The Rapids have exercised that option, according to the article on the site:
Klute looked pretty good for a youngster during Colorado's 2-0 win over the Dynamo, and Oscar Pareja reportedly liked having him around. (Of course, that was a win over Houston's backup squad but we take what we can get around here.)
If he has a breakout year filled with performances like the one he had against the Dynamo, he's likely to be bought outright for 2014. A nice, safe move for the Rapids to keep depth good.
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Matt Pollard 