Martha Stewart (MSO), JCPenney (JCP) Amend Commercial Agreement; JCP to Pay At Least $282.9M During 10-Year Term

July 12, 2012 8:54 AM EDT Send to a Friend
According to a Form 8-K, Martha Stewart Living Omnimedia (NYSE: MSO) and J. C. Penney (NYSE: JCP) amended a commercial agreement to:
  • add certain additional categories of Products to the Product offerings that will be available for sale in MSLO Stores,
  • add certain additional categories of Products to the definition of Non-Exclusive Product Categories, and
  • modify the Products that will be sold in one of the Product categories contemplated in the original Commercial Agreement.
As a result of this amendment the minimum guaranteed payments for sales commissions, when combined with the design fee and the annual marketing spend, will require J. C. Penney to pay MSLO at least $282.9 million, in the aggregate, during the 10-year term of the Commercial Agreement, which represents a $110.5 million increase in aggregate minimum guaranteed payments for sales commissions payable by J. C. Penney to the Company before giving effect to such amendment.


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