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By the time 1991 rolled around, Reznor was in a miserable state. The label was pressuring him to record more material but was trying to tell him which producers to use and how the material should sound. Reznor wanted out of his contract and secretly recorded an EP in various locations around the world. The EP, titled ''[[Broken]],'' was released in 1992 and explained the situation to its buyers. The EP was released by [[Nothing Records]], which Reznor and Malm established to help him get out of his contract. Eventually TVT settled with Reznor, allowing him the creative freedom he wanted, but they would distribute future releases.
It was during this time that Reznor was in the process of recording the second NIN album, ''[[The Downward Spiral (halo)|The Downward Spiral]].'' It was recorded in a Beverly Hills mansion-turned-studio that would later be revealed to be the house where actress Sharon Tate and others were murdered by followers of cult leader Charles Manson. Reznor had also befriended a Florida-based shock-rock band, [[Marilyn Manson (band)|Marilyn Manson]], who would sign to Nothing Records.
===Spiraling Down===