Confidential Information

Responding Party: Smoothin’ Records

Smoothin’ Records believed that the course of action that they opted for was completely justified and
valid. They pride themselves on setting a high standard for the work that they do and the clients they
represent. However, they have been made to realise that no amount of clever contract drafting can
take away the liability of the unauthorized sale that they initiated and completed.

Smoothin’ Records have estimated that the disaster throwback album of Dil- Jeet resulted in a net loss
for Smoothin’ Records in terms of the expenditure that they incurred on marketing and advertising
the album. The financial hit was not massive for the Smoothin’ Records organization as they enjoy
immense stability from their all-round business and solid clientele. However, they cannot overlook
the fact that the failed album represented a material breach of the contractual terms by Dil- Jeet, and
Smoothin’ Records would like to be adequately compensated for the same.

Smoothin’ Records believe that the deal that they made with the HMS for the rights to the track went
some way towards mitigating the losses they suffered. The deal with the HMS is actually an irrevocable
license deal that runs until the 25th of May, until the end of the General Elections. The track was edited
and proofed by Smoothin’ Records team it was sent to the HMS and the license was for an amount
of Rs. 5 Lakhs.

Prior to the mediation session, Smoothin’ Records have been approached by POCO Phones who
were looking for a brand new artist to be the face of their brand new Launch campaign. After sitting
with Smoothin, Records, Poco Phones identified Dil- Jeet as the indie artist with the fastest growing
fan-base in India. Poco Phones have intimated that they would like Smoothin’ Records to close the
deal for them and sign Dil-Jeet on for Poco Phones.

Smoothin, Records see this as a point of leverage on their mediation with Dil- Jeet as they would like
Dil- Jeet to commit to producing more content on an annual basis, possibly two albums and also a
month-long national performance tour every year. They anticipate some push-back on these
suggestions but believe that a big endorsement deal with Poco Phones should be incentive enough to
work harder in the current market.

Smoothin’ Records will be represented by Ms. Bhavana Manoj who is the CEO of Director of India
Operations of Smoothin’ Records, along with the company’s in-house legal counsel.