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satisfactory relations between the property owners and Gateway
under any management contracts * * * and to maintain sufficient
personnel to properly perform such functions”, and (4) use its
best efforts to secure management contracts satisfactory to
Gateway”. Exh. 348.
On January 1, 1982, MHM entered into a nearly identical
“Representation and Marketing Agreement” with Essex Partnership
(the MHM/Essex agreement) in connection with MHM’s management
contracts on the Allentown Hilton and the Madison Hotel. Exh.
349. Although Prudential had helped finance the latter two
hotels’ construction, Prudential apparently had no involvement in
awarding the Allentown Hilton and Madison Hotel management
contracts to MHM, as the two hotels were owned by third parties.
MHM was required to pay to Essex Partnership 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.
Exh. 349, exh. A.
An MHM employee testified that, in managing GHM, Connolly
was essentially a “one-man show”. A number of MHM’s management
personnel were instructed by MHM’s management to do whatever they
could to help Connolly with GHM’s operations. For instance, MHM
employees helped perform the financial and accounting services
that GHM required in connection with its Gateway and Midland
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