Document:

EXHIBIT 10.1

 

DLJ MB IV HRH, LLC

Eleven Madison Avenue, 16th Floor

New York, New York 10010

 

 

November 29, 2006

 

 

Morgans Hotel
Group

475 Tenth Avenue

New York, New York 10018

Attn:  David Smail

 

Re:          Financing
Waiver Date

 

Dear Mr. Smail:

 

Reference is hereby made to that certain Contribution
Agreement dated as of November 7, 2006 (as amended on November 20, 2006,
November 22, 2006 and November 28, 2006, the “Contribution Agreement”)
by and among DLJ MB IV HRH, LLC (“DLJMB”) and Morgans Hotel Group Co. (“Morgans”).  Capitalized terms used but not defined herein
have the meanings given to them in the Contribution Agreement.

This letter is to confirm our agreement that, for all
purposes under the Contribution Agreement, the Financing Waiver Date shall be
extended from 5:00 p.m. Eastern Standard Time on Wednesday, November 29, 2006
to 5:00 p.m. Eastern Standard Time on Thursday, November 30, 2006.

This letter supersedes any prior agreements relating
to the subject matter hereof, and shall be deemed to be effective as of 4:59 pm
Eastern Standard Time on Wednesday, November 29, 2006.

Please acknowledge that the foregoing conforms to
Morgans’ understanding with respect to the extension of the Financing Waiver
Date, by signing this letter below and returning it to DLJMB.

 

This letter may be executed in any number of
counterparts, each of which when executed and delivered shall be deemed to be
an original and all of which counterparts taken together shall constitute one
and the same instrument.

	
   

  	
  Very
  truly yours,

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  DLJ MB IV HRH, LLC

  
	
   

  	
   

  	
   

  	
   

  
	
   

  	
  By:

  	
   

  	
  /s/ Steven Rattner

  
	
   

  	
   

  	
   

  	
  Steven Rattner

  
	
   

  	
   

  	
   

  	
   

  

 

 

 

Agreed to and
Acknowledged as of

November 29, 2006:

 

Morgans Hotel
Group Co.

 

	
  By:

  	
  /s/ W. Edward Scheetz

  	
   

  

 

 

cc: Stephen G. Gellman, Esq.Exhibit
10.1

RELEASE OF CLAIMS

This Release of Claims (“Release”)
is made and entered into as of this 28th day of November, 2006 by Nicholas
Turner, an individual (hereinafter referred to as the “Releasing
Party”), and is hereby acknowledged by ARTISTdirect, Inc., a
Delaware corporation (the “Company”).

RECITALS

A.            Releasing Party
resigned as the Company’s Vice President, Business Development, effective as of
August 31, 2006 (the “Resignation Effective Date”).

B.            Releasing Party and
the Company have agreed to enter into an independent contractor agreement, in
the form attached hereto as Exhibit A (the “Contractor
Agreement”), so that Releasing Party may continue to act as a
consultant and continue to provide services to the Company, on the terms and
conditions set forth therein.

C.            To induce the
Company to enter into the Contractor Agreement, Releasing Party has agreed to
enter into this Release.

D.            As additional consideration
for this Release, the Company has agreed to pay Releasing Party $1,000 on the
date this Release is executed and delivered.

Now, therefore, in consideration of the foregoing, and
other good and valuable consideration, the receipt and sufficiency of which are
hereby acknowledged, Releasing Party does as follows:

1.             I shall fully release
and forever discharge the Company and its agents, employees, officers,
directors, trustees, representatives, owners, attorneys, subsidiaries, related
corporations, assigns, successors, and affiliated organizations (hereafter
referred to collectively as the “Released Parties”),
and each and all of them, from any and all liabilities, claims, causes of
action, charges, complaints, obligations, costs, losses, damages, injuries,
attorneys’ fees, and other legal responsibilities, of any form whatsoever,
whether known or unknown, unforeseen, unanticipated, unsuspected or latent,
which Releasing Party or Releasing Party’s heirs, administrators, executors,
successors in interest, and/or assigns have incurred or expect to incur, or now
own or hold, or have at any time heretofore owned or held, or may at any time
own, hold, or claim to hold by reason of any matter or thing arising from any
cause whatsoever prior to the date of the Releasing Party’s execution of this
Release.

2.             Without limiting
the generality of the foregoing, and by way of example only, I fully release
and discharge each and all of the Released Parties from any and all claims,
demands, rights, and causes of action that have been or could be alleged
against any of said Released Parties (a) in connection with my employment, prior
employment agreements, or the termination of such employment; (b) in connection
with any and all matters pertaining to my employment by any of the Released
Parties, including, but not limited to, any and all compensation, salaries, wages,
bonuses, commissions, overtime, monies, pay, allowances, benefits, sick pay,
severance pay, retention pay or benefits, paid leave benefits, penalties,

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interest, damages, and promises on any and all of the
above; and (c) under or in connection with the state and federal age
discrimination laws, as explained further in Section 3 below.

3.             Without limiting
the scope of this Release in any way, I also certify that this Release
constitutes a knowing and voluntary waiver of any and all rights or claims that
exist or that I have or may claim to have under the Federal Age Discrimination
in Employment Act (“ADEA”), as amended by the
Older Workers Benefit Protection Act of 1990 (“OWBPA”),
which is set forth at 29 U.S.C. § § 621, et seq.  This Release does not govern any rights or
claims that may arise under the ADEA after the date this Release is signed by
the Releasing Party.

4.             This Release
extends to any and all claims including, but not limited to, any alleged (a)
violation of the National Labor Relations Act, Title VII of the Civil Rights
Act, the Americans With Disabilities Act of 1990, the ADEA, as amended by the OWBPA,
the Fair Labor Standards Act, the Occupational Safety and Health Act, the
Consolidated Omnibus Budget Reconciliation Act of 1985; (b) discrimination on
the basis of national origin, sex, race, religion, age, disability, marital
status, or any other characteristic protected by law, breach of any express or
implied employment contract or agreement, wrongful discharge, breach of the
implied covenant of good faith and fair dealing, intentional or negligent
infliction of emotional distress, fraud, misrepresentation, defamation,
interference with prospective economic advantage, failure to pay wages due or
other monies owed; and (c) any other violation of any local, state or federal
law, regulation or ordinance and/or public policy, contract, or tort or common
law claim having any bearing whatsoever on the terms and conditions of
employment with any of the Released Parties, including, but not limited to, any
allegations for costs, fees, or other expenses, including attorneys’ fees,
incurred in any of these matters, which the Releasing Party ever had, now has,
or may have as of the date of this Release.

5.             Notwithstanding the
language contained in Sections 1, 2, 4, 10, and other Sections of this Release,
this Release does not apply to any claim which cannot be released as a matter
of law, including but not limited to claims under Division 3, Article 2 of the
California Labor Code, which includes indemnification and expense reimbursement
rights.

6.             This Release
constitutes written notice that the Releasing Party has been advised to consult
with an attorney prior to executing this Release and that the Releasing Party
has carefully considered other alternatives to executing this Release.

7.             Acknowledge that I
have been fully compensated for all labor and services performed for the
Released Parties and have been reimbursed for all business expenses incurred on
behalf of the Released Parties through the date I signed this Release, and that
the Released Parties do not owe me any expense reimbursement amounts or any
wages, including any vacation pay.

8.             Understand that the
aforementioned consideration is not to be construed as an admission on the part
of said Released Parties of any liability whatsoever and that the Released
Parties deny that they have engaged in any wrongdoing or have any liability
whatsoever.

9.             Understand that the
Released Parties dispute that any amounts whatsoever are owed to the Releasing
Party, but wish to avoid the disruption, inconvenience, and the

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administrative, legal, and other costs associated with
any litigation or other claims by the Releasing Party.  Accordingly, the RELEASING PARTY AGREES NOT
TO DISCLOSE, PUBLICIZE OR ALLOW OR CAUSE TO BE PUBLICIZED OR DISCLOSED ANY OF
THE TERMS AND CONDITIONS OF THIS RELEASE, THE SETTLEMENT, OR THAT THIS OR ANY
SETTLEMENT OR RELEASE HAS BEEN ENTERED INTO, EXCEPT FOR DISCLOSURES TO THE
RELEASING PARTY’S SPOUSE AND TAX CONSULTANT AND DISCLOSURES THAT COULD BE NECESSARY
TO CHALLENGE ARTISTdirect’s COMPLIANCE WITH THE WAIVER REQUIREMENTS OF THE ADEA
AS AMENDED BY THE OWBPA, UNLESS SUCH DISCLOSURE IS REQUIRED OR COMPELLED BY LAW.

10.           The Releasing Party
expressly releases any and all claims, damages, and causes of action
whatsoever, of whatever kind or nature, whether known or unknown, or suspected
or unsuspected, against the Released Parties. 
The Releasing Party understands that this Release SHALL APPLY TO ALL
UNKNOWN OR UNANTICIPATED CLAIMS, DAMAGES AND CAUSES OF ACTION, AS WELL AS THOSE
KNOWN AND ANTICIPATED, and does hereby waive any and all rights under Section
1542 of the California Civil Code, which reads as follows:

Section 1542. [Certain claims not affected by general
release.]  A general release does not
extend to claims which the creditor does not know or suspect to exist in his or
her favor at the time of executing the release, which if known to him or her must
have materially affected his or her settlement with the debtor.

11.           Understand and agree
that the Releasing Party will not, for any reason, disclose to others or use
for the benefit of anyone other than the Released Parties any trade secret,
confidential or proprietary information of the Released Parties, including, but
not limited to, information relating to the Released Parties’ customers,
employees, consultants, affiliates, products, know-how, techniques, computer
systems, programs, policies and procedures, research projects, future
developments, costs, profits, pricing, and marketing or customer business
information.  The Releasing Party further
understands and agrees that the use of any trade secret, confidential or
proprietary information belonging to the Released Parties shall be a material breach
of this Release.

12.           CIRCULAR 230 DISCLAIMER.  EACH PARTY TO THIS AGREEMENT (FOR PURPOSES OF
THIS SECTION, THE “ACKNOWLEDGING PARTY”; AND
EACH PARTY TO THIS AGREEMENT OTHER THAN THE ACKNOWLEDGING PARTY, AN “OTHER PARTY”) ACKNOWLEDGES AND
AGREES THAT (1) NO PROVISION OF THIS AGREEMENT, AND NO WRITTEN
COMMUNICATION OR DISCLOSURE BETWEEN OR AMONG THE PARTIES OR THEIR ATTORNEYS AND
OTHER ADVISERS, IS OR WAS INTENDED TO BE, NOR SHALL ANY SUCH COMMUNICATION OR
DISCLOSURE CONSTITUTE OR BE CONSTRUED OR BE RELIED UPON AS, TAX ADVICE WITHIN
THE MEANING OF UNITED STATES TREASURY DEPARTMENT CIRCULAR 230 (31 CFR PART 10,
AS AMENDED); (2) THE ACKNOWLEDGING PARTY (A) HAS RELIED EXCLUSIVELY
UPON HIS, HER OR ITS OWN, INDEPENDENT LEGAL AND TAX ADVISERS FOR ADVICE
(INCLUDING TAX ADVICE) IN CONNECTION WITH THIS AGREEMENT, (B) HAS NOT
ENTERED INTO THIS AGREEMENT BASED UPON THE

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RECOMMENDATION OF ANY OTHER PARTY OR ANY ATTORNEY OR
ADVISOR TO ANY OTHER PARTY, AND (C) IS NOT ENTITLED TO RELY UPON ANY
COMMUNICATION OR DISCLOSURE BY ANY ATTORNEY OR ADVISER TO ANY OTHER PARTY TO
AVOID ANY TAX PENALTY THAT MAY BE IMPOSED ON THE ACKNOWLEDGING PARTY; AND
(3) NO ATTORNEY OR ADVISER TO ANY OTHER PARTY HAS IMPOSED ANY LIMITATION
THAT PROTECTS THE CONFIDENTIALITY OF ANY SUCH ATTORNEY’S OR ADVISER’S TAX
STRATEGIES (REGARDLESS OF WHETHER SUCH LIMITATION IS LEGALLY BINDING) UPON
DISCLOSURE BY THE ACKNOWLEDGING PARTY OF THE TAX TREATMENT OR TAX STRUCTURE OF
ANY TRANSACTION, INCLUDING ANY TRANSACTION CONTEMPLATED BY THIS AGREEMENT.

13.           Acknowledge that I
am aware of my right to revoke this Release at any time within the seven-day
period following the date I sign it and that the Release shall not become
effective or enforceable until the seven-day revocation period expires.  I understand that I will relinquish any right
I have to the consideration specified in this Release if I exercise my right to
revoke it.

14.           Acknowledge that I
am relying solely upon the contents of this Release and am not relying on any
other representations whatsoever of the Released Parties as an inducement to enter
into this agreement and Release.

15.           The Releasing Party
further acknowledges that the Releasing Party (a) has read this Release, (b)
has been provided a full and ample opportunity to study it, including a period
of at least twenty-one (21) days within which to consider it, (c) has been
advised in writing to consult with an attorney prior to signing it, and (d) is
signing it voluntarily with full knowledge that it is intended, to the maximum
extent permitted by law, as a complete release and waiver of any and all
claims.

	
  Dated: November 28, 2006

  	
   

  	
  /s/ Nicholas Turner

  	
   

  
	
   

  	
   

  	
  Nicholas Turner

  

Acknowledged by:

	
  Dated: November 28, 2006

  	
   

  	
  /s/ Robert N. Weingarten

  	
   

  
	
   

  	
   

  	
  (for ARTISTdirect, Inc.)

  

 

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EXHIBIT A

 5

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