H Group Holding, Inc. and Subsidiaries - Page 9

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               Generally, separate corporations were formed to execute                 
          and/or hold each management contract.  Some of the more                      
          significant purposes for forming separate entities were to limit             
          liability and take advantage of possible local tax benefits.  The            
          separate hotel management companies were usually made wholly                 
          owned subsidiaries of either HIC or HHK, and most were                       
          incorporated either in the country where the hotel was located or            
          in Hong Kong.  Generally, no consideration was paid when                     
          management contracts were assigned from a signing entity to a                
          hotel operating entity.  On one occasion, however, Hyatt of                  
          Singapore (HS) paid HIC $500,000 for the assignment of the                   
          management agreement for the operation of the Hyatt Regency                  
          Singapore.  In numerous instances, HIC guaranteed the performance            
          of the signing subsidiary.  HIC was involved in the development              
          of contract opportunities primarily in Central America, Europe,              
          Africa, and the Middle East, whereas HHK was active in the Asia-             
          Pacific area.  Ultimately, HHK evolved into a master hotel                   
          management subsidiary responsible for the entire Asia-Pacific                
               Hyatt International Canada Ltd. was established in August               
          1969, as HIC’s Canadian subsidiary, and three ground-up hotels               
          were opened, two of which closed by 1979, and the remaining hotel            
          was transferred in exchange for consideration to Hyatt Domestic              
          in 1984.                                                                     

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