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Management managed the Allentown Hilton and the Madison Hotel.
Although both were owned by third parties, Prudential had helped
finance the construction of the two hotels. Essex's agreement
with Eulich-Management (the Eulich-Management/Essex agreement)
required Eulich-Management to pay to Essex 30 percent of its
management fees from the operation of the Madison Hotel and 43
percent of the fees from the operation of the Allentown Hilton.
The agreement with Gateway Corp. (the Gateway Corp./Essex
agreement) required Gateway Corp. to pay to Essex 75 percent of
Gateway Corp.'s management fees from the operations of the
Gateway Hotel and the Midland Hotel.
Employees of Eulich-Management performed record-keeping and
reporting services for Gateway Corp. A number of Eulich-
Management's personnel were instructed to do whatever they could
to help Connolly with Gateway Corp.'s operations. For instance,
Eulich-Management employees helped perform the financial and
accounting services that Gateway Corp. required in connection
with its Gateway and Midland hotel management contracts. In yet
another instance, a Eulich-Management employee helped Connolly
with union negotiations. Also, after Prudential awarded the
Midland, Texas, hotel's management contract to Gateway Corp.,
Eulich-Management's employees helped Connolly find an on-site
(...continued)
1982.
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