This Digital Music Distribution Agreement ("Agreement") is a legally binding contract between Magical Records (hereinafter referred to as the "Distributor") and the registered user (hereinafter referred to as the "Client", "Artist", or "Label"). By creating an account on the Magical Records platform, the Client agrees to be bound by the conditions set forth herein.

1. Services

The Distributor agrees to distribute the Client’s music to digital platforms (such as streaming services, online stores, etc.) as per the agreed terms. The distribution process will commence after the successful uploading and quality control approval of the content.

2. Non-Exclusive Distribution Rights & Content Lock

The Client grants the Distributor non-exclusive rights for the distribution of their music for a period of one (1) year from the date of upload.

Important Content Lock Condition: While this agreement is non-exclusive (meaning the Client is entirely free to release new or other songs through any other distributor concurrently), any specific audio track or song that has been successfully distributed through Magical Records cannot be taken down, removed, or transferred to another distributor until the one (1) year period expires for that specific release. This ensures a stable distribution network and compliance with DSP (Digital Service Provider) guidelines.

3. Payment Terms

The Client agrees to pay the Distributor as per the agreed distribution fee or commission on revenue generated through digital platforms. The Client shall provide and maintain their accurate payment information (Bank Details or UPI) securely within their Magical Records Artist Dashboard. All payouts will be processed to the active account listed in the Client's Dashboard.

4. Royalty Payments

The Distributor shall collect and process royalties from digital platforms based on streaming reports every three (3) months. Payments will be made to the Client within one month following the end of each royalty period, specifically on the following schedule:

• Q1 (January, February, March): Payments will be made on May 15th.
• Q2 (April, May, June): Payments will be made on August 15th.
• Q3 (July, August, September): Payments will be made on November 15th.
• Q4 (October, November, December): Payments will be made on February 15th.

If the Client requests a payout between the 1st and 14th of the payment month via the Dashboard, the Distributor will process and make the payment on the 15th of that month.

5. Revenue Sharing

The revenue generated from the distribution of the Client's music across digital platforms will be shared based on the Client's active subscription plan at the time of distribution:

• Free Starter Plan: The Client shall be entitled to 50% of the total revenue generated.
• Pro Artist & Label Plan: The Client shall be entitled to 80% of the total revenue generated.

The revenue share shall be calculated on the net income received by the Distributor after any deductions imposed by the digital platforms (such as platform fees or taxes).

6. Term, Auto-Renewal & Termination

This Agreement shall initially be in effect for one (1) year from the date of registration.

Auto-Renewal & Lifetime Distribution: After the initial one (1) year period expires, this agreement will automatically renew for free. The Distributor will NOT take down or remove any previously distributed songs unless explicitly requested by the Client (Owner). The Client will continue to earn their respective revenue share indefinitely for as long as the music remains live on the digital platforms.

Either party may terminate this Agreement by providing a written notice. Content takedowns after the initial one-year content lock period require a valid legal or contractual reason (such as licensing expiration, copyright disputes, or artist agreement changes), subject to review by the Distributor's Noida operations desk.

7. Obligations of the Client

The Client agrees to provide all necessary metadata, artwork, and licensing rights for the music to be distributed. The Client ensures that the music does not infringe on any third-party intellectual property rights.

8. Obligations of the Distributor

The Distributor agrees to distribute the Client’s music promptly and provide regular reports on revenue and distribution activities inside the dashboard.

9. Warranties & Indemnities

The Client warrants that they own or control the rights to the music being distributed and that the music is free from any legal encumbrances. Both parties agree to indemnify and hold harmless the other party from any third-party claims arising from the breach of this agreement.

10. Dispute Resolution

Any dispute arising out of this Agreement shall be resolved amicably. Failing such resolution, disputes shall be referred to arbitration under the Arbitration and Conciliation Act, 1996, and the venue of arbitration shall be in Gautam Buddha Nagar / Noida, Uttar Pradesh.

11. Governing Law

This Agreement shall be governed by and construed in accordance with the laws of India.