MusclePharm: Termination of a material definitive agreement with Tiger Woods:
On May 19, 2016, MusclePharm Corporation (the “Company”) entered into a Settlement Agreement with ETW Corp. (the “Settlement Agreement”). The Settlement Agreement eliminates all costs and terminates all future commitments between Tiger Woods and the Company under the Endorsement Agreement between the Company and ETW, dated July 1, 2014 (as amended, the “Endorsement Agreement”).
The material terms of the Endorsement Agreement were previously described in a Current Report on Form 8-K filed by the Company with the U.S. Securities and Exchange Commission on June 18, 2014, which description is incorporated herein by reference.
Pursuant to the Settlement Agreement, the Company agreed to pay $2.5 million to terminate the parties’ obligations under Endorsement Agreement, effective as of May 19, 2016, and to resolve all disputes between them. As of March 31, 2016, the Company had accrued $7.0 million in relation to the Endorsement Agreement.