenses; and (C) to
         the extent that ADI made Digitized Copies of any Masters hereunder and
         has provided Digitized Copies of such Masters to Maverick pursuant to
         subparagraph 4.01 above, return all such Masters and copies of such
         Masters to Maverick at ADI's expense; or (ii) or destroy all Masters
         and all copies of Masters at ADI's sole cost and expense, and provide
         Maverick with a written affidavit verifying such destruction.

                                       7
<PAGE>   8

5.       ADI'S UNDERTAKINGS

         During the Term, ADI shall have the obligation, at ADI's sole cost and
         expense:

(a)      to exhibit the following information continuously during the Streaming
         of each Maverick Video in a space adjacent to the Maverick Video,
         provided that Maverick submits such information to ADI in a timely
         manner:

         (i)   the title of the musical composition on the Maverick Video;

         (ii)  the title of the record or home video that includes the
               performance of the musical composition contained in the Maverick
               Video;

         (iii) the name of the artist performing the musical composition
               contained in the Maverick Video;

         (iv)  the name of the record company and the URL of its "home page";
               and

         (v)   the name of the motion picture, if any, from which the Maverick
               Video is derived.

(b)      to obtain public performance rights licenses, if necessary, covering
         the performance of the musical compositions in Maverick Videos; and

(c)      to transmit as part of each Maverick Video Streamed on Licensed Music
         Sites any Protective Signal contained in the Maverick Videos; provided,
         however, that the transmission of such Protective Signal does not
         represent a recurrent and unreasonable cost to ADI and in no way leads
         to the deterioration of Streaming quality of Maverick Videos.

6.       MAVERICK'S UNDERTAKINGS

         Maverick shall deliver to ADI, at Maverick's expense (where available
         and reasonably contemporaneously with the delivery of the relevant
         Masters) artwork, promotional material, biographical material and other
         information in relation to Maverick Videos and the relevant artists, to
         be used by ADI solely for promotional purposes on Licensed Music Sites.

7.       COMPENSATION

7.01     Royalties ADI shall pay to Maverick royalties equal to:  [***]*.

----------
* Confidential treatment has been requested for the bracketed portion. The
confidential redacted portion has been omitted and filed separately with the
Securities and Exchange Commission.

                                       8
<PAGE>   9

7.02     Banner Ads

         ADI shall make "Banner Ads" (the "Banner Ads") available to Maverick at
         ADI's standard rate card cost therefor, or at such other rate as the
         parties shall mutually agree.

8.       ACCOUNTING AND PAYMENTS; MARKET RESEARCH

8.01     Accounting Within 30 days following each calendar quarter of the Term,
         ADI shall account for and pay to Maverick any royalties payable in
         respect of such quarter and shall furnish to Maverick a statement
         setting forth:

(a)      a listing of all Maverick Videos Streamed on each Licensed Music Site
         during such quarter;

(b)      the number of Maverick Videos Streamed on each Licensed Music Site as
         compared to the total number of Videos Streamed on each such Licensed
         Music Site during such quarter;

(c)      Pre-Programmed Stream Receipts and On-Demand Stream Receipts for such
         quarter and the sources thereof;

(d)      the number of times that Maverick Videos were Streamed on each Licensed
         Music Site as compared to the total number of times that Videos were
         Streamed on each such Licensed Music Site during such quarter;

(e)      the number of "pageviews" of the Banner Ads during such quarter and the
         number of "clickthroughs" from the Banner Ads to URLs designated by
         Maverick during such quarter. ADI shall also furnish Maverick with the
         information described in subparagraphs 8.01(a), (b) and (d) on a weekly
         basis within 10 days following the end of each week during the Term.

8.02     Audit Rights

(a)      ADI shall keep complete and accurate books and records of account
         relating to the Streaming of Maverick Videos and Videos maintained to a
         standard sufficient to enable an audit trail to be established.

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(b)      Maverick shall have the right during the Term and during the two-year
         period following the termination or expiration of the Term, at
         Maverick's sole cost and expense, to have a certified public accountant
         inspect ADI's books and records no more than once during any year. This
         inspection shall take place at ADI's office, during normal business
         hours on not less than 30 days' written notice. The auditor appointed
         by Maverick may inspect and take copies of the books and records of ADI
         solely for the purpose of verifying the calculation of royalties
         accruing to Maverick under this Agreement and verifying ADI's
         compliance with Paragraph 7.

(c)      Each statement rendered under this Agreement shall be deemed final and
         binding upon Maverick as an account stated and shall not be subject to
         any claim or objection by Maverick unless Maverick notifies ADI of
         Maverick's objection to the applicable statement, stating the basis
         thereof in reasonable detail within three (3) years after the date such
         statement was rendered to Maverick hereunder.

8.03     Market Research

         ADI and Maverick shall cooperate with each other in conducting market
         research, at Maverick's sole cost and expense, designed to determine
         the effect of the Licensed Music Sites on consumer awareness of artists
         featured in Maverick Videos and sales of such artist's records. ADI and
         Maverick shall use the results of such research for internal purposes
         only. Such market research shall be subject to the approval of any
         applicable artists (but only if required by written agreement between
         ADI and such artist) and shall be subject to the published privacy
         policy of the applicable Licensed Music Site (if any). Nothing
         contained herein shall be deemed to require Maverick to conduct any
         such market research.

9.       WARRANTIES AND INDEMNITY

9.01     ADI's Warranties

         ADI represents and warrants that:

(a)      ADI has full right and authority to enter into and to fulfill all of
         ADI's obligations under this Agreement; and

(b)      ADI shall comply with all licenses, laws and regulations relating to
         its maintenance and transmission of Licensed Music Sites.

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9.02     Maverick's Warranties

(a)      Maverick represents and warrants that Maverick has the right to enter
         into and fulfill all of Maverick's obligations under this Agreement;
         and

(b)      Maverick makes no representation or warranty whatsoever with respect to
         the non-dramatic performing rights in the musical compositions embodied
         in the Maverick Videos.

9.03     Indemnity

(a)      ADI does hereby indemnify, save and hold harmless Maverick and
         Maverick's subsidiaries, affiliates, licensees, assigns, officers and
         employees from any and all loss and damage (including, without
         limitation, reasonable fees and disbursements of counsel incurred by
         Maverick in any action or proceeding between ADI and Maverick or
         between Maverick and any third party or otherwise) arising out of or
         connected with any claim or act or omission by ADI which is
         inconsistent with any of the representations or agreements made by ADI
         in this Agreement or any breach of ADI's obligations hereunder or any
         unauthorized use by ADI or any party acting on behalf of ADI of Masters
         or Maverick Videos in connection with the advertising, promotion or
         publicity of each Maverick Video or the name or likeness of any artist
         who rendered services in connection with such Maverick Videos. Maverick
         shall have the right at all times, in Maverick's sole discretion and at
         Maverick's sole cost and expense, to retain or resume control of the
         conduct relative to the defense of any claim to which the foregoing
         indemnity applies. The foregoing indemnity shall be limited to claims
         reduced to judgment or settled with ADI's prior written consent not to
         be unreasonably withheld.

(b)      Maverick does hereby indemnify, save and hold harmless ADI and ADI's
         subsidiaries, affiliates, licensees, assigns, officers and employees
         from any and all loss and damage (including, without limitation,
         reasonable fees and disbursements of counsel incurred by ADI in any
         action or proceeding between ADI and Maverick or between ADI and any
         third party or otherwise) arising out of our connected with any claim
         or act or omission by Maverick which is inconsistent with any of the
         representations or agreements made by Maverick in this Agreement or any
         breach of its obligations hereunder or any claim that any Maverick
         Video or the content thereof violates the rights of any third party,
         including, without limitation, libel, slander, defamation, copyright,
         trademark, and rights of privacy and publicity. ADI shall have the
         right at all times, in ADI's sole discretion and at ADI's sole cost and
         expense, to retain or resume control of the conduct relative to the
         defense of any claim to which the foregoing indemnity applies. The
         foregoing indemnity shall be limited to

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<PAGE>   12

         claims reduced to judgment or settled with Maverick's prior written
         consent not to be unreasonably withheld.

(c)      The indemnitor shall give the indemnitee prompt written notice of any
         claim to which the foregoing indemnity applies, and the indemnitor
         shall have the right to participate in the defense of any such claim
         through counsel of the indemnitor's own choice and at the indemnitor's
         cost and expense.

10.      TERMINATION

10.01    Maverick's Termination RightsMaverick may terminate this Agreement
         immediately by written notice to ADI if, at any time during the Term:

(a)      ADI goes in liquidation, receivership or administration or becomes
         bankrupt, makes any arrangement for the benefit of ADI's creditors or
         has a receiver appointed for any of ADI's assets; provided, that if
         such proceeding is involuntary, then Maverick shall not have the right
         to terminate the Term unless such proceeding is not dismissed within 90
         days of the filing thereof;

(b)      ADI breaches any material term or provision of this Agreement;

(c)      the Licensed Music Sites cease, except for any instance of force
         majeure, to be transmitted for a continuous period of 10 days; or

(d)      if ADI does not succeed in preventing a Circumvention Event within 60
         days following ADI's becoming aware thereof; provided, in the case of
         any event set forth in subparagraph (b) above, Maverick shall have
         given ADI written notice of such event and ADI shall have failed to
         cure same within 30 days after ADI's receipt of such notice (or 10
         business days if the event is ADI's failure to pay Maverick a sum
         certain).

10.02    ADI's Termination Rights

         ADI may terminate this Agreement immediately by written notice to
         Maverick if: (a) at any time during the Term, Maverick goes into
         liquidation, receivership or administration or becomes bankrupt, makes
         any arrangement for the benefit of Maverick's creditors or has a
         receiver appointed for any of Maverick's assets; provided, that if such
         proceeding is involuntary, then ADI shall not have the right to
         terminate the Term unless such proceeding is not dismissed within 90
         days of the filing thereof; or (b) if Maverick breaches any material
         term or provision of this Agreement and fails to cure such breach
         within 30 days after ADI's written notice to Maverick of such breach.

                                       12
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11.      PROCEDURE UPON TERMINATION. Upon the expiration or termination of this
         Agreement:

(a)      ADI shall cease the Streaming of Maverick Videos on Licensed Music
         Sites;

(b)      ADI shall perform in accordance with the provisions of subparagraph
         4.02(c); and

(c)      should ADI terminate this Agreement pursuant to subparagraph 10.02
         above, ADI shall have no further obligations to Maverick and Maverick
         shall have no further obligations to ADI.

12.      MISCELLANEOUS

12.01    Relationship of the Parties In performing its obligations under this
         Agreement, each of the parties hereto shall be deemed an independent
         contractor, and nothing in this Agreement shall in any way constitute
         either party, or any of such party's officer or directors, an agent or
         employee of the other party and this Agreement shall not be deemed to
         constitute a partnership, joint venture or contract of employment
         between the parties.

12.02    Service of Notices Any notice which either party hereto may desire to
         give or which is required under the terms of this Agreement shall be
         given in writing by registered or certified mail, return receipt
         requested, or by telefax or by personal service (in all cases, all
         charges prepaid) to ADI at the address first noted in the preamble to
         this Agreement, Attn: Chief Financial Officer, or to such other address
         to which ADI notifies Maverick in writing, with copies to Lenard &
         Gonzalez, LLP, 1900 Avenue of the Stars, 25th Floor, Los Angeles,
         California 90067, Attn: Allen D. Lenard, Esq., and to Maverick to the
         address first noted in the preamble to this Agreement, Attn: General
         Counsel. In the event any such notice is given by mail, such notice
         shall be deemed to be given on the date five business days following
         the date of such mailing. In the event any such notice is given by
         personal delivery, such notice shall be deemed to be given on the date
         personal delivery is made.

12.03    Confidentiality/Press Announcements Neither ADI nor Maverick nor their
         respective affiliates may disclose to any third party (other than each
         party's employees and professional advisors, in their capacity as such)
         any information regarding the terms and conditions of this Agreement
         without the prior written consent of the other party except:

(a)      to the extent necessary to comply with the law or the legal process of
         a court of competent jurisdiction or in administrative proceedings, in
         which event the party making such disclosure must use its commercially
         reasonable efforts to procure confidential treatment of such
         information;

                                       13
<PAGE>   14

(b)      as part of its normal reporting or review procedure to its parent
         companies, its auditors and its attorneys, provided that ADI and
         Maverick inform these parties of the provisions of this subparagraph
         12.03;

(c)      to the extent necessary to comply with Maverick's contractual
         obligations to third parties;

(d)      to make press announcements approved in writing by both of the parties;
         and

(e)      to the extent such terms become public through no breach by either
         party of this subparagraph 12.03.

         In addition to the foregoing, ADI shall not disclose to any third party
         (other than to ADI's employees, in their capacity as such): (i) the
         identity of the Maverick Videos Streamed on a Licensed Music Site; (ii)
         the number of Maverick Videos Streamed on a Licensed Music Site; or
         (iii) the number of times that any Maverick Video was Streamed on a
         Licensed Music Site.

12.04    Assignment/Sublicense Maverick may not assign, sublicense or
         effectively assign or sublicense Maverick's rights or obligations under
         this Agreement except to an affiliated or associated company or to a
         person or entity acquiring all or substantially all of the stock or
         assets of Maverick and subject to the assignee assuming Maverick's
         obligations hereunder. ADI may not assign, sublicense or effectively
         assign or sublicense any of ADI's rights or obligations under this
         Agreement to any party. For the avoidance of doubt, ADI may not
         syndicate ADI's programming containing Maverick Videos.

12.05    No Waiver No failure to exercise or delay in exercising any right,
         power or privilege under this Agreement by either party shall operate
         as a waiver of that right, power or privilege. Similarly, a single or
         partial exercise of any right, power or privilege by either party shall
         not preclude any other or further exercise of that right, power or
         privilege.

12.06    Remedies Cumulative/Severability The rights and remedies contained in
         this Agreement are cumulative and are not exclusive of any rights and
         remedies provided by law, in equity or otherwise. If any provision of
         this Agreement is prohibited by or contravenes any applicable law, or
         is held by any court of competent jurisdiction or any other legally
         constituted body having jurisdiction to make this determination to be
         void, unlawful or unenforceable then that provision shall be severed
         from the Agreement and rendered ineffective, as far as possible,
         without modifying the remaining provisions of this Agreement.

                                       14
<PAGE>   15

12.07    Entire Agreement/Amendments/Counterparts This Agreement contains the
         entire agreement between the parties with respect to its subject matter
         and supersedes any prior agreement or negotiation between the parties
         on the subject matter of this Agreement. There are no representations,
         agreements or understandings, oral or written, between the parties
         relating to the subject matter of this Agreement which are not fully
         expressed in this Agreement. No amendment, termination, waiver,
         discharge or modification of this Agreement shall be effective unless
         it is in writing and is signed by an authorized signatory of both
         Maverick and ADI. This Agreement may be executed in one or more
         counterparts and by facsimile signature, each of which shall be deemed
         an original and all of which together shall be deemed one Agreement.

12.08    Litigation ADI shall notify Maverick if ADI becomes aware of any
         unauthorized dealing by any third party in any Maverick Videos or in
         Licensed Music Sites, and shall cooperate fully, at Maverick's cost, in
         any dispute relating to Maverick's rights in Masters and Maverick
         Videos as well as Maverick's rights under this Agreement. Maverick,
         after written notice to ADI, may, at Maverick's sole cost and expense,
         act in the name of ADI and Maverick to protect Maverick's rights under
         this Agreement and ADI appoints Maverick ADI's attorney-in-fact to do
         this; provided, however, that Maverick shall not be permitted to
         execute any document on behalf of ADI without first affording ADI a
         reasonable opportunity to execute such document itself. If Maverick
         acts on ADI's behalf as permitted herein, Maverick shall keep ADI
         informed on a current basis of such acts and all proceedings relating
         thereto.

12.09    Governing Law This agreement has been entered into in the state of New
         York, and the validity, interpretation and the laws of the state of New
         York shall govern the legal effect of this Agreement. The New York
         courts (state and federal), only, shall have jurisdiction of any
         controversies regarding this Agreement; any action or other proceeding
         which involves such a controversy shall be brought in these courts, in
         New York County, and not elsewhere. Any process in any such action or
         proceeding may, among other methods, be served upon ADI or Maverick, as
         applicable, by delivering it or mailing it, by registered or certified
         mail, return receipt requested, directed to the address first above
         written. Any such delivery or mail service shall be deemed to have the
         same force and effect as personal service within the state of New York.

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<PAGE>   16

IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be executed
as of the date first above written.

ACCEPTED AND AGREED:

MAVERICK RECORDING COMPANY                  ARTISTdirect, INC.

By: /s/ GUY OSEARY                          By: /s/ KEITH YOKOMOTO
   ------------------------------              ---------------------------
Name: Guy Oseary                           Name: Keith Yokomoto

Title: Co-Chief Executive Officer          Title: President and
                                                  Chief Operating Officer

                                       16

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