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Since Ballard had negotiated the Houston Hyatt Hotel's
management contract, Knab (Ballard and Lisle's superior at
Prudential) directed Ballard to review and evaluate the terms of
the proposed management contracts to be considered for the San
Francisco Embarcadero Hotel.
Subsequently, representatives of the Embarcadero joint
venture participants met with Webb and Pritzker to obtain bids on
the Embarcadero Hotel's management contract. Ballard and Lisle,
as well as other Prudential employees, represented Prudential at
the meeting. For reasons not fully shown in the record,
representatives of Intercontinental Co. were not present at the
meeting, and Webb refused to submit a bid during the meeting
because he thought he had been promised the contract. Pritzker
offered to have Hyatt Corp. enter into a management contract for
the Embarcadero Hotel substantially similar to the Houston Hyatt
Hotel's management contract. At the meeting Hyatt Corp.
submitted the only bid, and the management contract was awarded
to Hyatt Corp.
Shortly after being awarded the contract, Hyatt Corp.
entered into an agreement with KWJ Corp., an S corporation solely
owned by Weaver. Under the written agreement dated February 25,
1971, Hyatt Corp. agreed to pay KWJ Corp. a commission generally
equal to 10 percent of Hyatt Corp.'s fees under the Embarcadero
Hotel management contract. The agreement acknowledged that "KWJ"
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