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receive, in return for performance of sales and reservation
services and information services outside Japan, $200,000 per
year for the first 3 years and thereafter the greater of $200,000
per year or 10 percent of annual gross room revenue of non-
Japanese guests. After 3 years, the annual amount for services
was reduced to $100,000. In this amendment, Hyatt International,
S.A., assigned the rights to the agreement to HHK, as permitted
by the original agreement terms. In an October 1, 1984,
amendment, the fee for services was changed to a fixed fee of
Yen68,301,156 for the period September 15, 1983, to March 31,
1984, and the greater of $200,000 per year or 8 percent of annual
gross room revenue from nationals of countries other than Japan.
Here again the annual amount was reduced to $100,000 after March
31, 1984.
C. HESA Agreements
On October 24, 1979, in conjunction with the establishment
of HESA by VIS and HIC (Mexico), HESA and HHK entered into a
consultancy agreement under which HHK was to provide management
services and preopening support. HESA and HHK also entered into
an agreement for the use of the Hyatt names and marks and the
provision of chain services. HESA agreed to pay HHK an amount
equal to 75 percent of the management fees received, less
administrative expenses incurred in the supervision of hotel
operations. This agreement included a royalty of 2 percent of
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