Document:

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                                                                  Exhibit 10.43

             TENTH AMENDMENT TO CREDIT AGREEMENT AND MODIFICATION TO
                         PLEDGE AND SECURITY AGREEMENT

                  TENTH AMENDMENT TO CREDIT AGREEMENT AND MODIFICATION TO PLEDGE
AND SECURITY AGREEMENT (this "Amendment"), dated as of June 12, 2000, among
STARWOOD HOTELS & RESORTS, a Maryland real estate investment trust ("Starwood
REIT"), SLT REALTY LIMITED PARTNERSHIP, a Delaware limited partnership ("SLT
RLP"), STARWOOD HOTELS & RESORTS WORLDWIDE, INC., a Maryland corporation (the
"Corporation"), ITT CORPORATION, a Nevada corporation ("ITT" and, together with
Starwood REIT, SLT RLP and the Corporation, the "Original Borrowers"), the other
Credit Parties (as defined in the Credit Agreement referred to below), the
lenders from time to time party to the Credit Agreement referred to below (the
"Lenders"), BANKERS TRUST COMPANY and THE CHASE MANHATTAN BANK, as
Administrative Agents (in such capacity, the "Administrative Agents") and LEHMAN
COMMERCIAL PAPER INC. and BANK OF MONTREAL, as Syndication Agents (in such
capacity, the "Syndication Agents") and BANKERS TRUST COMPANY, as Collateral
Agent (in such capacity, the "Collateral Agent"). Unless otherwise defined
herein, all capitalized terms used herein shall have the respective meanings
provided such terms in the Credit Agreement referred to below.

                              W I T N E S S E T H:
                               - - - - - - - - - -

                  WHEREAS, the Original Borrowers, the Lenders, the
Administrative Agents and the Syndication Agents are parties to that certain
Credit Agreement, dated as of February 23, 1998 (as amended, modified or
supplemented to the date hereof, the "Credit Agreement");

                  WHEREAS, prior to the consummation of the CIGA Tender Offer
(as defined below), Sheraton International, Inc. ("Sheraton International"), a
Wholly-Owned Subsidiary of the Corporation, owned approximately seventy-three
percent (73%) of the ordinary shares (collectively, the "Ordinary Shares") of
CIGA Compagnia Italiana Grandi Alberghi S.p.A., an Italian company ("CIGA") and
forty-seven percent (47%) of the saving shares (collectively, the "Saving
Shares") of CIGA;

                  WHEREAS, Sheraton International has recently made and
completed a tender offer for all of the remaining Ordinary Shares and Saving
Shares of CIGA (the "CIGA Tender Offer") so that, after giving effect to the
consummation of the CIGA Tender Offer, Sheraton International owned over
ninety-nine percent (99%) of the Ordinary Shares of CIGA and over ninety-three
percent (93%) of the Saving Shares of CIGA;

                  WHEREAS, since the consummation of the CIGA Tender Offer,
Sheraton International has (i) converted the remaining issued and outstanding
Saving Shares of CIGA into Ordinary Shares of CIGA and (ii) exercised certain
"squeeze-out" rights by purchasing all of the then remaining issued and
outstanding Ordinary Shares, so that after giving effect to the consummation of
the matters described in this recital, Sheraton International now owns one
hundred percent (100%) of the Ordinary Shares of CIGA and there are no remaining
Saving
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Shares of CIGA (all of the foregoing, together with the CIGA Tender Offer,
referred to herein, collectively, as the "CIGA Stock Purchase Transaction");

                  WHEREAS, the Corporation and certain of its Subsidiaries also
desire to enter into a bridge loan facility with Credit Lyonnais, in its
individual capacity and as the arranging bank, and certain other lenders
(collectively, the "CIGA Lenders") which bridge loan shall be (i) in the
original principal amount of up to EUR 290,000,000 and (ii) incurred only to the
extent that such Indebtedness is permitted under Section 9.04(xii) of the Credit
Agreement and there is unused capacity in the Recourse Basket in said Section,
subject, however, to the limitations set forth in this Amendment and in said
Section 9.04(xii) (all of the foregoing, collectively, the "CIGA Bridge Loan");

                  WHEREAS, the CIGA Bridge Loan requires, among other things,
the following:

                      (i) that the Corporation create a new domestic special
purpose entity that is a direct Wholly-Owned Domestic Subsidiary of Sheraton
International (such special purpose entity being referred to as the "CIGA
Borrower"), which new entity will be the borrower under the CIGA Bridge Loan;

                      (ii) that prior to the consummation of the CIGA Bridge
Loan, Sheraton International shall contribute sixty-six percent (66%) of the
Ordinary Shares of CIGA to the CIGA Borrower, so that after giving effect to
such contribution (a) the CIGA Borrower shall own sixty-six percent (66%) of the
issued and outstanding Ordinary Shares of CIGA and (b) Sheraton International
shall continue to own no less than thirty-three percent (33%) of the issued and
outstanding Ordinary Shares of CIGA;

                      (iii) that the CIGA Borrower shall pledge to the CIGA
Lenders all of the CIGA Borrower's right, title and interest in and to the
Ordinary Shares of CIGA;

                      (iv) that Sheraton International shall not pledge all or
any portion of its right, title or interest in the remaining Ordinary Shares of
CIGA to the Collateral Agent for the benefit of the Secured Creditors or any
other Person;

                      (v) that the CIGA Borrower shall not be added as a
Guarantor under the Credit Agreement; and

                      (vi) that the Corporation and Starwood REIT shall jointly
and severally guaranty, on an unsecured basis, all of the obligations of the
CIGA Borrower under the CIGA Bridge Loan (all of the transactions described in
this and the following recital, together with the CIGA Stock Purchase
Transaction and the CIGA Bridge Loan, being collectively referred to herein as
the "CIGA Transactions");

                  WHEREAS, the Corporation and its Subsidiaries (i) incurred
certain Revolving Loans under the Credit Agreement in connection with the
consummation of the CIGA Tender Offer and the CIGA Stock Purchase Transaction,
and (ii) intend to cause the CIGA Borrower to advance, distribute, pay as a
Dividend, or loan to the Corporation and/or one or more of its Wholly-Owned
Domestic Subsidiaries the Net Proceeds of the CIGA Bridge Loan, so that the
Corporation may repay a portion of the then outstanding Revolving Loans;
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                  WHEREAS, in connection with the consummation of the CIGA
Transactions, the Corporation shall cause Sheraton International to pledge to
the Collateral Agent for the benefit of the Secured Creditors all of Sheraton
International's right, title and interest in the Capital Stock of the CIGA
Borrower;

                  WHEREAS, the Corporation and its Subsidiaries desire to modify
the phrase "senior notes" contained in the definition of "Permanent Senior
Notes" under the Credit Agreement in order to clarify that such phrase includes,
without limitation, other notes evidencing senior term loan facilities and other
similar types of senior Indebtedness incurred or issued by the Corporation but
only if any such Indebtedness otherwise satisfies the terms and provisions set
forth in the proviso of the definition of Permanent Senior Notes;

                  WHEREAS, the Corporation and its Subsidiaries desire to modify
certain requirements relating to the use of Net Proceeds of Permanent Senior
Notes incurred or issued by the Corporation or the Corporate Borrowers under
Section 9.04(viii) of the Credit Agreement, so that the Net Proceeds of such
Indebtedness shall not be required to repay the then outstanding Senior Secured
Bridge Notes;

                  WHEREAS, the Corporation and its Subsidiaries also desire (i)
to incur Indebtedness under Other Hedging Agreements which are non-speculative
in nature, entered into in the ordinary course of business and reasonably
necessary to hedge and protect against fluctuations in the Corporation's and its
Subsidiaries' cash flow and earnings from changes in financial markets and (ii)
to modify the definition of "Other Hedging Agreements" in order to clarify that
such definition includes, without limitation, instruments to hedge and protect
against fluctuations in the Corporation's and its Subsidiaries' cash flow and
earnings from changes in financial markets;

                  WHEREAS, the Corporation and its Subsidiaries desire (i) the
flexibility to create and incur Liens securing Indebtedness otherwise permitted
under Section 9.04(xii) of the Credit Agreement (but only to the extent of the
then unused capacity in the Recourse Basket) and (ii) to modify certain
restrictions contained in Section 9.04(iv) relating to the incurrence of
Capitalized Lease Obligations and Non-Recourse Indebtedness;

                  WHEREAS, the Corporation and its Subsidiaries desire the
ability from time to time (but prior to June 30, 2001) to increase the Tranche
II Term Loan Commitments by an aggregate amount up to $500 million, subject to
the terms and conditions set forth herein; and

                  WHEREAS, in connection with (i) the CIGA Transactions, (ii)
the Other Hedging Agreements, and (iii) the other matters described in the
preceding recitals, the Borrowers request certain modifications to provisions in
the Credit Agreement and the Credit Documents and certain waivers from
restrictions set forth in certain sections of the Credit Agreement and the
Credit Documents in order to permit the Corporation and its Subsidiaries to
enter into the CIGA Transactions, the Other Hedging Agreements and the other
matters described herein, and to consummate all of the other transactions
contemplated therein, in each case, subject to all of the terms and provisions
herein contained and only to the extent set forth below.
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                  NOW, THEREFORE, it is agreed:

                  I.       Waivers, Amendments and Agreements with Respect to
the Credit Agreement.

                  SECTION  1. CIGA Transactions.

                      (a) Consent. Notwithstanding anything to the contrary
contained in the Credit Agreement or the other Credit Documents, the Lenders
hereby consent to the Corporation and its Subsidiaries creating the CIGA
Borrower as a new domestic special purpose entity that is a direct Wholly-Owned
Domestic Subsidiary of Sheraton International and entering into and consummating
the CIGA Bridge Loan, the CIGA Stock Purchase Transactions and the other
transactions specifically required in order to consummate any of the foregoing,
in each case, (i) subject to the terms and provisions of this Amendment and (ii)
so long as no Specified Default and no Event of Default then exists; provided
that, with respect to the CIGA Bridge Loan, the CIGA Bridge Loan shall be repaid
in full on or prior to June 30, 2002.

                      (b) CIGA Borrower Not Required as Guarantor; Pledge and
Security Agreement Collateral; Sections 8.13, 8.15, 9.16(b). Notwithstanding
anything to the contrary contained in the Credit Agreement or the other Credit
Documents (including without limitation, Sections 8.13, 8.15 and 9.16(b) of the
Credit Agreement), the Corporation and its Subsidiaries shall be permitted to do
the following, subject to the limitations set forth herein:

                              (i) the CIGA Borrower shall not be required to
pledge any of its right, title or interest in the Ordinary Shares of CIGA to the
Collateral Agent for the benefit of the Secured Creditors and may instead pledge
up to sixty-six percent (66%) of such Ordinary Shares to the CIGA Lenders;

                              (ii) Sheraton International shall not be required
to pledge all or any portion of its right, title or interest in the remaining
Ordinary Shares of CIGA to any Person; and

                              (iii) the CIGA Borrower shall not be required to
be a Guarantor under the Credit Agreement or to satisfy the requirements of
Sections 8.13, 8.15 or clause (y) of the proviso of Section 9.16(b) thereof;

provided that (x) promptly after the creation of the CIGA Borrower, Sheraton
International shall be required to pledge all of its right, title and interest
in, to and under the Capital Stock of the CIGA Borrower to the Collateral Agent
for the benefit of the Secured Creditors and (y) if at any time the CIGA Bridge
Loan does not prohibit the CIGA Borrower and/or Sheraton International from
pledging all or any portion of their respective interests in the Capital Stock
of CIGA to the Collateral Agent for the benefit of the Secured Creditors, the
CIGA Borrower and/or Sheraton International, as the case may be, shall promptly
pledge to the Collateral Agent for the benefit of the Secured Creditors that
portion of such Capital Stock that is not then pledged to the Collateral Agent
for the benefit of the Secured Creditors and that is no longer prohibited from
being pledged under the CIGA Bridge Loan; provided further that, promptly after
the earlier to occur of (1) June 30, 2002 and (2) the date upon which the CIGA
Bridge Loan is repaid in full (the
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"CIGA Loan Outside Date"), (x) the preceding clauses (b)(i), (b)(ii) and
(b)(iii) shall no longer apply, (y) the CIGA Borrower shall execute and deliver
counterparts of the supplements to the Guaranty and Pledge and Security
Agreement and take such other actions as may be required under said Guaranty,
Pledge and Security Agreement and the provisions of Section 9.16 of the Credit
Agreement, including, without limitation, pledging all of its interest in the
Capital Stock of CIGA and (z) all of the Capital Stock of CIGA owned by the
Corporation or any other Subsidiary that is not already pledged to the
Collateral Agent shall be pledged to the Collateral Agent for the benefit of the
Secured Creditors in accordance with the applicable provisions of Sections 8.13,
8.14 and 9.16 of the Credit Agreement; provided that, in the case of any
required pledge of Capital Stock of CIGA, such pledge shall be required only to
the extent that such pledge (1) is required under Section 2 of the Pledge and
Security Agreement without regard to the provisions of this Amendment, (2) is
not prohibited under the laws of Italy and (3) shall not cause any material
adverse Federal income tax consequences to the Credit Parties.

                      (c) Liens; Section 9.01. Section 9.01 of the Credit
Agreement shall be amended by (i) deleting the last reference to the word "and"
in clause (xvii), (ii) replacing the period at the end of clause (xviii) in said
Section with the following word "; and", and (iii) inserting, immediately after
clause (xviii) thereof, the following new clause (xix):

                       "(xix) so long as no Specified Default and no Event
                       of Default then exists or would exist immediately
                       after giving effect thereto, Liens on Assets of the
                       Corporation or any of its Subsidiaries (other than
                       Assets constituting Collateral) securing any
                       Indebtedness permitted under Section 9.04(xii),
                       provided that, prior to the incurrence of any such
                       Indebtedness, the Corporation shall deliver a
                       certificate to the Paying Agent establishing
                       compliance with the financial covenants contained in
                       Sections 9.08 through 9.11, inclusive, and Section
                       9.23, for the Reference Period, on a Pro Forma
                       Basis."

                      (d) Indebtedness; Section 9.04. Section 9.04(vii) of the
Credit Agreement is hereby amended by inserting, immediately after the phrase
"to the extent permitted by Section 9.05(viii)," the following: "or Section
9.05(xvii)."

                      (e) Advances, Investments and Loans; 9.05(xvii). Section
9.05 of the Credit Agreement is hereby amended by (i) deleting the last
reference to the word "and" in clause (xv) thereof, (ii) deleting the period at
the end of clause (xvi) in said Section and inserting the following word "; and"
in its place, and (iii) inserting, immediately after clause (xvi) of said
Section, the following new clause (xvii);

                       "(xvii) Subject to Section 9.03, so long as no
                       Specified Default and no Event of Default then exists
                       or would exist immediately after giving effect
                       thereto, in addition to any other investments
                       permitted hereunder, the Corporation and its
                       Subsidiaries shall be permitted to do any of the
                       following: (A) create and establish the CIGA Borrower
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                       and, in connection therewith, acquire all of the
                       Capital Stock of the CIGA Borrower, (B) so long as no
                       Specified Default and no Event of Default then exists
                       or would exist immediately after giving effect
                       thereto, make one or more contributions to the CIGA
                       Borrower of up to sixty-six percent (66%) of the
                       Ordinary Shares of CIGA, and (C)(i) so long as no
                       Specified Default and no Event of Default then exists
                       or would exist immediately after giving effect
                       thereto, the CIGA Borrower may make one or more
                       intercompany loans, distributions (in addition to,
                       and not in limitation of, the payment of any
                       Dividends to the extent permitted under Section 9.03
                       hereof) and advances of cash to Sheraton
                       International in an aggregate amount not to exceed
                       the principal amount borrowed by the CIGA Borrower
                       under the CIGA Bridge Loan, and, so long as no
                       Specified Default and no Event of Default then exists
                       or would exist immediately after giving effect
                       thereto, Sheraton International may repay any such
                       distributions, advances and loans (together with any
                       interest due thereon) so long as the proceeds of such
                       distributions, advances and loans are promptly used
                       to repay any amounts due under the CIGA Bridge Loan
                       and (ii) so long as no Specified Default and no Event
                       of Default then exists or would exist immediately
                       after giving effect thereto, Sheraton International
                       may make one or more distributions, advances,
                       intercompany loans and such other Investments in or
                       to CIGA Borrower as may be reasonably required (after
                       giving effect to any payments made (or to be made) to
                       the CIGA Borrower under preceding clause (C)(i)) for
                       the following: (x) to pay any amounts due under the
                       CIGA Bridge Loan so long as such amounts are promptly
                       used for such purpose and (y) for the ordinary
                       working capital of CIGA Borrower so long as (i) such
                       amounts are not further distributed, advanced or
                       loaned to CIGA or any other Subsidiary of the CIGA
                       Borrower and (ii) any such Investment otherwise
                       complies with Section 9.26; and provided that all
                       intercompany loans and advances made pursuant to this
                       clause (xvii) shall be subject to the provisions of
                       validly executed Subordination Agreements as required
                       by the last paragraph of Section 9.04."

                      (f) Certain Restrictions on Subsidiaries; Section 9.13.
Section 9.13 of the Credit Agreement is amended by (i) deleting the word "and"
immediately preceding clause (xiii) thereof and replacing said word with a comma
and (ii) inserting, immediately after the last word of clause (xiii), the
following:
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                       ", and (xiv) restrictions (and, under certain
                       circumstances, prohibitions) contained in any of the
                       documents evidencing, securing or otherwise relating
                       to the CIGA Bridge Loan, with respect to (A) the
                       payment or distribution of any Dividends, (B) the
                       making of any intercompany loans or advances or (C)
                       the transfer of any property or Assets, in each case,
                       by the CIGA Borrower to Sheraton International if
                       such prohibition or restriction arises only (x) after
                       the occurrence (but only during the existence) of an
                       event of default under the CIGA Bridge Loan (which
                       event of default does not arise (i) solely as a
                       result of the breach of a covenant prohibiting the
                       taking of any of the actions described in preceding
                       clauses (A), (B) or (C) (unless such action would
                       cause a breach of a financial covenant described in
                       the following clause (y), in which case, said clause
                       (y) shall apply) or (ii) as a result of a breach of a
                       financial covenant (except a financial covenant
                       described in following clause (y))) or (y) if the
                       taking of any of the actions described in preceding
                       clauses (A), (B) or (C) would cause a default under
                       the CIGA Bridge Loan in respect of a financial
                       covenant described in Annex I attached hereto so long
                       as such financial covenant is not more restrictive
                       vis-a-vis the CIGA Borrower or Sheraton International
                       than the financial covenants described in Annex I
                       attached hereto with no changes or modifications
                       thereto, except for immaterial changes or
                       modifications approved by the Lead Agents."

                      (g) Section 9.26; CIGA Transactions Restrictions. Section
9 of the Credit Agreement is amended by inserting, immediately after the last
Section thereof, the following new Section 9.26:

                       "9.26 CIGA Transactions Restrictions. (a) The CIGA
                       Borrower shall own no Assets other than (i) its
                       ownership interest in CIGA in an amount up to
                       sixty-six percent (66%) of the Ordinary Shares of
                       CIGA and (ii) cash and Cash Equivalents held for
                       general corporate and administrative purposes or
                       otherwise in the ordinary course of the CIGA
                       Borrower's business (but in no event shall the CIGA
                       Borrower hold cash or Cash Equivalents in an amount
                       in excess of $5,000,000 (such amount, the "CIGA
                       Borrower Working Capital Amount") for a period longer
                       than five (5) consecutive Business Days); (b) the
                       CIGA Borrower shall not acquire any Assets (other
                       than as described in preceding clause (a)) without
                       the prior written consent of the Required Lenders;
                       (c) no Capital Stock of CIGA (other than the Ordinary
                       Shares of CIGA owned by
<PAGE>   8
                       the CIGA Borrower as described in preceding clause
                       (A) which, subject to certain terms and conditions
                       set forth in the Tenth Amendment, may be pledged to
                       the CIGA Lenders) shall be pledged or encumbered
                       (other than to the Collateral Agent for the benefit
                       of the Secured Creditors); and (d) all obligations
                       under the CIGA Bridge Loan shall be repaid in full on
                       or prior to the CIGA Loan Outside Date, except as
                       such outside date may be otherwise extended with the
                       prior written consent of the Required Lenders."

                  SECTION  2. Permanent Senior Notes and Other Permitted
                           Indebtedness.

                      (a) Indebtedness; Section 9.04(viii)(A). Clause (I) of
Section 9.04(viii)(A)(3) of the Credit Agreement shall be amended and restated
to read as follows:

                       "(I) first, to repay the then outstanding Senior
                       Secured Bridge Notes in such amounts, if any, as the
                       Corporation shall determine, in its sole and absolute
                       discretion,".

                      (b) Definitions; Section 11.01. The definition of
"Permanent Senior Notes" contained in Section 11 of the Credit Agreement is
hereby amended by (i) inserting, immediately after the words "senior notes of
the Corporation or the Corporate Borrowers", the following:

                       "and other notes evidencing senior term loan
                       facilities and other similar types of senior
                       Indebtedness incurred or issued by the Corporation or
                       the Corporate Borrowers",

(ii) deleting the words "those provided in the Senior Secured Bridge Notes" in
clause (I) of subsection (a) of the proviso of said definition and replacing
same with the words "February 23, 2003", (iii) inserting, immediately after the
parenthetical contained in clause (II) of the proviso of said definition, the
following words ", but excluding the terms and provisions relating to interest
rates, fees and other similar pricing provisions,", and (iv) deleting the words
"the Senior Secured Bridge Notes" in said clause (II) and replacing same with
the words "this Credit Agreement."

                  SECTION  3. Other Hedging Agreements.

                      (a) Indebtedness; Section 9.04. Section 9.04(iii) of the
Credit Agreement is amended by inserting, immediately after the last word
thereof, the following:

                       "or any Indebtedness under Other Hedging Agreements
                       which are non-speculative in nature, entered into in
                       the ordinary course of business and determined by the
                       Corporation to be reasonably necessary to hedge and
                       protect against fluctuations in the Corporation's
                       and/or its
<PAGE>   9
                       Subsidiaries' cash flow and earnings from changes in
                       financial markets."

                      (b) Investments; Section 9.05. Section 9.05(iv) of the
Credit Agreement is hereby amended by inserting, immediately after the phrase
"enter into Interest Rate Protection Agreements," the following: "or Other
Hedging Agreements".

                      (c) Definitions; Section 11.01. The definition of "Other
Hedging Agreement" contained in Section 11 of the Credit Agreement is hereby
amended by (i) inserting, immediately after the last word of such definition,
the following:

                       "or instruments to hedge and protect against
                       fluctuations in the Corporation's and/or its
                       Subsidiaries cash flow and earnings from changes in
                       financial markets".

                  SECTION 4. Non-Recourse Indebtedness; Section 9.04(iv).
Section 9.04(iv) of the Credit Agreement is amended by (x) deleting all of the
words contained in clauses (i) and (iv) of said Section 9.04(iv) and (y)
inserting in their place, in each case, the term "[Intentionally Deleted]".

                  SECTION 5. Advances, Investments and Loans; Section 9.05(xiv).
Section 9.05(xiv) of the Credit Agreement is hereby amended by deleting the
amount "$50,000,000" therefrom and inserting "$100,000,000" in its place.

                  SECTION 6. Technical Amendments; Section 9.04(xii). Section
9.04(xii) of the Credit Agreement is hereby further amended by (i) modifying and
deleting the reference to "Section 4.02(e)" in clause (b) of the proviso of said
Section 9.04(xii) and inserting in its place "Section 4.02(d)" and (ii)
inserting, immediately after the phrase "additional Indebtedness of the
Corporation and any of its Subsidiaries" in said Section 9.04(xii), the
following:

                       "(without duplication of any amounts guaranteed by or
                       with recourse to one or more obligors and/or
                       guarantors)".

                  SECTION 7. New Commitments.

                      (a) Without limiting the provisions of Section 7(b) below,
each of the Corporation and Starwood REIT confirms to the Lenders that it has
not heretofore obtained, and it has no further right to obtain, any New Tranche
II Term Loan Commitments, New Revolving Loan Commitments or New Commitments, in
each case, under, and as defined in, the Fourth Amendment.

                      (b) The Lenders agree that, at any time and from time to
time on or prior to June 30, 2001, the Borrowers shall have the right to
increase the Tranche II Term Loan Commitments (each such increase, a "New
Tranche II Term Loan Commitment" or a "New Commitment") as more fully described
below, by an aggregate amount of up to $500,000,000 by notice (a "New Commitment
Notice") to the Administrative Agents given at least 3 Business Days before the
respective New Commitment Effective Date (as defined below) and upon the
following terms and conditions:
<PAGE>   10
                      (i) on each date upon which any New Tranche II Term Loan
Commitment becomes effective in accordance with the terms of the respective
Assumption Agreement described in clause (ii) below (each such date, a "New
Commitment Effective Date"), no Specified Default and no Event of Default shall
be in existence (and no Specified Default and no Event Default shall result
therefrom);

                      (ii) on or prior to each New Commitment Effective Date,
each Lender (which may be an existing Lender or a new Lender) furnishing a New
Commitment shall have executed and delivered to the Paying Agent an Assumption
Agreement in the form of Annex II attached to this Amendment with respect to the
New Commitments of such Lender (each an "Assumption Agreement"), appropriately
completed to the reasonable satisfaction of the Paying Agent (and with such
modifications as may be approved by the Paying Agent);

                      (iii) the consent of the Paying Agent (which consent shall
not to be unreasonably withheld or delayed) shall be required to each Lender
which furnishes one or more New Commitments and the assumption of such New
Commitments shall otherwise be made in compliance with the relevant requirements
expressed in Section 13.04(b) of the Credit Agreement with respect to
assignments (including, without limitation that the respective entity assuming
any New Commitments shall be an Eligible Transferee, compliance with the minimum
amounts provided in Section 13.04(b) and the requirement that the Paying Agent
receive the fees provided in said Section 13.04(b));

                      (iv) on each New Commitment Effective Date, additional
Tranche II Term Loans shall be extended pursuant to the New Commitments;

                      (v) based on the information contained in the respective
Assumption Agreement, and consistent with the requirements set forth above, on
each New Commitment Effective Date Schedule I-A and Schedule II to the Credit
Agreement shall be deemed amended accordingly;

                      (vi) each Lender furnishing a New Tranche II Term Loan
Commitment shall, on the respective New Commitment Effective Date, make Tranche
II Term Loans to the Corporate Borrowers, consistent with the manner provided in
Section 1.01 of the Credit Agreement, in an aggregate principal amount equal to
the New Tranche II Term Loan Commitment of such Lender (which New Tranche II
Term Loan Commitment shall terminate immediately after giving effect to such
funding);

                      (vii) notwithstanding anything to the contrary contained
in the Credit Agreement, each Borrowing of Tranche II Term Loans outstanding
pursuant to the Credit Agreement at any time after the first date upon which any
New Tranche II Term Loans are extended shall consist exclusively of either (x)
Existing Tranche II Term Loans (with each Lender which holds any outstanding
Existing Tranche II Term Loans to participate proportionately in each
outstanding Borrowing of Existing Tranche II Term Loans) or (y) New Tranche II
Term Loans (with each Lender which holds any outstanding New Tranche II Term
Loans to participate proportionately in each outstanding Borrowing of New
Tranche II Term Loans); provided that the New Tranche II Term Loans made by each
Lender at any time after the first New Commitment Effective Date pursuant to
which New Tranche II Term Loans are
<PAGE>   11
extended shall (1) be allocated proportionately to each Borrowing of New Tranche
II Term Loans then outstanding (based upon the relative aggregate principal
amounts of each such Borrowing), (2) bear interest at the same rates as are
applicable thereto and (3) to the extent the amount so added to any such
Borrowing is in respect of a Borrowing of Eurodollar Loans with an Interest
Period which began prior to, and ends after, the respective New Commitment
Effective Date, the Borrowers and such Lender may agree, as between themselves,
for the payment of any amounts to the respective Lender to compensate it for
extending the respective Tranche II Term Loans during an existing Interest
Period;

                      (viii) on or prior to each New Commitment Effective Date,
but subject to the provisions of Section 1.06(j) of the Credit Agreement, the
Corporate Borrowers shall execute and deliver to each Lender furnishing a New
Tranche II Term Loan Commitment a Tranche II Term Note payable to the order of
such Lender in the stated amount equal to such New Tranche II Term Loan
Commitment (in each case appropriately completed);

                      (ix) notwithstanding anything to the contrary contained in
the Credit Agreement, the following provisions shall govern:

                              (A) each Interim Tranche II Scheduled Repayment
shall be applied only to the repayment of Existing Tranche II Term Loans on a
pro rata basis (based upon the then outstanding amount of Existing Tranche II
Term Loans);

                              (B) on each New Commitment Effective Date, the
Final Tranche II Scheduled Repayment shall be increased by the aggregate amount
of the New Tranche II Term Loan Commitments furnished on such New Commitment
Effective Date;

                              (C) on the Tranche II Maturity Date, all then
outstanding Tranche II Term Loans (including all then outstanding Existing
Tranche II Term Loans and all New Tranche II Term Loans) shall be repaid in
full;

                              (D) in connection with any voluntary prepayment of
Tranche II Term Loans by any Borrower under Section 4.01(v) of the Credit
Agreement, such Borrower shall designate in the notice described in Section
4.01(i) of the Credit Agreement whether Existing Tranche II Term Loans and/or
New Tranche II Term Loans shall be prepaid and, if applicable, the amount of
Existing Tranche II Term Loans and/or New Tranche II Term Loans being so repaid,
and the respective voluntary prepayment shall be applied to the Existing Tranche
II Term Loans and/or New Tranche II Term Loans in accordance with such
designation (with each Lender holding Existing Tranche II Term Loans or New
Tranche II Term Loans, as the case may be, to receive its share of such
prepayment on a pro rata basis, based upon the relative amounts of Existing
Tranche II Term Loans or New Tranche II Term Loans, as the case may be, held by
the various Lenders);

                              (E)(1) each voluntary prepayment of New Tranche II
Term Loans shall apply to reduce the then remaining Final Tranche II Scheduled
Repayment, with the entire amount of such prepayment to be so applied only to
the repayment of New Tranche II Term Loans on a pro rata basis (based on the
then outstanding amount of New Tranche II Term Loans) and (2) each voluntary
prepayment of Existing Tranche II Term Loans shall apply to reduce the
<PAGE>   12
then remaining Tranche II Scheduled Repayments on a pro rata basis (based upon
the then remaining amounts of such Tranche II Scheduled Repayments, after giving
effect to all prior reductions thereto, but for purposes of such calculation
reducing the Final Tranche II Scheduled Repayment by the aggregate principal
amount of New Tranche II Term Loans then outstanding), with the entire amount of
such prepayment to be applied only to the repayment of Existing Tranche II Term
Loans on a pro rata basis (based upon the then outstanding amount of Existing
Tranche II Term Loans);

                              (F) if on any date any amount to be applied
pursuant to the provisions of Section 4.02(h) of the Credit Agreement is to be
applied (x) to reduce any Interim Tranche II Scheduled Repayments, the amount to
be so applied shall be applied only to the repayment of Existing Tranche II Term
Loans on a pro rata basis (based upon the then outstanding amount of Existing
Tranche II Term Loans) or (y) to reduce the Final Tranche II Scheduled
Repayment, the amount to be so applied shall be applied as follows: (1) an
amount equal to (x) the amount to be applied to reduce the Final Tranche II
Scheduled Repayment at such time multiplied by (y) the Existing Tranche II Term
Loan Percentage shall be applied to the repayment of the Existing Tranche II
Term Loans on a pro rata basis (based on the then outstanding amount of Existing
Tranche II Term Loans) and (2) the balance shall be applied to the payment of
the New Tranche II Term Loans on a pro rata basis (based on the then outstanding
amount of New Tranche II Term Loans); and

                              (G) on the date of each repayment of outstanding
Tranche II Term Loans (excluding any repayment in full of all then outstanding
Tranche II Term Loans) the respective repayments of principal shall be allocated
amongst the then outstanding Borrowings in a manner consistent with the
foregoing requirements of this clause (ix).

                  Notwithstanding anything to the contrary contained above or
elsewhere in this Tenth Amendment, it is acknowledged and agreed that no Lender
shall be required to provide any New Commitment, except to the extent agreed in
writing by such Lender with the Borrowers (with each Lender being entitled in
its sole discretion not to furnish any New Commitment).

                  Without limiting the representations and warranties contained
in the Credit Agreement (which are made on the date of the occurrence of each
Credit Event), the Borrowers represent and warrant that all extensions of credit
pursuant to the New Commitments (or which would be in excess of the amount
permitted pursuant to the Credit Agreement in the absence of the New
Commitments), shall in each case be permitted to be incurred pursuant to clause
(a) or clause (i) of the second paragraph, or pursuant to the first paragraph,
of Section 5.9 of the Senior Secured Bridge Note Agreement (so long as same is
in effect) and that the Liens securing such extensions of credit are permitted
in accordance with Section 5.12 of the Senior Secured Bridge Note Agreement (so
long as same remains in effect).

                      (c) The Credit Agreement is hereby amended by adding,
immediately after the end of Section 1.18 thereof, the following new provision:

                                "1.19. Special Provisions Applicable to
                       Tranche II Term Loans. At any time after the first
                       New Commitment Effective Date as
<PAGE>   13
                       contemplated by the Tenth Amendment, it is
                       acknowledged and agreed that, with respect to Tranche
                       II Term Loans, the provisions of this Section 1 shall
                       be subject to the overriding rules provided in
                       Section 7 of the Tenth Amendment (including, without
                       limitation, as to the fact that Borrowings of Tranche
                       II Term Loans will consist exclusively of either
                       Existing Tranche II Term Loans or New Tranche II Term
                       Loans)."

                      (d) The Credit Agreement is hereby amended by inserting,
immediately after the end of Section 4.04 thereof, the following new provision:

                                "4.05. Special Provisions with respect to
                       Tranche II Term Loans. At any time after the first
                       New Commitment Effective Date as contemplated by the
                       Tenth Amendment, it is acknowledged and agreed that,
                       with respect to Tranche II Term Loans, the provisions
                       of preceding Sections 4.01 through 4.03, inclusive,
                       shall be subject to the overriding rules provided in
                       Section 7 of the Tenth Amendment (including, without
                       limitation, as to the fact that repayments of Tranche
                       II Term Loans shall be allocated amongst the Existing
                       Tranche II Term Loans and New Tranche II Term Loans
                       on the basis provided in said Section 7 of the Tenth
                       Amendment, with all Interim Tranche II Scheduled
                       Repayments to be allocated exclusively to the
                       Existing Tranche II Term Loans)."

                      (e) Section 8.01(e) of the Credit Agreement is hereby
amended by inserting, immediately after the words "Fourth Amendment," the words
"or Tenth Amendment."

                      (f) Section 9.04 of the Credit Agreement is hereby amended
by deleting the second sentence of the first paragraph immediately following
Section 9.04(xvi) of the Credit Agreement.

                      (g) The second proviso in clause (iii) of Section 9.12 of
the Credit Agreement is hereby amended by (i) deleting the words "the Fourth
Amendment" and replacing the same with the words "the Tenth Amendment," and (ii)
deleting the words "exceeds the New Commitment Amount" and replacing same with
following the words "exceeds the aggregate proceeds of New Tranche II Term Loans
actually made pursuant to New Tranche II Term Loan Commitments furnished under
the Tenth Amendment."

                      (h) The definition of "New Commitment Amount" set forth in
Section 11.01 of the Credit Agreement is hereby amended by (i) deleting the
first reference to the words "the Fourth Amendment" therein and replacing same
with the words "the Tenth Amendment" and (ii) amending and restating clause (ii)
of the proviso of said definition to read as follows:

                       "(ii) the funding thereof required pursuant to clause
                       (vi) of Section 7(b) of the Tenth Amendment, has
                       actually occurred."
<PAGE>   14
                      (i) Section 9.04(viii)(B) of the Credit Agreement is
amended by inserting, immediately after the words "pursuant to Section
9.04(xiv)" in clause (z) thereof, the following:

                       ", the aggregate proceeds of Tranche II Term Loans
                       actually made pursuant to New Tranche II Term Loan
                       Commitments furnished under, or as contemplated by,
                       the Tenth Amendment,".

                      (j) Section 9.04(xiv) of the Credit Agreement is amended
by inserting, immediately after the words "pursuant to Section 9.04(viii)(B)" in
clause (z) thereof, the following:

                       ", the aggregate proceeds of Tranche II Term Loans
                       actually made pursuant to New Tranche II Term Loan
                       Commitments furnished under, or as contemplated by,
                       the Tenth Amendment,".

                      (k) Section 9.14(c) of the Credit Agreement is amended by
inserting, immediately after the words "pursuant to Sections 9.04(viii)(B) and
9.04(xiv)" in clause (y) thereof, the following:

                       "and the aggregate proceeds of Tranche II Term Loans
                       actually made pursuant to New Tranche II Term Loan
                       Commitments furnished under, or as contemplated by,
                       the Tenth Amendment."

                      (l) Exhibit M to the Credit Agreement is hereby amended by
(i) inserting the following new paragraph numbered 8 immediately at the end of
paragraph numbered 7 thereof:

                                "8. If the assignment effected hereby
                       involves any Tranche II Term Loans, as more fully
                       provided in Section 7 of the Tenth Amendment, the
                       Assignee hereby acknowledges and agrees that, to the
                       extent provided in said Section 7, various repayments
                       of outstanding Tranche II Term Loans shall be
                       allocated to the Existing Tranche II Term Loans and
                       not to the New Tranche II Term Loans. The Assignee is
                       aware that Section 7 of the Tenth Amendment provides
                       certain overriding provisions with respect to the
                       Existing Tranche II Term Loans and the New Tranche II
                       Term Loans and, if the assignment effected hereby
                       involves any Tranche II Term Loans, the Assignee is
                       familiar with the terms thereof. Furthermore, the
                       Assignee agrees to keep records of its outstanding
                       New Tranche II Term Loans as opposed to the
                       outstanding principal of its Existing Tranche II Term
                       Loans, if any, and agrees that if it makes any
                       assignment or participation of any Tranche II Term
                       Loans it shall clearly provide in the relevant
                       documentation whether (and to what extent) the
                       assignment is of Existing Tranche II Term Loans
                       and/or New
<PAGE>   15
                       Tranche II Term Loans and shall inform the assignee or
                       participant, as the case may be, of the provisions of
                       Section 7 of the Tenth Amendment."

and (ii) modifying Section 4 of Annex I thereto by (x) deleting the heading
"Outstanding Principal of Tranche II Term Loans" appearing therein and by
inserting in lieu thereof the heading "Outstanding Principal of Existing Tranche
II Term Loans" and adding a new column, immediately to the right of the two
existing columns appearing therein, as set forth below:

         "Outstanding Principal of New Tranche II Term Loans
                  $ -----------
                    -----------%
                  $ ------------".

                      (m) As used herein, the following terms shall have the
following meanings:

                      (i) "Existing Tranche II Term Loans" means, collectively
all Tranche II Term Loans (other than any New Tranche II Term Loans).

                      (ii) "Existing Tranche II Term Loan Percentage" means, as
of any determination date, the fraction (expressed as a percentage) where the
numerator is the aggregate amount of Existing Tranche II Term Loans outstanding
as of such date less the aggregate principal amount thereof which are then
scheduled to be repaid prior to the Tranche II Maturity Date pursuant to one or
more Interim Tranche II Scheduled Repayments, and the denominator is the sum of
the numerator and the aggregate amount of New Tranche II Term Loans outstanding
as of such date.

                      (iii) "Final Tranche II Scheduled Repayment" means the
Tranche II Scheduled Repayment of $550 million as set forth in Section
4.02(b)(ii) of the Credit Agreement due on the Tranche II Maturity Date, as the
same may have been reduced pursuant to Sections 4.01 and 4.02(c) through (j),
inclusive, of the Credit Agreement and increased pursuant to Section 7(b)(ix) of
this Amendment.

                      (iv) "Interim Tranche II Scheduled Repayments" means,
collectively, the Tranche II Scheduled Repayments (other than the Final Tranche
II Scheduled Repayment).

                      (v) "New Tranche II Term Loans" means, collectively, any
Tranche II Term Loans actually made pursuant to the New Tranche II Term Loan
Commitments furnished under this Amendment.

                  SECTION 8. Certificates by Other Officers; Sections 8.01 and
8.07. Each of Sections 8.01(a), (b) , and (e) and Section 8.07 of the Credit
Agreement shall be amended by (i) deleting the first parenthetical immediately
after each occurrence of the phrase "the chief financial officer of the
Corporation" in such Sections, and (ii) inserting in lieu thereof the following
parenthetical in each such Section:
<PAGE>   16
                       "(or by the Vice President, Finance & Treasurer or Senior
                       Vice President and Corporate Controller of the
                       Corporation)".

                  SECTION 9. Certain Definitions. The following new definitions
shall be inserted in proper alphabetical order in Section 11.01:

                  "Assumption Agreement" has the meaning specified in the Tenth
                  Amendment.

                  "CIGA Borrower" shall have the meaning specified in the Tenth
                  Amendment.

                  "CIGA Borrower Working Capital Amount" shall have the meaning
                  specified in Section 9.26.

                  "CIGA Bridge Loan" shall have the meaning specified in the
                  Tenth Amendment.

                  "CIGA Lender" shall have the meaning specified in the Tenth
                  Amendment.

                  "CIGA Loan Outside Date" shall have the meaning specified in
                  the Tenth Amendment.

                  "CIGA Tender Offer" shall have the meaning specified in the
                  Tenth Amendment.

                  "CIGA Transactions" shall have the meaning specified in the
                  Tenth Amendment.

                  "Existing Tranche II Term Loans" has the meaning specified in
                  the Tenth Amendment.

                  "Existing Tranche II Term Loan Percentage" has the meaning
                  specified in the Tenth Amendment.

                  "Final Tranche II Scheduled Repayment" has the meaning
                  specified in the Tenth Amendment.

                  "Interim Tranche II Scheduled Repayments" has the meaning
                  specified in the Tenth Amendment.

                  "New Commitment" has the meaning specified in the Tenth
                  Amendment.

                  "New Commitment Effective Date" has the meaning specified in
                  the Tenth Amendment.

                  "New Commitment Notice" has the meaning specified in the Tenth
                  Amendment.

                  "New Tranche II Term Loan Commitment" has the meaning
                  specified in the Tenth
<PAGE>   17
                   Amendment.

                  "New Tranche II Term Loans" has the meaning specified in the
                  Tenth Amendment.

                  "Ordinary Shares" shall have the meaning specified in the
                  Tenth Amendment.

                  "Saving Shares" shall have the meaning specified in the Tenth
                  Amendment.

                  "Sheraton International" shall mean Sheraton International,
                  Inc., a Delaware corporation and a Wholly-Owned Domestic
                  Subsidiary of the Corporation.

                  "Tenth Amendment' shall mean that certain Tenth Amendment to
                  Credit Agreement, dated as of June 12, 2000.

                  "Tenth Amendment Effective Date" shall mean the date upon
                  which the Tenth Amendment becomes effective in accordance with
                  its terms.

                  "Tranche II Term Loan Percentage" has the meaning specified in
                  the Tenth Amendment.

                  II. Modification of Pledge and Security Agreement.

                  The parties hereto acknowledge and agree that, so long as (and
only for so long as) (i) the Capital Stock of CIGA is not required to be pledged
to the Secured Creditors in accordance with this Amendment and (ii) the Capital
Stock of the Restricted Vistana Subsidiaries is not required to be pledged to
the Secured Creditors in accordance with the Ninth Amendment, such Capital Stock
of CIGA and the Capital Stock of the Restricted Vistana Subsidiaries, as the
case may be, shall not be required to be pledged under the Pledge and Security
Agreement.

                  III. Miscellaneous Provisions

                  A. Each Guarantor and each Borrower, by their signatures
below, hereby confirms that (x) the Guaranty shall remain in full force and
effect and the Guaranty covers the obligations of each of the Borrowers under
the Credit Agreement, as modified and amended by this Amendment (including,
without limitation, all extensions of credit pursuant to the New Commitments
furnished from time to time as contemplated by this Amendment) and (y) the
Pledge and Security Agreement (as modified by this Amendment) shall remain in
full force and effect as security for the obligations under the Credit
Agreement, as modified and amended by this Amendment (including without
limitation all extensions of credit pursuant to the New Commitments furnished
from time to time as contemplated by this Amendment) and the Guaranty.

                  B. The Corporation represents to the Lenders that, on the
Tenth Amendment Effective Date, after giving effect to the execution, delivery
and performance by the Corporation of this Amendment and the transactions
contemplated hereby, (i) there shall exist no Default or Event of Default and
(ii) all representations and warranties contained in the Credit Agreement and in
the other Credit Documents, as modified hereby, shall be true and correct in all
material respects with the same effect as though such representations and
warranties had been made on
<PAGE>   18
the Tenth Amendment Effective Date (it being understood and agreed that any
representation or warranty which by its terms is made as of a specified date
shall be true and correct in all material respects only as of such specified
date).

                  C. This Amendment is limited as specified and shall not
constitute a modification, acceptance or waiver of any other provision of the
Credit Agreement or any other Credit Document.

                  D. This Amendment may be executed in any number of
counterparts and by the different parties hereto on separate counterparts, each
of which counterparts when executed and delivered shall be an original, but all
of which shall together constitute one and the same instrument. A complete set
of counterparts shall be lodged with the Borrowers and the Paying Agent.

                  E. THIS AMENDMENT AND THE RIGHTS AND OBLIGATIONS OF THE
PARTIES HEREUNDER SHALL BE CONSTRUED IN ACCORDANCE WITH AND GOVERNED BY THE LAWS
OF THE STATE OF NEW YORK.

                  F. This Amendment shall become effective on the date (the
"Tenth Amendment Effective Date") when each of the Borrowers, each Guarantor and
the Required Lenders shall have signed a counterpart hereof (whether the same or
different counterparts) and shall have delivered (including by way of facsimile
transmission) the same to the Paying Agent (or its designee).

                  G. From and after the Tenth Amendment Effective Date, all
references in the Credit Agreement and each of the other Credit Documents to the
Credit Agreement shall be deemed to be references to the Credit Agreement as
modified hereby.

                  H. The Borrowers hereby covenant and agree that, so long as
the Tenth Amendment Effective Date occurs, they shall pay (and shall be jointly
and severally obligated to pay) each Lender which executes and delivers to the
Paying Agent (or its designee) a counterpart hereof by the later to occur of (x)
the close of business on the Tenth Amendment Effective Date or (y) 12:00 p.m.
(New York time) on Thursday, June 29, 2000 (the "Outside Date"), or which is an
immediate or successive assignee of any Lender described above (with respect to
amounts obtained, directly or indirectly, by assignment from such Lender), a
non-refundable cash fee in an amount equal to 5.0 basis points (0.05%) of an
amount equal to the sum of the outstanding principal amount of Term Loans of
such Lender and the Revolving Loan Commitment of such Lender, in each case as
same is in effect on the Tenth Amendment Effective Date, which fees shall be
paid by the Borrowers to the Paying Agent for distribution to the Lenders not
later than the fifth Business Day following the Outside Date.

                 [ANNEX I, ANNEX II AND SIGNATURE PAGES FOLLOW]
<PAGE>   19
                  IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Amendment as of the date first
above written.

         STARWOOD HOTELS & RESORTS
         WORLDWIDE, INC., a Maryland corporation

         By:  /s/ Ronald C. Brown
             ---------------------------------------
              Name:  Ronald C. Brown
              Title: Executive Vice President & CFO

         STARWOOD HOTELS & RESORTS,
         a Maryland real estate investment trust

         By:  /s/ Ronald C. Brown
             ---------------------------------------
              Name:  Ronald C. Brown
              Title: Vice President, Chief Financial
                     Officer and Chief Accounting
                     Officer

         SLT REALTY LIMITED PARTNERSHIP,
         a Delaware limited partnership

         By:      Starwood Hotels & Resorts, a Maryland real estate investment
                  trust, its general partner

         By:  /s/ Ronald C. Brown
             ---------------------------------------
              Name:  Ronald C. Brown
              Title: Vice President, Chief Financial
                     Officer and Chief Accounting
                     Officer

         ITT CORPORATION, a Nevada corporation

         By:  /s/ Ronald C. Brown
             ---------------------------------------
              Name:  Ronald C. Brown
              Title: Executive Vice President & CFO

         STARWOOD HOTELS & RESORTS HOLDINGS, INC.,
         an Arizona corporation

         By:  /s/ Ronald C. Brown
             ---------------------------------------
              Name:  Ronald C. Brown
              Title: Executive Vice President & CFO

                       [Signature Page to Tenth Amendment]
<PAGE>   20
         CHARLESTON HOTEL ASSOCIATES, LLC,
         a New Jersey limited liability company,

         CRYSTAL CITY HOTEL ASSOCIATES, LLC,
         a New Jersey limited liability company,

         LONG BEACH HOTEL ASSOCIATES, LLC,
         a New Jersey limited liability company,

         SANTA ROSA HOTEL ASSOCIATES, LLC,
         a New Jersey limited liability company,

         SLT ALLENTOWN LLC,
         a Delaware limited liability company,

         SLT ARLINGTON LLC,
         a Delaware limited liability company,

         SLT ASPEN DEAN STREET, LLC,
         a Delaware limited liability company,

         SLT BLOOMINGTON LLC,
         a Delaware limited liability company,

         SLT DANIA LLC,
         a Delaware limited liability company,

         SLT DC MASSACHUSETTS AVENUE, LLC,
         a Delaware limited liability company,

         SLT INDIANAPOLIS LLC,
         a Delaware limited liability company,

         SLT KANSAS CITY LLC,
         a Delaware limited liability company,

         SLT LOS ANGELES LLC,
         a Delaware limited liability company,

         SLT MINNEAPOLIS LLC,
         a Delaware limited liability company,

         SLT PALM DESERT LLC,
         a Delaware limited liability company,
<PAGE>   21
         SLT PHILADELPHIA LLC,
         a Delaware limited liability company,

         SLT REALTY COMPANY, LLC,
         a Delaware limited liability company,

         SLT SAN DIEGO LLC,
         a Delaware limited liability company,

         SLT SOUTHFIELD LLC,
         a Delaware limited liability company,

         SLT ST. LOUIS LLC,
         a Delaware limited liability company,

         SLT TUCSON LLC,
         a Delaware limited liability company,

         STARLEX LLC,
         a New York limited liability company,

         STARWOOD ATLANTA II LLC,
         a Delaware limited liability company,

         STARWOOD ATLANTA LLC,
         a Delaware limited liability company,

         STARWOOD MISSION HILLS, L.L.C.,
         a Delaware limited liability company,

         STARWOOD NEEDHAM LLC,
         a Delaware limited liability company,

         STARWOOD WALTHAM LLC,
         a Delaware limited liability company,

         By:      SLT Realty Limited Partnership,
                  a Delaware limited partnership, the managing member of each of
                  the above listed entities

                  By:      Starwood Hotels & Resorts,
                           a Maryland real estate investment trust,
                           its general partner

         By:  /s/ Ronald C. Brown
             ---------------------------------------
              Name:  Ronald C. Brown
              Title: Vice President, Chief Financial
                     Officer and Chief Accounting
                     Officer

<PAGE>   22
         BW HOTEL REALTY, LP,
         a Maryland limited partnership,

         CP HOTEL REALTY, LP,
         a Maryland limited partnership,

         EDISON HOTEL ASSOCIATES, LP,
         a New Jersey limited partnership,

         NOVI HOTEL ASSOCIATES, LP,
         a Delaware limited partnership,

         PARK RIDGE HOTEL ASSOCIATES LP,
         a Delaware limited partnership,

         SLT FINANCING PARTNERSHIP,
         a Delaware general partnership,

         SLT HOUSTON BRIAR OAKS, LP,
         a Delaware limited partnership,

         VIRGINIA HOTEL ASSOCIATES, LP,
         a Delaware limited partnership,

         PRUDENTIAL HEI JOINT VENTURE,
         a Georgia general partnership,

         By:      SLT Realty Limited Partnership,
                  a Delaware limited partnership, the general partner of each of
                  the above listed entities

                  By:      Starwood Hotels & Resorts,
                           a Maryland real estate investment trust,
                           its general partner

                           By:  /s/ Ronald C. Brown
                                ______________________________________________
                                Name:  Ronald C. Brown
                                Title: Vice President, Chief Financial Officer
                                       and Chief Accounting Officer

         HEI HOTELS, L.L.C.,
         a Delaware limited liability company,

         SLC CENTRAL PARK SOUTH, LLC,
         a Delaware limited liability company,

         SLC INDIANAPOLIS LLC,
         a Delaware limited liability company,
<PAGE>   23
         STARWOOD MANAGEMENT COMPANY, LLC,
         a Delaware limited liability company,

         By:      SLC Operating Limited Partnership,
                  a Delaware limited partnership, the managing member of each of
                  the above listed entities

                  By:      Starwood Hotels & Resorts
                           Worldwide, Inc., a Maryland corporation, its
                           general partner

                           By:      /s/ Ronald C. Brown
                                    _____________________________________
                                    Name: Ronald C. Brown
                                    Title: Executive Vice President and CFO

         SLC OPERATING LIMITED PARTNERSHIP,
         a Delaware limited partnership,

         By:      Starwood Hotels & Resorts Worldwide, Inc., a Maryland
                  corporation, its general partner

                  By:      /s/ Ronald C. Brown
                           _____________________________________
                           Name: Ronald C. Brown
                           Title: Executive Vice President and CFO

         MILWAUKEE BROOKFIELD LP,
         a Wisconsin limited partnership,

         By:      SLC Operating Limited Partnership,
                  a Delaware limited partnership, the general partner of each of
                  the above listed entities

                  By:      Starwood Hotels & Resorts Worldwide, Inc.,
                           a Maryland corporation, its general partner

                           By:      /s/ Ronald C. Brown
                                    _____________________________________
                                    Name: Ronald C. Brown
                                    Title: Executive Vice President & CFO

         ITT BROADCASTING CORP.,
         a Delaware corporation

         By:      /s/ Ronald C. Brown
                  _____________________________________
                  Name: Ronald C. Brown
                  Title: Executive Vice President & CFO
<PAGE>   24
         ITT SHERATON CORPORATION,
         a Delaware corporation,

         DESTINATION SERVICES OF SCOTTSDALE, INC.,
         a Delaware corporation,

         GENERAL FIDUCIARY CORPORATION,
         a Massachusetts corporation,

         GLOBAL CONNEXIONS INC.,
         a Delaware corporation,

         ITT SHERATON RESERVATIONS CORPORATION,
         a Delaware corporation,

         MANHATTAN SHERATON CORPORATION,
         a New York corporation,

         SAN DIEGO SHERATON CORPORATION,
         a Delaware corporation,

         SAN FERNANDO SHERATON CORPORATION,
         a Delaware corporation,

         SHERATON 45 PARK CORPORATION,
         a Delaware corporation,

         SHERATON ASIA-PACIFIC CORPORATION,
         a Delaware corporation,

         SHERATON BOSTON CORPORATION
         a Massachusetts corporation,

         SHERATON CALIFORNIA CORPORATION,
         a Delaware corporation,

         SHERATON FLORIDA CORPORATION,
         a Delaware corporation,

         SHERATON HARBOR ISLAND CORPORATION,
         a Delaware corporation,

         SHERATON HARTFORD CORPORATION,
         a Connecticut corporation,

         SHERATON HAWAII HOTELS CORPORATION,
         a Hawaii corporation,
<PAGE>   25
         SHERATON INTERNATIONAL, INC.,
         a Delaware corporation,

         SHERATON INTERNATIONAL DE MEXICO, INC.,
         a Delaware corporation,

         SHERATON MANAGEMENT CORPORATION,
         a Delaware corporation,

         SHERATON OVERSEAS MANAGEMENT CORPORATION,
         a Delaware corporation,

         SHERATON WARSAW CORPORATION,
         a Delaware corporation,

         SHERATON MIAMI CORPORATION,
         a Delaware corporation,

         SHERATON MIDDLE EAST MANAGEMENT CORPORATION,
         a Delaware corporation,

         SHERATON NEW YORK CORPORATION,
         a New York corporation,

         SHERATON OVERSEAS TECHNICAL SERVICES CORPORATION,
         a Delaware corporation,

         SHERATON PEACHTREE CORPORATION,
         a Delaware corporation,

         SHERATON PHOENICIAN CORPORATION,
         a Delaware corporation,

         SHERATON SAVANNAH CORPORATION,
         a Delaware corporation,
<PAGE>   26
         ST. REGIS SHERATON CORPORATION,
         a New York corporation,

         WORLDWIDE FRANCHISE SYSTEMS, INC.,
         a Delaware corporation,

         SHERATON VERMONT CORPORATION,
         a Vermont corporation

         By:      /s/ Ronald C. Brown
                  _______________________________
                  Name: Ronald C. Brown
                  Title: Executive Vice President & CFO

         HUDSON SHERATON CORPORATION LLC,
         a Delaware limited liability company

         By:      ITT SHERATON CORPORATION
                  a Delaware corporation, its managing member

                  By:      /s/ Ronald C. Brown
                           _______________________________
                           Name: Ronald C. Brown
                           Title: Executive Vice President & CFO

         ITT MSG, INC.,
         a Delaware corporation

         By:      /s/ Ronald C. Brown
                  _______________________________
                  Name: Ronald C. Brown
                  Title: Executive Vice President & CFO

         W&S DENVER CORP.,
         a Delaware corporation,

         W&S REALTY CORPORATION OF DELAWARE,
         a Delaware corporation,

         BENJAMIN FRANKLIN HOTEL, INC.,
         a Washington corporation,

         LAUDERDALE HOTEL COMPANY,
         a Delaware corporation,

         WESTIN BAY HOTEL COMPANY,
         a Delaware corporation,

         CINCINNATI PLAZA COMPANY,
         a Delaware corporation,
<PAGE>   27
         SOUTH COAST WESTIN HOTEL COMPANY,
         a Delaware corporation,

         TOWNHOUSE MANAGEMENT INC.,
         a Delaware corporation,

         WVC RANCHO MIRAGE, INC.,
         a Delaware corporation,

         WESTIN ASSET MANAGEMENT COMPANY,
         a Delaware corporation,

         WESTIN HOTEL COMPANY,
         a Delaware corporation,

         W&S ATLANTA CORP.,
         a Delaware corporation,

         By:      /s/ Ronald C. Brown
                  _____________________________
                  Name: Ronald C. Brown
                  Title: Vice President, Chief Financial Officer and Chief
                         Accounting Officer

         WESTIN SEATTLE HOTEL COMPANY,
         a Washington general partnership,

         By:      Benjamin Franklin Hotel, Inc.,
                  its general partner

                  By:      /s/ Ronald C. Brown
                           ___________________________
                           Name: Ronald C. Brown
                           Title: Vice President, Chief Financial Officer and
                                  Chief Accounting Officer

         By:      W&S Realty Corporation of Delaware,
                  its general partner

                  By:      /s/ Ronald C. Brown
                           ___________________________
                           Name: Ronald C. Brown
                           Title: Vice President, Chief Financial Officer and
                                  Chief Accounting Officer

         WESTIN PREMIER, INC.,
         a Delaware corporation,

         WESTIN VACATION MANAGEMENT CORPORATION,
         a Delaware corporation,
<PAGE>   28
         WESTIN VACATION EXCHANGE COMPANY,
         a Delaware corporation

         By:      Starwood Hotels & Resorts Worldwide, Inc.,
                  a Maryland corporation, the sole stockholder of each of the
                  above listed entities

                  By:  /s/ Ronald C. Brown
                   ___________________________________________
                   Name:  Ronald C. Brown
                   Title: Executive Vice President & Chief Financial Officer

         W&S LAUDERDALE CORP.,
         a Delaware corporation,

         W&S SEATTLE CORP.,
         a Delaware corporation,

         By:      SLT Realty Limited Partnership,
                  a Delaware limited partnership, the sole stockholder of each
                  of the above listed entities

         By:      Starwood Hotels & Resorts
                  a Maryland real estate investment trust,
                  its general partner

                  By:  /s/ Ronald C. Brown
                   ___________________________________________
                   Name:  Ronald C. Brown
                   Title: Vice President, Chief Financial Officer,
                          Chief Accounting Officer

         DATA MARKETING ASSOCIATES, INC.,
         a Nevada corporation,

         DATA MARKETING ASSOCIATES EAST, INC.,
         a Florida corporation,
<PAGE>   29
         P.O.C. REALTY, INC.,
         a Colorado corporation,

         THE SUCCESS COMPANIES, INC.,
         a Nevada corporation,

         SUCCESS WEST COMMUNICATIONS, INC.,
         a Nevada corporation,

         VACATION MARKETING SERVICES, INC.,
         a Florida corporation,

         VACATION TITLE SERVICES, INC.,
         a Florida corporation,

         VACATIONWORKS, INC.,
         a Florida corporation,

         VCH COMMUNICATIONS, INC.,
         a Florida corporation,

         VCH CONSULTING, INC.,
         a Florida corporation,

         VCH CONTRACTING, INC.,
         a Florida corporation,

         VCH PORTFOLIO SERVICES, INC.,
         a Florida corporation,

         VCH SALES, INC.,
         a Florida corporation,

         VCH SYSTEMS, INC.,
         a Florida corporation,

         VCH TRADEMARK, INC.,
         a Florida corporation,

         VCM OAKS, INC.,
         a Florida corporation,

         VDI2, INC.,
         a Florida corporation,
<PAGE>   30
         VISTANA ACCEPTANCE CORP.,
         a Florida corporation,

         VISTANA ADMINISTRATION, INC.,
         a Florida corporation,

         VISTANA CAVE CREEK, INC.
         an Arizona corporation,

         VISTANA DEVELOPMENT, INC.,
         a Florida corporation d/b/a
         Vistana Development, Ltd.,

         VISTANA EAST, INC.,
         a Florida corporation,

         VISTANA INTERNATIONAL, INC.,
         a Florida corporation,

         VISTANA MANAGEMENT, INC.,
         a Florida corporation d/b/a
         Vistana Management, Ltd.,

         VISTANA MB MANAGEMENT, INC.,
         a South Carolina corporation,

         VISTANA NJ, INC.,
         a New Jersey corporation,

         VISTANA OP INVESTMENT, INC.,
         a Florida corporation,

         VISTANA PSL, INC.,
         a Florida corporation,

         VISTANA SCOTTSDALE MANAGEMENT, INC.,
         an Arizona corporation,

         VISTANA WEST, INC.,
         a Florida corporation,

         POINTS OF COLORADO, INC.,
         a Colorado corporation,
<PAGE>   31
         VISTANA, INC.,
         a Florida corporation

         By:  /s/ Ronald C. Brown
              ___________________________________________
              Name:  Ronald C. Brown
              Title: Vice President & Assistant Secretary

         SUCCESS OF ARIZONA, L.L.C., an Arizona
         limited liability company,

         SUCCESS OF COLORADO, L.L.C.,
         a Nevada limited liability company,

         FIESTA VACATIONS, L.L.C.,
         an Arizona limited liability company

         By:  Vistana West, Inc., a Florida
              corporation, its Manager

              By:  /s/ Ronald C. Brown
                   ___________________________________________
                   Name:  Ronald C. Brown
                   Title: Vice President & Assistant Secretary

         SUCCESS DEVELOPMENTS, L.L.C.,
         an Arizona limited liability company

         By:      Points of Colorado, Inc., a Colorado
                  corporation, its Manager

                  By:  /s/ Ronald C. Brown
                       ___________________________________________
                       Name:  Ronald C. Brown
                       Title: Vice President & Assistant Secretary

         SUCCESS OF COLORADO REALTY,
         L.L.C., a Nevada limited liability company

         By:      Success of Colorado, L.L.C., a
                  Nevada limited liability company, a member

                  By:      Vistana West, Inc., a Florida
                           corporation, its Manager

                           By:  /s/ Ronald C. Brown
                                ___________________________________________
                                Name:  Ronald C. Brown
                                Title: Vice President & Assistant Secretary
<PAGE>   32
         BANKERS TRUST COMPANY,
         Individually and as Administrative Agent and as Paying Agent

         By:      /s/ Laura S. Burwick
                  _____________________________________
                  Name:  Laura S. Burwick
                  Title: Principal

         THE CHASE MANHATTAN BANK,
         Individually and as Administrative Agent

         By:      /s/ Alan Breindel
                  _____________________________________
                  Name:  Alan Breindel
                  Title: Managing Director

         LEHMAN COMMERCIAL PAPER, INC.,
         Individually and as Syndication Agent

         By:      /s/ G. Andrew Keith
                  _____________________________________
                  Name:  G. Andrew Keith
                  Title: Authorized Signatory

         BANK OF MONTREAL, CHICAGO BRANCH,
         Individually and as Syndication Agent

         By:      /s/ Thomas A. Batterham
                  _____________________________________
                  Name:  Thomas A. Batterham
                  Title: Director
<PAGE>   33
         ARAB BANKING CORPORATION (B.S.C.)

                  /s/ S. Milton
         By:      _____________________________________
                  Name: S. Milton
                  Title: General Manager

         BANCA POPOLARE DI MILANO

                  /s/ Fulvio Montanari
         By:      _____________________________________
                  Name: Fulvio Montanari
                  Title: First Vice President

                  /s/ Patrick F. Dillion
         By:      _____________________________________
                  Name: Patrick F. Dillion
                  Title: Vice President, Chief Credit Officer

         BANKBOSTON, N.A.

                   /s/ Kathleen M. Ahern
         By:      _____________________________________
                  Name: Kathleen M. Ahern
                  Title: Director

         By:      _____________________________________
                  Name:
                  Title:

         BANK OF AMERICA, N.A.

                  /s/ Ansel McDowell
         By:      _____________________________________
                  Name: Ansel McDowell
                  Title: Vice President
<PAGE>   34
         BANK LEUMI USA

                  /s/ Joung Hee Hong
         By:      _____________________________________
                  Name: Joung Hee Hong
                  Title: Vice President

         BANK OF HAWAII

                  /s/ Donna R. Parker
         By:      _____________________________________
                  Name: Donna R. Parker
                  Title: Vice President

         BANK POLSKA KASA OPIEKI S.A. PEKAO S.A.
                  GROUP, NEW YORK BRANCH

                  /s/ Barry W. Henry
         By:      _____________________________________
                  Name: Barry W. Henry
                  Title: Vice President

         THE BANK OF TOKYO-MITSUBISHI, LIMITED,
                  NEW YORK BRANCH

                  /s/ Jay Wallace
         By:      _____________________________________
                  Name: Jay Wallace
                  Title: EVP

         BANQUE WORMS CAPITAL CORP.

                  /s/ Michele N. Reming
         By:      _____________________________________
                  Name: Michele N. Reming
                  Title: VP & General Counsel

                  /s/ J.F. Marco
         By:      _____________________________________
                  Name: J.F. Marco
                  Title: AVP
<PAGE>   35
         BARCLAYS BANK PLC

         By:      /s/ John Giannone
                  _____________________________________
                  Name:  John Giannone
                  Title: Director

         BEAR STEARNS INVESTMENT PRODUCTS INC.

         By:      /s/ Keith C. Barnard
                  _____________________________________
                  Name:  Keith C. Barnard
                  Title: Senior Managing Director

         CHANG HWA COMMERCIAL BANK, LTD.,
                  NEWYORK BRANCH

         By:      _____________________________________
                  Name:
                  Title:

         CHIAO TUNG BANK CO., LTD.
                  NEW YORK AGENCY

         By:      _____________________________________
                  Name:
                  Title:

         CIBC INC.

         By:      /s/ Paul J. Chakmak
                  _____________________________________
                  Name:  Paul J. Chakmak
                  Title: Managing Director
                         CIBC World Markets Corp., AS AGENT

<PAGE>   36
         CREDIT INDUSTRIEL et COMMERCIAL

         By:      /s/Sean Mounier
                  -------------------------------------
                  Name:  Sean Mounier
                  Title: First Vice President

         By:      /s/ Brian O'Leary
                  -------------------------------------
                  Name:  Brian O'Leary
                  Title: Vice President

         CREDIT LYONNAIS NEW YORK BRANCH

         By:      /s/ Mary P. Daly
                  -------------------------------------
                  Name:  Mary P. Daly
                  Title: Vice President

         CREDIT SUISSE FIRST BOSTON

         By:
                  --------------------------------------
                  Name:
                  Title:

         THE DAI-ICHI KANGYO BANK, LIMITED,
                  NEW YORK BRANCH

         By:      /s/ Chimie T. Pemba
                  -------------------------------------
                  Name:  Chimie T. Pemba
                  Title: Account Officer
<PAGE>   37
         DEUTSCHE BANK AG NEW YORK AND/OR
                  CAYMAN ISLANDS BRANCH

         By:
                  _____________________________________
                  Name:
                  Title:

         By:
                  _____________________________________
                  Name:
                  Title:

         ERSTE BANK DER OESTERREICHISCHEN
                  SPARKASSEN AG

         By:      /s/ Paul Judicke
                  _____________________________________
                  Name:  Paul Judicke
                  Title: Vice President
                         Erste Bank New York Branch

         By:      /s/ John S. Runnion
                  _____________________________________
                  Name:  John S. Runnion
                  Title: First Vice President

         FIRST COMMERCIAL BANK

         By:      /s/ Vincent T.C. Chen
                  _____________________________________
                  Name:  Vincent T.C. Chen
                  Title: Senior Vice President &
                         General Manager

         FIRST HAWAIIAN BANK

         By:      /s/ Jeffrey N. Migashi
                  _____________________________________
                  Name:  Jeffrey N. Migashi
                  Title: Assistant Vice President
<PAGE>   38
         FIRST SECURITY BANK, N.A.

         By:      /s/ David P. Williams
                  _____________________________________
                  Name:  David P. Williams
                  Title: Vice President

         FLEET BANK, N.A.

         By:      /s/ John T. Harrison
                  _____________________________________
                  Name:  John T. Harrison
                  Title: Senior Vice President

         GENERAL ELECTRIC CAPITAL CORPORATION

         By:      /s/ William E. Magee
                  _____________________________________
                  Name:  William E. Magee
                  Title: Duly Authorized Signatory

         GOLDMAN SACHS CREDIT PARTNERS L.P.

         By:      /s/ Robert S. Fanelli
                  _____________________________________
                  Name:  Robert S. Fanelli
                  Title: Authorized Signatory

         GULF INTERNATIONAL BANK B.S.C.

         By:
                  _____________________________________
                  Name:
                  Title:

         HUA NAN COMMERCIAL BANK, LTD.
                  NEW YORK AGENCY

         By:      /s/ Derek Y.P. Chang
                  _____________________________________
                  Name:  Derek Y.P. Chang
                  Title: SVP & General Manager
<PAGE>   39
         INDOSUEZ CAPITAL FUNDING IIA LIMITED
         By:      INDOSUEZ CAPITAL, as Portfolio Manager

         By:      /s/ Melissa Marano
                  _____________________________________
                  Name: Melissa Marano
                  Title: Vice President

         INDOSUEZ CAPITAL FUNDING III LIMITED
         By:      INDOSUEZ CAPITAL, as Portfolio Manager

         By:      /s/ Melissa Marano
                  _____________________________________
                  Name: Melissa Marano
                  Title: Vice President

         THE INDUSTRIAL BANK OF JAPAN, LIMITED
                  NEW YORK BRANCH

         By:      /s/ William Kennedy
                  _____________________________________
                  Name: William Kennedy
                  Title: Senior Vice President

         KZH CNC LLC

         By:      /s/ Peter Chin
                  _____________________________________
                  Name: Peter Chin
                  Title: Authorized Agent

         LAND BANK OF TAIWAN,
                  LOS ANGELES BRANCH

         By:      /s/ Mayer Chen
                  _____________________________________
                  Name: Mayer Chen
                  Title: SVP & General Manager
<PAGE>   40
         MELLON BANK, N.A., solely in its capacity as Trustee for the GENERAL
         MOTORS CASH MANAGEMENT MASTER TRUST, (as directed by Shenkman Capital
         Management, Inc.), and not in its individual capacity

         By:      _____________________________________
                  Name:
                  Title:

         THE MITSUBISHI TRUST & BANKING CORPORATION

         By:      /s/ Toshihiro Hayashi
                  _____________________________________
                  Name: Toshihiro Hayashi
                  Title: Senior Vice President

         PARIBAS

         By:      /s/ John W. Kopcha
                  _____________________________________
                  Name: John W. Kopcha
                  Title: Director

         By:      /s/ Sean T. Conlon
                  _____________________________________
                  Name: Sean T. Conlon
                  Title: Managing Director

         THE ROYAL BANK OF SCOTLAND, PLC

         By:      _____________________________________
                  Name:
                  Title:

         SAN PAOLO IMI S.P.A.

         By:      /s/ Carlo Persico  /s/ Robert Wurster
                  _____________________________________
                  Name: Carlo Persico    Robert Wurster
                  Title: DGM             1st V.P.
<PAGE>   41
         SEQUILS I, LTD.
         By:      TCW Advisors, Inc. as its Collateral Manager

         By:      /s/ Mark L. Gold
                  _____________________________________
                  Name: Mark L. Gold
                  Title: Managing Director

         By:      /s/ Richard F. Kurth
                  _____________________________________
                  Name: Richard F. Kurth
                  Title: Vice President

         SOCIETE GENERALE, SOUTHWEST AGENCY

         By:      /s/ Huvishka Ali
                  _____________________________________
                  Name: Huvishka Ali
                  Title: Vice President

         SOUTHERN PACIFIC BANK

         By:      /s/ Mun Young Kim
                  _____________________________________
                  Name: Mun Young Kim
                  Title: Vice President

         THE SUMITOMO BANK, LIMITED,
                  NEW YORK BRANCH

         By:      /s/ Suresh S. Tata
                  _____________________________________
                  Name: Suresh S. Tata
                  Title: Senior Vice President
<PAGE>   42
         SYNDICATED LOAN FUNDING TRUST
         By:      Lehman Commercial Paper Inc., not in its
                  individual capacity, but solely as Asset Manager

         By:      /s/ G. Andrew Keith
                  -------------------------------------
                  Name:  G. Andrew Keith
                  Title: Authorized Signatory

         UNICREDITO ITALIANO

         By:      /s/ Gianfranco Bisagni
                  -------------------------------------
                  Name:  Gianfranco Bisagni
                  Title: First Vice President

         By:      /s/ Saiyed A. Abbas
                  -------------------------------------
                  Name:  Saiyed A. Abbas
                  Title: Vice President

         VAN KAMPEN SENIOR FLOATING RATE FUND
         By:      Van Kampen Investment Advisory Corp.

         By:      /s/ Darvin D. Pierce
                  -------------------------------------
                  Name:  Darvin D. Pierce
                  Title: Vice President

         VAN KAMPEN PRIME RATE INCOME TRUST
         By:      Van Kampen Investment Advisory Corp.

         By:      /s/ Darvin D. Pierce
                  -------------------------------------
                  Name:  Darvin D. Pierce
                  Title: Vice President
<PAGE>   43
         VAN KAMPEN CLO I, LIMITED
         By:      VAN KAMPEN MANAGEMENT INC.,
                  as Collateral Manager

         By:      /s/ Darvin D. Pierce
                  _____________________________________
                  Name:  Darvin D. Pierce
                  Title: Vice President

         VAN KAMPEN SENIOR INCOME TRUST
         By:      Van Kampen Investment Advisory Corp.

         By:      /s/ Darvin D. Pierce
                  _____________________________________
                  Name:  Darvin D. Pierce
                  Title: Vice President

         WACHOVIA BANK, N.A.

         By:      /s/ C. Reid Harden
                  _____________________________________
                  Name:  C. Reid Harden
                  Title: Vice President

         WESTDEUTSCHE LANDESBANK GIROZENTRALE

         By:      /s/ Frank A. Anderson
                  _____________________________________
                  Name:  Frank A. Anderson
                  Title: Director

         By:      /s/ Andrew B. Stein
                  _____________________________________
                  Name:  Andrew B. Stein
                  Title: Managing Director
<PAGE>   44
         SENIOR DEBT PORTFOLIO
         By:      Boston Management and Research,
                  as Investment Advisor

         By:      _____________________________________
                  Name:
                  Title:

         OXFORD STRATEGIC INCOME FUND
         By:      EATON VANCE MANAGEMENT,
                  as Investment Advisor

         By:      _____________________________________
                  Name:
                  Title:

         EATON VANCE SENIOR INCOME TRUST
         By:      EATON VANCE MANAGEMENT,
                  as Investment Advisor

         By:      _____________________________________
                  Name:
                  Title:

         EATON VANCE INSTITUTIONAL SENIOR LOAN FUND
         By:      EATON VANCE MANAGEMENT,
                  as Investment Advisor

         By:      _____________________________________
                  Name:
                  Title:
<PAGE>   45
                                     ANNEX I
           Excerpts of Financial Covenants under the CIGA Bridge Loan

(1)      So long as any CIGA Commitment is in force or any moneys or obligations
         of the CIGA Borrower are outstanding under the CIGA Bridge Loan, the
         CIGA Borrower undertakes that its Financial Indebtedness, plus the
         Financial Indebtedness of the CIGA Group, will not exceed 4.50 (four
         and a half) times the consolidated EBITDA of the CIGA Group for each
         prior 12 calendar month period occurring after July 1, 2000;

(2)      The CIGA Borrower also undertakes that, during the term of the CIGA
         Bridge Loan, CIGA will maintain a Tangible Net Worth of at least EUR
         465,000,000 (four hundred and sixty five Million Euros);

(3)      The CIGA Borrower also undertakes that, during the term of the CIGA
         Bridge Loan, the amount of Indebtedness of the CIGA Group secured by an
         Encumbrance on assets will represent no more than 35% of the total
         combined Financial Indebtedness (including the CIGA Bridge Loan) of the
         CIGA Borrower and the CIGA Group, it being understood that no such
         Encumbrance shall be created to secure financing that would not be
         directly applied to the purchase or the improvement of the owned
         property of the CIGA Group; and

(4)      So long as any CIGA Commitment is in force or any moneys or obligations
         are outstanding under the CIGA Bridge Loan, the Guarantors undertake to
         comply with the financial covenants set forth in Section 9.08 (Combined
         Interest Coverage Ratio), Section 9.09 (Maximum Combined Leverage
         Ratio), Section 9.10 (Combined Adjusted Interest Coverage Ratio), and
         Section 9.23 (Unencumbered EBITDA Ratio) of the Credit Agreement, in
         each case, as the same may be amended or modified from time to time.

As used in this ANNEX I only, the following terms shall have the following
meanings:

"CIGA COMMITMENT" means the commitment of each CIGA Lender to make available,
through the Facility Agent, the Facility Amount on the terms and conditions of
the CIGA Bridge Loan.

"CIGA GROUP" means CIGA and its Subsidiaries.

"CIGA GUARANTORS" means, collectively, Starwood Hotels & Resorts Worldwide, Inc.
and Starwood Hotels & Resorts.

"EBITDA" means Earnings Before Interest, Income Taxes, Depreciation and
Amortization, excluding any extraordinary item and calculated in accordance with
U.S. GAAP; provided that EBITDA shall be computed on a pro-forma basis to
exclude the EBITDA actually derived during the computation period from assets of
the CIGA Group sold or otherwise disposed of.

"ENCUMBRANCE" means any mortgage, charge (whether fixed or floating), pledge,
lien, hypothecation, assignment by way of security, title, retention or other
security interest of any kind other than liens arising by operation of law.
<PAGE>   46
"FACILITY AGENT" means Credit Lyonnais SA, a societe anonyme, duly organized
under the laws of France.

"FACILITY AMOUNT" means the total amount of Euros that the CIGA Lenders, through
the Facility Agent, will make available to the CIGA Borrower for drawdown
according to the terms and conditions of the CIGA Bridge Loan.

"FINANCIAL INDEBTEDNESS" means indebtedness incurred in respect of:

(a) money borrowed or raised (excluding money raised by way of the issue of
equity share capital);

(b) any bond, bill of exchange, note, loan stock, debenture, commercial paper or
similar security or instrument;

(c) acceptance, documentary credit or guarantee facilities;

(d) deferred payments for assets or services acquired (excluding any such
liability in respect of normal trade credit), for a period not exceeding twelve
months;

(e) rental payments under finance leases;

(f) payments under hire purchase contracts;

(g) factored debts, to the extent that there is recourse;

(h) guarantees, bonds, standby letters of credit or other instruments issued in
connection with the performance of contracts;

(i) guarantees, indemnities or other assurances against financial loss in
respect of indebtedness of any person falling within any of paragraphs (a) to
(h) inclusive above, excluding any mortgages securing medium and long term loans
already included in this definition; and

(j) amounts raised or obligations incurred under any other transaction having
the commercial effect of any of the above.

"INDEBTEDNESS" means any obligation for the payment or repayment of money,
whether present or future, actual or contingent, sole or joint.

"STARWOOD GROUP" means Starwood Hotels & Resorts Worldwide, Inc. and Starwood
Hotels & Resorts and their Subsidiaries.

"TANGIBLE NET WORTH" means the shareholders' equity composed of: (i) share
capital; (ii) share premium reserves; (iii) retained earnings or deficit; (iv)
income of the year, decreased by (a) the intangible assets and (b) the amount of
intercompany loans made by the CIGA Borrower or any company of the CIGA Group to
any company of the Starwood Group that is not the CIGA Borrower or a company of
the CIGA Group; provided that for the purpose of clause (b) above, the
calculation of intercompany loans will be the amount of intercompany loans made
after the date of the CIGA Bridge Loan in excess of EUR 45,000,000 (forty-five
million Euros). In addition, any intercompany loans made by the CIGA Borrower to
any Subsidiary of the Starwood Group from the proceeds of the CIGA Bridge Loan
will not impact this calculation.

                                 Annex I, page 2
<PAGE>   47
                                    ANNEX II

                          FORM OF ASSUMPTION AGREEMENT

                                                               Date: ___________

                  Reference is made to the Credit Agreement described in Item 2
of Annex II-A hereto (as such Credit Agreement may hereafter be amended,
supplemented or otherwise modified from time to time, the "Credit Agreement").
Unless defined in Annex II-A hereto, terms defined in the Credit Agreement are
used herein as therein defined. Each of Starwood Hotels & Resorts, a Maryland
real estate investment trust ("Starwood REIT"), SLT Realty Limited Partnership,
a Delaware limited partnership ("SLT RLP"), Starwood Hotels & Resorts Worldwide,
Inc., a Maryland corporation (the "Corporation") and ITT Corporation, a Nevada
corporation ("ITT" and, together with Starwood REIT, SLT RLP and the
Corporation, the "Starwood Entities") and _______________________ (the "New
Lender") hereby agree as follows:

                  1. In accordance with the terms of the Credit Agreement (and
the Tenth Amendment thereto) the New Lender hereby acknowledges and agrees that
it hereby makes a New Tranche II Term Loan Commitment (as defined in the Tenth
Amendment) in the amount specified in Item 4 of Annex II-A hereto. The New
Lender further agrees to make Tranche II Term Loans (which shall constitute New
Tranche II Term Loans) pursuant to its New Commitment (as defined in the Tenth
Amendment) in accordance with the requirements of the Credit Agreement and the
Tenth Amendment.

                  2. As more fully provided in Section 7 of the Tenth Amendment,
the New Lender hereby acknowledges and agrees that, to the extent provided in
said Section 7, various repayments of outstanding Tranche II Term Loans shall be
allocated to the Existing Tranche II Term Loans and not to the New Tranche II
Term Loans. The New Lender is aware that Section 7 of the Tenth Amendment
provides certain overriding provisions with respect to the Existing Tranche II
Term Loans and the New Tranche II Term Loans, and is familiar with the terms
thereof. Furthermore, the New Lender agrees to keep records of its outstanding
New Tranche II Term Loans as opposed to the outstanding principal of its
Existing Tranche II Term Loans, if any, and agrees that if it makes any
assignment or participation of any Tranche II Term Loans it shall clearly
provide in the relevant documentation whether (and to what extent) the
assignment is of Existing Tranche II Term Loans and/or New Tranche II Term Loans
and shall inform the assignee or participant, as the case may be, of the
provisions of Section 7 of the Tenth Amendment.

                  3. The New Lender acknowledges and agrees that no Agent and no
other Lender (i) makes any representation or warranty or assumes any
responsibility with respect to the financial condition of the Parent Companies
or any of their Subsidiaries or the performance or observance by the Parent
Companies or any of their Subsidiaries of any of their respective obligations
under the Credit Agreement or the other Credit Documents to which they are a
party or any other instrument or document furnished pursuant thereto or (ii)
makes any representation or warranty or assumes any responsibility with respect
to any statements, warranties or representations made in or in connection with
the Credit Agreement or the other Credit
<PAGE>   48
Documents or the execution, legality, validity, enforceability, genuineness,
sufficiency or value of the Credit Agreement or the other Credit Documents or
any other instrument or document furnished pursuant thereto.

                  4. The New Lender (i) confirms that it has received a copy of
the Credit Agreement and the other Credit Documents, together with copies of the
financial statements referred to therein and such other documents and
information as it has deemed appropriate to make its own credit analysis and
decision to enter into this Assumption Agreement; (ii) agrees that it will,
independently and without reliance upon the Administrative Agents or any other
Lender and based on such documents and information as it shall deem appropriate
at the time, continue to make its own credit decisions in taking or not taking
action under the Credit Agreement; (iii) confirms that it is an Eligible
Transferee as defined in the Credit Agreement; (iv) appoints and authorizes the
Administrative Agents and the Collateral Agent to take such action as agent on
its behalf and to exercise such powers under the Credit Agreement and the other
Credit Documents as are delegated to the Administrative Agents and the
Collateral Agent, by the terms thereof, together with such powers as are
reasonably incidental thereto; [and] (v) agrees that it will perform in
accordance with their terms all of the obligations which by the terms of the
Credit Agreement and the other Credit Documents are required to be performed by
it as a Lender; [and (vi) to the extent legally entitled to do so, attaches the
forms described in Section 13.04(b) of the Credit Agreement.(1)

                  5. Following the execution of this Assumption Agreement by the
Starwood Entities and the New Lender, an executed original hereof (together with
all attachments) will be delivered to the Paying Agent. The effective date of
this Assumption Agreement shall be the date of execution hereof by the Starwood
Entities and the New Lender, the receipt of the consent of the Paying Agent. the
receipt by the Paying Agent of the administrative fee referred to in Section
13.04(b) of the Credit Agreement and the recordation of the assignment effected
hereby on the Register by the Paying Agent as provided in Section 13.15 of the
Credit Agreement, or such later date, if any, which may be specified in Item 5
of Annex II-A hereto (the "New Commitment Effective Date").

                  6. Upon the delivery of a fully executed original hereof to
the Paying Agent, as of the New Commitment Effective Date, the New Lender shall
be a party to the Credit Agreement and, to the extent provided in this
Assumption Agreement, have the rights and obligations of a Lender thereunder and
under the other Credit Documents.

                  7. It is agreed that the New Lender shall be entitled to (x)
interest on the Loans made by it and (y) Commitment Commission (if applicable)
on the New Lender's participation in all Letters of Credit, in each case at the
rates specified in the Credit Agreement, for periods after such extensions of
credit are made by such New Lender pursuant to this Assumption Agreement and the
terms of the Credit Agreement..

-----------------------
(1) Include if the New Lender is organized under the laws of a jurisdiction
outside of the United States.

                                Annex II, page 2
<PAGE>   49
                  8. THIS ASSUMPTION AGREEMENT SHALL BE GOVERNED BY, AND
CONSTRUED IN ACCORDANCE WITH, THE LAWS OF THE STATE OF NEW YORK.

                                Annex II, page 3
<PAGE>   50
                  IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Assumption Agreement, as of the
date first above written, such execution also being made on Annex II-A hereto.

  Accepted this ____ day

  of __________, 19__

                                    STARWOOD HOTELS & RESORTS,
                                    a Maryland real estate investment trust

                                    By:_______________________________
                                       Name:
                                      Title:

                                    STARWOOD HOTELS & RESORTS WORLDWIDE, INC.,
                                    a Maryland corporation

                                    By:_______________________________
                                       Name:
                                      Title:

                                    SLT REALTY LIMITED PARTNERSHIP,
                                    a Delaware limited partnership

                                    By:  Starwood Hotels & Resorts, a Maryland
                                         real estate investment trust, its
                                         general partner

                                    By:_______________________________
                                         Name:
                                         Title:

                                    ITT CORPORATION, a Nevada corporation

                                    By:_______________________________
                                         Name:
                                         Title:

                                Annex II, page 4
<PAGE>   51
                              [NAME OF NEW LENDER],

                                       as a New Lender

                                       By_____________________________

                                         Title:

Acknowledged and Agreed as of _________ ___, 19__:

BANKERS TRUST COMPANY,
    as Paying Agent

By__________________________
    Title:

                                Annex II, page 5
<PAGE>   52
                       ANNEX II-A FOR ASSUMPTION AGREEMENT

1.       Borrowers:                 Starwood Hotels & Resorts Worldwide, Inc.
                                    ITT Corporation

2.       Name and Date of Credit Agreement:

         Credit Agreement, dated as of February 23, 1998, among Starwood Hotels
         & Resorts, SLT Realty Limited Partnership, Starwood Hotels & Resorts
         Worldwide, Inc., ITT Corporation (as successor in interest to Chess
         Acquisition Corp.), each Alternate Currency Revolving Loan Borrower
         from time to time party thereto, the Lenders from time to time party
         thereto, Bankers Trust Company and The Chase Manhattan Bank, as
         Administrative Agents, and Lehman Commercial Paper Inc. and Bank of
         Montreal, as Syndication Agents, as amended, modified or supplemented
         to the date hereof.

3.       Date of Assumption Agreement:

4.       Amounts of Tranche II Term Loans as of date of item #3 above (other
extensions of credit, including pursuant to the Revolving Loan Commitments, may
also be outstanding under the Credit Agreement):

Tranche II Term Loans

i. Aggregate Outstanding         $__________
Principal  Amount for all
Lenders (before giving effect
to New Commitment Effective
Date)

ii. New Tranche II Term Loan     $__________
Commitment of  New Lender

                                Annex II, page 6
<PAGE>   53
5.       New Commitment Effective Date:

6.       Notice:

                  NEW LENDER:

                            ---------------------

                            ---------------------

                            ---------------------

                            ---------------------

                            Attention:

                            Telephone:

                            Telecopier:

                            Reference:

                  Payment Instructions:

                     NEW LENDER:

                            ---------------------

                            ---------------------

                            ---------------------

                            ---------------------

                            Attention:

                            Reference:

                                Annex II, page 7
<PAGE>   54
Accepted and Agreed:

[NAME OF NEW LENDER]
By                                          STARWOOD HOTELS & RESORTS,
  ----------------------------------        a Maryland real estate investment
                                            trust

                                            By:_______________________________
                                               Name:
                                              Title:

                                            STARWOOD HOTELS & RESORTS WORLDWIDE,
                                            INC., a Maryland corporation

                                            By:_______________________________
                                               Name:
                                              Title:

                                            SLT REALTY LIMITED PARTNERSHIP,
                                            a Delaware limited partnership

                                            By:  Starwood Hotels & Resorts, a
                                                 Maryland real estate investment
                                                 trust, its general partner

                                            By:_______________________________
                                                 Name:
                                                 Title:

                                            ITT CORPORATION, a Nevada
                                            corporation

                                            By:_______________________________
                                               Name:
                                              Title:

                                Annex II, page 8<PAGE>   1
                                                                 Exhibit 10.56

                                     TIER I
                               SEVERANCE AGREEMENT

                  THIS AGREEMENT, dated August 14, 2000 (the "Effective Date"),
is made by and between Starwood Hotels and Resorts Worldwide, Inc., a Maryland
corporation (the "Company"), and Robert F. Cotter (the "Executive").

                  WHEREAS, the Executive is employed by the Company as Chief
Operating Officer; and

                  WHEREAS, the Company considers it essential to the best
interests of its stockholders to foster the continued employment of key
management personnel; and

                  WHEREAS, the Board recognizes that, as is the case with many
publicly held corporations, the possibility of a Change in Control exists and
that such possibility, and the uncertainty and questions which it may raise
among management, may result in the departure or distraction of senior
management personnel to the detriment of the Company and its stockholders; and

                  WHEREAS, the Board has determined that appropriate steps
should be taken to reinforce and encourage the continued attention and
dedication of members of the Company's senior management, including the
Executive, to their assigned duties without distraction in the face of
potentially disturbing circumstances arising from the possibility of a Change in
Control.

                  NOW, THEREFORE, the Company and the Executive hereby agree as
follows:

         1. Defined Terms. The definitions of capitalized terms used in this
Agreement are provided in the last Section hereof.

         2. Term of Agreement. The Term of this Agreement shall commence on the
Effective Date and shall continue in effect through the third anniversary of the
Effective Date; provided, however, that on each anniversary of the Effective
Date during the Term of this Agreement, the Term shall automatically be extended
for one additional year unless, not later than 90 days prior to any such
anniversary, the Company or the Executive shall have given notice not to extend
the Term; and further provided, however, that if a Change in Control or a
Potential Change in Control shall have occurred during the Term, the Term shall
expire no earlier than twenty-four (24) months beyond the month in which such
Change in Control or a Potential Change in Control occurred.

         3. Company's Covenants Summarized. In order to induce the Executive to
remain in the employ of the Company and in consideration of the Executive's
covenants set forth in Section 4 hereof, the Company agrees, under the
conditions
<PAGE>   2
described herein, to pay the Executive the Severance Payments and the other
payments and benefits described herein. Except as provided in Section 10 hereof,
no Severance Payments shall be payable under this Agreement unless during the
Term there shall have been (or, under the terms of the second sentence of
Section 6 hereof, there shall be deemed to have been) a termination of the
Executive's employment with the Company following a Change in Control. This
Agreement shall not be construed as creating an express or implied contract of
employment and, except as otherwise agreed in writing between the Executive and
the Company, the Executive shall not have any right to be retained in the employ
of the Company.

         4. The Executive's Covenants. The Executive agrees that, subject to the
terms and conditions of this Agreement, in the event a Potential Change in
Control occurs during the Term, the Executive will remain in the employ of the
Company until the earliest of (i) a date which is six (6) months from the date
of such Potential Change of Control, (ii) the date of a Change in Control, (iii)
the date of termination by the Executive of the Executive's employment for Good
Reason or by reason of death, Disability or Retirement, or (iv) the termination
by the Company of the Executive's employment for any reason.

         5. Compensation Other Than Severance Payments.

                  a. Payment of Salary During Disability. Following a Change in
Control and during the Term, during any period that the Executive is unable to
perform the Executive's full-time duties with the Company as a result of
incapacity due to physical or mental illness, the Company shall pay to the
Executive the full salary to which the Executive is entitled at the rate in
effect at the commencement of any such period, together with all compensation
and benefits payable to the Executive under the terms of any compensation or
benefit plan, program or arrangement maintained by the Company during such
period, until the Executive's employment is terminated by the Company for
Disability.

                  b. Accrued Salary. If the Executive's employment shall be
terminated for any reason following a Change in Control and during the Term, the
Company shall pay to the Executive such Executive's full salary through the Date
of Termination at the rate in effect immediately prior to the Date of
Termination or, if higher, the rate in effect immediately prior to the first
occurrence of an event or circumstance constituting Good Reason, together with
all compensation and benefits payable to the Executive through the Date of
Termination under the terms of the Company's compensation and benefit plans,
programs or arrangements as in effect immediately prior to the Date of
Termination or, if more favorable to the Executive, as in effect immediately
prior to the first occurrence of an event or circumstance constituting Good
Reason.

                                       2
<PAGE>   3
                  c. Post-Termination Benefits. If the Executive's employment
shall be terminated for any reason following a Change in Control and during the
Term, the Company shall pay to the Executive the Executive's normal
post-termination compensation and benefits as such payments become due. Such
post-termination compensation and benefits shall be determined under, and paid
in accordance with, the Company's retirement, insurance and other compensation
or benefit plans, programs and arrangements as in effect immediately prior to
the Date of Termination or, if more favorable to the Executive, as in effect
immediately prior to the occurrence of the first event or circumstance
constituting Good Reason.

         6. Severance Payments.

                  a. If (i) the Executive's employment is terminated following a
Change in Control and during the Term, other than (A) by the Company for Cause,
(B) by reason of death or Disability, or (C) by the Executive without Good
Reason, or (ii) the Executive voluntarily terminates his employment for any
reason during the one-month period commencing twelve (12) months following a
Change in Control, then, in either such case, the Company shall pay the
Executive the amounts, and provide the Executive the benefits, described in this
Section 6 ("Severance Payments") and Section 7, in addition to any payments and
benefits to which the Executive is entitled under Section 5 hereof. For purposes
of this Agreement, the Executive's employment shall be deemed to have been
terminated following a Change in Control by the Company without Cause or by the
Executive with Good Reason, if (i) the Executive's employment is terminated by
the Company without Cause prior to a Change in Control (whether or not a Change
in Control ever occurs) and such termination was at the request or direction of
a Person who has entered into an agreement with the Company the consummation of
which would constitute a Change in Control (an "Acquiring Person"), (ii) the
Executive terminates his employment for Good Reason prior to a Change in Control
(whether or not a Change in Control ever occurs) and the circumstance or event
which constitutes Good Reason occurs at the request or direction of an Acquiring
Person, or (iii) the Executive's employment is terminated by the Company without
Cause or by the Executive for Good Reason and such termination or the
circumstance or event which constitutes Good Reason is otherwise in connection
with or in anticipation of a Change in Control (whether or not a Change in
Control ever occurs). For purposes of any determination regarding the
applicability of the immediately preceding sentence, any position taken by the
Executive shall be presumed to be correct unless the Company establishes to the
Board by clear and convincing evidence that such position is not correct.

                      (1) Lump Sum Payment. In lieu of any further salary
         payments to the Executive for periods subsequent to the Date of
         Termination and in lieu of any severance benefit otherwise payable to
         the Executive, the

                                       3
<PAGE>   4
         Company shall pay to the Executive a lump sum severance payment, in
         cash, equal to three times the sum of (i) the Executive's base salary
         as in effect immediately prior to the Date of Termination or, if
         higher, in effect immediately prior to the first occurrence of an event
         or circumstance constituting Good Reason, and (ii) the average of the
         annual bonuses earned by the Executive in the three fiscal years ending
         immediately prior to the fiscal year in which occurs the Date of
         Termination or, if higher, immediately prior to the fiscal year in
         which occurs the first event or circumstance constituting Good Reason.
         For purposes of the preceding sentence, in determining any bonus amount
         for any fiscal year, bonuses paid with respect to any year in which
         employment of the Executive commenced shall be annualized based on the
         number of days employed by the Company during such year.

                      (2) Continuation of Welfare Benefits. For the twenty-four
         (24) month period immediately following the Date of Termination, the
         Company shall arrange to provide the Executive and his dependents life,
         disability, accident and health insurance benefits and other benefits
         and perquisites (including employee stay rates) substantially similar
         to those provided to the Executive and his dependents immediately prior
         to the Date of Termination or, if more favorable to the Executive,
         those provided to the Executive and his dependents immediately prior to
         the first occurrence of an event or circumstance constituting Good
         Reason, at no greater cost to the Executive than the cost to the
         Executive immediately prior to such date or occurrence. Benefits
         otherwise receivable by the Executive pursuant to this Section 6(a)(2)
         shall be reduced to the extent benefits of the same type are received
         by the Executive from another employer during the twenty-four (24)
         month period following the Executive's termination of employment;
         provided, however, that the Company shall reimburse the Executive for
         the excess, if any, of the cost of such benefits to the Executive over
         such cost immediately prior to the Date of Termination or, if more
         favorable to the Executive, the first occurrence of an event or
         circumstance constituting Good Reason.

                      (3) Incentive Compensation. Notwithstanding any provision
         of any annual or long-term incentive plan to the contrary, the Company
         shall pay to the Executive a lump sum amount, in cash, equal to the sum
         of (i) any unpaid incentive compensation which has been allocated or
         awarded to the Executive for a completed fiscal year or other measuring
         period preceding the Date of Termination under any such plan and which,
         as of the Date of Termination, is contingent only upon the continued
         employment of the Executive to a subsequent date, and (ii) the
         aggregate value of all contingent incentive compensation awards
         allocated or awarded

                                       4
<PAGE>   5
         to the Executive for all then uncompleted periods under any such plan
         that the Executive would have earned on the last day of the performance
         award period, assuming the achievement, at the target level, of the
         individual and corporate performance goals established with respect to
         such award. Awards for uncompleted periods shall be based upon the
         number of days the Executive is employed by the Company during such
         year.

                      (4) Accelerated Vesting of Stock Options. All stock
         options and restricted stock held by the Executive under any stock
         option or incentive plan maintained by the Company (including the
         Company's 1995 and 1999 Long-Term Incentive Plans) shall immediately
         vest and become exercisable as of the Date of Termination, to be
         exercised in accordance with the terms of the applicable plan.

                      (5) Outplacement Services. The Company shall provide the
         Executive with outplacement services suitable to the Executive's
         position for a period of two (2) years or, if earlier, until the first
         acceptance by the Executive of an offer of employment. The cost of such
         outplacement services shall not exceed twenty percent (20%) of the
         Executive's base salary.

                      (6) Deferred Compensation. The Company shall pay the
         Executive a lump sum payment of any of the Executive's deferred
         compensation.

                      (7) 401(k) Contributions. All unvested 401(k)
         contributions in the Executive's 401(k) account shall immediately vest
         or the Company shall pay the Executive an amount equal to any such
         unvested amounts that are forfeited by reason of the Executive's
         termination of employment.

                      (8) Loans. The Company shall forgive in full any home or
         relocation loans from the Company to the Executive, identified on
         Schedule A hereto, that are outstanding as of the Date of Termination
         and execute and record any instruments and documents necessary or
         desirable to evidence the satisfaction in full of such loans and the
         release of any lien securing such loan. In addition, the Company shall
         pay to Executive an amount required, in the good faith estimate of
         Executive's tax advisor, to permit Executive to pay any income tax
         incurred by Executive as a result of such loan forgiveness and the
         payment of such additional amounts by the Company.

                                       5
<PAGE>   6
         7. 280G Gross Up Payments.

                  a. Whether or not the Executive becomes entitled to the
Severance Payments, if any of the payments or benefits received or to be
received by the Executive in connection with a Change in Control or the
Executive's termination of employment (whether pursuant to the terms of this
Agreement or any other plan, arrangement or agreement with the Company, any
Person whose actions result in a Change in Control or any Person affiliated with
the Company or such Person) (such payments or benefits, excluding the Gross-Up
Payment, being hereinafter referred to as the "Total Payments") will be subject
to the Excise Tax, the Company shall pay to the Executive an additional amount
(the "Gross-Up Payment") such that the net amount retained by the Executive,
after deduction of any Excise Tax on the Total Payments and any federal, state
and local income and employment taxes and Excise Tax upon the Gross-Up Payment,
shall be equal to the Total Payments.

                  b. For purposes of determining whether any of the Total
Payments will be subject to the Excise Tax and the amount of any such Excise
Tax, (i) all of the Total Payments shall be treated as "parachute payments"
(within the meaning of section 280G(b)(2) of the Code) unless tax counsel ("Tax
Counsel") reasonably acceptable to the Executive and selected by the accounting
firm which was, immediately prior to the Change in Control, the Company's
independent auditor (the "Auditor"), delivers an opinion to the Executive that
such payments or benefits (in whole or in part) do not constitute parachute
payments, including by reason of section 280G(b)(4)(A) of the Code, (ii) all
"excess parachute payments" within the meaning of section 280G(b)(l) of the Code
shall be treated as subject to the Excise Tax unless Tax Counsel delivers an
opinion to the Executive that such excess parachute payments (in whole or in
part) represent reasonable compensation for services actually rendered (within
the meaning of section 280G(b)(4)(B) of the Code) in excess of the Base Amount
allocable to such reasonable compensation, or are otherwise not subject to the
Excise Tax, and (iii) the value of any noncash benefits or any deferred payment
or benefit shall be determined by the Auditor in accordance with the principles
of sections 280G(d)(3) and (4) of the Code. For purposes of determining the
amount of the Gross-Up Payment, the Executive shall be deemed to pay federal
income tax at the highest marginal rate of federal income taxation in the
calendar year in which the Gross-Up Payment is to be made and state and local
income taxes at the highest marginal rate of taxation in the state and locality
of the Executive's residence on the Date of Termination (or if there is no Date
of Termination, then the date on which the Gross-Up Payment is calculated for
purposes of this Section 7), net of the maximum reduction in federal income
taxes which could be obtained from deduction of such state and local taxes.

                  c. In the event that the Excise Tax is finally determined to
be less than the amount taken into account hereunder in calculating the Gross-Up
Payment,

                                       6
<PAGE>   7
the Executive shall repay to the Company, within five (5) business days
following the time that the amount of such reduction in the Excise Tax is
finally determined, the portion of the Gross-Up Payment attributable to such
reduction (plus that portion of the Gross-Up Payment attributable to the Excise
Tax and federal, state and local income and employment taxes imposed on the
Gross-Up Payment being repaid by the Executive, to the extent that such
repayment results in a reduction in the Excise Tax and a dollar-for-dollar
reduction in the Executive's taxable income and wages for purposes of federal,
state and local income and employment taxes, plus interest on the amount of such
repayment at 120% of the rate provided in section 1274(b)(2)(B) of the Code. In
the event that the Excise Tax is determined, pursuant to an administrative or
judicial proceeding, to exceed the amount taken into account hereunder in
calculating the Gross-Up Payment (including by reason of any payment the
existence or amount of which cannot be determined at the time of the Gross-Up
Payment), the Company shall make an additional Gross-Up Payment in respect of
such excess (plus any interest, penalties or additions payable by the Executive
with respect to such excess) within five (5) business days following the time
that the amount of such excess is finally determined. The Executive and the
Company shall each reasonably cooperate with the other in connection with any
administrative or judicial proceedings concerning the existence or amount of
liability for Excise Tax with respect to the Total Payments.

                  d. Timing of Payments. The payments provided in subsections
(1) and (3) of Section 6 hereof and in Section 7 hereof shall be made not later
than the fifth day following the Date of Termination; provided, however, that if
the amounts of such payments cannot be finally determined on or before such day,
the Company shall pay to the Executive on such day an estimate, as determined in
good faith by the Executive or, in the case of payments under Section 7 hereof,
in accordance with Section 7 hereof, of the minimum amount of such payments to
which the Executive is clearly entitled and shall pay the remainder of such
payments (together with interest on the unpaid remainder (or on all such
payments to the extent the Company fails to make such payments when due) at 120%
of the rate provided in section 1274(b)(2)(B) of the Code) as soon as the amount
thereof can be determined but in no event later than the thirtieth (30th) day
after the Date of Termination. At the time that payments are made under this
Agreement, the Company shall provide the Executive with a written statement
setting forth the manner in which such payments were calculated and the basis
for such calculations including, without limitation, any opinions or other
advice the Company has received from Tax Counsel, the Auditor or other advisors
or consultants (and any such opinions or advice which are in writing shall be
attached to the statement).

                  e. Legal Fees. The Company also shall pay to the Executive, as
incurred, all legal fees and expenses incurred by the Executive in disputing in
good faith any issue hereunder relating to the termination of the Executive's
employment,

                                       7
<PAGE>   8
in seeking to obtain or enforce any benefit or right provided by this Agreement
or in connection with any tax audit or proceeding to the extent attributable to
the application of section 4999 of the Code to any payment or benefit provided
hereunder, unless it is determined that any such dispute or other action is
frivolous and not in good faith. Such payments shall be made within five (5)
business days after delivery of the Executive's written requests for payment
accompanied with such evidence of fees and expenses incurred as the Company
reasonably may require.

         8. Termination Procedures and Compensation During Dispute.

                  a. Notice of Termination. After a Change in Control and during
the Term, any purported termination of the Executive's employment (other than by
reason of death) shall be communicated by written Notice of Termination from one
party hereto to the other party hereto in accordance with Section 12 hereof. For
purposes of this Agreement, a "Notice of Termination" shall mean a notice which
shall indicate the specific termination provision in this Agreement relied upon
and shall set forth in reasonable detail the facts and circumstances claimed to
provide a basis for termination of the Executive's employment under the
provision so indicated. Further, a Notice of Termination for Cause is required
to include a copy of a resolution duly adopted by the affirmative vote of not
less than three-quarters (3/4) of the entire membership of the Board at a
meeting of the Board which was called and held for the purpose of considering
such termination (after reasonable notice to the Executive and an opportunity
for the Executive, together with the Executive's counsel, to be heard before the
Board) finding that, in the good faith opinion of the Board, the Executive was
guilty of conduct set forth in clause (i) or (ii) of the definition of Cause
herein, and specifying the particulars thereof in detail.

                  b. Date of Termination. "Date of Termination," with respect to
any purported termination of the Executive's employment after a Change in
Control and during the Term, shall mean (i) if the Executive's employment is
terminated for Disability, thirty (30) days after Notice of Termination is given
(provided that the Executive shall not have returned to the full-time
performance of the Executive's duties during such thirty (30) day period), and
(ii) if the Executive's employment is terminated for any other reason, the date
specified in the Notice of Termination (which, in the case of a termination by
the Company, shall not be less than thirty (30) days (except in the case of a
termination for Cause) and, in the case of a termination by the Executive, shall
not be less than fifteen (15) days nor more than sixty (60) days, respectively,
from the date such Notice of Termination is given).

                  c. Dispute Concerning Termination. If within fifteen (15) days
after any Notice of Termination is given, or, if later, prior to the Date of
Termination (as determined without regard to this Section 8(c)), the party
receiving such Notice of Termination notifies the other party that a dispute
exists concerning the

                                       8
<PAGE>   9
termination, the Date of Termination shall be extended until the earlier of (i)
the date on which the Term ends or (ii) the date on which the dispute is finally
resolved, either by mutual written agreement of the parties or by a final
judgment, order or decree of an arbitrator or a court of competent jurisdiction
(which is not appealable or with respect to which the time for appeal therefrom
has expired and no appeal has been perfected); provided, however, that the Date
of Termination shall be extended by a notice of dispute given by the Executive
only if such notice is given in good faith and the Executive pursues the
resolution of such dispute with reasonable diligence.

                  d. Compensation During Dispute. If a purported termination
occurs following a Change in Control and during the Term and the Date of
Termination is extended in accordance with Section 8(c) hereof, the Company
shall continue to pay the Executive the full compensation in effect when the
notice giving rise to the dispute was given (including, but not limited to,
salary) and continue the Executive as a participant in all compensation, benefit
and insurance plans in which the Executive was participating when the notice
giving rise to the dispute was given, until the Date of Termination, as
determined in accordance with Section 8(c) hereof. Amounts paid under this
Section 8(d) are in addition to all other amounts due under this Agreement
(other than those due under Section 5(b) hereof) and shall not be offset against
or reduce any other amounts due under this Agreement.

         9. No Mitigation. The Company agrees that, if the Executive's
employment with the Company terminates during the Term, the Executive is not
required to seek other employment or to attempt in any way to reduce any amounts
payable to the Executive by the Company pursuant to Section 6 hereof or Section
8(d) hereof. Further, the amount of any payment or benefit provided for in this
Agreement (other than Section 6(a)(2) hereof) shall not be reduced by any
compensation earned by the Executive as the result of employment by another
employer, by retirement benefits, by offset against any amount claimed to be
owed by the Executive to the Company, or otherwise.

         10. Successors; Binding Agreement.

                  a. In addition to any obligations imposed by law upon any
successor to the Company, the Company will require any successor (whether direct
or indirect, by purchase, merger, consolidation or otherwise) to all or
substantially all of the business and/or assets of the Company to expressly
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such assumption and agreement
prior to the effectiveness of any such succession shall be a breach of this
Agreement and shall entitle the Executive to compensation from the Company in
the same amount and on

                                       9
<PAGE>   10
the same terms as the Executive would be entitled to hereunder if the Executive
were to terminate the Executive's employment for Good Reason after a Change in
Control, except that, for purposes of implementing the foregoing, the date on
which any such succession becomes effective shall be deemed the Date of
Termination.

                  b. This Agreement shall inure to the benefit of and be
enforceable by the Executive's personal or legal representatives, executors,
administrators, successors, heirs, distributees, devisees and legatees. If the
Executive shall die while any amount would still be payable to the Executive
hereunder (other than amounts which, by their terms, terminate upon the death of
the Executive) if the Executive had continued to live, all such amounts, unless
otherwise provided herein, shall be paid in accordance with the terms of this
Agreement to the executors, personal representatives or administrators of the
Executive's estate.

         11. Indemnification. The Company shall indemnify and hold Executive
harmless for acts and omissions in his capacity as an officer, director or
employee of the Company to the maximum extent permitted under applicable law.
The Company shall maintain a Director's and Officer's Liability Insurance
Policy, which shall provide liability coverage for Executive's benefit, and the
Executive shall remain covered under such policy for a period of at least six
(6) years following the earlier of termination of employment or the occurrence
of a Change in Control.

         12. Notices. For the purpose of this Agreement, notices and all other
communications provided for in the Agreement shall be in writing and shall be
deemed to have been duly given when delivered or mailed by United States
registered mail, return receipt requested, postage prepaid, addressed, if to the
Executive, to the address inserted below the Executive's signature on the final
page hereof and, if to the Company, to the address set forth below, or to such
other address as either party may have furnished to the other in writing in
accordance herewith, except that notice of change of address shall be effective
only upon actual receipt:

                           To the Company:

                           Starwood Hotels and Resorts Worldwide, Inc.
                           777 Westchester Avenue
                           White Plains, NY  10604
                           Attention:  General Counsel

         13. Miscellaneous. No provision of this Agreement may be modified,
waived or discharged unless such waiver, modification or discharge is agreed to
in writing and signed by the Executive and such officer as may be specifically
designated by the Board. No waiver by either party hereto at any time of any
breach

                                       10
<PAGE>   11
by the other party hereto of, or of any lack of compliance with, any condition
or provision of this Agreement to be performed by such other party shall be
deemed a waiver of similar or dissimilar provisions or conditions at the same or
at any prior or subsequent time. This Agreement supersedes any other agreements
or representations, oral or otherwise, express or implied, with respect to the
subject matter hereof which have been made by either party; provided, however,
that this Agreement shall supersede any agreement setting forth the terms and
conditions of the Executive's employment with the Company only in the event that
the Executive's employment with the Company is terminated on or following a
Change in Control, by the Company other than for Cause or by the Executive other
than for Good Reason. The validity, interpretation, construction and performance
of this Agreement shall be governed by the laws of the State of New York. All
references to sections of the Exchange Act or the Code shall be deemed also to
refer to any successor provisions to such sections. Any payments provided for
hereunder shall be paid net of any applicable withholding required under
federal, state or local law and any additional withholding to which the
Executive has agreed. The obligations of the Company and the Executive under
this Agreement which by their nature may require either partial or total
performance after the expiration of the Term (including, without limitation,
those under Sections 6, 7, 8, and 9 hereof) shall survive such expiration.

         14. Counterparts. This Agreement may be executed in several
counterparts, each of which shall be deemed to be an original but all of which
together will constitute one and the same instrument.

         15. Settlement of Disputes; Arbitration.

                  a. All claims by the Executive for benefits under this
Agreement shall be directed to and determined by the Board and shall be in
writing. Any denial by the Board of a claim for benefits under this Agreement
shall be delivered to the Executive in writing and shall set forth the specific
reasons for the denial and the specific provisions of this Agreement relied
upon. The Board shall afford a reasonable opportunity to the Executive for a
review of the decision denying a claim and shall further allow the Executive to
appeal to the Board a decision of the Board within sixty (60) days after
notification by the Board that the Executive's claim has been denied.

                  b. Any further dispute or controversy arising under or in
connection with this Agreement shall be settled exclusively by arbitration in
New York, in accordance with the rules of the American Arbitration Association
then in effect; provided, however, that the evidentiary standards set forth in
this Agreement shall apply. Judgment may be entered on the arbitrator's award in
any court having jurisdiction. Notwithstanding any provision of this Agreement
to the contrary, the

                                       11
<PAGE>   12
Executive shall be entitled to seek specific performance of the Executive's
right to be paid until the Date of Termination during the pendency of any
dispute or controversy arising under or in connection with this Agreement.

         16. Definitions. For purposes of this Agreement, the following terms
shall have the meanings indicated below:

                  a. "Affiliate" shall have the meaning set forth in Rule 12b-2
promulgated under Section 12 of the Exchange Act.

                  b. "Auditor" shall have the meaning set forth in Section 7
hereof.

                  c. "Base Amount" shall have the meaning set forth in section
280G(b)(3) of the Code.

                  d. "Beneficial Owner" shall have the meaning set forth in Rule
13d-3 under the Exchange Act.

                  e. "Board" shall mean the Board of Directors of the Company.

                  f. "Cause" for termination by the Company of the Executive's
employment shall mean (i) the willful and continued failure by the Executive to
substantially perform the Executive's duties with the Company after a written
demand for substantial performance is delivered to the Executive by the Board,
which demand specifically identifies the manner in which the Board believes that
the Executive has not substantially performed the Executive's duties, and
Executive has not cured any such failure that is capable of being cured in all
material respects within ten (10) days of receiving such written demand, or (ii)
the willful engaging by the Executive in conduct which is demonstrably and
materially injurious to the Company or its subsidiaries, monetarily or
otherwise. For purposes of clauses (i) and (ii) of this definition, (x) no act,
or failure to act, on the Executive's part shall be deemed "willful" unless
done, or omitted to be done, by the Executive not in good faith and without
reasonable belief that the Executive's act, or failure to act, was in the best
interest of the Company and (y) in the event of a dispute concerning the
application of this provision, no claim by the Company that Cause exists shall
be given effect unless the Company establishes to the Board by clear and
convincing evidence that Cause exists.

                  g. A "Change in Control" shall be deemed to have occurred if
the event set forth in any one of the following paragraphs shall have occurred:

                      (1) any Person is or becomes the Beneficial Owner,
         directly or indirectly, of securities of the Company (not including in
         the securities beneficially owned by such Person any securities
         acquired directly

                                       12
<PAGE>   13
         from the Company or its affiliates) representing 25% or more of the
         combined voting power of the Company's then outstanding securities,
         excluding any Person who becomes such a Beneficial Owner in connection
         with a transaction described in clause (i) of paragraph (3) below; or

                      (2) the following individuals cease for any reason to
         constitute a majority of the number of directors then serving:
         individuals who, on the date hereof, constitute the Board and any new
         director (other than a director whose initial assumption of office is
         in connection with an actual or threatened election contest, including
         but not limited to a consent solicitation, relating to the election of
         directors of the Company) whose appointment or election by the Board or
         nomination for election by the Company's stockholders was approved or
         recommended by a vote of at least two-thirds (2/3) of the directors
         then still in office who either were directors on the date hereof or
         whose appointment, election or nomination for election was previously
         so approved or recommended; or

                      (3) there is consummated a merger or consolidation of the
         Company or any direct or indirect subsidiary of the Company with any
         other corporation, other than (i) a merger or consolidation which would
         result in the voting securities of the Company outstanding immediately
         prior to such merger or consolidation continuing to represent (either
         by remaining outstanding or by being converted into voting securities
         of the surviving entity or any parent thereof), in combination with the
         ownership of any trustee or other fiduciary holding securities under an
         employee benefit plan of the Company or any subsidiary of the Company,
         at least 70% of the combined voting power of the securities of the
         Company or such surviving entity or any parent thereof outstanding
         immediately after such merger or consolidation and in proportion to
         their relative voting power immediately prior to such merger or
         consolidation, or (ii) a merger or consolidation effected to implement
         a recapitalization of the Company (or similar transaction) in which no
         Person is or becomes the Beneficial Owner, directly or indirectly, of
         securities of the Company representing 25% or more of the combined
         voting power of the Company's then outstanding securities; or

                      (4) the stockholders of the Company approve a plan of
         complete liquidation or dissolution of the Company or there is
         consummated an agreement for the sale or disposition by the Company of
         all or substantially all of the Company's assets, other than a sale or
         disposition by the Company of all or substantially all of the Company's
         assets to an entity, at least 70% of the combined voting power of the
         voting securities of which are owned by stockholders of the Company in
         substantially the same proportions as their ownership of the Company
         immediately prior to such sale.

                                       13
<PAGE>   14
         Notwithstanding the foregoing, a "Change in Control" shall not be
         deemed to have occurred by virtue of the consummation of any
         transaction or series of integrated transactions immediately following
         which the record holders of the common stock of the Company immediately
         prior to such transaction or series of transactions continue to have
         substantially the same proportionate ownership in an entity which owns
         all or substantially all of the assets of the Company immediately
         following such transaction or series of transactions.

                  h. "Code" shall mean the Internal Revenue Code of 1986, as
amended from time to time.

                  i. "Company" shall mean Starwood Hotels and Resorts Worldwide,
Inc., and, except in determining under Section 17(g) hereof whether or not any
Change in Control of the Company has occurred, shall include any successor to
its business and/or assets which assumes and agrees to perform this Agreement by
operation of law, or otherwise.

                  j. "Date of Termination" shall have the meaning set forth in
Section 8 hereof.

                  k. "Disability" shall be deemed the reason for the termination
by the Company of the Executive's employment, if, as a result of the Executive's
incapacity due to physical or mental illness, the Executive shall have been
absent from the full-time performance of the Executive's duties with the Company
for a period of six (6) consecutive months, the Company shall have given the
Executive a Notice of Termination for Disability, and, within thirty (30) days
after such Notice of Termination is given, the Executive shall not have returned
to the full-time performance of the Executive's duties.

                  l. "Exchange Act" shall mean the Securities Exchange Act of
1934, as amended from time to time.

                  m. "Excise Tax" shall mean any excise tax imposed under
section 4999 of the Code.

                  n. "Executive" shall mean the individual named in the first
paragraph of this Agreement.

                  o. "Good Reason" for termination by the Executive of the
Executive's employment shall mean the occurrence (without the Executive's
express written consent) after any Change in Control, or prior to a Change in
Control under the circumstances described in clauses (ii) and (iii) of the
second sentence of Section 6(a) hereof (treating all references in paragraphs
(1) through (7) below to a "Change in Control" as references to a "Potential
Change in Control"), of any one of the

                                       14
<PAGE>   15
following acts by the Company, or failures by the Company to act, unless, in the
case of any act or failure to act described in paragraph (1), (5), (6) or (7)
below, such act or failure to act is corrected prior to the Date of Termination
specified in the Notice of Termination given in respect thereof:

                      (1) the assignment to the Executive of any duties
         inconsistent with the Executive's status as a senior executive officer
         of the Company or a substantial adverse alteration in the nature or
         status of the Executive's responsibilities from those in effect
         immediately prior to the Change in Control;

                      (2) a reduction by the Company in the Executive's annual
         base salary as in effect on the date hereof or as the same may be
         increased from time to time;

                      (3) the relocation of the Executive's principal place of
         employment to a location more than 35 miles from the Executive's
         principal place of employment immediately prior to the Change in
         Control or the Company's requiring the Executive to be based anywhere
         other than such principal place of employment (or permitted relocation
         thereof) except for required travel on the Company's business to an
         extent substantially consistent with the Executive's present business
         travel obligations;

                      (4) the failure by the Company to pay to the Executive any
         portion of the Executive's current compensation, or to pay to the
         Executive any portion of an installment of deferred compensation under
         any deferred compensation program of the Company, within seven (7) days
         of the date such compensation is due;

                      (5) the failure by the Company to continue in effect any
         compensation plan in which the Executive participates immediately prior
         to the Change in Control which is material to the Executive's total
         compensation, including but not limited to the Company's stock option,
         bonus and other plans or any substitute plans adopted prior to the
         Change in Control, unless an equitable arrangement (embodied in an
         ongoing substitute or alternative plan) has been made with respect to
         such plan, or the failure by the Company to continue the Executive's
         participation therein (or in such substitute or alternative plan) on a
         basis not materially less favorable, both in terms of the amount or
         timing of payment of benefits provided and the level of the Executive's
         participation relative to other participants, as existed immediately
         prior to the Change in Control;

                                       15
<PAGE>   16
                      (6) the failure by the Company to continue to provide the
         Executive with benefits substantially similar to those enjoyed by the
         Executive under any of the Company's pension, savings, life insurance,
         medical, health and accident, or disability plans in which the
         Executive was participating immediately prior to the Change in Control,
         the taking of any other action by the Company which would directly or
         indirectly materially reduce any of such benefits or deprive the
         Executive of any material fringe benefit enjoyed by the Executive at
         the time of the Change in Control, or the failure by the Company to
         provide the Executive with the number of paid vacation days to which
         the Executive is entitled on the basis of years of service with the
         Company in accordance with the Company's normal vacation policy or any
         employment agreement in effect at the time of the Change in Control; or

                      (7) any purported termination of the Executive's
         employment which is not effected pursuant to a Notice of Termination
         satisfying the requirements of Section 8(a) hereof; for purposes of
         this Agreement, no such purported termination shall be effective.

                  The Executive's right to terminate the Executive's employment
for Good Reason shall not be affected by the Executive's incapacity due to
physical or mental illness. The Executive's continued employment shall not
constitute consent to, or a waiver of rights with respect to, any act or failure
to act constituting Good Reason hereunder.

                  For purposes of any determination regarding the existence of
Good Reason, any claim by the Executive that Good Reason exists shall be
presumed to be correct unless the Company establishes to the Board by clear and
convincing evidence that Good Reason does not exist.

                  p. "Gross-Up Payment" shall have the meaning set forth in
Section 7 hereof.

                  q. "Notice of Termination" shall have the meaning set forth in
Section 8 hereof.

                  r. "Person" shall have the meaning given in Section 3(a)(9) of
the Exchange Act, as modified and used in Sections 13(d) and 14(d) thereof,
except that such term shall not include (i) the Company or any of its
subsidiaries, (ii) a trustee or other fiduciary holding securities under an
employee benefit plan of the Company or any of its Affiliates, (iii) an
underwriter temporarily holding securities pursuant to an offering of such
securities, or (iv) a corporation owned, directly or

                                       16
<PAGE>   17
indirectly, by the stockholders of the Company in substantially the same
proportions as their ownership of stock of the Company.

                  s. "Potential Change in Control" shall be deemed to have
occurred if the event set forth in any one of the following paragraphs shall
have occurred:

                      (1) the Company enters into an agreement, the consummation
         of which would result in the occurrence of a Change in Control;

                      (2) the Company or any Person publicly announces an
         intention to take or to consider taking actions which, if consummated,
         would constitute a Change in Control;

                      (3) any Person becomes the Beneficial Owner, directly or
         indirectly, of securities of the Company representing 15% or more of
         either the then outstanding shares of common stock of the Company or
         the combined voting power of the Company's then outstanding securities
         (not including in the securities beneficially owned by such Person any
         securities acquired directly from the Company or its affiliates); or

                      (4) the Board adopts a resolution to the effect that, for
         purposes of this Agreement, a Potential Change in Control has occurred.

                  t. "Retirement" shall be deemed the reason for the termination
by the Executive of the Executive's employment if such employment is terminated
in accordance with the Company's retirement policy, including early retirement,
generally applicable to its salaried employees.

                  u. "Severance Payments" shall have the meaning set forth in
Section 6 hereof.

                  v. "Tax Counsel" shall have the meaning set forth in Section 7
hereof.

                  w. "Term" shall mean the period of time described in Section 2
hereof (including any extension, continuation or termination described therein).

                  x. "Total Payments" shall mean those payments so described in
Section 7 hereof.

                                       17
<PAGE>   18
                         STARWOOD HOTELS AND RESORTS
                           WORLDWIDE, INC.

                         By:  /s/ David K. Norton
                            ----------------------------------------------------
                         Name:    David K. Norton
                         Title:   Executive Vice President-Human Resources

                         EXECUTIVE

                             /s/ Robert F. Cotter
                         -----------------------------------
                                 Robert F. Cotter

                         Address:

                         -----------------------------------

                         -----------------------------------

                         -----------------------------------
                             (Please print carefully)

                                       18

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