Sample Business Contracts

Vermont-Waterbury-Pilgrim Park Lease Agreement - Green Mountain Coffee Roasters Inc. and Pilgrim Partnership

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PO Box 447
Waterbury, Vermont 05676

July 30, 1997

Mr. Paul Comey
Green Mountain Coffee Roasters, Inc.
1 Coffee Lane
Waterbury, VT 05676

Dear Paul:

     Reference is made to the lease  agreement  between  Green  Mountain  Coffee
Roasters,  Inc.  ("GMCR") and Pilgrim  Partnership  ("Pilgrim")  dated April 28,
1993, as amended  August 16, 1993 (the "Base  Lease"),  and the two letters from
Pilgrim to GMCR dated April 11,  1997,  all related to the office  building  and
manufacturing facility and proposed addition thereto located, and to be located,
on 3.15 acres of land in the Pilgrim Park in the Village of Waterbury.

     The  purpose  of  this  letter  agreement  is  to  confirm  our  respective
understandings with respect to the Base Lease and amendments thereto represented
by the aforesaid April 11, 1997 letters.  Accordingly,  we confirm our agreement
as follows:

     1.   The Base Lease remains in full force and effect.
     2.   The term  "Property" in the Base Lease shall also include the .02 acre
          parcel  conveyed to Pilgrim by warranty deed of John S. Reynolds dated
          May 5, 1997 and  recorded in Book 151 Page 529 of the  Waterbury  Land
          Records,  and the 1 acre parcel  conveyed  to Pilgrim by the  warranty
          deed of Stephen  Van Esen dated May 7, 1997 and  recorded  in Book 151
          Page 542 of said Land Records.

     3.   The lease term of the Base Lease is extended to August 31, 2007.

     4.   As to the base rent under the Base Lease with  respect to the existing
          34,000 square feet of space,  the current  annual base rent per square
          foot of $6.30 remains in effect until August 31, 1999. On September 1,
          1999 the base rent shall  increase to $6.60 per square foot and remain
          at said increased rent until August 31, 2007.

     5.   Pilgrim  agrees to  construct  a 25,000  square  foot  addition to the
          existing  production  facility,  including parking, in accordance with
          the following  sets of plans and  specifications:  (a) set prepared by
          A&S Building Systems and date stamped by Lawes Consulting Engineers on
          July 3, 1997, Job Number 297-592,  consisting of 12 pages; and (b) set
          prepared by Lawes Consulting Engineers, Project N. 9711, consisting of
          11 pages. Said 25,000 square feet includes 25,000 square feet of space
          at ground level and 15,000  square feet of second floor space  thereby
          totaling  40,000 square feet of space for rent  calculation  purposes.
          Said addition shall be completed on our about  September 1, 1997 at an
          estimated cost to Pilgrim of $1,300,000.00. In the event that the cost
          exceeds said amount as the result of changes  requested  by GMCR,  the
          rent set forth in  paragraph  6 hereof  shall be  increased  by a rate
          equal to $.36 per square foot for each  $100,000.00  of increased cost
          up to a maximum increased cost of $250,000.00.
     6.   The base rent for the  addition  shall be  calculated  on the basis of
          40,000  square  feet of space and the lease term  therfor  [sic] shall
          commence on September 1, 1997.  Subject to any adjustment  required by
          paragraph  5, the annual rent per square  foot for the  addition is as

                    Year         Per Square Foot($)
                    ----         -----------------
                      1                4.50
                      2                4.75
                      3                5.00
                      4                5.25
                      5                5.50
                      6                5.75
                      7                6.00
                      8                6.25
                      9                6.50
                     10                6.60

     7.   All of the other terms and conditions of the Base Lease shall apply to
          the addition.

     Please  indicate your  acceptance of the aforesaid by signing and returning
to the  undersigned  the duplicate  copy of this letter.

Very truly yours,

Pilgrim Partnership

By  /s/ Stephen Van Esen
    General Partner

Accepted and agreed to this 30 day of July, 1997 

Green Mountain Coffee Roasters, Inc. 
By /s/ Paul Comey