Document:

Mutual Release and Non-disparagement Agreement

    MUTUAL
      RELEASE AND NON-DISPARAGEMENT AGREEMENT

     

    I,
      Donald
      W. Wallace (“Executive”),
      in
      consideration of and subject to the performance by Lazy Days R.V. Center, Inc.,
      a Florida corporation (together with its subsidiaries, the “Company”),
      of
      its obligations under the Retirement Agreement dated as of the date hereof
      by
      and among Executive, Lazy Days’ R.V. Center Inc., LD Holdings Inc., and RV
      Acquisition Inc. (the “Retirement
      Agreement”),
      do
      hereby release and forever discharge as of the date hereof the Company and
      all
      present and former directors, officers, executives, employees, attorneys,
      agents, representatives, executives, successors and assigns of the Company
      and
      its direct or indirect owners, parents, affiliates and subsidiaries (and their
      directors, officers, executives, employees, attorneys, agents, representatives
      and executives) (collectively, the “Released
      Parties”)
      to the
      extent provided below.

     

    
      	(1)  	
              Except
                as provided in paragraph 2 below, I knowingly and voluntarily release
                and
                forever discharge the Released Parties from any and all claims,
                controversies, actions, causes of action, cross-claims, counter-claims,
                demands, debts, compensatory damages, liquidated damages, punitive
                or
                exemplary damages, other damages, claims for costs and attorneys’ fees, or
                liabilities of any nature whatsoever in law and in equity, both past
                and
                present (through the date hereof) and whether known or unknown, suspected,
                or claimed against any of the Released Parties which I, or any of
                my
                heirs, executors, administrators or assigns, may have, which arise
                out of
                or are connected with my engagement by, employment with or separation
                from
                the Company (including, but not limited to, any allegation, claim
                or
                violation, arising under: Title VII of the Civil Rights Act of 1964,
                as
                amended; the Civil Rights Act of 1991; the Age Discrimination in
                Employment Act of 1967, as amended (including the Older Workers Benefit
                Protection Act); the Equal Pay Act of 1963, as amended; the Americans
                with
                Disabilities Act of 1990; the Family and Medical Leave Act of 1993;
                the
                Civil Rights Act of 1866, as amended; the Worker Adjustment Retraining
                and
                Notification Act; the Employee Retirement Income Security Act of
                1974; any
                applicable Executive Order Programs; the Fair Labor Standards Act;
                or
                their state or local counterparts; or under any other federal, state
                or
                local civil or human rights law, or under any other local, state,
                or
                federal law, regulation or ordinance; or under any public policy,
                contract
                or tort, or under common law; or arising under any policies, practices
                or
                procedures of the Company; or any claim for wrongful discharge, breach
                of
                contract, infliction of emotional distress, defamation; or any claim
                for
                costs, fees, or other expenses, including attorneys’ fees incurred in
                these matters) (all of the foregoing collectively referred to herein
                as
                the “Claims”).

            

    

     

    
      	(2)  	
              I
                understand and agree that this Mutual Release And Non-Disparagement
                Agreement (“Release”)
                does not waive or release any rights or claims which arise after
                the date
                I execute this Release; claims for enforcement of Section C and E
                of the
                Retirement Agreement; claims for benefits under any employee benefit
                plan
                maintained by the Company; claims under Section 5(iv) of that certain
                Management Agreement dated as of May 14, 2004 among Bruckmann, Rosser,
                Sherrill & Co., L.L.C., RV Acquisition, Inc., LD Holdings, Inc. and
                the Company; claims for unemployment or worker’s compensation as provided
                by law; or actions or omissions by the Company prior to the date
                hereof
                that represent willful misconduct or fraud. To the best of my knowledge,
                I
                am not aware of any claims that I have under any employee benefit
                plan
                maintained by the Company other than in connection with my participation
                in the Company’s 401(K) plan and any claims I may have under the Company’s
                group health and disability insurance
                plans.

            

    

     

    
      	(3)  	
              I
                acknowledge and intend that this Release shall be effective as a
                bar and
                shall serve as a complete defense to each and every one of the Claims
                and
                that it shall be given full force and effect according to each and
                all of
                its express terms and provisions, including those relating to unknown
                and
                unsuspected Claims (notwithstanding any state statute that expressly
                limits the effectiveness of a release of unknown, unsuspected and
                unanticipated Claims), if any, as well as those relating to any other
                Claims hereinabove mentioned or
                implied.

            

    

     

    
      	(4)  	
              I
                represent that I have not made any assignment or transfer of any
                Claim. I
                agree that neither this Release, nor the furnishing of the consideration
                for this Release, shall be deemed or construed at any time to be
                an
                admission by the Company or any Released Party of any improper or
                unlawful
                conduct. I agree that this Release is confidential and agree not
                to
                disclose any information regarding the terms of this Release, except
                to my
                immediate family and any tax, legal or other counsel with whom I
                may
                consult regarding the meaning or effect hereof or as required by
                law, and
                I will instruct each of the foregoing not to disclose the same to
                anyone.

            

    

     

    
      	(5)  	
              Each
                provision of this Release shall be interpreted in such manner as
                to be
                effective and valid under applicable law and any provision of this
                Release
                held to be invalid, illegal or unenforceable in any respect shall
                be
                severable. This Release cannot be amended except in a writing duly
                executed by the Company and me.

            

    

     

    
      	(6)  	
              The
                Company (meaning, solely for this purpose, the Company’s directors and
                executive officers) will not, and will use its commercially reasonable
                efforts to cause the other Released Parties to not, disparage Executive
                or
                Executive’s performance or otherwise take any action which could
                reasonably be expected to adversely affect Executive’s personal or
                professional reputation. Similarly, Executive will not disparage
                the
                Released Parties or otherwise take any action which could reasonably
                be
                expected to adversely affect the personal or professional reputation
                of
                the Released Parties.

            

    

     

    
      	(7)  	
              The
                Company does hereby release and forever discharge as of the date
                hereof
                the Executive and his personal representatives and heirs, with respect
                to
                any action or omission by the Executive made in his capacity as employee,
                officer and director (and not in any other capacity, including, without
                limitation in the capacity as a “Seller” under and as defined in the Stock
                Purchase Agreement dated as of April 27, 2004 by and among the Company,
                RV
                Acquisition Inc. and certain other parties thereto, in the capacity
                as
                stockholder of RV Acquisition, Inc., in the capacity as beneficial
                owner
                of I-4 Land Holding Limited Company, and in the capacity as consignor
                under certain consignment agreements with the Company) which action
                or
                omission took place prior to the date hereof; provided
                that this release shall not be applicable to (i) such actions or
                omissions that represent willful misconduct or fraud other than any
                action
                or omission that was specifically approved by the board of directors,
                (ii) any rights or claims which arise after the date hereof,
                (iii) claims for enforcement of the Employment Agreement, and
                (iv) claims for enforcement of the Non-compete and Covenant
                Agreement.

            

    

     

    
      	(8)  	
              I
                acknowledge that I have entered into this Release freely and without
                coercion, that I have been advised by the Company to consult with
                counsel
                of my choice, that I have had adequate opportunity to so consult,
                and that
                I have been given all time periods required by law to consider this
                Agreement, including but not limited to the 21-day period required
                by the
                Age Discrimination in Employment Act of 1967, as amended. I further
                acknowledge that within the 7-day period following my execution of
                this
                Agreement (the “Revocation
                Period”)
                I shall have the unilateral right to revoke this Agreement. In order
                to be
                effective, notice of Executive’s revocation of this Agreement must be
                received by the Company on or before the last day of the Revocation
                Period.

            

    

     

    
      	(9)  	
              This
                Release shall be governed by the internal laws, and not the laws
                of
                conflicts, of the State of Florida.

            

    

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    I
      UNDERSTAND THAT I HAVE SEVEN (7) DAYS AFTER THE EXECUTION OF THIS RELEASE TO
      REVOKE IT AND THAT THIS RELEASE SHALL NOT BECOME EFFECTIVE OR ENFORCEABLE UNTIL
      THE REVOCATION PERIOD HAS EXPIRED.

     

    LAZY
      DAYS’ R.V. CENTER, INC.

    

    

    By: /s/
      John Horton

    Name:
      John Horton

    Title:
      Chief Executive Officer

     

    
      /s/
        Donald W. Wallace

      Donald
        W. WallaceEX-10.1

AGREEMENT AND GENERAL RELEASE

This Agreement and General Release (hereinafter, the “Agreement”) is made and entered into as
of the 31st day of March, 2007 by and between Steven J. Heyer, a resident of Georgia (hereinafter,
the “Executive”), and Starwood Hotels & Resorts Worldwide, Inc., a Maryland corporation
(hereinafter, the “Company”).

WHEREAS, Executive and the Company are parties to an agreement, dated September 20, 2004, (the
“Employment Agreement”), as amended on May 4, 2005, which sets forth the terms and conditions of
Executive’s employment as an employee with the Company as Chief Executive Officer;

WHEREAS, Executive will resign immediately from all of his positions with the Company;

WHEREAS, the Company and Executive have agreed upon and desire to confirm the arrangements
relating to Executive’s resignation from the employ of the Company as well as his resignation from
the Board of Directors of the Company and the parties wish to resolve and settle all claims between
Executive and the Company in accordance with, and in consideration of the terms and provisions set
forth herein;

NOW THEREFORE, it is hereby agreed, by and between the Company and Executive, for the good and
sufficient consideration set forth below, as follows:

	 	1.	 	RESIGNATION. Executive hereby irrevocably and voluntarily resigns his
employment with the Company and resigns his position as a Director of the Company.
Executive’s last day of employment with Company and the effective date of his resignation
from the Board of Directors shall be March 31, 2007 (hereinafter, the “Resignation Date”).
The Company and Executive both hereby agree to waive any and all notice requirements
contained in the Employment Agreement. Effective as of such date, Executive hereby
resigns from all officerships, directorships, trusteeships and other positions he holds,
in whole or in part, by virtue of his association with the Company and its subsidiaries,
affiliates or other related entities, and he shall execute and deliver such additional
documents or instruments, if any, as may be requested by the Company to confirm or
effectuate any such resignations.

	 	2.	 	TERMINATION OF EMPLOYMENT AGREEMENT. Except as provided for in this
Agreement, the Employment Agreement is terminated and superseded by this Agreement.

	 	3.	 	COMPENSATION; EQUITY INTERESTS.

	 	a.	 	The Company agrees to reimburse Executive for any unused vacation
days, as well as any business expenses pursuant to Sections 3.5(b) and (c) of his
Employment Agreement and incurred by him on or before the Resignation Date, to the
extent permitted under his Employment Agreement, and in accordance with the
Company’s policies and practices, upon submission by him of appropriate
documentation. Other than those amounts due and payable referenced in the
preceding sentence, Executive agrees that the following compensation represents
the sole and entire payment and compensation due or to become due to Executive in
connection with his employment and the termination thereof, and no further or
other payments, compensation, bonuses, vacation pay or benefits are or shall
become due or payable at any time by the Company, other than as provided in this
Agreement. In consideration for the execution by Executive of this Agreement, and
his compliance with the promises made herein, Executive and the Company agree as
follows:

	 	i.	 	BASE SALARY. The Company has paid
Executive $250,000, one quarter of his base salary at the current rate
of $1,000,000 per annum, less applicable withholding of taxes, for the
first quarter of 2007. Executive agrees that he has been paid all base
salary that is owed to him and the Company shall make no additional
payments of base salary to Executive.

	 	ii.	 	ANNUAL INCENTIVE PROGRAM; RESTRICTED STOCK
AWARDS; DEFERRED BONUS UNITS.

	 	1.	 	Executive shall be paid cash
incentive compensation for 2006 in the gross amount of $2,000,000
(less applicable withholding), payable within three (3) business
days after execution of this Agreement. This amount represents
Executive’s entire cash incentive compensation for 2006 pursuant
to Section 3.2(a) of the Employment Agreement. The Compensation
Committee of the Board of Directors has determined, pursuant to
Section 5.1(a) of the Annual Incentive Plan for Certain
Executives (the “Executive Plan”), as amended and restated as of
January 1, 2005, to defer 0% of such bonus payment (and therefore
no amount of such bonus is subject to Section 5.2 of the
Executive Plan).

	 	2.	 	Executive has received 65,236
restricted stock units under the 2004 Long-Term Incentive
Compensation Plan (“2004 LTICP”) which have vested prior to the
Resignation Date. Executive’s rights and obligations with
respect to such vested restricted stock units, including but not
limited to the exchange of such units for shares of Common Stock
of the Company, shall be governed by the 2004 LTICP.

	 	3.	 	Executive has been credited with a
total of 8,723 deferred units in a Deferred Unit Account
maintained pursuant to the Executive Plan, which have vested
prior to the Resignation Date. Executive’s rights and
obligations with respect to such vested deferred units including
payment in respect of such units pursuant to Section 5.3 of the
Executive Plan in shares of Company Stock, are governed by the
Executive Plan.

	 	4.	 	Notwithstanding any other agreement
to the contrary, all stock options granted under the 2004 LTICP
or otherwise, all unvested restricted stock units, all unvested
deferred bonus units, and all unpaid portions of the 2007 base
salary shall be forfeited.

	 	5.	 	All amounts deferred by Executive
pursuant to the Starwood Hotels & Resorts Worldwide, Inc.,
Deferred Compensation Plan (the “Deferred Compensation Plan”) or
pursuant to the Starwood Hotels & Resorts Worldwide, Inc. Savings
and Retirement Plan (the “Savings and Retirement Plan”), to the
extent applicable, shall be distributed in accordance with such
plan and the elections previously made by Executive with respect
thereto (including in a manner that will not subject such
distributions to any excise tax or additional payment pursuant to
409A).

	 	6.	 	Company shall not maintain, nor
shall it continue to pay the premiums on, the life insurance
policy maintained pursuant to Section 3.3 of the Employment
Agreement. The Company shall take all actions reasonably
requested by Executive necessary to transfer any and all rights
or interests it may have with respect to such policy as Executive
directs at no cost to Executive.

	 	7.	 	Executive’s participation, and if
applicable Executive’s dependent(s)’ coverage, under all employee
health benefit plans sponsored by the Company shall end as of
March 31, 2007, provided, however, that Executive shall receive
separate notification from the Company regarding Executive’s and
Executive’s dependent(s)’ right to continue participation in any
group health care benefit plan sponsored by the Company at
Executive’s and/or Executive’s dependent(s)’ own expense under
the Consolidated Omnibus Budget Reconciliation Act (“COBRA”)
subject to any applicable requirements for continuation of
coverage as set forth by COBRA.

	 	4.	 	RELEASES.

	 	a.	 	RELEASE OF COMPANY RELEASEES. Executive, on behalf of himself
and his heirs, executors, administrators, distributees and legatees, hereby agrees
not to sue the Company or any of its subsidiaries, affiliates or other related
entities (whether or not such entities are wholly owned) or any of the past,
present or future directors, officers, administrators, trustees, fiduciaries,
employees, agents or attorneys of the Company or any of such other entities, or
the predecessors, successors or assigns of any of them (hereinafter referred to as
the “Company Releasees”), and agrees to release and discharge, fully, finally and
forever, the Company Releasees from any and all claims, causes of action,
lawsuits, liabilities, debts, accounts, covenants, contracts, controversies,
agreements, promises, sums of money, damages, judgments and demands of any nature
whatsoever, in law or in equity, both known and unknown, asserted or not asserted,
foreseen or unforeseen, which Executive ever had or may presently have against any
of the Company Releasees arising from the beginning of time up to and including
the effective date of this Release, including, without limitation, all matters in
any way related to the Employment Agreement, Executive’s employment by the Company
and any of its subsidiaries, affiliates or other related entities, and the
cessation of Executive’s employment with the Company and any of its subsidiaries,
affiliates or other related entities, and including, without limitation, any and
all claims arising under the Civil Rights Act of 1964, as amended, the Civil
Rights Act of 1991, the Civil Rights Act of 1866, the Family and Medical Leave
Act, the Americans With Disabilities Act, the Employee Retirement Income Security
Act of 1974, the New York State Human Rights Law (Executive Law Art. 15, Sec. 290
et seq.) or any other federal, state, local or foreign statute, regulation,
ordinance or order, or pursuant to any common law doctrine; provided, however,
that nothing contained in this Release shall apply to, or release the Company
Releasees from any vested benefit pursuant to the Savings and Retirement Plan or
the Deferred Compensation Plan. Nothing contained in this Paragraph shall release
or discharge the Company Releasees from any rights Executive may have to
indemnification for any acts or omissions during his employment pursuant to
Section 7.11 of the Employment Agreement. Executive agrees that he has no present
or future right to employment with the Company or any of the other Company
Releasees and that he will not apply for or otherwise seek employment with any of
them. Executive expressly represents and warrants that he is the sole owner of the
actual and alleged claims, demands, rights, causes of action and other matters
that are released herein; that the same have not been transferred or assigned or
caused to be transferred or assigned to any other person, firm, corporation or
other legal entity; and that he has the full right and power to grant, execute and
deliver the general release, undertakings and agreements contained herein.
Notwithstanding anything herein to the contrary, the release in this Paragraph
shall not apply to any other claims of any kind which the Executive may have or
may in the future have by virtue of rights and covenants under this Agreement or
to any agreement made in connection herewith.

	 	b.	 	RELEASE OF EXECUTIVE. Subject to the accuracy of the
representations and warranties made by Executive herein, the Company Releasees
hereby release and forever discharge Executive from any and all claims arising out
of Executive’s exercise of any restricted stock awards or stock option grants
during his employment with the Company prior to the Resignation Date.
Notwithstanding anything herein to the contrary, the release in this Paragraph
shall not apply to any other claims of any kind which the Company may have or may
in the future have by virtue of rights and covenants under this Agreement or to
any agreement made in connection herewith.

	 	5.	 	RESTRICTIVE COVENANTS.

	 	a.	 	NO ACQUISITIONS, BENEFICIAL OWNERSHIP, MERGERS OR OTHER BUSINESS
COMBINATION. During the two-year period commencing from the Effective Date of
this Agreement, Executive will not, directly or indirectly (whether or not
pursuant to any legally binding agreement or commitment), (i) acquire, or offer to
acquire, beneficial ownership (as defined under Section 13D of the Securities
Exchange Act of 1934) of any equity securities of the Company, (ii) acquire, or
offer to acquire, beneficial ownership of any options or other rights to acquire
any equity securities of the Company (whether or not exercisable only after the
passage of time or the occurrence of an event), (iii) offer to enter into any
merger, business combination, sale of all or substantially all assets, or similar
transaction, involving the Company or any acquisition of voting control of the
Company (a “Restricted Transaction”), (iv) directly or indirectly participate in,
or cause the formation of, any group (as defined under Section 13D of the
Securities Exchange Act of 1934) which seeks to do any of the foregoing or (v)
propose, or publicly announce or otherwise disclose any request for permission or
any consent in respect of any of the foregoing. Nothing in this Agreement will
prevent or prohibit the acquisition, receipt or exchange by Executive of
beneficial ownership of any equity securities of the Company from the Company or
pursuant to existing contracts to which the Company or any of its subsidiaries,
affiliates or other related entities is a party.

	 	B.	 	NONCOMPETITION. Executive agrees that for a period of two
years from the Effective Date (the “Noncompetition Period”), Executive shall not
in any manner, directly or indirectly (whether as an officer, director, employee,
investor, consultant, or otherwise), engage or be engaged, or assist any other
person, firm, corporation or enterprise in engaging or being engaged, in any
business (a “Competing Business”) in which Executive was involved or had knowledge
was being conducted or planned by the Company or any of its subsidiaries, as of
the termination of Executive’s employment, in any geographic area in which the
Company or any of its subsidiaries is then conducting such business. Nothing in
this Paragraph shall prevent Executive from being employed as Chief Executive
Officer of an enterprise which is engaged in a Competing Business if (i) such
enterprise is a diversified business enterprise and the revenues derived by such
enterprise from the Competing Business do not exceed 25% of the Company’s gross
revenue for the calendar year immediately preceding termination of Executive’s
employment and (ii) such enterprise is not one of the following: Accor; Choice
Hotels International; Club Med; Expedia, Inc.; Fairmont Hotels & Resorts Inc.;
Four Seasons Hotels Inc.; Hilton Hotels Corporation; Hyatt Corporation; Ian
Schrager Company; Intercontinental Hotel Group; Kimpton Hotels & Restaurant Group,
Inc.; Mandarin Oriental; Marriott International, Inc.; Morgans Hotel Group Co.;
Sabre Holdings; Shangri-La Hotels & Resorts; TRT Holdings (owns Omni); or Wyndham
Worldwide Corporation.

	 	C.	 	NONSOLICITATION. Executive further agrees that during the
Noncompetition Period Executive shall not (i) in any manner, directly or
indirectly, assist, solicit, induce or encourage, or attempt to assist, solicit
induce, or encourage, any employee of the Company or any of its subsidiaries, to
terminate or abandon his or her employment for any purpose whatsoever; provided,
however, that this provision does not apply to Executive’s administrative
assistant in Atlanta, or (ii) in connection with any business to which the above
Paragraph 5(b) applies, call on, service, solicit or otherwise do business with
any customer of the Company or any of its subsidiaries.

	 	d.	 	Nothing in this Paragraph 5 shall prohibit Executive from being (i) a
stockholder in a mutual fund or a diversified investment company or (ii) an owner
of not more than one percent of the outstanding stock (at an original cost less
than $5,000,000) of any class of a corporation whose securities are publicly
traded, so long as Executive has no active participation in the business of such
corporation.

	 	6.	 	CONFIDENTIAL INFORMATION/RETURN OF COMPANY PROPERTY. Executive shall not, at
any time, make use of or disclose, directly or indirectly, any (i) trade secret or other
confidential or secret information of the Company or of any of its subsidiaries or (ii)
other technical, business, proprietary or financial information of the Company or of any
of its subsidiaries not available to the public generally or to the competitors of the
Company or to the competitors of any of its subsidiaries (“Confidential Information”),
except to the extent that such Confidential Information (a) becomes a matter of public
record or is published in a newspaper, magazine or other periodical or on electronic or
other media available to the general public, other than as a result of any act or omission
of Executive or (b) is required to be disclosed by any law, regulation or order of any
court or regulatory commission, department or agency, provided that Executive gives prompt
notice of such requirement to the Company to enable the Company to seek an appropriate
protective order. Promptly and in any event no later than April 3, 2007, Executive shall
surrender to the Company all records, memoranda, notes, plans, reports, computer tapes and
software and other documents and data which constitute Confidential Information which
Executive may then possess or have under Executive’s control (together with all copies
thereof). Executive agrees that with regards to the Apple computer owned by him
personally, to the extent it contains any Confidential Information or Company property,
Executive will allow the Company to have access to the Apple computer and to remove from
the Apple computer any such Confidential Information or Company property.

	 	7.	 	CONSENT TO JURISDICTION. The parties irrevocably agree that any action
arising out of or relating to this Agreement or any of the transactions contemplated
hereby must be filed in any state or federal court located in New York or Westchester
County and each party hereby irrevocably agrees that all claims in respect of such dispute
or any suit, action proceeding related thereto must be heard and determined only in such
courts, and service of process shall be deemed sufficient by (i) hand-delivery (with
receipt acknowledged) or (ii) e-mail as follows:

	 	 	 	 	 
	If intended for Executive:
	 	Steven J. Heyer

	 
	 	3565 Tuxedo Road, N.W.
	 
	 	Atlanta, GA  30305

	With copy to Executive’s attorney:
	 	Jeffrey L. Schulte, Esq.

	 
	 	Morris, Manning & Martin, LLP

	 
	 	3343 Peachtree Road, N.E.
	 
	 	Atlanta, Georgia 30326

	 
	 	jschulte@mmmlaw.com

If intended for the Company: Starwood Hotels & Resorts Worldwide, Inc.

Attn: Kenneth Siegel, Esq.

1111 Westchester Avenue

White Plains, New York 10604

kenneth.siegel@starwoodhotels.com

	 	 	 
	With a copy to the Company’s attorney:

	 	Jeffrey S. Klein, Esq.

Weil, Gotshal & Manges LLP,

767 Fifth Avenue

New York, New York 10153

jeffrey.klein@weil.com

Both parties hereby irrevocably waive, to the fullest extent permitted by applicable law,
any objection which such party may now or hereafter have to the laying of venue of any such
dispute brought in such court or any defense of inconvenient forum for the maintenance of
such dispute.

	 	8.	 	SPECIFIC PERFORMANCE. Both parties acknowledge and agree that the breach of
any provision contained in this Agreement (without giving effect to any materiality
qualifiers) by a party would cause irreparable damage to the other party (the
“Non-Breaching Party), and that the Non-Breaching Party will not have an adequate remedy
at law. Therefore, the obligations of both parties under this Agreement shall be
enforceable by a decree of specific performance issued by any court of competent
jurisdiction, and appropriate injunctive relief may be applied for and granted in
connection therewith. Such remedies shall, however, be cumulative and not exclusive and
shall be in addition to any other remedies which any party may have under this Agreement
or otherwise.

	 	9.	 	GOVERNING LAW. This Agreement shall be governed by and construed in
accordance with the laws of the State of New York applicable to contracts made and
performed in such state and without regard to the conflicts or choice of law provisions
thereof that would give rise to the application of the domestic substantive law of any
other jurisdiction.

	 	10.	 	HEADINGS. All sections, captions or titles in this Agreement are inserted
for convenience of reference only and shall not affect or be utilized in construing or
interpreting this Agreement.

	 	11.	 	ENTIRE AGREEMENT. This Agreement contains, and is intended to contain, a
complete statement of the entire agreement and understanding of the parties with respect
to the subject matter hereof, and supersedes all prior statements, representations,
discussions, agreements, draft agreements, and undertakings whether written or oral,
express or implied, of any and every nature with respect thereto. The parties agree and
affirm that the only consideration for the execution of this Agreement are the terms
stated herein and that there are no other promises or agreements of any kind which have
caused them to execute this agreements between them.

	 	12.	 	NO ADMISSION OF LIABILITY. Nothing contained in this Agreement and nothing
done in contemplation of or pursuant to this Agreement is intended to be nor shall it be
construed to be, an admission of liability or unlawful conduct by either party hereto, all
such liability being expressly denied.

	 	13.	 	COOPERATION. Upon reasonable prior request, Executive agrees to cooperate
with the Company Releasees in connection with any present or future litigation or
regulatory proceeding brought against the Company Releasees, to the extent the Company
deems Executive’s cooperation necessary. Such cooperation may include, but shall not be
limited to, meeting with the Company Releasees’ counsel and providing testimony if so
requested. The Company will reimburse Executive for pre-approved out-of-pocket expenses
incurred by Executive (including reasonable attorney’s fees, if appropriate) as a result
of such cooperation, provided that the Company shall not unreasonably withhold or delay
approval of such expenses. Any such cooperation and/or attendance at meetings shall be
scheduled at such dates and times as reasonably agreed by Executive and the Company, and
the Executive shall be entitled to receive a reasonable hourly or per diem amount for
Executive’s time.

	 	14.	 	NOTICES. Any notice, demand, request or communication of any kind required or
permitted hereunder shall be in writing and shall be deemed sufficiently served if sent by
(i) hand delivery (with receipt acknowledged), (ii) reputable overnight carrier, or (iii)
United States registered or certified mail, postage prepaid, return receipt requested to
the parties addressed to the individuals and addresses identified in Paragraph 7 or at
such other address as each may designate from time to time by notice to the other parties.
Any such notice, demand, request or communication shall be deemed to have been duly given
or served on the date of delivery, if delivered by hand, or on the date shown on the
return receipt or other evidence of delivery, if mailed or sent by overnight carrier.

	 	15.	 	LEGAL ADVICE. Executive acknowledges that he has had the opportunity to
receive, and has actually received, independent legal advice in this matter, and that he
is hereby voluntarily, knowingly and willfully waiving and/or foregoing certain legal
rights.

	 	16.	 	PRESS RELEASE. From the date of this Agreement and forward, the parties
agree that information concerning Executive’s employment and the cessation thereof will be
made in a manner consistent with the Press Release attached as Exhibit A.

	 	17.	 	ADDITIONAL ACKNOWLEDGEMENTS AND REPRESENTATIONS BY EXECUTIVE. Executive
acknowledges that: (a) he understands this Agreement; (b) he is not releasing any claims
that may arise after the date of this Agreement; (c) he is executing this Agreement in
exchange for consideration in addition to anything of value to which he is already
entitled; (d) he has been advised by Company to consult with counsel prior to executing
this Agreement, and he has consulted with and been represented by counsel; and (e) his
waiver of rights and claims is knowing and voluntary. Executive also warrants and
represents, that the representations, warranties and covenants made by Executive to
Merrill Lynch in the Client Representation Letter executed on November 14, 2006 (the
“November Letter”) were true and correct at such time. The Company warrants and
represents that, as of November 14, 2006, its Executive Officers had not made Executive
aware of any facts that would be inconsistent with representations, warranties, and
covenants made by Executive in the November Letter.

	 	18.	 	AMENDMENT. This Agreement cannot be amended, supplemented or modified, nor
may any provision hereof be waived, except by a written instrument executed by the
parties.

	 	19.	 	CONSTRUCTION. This Agreement is deemed to have been drafted jointly by the
parties to this Agreement. Any uncertainty or ambiguity shall not be construed for or
against any party based on attribution of drafting to any other party.

	 	20.	 	COUNTERPARTS. This Agreement may be executed in one or more counterparts,
each of which will be deemed to be an original copy of this Agreement and all of which,
when taken together, will be deemed to constitute one and the same agreement.

	 	21.	 	SIGNATORY AUTHORITY. Both of the parties represents, warrants and agrees
that it has the full right and authority to enter into this Agreement, and that the person
executing this Agreement on behalf of the Company has the full right and authority to
fully commit and bind the Company.

	 	 	 
	Starwood Hotels & Resorts Worldwide, Inc. Steven J. Heyer

	 
	 	 
	By: /s/ Bruce Duncan

	 	/s/ Steven J. Heyer
	 

	 	 
	Bruce Duncan

Chairman of the Board of Directors

	 	Steven J. Heyer

	 
	 	 
	Dated: April 1, 2007

	 	Dated: April 1, 2007
	 
	 	 

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LIST OF EXHIBITS

EXHIBIT A — PRESS RELEASE OF COMPANY

2

STEVE HEYER RESIGNS AS CEO OF STARWOOD HOTELS & RESORTS

Chairman Bruce Duncan Will Also Serve As Interim CEO While Search Is Conducted

Company Reaffirms Earnings Guidance

White Plains, NY, April 2, 2007 – The Board of Directors of Starwood Hotels & Resorts Worldwide,
Inc. (NYSE: HOT) announced today that Steven J. Heyer has resigned as Chief Executive Officer and a
director. Heyer, 54, had been CEO and a director since October 2004. Bruce W. Duncan, 55,
Starwood’s Chairman since 2005 and a director since 1995, will also serve as interim CEO while the
Board conducts a search for a permanent replacement.

Stephen R. Quazzo, Chairman of the Governance and Nominating Committee of the Starwood Board, said,
“While the Board appreciates the good work Steve Heyer has done to position Starwood for the
future, issues with regard to his management style have led us to lose confidence in his
leadership. Starwood today is performing well and has a strong market position, a winning
strategy, and significant growth potential. Given the Company’s deep management team and Bruce
Duncan’s willingness to serve as interim CEO on a full-time basis as long as he is needed, the
Board is confident Starwood’s performance will not miss a beat.”

Bruce Duncan said, “I know from serving as Chairman for the past two years and a Board member for
more than a decade that Starwood is pursuing the right strategy. We are currently in the middle of
a dynamic growth period, including expanding our footprint substantially around the globe.
Starwood has a strong market position, important owner and developer relationships, an excellent
management team, and talented employees. The Board is confident in Starwood’s prospects and
focused on continuing to build shareholder value. I will be based in White Plains and look forward
to leading Starwood as we execute its successful continuing transformation from a cyclical real
estate business into a leading global hotel operator and lifestyle company.”

Steven Heyer said, “I was asked to lead the Company through a complex transition and at the same
time create an exciting platform for future growth. I am proud of what we have accomplished in the
last 2-1/2 years and believe Bruce Duncan and the team will continue to execute Starwood’s strategy
with distinction. Starwood is performing extremely well and I am confident it will enjoy continued
success in the future.”

The Board of Directors has retained Spencer Stuart to assist in its search for a permanent CEO and
intends to thoroughly evaluate both internal and external candidates.

From 2002 through 2005, Bruce Duncan was President and CEO of Equity Residential, the largest
publicly traded apartment REIT with revenues of $2.1 billion and an enterprise value of over $20
billion. From 1995 to 2000, he was Chairman, President and CEO of Cadillac Fairview Corporation
where he led the post-bankruptcy turnaround of this major real estate company. Previously he spent
16 years at JMB, most recently as President and Co-CEO of JMB Institutional Realty Corporation.
Duncan holds an MBA degree in Finance from the University of Chicago and an AB degree in Economics
from Kenyon College.

Outlook

The Company reaffirms its guidance for the full year and first quarter of 2007, which was provided
in its 2006 earnings release on February 1, 2007. Starwood will announce its first quarter 2007
financial results on April 26, 2007.

Conference Call and Webcast

Starwood will conduct a conference call and webcast for the investment community today at 9:00 a.m.
ET to discuss today’s announcement. To participate, please dial (866) 710-0179 (within U.S.) or
(334) 323-9872 (outside U.S.) 15 minutes prior to the start of the call and enter conference ID
number 82311682. A playback of the conference call will be available through April 16, 2007. To
access the playback, please dial (877) 656-8905 (within U.S.) or (334) 323-9859 (outside U.S.) and
enter conference ID number 82311682.

The conference call will be available through simultaneous webcast in the Investor Relations/Press
Releases section of the Company’s website at .

About Starwood Hotels & Resorts Worldwide, Inc.®

Starwood Hotels & Resorts Worldwide, Inc. is one of the leading hotel and leisure companies in the
world with approximately 850 properties in more than 95 countries and 145,000 employees at its
owned and managed properties. Starwood® Hotels is a fully integrated owner, operator and franchisor
of hotels and resorts with the following internationally renowned brands: St. Regis®, The Luxury
Collection®, Sheraton®, Westin®, Four Points® by Sheraton, W®, Le Méridien® and the recently
announced AloftSM and ElementSM Hotels. Starwood Hotels also owns Starwood Vacation Ownership,
Inc., one of the premier developers and operators of high quality vacation interval ownership
resorts. For more information, please visit www.starwoodhotels.com/pressclub.

Note: This press release contains forward-looking statements within the meaning of federal
securities regulations. Forward-looking statements are not guarantees of future performance and
involve risks and uncertainties and other factors that may cause actual results to differ
materially from those anticipated at the time the forward-looking statements are made. Further
results, performance and achievements may be affected by general economic conditions including the
impact of war and terrorist activity, business and financing conditions, foreign exchange
fluctuations, cyclicality of the real estate (including residential) and the hotel and vacation
ownership businesses, operating risks associated with the hotel, vacation ownership and residential
businesses, relationships with associates and labor unions, customers and property owners, the
impact of the internet reservation channels, our reliance on technology, domestic and international
political and geopolitical conditions, competition, governmental and regulatory actions (including
the impact of changes in U.S. and foreign tax laws and their interpretation), travelers’ fears of
exposure to contagious diseases, risk associated with the level of our indebtedness, risk
associated with potential acquisitions and dispositions, and the introduction of new brand concepts
and other risks and uncertainties. These risks and uncertainties are presented in detail in our
filings with the Securities and Exchange Commission. Future vacation ownership units indicated in
this press release include planned units on land owned by the Company or by joint ventures in which
the Company has an interest that have received all major governmental land use approvals for the
development of vacation ownership resorts. There can be no assurance that such units will in fact
be developed and, if developed, the time period of such development (which may be more than several
years in the future). Some of the projects may require additional third-party approvals or permits
for development and build out and may also be subject to legal challenges as well as a commitment
of capital by the Company. The actual number of units to be constructed may be significantly lower
than the number of future units indicated. Although we believe the expectations reflected in such
forward-looking statements are based upon reasonable assumptions, we can give no assurance that our
expectations will be attained or that results will not materially differ. We undertake no
obligation to publicly update or revise any forward-looking statement, whether as a result of new
information, future events or otherwise.

# # #

INVESTOR RELATIONS CONTACT:

Jason Koval

(914) 640-4429

MEDIA CONTACTS:

K.C. Kavanagh

(914) 640-8339

George Sard/Stephanie Pillersdorf

Sard Verbinnen & Co

(212) 687-8080

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