Exhibit 10.3
Cohete Rum Production Agreement
ILSA Panama
Interamericana de Licores, S.A.
May 12, 2003
Mr. Xxxxxxx Xxxxx
Drinks Americas, Inc.
Dear Xx. Xxxxx:
It was a pleasure to meet with you on April 24th regarding production ad
bottling by us of our product "Cohete Rojo" Rum. I am sure that by putting
together our production experience with your considerable knowledge of liquor
marketing we will create a very successful brand.
Based on that meeting, as well as our first conversation in Costa Rica in
January, and on the many meetings I have had after that with your representative
Xxxxxxx Xxxxxxxxxx, this is our proposal to you to produce and bottle "Cohete
Rojo".
o We will produce and bottle "Cohete Rojo" Rum for you in accordance
with the formula that will be agreed with you.
o It is your responsibility to verify the quality of the product before
it leaves the plant. We ask that you authorize a Quality Control
person to sign quality acceptances in your behalf. Quality matters
include the rum itself, alcoholic content, fill capacities, labeling,
and any other matters that are important to you.
o You will supply all materials and packaging required, including bulk
rum, flavoring materials, bottles, caps, labels, shipping cartons,
etc. If you wish us to purchase those materials for you, you will
advance the money for said purchases.
o Our charge for producing cases of either twelve 750 ml bottles or
twenty four 375 ml bottles will be $7.00 per case. This price is in
consideration of your estimated purchase of 40,000 cases per year.
Payment term for our service is 30 days.
We look forward to a mutually beneficial business relationship.
Sincerely
/s/ Xxxxxxxxx X Xxxx
President
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