Document:

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                                                                 Exhibit 10.57

September 25, 2000

Mr. Kenneth S. Siegel
57 Greenfield Drive
Weston, CT 06883

Dear Ken:

The specifics of your offer of employment with Starwood Hotels & Resorts
Worldwide, Inc. are outlined below:

START DATE:
Subject to the terms of this letter, your employment with Starwood will begin on
November 15, 2000.

POSITION:
Your position will be Executive Vice President, General Counsel at the White
Plains office, and you shall perform such duties and services as are assigned
to you by the Company from time to time. You acknowledge that your
prospective employment will be subject to all policies and practices of the
Company as may currently exist or as may be curtailed, modified or implemented
from time to time. Further, you shall devote your full time and attention to
the affairs of the Company and to your duties as Executive Vice President,
General Counsel. You will be reporting to the Company's Chief Executive
Officer.

BASE SALARY:
Your base salary will be $375,000 annually (Grade 15), paid in semi-monthly
intervals of $15,635, and subject to applicable withholdings for FICA, state
and federal taxes. The Starwood salary program provides performance-based
salary reviews for future salary progression.

ANNUAL INCENTIVE (BONUS):
You will be eligible to participate in the Starwood Annual Incentive Plan (AIP).
Your target incentive is 75% of base salary. Your actual incentive payout will
be based upon Company performance and your achieving specified performance
criteria to be established and approved with your manager.

Payment of your 2000 bonus will be guaranteed at $150,000, provided that you
are still employed by the Company at the time such bonuses are paid in
accordance with the AIP and Company practices. Thereafter, any annual bonus
shall not be deemed earned by you until the Company has determined your
entitlement to such bonus and only if you are

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employed by the Company at the time such bonus is payable in accordance with the
AIP and Company practices. The Company does not pay pro-rata bonuses upon
departure.

LONG TERM INCENTIVE:

You will be eligible to participate in the Starwood 1999 Long Term Incentive
Compensation Plan ("LTIP"). This plan provides for the award of stock options
at the Company's discretion to high performing executives. The actual number of
shares granted, if any, will be based upon your performance. For your 2001
annual option grant (to be granted in February 2001), you will be guaranteed a
minimum grant of at least the mid-point of the range of option grants
established for your pay grade (grade 15).

SIGN-ON STOCK OPTIONS:

Effective the first day of the month following your employment, you will be
granted 87,500 stock options pursuant to the terms of the LTIP. The options will
have an exercise price equal to the closing price of Starwood stock as reported
in the New York Stock Exchange Composite Transactions on the business day
immediately preceding the date of grant. The stock options will vest in
accordance with the LTIP and will otherwise be governed by the provisions of the
LTIP.

Further details will be provided in the award notification to be delivered to
you following your employment.

BENEFITS:
Starwood offers "StarShare", a comprehensive array of employee benefit programs,
to provide peace of mind on various personal concerns. New employees are
eligible for the StarShare health and welfare benefit programs and the 401(k)
plan on the first day of the month following 90 days of employment. You and your
eligible dependents will be covered by these benefits as per your coverage
elections.

Information on these plans and other benefit programs such as the HOT Rates (the
employee discount room rates program), short-term disability, long-term
disability, employee life insurance, and vacation programs will be provided to
you after you begin your employment with us.

In the event that changes are made to any of the benefit plans, the changes will
apply to you as they do other employees of the Company.

COBRA PAYMENTS:
We realize that there may be a transitional benefits cost to you because of the
waiting period before you become eligible for the Starwood health plans.
Therefore, during your benefits waiting period, Starwood agrees to reimburse you
for any COBRA payments until the date you become eligible for Starwood health
benefits. Starwood will reimburse you the difference between the applicable
contribution rate and your COBRA amount.

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VACATION BENEFITS:
You will be entitled to take four weeks of paid vacation for each full calendar
year you remain employed by the Company. In all other respects, your vacation
benefits will be governed by Starwood's vacation policy as is in effect from
time to time.

EXCLUSIVE DISPUTE RESOLUTION PROCEDURE:
Any and all disputes relating to this offer letter, your employment with
Starwood or the termination of that employment will be resolved solely and
exclusively through binding arbitration pursuant to the employment rules of the
American Arbitration Association. Accordingly, you acknowledge and agree that
this offer of employment and the benefits provided herein are contingent upon
your execution of the Arbitration Agreement attached hereto as Attachment A.

EMPLOYMENT TERM:
In accepting this offer you understand and agree that your employment with the
Company is "at will." As such, you agree that either you or Starwood may end the
employment relationship at any time, with or without notice and with or without
cause. By signing below, you understand and acknowledge that except for this
letter, there is not and shall not be any written contract between you and the
Company concerning this offer of employment or your prospective employment, and
that this letter is not intended to be and is not a contract of employment.

SEVERANCE:
In the event that Starwood terminates your employment for any reason other than
"cause," Starwood will pay to you 12 months of your then current base salary, in
a lump sum less all applicable withholdings (the "Termination Payments").
Starwood will reimburse you for your COBRA expenses minus your last level of
contribution for up to 12 months commencing on the termination date. You will
not be entitled to any Termination Payments if you resign your employment with
the Company. As a condition for, and prior to, your entitlement to and receipt
of any Termination Payments, you must enter into a written waiver and release of
any and all claims against Starwood arising out of or relating to your
employment with Starwood, in such form that Starwood may reasonably require.

For purposes of this paragraph, "cause," shall mean (i) any material breach by
you of any of the duties, responsibilities or obligations of your employment, or
any of the policies or practices of Starwood; (ii) any willful failure or
refusal by you to properly perform (as determined by Starwood in its reasonable
discretion and judgment) the duties, responsibilities or obligations of your
employment, or to properly perform or follow (as determined by Starwood in its
reasonable discretion and judgment) any lawful order or direction by Starwood;
(iii) any acts or omissions by you that constitute (as determined by Starwood in
its reasonable discretion and judgment) fraud, dishonesty, breach of your duty
of loyalty, gross negligence, civil or criminal illegality, or any other
misconduct in your employment or which could tend to bring Starwood into
disrepute, could create civil or criminal liability for Starwood or could
adversely affect Starwood's business or interests.

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OTHER CONDITIONS AND OBLIGATIONS:
You have represented, and hereby confirm, that you are not subject to any
currently effective employment contract, or any other contractual or other
binding obligations pursuant to which your employment or employment activities
with or on behalf of the Company may be subject to any restrictions, including
without limitation, any agreements or other obligations or documents relating
to non-competition, confidentiality, trade secrets, proprietary information or
works for hire.

As a further condition of this offer and your right to receive any of the
benefits detailed herein, you agree to execute and be bound by the
Non-solicitation, Confidentiality Agreement attached hereto as Attachment B.

INTEGRATED AGREEMENT:
This offer letter represents the sole and complete understanding between you
and the Company relating to your employment and there are no other written or
oral agreements, understandings or representations relating to this offer of
employment. The terms of your employment, including the at-will nature of the
employment, may be amended only through a written instrument signed by you and
the Executive Vice President, Human Resources.

You should not resign from your current employment until you have received
notification from the Company of the completion of all pre-employment
investigation and verification.

By signing and returning this letter, you confirm that this letter accurately
sets forth the current understanding between you and Starwood and that you
accept and agree to the terms as outlined.

Very truly yours,

/s/ David Norton

D. Norton
Executive Vice President, Human Resources
Starwood Hotels & Resorts Worldwide, Inc.

cc:  Personnel File

ACCEPTED AND AGREED TO:

/s/Kenneth S. Siegel                                     9/26/00
________________________                                 _______________________
  Kenneth S. Siegel                                            Date

                                                                          Page 5
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                                                                    Attachment A

                             ARBITRATION AGREEMENT

     In consideration of Starwood Hotels & Resorts Worldwide, Inc. ("Starwood")
having extended an offer of employment to me and/or having hired me, I agree
that all disputes and claims that I may have, now or in the future, with or
against Starwood, any of Starwood's affiliated or subsidiary companies and/or
any of Starwood's partners or joint venturers, and/or any officer, employee,
director or agent of Starwood, any affiliated or subsidiary company, or partner
or joint venturer (collectively, "Claims"), shall be submitted to the American
Arbitration Association to be resolved and determined through final and binding
arbitration before a single arbitrator and to be conducted in accordance with
the National Rules for the Resolution of Employment Disputes of the American
Arbitration Association.

     Starwood and I hereby agree that the Claims subject to arbitration shall
include but not be limited to any and all Claims that arise out of or are
related to the offer of employment extended by Starwood to me, any withdrawal
or rescission of that offer, any aspect of my employment with Starwood or the
terms and conditions of that employment, any termination of that employment and
any Claim of discrimination or harassment based upon age, race, religion, sex,
ethnicity, marital status, veteran status, national origin, disability, medical
condition, sexual orientation or any other unlawful basis, or any other
unlawful conduct, under any applicable Federal, State, local or other statutes,
orders, laws, ordinances, regulations or the like, or case law, that relate to
employment or employment practices, including without limitation, Title VII of
the Civil Rights Act of 1964, as amended, the Civil Rights Act of 1991, as
amended, the Civil Rights Acts of 1866 and 1871, as amended, the Age
Discrimination in Employment Act of 1967, as amended, the Americans with
Disabilities Act of 1990, as amended, the Family and Medical Leave Act of 1993,
as amended, the Employee Retirement Income Security Act of 1990, as amended,
the Worker Adjustment Retraining and Notification Act, as amended, the Fair
Labor Standards Act, as amended, the Vietnam Era Veterans' Readjustment
Assistance Act, as amended, the Equal Pay Act, as amended, and the state and
local analogues to the foregoing.

     Starwood and I further agree that the Claims subject to arbitration shall
exclude any Claims required by any applicable Federal, State, local or other
statute to be submitted to another forum (for example, a workers' compensation
claim or a claim for unemployment insurance benefits).

     Starwood and I agree that any arbitration award rendered as the result of
any arbitration under this Agreement shall be final and binding and may be
entered and enforced as a court judgment in accordance with applicable law.
Starwood and I further agree that this Agreement, any arbitration under this
Agreement and any arbitration award rendered in such arbitration shall be
governed by the Federal Arbitration Act.
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                                                                    Attachment A

     I specifically acknowledge that I understand that the right to the
determination and/or trial of any Claims in court before a judge or a jury is a
valuable right, and that by signing this Agreement I hereby knowingly and
voluntarily waive my right to assert any Claims in any court of competent
jurisdiction and that I hereby knowingly and voluntarily further waive the
right to a determination and/or trial before a judge or a jury.

     I further understand and acknowledge that this Agreement is not intended to
be and shall not be deemed to constitute a contract of employment, and that if
hired by Starwood my employment shall be at will, which means that Starwood and
I shall be free to terminate that employment at any time for any reason with or
without notice and with or without cause.

     I UNDERSTAND THAT I HAVE THE RIGHT TO CONSULT AN ATTORNEY PRIOR TO SIGNING
THIS AGREEMENT. I ACKNOWLEDGE THAT MY SIGNATURE BELOW SIGNIFIES THAT I HAVE
FULLY REVIEWED AND UNDERSTAND ALL OF THE TERMS OF THIS AGREEMENT AND THAT I
HAVE AGREED TO THOSE TERMS.

Dated:  9/26/00     /s/Kenneth S. Siegel
       --------    -----------------------
                     Kenneth S. Siegel

Dated:   9/29/00    /s/David Norton
        --------   -----------------------
                    D. Norton
                    Executive Vice President, Human Resources
                    Starwood Hotels & Resorts Worldwide, Inc.
<PAGE>   7
                                                                    Attachment B

                   NON-SOLICITATION, CONFIDENTIALITY AGREEMENT
                   -------------------------------------------

     This Non-solicitation, Confidentiality Agreement ("Agreement") is entered
into as of this    day of    2000, (the "Effective Date"), by and between
Starwood Hotels and Resorts Worldwide, Inc. (the "Company") and Kenneth S.
Siegel (the "Employee").

     WHEREAS, the Company devotes significant time, resources and effort to the
training and advancement of its management, and its management team constitutes
a significant asset and important competitive advantage; and

     WHEREAS, the Employee has and will have access to important and sensitive
confidential information; and

     WHEREAS, the Company has determined that it is in the best interests of
the Company and its shareholders to enter into an agreement with Employee
whereby Employee will be prohibited from soliciting employees of the Company in
accordance with the terms and conditions of this Agreement; and

     WHEREAS, in consideration of the Company's offer of employment and its
offer of stock options to the Employee, Employee agrees to enter into this
Agreement.

     THEREFORE, the Company and Employee agree as follows:

     1.   Non-solicitation.   During the period in which Employee is employed
by the Company, and for a period of two (2) years following the date of any
termination of employment from the Company, Employee shall not, without the
prior written consent of the Company, except in the course of carrying out
Employee's duties hereunder, solicit or attempt to solicit for employment with
or on behalf of any corporation, partnership, joint venture of other business
entity, any person who is, or at any time during the six-month period preceding
the solicitation of such person was, a management-level employee of the Company
(including, without limitation, for this purpose any director level employee of
the Company and any General Manager of any hotel owned (in whole or in part) or
managed by the Company).

     2.   Confidentiality.   Employee acknowledges that during the course of
his employment with the Company, Employee will receive, and will have access
to, "Confidential Information," as such term is defined below, of the Company
and that such information is a special, valuable and unique asset belonging to
the Company. Accordingly, Employee is willing to enter into the covenants
contained in this Agreement in order to provide the Company with what Employee
considers to be reasonable protection for the Company's interest. All notes,
memoranda, papers, documents, correspondence or writings (which shall include
information recorded or stored in writing, on magnetic tape or disc, or
otherwise recorded or stored for reproduction, whether by mechanical or
electronic means and whether or not such reproduction will

<PAGE>   8
                                                                    Attachment B

result in a permanent record being made) ("Documents") which from time to time
may be in Employee's possession (whether prepared by Employee or not) relating,
directly or indirectly, to the business of the Company shall be and remain the
property of the Company and shall be delivered by Employee to the Company
immediately upon request, and in any event upon termination of Employee's
employment, and Employee shall not make or keep any copies or extracts of the
Documents. At any time during or after Employee's employment with the Company
ends, without the prior written consent of the Company, except (i) in the course
of carrying out Employee's duties hereunder or (ii) to the extent required by a
court or governmental agency, or by applicable law or under compulsion of legal
process, Employee shall not disclose to any third person any information
concerning the business of the Company, including, without limitation, any trade
secrets, customer lists and details of contracts with or requirements of
customers, the identity of any owner of a managed hotel, information relating to
any current, past or prospective management agreement or joint venture,
information pertaining to business methods, sales plans, management
organization, computer systems and software, operating policies or manuals,
personnel records or information, information relating to current, past or
contemplated employee benefits or compensation data or strategies, business,
financial, development or marketing plans, or manpower strategies or plans,
financial records or other financial, commercial, business or technical
information relating to the Company (collectively, "Confidential Information"),
unless such Confidential Information has been previously disclosed to the public
by the Company or is in the public domain (other than by reason of Employee's
breach of this Section 2).

     3.   Equitable Relief.

          3.1  Employee acknowledges that the restrictions specified in Sections
1, 2 and 3 hereof are reasonable in view of the nature of the business in
which the Company is engaged and Employee's knowledge of, and responsibilities
with respect to, the Company's business, and that any breach of Sections 1, 2
or 3 hereof may cause the Company irreparable harm for which there is no
adequate remedy at law, and as a result of this, the Company will be entitled
to the issuance by a court of competent jurisdiction of an injunction,
restraining order or other equitable relief in favor of the Company, without
the necessity of posting a bond, restraining Employee from committing or
continuing to commit any such violation. Any right to obtain an injunction,
restraining order or other equitable relief hereunder will not be deemed to be
a waiver of any right to assert any other remedy the Company may have at law or
in equity, including, without limitation, the right to cancel payments to which
Employee is otherwise entitled under Employee's employment agreement.

          3.2  Any proceeding or action seeking equitable relief for violation
of Sections 1, 2 and 3 hereof must be commenced in the federal courts in the
Southern District of the State of New York, or in the absence of federal
jurisdiction in state court in the State of New York. Employee hereby
irrevocably and unconditionally submits to the exclusive jurisdiction of such
courts and agrees to take any and all future action necessary to submit to the
jurisdiction of such courts. Employee irrevocably waives any objection that
Employee now has or hereafter may have to the laying of
<PAGE>   9
                                                                    Attachment B

venue of any suit, action or proceeding brought in any such court and further
irrevocably waives any claim that any such suit, action or proceeding brought
in any such court has been brought in an inconvenient forum. Final judgment
against Employee in any such suit will be conclusive and may be enforced in
other jurisdictions by suit on the judgment, a certified or true copy of which
will be conclusive evidence of the fact and the amount of any liability therein
described, or by appropriate proceedings under an applicable treaty or
otherwise.

     4.   Governing Law.  This Agreement shall be governed by the laws of the
State of New York, without regard to the principles of conflicts of laws.

     Employee acknowledges that he has had a reasonable opportunity to review
and consider the terms described above and to consult with an attorney if he so
chooses prior to signing this Agreement. Fully understanding the above terms,
Employee is entering into this letter agreement knowingly and voluntarily

     IN WITNESS WHEREOF, the Parties have executed this Agreement on the day
and year first above written.

Dated: 9/26/00           /s/Kenneth S. Siegel
       --------        -------------------------
                         Kenneth S. Siegel

Dated:  9/29/00        /s/David Norton
        -------       --------------------------
                        D. Norton
                        Executive Vice President, Human Resources
                        Starwood Hotels & Resorts Worldwide, Inc.<PAGE>   1
                                                                  Exhibit 10.58

                              SEVERANCE AGREEMENT

     THIS AGREEMENT, dated September 26, 2000 (the "Effective Date"), is made
by and between Starwood Hotels and Resorts Worldwide, Inc., a Maryland
corporation (the "Company"), and Kenneth Siegel (the "Executive").

     WHEREAS, the Executive is employed by the Company as Executive Vice
President, General Counsel; 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 as 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.
<PAGE>   2
     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 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 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,
then, in any 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 Company
     shall pay to the Executive a lump sum severance payment, in cash, equal to
     two 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

                                       3

<PAGE>   4
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 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 prorated based upon the number of
days the Executive is employed by the Company during such year.

                                       4

<PAGE>   5
          (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, relocation and
     other 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 investments 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.

     7.   280G Cap.

          a.   Notwithstanding any other provisions of this Agreement, in the
event that any payment or benefit received or to be received by the Executive in
connection with a Change in Control or the termination of the Executive's
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)(all

                                       5
<PAGE>   6
such payments and benefits, including the Severance Payments, being hereinafter
called "Total Payments"), would not be deductible (in whole or part), by the
Company, an affiliate or Person making such payment or providing such benefit as
a result of section 280G of the Code, then, to the extent necessary to make such
portion of the Total Payments deductible (and after taking into account any
reduction in the Total Payments provided by reason of section 280G of the Code
in such other plan, arrangement or agreement), the cash Severance Payments shall
first be reduced (if necessary, to zero), and all other Severance Payments shall
thereafter be reduced (if necessary, to zero); provided, however, that the
Executive may elect to have the noncash Severance Payments reduced (or
eliminated) prior to any reduction of the cash Severance Payments.

     b. For purposes of this limitation, (i) no portion of the Total Payments
the receipt or enjoyment of which the Executive shall have waived at such time
and in such manner as not to constitute a "payment" within the meaning of
section 280G(b) of the Code shall be taken into account, (ii) no portion of the
Total Payments shall be taken into account which, in the opinion of 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"), does not constitute a "parachute
payment" within the meaning of section 280G(b)(2) of the Code, including by
reason of section 280G(b)(4)(A) of the Code, (iii) the Severance Payments shall
be reduced only to the extent necessary so that the Total Payments (other than
those referred to in clauses (i) or (ii)) in their entirety constitute
reasonable compensation for services actually rendered within the meaning of
section 280G(b)(4)(B) of the Code or are otherwise not subject to disallowance
as deductions by reason of section 280G of the Code, in the opinion of Tax
Counsel, and (iv) the value of any noncash benefit or any deferred payment or
benefit included in the Total Payments shall be determined by the Auditor in
accordance with the principles of sections 280G(d)(3) and (4) of the Code.

     c. If it is established pursuant to final determination of a court or an
Internal Revenue Service proceeding that, notwithstanding the good faith of the
Executive and the Company in applying the terms of this Section 7(c), the Total
Payments paid to or for the Executive's benefit are in an amount that would
result in any portion of such Total Payments being subject to the Excise Tax,
then, if such repayment would result in (i) no portion of the remaining Total
Payments being subject to the Excise Tax and (ii) a dollar-for-dollar reduction
in the Executive's taxable income and wages for purposes of federal, state and
local income and employment taxes, the Executive shall have an obligation to pay
the Company upon demand an amount equal to the sum of (i) the excess of the
Total Payments paid to or for the Executive's benefit over the Total Payments
that could have been paid to or for the Executive's benefit without any portion
of such Total Payments being subject to the Excise Tax; and (ii) interest on the
amount set forth in clause (i) of this sentence at the rate provided in section
1274(b)(2)(B) of the Code from the date of the Executive's receipt of such
excess until the date of such payment.

                                       6
<PAGE>   7
     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 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.

                                       7
<PAGE>   8
               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
owned 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 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

                                        8
<PAGE>   9
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: Executive Vice President, Human Resources

     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 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

                                       9
<PAGE>   10
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 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.

                                       10
<PAGE>   11
         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 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

                                       11

<PAGE>   12
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. 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

                                       12

<PAGE>   13
     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 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

                                       13
<PAGE>   14
          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;

                    (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.

                                       14
<PAGE>   15
               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.   "Notice of Termination" shall have the meaning set forth in
Section 8 hereof.

               q.   "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 indirectly, by the
stockholders of the Company in substantially the same proportions as their
ownership of stock of the Company.

               r.   "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:

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

                         (9)   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;

                         (10)  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

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

               s.   "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.

                                       15
<PAGE>   16
     t.   "Severance Payments" shall have the meaning set forth in Section 6
hereof.

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

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

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

                                       STARWOOD HOTELS AND RESORTS
                                       WORLDWIDE, INC.

                                       By: /s/ David Norton
                                          ------------------------------------
                                          Name: David Norton
                                          Title: Executive Vice President, Human
                                                 Resources
                                          Dated:            9/29/         , 2000
                                                --------------------------

                                       EXECUTIVE

                                       /s/ Kenneth S. Siegel
                                       ---------------------------------------
                                                  Kenneth S. Siegel
                                       Dated:      Sept. 26               , 2000
                                             -----------------------------

                                       Address:

                                       57 Greenfield Dr, Weston, CT 06883
                                       ----------------------------------------

                                       16
<PAGE>   17
                                                       ------------------------

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

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