STATE OF MISSOURI DEPARTMENT OF PUBLIC SAFETY DIVISION OF ALCOHOL AND TOBACCO CONTROL Telephone 573-751-2333 FAX 573-526-4540 December 30, 2004
|
XXX XXXXXX Governor
XXXXXXX X. XXXXXXX Director |
 |
Exhibit
10.1
XXXXX
X. XXXXXX
State
Supervisor |
STATE OF
MISSOURI
DEPARTMENT
OF PUBLIC SAFETY
DIVISION
OF ALCOHOL AND TOBACCO CONTROL
P.O. Box
837 Jefferson City 65102
000 Xxxx
Xxxx Xxxxxx #000 Xxxxxxxxx Xxxx, Xxxxxxxx 00000
Telephone
000-000-0000
FAX
000-000-0000
December
30, 2004
Xx.
Xxxxxxx X. Xxxxx
Xxxxxx,
Xxxxxxxxxx & England, PC
000 Xxxx
Xxxxxxx Xxxxxx
Jefferson
City, Missouri 65101
Dear Xx.
Xxxxx:
This
letter is intended to be a Final Agreement for the Limelight Media Group
(hereinafter “LMG”) Project. It hopefully includes all the revisions agreed upon
in past discussions and communications. This new advertising medium may very
well change the traditional concept of product displays.
| 1. |
It
is critical to the Division to maintain a level playing field with the
alcohol industry. Therefore, there can be no exclusivity agreements among
suppliers including such things as pricing arrangements that act as a
restriction. In fact, no alcohol manufacture may have more than one-third
(1/3) of the alcoholic beverage messages. Paragraph number 4 of your May
12, 2004 letter is key to maintaining a level playing
field. |
| 2. |
The
Division expects, as articulated by LMG, that the alcoholic beverage ads
will constitute no more than 20% of the
total. |
| 3. |
The
impact of this form of advertising on the alcohol beverage industry and
the public is important to the Division. The Division and your client will
meet during the first week of July, 2005, to evaluate the pilot program.
At that time, the Division will seek
to: |
| a) |
Compare
licensee alcohol receipts for the previous period of six months compared
to the preceeding six months; |
| b) |
Review
the revenue generated by each brand; |
| c) |
Examine
the suppliers used and amount paid for
advertising; |
| d) |
Examine
the amount retailers paid to LMG and any amounts paid to retailers
(licensees) associated with LMG services;
and |
| e) |
Other
conditions previously outlined during communications related to this pilot
program. |
Xx.
Xxxxxxx X. Xxxxx
Dec 30,
2004
Page
2
| 4. |
It
is important to stress that this pilot program can be terminated by the
Division at any time, even prior to the July, 2005 meeting, if the
Division believes it is in the best interest of the public. If any issues
arise, the Division and LMG will work together in an attempt to remedy the
situation. In the event the Division deems it necessary for the project to
be terminated, the Division agrees to give thirty (30) days notice of
discontinuance. |
| 5. |
The
Division will continue its review of concerns presented under Section
311.070 and value restrictions therein. Your May 17, 2004 letter clearly
expressed your interpretation of the “safe harbors” outlined in Section
311.070.4. To avoid a violation the pilot program must be considered
outside the scope of Section 311.070. Therefore, the pilot program amount
restrictions presented under Section 311.070 are waived. For the pilot
program the Division will allow a $250 per brand per store per month
maximum. |
| ________/s/ Xxxxx X. Lott_______ | ______/s/ Xxxxx Xxxxxx___________ | |
| Xxxxx Xxxx, President, LMG | Xxxxx Xxxxxx, State Supervisor | |
| Missouri Division of Alcohol and | ||
| Tobacco Control | ||
| ____1-3-05______________________ | _______1-4-05____________________ | |
| Date | Date |
