Subj: RED STAR RECORDS / HEINEKEN USA, INC.
Date: 02/28/02 12:17PM

Mr. Anderson:

My proposal of January 2nd stated that HEINEKEN'S MUSIC INITIATIVE label should call itself HEINEKEN'S RED STAR SOUNDS in order to distinguish it from my RED STAR RECORDS.

I've already received numerous inquiries about my involvement in the RED STAR SOUNDS: SOUL SEARCHING CD and would anticipate many more from my distributors as further releases hit the marketplace. Confusion will be a factor unless it is clear that HEINEKEN'S RED STAR SOUNDS label is a non-profit venture to benefit urban musicians and education and is not to be confused with my RED STAR RECORDS label, as they are separate entities.

I've stated my position and intentions. The solutions are as follows:
1) HEINEKEN'S RED STAR SOUNDS as HEINEKEN'S label name
2) A financial settlement of this matter
3) A legal confrontation.

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Subj: RED STAR RECORDS / HEINEKEN USA, INC.
Date: Friday, 1 March, 2002 9:53:03 AM

Mr. Thau:

My client has instructed that it cannot and will not use HEINEKEN'S RED STAR SOUNDS and will continue to use RED STAR SOUNDS.

There will be no further use made of RED STAR RECORDS on future recordings and all other promotional uses such as on the web site at concerts etc. will cease effective immediately.

As to your ultimatum, you can be assured there will be no financial payment to you. Whether you wish to institute legal action is entirely up to you. Be assured however, any such action will be vigorously defended in view of your laches and willful contribution/causation [your press releases] of any anecdotal confusion alluded to in your email of February 28, 2002.

We now consider these negotiations concluded.