Legal Question in Real Estate Law in Illinois

Broken lease - Responsible for remainder of option fee?

We recently broke a 2 yr. lease w/option just shy of the 1 yr. mark. The contract was setup such that we owed $5000 at the beginning of the lease (which we paid) with an additional $5000 due at the beginning of the 2nd year. We believe we are not responsible for the additional $5000, the lessor believes otherwise and is threatening small claims court. Below is the excerpt from the contract. Where do we stand?

For and in consideration of the sum of Five Thousand and 00/100 Dollars ($5,000.00) payable upon execution of said Lease with Option to Purchase Real Estate and the additional sum of Five Thousand and 00/100 Dollars ($5,000.00) payable on June 25, 2009 (the �Option Fee/Security Deposit� to be paid as stipulated below) paid by Optionees to Optionors hereby give and grant unto the Optionees, their heirs, representatives and assigns, the right of purchasing, on or before: June 25, 2010 (the �Option Date�) the Property. In the event the Optionees fail to timely submit any rental payment or fails to pay any late fee incurred during the Lease term, the Optionors shall deduct the amount due and owing by the Optionees to the Optionors from the non-refundable Option Fee.

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