Exhibit 10.23
OPTION AGREEMENT
(Xxxxxx Xxxxxx / Hopfenspringer)
On October 23, 2002, Xxxxxx Powers, Ltd. ("Seller") and Xxx Hopfenspringer
and Xxxxxx Hopfenspringer ("Purchaser") entered into an Agreement for the
Purchase and Sale of Commercial Real Estate of certain property owned by Seller
along Powers Boulevard, in Colorado Springs, CO (the "Contract"). Colorado
Department of Transportation ("CDOT") has indicated there is a possibility that,
at some undetermined time in the future, it may construct a grade-separated
interchange at Powers and Xxxxxx Park Boulevard (the "Interchange") and if it
does so, CDOT would need to acquire some of the land Purchaser is buying from
Seller. If this occurs, it could negatively impact Purchaser's proposed business
on the site. In order to address these concerns, and in partial consideration
for Purchaser closing pursuant to the Contract, Seller hereby grants Purchaser
the exclusive option to purchase additional land from Seller (the "Option") on
the following terms:
1. Condition to Exercise. The Option Property may only be purchased if CDOT
acquires portions of Purchaser's land being sold by Seller, and such acquisition
has a material adverse impact on Purchaser's business in Purchaser's reasonable
opinion. Exercise of the Option must occur within 6 months after CDOT's notice
of intent to acquire Purchaser's lands and must be in writing, delivered to
Seller.
2. Property Subject to Option. The property subject to the Option is
generally depicted on Exhibit A hereto (the "Option Property"). However, the
parties acknowledge that CDOT has made no determination as to the configuration
of the proposed Interchange. Consequently, the parties will adjust the
configuration of the Option Property once CDOT has made a final determination of
the portion of Purchaser's property it will be acquiring so that Purchaser's
property will be functionally equivalent to its original configuration
(including maintaining parking ratios and access from the interior drives).
3. Price. The price for the Option Property will be the amount of
condemnation award Purchaser receives from CDOT for any property CDOT acquires,
and will be payable at the closing of the Option in cash.
4. Title. The Option Property will be conveyed to Purchaser subject only to
those matters which Purchaser's original property was subject to when it is
conveyed pursuant to the Contract. Seller, at its expense, will provide
Purchaser with a standard owner's title insurance policy. Real property taxes
for the Option Property will be pro-rated based on the most recent assessment
and mill levy.
5. Term of Option. This Option will automatically expire ten (10) years
after the "Effective Date," which is April 29, 2003, if not exercised by then.
However, if prior to that date, CDOT has appropriated funds for construction of
the Interchange, then Purchaser may elect to extend the Option for an additional
5 years by delivering written notice of such election to Seller prior to
expiration of the initial 5 year term.
6. Contract Closing. This Option is conditioned upon the purchase pursuant
to the Contract closing. If such closing has not occurred by May 21, 2003, then
this Option will automatically terminate and be of no further effect.
SELLER
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Xxxxxx Xxxxxx, Ltd.
By: Xxxxxx Capital Corporation,
General partner
By: /s/ Xxxxxx Xxxxx
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Xxxxxx Xxxxx
Secretary
PURCHASER
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/s/ Xxx Hopfenspringer
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Xxx Hopfenspringer
/s/ Xxxxxx Hopfenspringer
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Xxxxxx Hopfenspringer
Dated: 5-1-03
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