The ipo looks dead in the water, IMO, due to all the cash and value being skimmed by the parent:
MASTER INTERCOMPANY AGREEMENT
We will enter into a master intercompany agreement that sets default terms
for various of the intercompany agreements and provides for the following:
- Trademark and Content License Royalties. We will pay Playboy Enterprises
an annual license fee equal to ten percent of annual net revenues for the
first $50,000,000 of net revenues and seven percent of net revenues for
annual net revenues in excess of $50,000,000 up to $100,000,000. We will
not pay royalties for any net revenues in excess of $100,000,000.
Regardless of actual revenues, the minimum license fee that we pay to
Playboy Enterprises shall be $2,800,000 for 2000, $5,200,000 for 2001, and
$7,500,000 thereafter. In addition, we will pay Playboy Enterprises a 50%
share of net revenues derived through pay-per-view programming of Playboy
Enterprises' video content. |
