Document:

Exhibit 4.1

WAIVER

TO CONVERTIBLE SUBORDINATED NOTES

THIS WAIVER (“Waiver”) is made and entered into as of this 7th day of November,
2006, by and among ARTISTdirect, Inc., a Delaware corporation (the “Company”), and the undersigned Holders.  Capitalized terms used herein and undefined
shall have the meanings set forth in the Subordinated Notes (defined in the
Recitals below).

RECITALS:

WHEREAS, reference is
made to those certain Convertible Subordinated Notes originally issued by the
Company on July 28, 2005, as amended, pursuant to the terms of a Securities
Purchase Agreement dated as of July 28, 2005, as amended, by and among the
Company and the Holders (collectively, the “Subordinated Notes”);

WHEREAS, Section 8(f)(v) of
the Subordinated Notes (“Section 8(f)(v)”)
contain a negative covenant pertaining to the Company’s Consolidated Fixed
Charge Coverage Ratio, to be calculated quarterly;

WHEREAS, pursuant to
Section 2 of the Subordinated Notes, the first cash payment of accrued interest
was not due and payable to the Holders by the Company until September 30, 2006;

WHEREAS, as a result of
the Company making a cash payment to the Holders for interest that accrued on
the Subordinated Notes for an approximate fourteen (14) month period ended
September 30, 2006 (the “First Interest Payment”),
the Company was in default of Section 8(f)(v) at September 30, 2006;  and

WHEREAS, the Holders have
agreed to waive any default by the Company of Section 8(f)(v) that was triggered
at September 30, 2006 as a result of the First Interest Payment.

NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual agreement herein
contained and for other good and valuable consideration, the parties hereto
agree as follows:

1.             WAIVER.   The Holders agree to waive the Event
of Default under the Subordinated Notes that may have been triggered prior to
the date hereof due to a breach of the negative covenant contained in Section 8(f)(v)
as a result of the First Interest Payment. 
Except as expressly set forth in the immediately preceding sentence,
nothing contained herein shall be construed as a waiver of any other rights the
Holders may have under the Subordinated Notes.

2.             CONFLICTS.  Except as expressly set forth in this Waiver,
the terms and provisions of the Subordinated Notes shall continue unmodified
and in full force and effect.  In the
event of any conflict between this Waiver and the Subordinated Notes, this Waiver
shall control.

3.             GOVERNING LAW.  This Waiver shall be governed and construed
under the laws of the State of New York, and shall be binding on and shall
inure to the benefit of the parties and their respective successors and
permitted assigns.

4.             COUNTERPARTS.  This Waiver may be executed in any number of counterparts,
each of which shall be an original, but all of which together shall constitute
one instrument.

 1
 

 

IN WITNESS WHEREOF, the
parties hereto have executed this Waiver as of the date first set forth above.

	
  COMPANY:

  
	
   

  
	
  ARTISTdirect,
  Inc.

  
	
   

  
	
  By:

  	
  /s/ Robert N.
  Weingarten

  	
   

  
	
   

  
	
  Name:

  	
  Robert N.
  Weingarten

  	
   

  
	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  
	
   

  
	
  HOLDERS:

  
	
   

  
	
   

  
	
  DKR
  SoundShore Oasis Holding Fund Ltd.

  
	
   

  
	
  By:

  	
  /s/ Barbara
  Burger

  	
   

  
	
   

  
	
  Name:

  	
  Barbara Burger

  	
   

  
	
   

  
	
  Title:

  	
  Director

  	
   

  
	
   

  
	
   

  
	
  CCM
  Master Qualified Fund Ltd.

  
	
   

  
	
  By:

  	
  /s/ Clint D.
  Coghill

  	
   

  
	
   

  
	
  Name:

  	
  Clint D. Coghill

  	
   

  
	
   

  
	
  Title:

  	
  Director

  	
   

  
	
   

  
	
   

  
	
  JLF
  Partners I, LP

  
	
   

  
	
  By:

  	
  /s/ H. Tran

  	
   

  
	
   

  
	
  Name:

  	
  H. Tran

  	
   

  
	
   

  
	
  Title:

  	
  CFO

  	
   

  

 

 2
 

 

 

	
  JLF Partners II, LP

  
	
   

  
	
  By:

  	
  /s/ H. Tran

  	
   

  
	
   

  
	
  Name:

  	
  H. Tran

  	
   

  
	
   

  
	
  Title:

  	
  CFO

  	
   

  
	
   

  
	
  JLF
  Offshore Fund, Ltd.

  
	
   

  
	
  By:

  	
  /s/ H. Tran

  	
   

  
	
   

  
	
  Name:

  	
  H. Tran

  	
   

  
	
   

  
	
  Title:

  	
  CFO

  	
   

  
	
   

  
	
  Longview
  Fund, LP

  
	
   

  
	
  By:

  	
  /s/ S. Michael
  Rudolph

  	
   

  
	
   

  
	
  Name:

  	
  S. Michael
  Rudolph

  	
   

  
	
   

  
	
  Title:

  	
  CFO – Investment
  Advisor

  	
   

  
	
   

  
	
  Longview
  Equity Fund, LP

  
	
   

  
	
  By:

  	
  /s/ S. Michael
  Rudolph

  	
   

  
	
   

  
	
  Name:

  	
  S. Michael
  Rudolph

  	
   

  
	
   

  
	
  Title:

  	
  CFO – Investment
  Advisor

  	
   

  
	
   

  
	
  Longview
  International Equity Fund, LP

  
	
   

  
	
  By:

  	
  /s/ S. Michael
  Rudolph

  	
   

  
	
   

  
	
  Name:

  	
  S. Michael
  Rudolph

  	
   

  
	
   

  
	
  Title:

  	
  CFO – Investment
  Advisor

  	
   

  
	
   

  
	
  Randy
  Saaf

  
	
   

  
	
  By:

  	
  /s/ Randy Saaf

  	
   

  
	
   

  
	
  Octavio
  Herrera

  
	
   

  
	
  By:

  	
  /s/ Octavio
  Herrera

  	
   

  
	
   

  
	
  Michael
  Rapp

  
	
   

  
	
  By:

  	
  /s/ Michael Rapp

  	
   

  

 

 3
 

 

 

	
  Philip Wagenheim

  
	
   

  
	
  By:

  	
  /s/ Philip
  Wagenheim

  	
   

  
	
   

  
	
  Karl
  Brenza

  
	
   

  
	
  By:

  	
  /s/ Karl Brenza

  	
   

  
	
   

  
	
  Jeffrey
  Meshel

  
	
   

  
	
  By:

  	
  /s/ Jeffrey
  Meshel

  	
   

  
	
   

  
	
  Cliff
  Chapman

  
	
   

  
	
  By:

  	
  /s/ Cliff
  Chapman

  	
   

  

 

 4Exhibit 10.1

WAIVER

TO NOTE AND WARRANT PURCHASE AGREEMENT

THIS WAIVER (“Waiver”) is made and entered into as of this 7th day of November,
2006, by and among ARTISTdirect, Inc., a Delaware corporation (the “Company”), and the undersigned Purchasers.  Capitalized terms used herein and undefined
shall have the meanings set forth in the Agreement (as defined in the Recitals
below).

RECITALS:

WHEREAS, reference is
made to that certain Note and Warrant Purchase Agreement dated as of July 28,
2005 (the “Effective Date”), as amended, by and
among the Company and the Purchasers (the “Agreement”);

WHEREAS, on the Effective
Date, the Company also delivered a series of Convertible Subordinated Notes, as
amended (collectively, the “Subordinated Notes”),
issued pursuant to the terms of a Securities Purchase Agreement dated as of
July 28, 2005, as amended, by and among the Company and the holders of such
convertible debt identified on the signature pages thereto (collectively, the “Holders”);

WHEREAS, Section 7(h)(v) of
the Agreement (“Section 7(h)(v)”) contains a
negative covenant pertaining to the Company’s Consolidated Fixed Charge
Coverage Ratio, to be calculated quarterly;

WHEREAS, pursuant to
Section 2 of the Subordinated Notes, the first cash payment of accrued interest
was not due and payable to the Holders by the Company until September 30, 2006;

WHEREAS, as a result of
the Company making a cash payment to the Holders for interest that accrued on
the Subordinated Notes for an approximate fourteen (14) month period ended
September 30, 2006 (the “First Interest Payment”),
the Company was in default of Section 7(h)(v) at September 30, 2006;  and

WHEREAS, the Purchasers
have agreed to waive any default by the Company of Section 7(h)(v) that was triggered
at September 30, 2006 as a result of the First Interest Payment.

NOW, THEREFORE, in
consideration of the foregoing recitals and the mutual agreement herein
contained and for other good and valuable consideration, the parties hereto
agree as follows:

1.             WAIVER.   The Purchasers agree to waive the
Event of Default under the Agreement that may have been triggered prior to the
date hereof due to a breach of the negative covenant contained in Section 7(h)(v)
as a result of the First Interest Payment. 
Except as expressly set forth in the immediately preceding sentence,
nothing contained herein shall be construed as a waiver of any other rights the
Purchasers may have under the Agreement.

2.             CONFLICTS.  Except as expressly set forth in this Waiver,
the terms and provisions of the Agreement shall continue unmodified and in full
force and effect.  In the event of any
conflict between this Waiver and the Agreement, this Waiver shall control.

3.             GOVERNING LAW.  This Waiver shall be governed and construed
under the laws of the State of New York, and shall be binding on and shall
inure to the benefit of the parties and their respective successors and
permitted assigns.

 1
 

 

4.             COUNTERPARTS.  This Waiver may be executed in any number of counterparts,
each of which shall be an original, but all of which together shall constitute
one instrument.

IN WITNESS WHEREOF, the
parties hereto have executed this Waiver as of the date first set forth above.

	
  COMPANY:

  
	
   

  
	
  ARTISTdirect,
  Inc.

  
	
   

  
	
  By:

  	
  /s/ Robert N.
  Weingarten

  	
   

  
	
   

  
	
  Name:

  	
  Robert N.
  Weingarten

  	
   

  
	
   

  
	
  Title:

  	
  Chief Financial
  Officer

  	
   

  
	
   

  
	
   

  
	
  PURCHASERS:

  
	
   

  
	
   

  
	
  CCM
  Master Qualified Fund Ltd.

  
	
   

  
	
  By:

  	
  /s/ Clint D.
  Coghill

  	
   

  
	
   

  
	
  Name:

  	
  Clint D. Coghill

  	
   

  
	
   

  
	
  Title:

  	
  Director

  	
   

  
	
   

  
	
  JMB
  Capital Partners, LP

  
	
   

  
	
  By:

  	
  /s/ Cyrus Hadidi

  	
   

  
	
   

  
	
  Name:

  	
  Cyrus Hadidi

  	
   

  
	
   

  
	
  Title:

  	
  Partner

  	
   

  
	
   

  
	
  JMG
  Capital Parnters, LP

  
	
   

  
	
  By:

  	
  /s/ Jonathan M.
  Glaser

  	
   

  
	
   

  
	
  Name:

  	
  Jonathan M.
  Glaser

  	
   

  
	
   

  
	
  Title:

  	
  Member Manager

  	
   

  
	
   

  
	
  JMG
  Triton Offshore Fund, Ltd.

  
	
   

  
	
  By:

  	
  /s/ Jonathan M.
  Glaser

  	
   

  
	
   

  
	
  Name:

  	
  Jonathan M.
  Glaser

  	
   

  

 

 2
 

 

 

	
  Title:

  	
  Member Manager

  	
   

  

 

 3

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