EXHIBIT 10.9
February 4, 1998
Xxxxxxx Xxxxxxxx
Trader Xxx's Company
000 Xxxxxxx Xxxxxx
Xxxxx Xxxxxxxx, XX 00000
Dear Xxxxxxx:
We would like to formalize our verbal agreement regarding providing Trader Xxx's
40-30-30 Bars.
The following reflects our agreement:
1. Balance Bar Company has arranged for production of Trader Xxx's 40-30-
30 Bars using the same supplier(s) that produce our bars.
2. [ * ]
3. Trader Xxx's agrees to buy 40-30-30 formulated bars exclusively from
Balance Bar Company for a 2 year period starting January 1, 1998 to
December 31, 1999. After 2 years (12/31/99), Trader Xxx's could buy
40-30-30 bars from any supplier, with the exception of then current
Balance Bar Company Suppliers. Of course we would like to continue to
provide the bars. At no point would Trader Xxx's have any ownership
rights to the product formula.
4. [ * ] Order lead time is 15 days. Orders will continue to be
truckloads of 24 pallets.
We realize that you could purchase 40-30-30 private label bars from another
supplier, at a lower price. The advantages in buying from Balance Bar Company
are:
1. QUALITY. We have spent over five years, at considerable expense,
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perfecting the current Balance Bar formulas. The primary reason
people buy our bars is taste and quality. We have talked to numerous
potential co-packers and have found that none could meet our exacting
standards, other than our two current suppliers.
2. CONTINUITY OF SUPPLY. Since we have two packers, your volume needs
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will always be met on a timely basis.
3. PRICE GUARANTEE. We will guarantee our price for the 1st 24 months.
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*Confidential portions omitted and filed separately with the Commission.
Trader Xxx's supplies artwork for the bars and Balance Bar Company is
responsible for printing costs and ownership of the wrappers.
Please sign both copies of this agreement and return one to me at Balance Bar
Company. Thank you for your business.
Sincerely,
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Xxx Xxxxx Xxxxxxx Xxxxxxxx
President & CEO Trader Xxx's Company
JW/df
*Confidential portions omitted and filed separately with the Commission.
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