-82-
Weaver on the Embarcadero Hotel, but A.N. Pritzker sought to
assure Ballard that Hyatt Corp. did not pay finder’s fees on its
management contracts. Id.
In early 1975, a dispute arose between Weaver and Hyatt
Corp. with regard to the commission due to KWJ Corp. for 1974.
Friend informed Weaver that the Embarcadero Hotel did not
generate a net profit for 1974. Exh. 9101. Weaver wrote to
Friend and claimed that Hyatt Corp.’s revenue from the
Embarcadero Hotel for 1974 under its management contract with
Prudential was $612,201 and that KWJ Corp. was entitled to 10
percent of that amount. Id. A.N. Pritzker responded to Weaver
by letter and asserted that KWJ Corp.’s share of the fees would
have to be reduced by a share of Hyatt Corp.’s home office
expenses. Exh. 9102. Weaver wrote back to A.N. Pritzker
disagreeing with this approach. Exh. 9103.
During 1975, A.N. Pritzker brought the Hyatt/Weaver dispute
to Kanter’s attention and requested his advice. Kanter, Transcr.
at 3646-3650. During this period, Kanter and Weaver discussed
and negotiated Mr. Weaver’s sale of KWJ Corp. to Kanter’s
“client”, IRA. Following these negotiations, in his letter to
Kanter dated March 10, 1976, Mr. Weaver confirmed “our
understanding regarding my granting to your client a right
[option] to purchase all of the outstanding shares of stock of
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