Contract analysis

1. Settlement Summary As noted above, the Settlement Agreement and Mutual Release was fully executed on August 14, 2023, by all parties. The Stipulation of Dismissal with Prejudice was filed with the Court simultaneously, with the Honorable R. Gary Klausner presiding. Consistent with the terms of the Settlement Agreement, and in accordance with the framework set forth in Kokkonen v. Ridgeline Mutual Insurance, 511 U.

2. Prospective License Monitoring Although the litigation has concluded, the Prospective License component of the Settlement Agreement creates an ongoing commercial relationship between your entities and Crescendo that will require diligent monitoring over the three-year license term (August 14, 2023 through August 14, 2026). We strongly recommend that you instruct Thornfield Music Administration, Inc. — through its

3. Payment Monitoring Calderwood & Harkness LLP will continue to monitor receipt of both settlement installment payments on your behalf. The payment schedule is as follows: • First Installment: $1,100,000.00, due by September 13, 2023 (thirty (30) calendar days following execution of the Settlement Agreement). • Second Installment: $520,000.00, due by November 12, 2023 (ninety (90) calendar days following execution o

4. Important Deadlines We have prepared the following summary of upcoming deadlines that you should note and calendar. We recommend that you share this schedule with Mr. Sato at Thornfield Music Administration, Inc. as well. We wish to emphasize the importance of the enforcement mechanism built into the Settlement Agreement. If Crescendo fails to make any payment — whether a settlement installment or a quarterly roya

5. Fee Summary We wish to provide you with a summary of the fee arrangements for this engagement. As you will recall, our fee arrangement was structured as a hybrid: reduced hourly rates combined with a contingency component tied to the gross settlement recovery. The key parameters of this arrangement, as set forth in our engagement letter dated February 20, 2023, were as follows: • Partner hourly rate: $725.00 per h

6. File Retention In accordance with Calderwood & Harkness LLP's document retention policy, the Firm will retain the physical and electronic files for this matter for a period of seven (7) years from the date of closing — that is, through approximately August 2030. This retention period encompasses all pleadings, correspondence, discovery materials, expert reports, settlement documents, and other case-related files.

7. Matter Closing With the execution of the Settlement Agreement and Mutual Release and the filing of the Stipulation of Dismissal with Prejudice, the matter captioned Fonseca et al. v. Crescendo Digital Media, Inc., Case No. 2:23-cv-02841-RGK-PLA, is now formally closed in our records. The matter will be carried under Matter No. 1035-00003, Billing Matter Code 04417.001, for all archival and accounting purposes. The