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The company holds an option to purchase the building in which it is located for $508,4. The option also permits the company to assume the

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The company holds an option to purchase the building in which it is located for $508,4. The option also permits the company to assume the unpaid balance on a low- interestrate loan on the building from the New England Regional Industrial Development Authority. The interest rate on this loan is adjusted annually and equals Bf] percent of the haul-t prime interest rate. The unpaid balance on the loan exceeds the option price and will result in a cash transfer to the company from the owner for the building at the time of transfer. The company exercised its option in Year 93 but the owner of the building refused to comply with the option provisions. The company sued the owner. The case has gone through the lower court system in Massachusetts and is currently under review by the Massachusetts Supreme Court. The company incurred legal costs totaling $8,45 through Year 11 and anticipates additional costs of approximately $45il in Year 12. The lower courts have mled in favor of the company's position on all of the major issues in the case. The company expects the Massachusetts Supreme Court to concur with the decisions of the lower courts when it renders its final decision in the spring of Tear 12. The company held discussion with two prospective tenants for the building's ll square feet that Massachusetts Stove Company does not use in its operations

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