Document:

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                                                                 EXHIBIT 10.07

            ANTHEM RECORDING WEST, INC. 2000 STOCK INCENTIVE PLAN

                         NOTICE OF STOCK OPTION AWARD

        Grantee's Name and Address:       HOWARD THACKER
                                          Trent Fish Farm
                                          Mercaston
                                          Derbyshire, UK DE6 3BL

        You have been granted an option to purchase shares of Common Stock of
Anthem Recording West, Inc., subject to the terms and conditions of this
Notice of Stock Option Award (the "Notice"), the Anthem Recording West, Inc.
2000 Stock Incentive Plan, as amended from time to time (the "Plan") and the
Stock Option Award Agreement (the "Option Agreement") attached hereto, as
follows. Unless otherwise defined herein, the terms defined in the Plan shall
have the same defined meanings in this Notice.

        Award Number                      No. 2

        Date of Award                     May 23, 2000

        Vesting Commencement Date         May 23, 2000

        Exercise Price per Share          $7.50

        Total Number of Shares Subject
        to the Option (the "Shares")      475,000

        Total Exercise Price              $3,562,500

        Type of Option:                   Incentive Stock Option

        Expiration Date:                  May 22, 2010

        Post-Termination Exercise Period:   Three (3) Months

Vesting Schedule:

        Subject to Grantee's Continuous Service and other limitations set
forth in this Notice, the Plan and the Option Agreement, the Option may be
exercised, in whole or in part, in accordance with the following schedule:

        Fifty Percent (50%) of the Shares subject to the Option shall vest
        twelve months after the Vesting Commencement Date, and 1/24th of the
        Shares subject to the Option shall vest on each monthly anniversary of
        the Vesting Commencement Date thereafter.

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        During any authorized leave of absence, the vesting of the Option as
provided in this schedule shall cease. Vesting of the Option shall resume upon
the Grantee's termination of the leave of absence and return to service to the
Company or a Related Entity.

        In the event of termination of the Grantee's Continuous Service for
Cause, the Grantee's right to exercise the Option shall terminate concurrently
with the termination of the Grantee's Continuous Service, except as otherwise
determined by the Administrator.

        In the event of the Grantee's change in status from Employee to
Consultant or from an Employee whose customary employment is 20 hours or more
per week to an Employee whose customary employment is fewer than 20 hours per
week, vesting of the Option shall continue only to the extent determined by
the Administrator as of such change in status consistent with any minimum
vesting requirements set forth in the Plan.

        IN WITNESS WHEREOF, the Company and the Grantee have executed this
Notice and agree that the Option is to be governed by the terms and conditions
of this Notice, the Plan, and the Option Agreement.

                                            Anthem Recording West, Inc.,
                                            a California corporation

                                            By:  /s/ ERIC BOEHNKE
                                                ------------------------------
                                                     Eric Boehnke
                                            Title:   President

THE GRANTEE ACKNOWLEDGES AND AGREES THAT THE SHARES SUBJECT TO THE OPTION
SHALL VEST, IF AT ALL, ONLY DURING THE PERIOD OF THE GRANTEE'S CONTINUOUS
SERVICE (NOT THROUGH THE ACT OF BEING HIRED, BEING GRANTED THE OPTION OR
ACQUIRING SHARES HEREUNDER). THE GRANTEE FURTHER ACKNOWLEDGES AND AGREES THAT
NOTHING IN THIS NOTICE, THE OPTION AGREEMENT, OR THE PLAN SHALL CONFER UPON
THE GRANTEE ANY RIGHT WITH RESPECT TO FUTURE AWARDS OR CONTINUATION OF
GRANTEE'S CONTINUOUS SERVICE, NOR SHALL IT INTERFERE IN ANY WAY WITH THE
GRANTEE'S RIGHT OR THE RIGHT OF THE GRANTEE'S EMPLOYER TO TERMINATE GRANTEE'S
CONTINUOUS SERVICE, WITH OR WITHOUT CAUSE, AND WITH OR WITHOUT NOTICE, SUBJECT
TO ANY WRITTEN EMPLOYMENT AGREEMENT WITH THE GRANTEE.

        The Grantee acknowledges receipt of a copy of the Plan and the Option
Agreement, and represents that he is familiar with the terms and provisions
thereof, and hereby accepts the Option subject to all of the terms and
provisions hereof and thereof. The Grantee has reviewed this Notice, the Plan,
and the Option Agreement in their entirety, has had an opportunity to obtain
the advice of counsel prior to executing this Notice, and fully understands
all provisions of this Notice, the Plan and the Option Agreement. The Grantee
hereby agrees that all disputes arising out of or relating to this Notice, the
Plan and the Option

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Agreement shall be resolved in accordance with Section 19 of the Option
Agreement. The Grantee further agrees to notify the Company upon any change in
the residence address indicated in this Notice.

Dated: ______________________                  Signed:  /s/ HOWARD THACKER

                                               Howard Thacker

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                                                              AWARD NUMBER:  2

            ANTHEM RECORDING WEST, INC. 2000 STOCK INCENTIVE PLAN

                         STOCK OPTION AWARD AGREEMENT

1.      Grant of Option. Anthem Recording West, Inc., a California corporation
(the "Company"), hereby grants to the Grantee (the "Grantee") named in the
Notice of Stock Option Award (the "Notice"), an option (the "Option") to
purchase the Total Number of Shares of Common Stock subject to the Option (the
"Shares") set forth in the Notice, at the Exercise Price per Share set forth
in the Notice (the "Exercise Price") subject to the terms and provisions of
the Notice, this Stock Option Award Agreement (the "Option Agreement") and the
Company's 2000 Stock Incentive Plan, as amended from time to time (the
"Plan"), which are incorporated herein by reference. Unless otherwise defined
herein, the terms defined in the Plan shall have the same defined meanings in
this Option Agreement.

        If designated in the Notice as an Incentive Stock Option, the Option
is intended to qualify as an Incentive Stock Option as defined in Section 422
of the Code. However, notwithstanding such designation, to the extent that the
aggregate Fair Market Value of Shares subject to Options designated as
Incentive Stock Options which become exercisable for the first time by the
Grantee during any calendar year (under all plans of the Company or any Parent
or Subsidiary) exceeds $100,000, such excess Options, to the extent of the
Shares covered thereby in excess of the foregoing limitation, shall be treated
as Non-Qualified Stock Options. For this purpose, Incentive Stock Options
shall be taken into account in the order in which they were granted, and the
Fair Market Value of the Shares shall be determined as of the date the Option
with respect to such Shares is awarded.

Exercise of Option.

           (a) Right to Exercise. The Option shall be exercisable during its
               term in accordance with the Vesting Schedule set out in the
               Notice and with the applicable provisions of the Plan and this
               Option Agreement. No partial exercise of the Option may be for
               less than the lesser of five percent (5%) of the total number
               of Shares subject to the Option or the remaining number of
               Shares subject to the Option. In no event shall the Company
               issue fractional Shares.

           (b) Acceleration in the Event of Corporate Transaction.
               Notwithstanding any other provision hereof, in the event of a
               Corporate Transaction, this Option shall automatically shall
               become fully vested and exercisable and be released from any
               forfeiture rights, immediately prior to the specified effective
               date of such Corporate Transaction, for all of the Shares at
               the time represented by this Option.  Effective upon the
               consummation of the Corporate Transaction, this Option under
               the Plan shall terminate; provided however that this Option
               shall not terminate if it is assumed by the successor
               corporation or Parent thereof in connection with the Corporate
               Transaction.

           (c) Acceleration in the Event of Change in Control. Notwithstanding
               any other provision hereof, in the event of a Change in Control
               (other than a Change in Control which also is a Corporate
               Transaction), this Option automatically shall become fully
               vested and exercisable and be released from any forfeiture
               rights,

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               immediately prior to the specified effective date of such
               Change in Control, for all of the Shares at the time
               represented by this Option.

           (d) Method of Exercise.  The Option shall be exercisable only by
               delivery of an Exercise Notice (attached as Exhibit A) which
               shall state the election to exercise the Option, the whole
               number of Shares in respect of which the Option is being
               exercised, and such other provisions as may be required by the
               Administrator.  The Exercise Notice shall be signed by the
               Grantee and shall be delivered in person, by certified mail, or
               by such other method as determined from time to time by the
               Administrator to the Company accompanied by payment of the
               Exercise Price.  The Option shall be deemed to be exercised
               upon receipt by the Company of such written notice accompanied
               by the Exercise Price, which, to the extent selected, shall be
               deemed to be satisfied by use of the broker-dealer sale and
               remittance procedure to pay the Exercise Price provided in
               Section 4(d), below.

           (e) Taxes.  No Shares will be delivered to the Grantee or other
               person pursuant to the exercise of the Option until the Grantee
               or other person has made arrangements acceptable to the
               Administrator for the satisfaction of applicable income tax,
               employment tax, and social security tax withholding
               obligations, including, without limitation, obligations
               incident to the receipt of Shares or the disqualifying
               disposition of Shares received on exercise of an Incentive
               Stock Option.  Upon exercise of the Option, the Company or the
               Grantee's employer may offset or withhold (from any amount owed
               by the Company or the Grantee's employer to the Grantee) or
               collect from the Grantee or other person an amount sufficient
               to satisfy such tax obligations and/or the employer's
               withholding obligations.

3. Grantee's Representations. The Grantee understands that neither the Option
nor the Shares exercisable pursuant to the Option have been registered under
the Securities Act of 1933, as amended or any United States securities laws.
In the event the Shares purchasable pursuant to the exercise of the Option
have not been registered under the Securities Act of 1933, as amended, at the
time the Option is exercised, the Grantee shall, if requested by the Company,
concurrently with the exercise of all or any portion of the Option, deliver to
the Company his Investment Representation Statement in the form attached
hereto as Exhibit B and such other representations, warranties and covenants
reasonably requested by counsel for the Company .

4. Method of Payment.  Payment of the Exercise Price shall be made by any of
the following, or a combination thereof, at the election of the Grantee;
provided, however, that such exercise method does not then violate any
Applicable Law:

           (a) cash;

           (b) check;

           (c) if the exercise occurs on or after the Registration Date (as
               defined by the Plan), surrender of Shares or delivery of a
               properly executed form of attestation of ownership of Shares as
               the Administrator may require (including withholding of Shares
               otherwise deliverable upon exercise of the Option) which have a
               Fair Market Value on the date of surrender or attestation equal
               to the aggregate

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               Exercise Price of the Shares as to which the Option is being
               exercised (but only to the extent that such exercise of the
               Option would not result in an accounting compensation charge
               with respect to the Shares used to pay the exercise price);

           (d) if the exercise occurs on or after the Registration Date,
               payment through a broker-dealer sale and remittance procedure
               pursuant to which the Grantee (i) shall provide written
               instructions to a Company designated brokerage firm to effect
               the immediate sale of some or all of the purchased Shares and
               remit to the Company, out of the sale proceeds available on the
               settlement date, sufficient funds to cover the aggregate
               exercise price payable for the purchased Shares and (ii) shall
               provide written directives to the Company to deliver the
               certificates for the purchased Shares directly to such
               brokerage firm in order to complete the sale transaction; or

           (e) provided that the aggregate Exercise Price for the number of
               Shares being purchased exceeds Twenty Five Thousand Dollars
               ($25,000), payment pursuant to a promissory note as described
               below.

               (i)    The promissory note shall have a term of three (3) years
                      with principal and interest payable in three (3) equal
                      annual installments;

               (ii)   The promissory note shall bear interest at the minimum
                      rate required by the federal tax laws to avoid the
                      imputation of interest income to the Company and
                      compensation income to the Grantee;

               (iii)  The Grantee shall be personally liable for payment of
                      the promissory note and the promissory note shall be
                      secured by the Shares purchased upon delivery of the
                      promissory note, or such other collateral of equal or
                      greater value, in a manner satisfactory to the
                      Administrator with such documentation as the
                      Administrator may request; and

The promissory note shall become due and payable upon the occurrence of any or
all of the following events: (A) the sale or transfer of the Shares purchased
with the promissory note; (B) termination of the Grantee's Continuous Service
for any reason other than death or Disability; or (C) the first anniversary of
the termination of the Grantee's Continuous Service due to death or
Disability.

5. Restrictions on Exercise. The Option may not be exercised if the issuance
of the Shares subject to the Option upon such exercise would constitute a
violation of any Applicable Laws. In addition, the Option may be exercised
prior to the time that the Plan has been approved by the shareholders of the
Company; provided however that all Shares issued upon any such exercise shall
be rescinded if shareholder approval is not obtained within the time
prescribed, and Shares issued on any such exercise shall not be counted in
determining whether shareholder approval is obtained.

6. Termination or Change of Continuous Service. In the event the Grantee's
Continuous Service terminates, other than for Cause, the Grantee may, to the
extent otherwise so entitled at the date of such termination (the "Termination
Date"), exercise the Option during the Post-Termination Exercise Period. In
the event of termination of the Grantee's Continuous Service for Cause, the
Grantee's right to exercise the Option shall, except as otherwise determined
by

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the Administrator, terminate concurrently with the termination of the
Grantee's Continuous Service. In no event shall the Option be exercised later
than the Expiration Date set forth in the Notice. In the event of the
Grantee's change in status from Employee, Director or Consultant to any other
status of Employee, Director or Consultant, the Option shall remain in effect
and, except to the extent otherwise determined by the Administrator, continue
to vest; provided, however, with respect to any Incentive Stock Option that
shall remain in effect after a change in status from Employee to Director or
Consultant, such Incentive Stock Option shall cease to be treated as an
Incentive Stock Option and shall be treated as a Non-Qualified Stock Option on
the day three (3) months and one (1) day following such change in status.
Except as provided in Sections 8 and 9 below, to the extent that the Grantee
is not entitled to exercise the Option on the Termination Date, or if the
Grantee does not exercise the Option to the extent so entitled within the
Post-Termination Exercise Period, the Option shall terminate.

7. Definition of "Cause". For purposes of this Agreement, "Cause" means the
Grantee's (i) performance of any material act or failure to perform any
material act in bad faith and to the material detriment of the Company or a
Related Entity; (ii) performance of dishonest acts or intentional misconduct
to the material detriment of the Company or a Related Entity; (iii) material
breach of any agreement with the Company or a Related Entity; or (iv)
commission of any felony (excluding DWI and similar traffic offenses). At
least 30 days prior to the termination of the Grantee's Continuous Service
pursuant to any of the foregoing, the Administrator shall provide the Grantee
with notice of the Company's or such Related Entity's intent to terminate, the
reason therefor, and an opportunity for the Grantee to cure such defects in
his service to the Company's or such Related Entity's reasonable satisfaction.
During this 30 day (or longer) period, no Award issued to the Grantee under
the Plan may be exercised or purchased.

8. Disability of Grantee. In the event the Grantee's Continuous Service
terminates as a result of his Disability, the Grantee may, but only within
twelve (12) months from the Termination Date (and in no event later than the
Expiration Date), exercise the Option to the extent he was otherwise entitled
to exercise it on the Termination Date; provided, however, that if such
Disability is not a "disability" as such term is defined in Section 22(e)(3)
of the Code and the Option is an Incentive Stock Option, such Incentive Stock
Option shall cease to be treated as an Incentive Stock Option and shall be
treated as a Non-Qualified Stock Option on the day three (3) months and one
(1) day following the Termination Date. To the extent that the Grantee is not
entitled to exercise the Option on the Termination Date, or if the Grantee
does not exercise the Option to the extent so entitled within the time
specified herein, the Option shall terminate.

9. Death of Grantee. In the event of the termination of the Grantee's
Continuous Service as a result of his death, or in the event of the Grantee's
death during the Post-Termination Exercise Period or during the twelve (12)
month period following the Grantee's termination of Continuous Service as a
result of his Disability, the Grantee's estate, or a person who acquired the
right to exercise the Option by bequest or inheritance, may exercise the
Option, but only to the extent the Grantee could exercise the Option at the
date of termination, within twelve (12) months from the date of death (but in
no event later than the Expiration Date). To the extent that the Grantee is
not entitled to exercise the Option on the date of death, or if the Option is
not exercised to the extent so entitled within the time specified herein, the
Option shall terminate.

10. Transferability of Option. The Option, if an Incentive Stock Option, may
not be transferred in any manner other than by Will or by the laws of descent
and distribution and

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may be exercised during the lifetime of the Grantee only by the Grantee. The
Option, if a Non-Qualified Stock Option may be transferred by Will, by the
laws of descent and distribution, and to the extent and in the manner
authorized by the Administrator, to members of the Grantee's immediate family
(as determined by the Administrator) or pursuant to a domestic relations
order. The terms of the Option shall be binding upon the executors,
administrators, heirs and successors of the Grantee.

11. Term of Option.  The Option may be exercised no later than the Expiration
Date set forth in the Notice or such earlier date as otherwise provided
herein.

12. Stop-Transfer Notices. In order to ensure compliance with the restrictions
on transfer set forth in this Option Agreement, the Notice or the Plan, the
Company may issue appropriate "stop transfer" instructions to its transfer
agent, if any, and, if the Company transfers its own securities, it may make
appropriate notations to the same effect in its own records.

13. Refusal to Transfer. The Company shall not be required (i) to transfer on
its books any Shares that have been sold or otherwise transferred in violation
of any of the provisions of this Option Agreement or (ii) to treat as owner of
such Shares or to accord the right to vote or pay dividends or other
shareholders rights to any purchaser or other transferee to whom such Shares
shall have been so transferred.

14. Tax Consequences. Set forth below is a brief summary as of the date of
this Option Agreement of some of the federal tax consequences of exercise of
the Option and disposition of the Shares. THIS SUMMARY IS NECESSARILY
INCOMPLETE, AND THE TAX LAWS AND REGULATIONS ARE SUBJECT TO CHANGE. THE
COMPANY SHALL HAVE NO OBLIGATION TO NOTIFY GRANTEE OF ANY SUCH CHANGES. THE
GRANTEE SHOULD CONSULT A TAX ADVISER BEFORE EXERCISING THE OPTION OR DISPOSING
OF THE SHARES. WITHOUT LIMITING THE FOREGOING, THIS SUMMARY DOES NOT DISCUSS
THE TAX CONSEQUENCES OF THE EXERCISE OF THE OPTION AND THE DISPOSITION OF THE
SHARES UNDER THE LAWS OF THE UNITED KINGDOM.

           (a) Exercise of Incentive Stock Option. If the Option qualifies as
               an Incentive Stock Option, there will be no regular federal
               income tax liability upon the exercise of the Option, although
               the excess, if any, of the Fair Market Value of the Shares on
               the date of exercise over the Exercise Price will be treated as
               income for purposes of the alternative minimum tax for federal
               tax purposes and may subject the Grantee to the alternative
               minimum tax in the year of exercise.

           (b) Exercise of Incentive Stock Option Following Disability. If the
               Grantee's Continuous Service terminates as a result of
               Disability that is not total and permanent disability as
               defined in Section 22(e)(3) of the Code, to the extent
               permitted on the date of termination, the Grantee must exercise
               an Incentive Stock Option within three (3) months of such
               termination for the Incentive Stock Option to be qualified as
               an Incentive Stock Option.

           (c) Exercise of Non-Qualified Stock Option.  On exercise of a
               Non-Qualified Stock Option, the Grantee will be treated as
               having received compensation income (taxable at ordinary income
               tax rates) equal to the excess, if any, of the Fair Market
               Value of the Shares on the date of exercise over the Exercise

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               Price.  If the Grantee is an Employee or a former Employee, the
               Company will be required to withhold from the Grantee's
               compensation or collect from the Grantee and pay to the
               applicable taxing authorities an amount in cash equal to a
               percentage of this compensation income at the time of exercise,
               and may refuse to honor the exercise and refuse to deliver
               Shares if such withholding amounts are not delivered at the
               time of exercise.

           (d) Disposition of Shares.  In the case of a Non-Qualified Stock
               Option, if Shares are held for more than one year, any gain
               realized on disposition of the Shares will be treated as
               long-term capital gain for federal income tax purposes and
               subject to tax at a maximum rate of 20%.  In the case of an
               Incentive Stock Option, if Shares transferred pursuant to the
               Option are held for more than one year after receipt of the
               Shares and are disposed more than two years after the Date of
               Award, any gain realized on disposition of the Shares also will
               be treated as capital gain for federal income tax purposes and
               subject to the same tax rates and holding periods that apply to
               Shares acquired upon exercise of a Non-Qualified Stock Option.
               If Shares purchased under an Incentive Stock Option are
               disposed of prior to the expiration of such one-year or
               two-year periods, any gain realized on such disposition will be
               treated as compensation income (taxable at ordinary income
               rates) to the extent of the difference between the Exercise
               Price and the lesser of (i) the Fair Market Value of the Shares
               on the date of exercise, or (ii) the sale price of the Shares.

15. Lock-Up Agreement.

           (a) Agreement.  The Grantee, if requested by the Company and the
               lead underwriter of any public offering of the Common Stock or
               other securities of the Company (the "Lead Underwriter"),
               hereby irrevocably agrees not to sell, contract to sell, grant
               any option to purchase, transfer the economic risk of ownership
               in, make any short sale of, pledge or otherwise transfer or
               dispose of any interest in any Common Stock or any securities
               convertible into or exchangeable or exercisable for or any
               other rights to purchase or acquire Common Stock (except Common
               Stock included in such public offering or acquired on the
               public market after such offering) during the 180-day period
               following the Registration Date or such shorter period of time
               as the Lead Underwriter shall specify.  The Grantee further
               agrees to sign such documents as may be requested by the Lead
               Underwriter to effect the foregoing and agrees that the Company
               may impose stop-transfer instructions with respect to such
               Common Stock subject until the end of such period.  The Company
               and the Grantee acknowledge that each Lead Underwriter of a
               public offering of the Company's stock, during the period of
               such offering and for the 180-day period thereafter, is an
               intended beneficiary of this Section 16.

           (b) No Amendment Without Consent of Underwriter. During the period
               from identification as a Lead Underwriter in connection with
               any public offering of the Company's Common Stock until the
               earlier of (i) the expiration of the lock-up period specified
               in Section 16(a) in connection with such offering or (ii) the
               abandonment of such offering by the Company and the Lead
               Underwriter, the provisions of this Section 16 may not be
               amended or waived except with the consent of the Lead
               Underwriter.

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16. Entire Agreement: Governing Law. The Notice, the Plan and this Option
Agreement constitute the entire agreement of the parties with respect to the
subject matter hereof and supersede in their entirety all prior undertakings
and agreements of the Company and the Grantee with respect to the subject
matter hereof, and may not be modified adversely to the Grantee's interest
except by means of a writing signed by the Company and the Grantee. Nothing in
the Notice, the Plan and this Option Agreement (except as expressly provided
therein) is intended to confer any rights or remedies on any persons other
than the parties. The Notice, the Plan and this Option Agreement are to be
construed in accordance with and governed by the internal laws of the State of
California (as permitted by Section 1646.5 of the California Civil Code, or
any similar successor provision) without giving effect to any choice of law
rule that would cause the application of the laws of any jurisdiction other
than the internal laws of the State of California to the rights and duties of
the parties. Should any provision of the Notice, the Plan or this Option
Agreement be determined by a court of law to be illegal or unenforceable, such
provision shall be enforced to the fullest extent allowed by law and the other
provisions shall nevertheless remain effective and shall remain enforceable.

17. Headings.  The captions used in the Notice and this Option Agreement are
inserted for convenience and shall not be deemed a part of the Option for
construction or interpretation.

18. Notices. Any notice required or permitted hereunder shall be given in
writing and by personal delivery or by an internationally recognized
commercial courier service or by deposit in the United States mail by
certified mail (if the parties are within the United States) or upon deposit
for delivery by an internationally recognized express mail courier service
(for international delivery of notice), with postage and fees prepaid,
addressed to the other party at its address as shown beneath its signature in
the Notice, or to such other address as such party may designate in writing
from time to time to the other party; and shall be deemed effective on the
date of delivery in person or by courier or five (5) days after the date
mailed.

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                                  EXHIBIT A

            ANTHEM RECORDING WEST, INC. 2000 STOCK INCENTIVE PLAN

                               EXERCISE NOTICE

Anthem Recording West, Inc.

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

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

Attention: Secretary

1. Effective as of today, ______________, ___ the undersigned (the "Grantee")
hereby elects to exercise the Grantee's option to purchase ___________ shares
of the Common Stock (the "Shares") of Anthem Recording West, Inc. (the
"Company") under and pursuant to the Company's 2000 Stock Incentive Plan, as
amended from time to time (the "Plan") and the [ ] Incentive [ ] Non-Qualified
Stock Option Award Agreement (the "Option Agreement") and Notice of Stock
Option Award (the "Notice") dated ______________, ________. Unless otherwise
defined herein, the terms defined in the Plan shall have the same defined
meanings in this Exercise Notice.

2. Representations of the Grantee. The Grantee acknowledges that the Grantee
has received, read and understood the Notice, the Plan and the Option
Agreement and agrees to abide by and be bound by their terms and conditions.

3. Rights as Shareholder. Until the stock certificate evidencing such Shares
is issued (as evidenced by the appropriate entry on the books of the Company
or of a duly authorized transfer agent of the Company), no right to vote or
receive dividends or any other rights as a shareholder shall exist with
respect to the Shares, notwithstanding the exercise of the Option. The Company
shall issue (or cause to be issued) such stock certificate promptly after the
Option is exercised, subject to the Plan and Applicable Law. No adjustment
will be made for a dividend or other right for which the record date is prior
to the date the stock certificate is issued, except as provided in Section 11
of the Plan.

4. Delivery of Payment. The Grantee herewith delivers to the Company the full
Exercise Price for the Shares, which, to the extent selected, shall be deemed
to be satisfied by use of the broker-dealer sale and remittance procedure to
pay the Exercise Price provided in Section 4(d) of the Option Agreement.

5. Tax Consultation. The Grantee understands that the Grantee may suffer
adverse tax consequences as a result of the Grantee's purchase or disposition
of the Shares. The Grantee represents that the Grantee has consulted with any
tax consultants the Grantee deems advisable in connection with the purchase or
disposition of the Shares and that the Grantee is not relying on the Company
or its representatives for any tax advice.

6. Taxes. The Grantee agrees to satisfy all applicable federal, state and
local income and employment tax withholding obligations and herewith delivers
to the Company the full amount of such obligations or has made arrangements
acceptable to the Company to satisfy such obligations. In the case of an

<PAGE>   12
Incentive Stock Option, the Grantee also agrees, as partial consideration for
the designation of the Option as an Incentive Stock Option, to notify the
Company in writing within thirty (30) days of any disposition of any shares
acquired by exercise of the Option if such disposition occurs within two (2)
years from the Award Date or within one (1) year from the date the Shares were
transferred to the Grantee. If the Company is required to satisfy any federal,
state or local income or employment tax withholding obligations as a result of
such an early disposition, the Grantee agrees to satisfy the amount of such
withholding in a manner that the Administrator prescribes.

7. Restrictive Legends. The Grantee understands and agrees that the Company
shall cause the legends set forth below or legends substantially equivalent
thereto, to be placed upon any certificate(s) evidencing ownership of the Shares
together with any other legends that may be required by the Company or by state
or federal securities laws:

        THE SECURITIES REPRESENTED HEREBY HAVE NOT BEEN REGISTERED UNDER THE
        SECURITIES ACT OF 1933 (THE "ACT") OR ANY STATE SECURITIES LAWS AND MAY
        NOT BE OFFERED, SOLD OR OTHERWISE TRANSFERRED, PLEDGED OR HYPOTHECATED
        UNLESS AND UNTIL REGISTERED UNDER THE ACT OR, IN THE OPINION OF COUNSEL
        SATISFACTORY TO THE ISSUER OF THESE SECURITIES, SUCH OFFER, SALE OR
        TRANSFER, PLEDGE OR HYPOTHECATION IS IN COMPLIANCE THEREWITH.

        THE SHARES REPRESENTED BY THIS CERTIFICATE ARE SUBJECT TO CERTAIN
        RESTRICTIONS ON TRANSFER HELD BY THE ISSUER OR ITS ASSIGNEE(S) AS SET
        FORTH IN THE OPTION AGREEMENT BETWEEN THE ISSUER AND THE ORIGINAL HOLDER
        OF THESE SHARES, A COPY OF WHICH MAY BE OBTAINED AT THE PRINCIPAL OFFICE
        OF THE ISSUER. SUCH TRANSFER RESTRICTIONS ARE BINDING ON TRANSFEREES OF
        THESE SHARES.

8. Successors and Assigns. The Company may assign any of its rights under this
Exercise Notice to single or multiple assignees, and this agreement shall inure
to the benefit of the successors and assigns of the Company. Subject to the
restrictions on transfer herein set forth, this Exercise Notice shall be binding
upon the Grantee and his heirs, executors, administrators, successors and
assigns.

9. Headings. The captions used in this Exercise Notice are inserted for
convenience and shall not be deemed a part of this agreement for construction or
interpretation. .

10. Governing Law; Severability. This Exercise Notice is to be construed in
accordance with and governed by the internal laws of the State of California (as
permitted by Section 1646.5 of the California Civil Code, or any similar
successor provision) without giving effect to any choice of law rule that would
cause the application of the laws of any jurisdiction other than the internal
laws of the State of California to the rights and duties of the parties. Should
any provision of this Exercise Notice be determined by a court of law to be
illegal or unenforceable, such provision shall be enforced to the fullest extent
allowed by law and the other provisions shall nevertheless remain effective and
shall remain enforceable.

<PAGE>   13

11. Notices. Any notice required or permitted hereunder shall be given in
writing and by personal delivery or by an internationally recognized commercial
courier service or by deposit in the United States mail by certified mail (if
the parties are within the United States) or upon deposit for delivery by an
internationally recognized express mail courier service (for international
delivery of notice), with postage and fees prepaid, addressed to the other
party at its address as shown beneath its signature in the Notice, or to such
other address as such party may designate in writing from time to time to the
other party; and shall be deemed effective on the date of delivery in person or
by courier or five (5) days after the date mailed.

12. Further Instruments. The parties agree to execute such further instruments
and to take such further action as may be reasonably necessary to carry out the
purposes and intent of this agreement.

13. Entire Agreement. The Notice, the Plan and the Option Agreement are
incorporated herein by reference and together with this Exercise Notice
constitute the entire agreement of the parties with respect to the subject
matter hereof and supersede in their entirety all prior undertakings and
agreements of the Company and the Grantee with respect to the subject matter
hereof, and may not be modified adversely to the Grantee's interest except by
means of a writing signed by the Company and the Grantee. Nothing in the Notice,
the Plan, the Option Agreement and this Exercise Notice (except as expressly
provided therein) is intended to confer any rights or remedies on any persons
other than the parties.

Submitted by:                              Accepted by:

GRANTEE:                                   ANTHEM RECORDING WEST, INC.

                                           By:

               (Signature)                 Title:

Address:                                   Address:

<PAGE>   14

                                    EXHIBIT B

              ANTHEM RECORDING WEST, INC. 2000 STOCK INCENTIVE PLAN

                       INVESTMENT REPRESENTATION STATEMENT

GRANTEE:               HOWARD THACKER

COMPANY:               ANTHEM RECORDING WEST, INC.

SECURITY:              COMMON STOCK

AMOUNT:

DATE:

In connection with the purchase of the above-listed Securities, the undersigned
Grantee represents to the Company the following:

    (a) Grantee is aware of the Company's business affairs and financial
    condition and has acquired sufficient information about the Company to reach
    an informed and knowledgeable decision to acquire the Securities. Grantee is
    acquiring these Securities for investment for Grantee's own account only and
    not with a view to, or for resale in connection with, any "distribution"
    thereof within the meaning of the Securities Act of 1933, as amended (the
    "Securities Act").

    (b) Grantee acknowledges and understands that the Securities constitute
    "restricted securities" under the Securities Act and have not been
    registered under the Securities Act in reliance upon a specific exemption
    therefrom, which exemption depends upon among other things, the bona fide
    nature of Grantee's investment intent as expressed herein. Grantee further
    understands that the Securities must be held indefinitely unless they are
    subsequently registered under the Securities Act or an exemption from such
    registration is available. Grantee further acknowledges and understands that
    the Company is under no obligation to register the Securities. Grantee
    understands that the certificate evidencing the Securities will be imprinted
    with a legend which prohibits the transfer of the Securities unless they are
    registered or such registration is not required in the opinion of counsel
    satisfactory to the Company.

    (c) Grantee is familiar with the provisions of Rule 701 and Rule 144, each
    promulgated under the Securities Act, which, in substance, permit limited
    public resale of "restricted securities" acquired, directly or indirectly
    from the issuer thereof, in a non-public offering subject to the
    satisfaction of certain conditions. Rule 701 provides that if the issuer
    qualifies under Rule 701 at the time of the grant of the Option to the
    Grantee, the exercise will be exempt from registration under the Securities
    Act. In the event the Company becomes subject to the reporting requirements
    of Section 13 or 15(d) of the Securities Exchange Act of 1934, ninety (90)
    days thereafter (or such longer period as any market stand-off agreement may
    require) the Securities exempt under Rule 701 may be resold, subject to the
    satisfaction of certain of the conditions specified by Rule 144, including:
    (1) the resale being made through a broker in an unsolicited "broker's
    transaction" or in transactions directly with a market maker (as said term
    is defined under the Securities Exchange Act of 1934); and, in the case of
    an affiliate, (2) the availability of certain public information about the
    Company, (3) the amount of Securities being sold during any

<PAGE>   15

    three month period not exceeding the limitations specified in Rule 144(e),
    and (4) the timely filing of a Form 144, if applicable.

        In the event that the Company does not qualify under Rule 701 at the
time of grant of the Option, then the Securities may be resold in certain
limited circumstances subject to the provisions of Rule 144, which requires the
resale to occur not less than one year after the later of the date the
Securities were sold by the Company or the date the Securities were sold by an
affiliate of the Company, within the meaning of Rule 144; and, in the case of
acquisition of the Securities by an affiliate, or by a non-affiliate who
subsequently holds the Securities less than two years, the satisfaction of the
conditions set forth in sections (1), (2), (3) and (4) of the paragraph
immediately above.

    (d) Grantee further understands that in the event all of the applicable
    requirements of Rule 701 or 144 are not satisfied, registration under the
    Securities Act, compliance with Regulation A, or some other registration
    exemption will be required; and that, notwithstanding the fact that Rules
    144 and 701 are not exclusive, the Staff of the Securities and Exchange
    Commission has expressed its opinion that persons proposing to sell private
    placement securities other than in a registered offering and otherwise than
    pursuant to Rules 144 or 701 will have a substantial burden of proof in
    establishing that an exemption from registration is available for such
    offers or sales, and that such persons and their respective brokers who
    participate in such transactions do so at their own risk. Grantee
    understands that no assurances can be given that any such other registration
    exemption will be available in such event.

    (e) Grantee represents that he is a resident of __________________________
    ____________________________.

                                            Signature of Grantee:

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

                                            Date:                    ,
                                                  -------------------  -----<PAGE>   1

                                                                   EXHIBIT 10.08

THIS REGISTRATION RIGHTS AGREEMENT (the "Agreement") is made as of the 23rd day
of May 2000 by and among ANTHEM RECORDING WEST INC., a California corporation
(the "Company"), and the purchasers of the Company's common stock listed on the
signature pages hereto (the "Investors").

RECITALS

WHEREAS:

A.      The Investors are parties to the share exchange agreement dated 5 May
        2000 among the Company, the Investors and others (the "Share Exchange
        Agreement"), which provides that as a condition to the closing of the
        transactions contemplated therein, this Agreement must be executed and
        delivered by the Investors and the Company;

B.      The Company desires to grant, and the Investors desire to be granted,
        the rights created herein.

NOW, THEREFORE, in consideration of the mutual promises and covenants set forth
herein, the parties hereto agree as follows:

1.      REGISTRATION RIGHTS

        The Company covenants and agrees as follows:

1.1     Definitions

        For purposes of this CLAUSE 1:

        (a)     The term "Act" means the Securities Act of 1933, as amended.

        (b)     The term "Form S-3" means such form under the Act as in effect
                on the date hereof or any registration form under the Act
                subsequently adopted by the SEC that permits inclusion or
                incorporation of substantial information by reference to other
                documents filed by the Company with the SEC.

        (c)     The term "Holder" means any person owning or having the right to
                acquire Registrable Securities or any assignee thereof in
                accordance with CLAUSE 1.11 hereof.

        (d)     The term "Initial Offering" means the Company's first firm
                commitment underwritten public offering of its common stock
                under the Act.

        (e)     The term "1934 Act" means the Securities Exchange Act of 1934,
                as amended.

        (f)     The term "register," "registered," and "registration" refer to a
                registration effected by preparing and filing a registration
                statement or similar document in compliance with the Act, and
                the declaration or ordering of effectiveness of such
                registration statement or document.

        (g)     The term "Registrable Securities" means (i) the common stock
                issuable or issued pursuant to the Share Exchange Agreement, and
                (ii) any common stock of the Company issued as (or issuable upon
                the conversion or exercise of any warrant, right or other
                security that is issued as) a dividend or other distribution
                with respect to, or in exchange for, or in replacement of, the
                shares referenced in (i) above, excluding in all cases, however,
                any Registrable Securities sold by a person (x) in a transaction
                in which his rights under this CLAUSE 1 are not assigned, (y)
                pursuant to a registration statement that has been declared
                effective and such Registrable Securities have been disposed of
                pursuant to such effective registration statement, or (z) in a
                transaction in

<PAGE>   2

                which such Registrable Securities are sold pursuant to Rule 144
                (or any similar provision then in force) under the Act.

(h)            The number of shares of "Registrable Securities then outstanding"
               shall be determined by the number of shares of common stock
               outstanding that are, and the number of shares of common stock
               issuable pursuant to then exercisable or convertible securities
               that are, Registrable Securities.

        (i)     The term "SEC" shall mean the Securities and Exchange
                Commission.

1.2     Request for Registration.

        Subject to the conditions of this CLAUSE 1.2, if the Company shall
        receive at any time after the Closing Date (as defined in the Share
        Exchange Agreement) a written request from the Holders of fifty percent
        (50%) or more of the Registrable Securities then outstanding (the
        "Initiating Holders") that the Company file a registration statement
        under the Act covering the registration of Registrable Securities, then
        the Company shall, within twenty (20) days of the receipt thereof, give
        written notice of such request to all Holders, and subject to the
        limitations of this CLAUSE 1.2, use best efforts to effect, as soon as
        practicable, the registration under the Act of all Registrable
        Securities that the Holders request to be registered in a written
        request received by the Company within twenty (20) days of the mailing
        of the Company's notice pursuant to this CLAUSE 1.2(a).

        (a)     If the Initiating Holders intend to distribute the Registrable
                Securities covered by their request by means of an underwriting,
                they shall so advise the Company as a part of their request made
                pursuant to this CLAUSE 1.2 and the Company shall include such
                information in the written notice referred to in this
                CLAUSE1.2(a). In such event the right of any Holder to include
                its Registrable Securities in such registration shall be
                conditioned upon such Holder's participation in such
                underwriting and the inclusion of such Holder's Registrable
                Securities in the underwriting (unless otherwise mutually agreed
                by a majority in interest of the Initiating Holders and such
                Holder) to the extent provided herein. All Holders proposing to
                distribute their securities through such underwriting shall
                enter into an underwriting agreement in customary form with the
                underwriter or underwriters selected for such underwriting by a
                majority in interest of the Initiating Holders (which
                underwriter or underwriters shall be reasonably acceptable to
                the Company). Notwithstanding any other provision of this
                CLAUSE1.2, if the underwriter advises the Company that marketing
                factors require a limitation of the number of securities
                underwritten (including Registrable Securities), then the
                Company shall so advise all Holders of Registrable Securities
                that would otherwise be underwritten pursuant hereto, and the
                number of shares that may be included in the underwriting shall
                be allocated to the Holders of such Registrable Securities on a
                pro rata basis based on the number of Registrable Securities
                held by all such Holders (including the Initiating Holders),
                provided that no Registrable Securities shall be excluded unless
                and until all other securities of the Company have been
                excluded. Any Registrable Securities excluded or withdrawn from
                such underwriting shall be withdrawn from the registration.

        (b)     The Company shall not be required to effect a registration
                pursuant to this CLAUSE 1.2:

                (i)     in any particular jurisdiction in which the Company
                        would be required to execute a general consent to
                        service of process in effecting such registration,
                        unless the Company is already subject to service in such
                        jurisdiction and except as may be required under the
                        Act; or

<PAGE>   3

                (ii)    after the Company has effected two (2) registrations
                        pursuant to this CLAUSE 1.2, and such registrations have
                        been declared or ordered effective; or

                (iii)   during the period starting with the date sixty (60) days
                        prior to the Company's good faith estimate of the date
                        of the filing of, and ending on a date one hundred
                        eighty (180) days following the effective date of, a
                        Company-initiated registration subject to CLAUSE 1.3
                        below, provided that the Company is actively employing
                        in good faith all reasonable efforts to cause such
                        registration statement to become effective; or

                (iv)    if the Initiating Holders propose to dispose of
                        Registrable Securities that may be registered on Form
                        S-3 pursuant to CLAUSE 1.4 hereof; or

                (v)     if the Company shall furnish to Holders requesting a
                        registration pursuant to this CLAUSE 1.2, a certificate
                        signed by the Company's Chief Executive Officer or
                        Chairman of the Board stating that in the good faith
                        judgment of the Board of Directors of the Company, it
                        would be seriously detrimental to the Company and its
                        stockholders for such registration to be effected at
                        such time, in which event the Company shall have the
                        right to defer such filing for a period of not more than
                        ninety (90) days after receipt of the request of the
                        Initiating Holders, provided that such right to delay a
                        request shall be exercised by the Company not more than
                        once in any twelve (12)-month period and provided
                        further, that the Company shall not register any other
                        of its shares during such ninety (90) day period.

1.3     Company Registration

        If (but without any obligation to do so) the Company proposes to
        register (including for this purpose a registration effected by the
        Company for stockholders other than the Holders) any of its stock or
        other securities under the Act in connection with the public offering of
        such securities (other than a registration relating solely to the sale
        of securities to participants in a Company stock plan, a registration
        relating to a corporate reorganization or other transaction under Rule
        145 of the Act, a registration on any form that does not include
        substantially the same information as would be required to be included
        in a registration statement covering the sale of the Registrable
        Securities, or a registration in which the only common stock being
        registered is common stock issuable upon conversion of debt securities
        that are also being registered), the Company shall, at such time,
        promptly give each Holder written notice of such registration. Upon the
        written request of each Holder given within twenty (20) days after
        mailing of such notice by the Company, the Company shall, subject to the
        provisions of CLAUSE 1.3(c), use its best efforts to cause a
        registration statement to become effective, which includes all of the
        Registrable Securities that each such Holder has requested to be
        registered.

        (a)     Right to Terminate Registration.

                The Company shall have the right to terminate or withdraw any
                registration initiated by it under this CLAUSE 1.3 prior to the
                effectiveness of such registration whether or not any Holder has
                elected to include securities in such registration. The expenses
                of such withdrawn registration shall be borne by the Company in
                accordance with CLAUSE 1.7 hereof.

        (b)     Underwriting Requirements.

                In connection with any offering involving an underwriting of
                shares of the Company's capital stock, the Company shall not be
                required under this CLAUSE 1.3 to include any of the Holders'
                securities in such underwriting unless they accept the terms of
                the

<PAGE>   4

                        underwriting as agreed upon between the Company and the
                        underwriters selected by it (or by other persons
                        entitled to select the underwriters) and enter into an
                        underwriting agreement in customary form with an
                        underwriter or underwriters selected by the Company. If
                        the total amount of securities, including Registrable
                        Securities, requested by stockholders to be included in
                        such offering exceeds the amount of securities sold
                        other than by the Company that the underwriters
                        determine in their sole discretion is compatible with
                        the success of the offering, then the Company shall be
                        required to include in the offering only that number of
                        such securities, including Registrable Securities, that
                        the underwriters determine in their sole discretion will
                        not jeopardize the success of the offering (the
                        securities so included to be apportioned pro rata among
                        the selling Holders according to the total amount of
                        securities entitled to be included therein owned by each
                        selling Holder or in such other proportions as shall
                        mutually be agreed to by such selling Holders, except
                        that no Registrable Securities shall be excluded until
                        all common stock held by other shareholders, directors,
                        officers and employees of the Company have been
                        excluded), but in no event shall the amount of
                        securities of the selling Holders included in the
                        offering be reduced below twenty-five percent (25%) of
                        the total amount of securities included in such
                        offering, unless such offering is the Initial Offering
                        of the Company's securities, in which case the selling
                        Holders may be excluded if the underwriters make the
                        determination described above and no other stockholder's
                        securities are included. For purposes of the preceding
                        parenthetical concerning apportionment, for any selling
                        stockholder that is a Holder of Registrable Securities
                        and that is a partnership or corporation, the partners,
                        retired partners and stockholders of such Holder, or the
                        estates and family members of any such partners and
                        retired partners and any trusts for the benefit of any
                        of the foregoing persons shall be deemed to be a single
                        "selling Holder," and any pro rata reduction with
                        respect to such "selling Holder" shall be based upon the
                        aggregate amount of Registrable Securities owned by all
                        such related entities and individuals.

1.4     Form S-3 Registration

        In case the Company shall receive from the Holders of the Registrable
        Securities then outstanding a written request or requests that the
        Company effect a registration on Form S-3 and any related qualification
        or compliance with respect to all or a part of the Registrable
        Securities owned by such Holder or Holders, the Company shall:

        (a)     promptly give written notice of the proposed registration, and
                any related qualification or compliance, to all other Holders;
                and

        (b)     use best efforts to effect, as soon as practicable, such
                registration and all such qualifications and compliances as may
                be so requested and as would permit or facilitate the sale and
                distribution of all or such portion of such Holders' Registrable
                Securities as are specified in such request, together with all
                or such portion of the Registrable Securities of any other
                Holders joining in such request as are specified in a written
                request given within fifteen (15) days after receipt of such
                written notice from the Company, provided, however, that the
                Company shall not be obligated to effect any such registration,
                qualification or compliance, pursuant to this CLAUSE 1.4:

                (i)     if Form S-3 is not available for such offering by the
                        Holders;

                (ii)    if the Holders, together with the holders of any other
                        securities of the Company entitled to inclusion in such
                        registration, propose to sell Registrable Securities and
                        such other securities (if any) at an aggregate price to
                        the public (net of any underwriters' discounts or
                        commissions) of less than $500,000;

<PAGE>   5

                (iii)   if the Company shall furnish to the Holders a
                        certificate signed by the Chief Executive Officer or
                        Chairman of the Board of the Company stating that in the
                        good faith judgment of the Board of Directors of the
                        Company, it would be seriously detrimental to the
                        Company and its stockholders for such Form S-3
                        registration to be effected at such time, in which event
                        the Company shall have the right to defer the filing of
                        the Form S-3 registration statement for a period of not
                        more than ninety (90) days after receipt of the request
                        of the Holder or Holders under this CLAUSE 1.4;
                        provided, however, that the Company shall not utilize
                        this right more than once in any twelve (12) month
                        period; and provided further, that the Company shall not
                        register any other of its shares during such 90 day
                        period;

                (iv)    if the Company has, within the six (6) month period
                        preceding the date of such request, already effected one
                        registration on Form S-3 for the Holders pursuant to
                        this CLAUSE 1.4; or

                (v)     in any particular jurisdiction in which the Company
                        would be required to qualify to do business, where not
                        otherwise required, or to execute a general consent to
                        service of process in effecting such registration,
                        qualification or compliance.

        (c)     Subject to the foregoing, the Company shall file a registration
                statement covering the Registrable Securities and other
                securities so requested to be registered as soon as practicable
                after receipt of the request or requests of the Holders.
                Registrations effected pursuant to this CLAUSE 1.4 shall not be
                counted as requests for registration effected pursuant to CLAUSE
                1.2.

1.5     Obligations of the Company

        Whenever required under this CLAUSE 1 to effect the registration of any
        Registrable Securities, the Company shall, as expeditiously as
        reasonably possible:

        (a)     prepare and file with the SEC a registration statement with
                respect to such Registrable Securities and use best efforts to
                cause such registration statement to become effective, and, upon
                the request of the Holders of a majority of the Registrable
                Securities registered thereunder, keep such registration
                statement effective for a period of up to one hundred twenty
                (120) days or, if earlier, until the distribution contemplated
                in the Registration Statement has been completed;

        (b)     prepare and file with the SEC such amendments and supplements to
                such registration statement and the prospectus used in
                connection with such registration statement as may be necessary
                to comply with the provisions of the Act with respect to the
                disposition of all securities covered by such registration
                statement;

        (c)     furnish to the Holders (i) a draft copy of the registration
                statement, and (ii) such numbers of copies of a prospectus,
                including a preliminary prospectus, in conformity with the
                requirements of the Act, and such other documents as they may
                reasonably request in order to facilitate the disposition of
                Registrable Securities owned by them;

        (d)     use best efforts to register and qualify the securities covered
                by such registration statement under such other securities or
                Blue Sky laws of such jurisdictions as shall be reasonably
                requested by the Holders, provided that the Company shall not be
                required in connection therewith or as a condition thereto to
                qualify to do business, where not otherwise required, or to file
                a general consent to service of process in any such states or
                jurisdictions;

<PAGE>   6

        (e)     in the event of any underwritten public offering, enter into and
                perform its obligations under an underwriting agreement, in
                usual and customary form, with the managing underwriter of such
                offering;

        (f)     notify each Holder of Registrable Securities covered by such
                registration statement, at any time when a prospectus relating
                thereto is required to be delivered under the Act, of (i) the
                issuance of any stop order by the SEC in respect of such
                registration statement, or (ii) the happening of any event as a
                result of which the prospectus included in such registration
                statement, as then in effect, includes an untrue statement of a
                material fact or omits to state a material fact required to be
                stated therein or necessary to make the statements therein not
                misleading in the light of the circumstances then existing;

        (g)     if the Registrable Securities are being sold through
                underwriters, furnish, upon the request of the Holders of a
                majority of the Registrable Securities requesting registration,
                on the date that such Registrable Securities are delivered to
                the underwriters for sale, (i) an opinion, dated as of such
                date, of the counsel representing the Company for the purposes
                of such registration, in form and substance as is customarily
                given to underwriters in an underwritten public offering and
                reasonably satisfactory to a majority in interest of the Holders
                requesting registration, addressed to the underwriters and to
                the Holders requesting registration of Registrable Securities,
                and (ii) a "comfort" letter dated as of such date, from the
                independent certified public accountants of the Company, in form
                and substance as is customarily given by independent certified
                public accountant to underwriters in an underwritten public
                offering and reasonably satisfactory to a majority in interest
                of the Holders requesting registration, addressed to the
                underwriters and to the Holders requesting registration of
                Registrable Securities;

        (h)     cause all such Registrable Securities registered pursuant
                hereunder to be listed on each securities exchange on which
                similar securities issued by the Company are then listed;
                provided that in the case of a registration effected pursuant to
                CLAUSE 1.2 above, which registration constitutes the Initial
                Offering, the Registrable Securities shall be listed on a
                national securities exchange or the NASDAQ National Market
                System; and

        (i)     provide a transfer agent and registrar for all Registrable
                Securities registered pursuant hereunder and a CUSIP number for
                all such Registrable Securities, in each case not later than the
                effective date of such registration.

1.6     Information from Holder

        It shall be a condition precedent to the obligations of the Company to
        take any action pursuant to this CLAUSE 1 with respect to the
        Registrable Securities of any selling Holder that such Holder shall
        furnish to the Company such information regarding itself, the
        Registrable Securities held by it, and the intended method of
        disposition of such securities as shall be reasonably required to effect
        the registration of such Holder's Registrable Securities.

1.7     Expenses of Registration

<PAGE>   7

        All expenses other than underwriting discounts and commissions incurred
        in connection with registrations, filings or qualifications pursuant to
        CLAUSES 1.2, 1.3 and 1.4, including (without limitation) all
        registration, filing and qualification fees (including Blue Sky fees),
        printers' and accounting fees, fees and disbursements of counsel for the
        Company and the reasonable fees and disbursements of one counsel for the
        selling Holders shall be borne by the Company. Notwithstanding the
        foregoing, the Company shall not be required to pay for any expenses of
        any registration proceeding begun pursuant to CLAUSE 1.2 or CLAUSE 1.4
        if the registration request is subsequently withdrawn at the request of
        the Holders of a majority of the Registrable Securities to be registered
        (in which case all participating Holders shall bear such expenses pro
        rata based upon the number of Registrable Securities that were to be
        requested in the withdrawn registration), unless, in the case of a
        registration requested under CLAUSE 1.2, the Holders of a majority of
        the Registrable Securities agree to forfeit their right to one demand
        registration pursuant to CLAUSE 1.2, provided, however, that if at the
        time of such withdrawal, the Holders have learned of a material adverse
        change in the condition, business or prospects of the Company from that
        known to the Holders at the time of their request and have withdrawn the
        request with reasonable promptness following disclosure by the Company
        of such material adverse change, then the Holders shall not be required
        to pay any of such expenses and shall retain their rights pursuant to
        CLAUSE 1.2 or 1.4.

1.8     Delay of Registration

        No Holder shall have any right to obtain or seek an injunction
        restraining or otherwise delaying any such registration as the result of
        any controversy that might arise with respect to the interpretation or
        implementation of this CLAUSE 1.

1.9     Indemnification

        In the event any Registrable Securities are included in a registration
        statement under this CLAUSE 1:

        (a)     To the extent permitted by law, the Company will indemnify and
                hold harmless each Holder, the partners or officers, directors
                and stockholders of each Holder, legal counsel and accountants
                for each Holder, any underwriter (as defined in the Act) for
                such Holder and each person, if any, who controls such Holder or
                underwriter, within the meaning of the Act or the 1934 Act,
                against any losses, claims, damages or liabilities (joint or
                several) to which they may become subject under the Act, the
                1934 Act or any state securities laws, insofar as such losses,
                claims, damages or liabilities (or actions in respect thereof)
                arise out of or are based upon any of the following statements,
                omissions or violations (collectively a "Violation"): (i) any
                untrue statement or alleged untrue statement of a material fact
                contained in such registration statement, including any
                preliminary prospectus or final prospectus contained therein or
                any amendments or supplements thereto, (ii) the omission or
                alleged omission to state therein a material fact required to be
                stated therein, or necessary to make the statements therein not
                misleading, or (iii) any violation or alleged violation by the
                Company of the Act, the 1934 Act, any state securities laws or
                any rule or regulation promulgated under the Act, the 1934 Act
                or any state securities laws; and the Company will reimburse
                each such Holder, partner, officer, director, stockholder,
                counsel, accountant, underwriter or controlling person for any
                legal or other expenses reasonably incurred by them in
                connection with investigating or defending any such loss, claim,
                damage, liability or action as such expenses are incurred;
                provided, however, that the indemnity agreement contained in
                this SUBCLAUSE 1.9(a) shall not apply to amounts paid in
                settlement of any such loss, claim, damage, liability or action
                if such settlement is effected without the consent of the
                Company (which consent shall not be unreasonably withheld), nor
                shall the Company be liable in any such case for any such loss,
                claim, damage, liability or action to the extent that it arises
                out of or is

<PAGE>   8

                based upon a Violation that occurs in reliance upon and in
                conformity with written information furnished expressly for use
                in connection with such registration by any such Holder,
                underwriter or controlling person; provided further, however,
                that the foregoing indemnity agreement with respect to any
                preliminary prospectus shall not inure to the benefit of any
                Holder or underwriter, or any person controlling such Holder or
                underwriter, from whom the person asserting any such losses,
                claims, damages or liabilities purchased shares in the offering,
                if a copy of the prospectus (as then amended or supplemented if
                the Company shall have furnished any amendments or supplements
                thereto) was not sent or given by or on behalf of such Holder or
                underwriter to such person, if required by law so to have been
                delivered, at or prior to the written confirmation of the sale
                of the shares to such person, and if the prospectus (as so
                amended or supplemented) would have cured the defect giving rise
                to such loss, claim, damage or liability.

        (b)     To the extent permitted by law, each selling Holder, on a
                several and not joint basis, will indemnify and hold harmless
                the Company, each of its directors, each of its officers who has
                signed the registration statement, each person, if any, who
                controls the Company within the meaning of the Act, legal
                counsel and accountants for the Company, any underwriter, any
                other Holder selling securities in such registration statement
                and any controlling person of any such underwriter or other
                Holder, against any losses, claims, damages or liabilities
                (joint or several) to which any of the foregoing persons may
                become subject, under the Act, the 1934 Act or any state
                securities laws, insofar as such losses, claims, damages or
                liabilities (or actions in respect thereto) arise out of or are
                based upon any Violation (but excluding clause (iii) of the
                definition thereof), in each case to the extent (and only to the
                extent) that such Violation occurs in reliance upon and in
                conformity with written information furnished by such Holder
                expressly for use in connection with such registration; and each
                such Holder will reimburse any person intended to be indemnified
                pursuant to this SUBCLAUSE 1.9(b) for any legal or other
                expenses reasonably incurred by such person in connection with
                investigating or defending any such loss, claim, damage,
                liability or action; provided, however, that the indemnity
                agreement contained in this SUBCLAUSE1.9(b) shall not apply to
                amounts paid in settlement of any such loss, claim, damage,
                liability or action if such settlement is effected without the
                consent of the Holder (which consent shall not be unreasonably
                withheld), provided that in no event shall any indemnity under
                this SUBCLAUSE 1.9(b) exceed the net proceeds from the offering
                received by such Holder.

        (c)     Promptly after receipt by an indemnified party under this CLAUSE
                1.9 of actual knowledge of the commencement of any action
                (including any governmental action), such indemnified party
                will, if a claim in respect thereof is to be made against any
                indemnifying party under this CLAUSE 1.9, deliver to the
                indemnifying party a written notice of the commencement thereof
                and the indemnifying party shall have the right to participate
                in, and, to the extent the indemnifying party so desires,
                jointly with any other indemnifying party similarly noticed, to
                assume the defense thereof with counsel mutually satisfactory to
                the parties; provided, however, that an indemnified party
                (together with all other indemnified parties that may be
                represented without conflict by one counsel) shall have the
                right to retain one separate counsel, with the fees and expenses
                to be paid by the indemnifying party, if representation of such
                indemnified party by the counsel retained by the indemnifying
                party would be inappropriate due to actual or potential
                differing interests between such indemnified party and any other
                party represented by such counsel in such proceeding. The
                failure to deliver written notice to the indemnifying party
                within a reasonable time of the commencement of any such action,
                if prejudicial to its ability to defend such action, shall
                relieve such indemnifying party of any liability to the
                indemnified party under this CLAUSE 1.9 to the extent of such
                prejudice, but the omission to so deliver written notice to the

<PAGE>   9

                indemnifying party will not relieve it of any liability that it
                may have to any indemnified party otherwise than under this
                CLAUSE 1.9.

        (d)     If the indemnification provided for in this CLAUSE 1.9 is held
                by a court of competent jurisdiction to be unavailable to an
                indemnified party with respect to any loss, liability, claim,
                damage or expense referred to herein, then the indemnifying
                party, in lieu of indemnifying such indemnified party hereunder,
                shall contribute to the amount paid or payable by such
                indemnified party as a result of such loss, liability, claim,
                damage or expense in such proportion as is appropriate to
                reflect the relative fault of and the relative benefits received
                by the indemnifying party on the one hand and of the indemnified
                party on the other in connection with the statements or
                omissions that resulted in such loss, liability, claim, damage
                or expense, as well as any other relevant equitable
                considerations, provided that no person guilty of fraud shall be
                entitled to contribution. The relative fault of the indemnifying
                party and of the indemnified party shall be determined by
                reference to, among other things, whether the untrue or alleged
                untrue statement of a material fact or the omission to state a
                material fact relates to information supplied by the
                indemnifying party or by the indemnified party and the parties'
                relative intent, knowledge, access to information, and
                opportunity to correct or prevent such statement or omission.
                The relative benefits received by the indemnifying party and the
                indemnified party shall be determined by reference to the net
                proceeds and underwriting discounts and commissions from the
                offering received by each such party. In no event shall any
                contribution under this SUBCLAUSE 1.9(d) exceed the net proceeds
                from the offering received by such Holder, less any amounts paid
                under SUBCLAUSE 1.9(b).

        (e)     Notwithstanding the foregoing, to the extent that the provisions
                on indemnification and contribution contained in the
                underwriting agreement entered into in connection with the
                underwritten public offering are in conflict with the foregoing
                provisions, the provisions in the underwriting agreement shall
                control.

        (f)     The obligations of the Company and Holders under this CLAUSE 1.9
                shall survive the completion of any offering of Registrable
                Securities in a registration statement under this CLAUSE 1, and
                otherwise.

1.10    Reports Under Securities Exchange Act of 1934.

        With a view to making available to the Holders the benefits of Rule 144
        promulgated under the Act and any other rule or regulation of the SEC
        that may at any time permit a Holder to sell securities of the Company
        to the public without registration or pursuant to a registration on Form
        S-3, the Company agrees to:

        (a)     make and keep public information available, as those terms are
                understood and defined in SEC Rule 144, at all times after the
                effective date of the Initial Offering;

        (b)     file with the SEC in a timely manner all reports and other
                documents required of the Company under the Act and the 1934
                Act; and

        (c)     furnish to any Holder, so long as the Holder owns any
                Registrable Securities, forthwith upon request (i) a written
                statement by the Company that it has complied with the reporting
                requirements of SEC Rule 144 (at any time after ninety (90) days
                after the effective date of the first registration statement
                filed by the Company), the Act and the 1934 Act (at any time
                after it has become subject to such reporting requirements), or
                that it qualifies as a registrant whose securities may be resold
                pursuant to Form S-3 (at any time after it so qualifies), (ii) a
                copy of the most recent annual or quarterly report of the
                Company and such other reports and documents so

<PAGE>   10

                filed by the Company, and (iii) such other information as may be
                reasonably requested in availing any Holder of any rule or
                regulation of the SEC that permits the selling of any such
                securities without registration or pursuant to such form.

1.11    Assignment of Registration Rights

        The rights to cause the Company to register Registrable Securities
        pursuant to this CLAUSE 1 may be assigned (but only with all related
        obligations) by a Holder to a transferee or assignee of such securities
        that (i) is a subsidiary, affiliate, parent, partner, limited partner,
        retired partner or stockholder of a Holder, (ii) is a Holder's immediate
        family member (spouse or child) or trust for the benefit of an
        individual Holder, or (iii) after such assignment or transfer, holds at
        least 10,000 shares of Registrable Securities (subject to appropriate
        adjustment for stock splits, stock dividends, combinations and other
        recapitalizations), provided: (a) the Company is, within a reasonable
        time after such transfer, furnished with written notice of the name and
        address of such transferee or assignee and the securities with respect
        to which such registration rights are being assigned; (b) such
        transferee or assignee agrees in writing to be bound by and subject to
        the terms and conditions of this Agreement, including without limitation
        the provisions of CLAUSE 1.13 below; and (c) such assignment shall be
        effective only if immediately following such transfer the further
        disposition of such securities by the transferee or assignee is
        restricted under the Act.

1.12    Limitations on  Subsequent Registration Rights

        From and after the date of this Agreement, the Company shall not,
        without the prior written consent of the Holders of fifty percent (50%)
        of the Registrable Securities, enter into any agreement with any holder
        or prospective holder of any securities of the Company that would allow
        such holder or prospective holder (a) to include such securities in any
        registration filed under CLAUSE 1.3 hereof, unless under the terms of
        such agreement, such holder or prospective holder may include such
        securities in any such registration only to the extent that the
        inclusion of such securities will not reduce the amount of the
        Registrable Securities of the Holders that are included or (b) to demand
        registration of their securities.

1.13    "Market Stand-Off" Agreement

        Each Holder hereby agrees that it will not, without the prior written
        consent of the Company and the managing underwriter, during the period
        commencing on the date of the final prospectus relating to the Company's
        initial public offering and ending on the date specified by the Company
        and the managing underwriter (such period not to exceed one hundred
        eighty (180) days) (i) lend, offer, pledge, sell, contract to sell, sell
        any option or contract to purchase, purchase any option or contract to
        sell, grant any option, right or warrant to purchase, or otherwise
        transfer or dispose of, directly or indirectly, any shares of common
        stock or any securities convertible into or exercisable or exchangeable
        for common stock (whether such shares or any such securities are then
        owned by the Holder or are thereafter acquired), or (ii) enter into any
        swap or other arrangement that transfers to another, in whole or in
        part, any of the economic consequences of ownership of the common stock,
        whether any such transaction described in clause (i) or (ii) above is to
        be settled by delivery of common stock or such other securities, in cash
        or otherwise. The foregoing provisions of this CLAUSE 1.13 shall apply
        only to the Company's initial public offering of equity securities,
        shall not apply to the sale of any shares to an underwriter pursuant to
        an underwriting agreement, and shall only be applicable to the Holders
        if all officers and directors and greater than five percent (5%)
        stockholders of the Company enter into similar agreements. The
        underwriters in connection with the Company's initial public offering
        are intended third party beneficiaries of this CLAUSE 1.13 and shall
        have the right, power and authority to enforce the provisions hereof as
        though they were a party hereto. Notwithstanding the foregoing, nothing
        in this CLAUSE 1.13 shall prevent the undersigned from making a transfer
        of any common stock that was listed on a

<PAGE>   11

        national stock exchange, any NMF security or traded on Nasdaq at the
        time it was acquired by the Holder or was acquired by the undersigned
        pursuant to Rule 144A of the Act, including any shares acquired in the
        Company's initial public offering.

        In order to enforce the foregoing covenant, the Company may impose
        stop-transfer instructions with respect to the Registrable Securities of
        each Holder (and the shares or securities of every other person subject
        to the foregoing restriction) until the end of such period.

1.14    Termination of Registration Rights

        No Holder shall be entitled to exercise any right provided for in this
        CLAUSE 1 after five (5) years following the Closing Date or, as to any
        Holder, such earlier time at which all Registrable Securities held by
        such Holder (and any affiliate of the Holder with whom such Holder must
        aggregate its sales under Rule 144) can be sold in any three (3)-month
        period without registration in compliance with Rule 144 of the Act.

2.      MISCELLANEOUS

2.1     Successors and Assigns.

        Except as otherwise provided herein, the terms and conditions of this
        Agreement shall inure to the benefit of and be binding upon the
        respective successors and assigns of the parties (including transferees
        of any shares of Registrable Securities). Nothing in this Agreement,
        express or implied, is intended to confer upon any party other than the
        parties hereto or their respective successors and assigns any rights,
        remedies, obligations, or liabilities under or by reason of this
        Agreement, except as expressly provided in this Agreement.

2.2     Governing Law

        This Agreement shall be governed by and construed under the laws of the
        State of California as applied to agreements among California residents
        entered into and to be performed entirely within California.

2.3     Counterparts

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

2.4     Titles and Subtitles.

        The titles and subtitles used in this Agreement are used for convenience
        only and are not to be considered in construing or interpreting this
        Agreement.

2.5     Notices.

        Unless otherwise provided, any notice required or permitted under this
        Agreement shall be given in writing and shall be deemed effectively
        given upon personal delivery to the party to be notified or upon
        delivery by confirmed facsimile transmission, nationally recognized
        overnight courier service, or upon deposit with the United States Post
        Office, by registered or certified mail, postage prepaid and addressed
        to the party to be notified at the address indicated for such party on
        the signature page hereof, or at such other address as such party may
        designate by ten (10) days' advance written notice to the other parties.

2.6     Expenses

<PAGE>   12

        If any action at law or in equity is necessary to enforce or interpret
        the terms of this Agreement, the prevailing party shall be entitled to
        reasonable attorneys' fees, costs and necessary disbursements in
        addition to any other relief to which such party may be entitled.

2.7     Entire Agreement; Amendments and Waivers

        This Agreement (including the Exhibits hereto, if any) constitutes the
        full and entire understanding and agreement among the parties with
        regard to the subjects hereof and thereof. Any term of this Agreement
        may be amended and the observance of any term of this Agreement may be
        waived (either generally or in a particular instance and either
        retroactively or prospectively), only with the written consent of the
        Company and the holders of no less than a majority of the Registrable
        Securities then outstanding. Any amendment or waiver effected in
        accordance with this paragraph shall be binding upon each holder of any
        Registrable Securities, each future holder of all such Registrable
        Securities and the Company. Notwithstanding the foregoing, any amendment
        of CLAUSE 1.13 shall require the consent of each Holder which is a
        registered investment company.

2.8     Severability

        If one or more provisions of this Agreement are held to be unenforceable
        under applicable law, such provision shall be excluded from this
        Agreement and the balance of the Agreement shall be interpreted as if
        such provision were so excluded and shall be enforceable in accordance
        with its terms.

2.9     Aggregation of Stock.

(a)     All shares of Registrable Securities held or acquired by entities
        advised by the same investment adviser and affiliated entities or
        persons shall be aggregated together for the purpose of determining the
        availability of any rights under this Agreement.

IN WITNESS WHEREOF, the Parties have executed this Agreement as of the date
first above written.

SIGNED by                                 )
                                          )
for and on behalf of                      )
ANTHEM RECORDING WEST INC.                )

President:

Address:

<PAGE>   13

                                          )
                                          )
the Common Seal                           )
ATLAS TRUST COMPANY (JERSEY)              )/s/ Ian Richard Swindale
LIMITED WAS HERUNTO AFFIXED               )Director
in the presence of :                      )

Witness' signature:                       /s/ Ian Robert Dove

Name:
Address:

Occupation:                               Director

SIGNED by                                 ) /s/ Robert James Burton
                                          )
for and on behalf of                      )
TAVENDISH ENTERPRISES LIMITED             )
in the presence of :                      )

Witness' signature:                       /s/ Peter Joughin Cannell

Name:
Address:

Occupation:                               Chartered Secretary

SIGNED by                                 )
                                          )
for and on behalf of                      )
RYLEY HILL LIMITED                        ) /s/ D. J. Shortland
in the presence of :                      )

Witness' signature:          /s/ A. Abbott

Name:                        A. Abbott
Address:

Occupation:                  Estate Agent

<PAGE>   14

SIGNED by                                 )
DAVID JOHN SHORTLAND                      ) /s/ D. J. Shortland
in the presence of:                       )

Witness' signature:                       /s/ A. Abbott
Name:                                     Adison Abbott
Address:

Occupation:                               Estate Agent

SIGNED by PAULA LORAINE                   )
SHORTLAND in the                          ) /s/ P.L. Shortland
presence of:                              )
Witness' signature:                       /s/ A. Abbott
Name:                                     Adison Abbott
Address:

Occupation:                               Estate Agent

SIGNED by                                 ) /s/ D. J. Shortland
DAVID JOHN SHORTLAND,                     )/s/ C.E. Catherall
CHRISTINE ELIZABETH                       )
CATHERALL, BRUCE CARLESS and              )/s/ Bruce Carless
BETTY MAY SHORTLAND                       )/s/ B.M. Shortland
as trustees of the SHORTLAND NO.1         )
TRUST                                     )
in the presence of:                       )
Witness' signature:                       /s/ A. Abbott

Name:                                     Adison Abbott

Address:

Occupation                                Esate Agent

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