Howard J. Kaplan and Brenda L. Kaplan, et al. - Page 12

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          agreed to perform the following work for TMC with respect to                
          KQC’s land that TMC was leasing from KQC:  (1) Install new                  
          concrete ramp at the main entrance; (2) modify the emergency exit           
          ramp; (3) remove all existing playground equipment except for the           
          swing set; (4) remove four feet of blacktop from the inside of              
          existing driveway and two feet from the outside of such driveway;           
          (5) remove debris and trees to enlarge area for bus turnaround              
          and parking and develop area with gravel stones; (6) install                
          chainlink fences with double gate; and (7) install chainlink                
          fence to subdivide existing playground with two regular standard            
          gates.  In return for completing the foregoing work, TMC agreed             
          to pay Stone Oak Construction $33,010.  On a date in 1997 not               
          disclosed by the record, Stone Oak Construction completed all of            
          the work that it agreed to perform under the May 15, 1997 con-              
          struction contract.                                                         
               On August 9, 1997, TMC applied to the U.S. Department of               
          Health and Human Services (HHS) for a grant (TMC’s grant applica-           
          tion) to make improvements to, inter alia, KQC’s land and 1958              
          school building that TMC was leasing from KQC.  TMC’s grant                 
          application requested $556,500 to make certain improvements to              
          such leased land and school building.  On or about September 30,            
          1997, HHS approved TMC’s grant application, including its request           
          for $556,500 to make certain improvements to KQC’s land and 1958            
          school building, and made, inter alia, a $556,500 grant to TMC              






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