Document:

exv10w66

 

Exhibit 10.66

AMENDMENT

TO

EXCHANGE RIGHTS AGREEMENT

(CLASS B OPERATING PARTNERSHIP UNITS)

          Amendment, dated as of December 17, 2003 (this “Amendment”), to Exchange
Rights Agreement dated as of January 2, 1998, among Starwood Hotels & Resorts
Worldwide, Inc. (the “Corporation”), SLC Operating Limited Partnership (the
“Operating Partnership”) and certain limited partners of the Operating
Partnership (the “Agreement”). All capitalized terms used in this First
Amendment and not otherwise defined herein shall have the respective meanings
assigned thereto in the Agreement.

          WHEREAS, the Board of Directors of the Corporation has determined that it
is advisable and in the best interests of the Corporation and its shareholders
to exercise the Corporation’s right pursuant to Section 2(c) of the Agreement
to modify the right to exchange Class B OP Units pursuant to the Agreement, and
the amendment thereto, dated October 10, 2002, as set forth in this Amendment
to extend the period of time during which the holders of Class B OP Units can
exchange such units for Class B EPS.

          NOW, THEREFORE, the Corporation agrees, for its benefit and the benefit of
the holders of Class B OP Units, as follows:

	 	1.	 	Notwithstanding anything contained in Section 2(a) of the
Agreement or in the form of Letter of Transmittal attached thereto as
Exhibit A to the contrary, a holder of Class B OP Units may make a
Class B EPS Request in a Letter of Transmittal delivered to the Trust
after the Cross-Over Date and on or prior to January 2, 2005.
	 
	 	2.	 	Except as otherwise specifically set forth herein, all terms and
provisions of the Agreement shall remain in full force and effect and
shall be unmodified by the effectiveness of this Amendment.

          IN WITNESS WHEREOF, Starwood Hotels & Resorts Worldwide, Inc. has
adopted this Amendment as of the date first above written.

	 	 	 	 	 	 	 
	 	 	STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:
	 	Kenneth S. Siegel
	

	 	 	 	Title:
	 	Executive Vice President,

General Counsel and Secretaryexv10w67

 

Exhibit 10.67

AMENDMENT

TO

EXCHANGE RIGHTS AGREEMENT

(CLASS A REALTY PARTNERSHIP UNITS)

          Second Amendment, dated as of December 17, 2003 (this “Amendment”), to
Exchange Rights Agreement dated as of January 2, 1998, among Starwood Hotels &
Resorts (the “Trust”), SLT Realty Limited Partnership (the “Realty
Partnership”) and certain limited partners of the Realty Partnership (the
“Agreement”). All capitalized terms used in this Amendment and not otherwise
defined herein shall have the respective meanings assigned thereto in the
Agreement.

          WHEREAS, the Board of Trustees of the Trust has determined that it is
advisable and in the best interests of the Trust and its shareholders to
exercise the Trust’s right pursuant to Section 2(c) of the Agreement to modify
the right to exchange Class A RP Units pursuant to the Agreement, and the
amendment thereto, dated October 10, 2002, as set forth in this Amendment to
extend the period of time during which the holders of Class A RP Units can
exchange such units for Class B EPS.

          NOW, THEREFORE, the Trust agrees, for its benefit and the benefit of the
holders of Class A RP Units, as follows:

	 	1.	 	Notwithstanding anything contained in Section 2(a) of the
Agreement or in the form of Letter of Transmittal attached thereto as
Exhibit A to the contrary, a holder of Class A RP Units may make a
Class B EPS Request in a Letter of Transmittal delivered to the Trust
after the Cross-Over Date and on or prior to January 2, 2005.
	 
	 	2.	 	Except as otherwise specifically set forth herein, all terms and
provisions of the Agreement shall remain in full force and effect and
shall be unmodified by the effectiveness of this Amendment.

          IN WITNESS WHEREOF, Starwood Hotels & Resorts has adopted this
Amendment as of the date first above written.

	 	 	 	 	 	 	 
	 	 	STARWOOD HOTELS & RESORTS
	 
	 	 	 	 	 	 
	

	 	By:	 	 	 	 
	 	 	 	 	

	

	 	 	 	Name:
	 	Kenneth S. Siegel
	

	 	 	 	Title:
	 	Vice President and General Counselexv10w68

 

Exhibit 10.68

November 13, 2003

Vasant Prabhu

298 Barrington Lane

Alamo, CA 94507

Dear Vasant,

We are delighted to confirm to you our invitation to join Starwood Hotels &
Resorts Worldwide, Inc. We recognize that a successful organization is the
reflection of a talented workforce and we look forward to your contributions.

Please review the attached documents specifically outlining our offer of
employment to you and acknowledge your acceptance of this offer by signing and
returning all of the attached documents to me. If you have any questions
concerning the terms of this offer, please contact me. As I mentioned, the
offer is contingent upon a positive outcome in checking your references.

Again, we look forward to you joining our team.

Sincerely,

David K. Norton

Executive Vice President, Human Resources

Starwood Hotels & Resorts Worldwide, Inc.

 

 

November 13, 2003

Vasant Prabhu

298 Barrington Lane

Alamo, CA 94507

Dear Vasant,

The specifics of your offer of employment with Starwood Hotels & Resorts
Worldwide, Inc. (“Starwood” or the “Company”) are outlined below:

Start Date:

Subject to the terms of this letter, your employment with Starwood will begin
on January 1, 2004.

Position:

Your position will be Executive Vice President, Finance & CFO located in White
Plains, NY, and you shall perform such duties and services as are assigned to
you by the Company as requested. 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 EVP, Finance & CFO. You will report to the
Chief Executive Officer of the Company.

Base Salary:

Your base salary will be $560,000 annually, paid in semi-monthly intervals of
$23,333.33 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 and division performance, and your achieving
specified performance criteria to be established and approved with your
manager. In the event that changes are made to any of the incentive plans, the
changes will apply to you as they do other employees of the Company.

 

 

Sign-on Bonus:

You will be paid a one-time sign-on bonus of $100,000 (gross), to be disbursed
to you within the first month of your employment. Your right to retain the
sign-on bonus is conditional upon remaining employed by Starwood for at least
one year. In the event that you voluntarily resign from Starwood or are
terminated for cause within this one year period, you would be obligated to
repay the entire amount (net of taxes) of the sign-on bonus.

Long Term Incentive:

You will be eligible to participate in the Starwood Long Term Incentive
Compensation Plan (“LTIP”). This plan currently provides for the award of
stock options and/or restricted shares at the Company’s discretion to high
performing executives. The actual number of shares granted, if any, will be
based upon your performance.

Sign-on Stock Options:

Effective the first day of the month following your employment, you will be
granted 200,000 stock options and 20,000 shares of restricted stock pursuant to
the terms of the LTIP. The options will have an exercise price equal to the
average of the high and low sales prices of Starwood common stock as reported
in the New York Stock Exchange Composite Transactions on the date of grant.
The stock options and restricted shares will vest in accordance with the LTIP
and will otherwise be governed by the provisions of the LTIP. You will next be
eligible for an award under the LTIP in 2004.

Further details will be provided in the award notification to be delivered to
you following the start of 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 normal contribution rate with Starwood and your COBRA amount.

 

 

Relocation:

Starwood has selected Cendant Mobility Services to administer our Relocation
Program. Starwood will pay the reasonable, out-of-pocket costs of relocating
your family and household furnishings from California to New York/Connecticut
in accordance with the provisions of Starwood’s Relocation Program. Details of
Starwood’s Relocation Program are enclosed. To be eligible for reimbursement
of certain benefits, you are required to utilize the services of an agent in
the Cendant Moblity Preferred Network on both departure and destination.

A home buy-out option will be afforded you as you make this transition. Cendant
will arrange for two appraisals of your home. If those appraisals are more than
5% apart, a third appraisal will be ordered. The appraisals will then be
averaged and you will be offered that amount for your home. Once the offer is
made you will have 60 days to accept it. We will guarantee the original
purchase price of your home. You will not be required to market your home in
advance of initiating this buyout option.

Your relocations benefits will include a one-month’s salary settling in
allowance (subject to taxes) and your temporary living needs will be taken care
of by staying in one of our hotels until your family is able to move to the new
location.

To initiate the moving process, please contact your Human Resources office.
You will be assigned to a Client Services Consultant at Cendant Mobility who
will provide you with relocation assistance and the names of the Preferred
Network agents. In an effort to fully utilize our relocation benefit and
avoid additional tax liability, we ask that you do not begin your relocation
process before being contacted by your assigned Cendant Client Services
Consultant. Please do not sign a Listing Agreement or begin searching for a
new home until you have spoken with your Consultant. For questions regarding
policy benefits or to register a real estate agent with Cendant, please call
1-800-423-8624.

In the event that you accept this offer of employment and relocation expenses
are paid to you or on your behalf, you agree that if you voluntarily terminate
your employment within one year after your first day of employment, you will
repay all such relocation expenses, reduced by 1/12 for each full calendar
month actually worked. In addition, eligibility for reimbursement of any and
all relocation expenses will cease on the last day of employment and any
relocation expenses incurred after that date will not be reimbursed by Starwood
and will be your responsibility.

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 Mutual Agreement to Arbitrate provided to you herewith
(Attachment A) and incorporated herein by reference.

 

 

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 guaranteeing employment for any definite or specific term or
duration.

Severance:

In accordance with the paragraphs below, for the period beginning with your
start date and ending with the three year anniversary of the start date, in the
event you are terminated without cause or resign for good reason, you will be
entitled to salary and benefit coverage for the balance of that time period.
After the initial three year period you will revert to the severance benefits
described below. In no circumstance would your severance be less than twelve
(12) months if you are terminated without cause or resign for good reason.

In the event that Starwood terminates your employment for any reason other than
“cause” or you resign for “good reason”, 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 normal contribution for up to 12 months
commencing on the termination date. Additionally, Starwood will accelerate the
vesting of 50% of your unvested restricted stock. You will not be entitled to
any Termination Payments if you resign your employment with the Company without
good reason. 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. In
the event you allege a breach of “good reason” the company will have 30 days to
cure the alleged breach.

For purposes of this letter, “cause,” shall mean (i) any material breach by you
of any of the duties, responsibilities or obligations of your employment, or
any of the written policies 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 material
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. “Good reason” shall mean a
significant reduction in your responsibilities or authority as EVP Finance &
CFO, a demotion in title or reporting relationship, or a material reduction in
base compensation.

 

 

Other Conditions and Obligations:

You acknowledge 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. Restrictions include 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 and Intellectual Property Agreement attached
hereto (Attachment B) and incorporated herein by reference.

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 or Starwood’s General Counsel.

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

David K. Norton

Executive Vice President

Starwood Hotels & Resorts Worldwide, Inc.

	 	 	 	 	 	 	 	 	 
	cc:	 	
Personnel File	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	
ACCEPTED AND AGREED TO:	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	 	 	 	 	 	 	 
	 	 	/s/ Vasant Prabhu

	 	 	 	November  20, 2003

	 	 
	 	 	
Vasant Prabhu
	 	 	 	Date
	 	 

 

 

Attachment B

NON-SOLICITATION, CONFIDENTIALITY AND INTELLECTUAL PROPERTY AGREEMENT

          This Non-solicitation, Confidentiality Agreement (“Agreement”) is entered
into as of this 13th day of November 2003, (the “Effective Date”), by and
between Starwood Hotels & Resorts Worldwide, Inc. (the “Company”) and Vasant
Prabhu (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, Employee may create inventions, trade secrets, know-how and
documents or other works of authorship and may appear or perform in various
promotional materials within the scope of Employee’s employment.

          WHEREAS, in consideration of the Company’s offer of employment, 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 or 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 interests. 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 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,
design plans and strategies, 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. Intellectual Property and Publicity Rights. Employee acknowledges and
agrees that all right, title and interest in and to patents, patent
applications, inventions, improvements, discoveries, developments, processes,
business methods, technical information, know-how, trade secrets, computer
programs, writings, designs, copyrights, maskworks, trademarks, service marks,
trade names, trade dress and the like (collectively, “Intellectual Property”),
including the right to invoke the benefit of the right of priority provided by
any treaty to which the United States is a party, which Employee creates,
conceives, develops or obtains, either solely or jointly with others, during
Employee’s employment with the Company (a) with the use of the Company’s time
materials, facilities or other resources; or (b) resulting from or suggested by
Employee’s work for the Company; or (c) in any way relating to any subject
matter relating to the existing or contemplated business, products and services
of the Company or the Company’s affiliates, subsidiaries and licensees shall be
owned by the Company. Upon request, Employee shall execute all such
assignments and other documents and take all such other action as the Company
may reasonably request in order to vest in the Company, or its nominee, all of
Employee’s right, title, and interest in and to such Intellectual Property.
Employee further acknowledges and agrees that the Company shall have the
perpetual, worldwide right to use Employee’s name, performance, biography,
voice, image, signature and likeness in promotional or any other materials
developed by or for the Company during Employee’s employment with the Company.

          4. Equitable Relief.

               4.1 Employee acknowledges that the restrictions and obligations 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.

               4.2 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 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.

          5. Severability. In the event that any provision of this Agreement
conflicts with the law under which this Agreement is to be construed, and/or if
any such provision is held invalid by a court with jurisdiction over the
parties to this Agreement and the subject matter of this agreement, (a) such
provision will be deemed to be restated to reflect as nearly as possible the
original intentions of the parties to the fullest extent permitted under
applicable law, and (b) the remaining terms and provisions of this Agreement
will remain in full force and effect.

          6. 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.

	 	 	 
	EMPLOYEE	 	
STARWOOD HOTELS & RESORTS WORLDWIDE, INC.
	 	 	 
	/s/ Vasant Prabhu	 	/s/ David K. Norton
	
	 	

	Vasant Prabhu	 	
David K. Norton
	 	 	
EVP, Human Resources
	Vasant Prabhu	 	 
	

Print Name	 	 
	 	 	
November 13, 2003
	 	 	

	 	 	
Date
	November 20, 2003
	 	 
	

Date

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