-103-
Prudential of the Developers’ Fees and assigned profits (as
the case may be). [Exh. 221.]
In sum, the Frey/Zeus agreement provided that Frey would pay to
Zeus (1) the equivalent of 5 percent (20% x 25%) of development
fees earned on Prudential condominium conversion projects, and
(2) 20 percent of “assigned profits” on Prudential condominium
conversion projects excluding any management fees. The Frey/Zeus
agreement stated that the term “assigned profits” was intended to
cover all compensation paid to BJF, Inc., by Prudential under
certain condominium conversion consulting agreements (citing as
an example a BJF/Prudential consulting agreement on a project
known as Old Forge). Id.
The Frey/Zeus participation agreement formalized Frey’s and
Kanter’s prior oral agreement to share development fees and
extended that agreement to cover assigned profits on Prudential
projects.
Consistent with Frey’s oral agreement with Kanter, as
subsequently formalized in the Frey/THC agreement and the
Frey/Zeus agreement, BJF, Inc., remitted monthly, and later
quarterly, payments to Kanter during the period December 1981 to
late 1984, representing THC’s and Zeus’s shares of development
fees and assigned profits arising from condominium conversion
projects at Village of Kings Creek, Calais, Chatham, and
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