-145-
Formby, Transcr. at 1499-1503; Exh. 4007.73 Although the power
of attorney apparently was prepared in December 1982, it was
executed “as of” January 1, 1982. Exh. 4007. Formby performed
accounting services for Essex Partnership, and he performed the
financial and accounting services that GHM required in connection
its hotel management contracts. Formby, Transcr. at 1500-1504,
1590-1591; Exh. 4009.
i. GHM’s and MHM’s Representation and Marketing Agreements
On January 1, 1982, Connolly executed on behalf of GHM an
agreement titled “Representation and Marketing Agreement” with
Essex Partnership (the GHM/Essex agreement) wherein GHM agreed to
pay to Essex Partnership 75 percent of its fees on GHM’s
management contracts on the Gateway Hilton and the Midland Hilton
Hotel.74 In return, Essex Partnership was to (1) “perform
liaison functions between Gateway and certain hotel owners in
connection with management contracts between such parties”, (2)
“perform liaison functions between Gateway and the owners of any
additional properties which it is instrumental in securing for
management by Gateway”, (3) “use its best efforts to maintain
73 Lexington Investment Co. owned a majority of Motor
Hotels Management Co. (MHM). Formby, Transcr. at 1599.
74 This document (Exh. 348) suggests the Midland Hilton
management contract was awarded to Connolly/GHM earlier than
January 1982.
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