Heidi Klum Martin Kristen

Heidi Klum and bodyguard/beau Martin Kristen stepped out with her four children in New York City on Tuesday afternoon, and despite recent controversy over a cheeky Instagram snapshot, the America's Got Talent judge was all smiles.

Heidi posted a NSFW snapshot of her butt on Instagram the other day, and apparently AOL isn't pleased about it, but not for the reasons you'd think. A source tells New York Daily News that AOL is annoyed that they paid Heidi over $1 million (plus 50% of ad revenue) to get her site, Heidiklum.aol.com, yet she's sharing all the juicy content on her social media accounts.

One company insider tells [email protected] that AOL had a talk with the German supermodel after she posted the pic, and this isn't the first time this has happened. “Her racy Instagram post would have gotten them 10 million hits, and they’re upset that she’s giving it away for free,” a source tells the site. “But Heidi told them that her contract with AOL isn’t exclusive ... The biggest problem now is that Klum is considered part of the ‘AOL family.’ All its other sites have all been instructed to tread carefully when it comes to covering her, even when she’s with her boyfriend/bodyguard, Martin Kristen."

Additionally, NYDN reports that company execs also annoyed when Klum failed to show at an AOL sales conference in Washington, D.C., last year. “They asked her and she had prior duties,” the source says. “It was a giant weekend. It’s to show off your talent to the advertisers. Jerry Springer turned up, though. They paid a fortune to get exclusive access to Heidi and she gives the best content to competitors."

However, a rep for AOL says, “Heidi’s selfie shows why she’s a great partner for AOL. She has style, knows great content when she sees it and works her butt off.”