Commodity Purchase Agreement between Guittard Chocolate Company and Rocky Mountain Chocolate Factory (2005)
Guittard Chocolate Company agrees to sell, and Rocky Mountain Chocolate Factory agrees to purchase, certain chocolate products under specified terms. The contract sets prices, delivery deadlines (by December 31, 2005, with a possible 90-day extension for an extra fee), and payment terms (2% discount if paid within 10 days, otherwise net 30 days). The buyer assumes responsibility for any applicable taxes. The seller may delay shipments if payments are late and is excused from performance due to uncontrollable events like natural disasters or strikes. Prices are protected against increases but not decreases.
Exhibit 10.16
GUITTARD® | FIRM | |
| CONTRACT | ||
| F 113 through F 117 | ||
Since 1868 | February 3, 2005 |
GUITTARD CHOCOLATE CO. OF BURUNGAME, CALIFORNIA, AGREES TO SELL, AND
ROCKY MOUNTAIN CHOCOLATE FACTORY | ||
265 TURNER DRIVE | ACCT: 475155 | |
DURANGO, CO 81301 | PHONE: 970 ###-###-#### | |
ATTN: MR. BRYAN MERRYMAN |
AGREES TO PURCHASE THE FOLLOWING SUBJECT TO THE CONDITIONS INDICATED BELOW:
| PRICE PER | ||||||||
| QTY. | ITEM | PACK | POUND | F.O.B. LOCATION | ||||
* | * | * | * | * | ||||
F.O.B. SEE ABOVE
WITHDRAWALS TO START NOW AND TO BE COMPLETED BY DEC. 31, 2005
At seller’s option withdrawal date may be extended ninety days at an additional charge of one hundred and thirty cents per hundred weight.
Our terms are 2% ten days, thirty days net, seller’s credit department having the right to determine the amount of open credit during the thirty day period. If buyer fails to fulfill the terms of payment, the seller has the right to defer shipments until such payments are made.
Should any form of tax be levied by the United States Government, or any political subdivisions, on these items, or on the raw materials contained therein, it shall be assumed and paid for by the buyer.
Performance of this contract by the seller shall be excused in the event of floods, fires, strike, plant disablement, war, raw material controls, acts of God, or other conditions beyond its control, no matter where such event occurs.
Buyer will be protected against advance in price, but it is understood and agreed that the above prices are NOT GUARANTEED AGAINST decline.
ACCEPTED BY: | ACCEPTED BY: | |
ROCKY MTN. CHOCOLATE FACTORY | GUITTARD CHOCOLATE COMPANY | |
CUSTOMER NAME | ||
/s/ Bryan J. Merryman | /s/ Mark Spini | |
BUYER | ||
February 23, 2005 | February 3, 2005 | |
Date | Date |
CUSTOMER COPY
Legend:
GUITTARD CHOCOLATE COMPANY
MANUFACTURERS OF CHOCOLATE AND COCOA PRODUCTS • 10 GUITTARD ROAD, BURLINGAME, CA 94010-2203
P.O. BOX 4308 • BURLINGAME, CA 94011-4308
(650) ###-###-#### • (800) ###-###-#### • FAX (650) ###-###-#### • www.guittard.com
