LEASE AGREEMENT
The parties agree as follows:
Date of this Lease: January 1, 1998
Parties to this
Lease and Addresses: Landlord: Prospect Hill Associates
Address: c/o Xxxxxx Xxxxxxx
Xxxxx 00
Xxxx Xxxxxx, Xxx Xxxx 00000
You, the
Tenant: Ronnybrook Farm Dairy, Inc.
Xxxxxxxx Xxxx, Xxxxxxxxxx, Xxx Xxxx 00000
1. Term:
The term of this lease shall be ten years, beginning January 1, 1998 and
ending December 31, 2008 (the "Term"). Such term shall be renewable, at
the Tenant's election, for two additional 10-year terms (each a "Renewal
Term").
2. Premises Rented:
Building known as the dairy of the former DeLaval Research Farm on
Prospect Hill Road, Ancramdale, New York, including office space,
manufacturing plant, storage facilities, bathrooms and utility room all as
more particularly described on a sketch attached hereto and made a part
hereof as Exhibit "A". Tenant shall be entitled to make improvements on
the premises at its expense and will be responsible for maintaining the
premises and al improvements thereon.
3. Rent:
The yearly rent during the Term and any Renewal Term of this lease is as
follows:
1998.................................. $20,000
1999.................................. $35,000
2000.................................. $50,000
2001 through 2008 and
for each year during
any Renewal Term...................... $65,000
You, the Tenant, will pay 1/12th of the applicable yearly rent to the
Landlord on the first day of the Term hereof and on the first day of each
and every month thereafter of the Term and any Renewal Term. The parties
agree that the yearly rent may be
adjusted upward by a percentage which is equal to any percentage increase
of the U.S. Consumer Price Index.
4. Agreement to lease and pay rent:
Landlord leases the Premises to you, the Tenant, for the Term. You, the
Tenant, agree to pay the Rent and other charges as required in the Lease.
You, the Tenant, agree to do everything required of you in the Lease.
5. Default:
If you, the Tenant, fail to pay the Rent, or any part of the Rent when it
becomes due, the Landlord may xxx you for it, or re-enter the Premises, or
use any legal remedy.
6. Taxes, Utilities and Maintenance:
The Landlord agrees to pay all real estate taxes to be assessed on the
Premises during the Term (except for 1998 which shall be paid by the
Tenant) and any Renewal Term. The Tenant agrees to pay all utilities used
in connection with their use of the property.
Tenant shall be responsible for the maintenance of the buildings including
general repairs, painting of the structure as well as maintenance of the
heating system and plumbing fixtures.
7. End of the Term:
You, the Tenant, agree that, at the end of the Term or any Renewal Term,
as the case may be, you will surrender the Premises in as good condition
as now, except for ordinary wear and damage by the elements.
8. Successors:
Unless otherwise stated, the Lease is binding on all parties who lawfully
succeed to the rights or take the place of the Landlord or you, the
Tenant.
9. Changes:
This Lease can be changed only by an agreement in writing signed by the
parties to the Lease.
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10. Quiet Enjoyment:
Landlord agrees that if you, the Tenant, pay the rent and are not in
default under this Lease, you, the Tenant, may peaceably and quietly have,
hold and enjoy the premises for the Term and any Renewal Term of this
Lease.
11. Insurance:
Tenant agrees to maintain appropriate insurance:
a. covering potential loss of its personal property, and
b. liability insurance in such amounts as the Landlord may require.
12. Termination:
This Lease may be terminated earlier than as set forth by the Tenant, upon
sixty days notice, in writing, to the Landlord.
Signatures: The parties have signed this Lease as of the date at the top of the
first page.
LANDLORD
PROSPECT HILL ASSOCIATES, a Partnership
By: /s/ R. Xxxxxx Xxxxxxx
--------------------------
R. Xxxxxx Xxxxxxx, General Partner
TENANT
RONNYBROOK FARM DAIRY, INC.
By: /s/ Xxxxxxx X. Xxxxxxx
--------------------------
Xxxxxxx X. Xxxxxxx, President
WITNESS:
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