RONNYBROOK FARM DAIRY, INC.
Prospect Hill Road
Ancramdale, New York 12403
February , 1998
Re: Letter of Intent
Dear Sirs:
This letter will confirm our intention to enter into an agreement whereby
Ronnybrook Farm Dairy, Inc. ("Ronnybrook") will purchase the raw milk produced
on your farm and will set forth our mutual understandings relating to such an
arrangement. As you know, Ronnybrook is very concerned about the quality of the
raw milk used in its products, and has approached you with the understanding
that your farm employs methods of production which insure that the milk you
produce is of the highest quality. We also understood that you currently sell
your entire production of raw milk to a dairy cooperative, and that the
cooperative may impose limitations on your sale of raw milk to other customers.
Ronnybrook intends to begin purchasing limited quantities of raw milk which will
not jeopardize your relationship with the cooperative, but hopes that it will
soon be in a position to purchase your farm's entire raw milk production. It is
understood that the approximate price to be paid per hundredweight of raw milk
is $ .
It is understood that this letter merely constitutes a statement of our
mutual understandings and intentions with respect to our purchase of your raw
milk. It does not contain all matters upon which agreement must be reached in
order for a definitive agreement to be entered into and, therefore, does not
constitute a binding commitment.
Please indicate your concurrence with this non-binding statement of mutual
intent by signing in the space provided below.
Very truly yours,
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Xxxxxxx X. Xxxxxxx,
Chief Executive Officer and President
Accepted:
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