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purchase option had been a gift to the University, which was
completed no later than July 26, 1991, Mr. Felman would not have
needed any contractual assurance as of August 1, 1991, that MHR
Properties’ St. Clair property interests had been canceled.
However, on the record before us, we have found, and we believe
that Mr. Felman (as well as the University) concluded, that the
July 22 document did not effect a cancellation of MHR Properties’
leasehold interest and MHR Properties’ purchase option as of July
26, 1991, the date on which petitioners signed that document, or
on any other date prior to August 1, 1991. That is why we
believe that when the University, Mr. Signom, and Mr. Felman
entered into the final property exchange agreement on August 1,
1991, that agreement (like the tentative property exchange
agreement) required Mr. Signom to secure the cancellation of
those property interests as part of the final exchange transac-
tion which closed on August 1, 1991. On the instant record, we
find that the cancellation of MHR Properties’ St. Clair property
interests was not separate from the final exchange transaction
that took place at the August 1 closing. We further find on that
record that that cancellation was effected as of August 1, 1991,
pursuant to the final property exchange agreement as an integral
part of that final exchange transaction.
We turn now to petitioners’ contention that they did not
expect to, were not entitled to, and did not receive any quid pro
quo from the University in return for the cancellation of MHR
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