Document:

AGREEMENT

DATED AS OF:      June 1, 2006

The PARTIES to this Agreement are as follows:

1.    D.T. Drinks, LLC., a New York Limited Liability Company, ("Client") 372
      Danbury Rd., Suite 163, Wilton CT 06897

2.    PRODUCTION FINANCE INTERNATIONAL, LLC. a Washington Limited Liability
      Company ("PFI")
      801 West Riverside, Suite 444
      Spokane, Washington 99201

The TERMS of this Agreement are as follows:

                                      RECITALS

I. CLIENT has entered into or anticipates entering into contracts (hereinafter
"Contracts") with various suppliers (hereinafter "Suppliers") and customers
(hereinafter "Customers") under which CLIENT has agreed, among other things, to
purchase from Suppliers and furnish to Customers certain products.

II. CLIENT is in the business of importing and / or exporting, and distributing
Beverages and has requested PFI, and PFI has agreed, subject to the terms and
conditions of this Agreement, to provide certain purchasing arrangements with
respect to Beverages specifically identified per Addenda to this Agreement
(hereinafter "Products") to be provided under the Contracts.

NOW THEREFORE, the parties agree as follows:

      1. No commitment: Notwithstanding any other provisions of this Agreement,
this Agreement does not commit CLIENT or PFI to participate in any transactions
other than those specifically agreed upon from time to time as evidenced by
signed Addenda to this Agreement.

      2. Amount: PFI's aggregate participation with CLIENT in transactions shall
not exceed $1,500,000 at any one time.

      3. Affirmations: As a pre-condition to PFI assisting with transactions
under this Agreement, CLIENT shall have credit facilities available, acceptable
to PFI, to support CLIENT's working capital requirements. CLIENT hereby
represents and affirms that CLIENT is financially solvent, and in good standing
with all creditors and is in compliance with all covenants of lending
agreements. CLIENT shall immediately inform PFI of any financial insolvency or
out-of-compliance situation with creditors. CLIENT grants to PFI the right to
confirm all CLIENT financing arrangements directly with the financing entities
involved.

      4. Presale of Products: CLIENT shall have pre-sold the Products to
Customers in amounts, and on credit and delivery terms, acceptable to PFI.
CLIENT shall provide to PFI for review and approval, as applicable, copies of
letters of credit, purchase orders, and sales contracts from Customers, as well
as outstanding order reports summarizing such orders and contracts with respect
to Products for which PFI anticipates providing purchase order assistance
(hereinafter "Customer Purchase Orders"). PFI shall have the right to confirm
all sales arrangements directly with Customers. Although it is not expected that
such shall be necessary, CLIENT shall furnish to PFI, upon PFI's request, credit
information sufficient in PFI's opinion, for PFI to credit approve CLIENT's
Customers. Should such not be available to PFI's satisfaction, CLIENT authorizes
PFI to select and use a credit research and consulting company ("Credit
Consultant") to pre-qualify CLIENT's Customers. All expenses associated with
such Credit Consultant shall become a part of PFI's Costs as defined herein.
CLIENT hereby agrees to hold harmless and releases PFI from any and all
liability for Customer credit losses regardless of any use or non-use of such
Credit Consultant.

<PAGE>

      5. Products: CLIENT shall provide to PFI copies of purchase orders to, and
order confirmations from, Suppliers of Products associated with this Agreement.
CLIENT warrants and represents to PFI that Products delivered from Suppliers
shall conform in every respect, including but not limited to quantity, quality,
style, and packaging, with existing Customer Purchase Orders, and additionally,
any further specifications as have been or may be required by CLIENT or CLIENT's
Customers. CLIENT grants to PFI the right to confirm all purchase arrangements
directly with Suppliers.

      6. Bill of Sale: Upon review and acceptance of the above, and other
requirements per Addendum by PFI, CLIENT shall present to PFI a bill of sale
(hereinafter "Bill of Sale") which sells, assigns, and transfers to PFI the
Products and all of CLIENT's purchase and sales documentation related thereto,
together with a non-exclusive right to, license for, and right to sublicense,
any trademarks, tradenames, and service marks used or useful, directly or
indirectly, with respect to, or inherent in, such Products covered by Addenda to
this Agreement (collectively "PFI Assets"). PFI Assets shall thereafter be
exclusively owned by PFI, and CLIENT hereby acknowledges PFI's exclusive
ownership regardless of whose name appears on documents. Only upon PFI's
acceptance of the Bill of Sale, shall PFI agree to proceed with a PFI
transaction; For an import transaction, PFI shall arrange to have import letters
of credit issued (or other payment arrangements) in favor of Suppliers showing
PFI as Applicant; For an export transaction, PFI shall arrange to make payment
to the supplier of Products. CLIENT hereby grants to PFI the full right and
authority to take any action, which in PFI's sole discretion, PFI believes to be
reasonably necessary to protect PFI's interests. This shall include full right
and authority to resolve any questions of non-compliance of documents and to
give any instructions as to acceptance or rejection of any documents or
Products, all without any notice to, or any consent from CLIENT.

      7. Currency: In the event the payment to Suppliers and /or letters of
credit issued to Suppliers are in currencies other than United States dollars
CLIENT shall arrange forward foreign exchange currency contracts, acceptable to
PFI, to hedge against foreign currency fluctuations.

      8. Security Interest: CLIENT hereby grants to PFI a security interest in
all of the following CLIENT assets (hereinafter "Collateral"):

          All assets, including all inventory, accounts, accounts receivable,
          chattel paper, documents, instruments, contract rights, insurance
          proceeds, trademarks, tradenames and other general intangibles,
          furniture, fixtures, equipment, and all proceeds thereof, now owned
          and hereafter acquired.

CLIENT shall execute a formal Security Agreement and New York Uniform Commercial
Code Financing Statement for the benefit of PFI. In addition, CLIENT shall
arrange for the benefit of PFI for the corporate guaranties of Drinks Americas,
Inc. and the personal guaranties of J. Patrick Kenny, Fabio Berkowicz, Jason
Lazo. Except for the security interest granted to PFI herein, CLIENT shall not,
without PFI's prior written consent, grant any other security interest in any of
the Collateral to any other party. Prior to PFI assisting CLIENT with any
transactions under this Agreement, CLIENT shall arrange for the benefit of PFI
general subordination agreements and transaction-specific subordinations with
Business Alliance Capital Company, all in a form acceptable to PFI.

      9. Importer / Exporter of Record: For import transactions (where Products
are imported into the US), CLIENT shall be the importer of record and Products
shall be cleared through CLIENT's U.S. Customs bond. CLIENT shall arrange with
all customs house brokers to have the Products cleared through U.S. Customs, and
thereafter held in trust for, and under the exclusive control of PFI. All
customs house brokers must be approved in advance by PFI. For export
transactions (where Products sourced in the US or other countries are sold to
foreign buyers), CLIENT shall be the exporter of record and shall arrange for
the supply of Products, their inland shipment and their export shipment through
CLIENT's freight forwarder, subject to PFI's prior approval of such forwarder.
PFI shall have the right to negotiate revisions to any payment arrangements
directly with any supplier of Products and to control any shipment of the
Products should PFI elect to exercise such rights. CLIENT and PFI shall jointly
execute a letter to PFI's freight forwarder advising such forwarder of PFI's
interest in the Products and instructing the forwarder to follow any
instructions PFI might give concerning Products or related shipping documents;
PFI shall have the right to give any such instructions directly to any
forwarders or carriers and to confirm any related matters directly with any
forwarders or carriers. For each letter of credit in CLIENT'S favor concerning
Products, CLIENT shall execute an "authorization to pay proceeds of letter of
credit" (also commonly referred to as "assignment of proceeds") to the bank
where such letter of credit is payable, in a manner acceptable to such bank and
in the full amount of the letter of credit. If requested by PFI, CLIENT shall
execute a letter to any bank where a letter of credit covering any Products is
payable, advising such bank that PFI is CLIENT's agent for matters concerning
the letter of credit and requesting such bank to act according to PFI's
instructions concerning such letter of credit or any documents presented under
it.

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<PAGE>

      10. Third Party Warehousing: If third-party warehousing of the Products is
necessary, CLIENT shall arrange to have the Products received and held in trust
for PFI in warehouse facilities which have been approved in advance by PFI. Such
Products shall be stored there in PFI's name and under PFI's exclusive control.
CLIENT shall arrange for PFI personnel to have unlimited access to the warehouse
facilities and to the Products at all times during regular warehouse working
hours. CLIENT hereby recognizes and agrees that PFI shall have sole authority to
release the Products from such warehouse facilities, however, PFI shall not
unreasonably withhold such release.

      11. Client Warehousing: Should Products be delivered to CLIENT's facility
         for redistribution or storage, CLIENT shall, as applicable, receive,
         organize for redistribution, and hold the Products under trust receipts
         and in trust for PFI in:
      [X] A field warehouse established by an independent warehouse company
         acceptable to PFI.
      [ ] Secured sections of CLIENT's facility, leased to and/or under the
         exclusive control of PFI, where Products shall be separate from and not
         co-mingled with the property of others, including the property of
         CLIENT.
Such Products shall be stored there in PFI's name and under PFI's exclusive
control. CLIENT shall arrange for PFI personnel to have unlimited access to such
facilities and to the Products at all times during regular CLIENT working hours.
CLIENT hereby recognizes and agrees that PFI shall have sole authority to
release the Products from such warehouse facilities, however, PFI shall not
unreasonably withhold such release.

      12. Freight, Duty, Other: Upon CLIENT's request per Addendum, or Default,
and then only at the sole discretion of PFI, PFI may from time to time agree to
arrange for payments to be made for freight, duty, customs clearance, handling,
and other charges necessary to have the Products delivered to the warehouses or
Customers, and such payments shall become a component of PFI's Costs as defined
herein.

      13. Insurance: Ocean/air cargo, storage, and inland transit insurance for
the Products shall be arranged as needed by CLIENT, and such coverage shall have
been pre-approved by PFI and shall name PFI as an Additional Assured. CLIENT
shall provide to PFI copies of such insurance policies evidencing PFI's
Additional Assured status. CLIENT guaranties to make declarations as required in
their insurance policies and shall notify PFI immediately of any loss or damage
which might occur. CLIENT agrees to reimburse PFI for any Products lost,
damaged, or spoiled within 90 days from the occurrence and shall pay PFI
immediately upon presentation to CLIENT of a PFI invoice. The payment amount
shall be calculated in accordance with Sections 15(A), 15(B), 15(C), 15(D), and
15(E) below.

      14. Product Liability Insurance: At PFI's discretion, PFI may require
Product liability insurance coverage in the minimum amount of US $1,000,000 be
arranged by CLIENT and such policy shall name PFI as Additional Assured. CLIENT
shall provide to PFI copies of such insurance policy evidencing PFI's Additional
Assured status.

      15. Client's Repurchase of Products: Regardless of the status or location
of the Products, CLIENT hereby agrees to re-purchase and take delivery of the
Products from PFI, without recourse to PFI for defects, mispackaging,
mislabeling, damage caused in transit or storage, Customer returns, Customer
claims, product liability, or for any other reason, and shall pay for such
Products in accordance with the terms stipulated per Addendum to this Agreement.
Unless otherwise instructed per Addendum to this Agreement, CLIENT shall arrange
for payments to be wire transferred to PFI's account as follows:

          U.S. BANK, NATIONAL ASSOCIATION Spokane Main Branch, Spokane,
          Washington
          ABA: 125-000-105
          To Benefit:   Production Finance International, LLC.
          Account Number: 153 5916 87816

The payment amount shall be the sum total of the following:
   A) PFI's costs (hereinafter "PFI's Costs") which shall include,  but not be
       limited to, the amounts paid, or to be paid, to Suppliers and agents for
       Products, freight, warehousing, insurance, handling and bank charges
       (including all banking fees relating to the issuance, amendment,
       collection, and negotiation of import letters of credit), if any, paid or
       incurred by PFI.
   B)  Interest (hereinafter "Interest") on the amount of PFI's Costs from the
       dates paid by PFI to the dates payments are received by PFI at a per
       annum rate equal to the Prime Rate plus 5%. For the purpose of this
       Agreement, "Prime Rate" means the prime rate that the Wall Street Journal
       from time to times identifies as the "Prime Rate" in its "Money Rates"
       section, and is not necessarily the lowest rate a bank may offer to any
       borrower or group of borrowers.
   C)  Other costs (hereinafter "Other Costs") which shall include, but not be
       limited to UCC investigation and filing fees, credit agency fees,
       reasonable attorney fees related to this Agreement and Addenda thereto,
       if any, paid or incurred by PFI.
   D)  Commission (hereinafter "Commission") to PFI on PFI's Costs in an amount
       to be agreed by the parties per Addendum.
   E)  PFI Service Fees (hereinafter "Fees") for special services performed by
       PFI, which may include but not be limited to, amendments to PFI letters
       of credit to Suppliers, amendments to PFI Addenda, drawings under
       Supplier letters of credit, letter of credit drawings on settled Addenda,
       etc. This list of examples is not meant to be exclusive. A PFI Service
       Fee Schedule shall be sent out and adjusted from time to time at the
       discretion of PFI.

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<PAGE>

Should for any reason whatsoever CLIENT not take delivery of the Products from
PFI, and/or payments not be received by PFI from CLIENT within the time and/or
according to the terms stated per Addendum, CLIENT agrees the Commission due to
PFI shall be increased by 3%.

      16. Payments to PFI: In consideration of PFI agreeing to assist with a
particular transaction as evidenced by a signed Addendum hereto, CLIENT agrees
that, should for any reason whatsoever a transaction not be completed, CLIENT
shall pay PFI amounts due calculated in accordance with Sections 15(A), 15(B),
15(C), 15(D), and 15(E) above. CLIENT recognizes and agrees that the minimum
Commission due PFI on each Addendum shall be determined per Addendum.

      17. Authorization: CLIENT hereby authorizes PFI to prepare and execute on
behalf of CLIENT any missing or incorrect documents which may be required to
complete transactions covered by Addenda hereto, and to make any presentation of
such documents to any party which PFI, in its sole discretion, deems reasonable
and necessary. CLIENT shall execute a formal Power of Attorney for the benefit
of PFI.

      18. Information: CLIENT shall provide, or arrange to provide, to PFI the
following financial information which shall be prepared in accordance with
generally accepted accounting principles consistently applied:

[X] Interim financial statements for Client (including an income statement and
    balance sheet) as soon as possible, but no later than 30 calendar days after
    each [ ] month-end; [X] quarter-end; [ ] fiscal semi-annual period-end.

[X] Accounts Receivable Agings, and [ ] Accounts Payable agings as soon as
    possible, but no later than 30 calendar days after each [ ] month-end; [ X ]
    quarter-end; [ ] fiscal semi-annual period-end.

[X] Fiscal year-end financial statements for CLIENT (including an income
    statement, balance sheet, statement of change of financial condition, and
    retained earnings statement, all with footnotes) as soon as possible, but no
    later than 90 days after CLIENT's fiscal year-end. Such financial statements
    shall be: [ ] audited, [ ] reviewed, [X] compiled, by CLIENT's Certified
    Public Accountant ("CPA"); [ ] internally prepared by CLIENT's accounting
    staff. All CPA charges and fees shall be for the account of CLIENT. PFI
    shall have the right to discuss CLIENT's financial condition and financial
    statements, directly with CLIENT's CPA.

[ X ] Current financial statements on all guarantors to be provided annually.

[   X ] Any other reasonable financial information requested by PFI, including
    information relating to CLIENT'S financing arrangements and availability
    with lenders and factors.

      19. No payments or transfers: As a pre-condition to PFI assisting with
transactions under this Agreement CLIENT agrees there shall be no payment or
transfer of funds, out of the ordinary course of business, from CLIENT to any
CLIENT parent company, subsidiary, affiliate, officer, investor, employee, or
any other party without the prior written consent of PFI, however, PFI shall not
unreasonably withhold such consent.

      20. Time is of the essence of this Agreement and each of its provisions.
Default shall occur under this Agreement if the CLIENT fails to perform in
accordance with any Section or sub-section of this Agreement or Addenda thereto,
or if there is a Default under any other agreement between CLIENT and PFI, or if
there is a Default under any security documents securing this Agreement. Should
any one or combination of these events occur, and CLIENT fails to cure such
event(s) of Default within 5 business days following PFI providing written
notice, the entire amount of PFI's Costs, Interest, Other Costs, Commission and
Fees shall without notice become immediately due and payable at the option of
PFI, and furthermore, all amounts due PFI from CLIENT, shall immediately and
without notice, bear Interest at a per annum rate equal to the Prime Rate plus
8%. PFI, as owner of the Products and PFI Assets, shall have the right to sell
the Products and to retain for its own account any and all proceeds of sale
until all amounts due PFI from CLIENT pursuant to this Agreement are paid in
full. CLIENT agrees that if PFI sells the Products upon CLIENT's Default, PFI
shall be doing so as the sole owner of the Products. In Default, CLIENT agrees
to assist PFI in good faith in the sale of Products, and shall not obstruct in
any way PFI's sales efforts. CLIENT shall make available CLIENT's sales force to
assist in fulfilling orders, taking new orders, or otherwise liquidating
Products on any terms which PFI, in its sole discretion, may deem reasonable.

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<PAGE>

      21. Hold Harmless: CLIENT hereby recognizes, agrees, and acknowledges that
PFI is not a party to, and shall not be or become responsible to Customers,
Suppliers, or any other party for performance under the Contracts. Except for
acts of gross negligence committed by PFI, CLIENT hereby agrees to indemnify
PFI, its officers, employees, and agents for, and agrees to hold them harmless
from, any liabilities, claims, demands, costs, damages, or other expenses,
including, but not limited to reasonable attorney fees at trial and on appeal
arising out of or relating to the Contracts. This shall include an
indemnification to PFI, its officers, employees, and agents by CLIENT to hold
them harmless from any claim against PFI's use of another person's or entity's
trademark(s), trade name(s), or service mark(s) under this Agreement. The
provisions of this Section 21 shall survive the termination of this Agreement.

      22. Hold Harmless: Except for acts of gross negligence committed by PFI,
CLIENT hereby agrees to indemnify PFI, its officers, employees, and agents for,
and agrees to hold them harmless from, any liabilities, claims, demands, costs,
damages, fines, taxes, duties, or other expenses sought by any party, including
but not limited to attorney fees at trial and on appeal arising out of or
relating to this Agreement. The provisions of this Section 22 shall survive the
termination of this Agreement.

      23. Disputes. Any controversy or claim arising out of or relating to this
Agreement, or breach thereof, shall be settled in accordance with the laws of
the State of Washington and shall be commenced in the city and county of
Spokane, Washington. Attorney's fees of the prevailing party shall be born by
the non-prevailing party.

      24. Representations. CLIENT represents that it is the business entity type
and is duly organized under the laws of the state which are indicated in the
first paragraph of this Agreement, and has full power and authority to enter
into this Agreement and perform the client obligations hereunder. CLIENT further
represents that it: (1) has received and is in compliance with all federal,
state and local permits, licenses, and approvals necessary to perform its
business and the transactions contemplated by this Agreement, (2) execution of
this Agreement and the transactions contemplated herein will not violate any
provision of CLIENT's Articles of Organization or Bylaws, or any law,
regulation, ordinance, order, award, judgment or decree to which CLIENT is a
party or bound, and (3) no consent of any governmental or regulatory authority
is or will be required in connection with the execution, delivery, performance
and the consummation of the transactions contemplated by this Agreement.

      25. Compliance with Laws. CLIENT shall strictly observe and comply with
all federal, state and local laws and regulations which govern the manufacture,
sale, handling and disposal of any Products referred to herein. If CLIENT
violates or is officially charged with violation of any such laws or
regulations, then PFI in its sole discretion may treat such conduct as a breach
of this entire Agreement, and in addition to any other remedies may immediately
terminate this Agreement.

      26. Benefit. This Agreement shall be binding upon and shall inure to the
benefit of the parties and their successors and assigns, provided that CLIENT
shall not assign its rights or delegate the performance of its duties under this
Agreement without the prior written consent of PFI.

      27. Collection Costs. Should litigation be commenced, CLIENT hereby
promises to pay all costs of collecting past due amounts. Without limiting the
foregoing, in the event that PFI consults an attorney regarding the enforcement
of any of its rights under this Agreement or any document securing the same, or
if this Agreement is placed in the hands of an attorney for collection, or if
litigation is brought to enforce this Agreement or any documents securing same,
CLIENT promises to pay all costs thereof including such additional sums as the
court or may adjudge reasonable as attorney fees, including without limitation,
costs and attorney fees incurred in any appellate court, in any proceeding under
the bankruptcy code, or in any receivership.

      28. Notice. Any notice or other communications transmitted by either party
to the other may be hand delivered, sent by facsimile transmission, or sent by
courier, regular mail, or certified mail, return receipt requested, to the
address shown in this Agreement, or such other place as each party may hereafter
designate to the other party in writing. All such notices and communications so
provided shall be deemed sufficiently given and served.

      29. Remedies. All remedies provided for in this Agreement are distinct and
cumulative to any other right or remedy afforded by law or equity and, to the
extent permitted by law, may be exercised concurrently, independently, or
successively.

      30. No Verbal Agreements. There shall be no verbal agreements which
qualify, modify, or supplement this Agreement.

      31. No waivers. No waiver of any right on one occasion shall be a waiver
of the same or any other right on a subsequent occasion. Any invalidity, in
whole or in part, or any provision herein shall not affect the validity of any
other provision. No delay or omission on the part of PFI in exercising any right
under this Agreement shall operate as a waiver of such right or any other right.

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<PAGE>

      32. Facsimiles. CLIENT acknowledges and agrees that each Addenda and
supporting transactional documentation signed by CLIENT and received by PFI in
the form of a document reproduced by facsimile transmission (a "FAX
reproduction") is intended to be and shall be deemed to be an original signature
and document, and such FAX reproduction (and any duplicate made thereof) shall
be effective for all purposes to the same extent as if it were the original.

      33. Jurisdiction. This Agreement shall be governed by and construed and
enforced in accordance with the laws of the State of Washington. Any legal
action related thereto and/or related to this Agreement shall be commenced in
Spokane, Washington, and the parties agree that they will be subject to the
jurisdiction of the Courts of Spokane County, Washington.

D.T. DRINKS, LLC PRODUCTION FINANCE INTERNATIONAL, LLC

By: _______________________________          By: _______________________________

Title: ____________________________          Title: ____________________________

                                       6LOAN AND SECURITY AGREEMENT

            This LOAN AND SECURITY AGREEMENT is entered into as of June ___,
2006 between BUSINESS ALLIANCE CAPITAL COMPANY, a division of Sovereign Bank, a
federal savings bank (BACC), with its chief executive office located at 214
Carnegie Center, Suite 302, Princeton, New Jersey 08540 and DRINKS AMERICAS
INC., a Delaware corporation ("DAI"), DRINKS GLOBAL IMPORTS, LLC, a New York
limited liability company (DGI"), and D.T. DRINKS, LLC, a New York limited
liability company ("DTD", and together with DAI and DGI individually and
collectively Borrower), each with its chief executive office located at 372
Danbury Road, Wilton, CT 06897.

             The parties agree as follows

      1.    DEFINITIONS AND CONSTRUCTION

            1.1      Terms. As used in this Agreement, the following terms shall
have the following meanings:

            Accounts means, in addition to the definition of accounts in the
 Code, all presently existing and hereafter arising accounts receivable,
 contract rights, health-care-insurance receivables, and all other forms of
 obligations owing to Borrower arising out of the sale, lease, license or
 assignment of goods or other property, or the rendition of services by
 Borrower, whether or not earned by performance, all credit insurance,
 guaranties, and other security therefor, as well as all merchandise returned to
 or reclaimed by Borrower and Borrower's Books relating to any of the foregoing.

            Advances means all loans, advances and other financial
 accommodations by BACC to or on account of the Borrower, including those under
 this Agreement.

            Agreement means collectively this Loan and Security Agreement, any
 concurrent or subsequent rider to this Loan and Security Agreement, and any
 extensions, supplements, amendments, addenda or modifications to or in
 connection with this Loan and Security Agreement or any such rider.

             Authorized Officer means any officer or other representative of
 Borrower authorized in a writing delivered to BACC to transact business with
 BACC.

             BACC means Business Alliance Capital Company, a division of
 Sovereign Bank, its successors and assigns.

            BACC Expenses means all of the following: costs and expenses
 (whether taxes, assessments, insurance premiums or otherwise) required to be
 paid by Borrower under any of the Loan Documents which are paid or advanced by
 BACC; filing, recording, publication, appraisal and search fees paid or
 incurred by BACC in connection with BACC's transactions with Borrower; costs
 and expenses incurred by BACC in the disbursement or collection of funds to or
 from Borrower or its account debtors; charges resulting from the dishonor of
 checks; costs and expenses incurred by BACC to correct any default or enforce
 any provision of the Loan Documents, or in gaining possession of, maintaining,
 handling, preserving, storing, shipping, selling, preparing for sale, or
 advertising to sell the Collateral, or any portion thereof, irrespective of
 whether a sale is consummated; and costs and expenses incurred by BACC in
 enforcing or defending the Loan Documents or otherwise exercising its rights
 and remedies upon the existence of an Event of Default, including, but not
 limited to, costs and expenses incurred in connection with any proceeding,
 suit, enforcement of judgment, or appeal; and BACC's reasonable attorneys' fees
 and expenses, including allocated fees of in-house counsel, incurred in
 advising, structuring, drafting, reviewing, administering, amending, modifying,
 terminating, enforcing, defending, or otherwise representing BACC concerning
 the Loan Documents or the Obligations.

                                      -1-
<PAGE>

            Borrower's Books means all of Borrower's books and records including
all of the following: ledgers; records indicating, summarizing, or evidencing
Borrower's assets or liabilities, or the Collateral; all information relating to
Borrower's business operations or financial condition; and all computer
programs, disk or tape files, printouts, runs, or other computer prepared
information, and the facilities containing such information.

            Business Day means any day which is not a Saturday, Sunday, or other
day on which banks in the State of New Jersey are authorized or required to
close.

            Chattel Paper shall have the same meaning ascribed to such term in
the Code.

            Code means the New Jersey Uniform Commercial Code, as amended or
 revised from time to time.

            Collateral means all assets of the Borrower, whether now owned or
 existing, or hereafter acquired or arising, and wherever located, including,
 without limitation, all of the following assets, properties and interests in
 property of Borrower,: all Accounts; all Equipment; all Commercial Tort Claims,
 all General Intangibles; all Chattel Paper; all Inventory; all Negotiable
 Collateral; all Investment Property, all Financial Assets, all Letter of Credit
 Rights, all Supporting Obligations, all Deposit Accounts, all money or any
 assets of Borrower which hereafter come into the possession, custody, or
 control of BACC; all proceeds and products, whether tangible or intangible, of
 any of the foregoing, including proceeds of insurance covering any or all of
 the foregoing, and any and all tangible or intangible property resulting from
 the sale, lease, license or other disposition of the foregoing, or any portion
 thereof or interest therein, and all proceeds thereof, and any other assets of
 Borrower or any Guarantor which may be subject to a lien in favor of BACC as
 security for the Obligations.

            Commercial Tort Claims shall have the meaning ascribed to such term
 in the Code.

            Daily Balance means the amount of the Obligations owed at the end of
 a given day.

            Deposit Account shall have the meaning ascribed to such term in the
Code.

            Documents shall have the meaning ascribed to such term in the Code.

            Eligible Accounts means those Accounts created by Borrower in the
ordinary course of business, which are and at all times shall continue to be
acceptable to BACC in all respects; provided, however, that standards of
eligibility may be fixed and revised from time to time by BACC in BACC's good
faith judgment. In determining such acceptability and standards of eligibility,
BACC may, but need not, rely on agings, reports and schedules of Accounts
furnished by Borrower, but reliance by BACC thereon from time to time shall not
be deemed to limit BACC's right to revise standards of eligibility at any time
as to both Borrower's present and future Accounts. In general, an Account shall
not be deemed eligible unless: (1) the Account debtor on such Account is and at
all times continues to be acceptable to BACC in its sole discretion, and up to
credit limits acceptable to BACC in its sole discretion, and (2) such Account
complies in all respects with the representations, covenants and warranties
hereinafter set forth. Except in BACC's sole discretion, Eligible Accounts shall
not include any of the following (a) Accounts which the Account debtor has
failed to pay within sixty (60) days of invoice date, and all Accounts owed by
any Account debtor that has failed to pay twenty-five percent (25%) or more of
its Accounts owed to Borrower within sixty (60) days of invoice date; (b)
Accounts with respect to which goods are sold on a bill and hold basis or placed
on consignment or for a guaranteed sale, or which contain other terms by reason
of which payment by the Account debtor may be conditional; (c) Accounts with
respect to which the Account debtor is not a resident of the United States
unless the Account is supported by foreign credit insurance or a letter of
credit, in both instances satisfactory to and assigned to BACC; (d) Accounts
with respect to which the Account debtor is the United States or any department,
agency or instrumentality of the United States, any State of the United States
or any city, town, municipality or division thereof unless all filings have been
made under the Federal Assignment of Claims Act or comparable state or other
statute; (e) Accounts with respect to which the Account debtor is an officer,
employee or agent of, or subsidiary of, related to, affiliated with or has
common shareholders, officers or directors with Borrower; (f) Accounts with
respect to which Borrower is or may become liable to the Account debtor for
goods sold or services rendered by the Account debtor to Borrower or otherwise;
(g) Accounts with respect to an Account debtor (or affiliated group of Account
debtors) whose total obligations to Borrower exceed twenty five percent (25%) of
all Eligible Accounts or such other percentage as BACC may agree to in writing
as to a particular Account debtor (the applicable percentage the "Concentration
Percentage"), to the extent such obligations exceed the applicable Concentration
Percentage; (h) Accounts with respect to which the Account debtor disputes
liability or makes any claim with respect thereto, or is subject to any
insolvency proceeding, or becomes insolvent, fails or goes out of business; (i)
the Account arises out of a contract or purchase order for which a surety bond
was issued on behalf of Borrower; (j) Accounts in which BACC does not have first
priority and exclusive perfected security interest; (k) Accounts where the
Account Debtor is in a jurisdiction for which Borrower is required to file a
notice of business activities or similar report and Borrower has not filed such
report within the time period required by applicable law; (l) any Account as to
which an invoice has not been issued to the Account debtor; (m) any Account
which represents a progress billing on a contract which has not been fully
completed by Borrower, or (n) any Purchase Order Financed Account.

                                      -2-
<PAGE>

             Equipment means in addition to the definition of equipment in the
 Code, all of Borrower's present and hereafter acquired equipment, machinery,
 machine tools, motors, furniture, furnishings, fixtures, motor vehicles,
 rolling stock, processors, tools, pans, dies, jigs, goods (other than consumer
 goods or farm products) and any interest in any of the foregoing, and all
 attachments, accessories, accessions, replacements, substitutions, additions,
 and improvements to any of the foregoing, wherever located.

             ERISA means the Employee Retirement Income Security Act of 1974, as
 amended, and the regulations thereunder.

             ERISA Affiliate means each trade or business (whether or not
 incorporated and whether or not foreign) which is or may hereafter become a
 member of a group of which Borrower is a member and which is treated as a
 single employer under ERISA Section 4001(b)( 1), or IRC Section 414.

             Event of Default means the events specified in Section 8, below.

             Financial Assets shall have the meaning ascribed to such term in
 the Code.

             General Intangibles means in addition to the definition of general
 intangibles in the Code, all of Borrower's present and future general
 intangibles and other personal property (including choses or things in action,
 goodwill, patents, trade names; trademarks, service marks, copyrights,
 blueprints, drawings, purchase orders, customer lists, monies due or
 recoverable from pension funds, route lists, infringement claims, computer
 programs, computer discs, computer tapes, Borrower's Books, literature,
 reports, catalogs, deposit accounts, insurance premium rebates, tax refunds,
 and tax refund claims) other than goods and Accounts.

            Guarantor means each person or entity which guarantees the
Obligations, or issues a validity guaranty relating to the Collateral, or
pledges any assets to BACC as additional security for the Obligations.

             Insolvency Proceeding means any proceeding commenced by or against
 any person or entity under any provision of the federal Bankruptcy Code, as
 amended, or under any other state or federal insolvency law, including
 assignments for the benefit of creditors, formal or informal moratoria,
 compositions, or extensions generally with its creditors.

            Instruments shall have the meaning ascribed to such term in the
Code.

            Inventory means, in addition to the definition of inventory in the
Code, all present and future inventory in which Borrower has any interest,
including goods held for sale or lease or to be furnished under a contract of
service, Borrower's present and future raw materials, work in process, finished
goods, tangible property, stock in trade, wares, and materials used in or
consumed in Borrower's business, goods which have been returned to, repossessed
by, or stopped in transit by Borrower, packing and shipping materials, wherever
located, any documents of title representing any of the above, and Borrower's
Books relating to any of the foregoing.

            Investment Property shall have the meaning ascribed to such term in
the Code.

            IRC means the Internal Revenue Code of 1986, as amended, and the
regulations thereunder.

            Letter of Credit Rights shall have the meaning ascribed to such term
 in the Code.

                                      -3-
<PAGE>

            Loan Documents means, collectively, this Agreement, any Note or
 Notes, any security agreements, pledge agreements, mortgages, deeds of trust or
 other encumbrances or agreements which secure the Obligations, and any other
 agreement entered into between Borrower and BACC or by Borrower or a Guarantor
 in favor of BACC relating to or in connection with this Agreement or the
 Obligations, as each of same may be amended, modified, renewed, extended or
 substituted from time to time.

            Multiemployer Plan means a multiemployer plan as defined in ERISA
Sections 3(37) or 4001(a)(3) or IRC Section 414(f).

            Negotiable Collateral means all of Borrower's present and future
 letters of credit, notes, drafts, Instruments, Documents, leases, and Chattel
 Paper.

             Note means any promissory note made by Borrower to the order of
 BACC concurrently herewith or at any time hereafter.

            Obligations means all loans, Advances, debts, liabilities (including
 all interest and amounts charged to the Obligations pursuant to any agreement
 authorizing BACC to charge the Obligations), obligations, lease payments,
 guaranties, covenants, and duties owing by Borrower to BACC of any kind and
 description (whether pursuant to or evidenced by the Loan Documents or by any
 other agreement between BACC and Borrower, and irrespective of whether for the
 payment of money), whether made or incurred prior to, on, or after the
 Termination Date, direct or indirect, absolute or contingent, due or to become
 due, now existing or hereafter arising, including any debt, liability or
 obligation owing from Borrower to others which BACC may obtain by assignment or
 otherwise, and all interest thereon and all BACC Expenses.

            Permitted Indebtedness means the following: (a) indebtedness to BACC
arising under any of the Loan Documents or otherwise, (b) current liabilities of
Borrower incurred in the ordinary course of business not incurred through (i)
the borrowing of money, or (ii) the obtaining of credit except for credit on an
open account basis customarily extended and in fact extended in connection with
normal purchases of goods and services; (c) unsecured indebtedness in respect of
taxes, assessments, governmental charges, insurance, materials or supplies in
the ordinary course of Borrowers business; (d) amounts payable for expense
reimbursements to or indemnification of employees, officers, or directors; (f)
indebtedness arising in connection with capital leases, provided that the
aggregate principal amount of all such indebtedness permitted under this clause
shall not exceed amounts provided in the Agreement; (g) indebtedness in respect
of judgments or awards that are fully covered by insurance (with the insurer
having acknowledged coverage) or that have been in force for less than the
applicable period for initiating an appeal of such judgment or award so long as
execution is not levied thereunder or in respect of which the Borrower shall at
the time in good faith be prosecuting an appeal or proceedings for review and in
respect of which a stay of execution shall have been obtained pending such
appeal or review; (h) endorsements for collection, deposit or negotiation and
warranties of products or services, in each case incurred in the ordinary course
of business; (i) indebtedness under a Permitted Purchase Order Assistance
Facility (j) purchase money indebtedness in Equipment incurred in the ordinary
course of business (k) indebtedness of Borrower existing on the date hereof and
listed and described on Schedule 7.1 hereto; (l) unsecured indebtedness for
borrowed money (which may be under convertible debentures or similar debt
instruments) provided that such indebtedness is subordinate to the Obligations
of Borrower to BACC, pursuant to subordination terms and provisions satisfactory
to BACC, and prior written notice of the incurrence of said indebtedness have
been furnished to BACC, and (m) indebtedness of Borrower incurred to refinance
or replace indebtedness permitted hereunder, provided that the principal amount
(or committed principal amount) of such refinancing indebtedness shall not
exceed the outstanding principal amount (or committed principal amount) of the
indebtedness being refinanced.

             Permitted Purchase Order Assistance Facility means a Purchase Order
 Assistance Facility acceptable to BACC in its sole discretion, provided the
 subject Purchase Order Assistance Provider has entered into an intercreditor
 agreement with BACC satisfactory in form and substance to BACC.

             PFI means Production Finance International, LLC

                                      -4-
<PAGE>

             Plan means any plan described in ERISA Section 3(2) maintained for
 employees of Borrower or any ERISA Affiliate, other than a Multiemployer Plan.

             PO Financed Borrower means D.T. Drinks, LLC or such other Borrower
 as BACC may agree to and approve to, in writing, from time to time, which may
 have a Permitted Purchase Order Assistance Facility.

             Prime Rate means that rate designated by Sovereign Bank, or any
 successor thereof, from time to time as its prime rate, which shall not
 necessarily constitute its lowest available rate.

             Purchase Order Assistance Facility means a facility to be provided
 to a PO Financed Borrower by a Purchase Order Assistance Provider under which,
 inter alia, such Purchase Order Assistance Provider shall provide assistance to
 the PO Financed Borrower to acquire specific Inventory approved by BACC, by
 such Purchase Order Assistance Provider against specific purchase orders to
 Borrower, and will acquire title to the goods to be acquired to fulfill said
 purchase order.

             Purchase Order Assistance Provider means a third party which
 provides a Purchase Order Assistance Facility to a PO Financed Borrower.

             Purchase Order Financed Account means any Account arising from the
 sale of Purchase Order Financed Inventory or other Account of a PO Financed
 Borrower subject to a lien in favor of a Purchase Order Assistance Provider,
 provided such Account shall cease to be a Purchase Order Financed Account if
 (a) BACC and the Purchase Order Assistance Provider providing the subject
 Purchase Order Assistance Facility to a PO Financed Borrower have entered into
 an Intercreditor Agreement satisfactory in form and substance to BACC, and (b)
 upon BACC's forwarding to said Purchase Order Assistance Provider the amount
 requested by said Purchase Order Assistance Provider (which may be set forth in
 the intercreditor agreement between BACC and such Purchase Order Assistance
 Provider), all right, title and interest in said Account shall be owned by the
 subject PO Financed Borrower and the security interest or other lien or
 interest of said Purchase Order Assistance Provider in said Account shall be
 subordinate to the security interest in favor of BACC in accordance with the
 terms of the subject Intercreditor Agreement.

             Purchase Order Financed Inventory means all goods to be sold under
 a purchase order issued to a PO Financed Borrower from one of its customers,
 which goods are acquired or to be acquired through a Purchase Order Assistance
 Facility between a PO Financed Borrower and a Purchase Order Assistance
 Provider, including, without limitation, the existing Purchase Order Assistance
 Facility between D.T. Drinks, LLC and PFI.

             Revolving Credit Facility means the revolving credit facility
 provided for in Section 2.1 hereof.

             Supporting Obligation shall have the same meaning ascribed to such
 term in the Code.

             Term means the period from the date of the execution and delivery
 by BACC of this Agreement through and including the later of (a) the
 Termination Date and (b) the payment and performance in full of the
 Obligations.

             Termination Date means (a) June ____, 2009 (the period through such
 date the "Initial Term"), unless such date is extended pursuant to Section 3.1
 hereof, and if so extended on one or more occasions the last date of the last
 such extension, or (b) if earlier terminated by BACC pursuant to section 9.1
 hereof, the date of such termination.

            1.2 Construction. Unless the context of this Agreement clearly
 requires otherwise, references to the plural include the singular and to the
 singular include the plural. The words hereof, herein, hereby, hereunder, and
 similar terms in this Agreement refer to this Agreement as a whole and not to
 any particular provision of this Agreement. Section, subsection, clause and
 exhibit references are to this Agreement unless otherwise specified. Words
 importing a particular gender mean and include every other gender.

                                      -5-
<PAGE>

            1.3 Accounting Terms. All accounting terms not specifically defined
 herein shall be construed in accordance with generally accepted accounting
 principles (GAAP) as in effect from time to time. When used herein, the term
 financial statements shall include the notes and schedules thereto.

            1.4 Exhibits. All of the exhibits, addenda or riders attached to
 this Agreement shall be deemed incorporated herein by reference.

            1.5 Code. Any terms used in this Agreement which are defined in the
 Code shall be construed and defined as set forth in the Code, unless otherwise
 defined herein.

      2.    ADVANCES AND TERMS OF PAYMENT

             2.1   Revolving Advances; Advance Limit.

             (A) Upon the request of Borrower, made at any time from and after
 the date hereof until the Termination Date, and so long as no Event of Default
 has occurred, BACC may, in its good faith discretion, make Advances in an
 amount up to eighty five percent (85%) of the aggregate outstanding amount of
 Eligible Accounts, provided, however, that in no event shall the aggregate
 amount of the outstanding Advances under the Revolving Credit Facility be
 greater than, at any time, the amount of Ten Million Dollars ($10,000,000.00)
 (said dollar limit the Advance Limit). BACC may create reserves against, or
 reduce its advance percentages based on Eligible Accounts without declaring an
 Event of Default if it determines, in its good faith discretion, that such
 reserves or reduction is necessary, including, without limitation, to protect
 its interest in the Collateral and/or against diminution in the value of any
 Collateral, and/or to insure the prospect of payment or performance by Borrower
 of its Obligations to BACC are not impaired.

             (B) Borrower has advised BACC that D.T. Drinks, LLC has obtained,
 or intends to obtain, a Purchase Order Assistance Facility from PFI. Borrower
 represents it has furnished to BACC a true, accurate and complete copy of the
 Agreement to be entered into by Borrower and PFI pursuant to which a Purchase
 Order Assistance Facility will be established, and all other documents and
 agreements related thereto. Borrower confirms it requested that BACC enter into
 an Intercreditor Agreement with PFI in the form annexed hereto as Exhibit A,
 and to which Borrower shall be a party to. Borrower hereby reaffirms said
 Intercreditor Agreement and the authorization set forth in said Intercreditor
 Agreement that, inter alia, BACC forward directly to PFI the proceeds of all
 Advance against an Account that is a Purchased Order Financed Account arising
 from the Purchase Order Assistance Facility between the PO Financed Borrower
 and PFI. Borrower will act in accordance with the procedures set forth in said
 Intercreditor Agreement relative to seeking Advances from BACC. Borrower hereby
 authorizes BACC to, from time to time, communicate directly with PFI and any
 other future Purchase Order Assistance Provider, so as to exchange any and all
 information relative to the Revolving Credit Facility between BACC and Borrower
 provided for herein and the Purchase Order Assistance Facility provided by said
 Purchase Order Assistance Provider. If hereafter Borrower obtains a Purchase
 Order Assistance Facility from a Purchase Order Assistance Provider which
 replaces the subject facility from PFI, all references in this Section 2.1(B)
 to PFI shall be deemed to be the replacement Purchase Order Assistance
 Provider.

            2.2 Overadvances. All Advances shall be added to and be deemed part
 of the Obligations when made. If, at any time and for any reason, the aggregate
 amount of the outstanding Advances under the Revolving Credit Facility exceeds
 the dollar or percentage limitations contained in Section 2.1 (an Overadvance)
 then Borrower shall, upon demand by BACC, immediately pay to BACC, in cash, the
 amount of such Overadvance. Without affecting Borrower's obligation to
 immediately repay to BACC the amount of each Overadvance, Borrower shall pay
 BACC a fee (the Overadvance Fee) in an amount to be agreed upon between BACC
 and Borrower, but not less than $500.00 per occurrence of an Overadvance, plus
 interest on the Overadvance amount at the Default Rate set forth below.

                                      -6-
<PAGE>

            2.3 Authorization to Make Advances. BACC is hereby authorized to
make the Advances based upon telephonic or other instructions received from
anyone purporting to be an Authorized Officer, or, at the discretion of BACC, if
such Advances are necessary to satisfy any Obligations. All requests for
Advances shall specify the date on which such Advance is to be made (which day
shall be a Business Day) and the amount of such Advance. Requests received after
12:00 p.m. Eastern time on any day shall be deemed to have been made as of the
opening of business on the immediately following Business Day. All Advances made
under this Agreement shall be conclusively presumed to have been made to, at the
request of, and for the benefit of Borrower when deposited to the credit of
Borrower or otherwise disbursed in accordance with the instructions of Borrower
or in accordance with the terms and conditions of this Agreement, or the
intercreditor agreement between BACC and the Purchase Order Assistance Provider.
Unless otherwise requested by Borrower, all Advances shall be made by a wire
transfer to the deposit account of Borrower designated on schedule 2.3 annexed
hereto, or such other account as Borrower shall notify BACC in writing. Borrower
shall pay to BACC a funds transfer fee of $25.00 for each Advance. Said fees
shall be payable on the first day of each month of the Term for all Advances
made during the preceding month.

            2.4   Interest.

            A. Except where specified to the contrary in the Loan Documents
 interest shall accrue on the Daily Balance of the Obligations at the per annum
 rate of one and one half percentage points (1.5%) above the Prime Rate, in
 effect from time to time. The Obligations shall, at the option of BACC, from
 and after the occurrence of an Event of Default, and without constituting a
 waiver of any such Event of Default, and if the Obligations are not paid in
 full by the Termination Date, and without waiving the maturity of the
 Obligations on the Termination Date, bear interest at the per annum rate of six
 and one half percentage points (6.5%) above the Prime Rate (the "Default
 Rate"). All interest payable under the Loan Documents shall be computed on the
 basis of a three hundred sixty (360) day year for the actual number of days
 elapsed on the Daily Balance. Interest as provided for herein shall continue to
 accrue until the Obligations are paid in full.

            B. The interest rate payable by Borrower under the terms of this
 Agreement shall be adjusted in accordance with any change in the Prime Rate
 from time to time on the date of any such change. All interest payable by
 Borrower shall be due and payable on the first day of each calendar month
 during the Term. BACC may, at its option, add such interest and all BACC
 Expenses to the Obligations, and such amount shall thereafter accrue interest
 at the rate then applicable under this Agreement. Notwithstanding anything to
 the contrary contained in the Loan Documents, the minimum monthly interest
 payable by Borrower on the Advances shall be calculated on a minimum Daily
 Balance of One Million Dollars ($1,000,000.00).

            C. In no event shall interest on the Obligations exceed the highest
 lawful rate in effect from time to time. It is not the intention of the parties
 hereto to make an agreement which violates any applicable state or federal
 usury laws. In no event shall Borrower pay or BACC accept or charge any
 interest which, together with any other charges upon the principal or any
 portion thereof, exceeds the maximum lawful rate of interest allowable under
 any applicable state or federal usury laws. Should any provision of this
 Agreement or any existing or future Notes or Loan Documents between the parties
 be construed to require the payment of interest or any other fees or charges
 which could be construed as interest which, together with any other charges
 upon the principal or any portion thereof and any other fees or charges which
 could be construed as interest, exceeds the maximum lawful rate of interest,
 then any such excess shall be applied to the remaining principal balance of the
 Obligations, if any, and the remainder refunded to Borrower.

            D. Notwithstanding the foregoing, for purposes of this Agreement, it
 is the intention of Borrower and BACC that "interest" shall mean, and be
 limited to, any payment to BACC which compensates it for extending credit to
 Borrower, for making available to Borrower a revolving credit facility during
 the term of this Agreement and for any default or breach by Borrower of a
 condition upon which credit was extended. Borrower and BACC agree that, for the
 sole purpose of calculating the "interest" paid by Borrower to BACC, it is the
 intention of Borrower and BACC that interest shall mean and include, and be
 expressly limited to, any interest accrued on the aggregate outstanding balance
 of the Obligations during the term hereof pursuant to Sections 2.4(A) and
 2.4(B); and any Overadvance Fee, Facility Fee, and late fees charged to
 Borrower during the term hereof. Borrower and BACC further agree that it is
 their intention that the following fees shall not constitute "interest": any
 Servicing Fees, any Examination Fees, any attorney fees incurred by BACC, any
 premiums or commissions attributable to insurance guaranteeing repayment,
 finders' fees, credit report fees, appraisal fees or fees for document
 preparation or notarization. To the extent, however, that New Jersey law
 excludes from the calculation of "interest" any fees defined herein as
 interest, or includes as interest any fees or other sums which are intended not
 to constitute interest New Jersey law shall supersede and prevail and all such
 interest shall be subject to paragraph 2.4(C) above.

                                      -7-
<PAGE>

             2.5 Collection of Accounts. BACC or a BACC designee may, at any
 time, with or without notice to Borrower, notify customers or Account debtors
 or other obligors that the Accounts or other Collateral have been assigned to
 BACC, and that BACC has a security interest in them and collect the Accounts
 and other Collateral directly, and add the collection costs and expenses to the
 Obligations, but, unless and until BACC does so or gives Borrower other written
 instructions, Borrower shall notify all Account debtors and other obligors to
 remit payments on Accounts and other Collateral to a lockbox to be designated
 by BACC, and with payments to be made by wire transfer, ACH or other electronic
 means, to an account designated by BACC. All such payments remitted to the
 lockbox or made by wire transfer, ACH or other electronic means, shall be
 credited to a deposit account of BACC and into which account remittances from
 account debtors or obligors of other clients of BACC may be credited. If
 notwithstanding said notice Borrower obtains payment on any Account or other
 Collateral, including, without limitation, collections under credit card sales,
 Borrower shall receive all such payments on Accounts and other Collateral and
 other proceeds, including cash, in trust for BACC and immediately deliver said
 payments to BACC in their original form as received from the Account debtor or
 other obligor, together with any necessary endorsements.

             2.6 Crediting Payments. The receipt of any item of payment by BACC
 shall, for the sole purpose of determining availability under the revolving
 credit facility provided for herein, subject to final payment of such item, be
 provisionally applied to reduce the Obligations on the date of receipt of such
 item by BACC, but the receipt of such an item of payment shall for all other
 purposes in determining the Daily Balance, including without limitation for the
 purpose of calculation of interest on the Obligations and the calculation of
 the Servicing Fee, not be deemed to have been paid to BACC until three (3)
 Business Days after the date of BACC's actual receipt of such item of payment.
 Notwithstanding anything to the contrary contained herein, payments received by
 BACC after 11:00 a.m. Eastern time shall be deemed to have been received by
 BACC as of the opening of business on the immediately following Business Day.

            2.7 Closing and Facility Fee. In consideration of BACC's entering
 into this Agreement, Borrower shall pay BACC a closing fee (the Closing Fee) of
 one half percent (.5%) of the Advance Limit (said closing fee being Fifty
 Thousand Dollars ($50,000.00), one half of which (Twenty Five Thousand Dollars
 ($25,000.-00) shall be paid simultaneous with the execution hereof, and the
 balance on June 1, 2007. Notwithstanding the foregoing the unpaid balance of
 said closing fee shall be payable in full on the earlier of (a) termination of
 this Agreement or (b) at BACC's option upon BACC's declaration of an Event of
 Default. On each annual anniversary of the date hereof Borrower shall pay to
 BACC an annual facility fee (the Facility Fee) of one quarter percent (.25%) of
 the Advance Limit plus the then outstanding principal balance of any term loans
 and Advances other than under the Revolving Credit Facility. The Closing Fee
 and Facility Fee shall be deemed to have been fully earned upon the execution
 hereof for the entire Initial Term.

            2.8 Servicing Fee. Borrower shall pay BACC a monthly fee (the
 Servicing Fee) in an amount equal to two tenths percent (.2%) of the average
 Daily Balance of the Advances during each month on or before the first (1st)
 day of each calendar month in respect of BACC's services for the preceding
 calendar month, during the Term, including each Renewal Term, or so long as the
 Obligations are outstanding, provided, however, that if Borrower breaches its
 obligations under Section 2.5 of this Agreement, and without constituting a
 waiver of an Event of Default as a consequence of such breach, at the election
 of BACC the Servicing Fee shall be doubled. Notwithstanding anything to the
 contrary contained in the Loan Documents, the Servicing Fee shall be based on a
 minimum Daily Balance of Advances of One Million Dollars ($1,000,000.00).

            2.9 Field Examination Fee. Borrower shall pay BACC a fee (the Field
 Examination Fee) in an amount equal to Seven Hundred Fifty Dollars ($750.00)
 per day per examiner, plus out-of-pocket expenses for each examination of
 Borrower's Books or the other Collateral performed by BACC or its designee.

            2.10 Late Reporting Fee. Borrower shall pay to BACC a fee in an
 amount equal to Fifty Dollars ($50.00) per document per day for each Business
 Day any report, financial statement or schedule required by this Agreement to
 be delivered to BACC, is past due.

            2.11 Monthly Statements. BACC may render monthly statements to
 Borrower of all Obligations, including statements of all principal, interest
 and BACC Expenses, and Borrower shall have fully and irrevocably waived all
 objections to such statements and the contents thereof unless, within thirty
 (30) days after receipt, Borrower shall deliver to BACC, by registered,
 certified or overnight mail as set forth in Section 12 hereof, written
 objection to such statement specifying the error or errors, if any, contained
 therein.

                                      -8-
<PAGE>

      3.      TERM

            3.1 Term and Renewal Date. This Agreement shall become effective
 upon execution by BACC and continue in full force through the Initial Term and
 from year to year thereafter (a "Renewal Term") if BACC, at its option, in
 writing agrees to extend the Term for one (1) year from the then Termination
 Date, provided that Borrower has not exercised its termination right in
 accordance with this Section 3.1. Borrower may terminate the Term on the then
 Termination Date by giving BACC at least sixty (60) days prior written notice
 by registered or certified mail, return receipt requested. In addition, BACC
 shall have the right to terminate this Agreement immediately at any time upon
 the occurrence of an Event of Default. No such termination shall relieve or
 discharge Borrower of its duties, Obligations and covenants hereunder until all
 Obligations have been paid and performed in full, and BACC's continuing
 security interest in the Collateral shall remain in effect until the
 Obligations have been fully and irrevocably paid and satisfied in cash or cash
 equivalent. On the Termination Date of this Agreement, the Obligations shall be
 immediately due and payable in full. Expressly in addition to all rights and
 remedies available to BACC, if the term of this Agreement is not renewed and
 the Obligations are not paid in full by the Termination Date, then Borrower
 shall also pay to BACC, as part of the Obligations, a fee of two percent (2%)
 of the then outstanding principal balance of the Obligations.

            3.2 Termination Fee. If the Term is terminated by BACC upon the
 occurrence of an Event of Default, or is terminated by Borrower except as
 provided in Section 3.1, in view of the impracticability and extreme difficulty
 of ascertaining actual damages and by mutual agreement of the parties as to a
 reasonable calculation of BACC's lost profits as a result thereof, in addition
 to payment of all principal, interest, fees, expenses and other Obligations,
 Borrower shall pay BACC upon the effective date of such termination a fee in an
 amount equal to: (a) three percent (3%) of the Advance Limit plus the then
 outstanding principal balance of any term loans or Advances other than under
 the Revolving Credit Facility, if such termination occurs on or prior to the
 first (1st) anniversary of the commencement date of the Initial Term; or (b)
 two percent (2%) of the Advance Limit plus the then outstanding principal
 balance of any term loans or Advances other than under the Revolving Credit
 Facility if such termination occurs after the first (1st) anniversary of the
 commencement date of the Initial Term and prior to the second (2nd) anniversary
 of the commencement date of the Initial Term. Such fee shall be presumed to be
 the amount of damages sustained by BACC as the result of termination and
 Borrower acknowledges that it is reasonable under the circumstances currently
 existing. The fee provided for in this Section 3.2 shall be deemed included in
 the Obligations.

      4.    CREATION OF CONTINUING SECURITY INTEREST

            4.1 Grant of Continuing Security Interest. Borrower hereby grants to
 BACC a continuing security interest in all presently existing and hereafter
 acquired or arising Collateral in order to secure prompt repayment of the
 Obligations and in order to secure prompt performance by Borrower of each and
 all of its covenants and Obligations under the Loan Documents and otherwise.
 BACC's continuing security interest in the Collateral shall attach to all
 Collateral without further act on the part of BACC or Borrower.

            4.2 Negotiable Collateral. In the event that any Collateral,
 including proceeds, is evidenced by or consists of Negotiable Collateral,
 Borrower shall notify BACC and upon the request of BACC, immediately endorse
 and assign such Negotiable Collateral to BACC and deliver physical possession
 of such Negotiable Collateral to BACC.

                                      -9-
<PAGE>

             4.3 Delivery of Additional Documentation Required. Borrower shall
 execute and deliver to BACC concurrently with Borrower's execution and delivery
 of this Agreement and at any time thereafter at the request of BACC, all
 security agreements, chattel mortgages, pledges, assignments, endorsements of
 certificates of title, applications for title, affidavits, reports, notices,
 schedules of accounts, letters of authority, and all other documents that BACC
 may request, in form satisfactory to BACC, to perfect and maintain perfected
 BACC's continuing security interests in the Collateral and in order to fully
 consummate all of the transactions contemplated under the Loan Documents, and
 Borrower hereby authorizes BACC to file and/or record such financing statements
 and other documents as BACC deems necessary to perfect and maintain BACC's
 continuing security interest in the Collateral, and agrees any such financing
 statement may contain an "all asset" or "all property" description of the
 Collateral, and Borrower hereby ratifies any such financing statement or other
 document heretofore filed by BACC.

            4.4 Power of Attorney. Borrower hereby irrevocably makes,
constitutes and appoints BACC (and any person designated by BACC) as Borrower's
true and lawful attorney-in-fact with power to sign the name of Borrower on any
of the above described documents or on any other similar documents to be
executed, recorded or filed in order to perfect or continue perfected BACC's
continuing security interest in the Collateral. In addition, Borrower hereby
appoints BACC (and any person designated by BACC) as Borrower's attorney-in-fact
with power to: (a) sign Borrower's name on verifications of Accounts and other
Collateral, and on notices to Account debtors; (b) send requests for
verification of Accounts and other Collateral; (c) endorse Borrower's name on
any checks, notes, acceptances, money orders, drafts or other forms of payment
or security that may come into BACC's possession; (d) notify the post office
authorities to change the address for delivery of Borrower's mail to an address
designated by BACC, to receive and open all mail addressed to Borrower, and to
retain all mail relating to the Collateral and forward all other mail to
Borrower; (e) make, settle and adjust all claims under Borrower's policies of
insurance, endorse the name of Borrower on any check, draft, instrument or other
item of payment for the proceeds of such policies of insurance and make all
determinations and decisions with respect to such policies of insurance. The
appointment of BACC as Borrower's attorney-in-fact and each and every one of
BACC's rights and powers, being coupled with an interest, is irrevocable so long
as any Accounts in which BACC has a continuing security interest remain unpaid
and until all of the Obligations have been fully repaid and performed.

            4.5 Right To Inspect. BACC shall have the right at any time or times
 hereafter during Borrower's usual business hours, or during the usual business
 hours of any third party having control over Borrower's Books, to inspect
 Borrower's Books in order to verify the amount or condition of, or any other
 matter relating to, the Collateral or Borrower's financial condition. BACC also
 shall have the right at any time or times hereafter during Borrower's usual
 business hours to inspect, examine and appraise the Inventory, the Equipment
 and other Collateral and to check and test the same as to quality, quantity,
 value and condition.

      5.    REPRESENTATIONS AND WARRANTIES AND COVENANTS

            Borrower represents and warrants to BACC, and covenants, the
following and acknowledges:

            5.1 No Prior Encumbrances; Security Interests. Borrower has good and
 marketable title to the Collateral, free and clear of liens, claims, security
 interests or encumbrances, except for the security interests to be satisfied
 from the proceeds of the first Advances hereunder, the continuing security
 interests granted to BACC by Borrower, and those disclosed on Schedule 5.1
 annexed hereto. Other than those expressly permitted by this Agreement,
 Borrower will not create or permit to be created any security interest, lien,
 pledge, mortgage or encumbrance on any Collateral or any of its other assets.

             5.2 Bona Fide Accounts. All Accounts reported to BACC as Eligible
 Accounts represent bona fide sales or leases of goods and/or services for which
 Borrower has an unconditional right to payment and as to which the goods have
 been delivered to the customer and/or the services rendered, as applicable.
 None of the Accounts reported to BACC as Eligible Accounts are subject to any
 rights of offset, counterclaim, cancellation or contractual rights of return.

             5.3 Merchantable Inventory. All Inventory is now and at all times
 hereafter shall be of good and merchantable quality, free from defects.

             5.4 Location of Inventory and Equipment. The Inventory and
 Equipment (except for specific items of Inventory while they remain subject to
 a Permitted Purchase Order Assistance Facility) is not now and shall not at any
 time or times hereafter be stored with a bailee, warehouseman, processor, or
 similar party other than those which are identified on the perfection
 certificate annexed hereto or as to which Borrower may from time to time have
 provided BACC with prior written notice. Borrower shall keep the Inventory and
 Equipment only at its address set forth on the first page hereof and at the
 locations set forth in the perfection certificate annexed hereto and other
 locations as to which Borrower has provided BACC with prior written notice of.
 If any of the Inventory and Equipment is located at a premises not owned by
 Borrower, Borrower shall cause the landlord of such premises, warehouseman, or
 other party having an interest in said premises, to execute and deliver to BACC
 a landlord waiver and subordination, warehouseman's acknowledgment, or similar
 agreement, satisfactory in form and substance to BACC.

                                      -10-
<PAGE>

             5.5 Inventory Records. Borrower now keeps and hereafter at all
 times shall keep correct and accurate records itemizing and describing the
 kind, type, quality and quantity of the Inventory and Borrower's cost of said
 items and none of Borrower's Inventory contains any labels, trademarks,
 trade-names or other identifying characteristics which are the properties of
 third parties.

             5.6 Retail Accounts. No Accounts arise from the sale of goods or
 rendition of services for personal, family or household purposes.

             5.7 Relocation of Chief Executive Office. The chief executive
 office of Borrower and the location of all books and records of Borrower
 relating to the Collateral is at the address indicated on the first page of
 this Agreement and Borrower will not, without thirty (30) days' prior written
 notice to BACC and compliance with Section 4.3 hereof, relocate such office.

             5.8 Due Organization and Qualification. Borrower is, and shall at
 all times hereafter, be a corporation or limited liability company, as
 applicable, duly organized and existing under the laws of the state of its
 incorporation or formation as applicable, as set forth on the first page
 hereof, and Borrower is, and shall at all times hereafter be, qualified and
 licensed to do business and is in good standing in any state in which the
 conduct of its business or its ownership of assets requires that it be so
 qualified. Borrower's organizational identification number as issued by the
 state in which it is incorporated or formed as applicable, is set forth in the
 perfection certificate annexed hereto.

             5.9 Actual and Fictitious Name. Borrower's exact name is set forth
 on the first page hereof and except as set forth in the perfection certificate
 annexed hereto Borrower has not changed its name within the last five (5)
 years. Borrower is conducting its business under the trade or fictitious
 name(s) set forth in the perfection certificate annexed hereto, and no others.
 Borrower has complied with the fictitious name laws of all jurisdictions in
 which compliance is required in connection with its use of such name(s).

             5.10 Permits and Licenses. Borrower holds all licenses, permits,
 franchises, approvals and consents required for the conduct of its business and
 the ownership and operation of its assets, and schedule 5.10 annexed hereto
 identifies all such license, approvals and the like held by Borrower.

             5.11 Due Authorization. Borrower has the right and power and is
 duly authorized to enter into the Loan Documents to which it is a party.

             5.12 Compliance with Organizational Documents. The execution by
 Borrower of the Loan Documents to which it is a party does not constitute a
 breach of any provision contained in Borrower's organizational documents,
 by-laws or operating agreement as applicable, nor does it constitute an event
 of default under any material agreement to which Borrower is now or may
 hereafter become a party.

            5.13 Litigation. Except as disclosed on Schedule 5.13 annexed hereto
there are no actions, proceedings or claims pending by or against Borrower,
whether or not before any court or administrative agency and Borrower has no
knowledge or notice of any pending, threatened or imminent litigation,
governmental investigations, or claims, complaints, actions, or prosecutions
involving Borrower, except for ongoing collection matters in which Borrower is
the plaintiff. If any such actions, proceedings or claims presently exist or
arise during the Term, Borrower shall promptly notify BACC in writing and shall,
from time to time, notify BACC of all material events relating thereto.

                                      -11-
<PAGE>

             5.14 Accuracy of Information and No Material Adverse Change in
 Financial Statements. All information furnished by Borrower to BACC, and all
 statements made by Borrower to BACC, including, without limitation, information
 set forth in any loan application, client profile, and in the annexed
 perfection certificate, are true, accurate and complete in all respects and do
 not contain any misstatement of fact or omit to state any facts necessary to
 make the statements or information contained therein not misleading. All
 financial statements relating to Borrower which have been or may hereafter be
 delivered to BACC (i) have been prepared in accordance with GAAP; (ii) fairly
 present Borrower's financial condition as of the date thereof and Borrower's
 results of operations for the period then ended; and (iii) disclose all
 contingent obligations of Borrower. In addition no material adverse change in
 the financial condition of Borrower has occurred since the date of the most
 recent of such financial statements.

             5.15     [this section intentionally left blank].

             5.16 ERISA. Neither Borrower or any ERISA Affiliate, nor any Plan
 is or has been in violation of any of the provisions of ERISA, any of the
 qualification requirements of IRC Section 401(a), or any of the published
 interpretations thereof. No lien upon the assets of Borrower has arisen with
 respect to any Plan. No prohibited transaction within the meaning of ERISA
 Section 406 or IRC Section 4975(c) has occurred with respect to any Plan.
 Neither Borrower nor any ERISA Affiliate has incurred any withdrawal liability
 with respect to any Multiemployer Plan. Borrower and each ERISA Affiliate have
 made all contributions required to be made by them to any Plan or Multiemployer
 Plan when due. There is no accumulated funding deficiency in any Plan, whether
 or not waived.

             5.17 Environmental Laws and Hazardous Materials. Borrower has
 complied, and at all times through the Term will comply, with all Environmental
 Laws. Borrower has not and will not cause or permit any Hazardous Materials to
 be located, incorporated, generated, stored, manufactured, transported to or
 from, released, disposed of, or used at, upon, under, or within any premises at
 which Borrower conducts its business, or in connection with Borrower's
 business. To the best of Borrower's knowledge, no prior owner or operator of
 any premises at which Borrower conducts its business has caused or permitted
 any of the above to occur at, upon, under, or within any of the premises.
 Borrower will not permit any lien to be filed against the Collateral or any
 part thereof under any Environmental Law, and will promptly notify BACC of any
 proceeding, inquiry or claim relating to any alleged violation of any
 Environmental Law, or any alleged loss, damage or injury resulting from any
 Hazardous Material. BACC shall have the right to join and participate in, as a
 party if it so elects, any legal or administrative proceeding initiated with
 respect to any Hazardous Material or in connection with any Environmental Law.
 "Hazardous Material" includes without limitation any substance, material,
 emission, or waste which is or hereafter becomes regulated or classified as a
 hazardous substance, hazardous material, toxic substance or solid waste under
 any Environmental Law, asbestos, petroleum products, urea formaldehyde,
 polychlorinated biphenyls (PCBs), radon, and any other hazardous or toxic
 substance, material, emission or waste. Environmental Law means the
 Comprehensive Environmental Response, Compensation, and Liability Act of 1980,
 as amended, the Resource Conservation and Recovery Act of 1976, the Hazardous
 Materials Transportation Act, the Toxic Substances Control Act, the regulations
 pertaining to such statutes, and any other safety, health or environmental
 statutes, laws, regulations or ordinances of the United States or of any state,
 county or municipality in which Borrower conducts its business or the
 Collateral is located.

            5.18 Tax Compliance. Borrower has filed all tax returns required to
be filed by it and has paid all taxes due and payable on said returns and on any
assessment made against it or its assets.

             5.19 Reliance by BACC; Cumulative. Each warranty, representation
 and agreement contained in this Agreement shall be automatically deemed
 repeated by Borrower with each request for an Advance and shall be conclusively
 presumed to have been relied on by BACC regardless of any investigation made or
 information possessed by BACC. The warranties, representations and agreements
 set forth herein shall be cumulative and in addition to any and all other
 warranties, representations and agreements which Borrower shall now or
 hereafter give, or cause to be given, to BACC.

             5.20 Use of Proceeds. The proceeds of the initial Advance will be
 used by Borrower for the purposes set forth on Schedule 5.20 annexed hereto.
 Absent BACC's written consent to the contrary the proceeds of Advances after
 the initial Advance will be used by Borrower solely for working capital
 purposes.

                                      -12-
<PAGE>

             5.21 Motor Vehicles and Intellectual Property. The perfection
 certificate annexed hereto identifies all motor vehicles, patents, patent
 applications, copyrights, trademarks, trade-names and other intellectual
 property, registered or unregistered, owned by Borrower. Borrower will promptly
 notify BACC of all motor vehicles or intellectual property hereafter owned by
 Borrower, and the status of all patent applications and the issuance of
 patents, and all copyrights registrations, and in accordance with Section 4.3
 hereof, will cooperate with BACC in taking all actions required by BACC to have
 a perfected security interest or lien on such motor vehicles and intellectual
 property.

             5.22 Commercial Tort Claims. Borrower does not, as of the date
 hereof, have any Commercial Tort Claims against any third parties. If Borrower
 does hereafter have any such Commercial Tort Claims Borrower shall furnish BACC
 with prompt written notice thereof, and in accordance with Article 4 hereof,
 execute and deliver such supplemental documents and cooperate with BACC in
 taking all action required by BACC to have a perfected security interest or
 lien on such Commercial Tort Claims.

             5.23 Affiliation. DGI and DTD are each wholly owned by DAI. DAI is
 wholly owned by Drinks Americas Holding, Ltd., a Delaware corporation
 ("Holdings"). There are no other entities wholly or partially owned by any
 Borrower or Holdings other than the entities identified on Schedule 5.23
 annexed hereto (the "Affiliated Entities"). Each of the Affiliated Entities is
 an inactive entity in the sense it does not have any material assets and does
 not actively conduct business. If any time any of the Affiliated Entities, or
 any other present or future entity wholly or partially owned by Borrower or
 Holdings is to become an active entity, Borrower will furnish BACC with at
 least ten (10) Business Days prior written notice thereof and, at the request
 of BACC cause such entities to execute and deliver to BACC a guaranty of all
 Obligations of Borrower to BACC, and to secure said guaranty, a first priority
 perfected security interest in all of said entities assets, pursuant to a
 guaranty and security interest, and supporting documents, each in form
 satisfactory to BACC, or at the option of BACC, cause said entities to enter
 into a joinder agreement, satisfactory in form to BACC, so as to become a
 borrower under this Agreement and the other Loan Documents.

             5.24 License Agreements. Schedule 3.9 to the annexed perfection
 certificate identifies all license agreements, distribution agreements, and the
 like, to which Borrower is a party, and true, accurate and complete copies of
 same have been delivered by Borrower to BACC. If Borrower hereafter enters into
 a license agreement, distribution agreement, or the like, with any third party,
 Borrower will promptly give BACC written notice thereof, and furnish to BACC a
 true, accurate, and complete copy of same.

      6.    AFFIRMATIVE COVENANTS

            Borrower covenants and acknowledges that during the Term Borrower
 shall comply with all of the following:

            6.1 Collateral and Other Reports. Borrower shall at least once a
 week and each time it requests an Advance under the Revolving Credit Facility,
 furnish to BACC a borrowing base report satisfactory in form and substance to
 BACC, and report to BACC all sales and Accounts arising since its most recent
 report to BACC and shall execute and deliver to BACC, no later than the
 fifteenth (15th) day of each month during the Term, a detailed aging of the
 Accounts, a reconciliation statement and a summary aging, by vendor, of all
 accounts payable of Borrower and any book overdraft. Borrower shall deliver to
 BACC, as BACC may from time to time require, collection reports, sales
 journals, invoices, original delivery receipts, customers' purchase orders,
 shipping instructions, bills of lading and other documentation respecting
 shipment arrangements, and other matters requested by BACC. Absent such a
 request by BACC, copies of all such documentation shall be held by Borrower as
 custodian for BACC. Borrower shall at all times provide BACC with all current
 "passwords" or similar access requirements relative to all computer systems
 available to Borrower with its Account debtors so as to enable BACC to have
 access to said computer systems so as to verify the status of Accounts owing to
 Borrower from said Account debtors. Any and all borrowing base reports, agings,
 etc. shall specify if any Inventory reported therein is Purchase Order Financed
 Inventory, or any Account report therein is a Purchaser Order Financed Account.
 Borrower will immediately report, in writing, all allowances programs or terms,
 discounts, and the like, provided to any customers of Borrower.

                                      -13-
<PAGE>

            6.2 Returns. Returns and allowances, if any, as between Borrower and
 any Account debtors, shall be permitted on the same basis and in accordance
 with the usual customary practices of Borrower as they exist at the date of the
 execution and delivery of this Agreement. If at any time prior to the
 occurrence of an Event of Default any Account debtor returns any Inventory to
 Borrower, Borrower shall promptly determine the reason for such return and, if
 Borrower accepts such return, issue a credit memorandum (with a copy to be sent
 to BACC) in the appropriate amount to such Account debtor. Borrower shall
 promptly notify BACC of all returns and recoveries and of all disputes and
 claims.

            6.3 Designation of Inventory. Borrower shall contemporaneous with
the execution hereof and from time to time hereafter, but not less frequently
than once every week, execute and deliver to BACC a designation of Inventory
specifying the cost and the wholesale market value of Borrower's raw materials,
work in process and finished goods, and further specifying such other
information as BACC may reasonably request. Borrower shall promptly, in writing,
notify BACC if any of Borrower's Inventory contains any labels, trademarks,
trade-names or other identifying characteristics which are the properties of
third parties.

             6.4 Financial Statements, Reports, Certificates. Borrower shall
 deliver to BACC: (a) as soon as available, but in any event within thirty (30)
 days after the end of each month during the Term, a balance sheet and profit
 and loss statement prepared by Borrower covering Borrower's operations during
 such period; and (b) as soon as available, but in any event within ninety (90)
 days after the end of each of Borrower's fiscal years, financial statements of
 Borrower for each such fiscal period, audited on an unqualified basis (other
 than a "going concern qualification"), by independent certified public
 accountants acceptable to BACC. Such financial statements shall include a
 balance sheet and profit and loss statement, and the accountants' management
 letter, if any, and shall be prepared in accordance with GAAP, and shall
 include consolidating schedules. Together with the above, Borrower shall also
 deliver Borrower's Form 10-Qs, 10-Ks or 8-Ks, if any, as soon as the same
 become available, and any other report reasonably requested by BACC relating to
 the Collateral and the financial condition of Borrower and a certificate signed
 by its chief financial officer to the effect that all reports, statements or
 computer prepared information of any kind or nature delivered or caused to be
 delivered to BACC under this Section 6.4 fairly present its financial condition
 and that there exists on the date of delivery of such certificate to BACC no
 condition or event which constitutes an Event of Default.

             6.5 Tax Returns, Receipts. Borrower shall deliver to BACC copies of
 each of its future federal income tax returns, and any amendments thereto,
 within thirty (30) days of the filing thereof. Borrower further shall promptly
 deliver to BACC, upon request, satisfactory evidence of Borrower's payment of
 all withholding and other taxes required to be paid by it.

             6.6 Guarantor Reports. Borrower agrees to cause each Guarantor to
 deliver to BACC (a) its annual financial statements as soon as available and in
 any event within ninety (90) days of each fiscal year end, and (b) copies of
 all federal and state income tax returns as soon as the same are available and
 in any event no later than thirty (30) days after the same are required to be
 filed by law.

             6.7 Title to Equipment. Upon BACC's request, Borrower shall
 immediately deliver to BACC, properly endorsed, any and all evidences of
 ownership of, certificates of title, or applications for title to any items of
 Equipment.

             6.8 Maintenance of Equipment. Borrower shall keep and maintain the
 Equipment in good operating condition and repair, and shall make all necessary
 replacements thereto so that its value and operating efficiency shall at all
 times be maintained and preserved. Borrower shall not permit any item of
 Equipment to become a fixture to real estate or an accession to other property,
 and the Equipment is now and shall at all times remain Borrower's personal
 property.

             6.9 Taxes. All Federal, state and local assessments and taxes,
 whether real, personal or otherwise, including, without limitation, excise
 taxes, due or payable by, or imposed, levied or assessed against Borrower or
 any of its assets or in connection with Borrower's business shall hereafter be
 paid in full, before they become delinquent or before the expiration of any
 extension period. Borrower shall make due and timely payment or deposit of all
 federal, state and local taxes, assessments or contributions required of it by
 law, and will execute and deliver to BACC, on demand, appropriate certificates
 attesting to the payment or deposit thereof.

                                      -14-
<PAGE>

             6.10 Insurance. Borrower, at its expense, shall keep and maintain
 insurance to protect the Collateral against all risk of loss covered under a
 Special property form (If any of the tangible Collateral is located in a flood
 zone, Borrower must also have flood insurance. Borrowers with Collateral in
 California must also insure against the peril of earthquakes.) The coverage
 shall be written on a replacement cost basis. The property limit(s) shall be no
 less than those necessary to satisfy the coinsurance requirement contained in
 the insurance policy. All policies of insurance covering business personal
 property and business income shall contain a Lender's Loss Payable endorsement
 in a form satisfactory to BACC. All policies insuring real property on which
 BACC has a mortgage or other lien shall contain a Mortgagee endorsement in form
 satisfactory to BACC. Either, or both, form(s) shall contain a waiver of
 warranties. All proceeds payable under such policies shall be payable to BACC
 and applied to the Obligations. Borrower shall cause to be delivered to BACC a
 properly executed Evidence of Property Insurance form along with a copy of the
 Lender's Loss Payable and/or Mortgagee endorsement(s) as applicable, in advance
 of the loan closing date and thereafter at least thirty (30) days prior to the
 expiration date(s) of the policy(ies). All Mortgagee and Lender's Loss Payable
 endorsements shall contain the following address for notification purposes, or
 such other address as BACC may, from time to time, notify Borrower:

            Business Alliance Capital Company
            214 Carnegie Center, Suite 302
            Princeton, New Jersey 08540
            Attn: Operations Department

            Borrower, at its expense, shall keep and maintain Commercial General
 Liability Coverage insuring against all risks relating to or arising from
 Borrower's ownership and use of the Collateral and its other assets, its
 products, and its operations. BACC, its directors, officers and employees shall
 be named as additional insureds for Commercial General Liability on Borrower's
 policy. Borrower shall cause to be delivered to BACC a properly executed
 Certificate of Insurance, containing the required additional insured wording,
 before the loan closing and thereafter at least thirty (30) days prior the
 expiration date of the policy. Along with the Certificate of Insurance,
 Borrower shall also deliver a copy of the General Liability endorsement whereby
 BACC, et. al., are added to the policy as additional insureds.

            All required policies shall be in such form, with such companies and
 in such amounts as may be satisfactory to BACC. All policies shall contain a 30
 day notice for cancellation or non-renewal. BACC reserves the right to change
 insurance specifications at any time.

             6.11 BACC Expenses. Borrower shall immediately and without demand
 reimburse BACC for all BACC Expenses and Borrower hereby authorizes the payment
 of such BACC Expenses.

             6.12 Compliance With Law. Borrower shall comply, in all material
 respects, with the requirements of all applicable laws, rules, regulations and
 orders of governmental authorities relating to Borrower and the conduct of its
 business.

             6.13 Accounting System. Borrower at all times hereafter shall
 maintain a standard and modern system of accounting in accordance with GAAP
 with ledger and account cards or computer tapes, disks, printouts and records
 pertaining to the Collateral containing such information as may from time to
 time be requested by BACC.

      7.    NEGATIVE COVENANTS

            Borrower covenants and acknowledges that during the Term Borrower
 shall not undertake any of the following:

                                      -15-
<PAGE>

            7.1 Extraordinary Transactions and Disposal of Assets. (A) Enter
 into any transaction not in the ordinary and usual course of its business as
 conducted on the date hereof, including but not limited to the sale, lease,
 disposal, movement, relocation or transfer, whether by sale or otherwise, of
 any its assets other than sales of Inventory in the ordinary and usual course
 of its business as presently conducted; (B) incur (i) any indebtedness for
 borrowed money or purchase money indebtedness except for (a) the existing
 indebtedness identified on Schedule 7.1 annexed hereto and (b) Permitted
 Indebtedness, or (ii) any other indebtedness outside the ordinary and usual
 course of its business as conducted on the date hereof, except for renewals or
 extensions of existing debts identified of schedule 7.1 annexed hereto;(C) make
 any advance or loan to any third party; or (D) grant a lien on any of its
 assets except (i) in favor of BACC, or (ii) the continuing security interests,
 if any, set forth on Schedule 5.1, or (iii) the liens in favor of a Purchase
 Order Assistance Provider under a Permitted Purchase Order Assistance Facility.

            7.2 Change Name, etc. Change its name, business structure,
 jurisdiction of incorporation or formation as applicable, or identity, or add
 any new fictitious name.

            7.3 Merge, Acquire. Merge, acquire, or consolidate with or into any
 other business organization.

            7.4 Guaranty. Guaranty or otherwise become in any way liable with
 respect to the obligations of any third party, except by endorsement of
 instruments or items of payment for deposit to the account of Borrower for
 negotiation and delivery to BACC.

            7.5 Restructure. Make any change in its financial structure or
 business operations.

            7.6 Prepayments. Prepay any existing indebtedness owing to any third
 party other than trade payables.

             7.7 Change of Ownership. (A) Cause, permit or suffer any change,
 direct or indirect, in the ownership of the capital stock or other equity
 interests of any Borrower or (B) cause, permit or suffer any change, direct or
 indirect, in the ownership of the capital stock or other equity interest of any
 entity that directly or indirectly owns the capital stock or equity interests
 in Borrower or its parent entities, including, without limitation, Holdings,
 such that there is a change of ownership of a controlling interest of such
 parent entities or Joseph Patrick Kenny ceases to be the chief executive
 officer of Borrower, or (B) enter into any agreement with any person or entity
 that provides for a payment to such person or entity based upon the income of
 Borrower.

             7.8 Compensation. Pay total compensation, including salaries,
 withdrawals, fees, bonuses, commissions, drawing accounts, management fees,
 consulting fees, or other payments, whether direct or indirect, in money or
 otherwise, during any fiscal year to its executives, officers, shareholders,
 affiliates, and directors (or any relatives of the foregoing) in an aggregate
 amount in excess of One Million Three Hundred Fifty Thousand Dollars
 ($1,350,000.00), except for the payment, when due, (without acceleration) of
 the consulting fees owing under the consulting agreement identified on Schedule
 7.8 annexed hereto.

             7.9 Loans and Advances. Make any loans, advances or extensions of
 credit to any officer, director, executive employee or shareholder of Borrower
 (or any relative of any of the foregoing), or to any entity which is a
 subsidiary of, related to, affiliated with or has common shareholders, officers
 or directors with Borrower.

             7.10 Capital Expenditures. Make any plant or fixed capital
 expenditure, or any commitment therefor, or purchase or lease any real or
 personal assets or replacement Equipment in excess of One Hundred Thousand
 Dollars ($100,000.00) for any individual transaction or where the aggregate
 amount of such transactions in any fiscal year exceeds Three Hundred Thousand
 Dollars ($300,000.00).

            7.11 Consignments of Inventory. Consign any Inventory to any third
party or obtain any Inventory on a consignment basis from any third party.

            7.12 Distributions. Make any distribution or declare or pay any
 dividends (in cash or in stock) on, or purchase, acquire, redeem or retire any
 of its capital stock or member interest, of any class, whether now or hereafter
 outstanding.

                                      -16-
<PAGE>

            7.13 Accounting Methods. Modify or change its method of accounting
 or enter into, modify or terminate any agreement presently existing or at any
 time hereafter entered into with any third party for the preparation or storage
 of Borrower's records of Accounts and financial condition without said party
 agreeing to provide BACC with information regarding the Collateral or
 Borrower's financial condition. Borrower waives the right to assert a
 confidential relationship, if any, it may have with any such third party in
 connection with any information requested by BACC hereunder, and agrees that
 BACC may contact any such party directly in order to obtain such information.

            7.14     Business Suspension.  Suspend or go out of business.

            7.15 Transactions with Affiliates. Borrower will not become a party
to any transaction with any affiliates of Borrower unless the terms and
conditions relating to such transaction are as favorable to Borrower as would be
obtainable at the time in a comparable arms-length transaction with a person
other than an affiliate.

            7.16 Purchase Order Assistance Facility. Obtain a Purchase Order
 Assistance Facility other than a Permitted Purchase Order Assistance Facility.

      8.     EVENTS OF DEFAULT

            The occurrence of any one or more of the following events shall
constitute an Event of Default by Borrower hereunder:

            8.1 Failure to Pay. Borrower's failure to pay when due and payable,
 or when declared due and payable, any portion of the Obligations (whether
 principal, interest, taxes, BACC Expenses, or otherwise);

            8.2 Failure to Perform. Borrower's or a Guarantor's failure to
 perform, keep or observe any term, provision, condition, representation,
 warranty, covenant or agreement contained in this Agreement, in any of the Loan
 Documents or in any other present or future agreement between Borrower, and/or
 a Guarantor and BACC;

            8.3 Misrepresentation. Any misstatement or misrepresentation now or
 hereafter exists in any warranty, representation, statement, aging or report
 made to BACC by, Borrower and/or a Guarantor or any officer, employee, agent or
 director thereof, or if any such warranty, representation, statement, aging or
 report is withdrawn by such person;

            8.4 Material Adverse Change. There is a material adverse change in
 Borrower's, or a Guarantor's, business or financial condition;

            8.5 Material Impairment. There is a material impairment of the
 prospect of repayment of the Obligations or a material impairment of BACC's
 continuing security interests in the Collateral;

            8.6 Levy or Attachment. Any material portion of Borrower's assets
 is attached, seized, subjected to a writ or distress warrant or is levied upon,
 or comes into the possession of any judicial officer or assignee;

            8.7 Insolvency by Borrower or Guarantor. An Insolvency Proceeding
 is commenced by Borrower or by a Guarantor;

            8.8 Insolvency Against Borrower or Guarantor. An Insolvency
 Proceeding is commenced against Borrower or a Guarantor;

            8.9 Injunction Against Borrower. Borrower is enjoined, restrained
 or in any way prevented by court order from continuing to conduct all or any
 material part of its business;

                                      -17-
<PAGE>

            8.10 Government Lien. A notice of lien, levy or assessment is filed
 of record with respect to any of Borrower's or a Guarantor's assets by the
 United States Government, or any department, agency or instrumentality thereof,
 or by any state, county, municipal or other governmental agency, or any taxes
 or debts owing at any time hereafter to any one or more of such entities
 becomes a lien, whether choate or otherwise, upon any of Borrower's or a
 Guarantor's assets and the same is not paid on the payment date thereof;

            8.11 Judgment. A judgment is entered against Borrower or a
 Guarantor;

            8.12 Default to Third Party. There is a default in any material
 agreement to which Borrower or a Guarantor is a party or by which binds
 Borrower or a Guarantor or any of their assets, including, without limitation,
 a default by a PO Financed Borrower under a Purchase Order Assistance Facility;

            8.13 Subordinated Debt Payments. Borrower makes any payment on
 account of indebtedness which has now or hereafter been subordinated to the
 Obligations, except to the extent such payment is allowed under any
 subordination agreement entered into with BACC;

            8.14 Termination of Guarantor. A Guarantor dies or terminates its
 guaranty;

            8.15 Change in Management. If Joseph Patrick Kenny ceases to be
 actively engaged as the chief executive officer of Borrower;

            8.16 ERISA Violation. A prohibited transaction within the meaning of
 ERISA Section 406 or IRC Section 1975(c) shall occur with respect to a Plan
 which could have a material adverse effect on the financial condition of
 Borrower; any lien upon the assets of Borrower in connection with any Plan
 shall arise; Borrower or any ERISA Affiliate shall completely or partially
 withdraw from a Multiemployer Plan and such withdrawal could, in the opinion of
 BACC, have a material adverse effect on the financial condition of Borrower.
 Borrower or any of its ERISA Affiliates shall fail to make full payment when
 due of all amounts which Borrower or any of its ERISA Affiliates may be
 required to pay to any Plan or any Multiemployer Plan as one or more
 contributions thereto; Borrower or any of its ERISA Affiliates creates or
 permits the creation of any accumulated funding deficiency, whether or not
 waived; the voluntary or involuntary termination of any Plan which termination
 could, in the opinion of BACC, have a material adverse effect on the financial
 condition of Borrower or Borrower shall fail to notify BACC promptly and in any
 event within ten (l0) days of the occurrence of an event which constitutes an
 Event of Default under this clause or would constitute an Event of Default upon
 the exercise of BACC's judgment; or

            8.17 Loss of License, etc. If any license, permit, distributor,
 franchise, license agreement, or similar agreement, necessary for the continued
 operation of Borrower's ordinary course of business is revoked, suspended or
 terminated.

            Notwithstanding anything contained in this Agreement to the
 contrary, BACC shall refrain from exercising its rights and remedies and an
 Event of Default shall not be deemed to have occurred by reason of the
 occurrence of any of the events set forth in Sections 8.6, 8.8, 8.10 or 8.11
 hereof if, within ten (10) days from the date thereof, the same is released,
 discharged, dismissed, bonded against or satisfied; provided, however, BACC
 shall not be obligated to make Advances to Borrower during such periods.

      9. BACC'S RIGHTS AND REMEDIES

            9.1 Rights and Remedies. Upon the occurrence of an Event of Default,
 BACC may, at its election, without notice of such election and without demand,
 do any one or more of the following:

                     (a) Declare all Obligations, whether evidenced by the Loan
 Documents or otherwise, immediately due and payable in full:

                                      -18-
<PAGE>

                     (b) Cease advancing money or extending credit to or for the
 benefit of Borrower under the Loan Documents or under any other agreement
 between Borrower and BACC;

                     (c) Terminate this Agreement as to any future liability or
 obligation of BACC, but without affecting BACC's rights and security interest
 in the Collateral and without affecting the Obligations;

                     (d) Settle or adjust disputes and claims directly with
 Account debtors for amounts and upon terms which BACC considers advisable and,
 in such cases, BACC will credit the Obligations with the net amounts received
 by BACC in payment of such disputed Accounts, after deducting all BACC
 Expenses;

                     (e) Cause Borrower to hold all returned Inventory in trust
 for BACC, segregate all returned Inventory from all other property of Borrower
 or in Borrower's possession and conspicuously label said returned Inventory as
 the property of BACC;

                     (f) Without notice to or demand upon Borrower or a
 Guarantor, make such payments and do such acts as BACC considers necessary or
 reasonable to protect its security interest in the Collateral. Borrower shall
 assemble the Collateral if BACC so requires and deliver or make the Collateral
 available to BACC at a place designated by BACC. Borrower authorizes BACC to
 enter any premises where the Collateral is located, to take and maintain
 possession of the Collateral, or any part of it, and to pay, purchase, contest
 or compromise any encumbrance, charge or lien on the Collateral which in BACC's
 determination appears to be prior or superior to its security interest or lien,
 and to pay all expenses incurred in connection therewith;

                     (g) Ship, reclaim, recover, store, finish, maintain,
 repair, prepare for sale, lease, license or other disposition, advertise for
 sale, lease, license or other disposition, and sell, lease, license or
 otherwise dispose (in the manner provided for herein or in the Code) the
 Collateral. BACC is hereby granted a license or other right to use, without
 charge, Borrower's labels, patents, copyrights, rights of use of any name,
 trade secrets, trade names, trademarks, service marks, and advertising matter,
 or any asset of a similar nature, pertaining to the Collateral, in completing
 the production of, advertising for sale, lease, license or other disposition,
 and sale, lease, license or other disposition of the Collateral. Borrower's
 rights under all licenses and all franchise agreements shall inure to BACC's
 benefit;

                     (h) Sell, lease, license or otherwise dispose of the
 Collateral at either a public or private proceeding, or both, by way of one or
 more contracts or transactions, for cash or on terms, in such manner and at
 such places (including Borrower's premises) as BACC determines is commercially
 reasonable. It is not necessary that the Collateral be present at any such
 sale;

                     (i) BACC shall give notice of the disposition of the
 Collateral as follows:

                        (1) To Borrower and each holder of a security interest
            in the Collateral who has filed with BACC a written request for
            notice, a notice in writing of the time and place of public sale or
            other disposition or, if the sale or other disposition is a private
            sale or some other disposition other than a public sale is to be
            made, then the time on or after which the private sale or other
            disposition is to be made;

                        (2) The notice hereunder shall be personally delivered
            or mailed, postage prepaid, to Borrower as provided in Section 12
            hereof, at least ten (10) calendar days before the date fixed for
            the sale or other disposition, or at least ten (10) calendar days
            before the date on or after which the private sale or other
            disposition is to be made, unless the Collateral is perishable or
            threatens to decline speedily in value. Notice to persons other than
            Borrower claiming an interest in the Collateral shall be sent to
            such addresses as they have furnished to BACC;

                     (j) BACC may credit bid and purchase at any public sale:

                     (k) Any deficiency that exists after disposition of the
 Collateral, as provided herein, shall be immediately paid by Borrower. Any
 excess will be remitted without interest by BACC to the party or parties
 legally entitled to such excess; and

                                      -19-
<PAGE>

                     (l) In addition to the foregoing, BACC shall have all
 rights and remedies provided by law (including those set forth in the Code) and
 any rights and remedies contained in any Loan Documents and all such rights and
 remedies shall be cumulative.

            9.2 No Waiver. No delay on the part of BACC in exercising any right,
 power or privilege under any Loan Document shall operate as a waiver, nor shall
 any single or partial exercise of any right, power or privilege under such Loan
 Documents or otherwise, preclude other or further exercise of any such right,
 power or privilege.

      10. TAXES AND EXPENSES REGARDING THE COLLATERAL.

             If Borrower fails to pay any monies (whether taxes, assessments,
insurance premiums or otherwise) due to third persons or entities, or fails to
make any deposits or furnish any required proof of payment or deposit, or fails
to perform any of Borrower's other covenants under any of the Loan Documents,
then in its discretion and without prior notice to Borrower, BACC may do any or
all of the following: (a) make any payment which Borrower has failed to pay or
any part thereof; (b) set up such reserves in Borrower's loan account as BACC
deems necessary to protect BACC from the exposure created by such failure; (c)
obtain and maintain insurance policies of the type described in Section 6.10
hereof and take any action with respect to such policies as BACC deems prudent;
or (d) take any other action deemed necessary to preserve and protect its
interests and rights under the Loan Documents. Any payments made by BACC shall
not constitute: (a) an agreement by BACC to make similar payments in the future
or (b) a waiver by BACC of any Event of Default. BACC need not inquire as to, or
contest the validity of, any such expense, tax, security interest, encumbrance
or lien and the receipt of notice for the payment thereof shall be conclusive
evidence that the same was validly due and owing.

      11.   WAIVERS

             11.1 Demand, Protest. Borrower waives demand, protest, notice of
protest, notice of default or dishonor, notice of payment and nonpayment, notice
of any default, notice of intention to accelerate, notice of acceleration, and
notice of nonpayment at maturity and acknowledges that BACC may compromise,
settle or release, without notice to Borrower, any Collateral and/or guaranties
at any time held by BACC. Borrower hereby consents to any extensions of time of
payment or partial payment at, before or after the Termination Date.

             11.2 No Marshaling. Borrower, on its own behalf and on behalf of
its successors and assigns hereby expressly waives all rights, if any, to
require a marshaling of assets by BACC or to require that BACC first resort to
some portion(s) of the Collateral before foreclosing upon, selling or otherwise
realizing on any other portion thereof.

             11.3 BACC's Non-Liability for Inventory or Equipment or for
Protection of Rights. So long as BACC complies with its obligations, if any,
under Section 9-207 of the Code, BACC shall not in any way or manner be liable
or responsible for: (a) the safekeeping of the Inventory or Equipment; (b) any
loss or damage thereto occurring or arising in any manner or fashion from any
cause; (c) any diminution in the value thereof; or (d) any act or default of any
carrier, warehouseman, bailee, forwarding agency or other person whomsoever. All
risk of loss, damage or destruction of the Inventory or Equipment shall be borne
by Borrower. BACC shall have no obligation to protect any rights of Borrower
against any person obligated on any Collateral

             11.4 Limitation of Damages. In any action or other proceeding
against BACC under this Agreement or relating to the transactions between BACC
and Borrower, Borrower waives the right to seek any consequential or punitive
damages.

                                      -20-
<PAGE>

       12.  NOTICES

            Unless otherwise provided herein, all consents, waivers, notices or
 demands by any party relating to the Loan Documents shall be in writing and
 (except for financial statements and other informational documents which may be
 sent by first-class mail, postage prepaid) shall be telecopied (followed up by
 a mailing), personally delivered or sent by registered or certified mail,
 postage prepaid, return receipt requested, or by receipted overnight delivery
 service to Borrower or to BACC, as the case may be, at their addresses set
 forth below

            If to Borrower:         Drinks Americas Inc.
                                    372 Danbury Road, Suite 163
                                    Wilton, CT 06897
                                    Attn: Joseph Patrick Kenny, CEO
                                    Fax #: (203) 762-8992

            If to BACC:             Business Alliance Capital Company
                                    214 Carnegie Center, Suite 302
                                    Princeton, New Jersey 08540
                                    Attn: General Counsel
                                    Fax #: (609) 514-1137

            Any party may change the address at which it is to receive notices
hereunder by notice in writing in the foregoing manner given to the other. All
notices or demands sent in accordance with this Section 12 shall be deemed
received on the earlier of the date of actual receipt or five (5) calendar days
after the deposit thereof in the mail or on the date telecommunicated if
telecopied.

       13.  DESTRUCTION OF BORROWER'S DOCUMENTS

            All documents, schedules, invoices, agings or other papers delivered
to BACC may be destroyed or otherwise disposed of by BACC four (4) months after
they are delivered to or received by BACC, unless Borrower requests, in writing,
the return of the said documents, schedules. invoices or other papers and makes
arrangements, at Borrower's expense, for their return.

       14.  GENERAL PROVISIONS

             14.1 Effectiveness. This Agreement shall be binding and deemed
 effective when executed by Borrower and executed and delivered by BACC.

             14.2 Successors and Assigns. This Agreement shall bind and inure to
 the benefit of the respective successors and assigns of each of the parties;
 provided, however, that Borrower may not assign this Agreement or any rights
 hereunder and any prohibited assignment shall be absolutely void. No consent to
 an assignment by BACC shall release Borrower from its Obligations. Without
 notice to or the consent of Borrower, BACC may assign this Agreement and its
 rights and duties hereunder and BACC reserves the right to sell, assign,
 transfer, negotiate or grant participations in all or any part of, or any
 interest in BACC's rights and benefits hereunder. In connection therewith, BACC
 may disclose all documents and information which BACC now or hereafter may have
 relating to Borrower or Borrower's business. Borrower hereby consents to, and
 authorizes BACC to, prepare and distribute a "tombstone", to issue a press
 release, or otherwise disseminate information to newspapers, trade journals,
 and other sources, describing the nature of, and closing of the credit
 facilities provided for herein, which may include Borrower's name as well as
 other general information about Borrower and the credit facilities. Borrower
 and BACC do not intend any of the benefits of the Loan Documents to inure to
 any third party, and no third party shall be a third party beneficiary hereof
 or thereof.

             14.3 Section Headings. Headings and numbers have been set forth
 herein for convenience only.

             14.4 Interpretation. Neither this Agreement nor any uncertainty or
 ambiguity herein shall be construed or resolved against BACC or Borrower,
 whether under any rule of construction or otherwise. On the contrary, this
 Agreement has been reviewed by each party and shall be construed and
 interpreted according to the ordinary meaning of the words used so as to fairly
 accomplish the purposes and intentions of the parties hereto.

                                      -21-
<PAGE>

             14.5 Severability of Provisions. Each provision of this Agreement
 shall be severable from every other provision of this Agreement for the purpose
 of determining the legal enforceability of such provision.

             14.6 Amendments in Writing. This Agreement cannot be changed or
 terminated orally. This Agreement supersedes all prior agreements,
 understandings and negotiations, if any, all of which are merged into this
 Agreement. THIS AGREEMENT, TOGETHER WITH THE OTHER LOAN DOCUMENTS, REPRESENTS
 THE FINAL AGREEMENT BETWEEN THE PARTIES REGARDING THE SUBJECT MATTER HEREIN AND
 THEREIN, AND MAY NOT BE CONTRADICTED BY EVIDENCE OF PRIOR, CONTEMPORANEOUS, OR
 SUBSEQUENT ORAL AGREEMENTS OF THE PARTIES HERETO. THERE ARE NO UNWRITTEN ORAL
 AGREEMENTS BETWEEN THE PARTIES.

             14.7 Counterparts and Facsimile Signatures. This Agreement may be
executed in any number of counterparts each of which, when executed and
delivered, shall be deemed to be an original and all of which, when taken
together, shall constitute but one and the same Agreement. Any signature to a
Loan Document delivered by a party via telecopy transmission or other electronic
means shall be deemed to be an original signature.

            14.8 Indemnification. Borrower hereby indemnifies, protects, defends
and saves harmless BACC and any member, officer, director, official, agent,
employee and attorney of BACC, and their respective heirs, successors and
assigns (collectively, the "Indemnified Parties"), from and against any and all
losses, damages, expenses or liabilities of any kind or nature and from any
suits, claims or demands, including reasonable counsel fees incurred in
investigating or defending such claim, suffered by any of them and caused by,
relating to, arising out of, resulting from, or in any way connected with the
Loan Documents and the transactions contemplated therein or the Collateral
(unless caused by the gross negligence or willful misconduct of the Indemnified
Parties) including, without limitation: (a) losses, damages, expenses or
liabilities sustained by BACC in connection with any environmental cleanup or
other remedy required or mandated by any Environmental Law; (b) any untrue
statement of a material fact contained in information submitted to BACC by
Borrower or a Guarantor or the omission of any material fact necessary to be
stated therein in order to make such statement not misleading or incomplete; (c)
the failure of Borrower or a Guarantor to perform any obligations required to be
performed by Borrower or a Guarantor under the Loan Documents; and (d) the
ownership, construction, occupancy, operations, use and maintenance of any of
Borrower's or a Guarantor's assets. The provisions of this paragraph 14.8 shall
survive termination of this Agreement and the other Loan Documents.

            14.9. Joint and Several Obligations; Dealings with Multiple
Borrowers. If more than one person or entity is named as Borrower hereunder, all
Obligations, representations, warranties, covenants and indemnities set forth in
the Loan Documents to which such person or entity is a party shall be joint and
several. BACC shall have the right to deal with any individual of any Borrower
with regard to all matters concerning the rights and obligations of BACC and
Borrower hereunder and pursuant to applicable law with regard to the
transactions contemplated under the Loan Documents. All actions or inactions of
the officers, managers, members and/or agents of any Borrower with regard to the
transactions contemplated under the Loan Documents shall be deemed with full
authority and binding upon all Borrowers hereunder. Each Borrower hereby
appoints each other Borrower as its true and lawful attorney-in-fact, with full
right and power, for purposes of exercising all rights of such person hereunder
and under applicable law with regard to the transactions contemplated under the
Loan Documents. The foregoing is a material inducement to the agreement of BACC
to enter into this Agreement and to consummate the transactions contemplated
hereby. The Borrowers represents they are operated as part of one consolidated
business entity and are directly dependent upon each other for and in connection
with their respective business activities and financial resources. Each Borrower
will receive a direct economic and financial benefit from the Obligations
incurred under this Agreement and the incurrence of such Obligations is in the
best interests of each Borrower.

                                      -22-
<PAGE>

      15.   CHOICE OF LAW, VENUE AND JURY TRIAL WAIVER

            THE VALIDITY OF THE LOAN DOCUMENTS, THEIR CONSTRUCTION,
INTERPRETATION, AND ENFORCEMENT AND THE RIGHTS OF THE PARTIES HERETO SHALL BE
DETERMINED UNDER, GOVERNED BY AND CONSTRUED IN ACCORDANCE WITH THE INTERNAL LAWS
OF THE STATE OF NEW JERSEY, WITHOUT REGARD TO PRINCIPLES OF CONFLICTS OF LAW.
THE PARTIES AGREE THAT ALL ACTIONS OR PROCEEDINGS ARISING IN CONNECTION WITH THE
LOAN DOCUMENTS SHALL BE TRIED AND LITIGATED ONLY IN THE STATE COURTS LOCATED IN
THE COUNTY OF MERCER, STATE OF NEW JERSEY, THE FEDERAL COURTS WHOSE VENUE
INCLUDES THE STATE OF NEW JERSEY, OR AT THE SOLE OPTION OF BACC, IN ANY OTHER
COURT IN WHICH BACC SHALL INITIATE LEGAL OR EQUITABLE PROCEEDINGS AND WHICH HAS
SUBJECT MATTER JURISDICTION OVER THE MATTER IN CONTROVERSY. BORROWER AND BACC
EACH WAIVES, TO THE EXTENT PERMITTED UNDER APPLICABLE LAW, THE RIGHT TO A TRIAL
BY JURY IN ANY PROCEEDING UNDER THE LOAN DOCUMENTS OR RELATING TO THE DEALINGS
OF BORROWER AND BACC AND ANY RIGHT EACH MAY HAVE TO ASSERT THE DOCTRINE OF
"FORUM NON CONVENIENS" OR TO OBJECT TO VENUE TO THE EXTENT ANY PROCEEDING IS
BROUGHT IN ACCORDANCE WITH THIS SECTION 15.

                                      -23-
<PAGE>

            Borrower and BACC have executed and delivered this Agreement at
BACC's place of business in Princeton, New Jersey as of the date first above
written.

                                    DRINKS AMERICAS INC.
                                    a Delaware corporation

                                    Signed by:
                                              --------------------------
                                    Print Name: J. Patrick Kenny
                                    Title/Capacity: President and CEO

                                    DRINKS GLOBAL IMPORTS, LLC
                                    a New York limited liability company

                                    Signed by:
                                              --------------------------
                                    Print Name: J. Patrick Kenny
                                    Title/Capacity: President and CEO

                                    D.T. DRINKS, LLC a New York limited
                                    liability company

                                    Signed by:
                                              --------------------------
                                    Print Name: J. Patrick Kenny
                                    Title/Capacity: President and CEO

                                    BUSINESS ALLIANCE CAPITAL COMPANY
                                    Division of Sovereign Bank, a federal
                                    savings bank

                                    Signed by:
                                              --------------------------------
                                    Print Name:
                                                ------------------------------
                                    Title/Capacity:
                                                   ---------------------------

                                      -24-
<PAGE>

                                  Schedule 2.3

                    Deposit Account of Borrower for Advances

                        Account # ______________________

                        Bank Name, address, and Wire Transfer Instructions:

                        _________________________________

                        _________________________________

                        _________________________________

                     ABA # ________________________________

<PAGE>

                                  Schedule 5.1

                      EXISTING LIENS WHICH ARE TO CONTINUE

Liens on substantially all assets of Borrower in favor of Nexcomm International
Beverage, LLC, and Kenneth H. Close, which liens are to be subordinate to the
liens in favor of BACC pursuant to an intercreditor agreement, satisfactory in
form and substance, to BACC.

Liens on assets of DAI and DTD in favor of Production Finance International, LLC
provided the liens on the assets of DAI are subordinate to the liens in favor of
BACC, and on the assets of DTD will be released on conditions satisfactory to
BACC, all pursuant to an intercreditor agreement satisfactory in form and
substance to BACC.

                                      -25-
<PAGE>

                                  Schedule 5.10
                              Licenses and permits

                              See schedule annexed

                                  Schedule 5.20

                       USE OF PROCEEDS OF INITIAL ADVANCE

Satisfaction in full of all obligations of Borrower to Platinum Funding Corp.
Payment of the Closing Fee due to BACC and other closing costs.

                                      -26-

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