The deal just got sweeter! J.C. Penney has agreed to pay, in aggregate over the 10 years of the agreement, $110 million MORE to MSLO in the form of sales commissions, design fees, and annual marketing spend. Sounds like the store is feeling optimistic about the success of the partnership! Other modifications to the agreement were made, as well, which you can read in the article. You can also see the scarily-official looking legal form describing the amendments to the agreement by clicking here.
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.