H Group Holding, Inc. and Subsidiaries - Page 43




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          manager at the Hyatt Regency Hong Kong, was also a vice president            
          for HIC; David Chan was controller at Hyatt Regency Hong Kong and            
          area controller for HHK; Bernd Chorengel was general manager at              
          Hyatt Regency Singapore at the same time that he was area                    
          director, and then senior vice president, for Southeast Asia at              
          HS.                                                                          
          IV.  HIC’s Role Within the Hyatt International Group                         
               An attempt was made to insulate the Hyatt International                 
          group from day-to-day hotel operations and from legal issues such            
          as guest complaints or injuries.  These matters were primarily               
          dealt with at the local hotel level by the general manager, the              
          owner’s representative, and/or the hotel’s counsel.  HIC rarely              
          became involved in these matters, although it was made aware of              
          significant developments by its master management subsidiaries               
          and/or the general managers.  “Slip-and-fall” personal injury                
          cases were handled at the hotel level and monitored by the                   
          relevant management subsidiary or HIC.  The management                       
          subsidiaries engaged their own legal counsel for employment                  
          matters.  HHK used Hong Kong lawyers for tax advice and legal                
          liability concerns.  The subsidiary companies, therefore, while              
          relying on local counsel, involved HIC whenever there was a                  
          question of exposure to liability for the subsidiary or the                  
          entire Hyatt International group.  HIC coordinated the purchase              
          of business liability and other types of hotel operating                     





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