H Group Holding, Inc. and Subsidiaries - Page 44

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          insurance for individual hotels, charging each hotel an allocated            
          portion of the cost.                                                         
               Prior to 1984, HIC’s senior vice president for development              
          reviewed management contracts because HIC did not have in-house              
          counsel.  For later years, when HIC had equity participation in a            
          hotel and/or Hyatt ’s money was at risk, HIC’s legal department              
          played an integral role in the legal aspects of the transaction.             
          Legal counsel promoted the formation of separate corporations                
          within the Hyatt International group so that the risk of legal               
          liability would fall on individual hotels instead of the group.              
          The legal department tracked the registration of the Hyatt trade             
          names and marks in foreign jurisdictions, employing a U.S. law               
          firm, which in turn contracted with a foreign law firm to perform            
          the work.  The tracking was primarily for cost containment of                
          registration expenses.                                                       
               HIC’s chief financial officer was responsible for                       
          maintaining the financial accounting records of HIC and its U.S.             
          subsidiaries within the consolidated group.  He was also                     
          responsible for preparing consolidated financial statements for              
          use by HIC’s board and during the annual audit, preparing                    
          Federal and State tax returns and meeting other governmental                 
          filing requirements, and managing the annual certified audit                 
          process.  HIC’s staff internal auditor was sent to review books              
          and records of hotels and subsidiaries.                                      

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