Pursuant to the Intangible Asset License Agreement, the Company will pay an annual fee of $2 million to the Licensor (Martha Stewart) over the 5-year term for the perpetual, exclusive right to use Ms. Stewart’s lifestyle intangible asset in connection with Company products and services and during the term of the agreement to access various real properties owned by Ms. Stewart.
The fee is more than double what MSLO was paying Martha in previous years for access to her properties for photo shoots and such, suggesting film crews may be making more frequent visits to her properties to film new segments for the show, or for other projects. Martha will also be reimbursed up to $100,000 a year for "approved expenses" associated with the process. Martha, of course, must hold up her end of the bargain: keeping the places up to snuff. All landscaping, maintenance and decorating expenses are Martha's responsibility. (Shouldn't be a problem...)
In other Martha news:
Martha Stewart Living Omnimedia Inc. on Monday named Vanessa Holden vice president and editor-in-chief of Martha Stewart Weddings. Holden, a magazine consultant, replaces Hilary Sterne who left the company earlier this summer. She will report to Eric Pike, executive vice president and creative director.