Re: Stefanidis Option

Would like to speak to you tomorrow if possible regarding Stefanidis option.

Issue is that the current draft of the agreement provides that before January 31, 2027, the option is exercisable only in certain defensive situations (e.g., death of Stefanidis, landlord attempting to terminate lease and similar instances).  The reason for this is that Stefanidis' lawyers are concerned that if we exercise option now and then attempt to allow Stefanidis the right to occupy, the landlord has unfettered discretion to refuse to allow Stefanidis to occupy and if we allow Stefanidis to occupy anyhow, then Landlord has a right to terminate lease, with the result that Stefanidis is left with no home.

 

If you are willing to accept the concept that we have no right to exercise now because our exercise could deprive Stefanidis of the ability to occupy the premises after we acquire the lease, I would like to add one revision to the option agreement to give us a little more protection and flexibility.  I want the right to exercise option at any time so long as we are willing to have Stefanidis exercise enfranchisement rights and pay for the same.  In that event, we will be able to acquire the freehold and would be able to allow Stefanidis to occupy, without having to worry about a landlord approving the occupancy.  If you have a few minutes I will relate to you Tristan Ward's explanation of the relationship between the length of the unexpired term of the leasehold and the price of exercising enfranchisement rights.  Anyway,  I figured that you would not want a long drawn out explanation in this e-mail. 

 

Let's talk tomorrow when you have a chance.  Thanks.

 

Hope the trip is going well.