On April 30, 2012, TV Goods Inc. (“TVG”), wholly-owned subsidiary of As Seen On TV, Inc. (the “Company”), announced that it entered into a Distribution and Marketing Agreement dated March 15, 2012 (“Distribution and Marketing Agreement”) with SMS Audio (“SMS”) relating to the promotion and sale of SMS products (the “Products”) via major live television shopping networks and their related websites and AsSeenOnTV.com in the U.S. The Initial Term shall be twelve (12) months. The Distribution and Marketing Agreement includes, but is not limited to the product lines of SYNC by 50 Over-Ear Headphones, STREET by 50 Over-Ear Headphones and STREET by 50 In-Ear Headphones. SMS and the Company agree that Curtis Jackson III (aka 50 Cent)(the “Artist”), may appear for certain television airings for the Products as agreed upon by the parties and the Artist. All commitments are subject to the Artist’s schedule. The Distribution and Marketing Agreement may be terminated by SMS without cause upon 60 days notice.
