-84-
In the meantime, correspondence from Hyatt Corp. to Weaver
shows that (1) Hyatt Corp. revised its Embarcadero Hotel
management contract with Prudential sometime in late 1975, (2) a
question arose whether KWJ Corp.’s commission would be computed
under the old Embarcadero Hotel management contract or the new
Embarcadero Hotel management contract, (3) Hyatt Corp. paid KWJ
Corp. $54,848 for 1976 and $60,739 for 1977,47 and (4) Weaver was
informed in 1978 that the Embarcadero Hotel’s performance was
improving and commission payments to KWJ Corp. would be
increasing. Exh. 364; Exh. 9103, at 12; Exh. 4003.
By letter dated September 27, 1979, Kanter informed Weaver
that IRA wanted to proceed with the purchase of KWJ Corp.,
effective retroactively to November 1, 1978. Exh. 365. In 1979,
IRA purchased 100 percent of KWJ Corp.’s outstanding shares of
stock from Mr. Weaver. Specifically, IRA issued to Weaver a
$150,000 promissory note which provided that Weaver was to be
paid $10,000 on or before November 30, 1979, and $140,000 (with
interest at 12 percent) on or before July 31, 1980. Exh. 9103,
at 29. On November 26, 1979, 4 days before IRA was obliged to
pay Weaver $10,000 in cash on the note, Grogan, on behalf of IRA,
47 Hyatt Corp.’s payments to KWJ Corp. normally were
remitted in the spring of the year immediately following the
contract year. Exh. 4003.
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