Item 1.01 Entry Into a Material Definitive Agreement
Effective July 26, 2010, MusclePharm Corporation (the "Company") entered
into a Joint Development, Manufacturing, Distribution and Marketing Agreement
(the "Agreement") with TapouT, LLC pursuant to which the Company intends to
launch a MusclePharm apparel line that includes t-shirts, sweat suits, shorts
and other active wear items. Under the Agreement, the Company and TapouT
will jointly develop MusclePharm branded mixed martial arts apparel and
accessories. TapouT currently has distribution in over 20,000 retail stores
worldwide, as well as online, including a full line of fighter gear, men's,
women's, youth and accessories.
The Agreement provides that the Company engages TapouT to be the
Company's exclusive provider of distribution services for a three year term
on a world-wide basis. These services include coordination of manufacturing
and shipment of the products, coordination of sales of and fulfillment of
orders for the products and the related billing and collections from
customers, and consultation and recommendations with respect to product
creation, branding, advertising, marketing and promotion. In addition the
Company grants to TapouT the sole and exclusive right and license to
manufacture anywhere in the world, and distribute and sell the products
through the channels of distribution and retail stores mutually agreed to by
the parties.
In consideration for TapouT performing the distribution services
described above, TapouT will receive or retain fifty percent of the net
profits from the sales of the products.
Item 9.01 Financial Statements and Exhibits
(d) Exhibits
Exhibit 10.2 Joint Development, Manufacturing, Distribution and
Marketing Agreement between MusclePharm Corporation
and TapouT, LLC with an effective date of July 26, 2010
SIGNATURES
Pursuant to the requirements of the Securities and Exchange Act of 1934,
the registrant has duly caused this report to be signed on its behalf by the
undersigned hereunto duly authorized.
MusclePharm Corporation
By: /s/ Brad Pyatt
Name: Brad Pyatt
Title: Chief Executive Officer
Dated: September 22, 2010
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