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                                                                   EXHIBIT 10.43

                           CHANGE OF CONTROL AGREEMENT

     AGREEMENT by and between Hilton Hotels Corporation, a Delaware corporation
(the "Company"), and __________________ (the "Employee"), dated as of the ____
day of ________, ____.

     The Board of Directors of the Company (the "Board"), has determined that it
is in the best interests of the Company and its shareholders to assure that the
Company will have the continued dedication of the Employee, notwithstanding the
possibility, threat, or occurrence of a Change of Control (as defined below) of
the Company. The Board believes it is imperative to diminish the inevitable
distraction of the Employee by virtue of the personal uncertainties and risks
created by a pending or threatened Change of Control, to encourage the
Employee's full attention and dedication to the Company currently and in the
event of any threatened or pending Change of Control, and to provide the
Employee with compensation arrangements upon a Change of Control which provide
the Employee with individual financial security and which are competitive with
those of other corporations and, in order to accomplish these objectives, the
Board has caused the Company to enter into this Agreement.

     NOW, THEREFORE, IT IS HEREBY AGREED AS FOLLOWS:

     1.   CERTAIN DEFINITIONS.

     (a)  The "Effective Date" shall be the first date during the "Change of
Control Period" (as defined in Section 1(b)) on which a Change of Control
occurs. Anything in this Agreement to the contrary notwithstanding, if the
Employee's employment with the Company is terminated prior to the date on which
a Change of Control occurs, and it is reasonably demonstrated by Employee that
such termination (1) was at the request of a third party who has taken steps
reasonably calculated to effect a Change of Control or (2) otherwise arose in
connection with or anticipation of a Change of Control, then for all purposes of
this Agreement the "Effective Date" shall mean the date immediately prior to the
date of such termination.

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     (b)  The "Change of Control Period" is the period commencing on the date
hereof and ending on the earlier to occur of (i) the third anniversary of such
date or (ii) the first day of the month next following the Employee's attainment
of age 65; PROVIDED, HOWEVER, that commencing on the date one year after the
date hereof, and on each annual anniversary of such date (such date and each
annual anniversary thereof is hereinafter referred to as the "Renewal Date"),
the Change of Control Period shall be automatically extended so as to terminate
on the earlier of (x) three years from such Renewal Date or (y) the first day of
the month coinciding with or next following the Employee's attainment of age 65,
unless at least 60 days prior to the Renewal Date the Company shall give the
Employee written notice that the Change of Control Period shall not be so
extended.

     2.   CHANGE OF CONTROL. For the purpose of this Agreement, a "Change of
Control" shall mean:

     (a)  The acquisition by any person, entity or group, within the meaning of
Section 13(d)(3) or 14(d)(2) of the Securities Exchange Act of 1934 (the
"Exchange Act"), (excluding, for this purpose, (A) the Company or its
subsidiaries, (B) any employee benefit plan of the Company or its subsidiaries
which acquires beneficial ownership of voting securities of the Company or (C)
Barron Hilton or the Conrad N. Hilton Fund, collectively the "Hilton
Interests"), of beneficial ownership, (within the meaning of Rule 13d-3
promulgated under the Exchange Act) of 20% or more of either the then
outstanding shares of common stock or the combined voting power of the Company's
then outstanding voting securities entitled to vote generally in the election of
directors; or

     (b)  Individuals who, as of the date hereof, constitute the Board (as of
the date hereof the "Incumbent Board") cease for any reason to constitute at
least a majority of the Board, provided that any person becoming a director
subsequent to the date hereof whose election, or nomination for election by the
Company's shareholders, was approved by a vote of at least a majority of the
directors then comprising the Incumbent Board (other than an election or
nomination of an individual whose initial assumption of office is in connection
with an actual or threatened election contest relating to the election of the
Directors of the Company, as such terms are used in Rule 14a-

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11 of Regulation 14A promulgated under the Exchange Act) shall be, for purposes
of this Agreement, considered as though such person were a member of the
Incumbent Board; or

     (c)  Approval by the stockholders of the Company of (A) a reorganization,
merger or consolidation, in each case, with respect to which persons who were
the stockholders of the Company immediately prior to such reorganization, merger
or consolidation do not, immediately thereafter, own more than 50% of the
combined voting power entitled to vote generally in the election of directors of
the reorganized, merged or consolidated company's then outstanding voting
securities, or (B) a liquidation or dissolution of the Company or (C) the sale
of all or substantially all of the assets of the Company.

     3.   EMPLOYMENT PERIOD. If there is a Change of Control, the Company hereby
agrees to continue the Employee in its employ, and the Employee hereby agrees to
remain in the employ of the Company, for the period commencing on the Effective
Date and ending on the earlier to occur of (a) the third anniversary of such
date or (b) the first day of the month coinciding with or next following the
Employee's attainment of age 65 (the Employment Period).

     4.   TERMS OF EMPLOYMENT.

     (a)  POSITION AND DUTIES.

          (i)  During the Employment Period, (A) the Employee's position
(including status, offices, titles and reporting requirements), authority,
duties and responsibilities shall be at least commensurate in all material
respects with the most significant of those held, exercised and assigned at any
time during the 90-day period immediately preceding the Effective Date and (B)
the Employee's services shall be performed at the location where the Employee
was employed immediately preceding the Effective Date or any office or location
less than thirty-five (35) miles from such location.

          (ii) During the Employment Period, and excluding any periods of
vacation and sick leave to which the Employee is entitled, the Employee agrees
to devote reasonable attention and time during normal business hours to the
business and affairs of the Company and, to the extent necessary to discharge
the responsibilities assigned to the Employee hereunder, to use the

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Employee's reasonable best efforts to perform faithfully and efficiently such
responsibilities. During the Employment Period it shall not be a violation of
this Agreement for the Employee to (A) serve on corporate, civic or charitable
boards or committees, (B) deliver lectures, fulfill speaking engagements or
teach at educational institutions, (C) manage personal investments and (D)
participate as a member or consultant to professional associations and to
otherwise participate in the activities of associations in such manner as has
been historically conducted by the Employee, so long as such activities do not
significantly interfere with the performance of the Employee's responsibilities
as an employee of the Company in accordance with this Agreement. It is expressly
understood and agreed that to the extent that any such activities have been
conducted by the Employee prior to the Effective Date, the continued conduct of
such activities (or the conduct of activities similar in nature and scope
thereto) subsequent to the Effective Date shall not thereafter be deemed to
interfere with the performance of the Employee's responsibilities to the
Company.

     (b)  COMPENSATION.

          (i)  BASE SALARY. During the Employment Period, the Employee shall
receive an annual base salary ("Base Salary") at a monthly rate at least equal
to the highest monthly base salary paid or payable to the Employee by the
Company during the twelve-month period immediately preceding the month in which
the Effective Date occurs. During the Employment Period, the Base Salary shall
be reviewed at least annually and shall be increased at any time and from time
to time as shall be substantially consistent with increases in base salary
awarded in the ordinary course of business to other key employees of the Company
and its subsidiaries. Any increase in Base Salary shall not serve to limit or
reduce any other obligation to the Employee under this Agreement. Base Salary
shall not be reduced after any such increase.

          (ii) ANNUAL BONUS. In addition to Base Salary, the Employee shall be
awarded, for each fiscal year during the Employment Period, an annual bonus (an
"Annual Bonus") (either pursuant to the incentive compensation plan of the
Company or otherwise) in cash at least equal to the average bonus payable to the
Employee from the Company and its subsidiaries in respect of the three fiscal
years immediately preceding the fiscal year in which the Effective Date

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occurs.

          (iii) INCENTIVE, SAVINGS AND RETIREMENT PLANS. In addition to Base
Salary and Annual Bonus payable as hereinabove provided, the Employee shall be
entitled to participate during the Employment Period in all incentive, savings
and retirement plans, practices, policies and programs applicable to other key
employees of the Company and its subsidiaries (including the Company's employee
benefit plans, in each case providing benefits which are the economic equivalent
to those in effect or as subsequently amended). Such plans, practices, policies
and programs, in the aggregate, shall provide the Employee with compensation,
benefits and reward opportunities at least as favorable as the most favorable of
such compensation, benefits and reward opportunities provided by the Company for
the Employee under such plans, practices, policies and programs as in effect at
any time during the 90-day period immediately preceding the Effective Date or,
if more favorable to the Employee, as provided at any time thereafter with
respect to other key employees of the Company and its subsidiaries.

          (iv) WELFARE BENEFIT PLANS. During the Employment Period, the Employee
and/or the Employee's family, as the case may be, shall be eligible for
participation in and shall receive all benefits under welfare benefit plans,
practices, policies and programs provided by the Company and its subsidiaries
(including, without limitation, medical, prescription, dental, disability,
salary continuance, employee life, group life, accidental death and travel
accident insurance plans and programs), at least as favorable as the most
favorable of such plans, practices, policies and programs in effect at any time
during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Employee and/or the Employee's family, as in effect at any time
thereafter with respect to other key employees of the Company and its
subsidiaries.

          (v)  EXPENSES. During the Employment Period, the Employee shall be
entitled to receive prompt reimbursement for all reasonable expenses incurred by
the Employee in accordance with the most favorable policies, practices and
procedures of the Company and its subsidiaries in effect at any time during the
90-day period immediately preceding the Effective Date or, if more favorable to
the Employee, as in effect at any time thereafter with respect to other key

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employees of the Company and its subsidiaries.

          (vi) FRINGE BENEFITS. During the Employment Period, the Employee shall
be entitled to fringe benefits, including use of an automobile and payment of
related expenses, in accordance with the most favorable plans, practices,
programs and policies of the Company and its subsidiaries in effect at any time
during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Employee, as in effect at any time thereafter with respect to
other key employees of the Company and its subsidiaries.

     (c)  OFFICE AND SUPPORT STAFF. During the Employment Period, the Employee
shall be entitled to an office or offices of a size and with furnishings and
other appointments, and to secretarial and other assistance, at least equal to
the most favorable of the foregoing provided to the Employee by the Company and
its subsidiaries at any time during the 90-day period immediately preceding the
Effective Date or, if more favorable to the Employee, as provided at any time
thereafter with respect to other key employees of the Company and its
subsidiaries.

     (d)  VACATION. During the Employment Period, the Employee shall be entitled
to paid vacation in accordance with the most favorable plans, policies, programs
and practices of the Company and its subsidiaries as in effect at any time
during the 90-day period immediately preceding the Effective Date or, if more
favorable to the Employee, as in effect at any time thereafter with respect to
other key employees of the Company and its subsidiaries.

     (e)  INDEMNIFICATION. During the term of the Employee's employment with the
Company and for a period of not less than three years (or, if applicable, such
longer period as the Company then provides coverage for its executives
generally) after the Date of Termination (as defined below) the Employee shall
be entitled to indemnification and, to the extent available on commercially
reasonable terms, insurance coverage therefor, with respect to the various
liabilities as to which the Employee has been customarily indemnified during the
Change of Control Period.

     5.   TERMINATION.

     (a)  DEATH OR DISABILITY. This Agreement shall terminate automatically upon
the Employee's death. If the Company determines in good faith that the
Disability of the Employee has

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occurred (pursuant to the definition of "Disability" set forth below), it may
give to the Employee written notice of its intention to terminate the Employee's
employment. In such event, the Employee's employment with the Company shall
terminate effective on the 30th day after receipt of such notice by the Employee
(the "Disability Effective Date"), provided that, within the 30 days after such
receipt, the Employee shall not have returned to full-time performance of the
Employee's duties. For purposes of this Agreement, "Disability" means disability
which, at least 26 weeks after its commencement, is determined to be total and
permanent by a physician selected by the Company or its insurers and acceptable
to the Employee or the Employee's legal representative (such agreement as to
acceptability not to be withheld unreasonably).

     (b)  CAUSE. During the Employment Period, the Company may terminate the
Employee's employment for "Cause." For purposes of this Agreement, "Cause" means
(i) an act or acts of personal dishonesty taken by the Employee and intended to
result in substantial personal enrichment of the Employee at the expense of the
Company, (ii) repeated violations by the Employee of the Employee's obligations
under Section 4(a) of this Agreement which are demonstrably willful and
deliberate on the Employee's part and which are not remedied in a reasonable
period of time after receipt of written notice from the Company, (iii) the
conviction of the Employee of a felony, (iv) any refusal by the Employee to
provide appropriate information or to otherwise participate and cooperate in
connection with the obtaining by the Company or any of its subsidiaries of all
licenses, permits and approvals necessary to the conduct of their business, or
(v) the inability of the Employee to obtain any license, permit or other
authorization required to be obtained by the Employee as a condition to the
conduct of business by the Company or its subsidiaries.

     (c)  GOOD REASON. During the Employment Period, the Employee's employment
may be terminated by the Employee for Good Reason. For purposes of this
Agreement, "Good Reason" means

          (i)  the assignment to the Employee of any duties inconsistent in any
respect with the Employee's position (including status, offices, titles and
reporting requirements), authority, duties or responsibilities as contemplated
by Section 4(a) of this Agreement, or any other

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action by the Company which results in a diminution in such position, authority,
duties or responsibilities, excluding for this purpose an isolated,
insubstantial and inadvertent action not taken in bad faith and which is
remedied by the Company promptly after receipt of notice thereof given by the
Employee;

          (ii) any failure by the Company to comply with any of the provisions
of Section 4(b) of this Agreement, other than an isolated, insubstantial and
inadvertent failure not occurring in bad faith and which is remedied by the
Company promptly after receipt of notice thereof given by the Employee;

         (iii) the Company's requiring the Employee to be based at any office
or location other than that described in Section 4(a)(i)(B) hereof, except
for travel reasonably required in the performance of the Employee's
responsibilities;

          (iv) any purported termination by the Company of the Employee's
employment otherwise than as expressly permitted by this Agreement; or

           (v) any failure by the Company to comply with and satisfy  Section
11(c) of this Agreement.

     For purposes of this Section 5(c), any good faith determination of "Good
Reason" made by the Employee shall be conclusive.

     Anything in this Agreement to the contrary notwithstanding, a termination
of employment by the Executive for any reason during the 30-day period
immediately following the first anniversary of the Effective Date shall be
deemed to be a termination for Good Reason for all purposes of this Agreement.

     (d)  NOTICE OF TERMINATION. During the Employment Period, any termination
by the Company for Cause or by the Employee for Good Reason shall be
communicated by Notice of Termination to the other party hereto given in
accordance with Section 12(b) of this Agreement. For purposes of this Agreement,
a "Notice of Termination" means a written notice which (i) indicates the
specific termination provision in this Agreement relied upon, (ii) sets forth in
reasonable detail the facts and circumstances claimed to provide a basis for
termination of the Employee's

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employment under the provision so indicated and (iii) if the Date of Termination
is other than the date of receipt of such notice, specifies the termination date
(which date shall be not more than fifteen (15) days after the giving of such
notice). The failure by the Employee to set forth in the Notice of Termination
any fact or circumstance which contributes to a showing of Good Reason shall not
waive any right of the Employee hereunder or preclude the Employee from
asserting such fact or circumstance in enforcing his rights hereunder.

     (e)  DATE OF TERMINATION. During the Employment Period, "Date of
Termination" means the date of receipt of the Notice of Termination or any later
date specified therein, as the case may be; PROVIDED, HOWEVER, that (i) if the
Employee's employment is terminated by the Company other than for Cause or
Disability, the Date of Termination shall be the date on which the Company
notifies the Employee of such termination and (ii) if the Employee's employment
is terminated by reason of death or Disability, the Date of Termination shall be
the date of death of the Employee or the Disability Effective Date, as the case
may be.

     6.   OBLIGATIONS OF THE COMPANY UPON TERMINATION.

     (a)  DEATH. If the Employee's employment is terminated during the
Employment Period by reason of the Employee's death, this Agreement shall
terminate without further obligations to the Employee's legal representatives
under this Agreement, other than those obligations specifically provided for in
this Agreement (which shall be paid in accordance with their terms) and
obligations accrued or earned and vested (if applicable) by the Employee as of
the Date of Termination, which shall include for this purpose (i) the Employee's
full Base Salary through the Date of Termination at the rate in effect on the
Date of Termination or, if higher, at the highest rate in effect at any time
from the start of the 90-day period preceding the Effective Date through the
Date of Termination (the "Highest Base Salary"), (ii) the product of the Annual
Bonus paid to the Employee for the last full fiscal year and a fraction, the
numerator of which is the number of days in the current fiscal year through the
Date of Termination, and the denominator of which is 365 and (iii) any
compensation previously deferred by the Employee (together with any accrued
interest thereon) and not yet paid by the Company and any accrued vacation pay
not yet paid by the

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Company (such amounts specified in clauses (i), (ii) and (iii) are hereinafter
referred to as "Accrued Obligations"). All such Accrued Obligations shall be
paid to the Employee's estate or beneficiary, as applicable, in a lump sum in
cash within 30 days of the Date of Termination. Anything in this Agreement to
the contrary notwithstanding, the Employee's family shall be entitled to receive
benefits at least equal to the most favorable benefits provided by the Company
and any of its subsidiaries to surviving families of employees of the Company
and such subsidiaries under such plans, programs, practices and policies
relating to family death benefits, if any, in accordance with the most favorable
plans, programs, practices and policies of the Company and its subsidiaries in
effect at any time during the 90-day period immediately preceding the Effective
Date or, if more favorable to the Employee and/or the Employee's family, as in
effect on the date of the Employee's death with respect to other key employees
of the Company and its subsidiaries and their families.

     (b)  DISABILITY. If the Employee's employment is terminated by
reason of the Employee's Disability, this Agreement shall terminate without
further obligations to the Employee, other than those obligations accrued or
earned and vested (if applicable) by the Employee as of the Date of Termination,
including for this purpose, all Accrued Obligations. All such Accrued
Obligations shall be paid to the Employee in a lump sum in cash within 30 days
of the Date of Termination. Anything in this Agreement to the contrary
notwithstanding, the Employee shall be entitled after the Disability Effective
Date to receive disability and other benefits at least equal to the most
favorable of those provided by the Company and its subsidiaries to disabled
employees and/or their families in accordance with such plans, programs,
practices and policies relating to disability, if any, in accordance with the
most favorable plans, programs, practices and policies of the Company and its
subsidiaries in effect at any time during the 90-day period immediately
preceding the Effective Date or, if more favorable to the Employee and/or the
Employee's family, as in effect at any time thereafter with respect to other key
employees of the Company and its subsidiaries and their families.

     (c)  CAUSE; OTHER THAN FOR GOOD REASON. If the Employee's employment shall
be terminated for Cause, this Agreement shall terminate without further
obligations to the Employee

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other than the obligation to pay to the Employee the Highest Base Salary through
the Date of Termination plus the amount of any compensation previously deferred
by the Employee (together with accrued interest thereon). If the Employee
terminates employment other than for Good Reason, this Agreement shall terminate
without further obligations to the Employee, other than those obligations
accrued or earned and vested (if applicable) by the Employee through the Date of
Termination, including for this purpose, all Accrued Obligations. All such
Accrued Obligations shall be paid to the Employee in a lump sum in cash within
30 days of the Date of Termination.

     (d)  GOOD REASON; OTHER THAN FOR CAUSE OR DISABILITY. If, during the
Employment Period, the Company shall terminate the Employee's employment other
than for Cause, Disability, or death or if the Employee shall terminate his
employment for Good Reason and the Employee executes, and does not revoke, a
written release, substantially in the form then used by the Company for its
executives generally, of any and all claims against the Company and all related
parties with respect to all matters arising out of the Employee's employment by
the Company (other than any entitlements under the terms of this Agreement or
under any other plans or programs of the Company in which the Employee
participated and under which the Employee has accrued a benefit), or the
termination thereof,

          (i)  the Company shall pay to the Employee in a lump sum in cash
within 30 days after the Date of Termination the aggregate of the following
amounts:

               (A)  to the extent not theretofore paid, the Employee's Highest
Base Salary through the Date of Termination; and

               (B)  the product of (x) the Annual Bonus paid to the Employee for
the last full fiscal year (if any) ending during the Employment Period or, if
higher, the Annual Bonus paid to the Employee for the last full fiscal year
prior to the Effective Date (as applicable, the "Recent Bonus") and (y) a
fraction, the numerator of which is the number of days in the current fiscal
year through the Date of Termination and the denominator of which is 365; and

               (C)  the product of (x) 1.49 and (y) the sum of (i) the Highest
Base Salary and (ii) the Recent Bonus; and

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               (D)  in exchange for the Employee's obligations under Section 10
of this Agreement, the product of (x) 1.5 and (y) the sum of (i) the Highest
Base Salary and (ii) the Recent Bonus; and

               (E)  in the case of compensation previously deferred by the
Employee, all amounts previously deferred (together with any accrued interest
thereon) and not yet paid by the Company, and any accrued vacation pay not yet
paid by the Company; and

               (F)  the Employee shall be entitled to receive a lump-sum cash
payment equal to the amount which the Company would have credited to the
Employees Company Contribution Account under the Company's Executive Deferred
Compensation Plan (the "Deferred Compensation Plan") during the remainder of the
Employment Period if during the remainder of the Employment Period the Employee
had deferred under the Deferred Compensation Plan the average amount of deferral
the Employee had elected with respect to the Employee's Compensation for the 12
months immediately preceding the Date of Termination and if the Employee's
annual Compensation during the Employment Period were equal to the sum of the
Employee's Highest Base Salary and Recent Bonus. For the purposes of determining
the amount of this cash payment, no adjustment shall be made for any amounts
which the Company would have contributed to the Employee's account in the Hilton
Hotels Corporation Thrift Savings Plan during the Employment Period.

          (ii) for the remainder of the Employment Period, or such longer period
as any plan, program, practice or policy may provide, the Company shall continue
benefits to the Employee and/or the Employee's family at least equal to those
which would have been provided to them in accordance with the plans, programs,
practices and policies described in Sections 4(b)(iv) and (vi) of this Agreement
if the Employee's employment had not been terminated, including health insurance
and life insurance, in accordance with the most favorable plans, practices,
programs or policies of the Company and its subsidiaries during the 90-day
period immediately preceding the Effective Date or, if more favorable to the
Employee, as in effect at any time thereafter with respect to other key
employees and their families and for purposes of eligibility for retiree
benefits pursuant

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to such plans, practices, programs and policies, the Employee shall be
considered to have remained employed until the end of the Employment Period and
to have retired on the last day of such period.

     7.   NON-EXCLUSIVITY OF RIGHTS. During and after the Employment
Period, nothing in this Agreement shall prevent or limit the Employee's
continuing or future participation in any benefit, bonus, incentive or other
plans, programs, policies or practices provided by the Company or any of its
subsidiaries and for which the Employee may qualify, nor shall anything herein
limit or otherwise affect such rights as the Employee may have under any stock
option or other agreements with the Company or any of its subsidiaries. Amounts
which are vested benefits or for which the Employee is otherwise entitled to
receive under any plan, policy, practice or program of the Company or any of its
subsidiaries at or subsequent to the Date of Termination shall be payable in
accordance with such plan, policy, practice or program.

     8.   FULL SETTLEMENT. The Company's obligation to make the payments
provided for in this Agreement and otherwise to perform its obligations
hereunder shall not be affected by any set-off, counterclaim, recoupment,
defense or other claim, right or action which the Company may have against the
Employee or others except as specifically provided herein. In no event shall the
Employee be obligated to seek other employment or take any other action by way
of mitigation of the amounts payable to the Employee under any of the provisions
of this Agreement. The Company agrees to pay, to the full extent permitted by
law, all legal fees and expenses which the Employee may reasonably incur as a
result of any contest (regardless of the outcome thereof) by the Employee, the
Company or others of the validity or enforceability of, or liability under, any
provision of this Agreement or any guarantee of performance thereof (including
as a result of any contest by the Employee about the amount of any payment
pursuant to Section 9 of this Agreement), plus in each case interest at the
applicable Federal rate provided for in Section 7872(f)(2) of the Internal
Revenue Code of 1986, as amended (the Code).

     9.   CERTAIN ADDITIONAL PAYMENTS BY THE COMPANY.

     (a)  Anything in this Agreement to the contrary notwithstanding, in the
event that it shall be determined that any payment or distribution by the
Company to or for the benefit of the

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Employee, whether paid or payable or distributed or distributable pursuant to
the terms of this Agreement or otherwise (the "Payment"), would constitute an
"excess parachute payment" within the meaning of Section 280G of the Code, the
Employee shall be paid an additional amount (the "Gross-Up Payment") such that
the net amount retained by the Employee after deduction of any excise tax
imposed under Section 4999 of the Code, and any federal, state and local income
and employment tax and excise tax imposed upon the Gross-Up Payment shall be
equal to the Payment. For purposes of determining the amount of the Gross-Up
Payment, the Employee shall be deemed to pay federal income tax and employment
taxes at the highest marginal rate of federal income and employment taxation in
the calendar year in which the Gross-Up Payment is to be made and state and
local income taxes at the highest marginal rate of taxation in the state and
locality of the Employee's residence (or, if greater, the state and locality in
which the Employee is required to file a nonresident income tax return with
respect to the Payment) on the Termination Date, net of the maximum reduction in
federal income taxes that may be obtained from the deduction of such state and
local taxes.

     (b)  All determinations to be made under this Section 9 shall be made by
the Company's independent public accountant immediately prior to the Change of
Control (the "Accounting Firm"), which firm shall provide its determinations and
any supporting calculations both to the Company and the Employee within 10 days
of the Termination Date. Any such determination by the Accounting Firm shall be
binding upon the Company and the Employee. Within five days after the Accounting
Firm's determination, the Company shall pay (or cause to be paid) or distribute
(or cause to be distributed) to or for the benefit of the Employee such amounts
as are then due to the Employee under this Agreement.

     (c)  The Employee shall notify the Company in writing of any claim by the
Internal Revenue Service that, if successful, would require the payment by the
Company of the Gross-Up Payment (taking into account any amounts theretofore
already paid by the Company). Such notification shall be given as soon as
practicable but no later than ten business days after the Employee knows of such
claim and shall apprise the Company of the nature of such claim and the

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date on which such claim is requested to be paid. The Employee shall not pay
such claim prior to the expiration of the thirty day period following the date
on which it gives such notice to the Company (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due). If the
Company notifies the Employee in writing prior to the expiration of such period
that it desires to contest such claim, the Employee shall:

          (i)  give the Company any information reasonably requested by the
Company relating to such claim,

          (ii) take such action in connection with contesting such claim as the
Company shall reasonably request in writing from time to time, including,
without limitation, accepting legal representation with respect to such claim by
an attorney reasonably selected by the Company,

          (iii) cooperate with the Company in good faith in order to effectively
contest such claim, and

          (iv) permit the Company to participate in any proceedings relating to
such claim;

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Employee harmless, on an
after-tax basis, for any Excise Tax, income tax or employment tax, including
interest and penalties, with respect thereto, imposed as a result of such
representation and payment of costs and expenses. Without limitation on the
foregoing provisions of this Section 9, the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forego any and all administrative appeals, proceedings, hearings and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Employee to pay the tax claimed and sue for a
refund or contest the claim in any permissible manner, and the Employee agrees
to prosecute such contest to a determination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided further, however, that if the Company directs
the Employee

                                       15

<PAGE>

to pay such claim and sue for a refund the Company shall advance the amount of
such payment to the Employee, on an interest-free basis and shall indemnify and
hold the Employee harmless, on an after-tax basis, from any Excise Tax, income
tax or employment tax, including interest or penalties with respect thereto,
imposed with respect to such advance or with respect to any imputed income with
respect to such advance; and provided further that any extension of the statute
of limitations relating to payment of taxes for the taxable year of the Employee
with respect to which such contested amount is claimed to be due is limited
solely to such contested amount. Furthermore, the Company's control of the
contest shall be limited to issues with respect to which a Gross-Up Payment
would be payable hereunder and the Employee shall be entitled to settle or
contest, as the case may be, any other issue raised by the Internal Revenue
Service or any other taxing authority.

     (d)  If, after the receipt by the Employee of an amount advanced by the
Company pursuant to this Section, the Employee becomes entitled to receive any
refund with respect to such claim, the Employee shall (subject to the Company's
complying with the requirements of subsection (b)) promptly pay to the Company
the amount of such refund (together with any interest paid or credited thereon
after taxes applicable thereto). If, after the receipt by the Employee of an
amount advanced by the Company pursuant to this Section, a determination is made
that the Employee shall not be entitled to any refund with respect to such claim
and the Company does not notify the Employee in writing of its intent to contest
such denial of refund prior to the expiration of thirty days after such
determination, then such advance shall be forgiven and shall not be required to
be repaid and the amount of such advance shall offset, to the extent thereof,
the amount of Gross-Up Payment required to be paid.

     (e)  All of the fees and expenses of the Accounting Firm in performing the
determinations referred to in subsections (b) and (c) above shall be borne
solely by the Company. The Company agrees to indemnify and hold harmless the
Accounting Firm of and from any and all claims, damages and expenses resulting
from or relating to its determinations pursuant to subsections (b) and (c)
above, except for claims, damages or expenses resulting from the gross
negligence or wilful misconduct of the Accounting Firm.

                                       16
<PAGE>

     10.  CONFIDENTIAL INFORMATION; NON-SOLICITATION; NON-COMPETITION. In
exchange for the Company agreeing to the payment to the Employee provided under
subsection (d)(i)(D) of Section 6, the Employee agrees as follows:

     (a)  The Employee shall hold in a fiduciary capacity for the benefit of the
Company all secret or confidential information, knowledge or data, customer
information, supplier information, cost and pricing information, marketing and
sales techniques, strategies and programs, computer programs and software and
financial information relating to the Company or any of its affiliated companies
and their respective businesses that the Employee obtains during the Employee's
employment by the Company or any of its affiliated companies and that is not
public knowledge (other than as a result of the Employee's violation of this
subsection (a) of Section 10) ("Confidential Information"). The Employee shall
not communicate, divulge or disseminate Confidential Information at any time
during or after the Employee's employment with the Company, except in the good
faith performance of his duties hereunder, with the prior written consent of the
Company or as otherwise required by law or legal process. In no event shall an
asserted violation of the provisions of this paragraph (a) of Section 10
constitute a basis for deferring or withholding any amounts otherwise payable to
the Employee under this Agreement.

     (b)  For a period of one year after the expiration or termination of the
Employee's employment with the Company, the Employee will not, except with the
prior written consent of the Board, directly or indirectly, own, manage,
operate, join, control, finance or participate in the ownership, management,
operation, control or financing of, or be connected as an officer, director,
employee, partner, principal, agent, representative, consultant or otherwise
with, or use or permit Employee's name to be used in connection with, any
business or enterprise which is engaged in any business that is competitive with
any business or enterprise in which the Company is engaged at the Date of
Termination or expiration of the Employment Period. In addition, the Employee
agrees that he will not, for a period of two years after the expiration or
termination of the Employee's employment with the Company, without the prior
written consent of the Company, whether directly or indirectly, employ, whether
as an employee, officer, director, agent, consultant or independent

                                       17
<PAGE>

contractor, or solicit the employment of, any managerial or higher level person
who is or at any time during the previous twelve months was an employee,
representative, officer or director of the Company or any of its subsidiaries.

     (c)  The Employee acknowledges and agrees that the restrictions
contained in this Section are reasonable and necessary to protect and preserve
the legitimate interests, properties, goodwill and business of the Company, that
the Company would not have entered into this Agreement in the absence of such
restrictions and that irreparable injury will be suffered by the Company should
the Employee breach any of those provisions. Employee represents and
acknowledges that (i) the Employee has been advised by the Company to consult
Employee's own legal counsel in respect of this Agreement, and (ii) that the
Employee has had full opportunity, prior to execution of this Agreement, to
review thoroughly this Agreement with the Employee's counsel. The Employee
further acknowledges and agrees that a breach of any of the restrictions in this
Section cannot be adequately compensated by monetary damages. The Employee
agrees that the Employee's right to the payments specified above in
consideration for his undertakings under this Section shall be forfeited and
Company shall be entitled to preliminary and permanent injunctive relief,
without the necessity of proving actual damages, as well as an equitable
accounting of all earnings, profits and other benefits in the event of any
violation of this Section, which rights shall be cumulative and in addition to
any other rights or remedies to which the Company may be entitled; provided,
however, that the foregoing remedies shall be conditioned upon the Company
providing the Employee with at least 30 days written notice of its good faith
belief that a violation of the Employee's undertakings hereunder has occurred
and Employee failing to cease any such prohibited activity within 30 days after
such written notice is given. In the event that any of the provisions of this
Section should ever be adjudicated to exceed the time, geographic, service, or
other limitations permitted by applicable law in any jurisdiction, it is the
intention of the parties that the provision shall be amended to the extent of
the maximum time, geographic, service, or other limitations permitted by
applicable law, that such amendment shall apply only within the jurisdiction of
the court that made such adjudication and that the provision otherwise be
enforced to the maximum

                                       18

<PAGE>

extent permitted by law. The Employee irrevocably and unconditionally (i) agrees
that any suit, action or other legal proceeding arising out of this Section,
including without limitation, any action commenced by the Company for
preliminary and permanent injunctive relief and other equitable relief, may be
brought in the United States District Court for the Southern District of
California, or if such court does not have jurisdiction or will not accept
jurisdiction, in any court of general jurisdiction in Los Angeles, California,
(ii) consents to the non-exclusive jurisdiction of any such court in any such
suit, action or proceeding, and (iii) waives any objection which the Employee
may have to the laying of venue of any such suit, action or proceeding in any
such court. The Employee also irrevocably and unconditionally consents to the
service of any process, pleadings, notices or other papers in a manner permitted
by the notice provisions of Section 12 hereof.

     11.  SUCCESSORS.

     (a)  This Agreement is personal to the Employee and without the prior
written consent of the Company shall not be assignable by the Employee otherwise
than by will or the laws of descent and distribution. This Agreement shall inure
to the benefit of and be enforceable by the Employee's legal representatives.

     (b)  This Agreement shall inure to the benefit of and be binding upon the
Company and its successors and assigns.

     (c)  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 assume expressly 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. As used in this
Agreement, "Company" shall mean the Company as hereinbefore defined and any
successor to its business and/or assets as aforesaid which assumes and agrees to
perform this Agreement by operation of law, or otherwise.

     12.  MISCELLANEOUS.

     (a)  This Agreement shall be governed by and construed in accordance with
the laws of the State of Delaware, without reference to principles of conflict
of laws. The captions of

                                       19
<PAGE>

this Agreement are not part of the provisions hereof and shall have no force or
effect. This Agreement may not be amended or modified otherwise than by a
written agreement executed by the parties hereto or their respective successors
and legal representatives.

     (b)  All notices and other communications hereunder shall be in writing and
shall be given by hand delivery to the other party or by registered or certified
mail, return receipt requested, postage prepaid, addressed as follows:

                  IF TO THE EMPLOYEE:

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

                  IF TO THE COMPANY:

                  Hilton Hotels Corporation
                  9336 Civic Center Drive
                  Beverly Hills, CA 90210
                  Attention:  General Counsel

                  WITH A REQUIRED COPY TO:

                  Morgan, Lewis & Bockius, LLP
                  1701 Market Street
                  Philadelphia, PA  19103-6993
                  Attention:  Robert J. Lichtenstein

or to such other address as either party shall have furnished to the other in
writing in accordance herewith. Notice and communications shall be effective
when actually received by the addressee.

     (c)  The invalidity or unenforceability of any provision of this Agreement
shall not affect the validity or enforceability of any other provision of this
Agreement.

     (d)  The Company may withhold from any amounts payable under this Agreement
such Federal, state or local taxes as shall be required to be withheld pursuant
to any applicable law or regulation.

                                       20
<PAGE>

     (e)  The Employee's failure to insist upon strict compliance with any
provision hereof shall not be deemed to be a waiver of such provision or any
other provision thereof.

     (f)  The Employee and the Company acknowledge that the employment of the
Employee by the Company is "at will", and, prior to the Effective Date, may be
terminated by either the Employee or the Company at any time. Upon a termination
of the Employee's employment or upon the Employee's ceasing to be an officer of
the Company, in each case, prior to the Effective Date, there shall be no
further rights under this Agreement.

     (g)  The Company represents and warrants that: (i) it is fully authorized
and empowered to enter into this Agreement, (ii) its Board of Directors has
approved this Agreement and (iii) the performance of its obligations under this
Agreement will not violate any agreement between it and any other person, firm
or organization.

     (h)  This Agreement may be executed in two or more counterparts and by
facsimile, all of which when taken together shall constitute a signed agreement.

     IN WITNESS WHEREOF, the Employee has hereunto set his hand and, pursuant to
the authorization from its Board of Directors, the Company has caused these
presents to be executed in its name on its behalf, all as of the day and year
first above written.

                                    EMPLOYEE

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

                                    HILTON HOTELS CORPORATION

                                    By
                                       --------------------------
Attest:
      -----------------------------

      -----------------------------
              Secretary

                                       21<PAGE>
                                                                EXHIBIT 10.44

                                 EMPLOYMENT AGREEMENT

          AMENDED AND RESTATED AGREEMENT by and between Hilton Hotels
Corporation, a Delaware corporation (the "Company"), and Stephen F. Bollenbach
(the "Executive"), dated as of March 9, 2000.

          WHEREAS, the Board of Directors of the Company (the "Board")
determined that it was in the best interests of the Company and its shareholders
to continue to employ the Executive as President and Chief Executive Officer,
and the Executive desired to continue to serve in that capacity;

          WHEREAS, the Executive and the Company entered into an Employment
Agreement dated as of the effective date (the "Split Date") of a transaction
whereby the Company separated its gaming operations from its lodging operations
which occurred in December, 1998;

          WHEREAS, in light of the significant increase in the size of the
Company and the complexity of its business as a result of the acquisition of
Promus Hotel Corporation and the critical role of the Executive in assuring that
the Company and its shareholders realize the expectations for that acquisition,
the Company wishes to assure that the Executive's compensation is comparable to
the competitive market for talented chief executives;

          WHEREAS, the Board desires to amend the Employment Agreement to
increase the Executive's cash compensation and provide the Executive with
retirement and survivor benefits as a further inducement to retain the
Executive;

          NOW, THEREFORE, IT IS HEREBY AGREED THAT THE EMPLOYMENT AGREEMENT
SHALL BE AMENDED AND RESTATED, EFFECTIVE AS OF MARCH 9, 2000, TO READ AS
FOLLOWS:

                                          1
<PAGE>

          1.   EMPLOYMENT PERIOD.  The Company shall continue to employ the
Executive, and the Executive shall serve the Company, on the terms and
conditions set forth in this Agreement, for the period beginning on the Split
Date (the "Commencement Date") and ending on July 1, 2005, which shall
automatically renew for periods of one year unless one party gives written
notice to the other, at least 60 days prior to July 1, 2005 or at least 60 days
prior to the end of any one-year renewal period, that the Agreement shall not be
further extended, except as otherwise specifically provided below (the
"Employment Period").

          2.   POSITION AND DUTIES.  (a)  During the Employment Period, the
Executive shall continue to be employed as the President and Chief Executive
Officer of the Company and, when applicable, the Company shall cause the
Executive to be reelected as a member of the Board.  In his executive
capacities, the Executive shall report to the Board.  During the Employment
Period, the Executive shall have authority to make all executive decisions, plan
the strategic direction of the Company, and hire, promote and terminate the
employment of all personnel, subject to the direction of the Board.  During the
Employment Period, the Executive shall have such reasonable and customary powers
as are generally associated with the positions of President and Chief Executive
Officer, including, without limitation, authority to expend capital resources of
the Company and shall have, subject to the direction of the Board, authority to
fill all management positions.

               (b)    If, during the Employment Period, Barron Hilton shall
cease to serve as Chairman of the Board for any reason, the Company shall cause
the Executive thereupon to be elected as Chairman of the Board in addition to
the positions of President and Chief Executive Officer and shall, as Chairman,
report directly to the Board.

                                          2
<PAGE>

               (c)    During the Employment Period, and excluding any periods
of vacation and sick leave to which the Executive is entitled, the Executive
shall devote principal attention and time during normal business hours to the
business and affairs of the Company and, to the extent necessary to discharge
the responsibilities assigned to the Executive under this Agreement, use the
Executive's reasonable best efforts to carry out such responsibilities
faithfully and efficiently.  Notwithstanding the foregoing, nothing in this
Agreement shall be construed to limit the ability of the Executive from
providing services to the entity which holds the Company's gaming operations
following the Split Date.  It shall not be considered a violation of the
foregoing for the Executive to (A) serve on corporate, civic or charitable
boards or committees (excluding those which would create a conflict of
interest), (B) deliver lectures, fulfill speaking engagements or teach at
educational institutions and (C) manage personal investments, so long as such
activities do not materially interfere with the performance of the Executive's
responsibilities as an employee of the Company in accordance with this
Agreement.

               (d)    The Executive's services shall be performed primarily at
the Company's Headquarters in Beverly Hills, California.

          3.   COMPENSATION.  (a)  BASE SALARY.  During the Employment Period,
the Executive shall receive an annual base salary ("Annual Base Salary") of
$1,000,000, payable in accordance with the regular payroll practices of the
Company.

               (b)    ANNUAL BONUS.

                      (1)     In addition to the Annual Base Salary, the
Executive shall be eligible to receive, for each fiscal year or portion of a
fiscal year ending during the Employment

                                          3
<PAGE>

Period, an annual bonus (the "Annual Bonus"), pursuant to the Company's annual
incentive plan, with a target equal to 100% of Annual Base Salary and a maximum
of 200% of Annual Base Salary.

                      (2)     That portion of such Annual Bonus during any
taxable year of the Company which, when added to any otherwise deductible
compensation and benefits paid or provided to the Executive by the Company
during such taxable year, would not be deductible by the Company in the taxable
year such Annual Bonus is paid or accrued because of the applicable limitations
under Section 162(m) of the Internal Revenue Code of 1986, as amended (the
"Code"), shall be deferred annually and paid to the Executive, in a lump sum, on
that date (the "Deferral Date") which is 30 days after the earlier of (i) the
last day of the Company's taxable year in which the Executive ceases to be a
"covered employee" within the meaning of Section 162(m)(3) of the Code or (ii)
the date upon which the Company's deduction with respect to all deferred Annual
Base Salary shall no longer be subject to limitation under Section 162(m) of the
Code or any successor section thereto.

                      (3)     Except as otherwise provided below, any amounts of
Annual Bonus deferred as provided above shall be credited, from the date it
would otherwise have been paid to the date the deferred amounts are paid, with
interest at a floating rate equal to the rate which Morgan Guaranty announces
from time to time as its prime lending rate, as in effect from time to time,
compounded quarterly, and such accrued interest shall be paid to the Executive
on the Deferral Date (said deferred Annual Bonus plus interest collectively
referred to as the "Deferred Compensation").  Notwithstanding the foregoing, the
Executive may elect, prior to the end of each calendar year for which an Annual
Bonus is payable, to have all or any portion of the Deferred Compensation for
that year treated as though invested in shares of the Company's common stock,

                                          4
<PAGE>

on a book entry account basis.  Such Deferred Compensation shall be deemed to be
used to purchase such shares on the date the Annual Bonus would have been paid,
based on the average of the high and low trading prices of the stock on such
day.  The number of shares credited to the Executive's account  under this
subparagraph (3) shall be adjusted to reflect any changes to the Company's
capital structure in the same manner as if shares were actually issued to the
Executive on the day the Annual Bonus would otherwise have been paid.  The
Company shall also credit the Executive's account with additional amounts
equivalent to any and all dividends or distributions paid on its shares of
common stock (on the same basis as though such shares had been outstanding on
the record date for such dividend or distribution), with any such dividends or
distributions deemed invested in additional shares of the Company's common stock
based on the average of the high and low trading prices of the stock on the day
the dividend or distribution is payable to shareholders of the Company.

                      (4)     The Deferred Compensation shall be paid on the
Deferral Date by wire transfer to an account designated by the Executive prior
to the Deferral Date, (or by transfer of shares of common stock to the extent of
the account referred to in subparagraph (3)).

               (c)    OTHER BENEFITS.  During the Employment Period: (i) the
Executive shall be entitled to participate in all incentive, savings and
retirement plans, practices, policies and programs of the Company to at least
the same extent as other senior executives of the Company, provided that in
determining the Executive's participation in any incentive plans the Incentive
Options, as defined below, shall be taken into account; and (ii) the Executive
and/or the Executive's family, as the case may be, shall be eligible for
participation, and shall receive all benefits under, all welfare benefit plans,
practices, policies and programs provided by the Company (including, without
limitation, medical, prescription, dental, disability, salary continuance,
employee life insurance,

                                          5
<PAGE>

group life insurance, accidental death and travel accident insurance plans and
programs) to at least the same extent as other senior executives of the Company.

               (d)    EXPENSES. During the Employment Period, the Executive
shall be entitled to receive prompt reimbursement for all reasonable expenses
incurred by the Executive in carrying out the Executive's duties under this
Agreement, provided that the Executive complies with the generally applicable
policies, practices and procedures of the Company for submission of expense
reports, receipts, or similar documentation of such expenses.

               (e)    FRINGE BENEFITS AND AIR TRAVEL.  During the Employment
Period, the Executive shall be entitled to fringe benefits and perquisites in
accordance with the most favorable plans, practices, programs and policies of
the Company as in effect at the time with respect to other senior executives of
the Company, including, without limitation, the use of an automobile and payment
of related expenses; and first-class travel accommodations on all commercial
carriers for travel related to the business of the Company.  The Executive shall
also be entitled to unrestricted, but not exclusive, use of the Company's
aircraft (leased or owned); provided, however, that if the Executive uses the
Company's aircraft for his personal purposes, he shall incur the Federal, state
and local income tax consequences for the value of such usage, as determined in
accordance with the Company's cost determination methodology applied to the
Company's senior executives with respect to their personal use of the Company's
aircraft.

               (f)    OFFICE AND SUPPORT STAFF.  During the Employment Period,
the Executive shall be entitled to his current office at the Company's Beverly
Hills Headquarters, and to secretarial and other assistance, at least equal to
the most favorable of such as provided with

                                          6
<PAGE>

respect to other senior executives of the Company.  Without limiting the
generality of the foregoing, the Executive shall at all times have a personal
secretary and a personal assistant.

               (g)    VACATION.  During the Employment Period, the Executive
shall be entitled to four weeks of paid vacation annually.

               (h)    STOCK OPTIONS:  (i) On the Split Date, the Executive was
granted non-statutory stock options (the "Incentive Options") under the
Company's 1996 Stock Incentive Plan, as amended (the "Stock Plan) covering
6,000,000 shares of the Company's (but not the gaming company's) post-Split
common stock in tranches of 4,000,000 shares (the "Regular Option") and
2,000,000 shares (the "Special Option"), respectively.  The exercise price of
the shares subject to the Regular Option is $13.625.  The exercise price of the
shares subject to the Special Option is $27.52676.  The Incentive Options shall
be exercisable for 10 years after the Split Date except as otherwise
specifically provided in this Agreement.

The Regular Option shall vest and become exercisable according to the following
schedule if the Executive continues in the employment of the Company through the
applicable vesting date(s), except as otherwise specifically provided herein:

                      (1)   25%:   on the first anniversary of the Split Date.

                      (2)   50%:   on the second anniversary of the Split Date.

                      (3)   75%:   on the third anniversary of the Split Date.

                      (4)   100%:  on the fourth anniversary of the Split Date.

The Special Option shall vest and become exercisable on the date that is 9 years
and 9 months following the Split Date if the Executive continues in the
employment of the Company through such date; provided, however, that, if, at any
time prior to the fifth anniversary of the  Split Date, the

                                          7
<PAGE>

closing price of the Company's common shares on the New York Stock Exchange
equals or exceeds $36.70234, on each of any 7 consecutive trading days, all
shares under the Special Option shall be immediately vested and exercisable if
the Executive continues in the employment of the Company through the applicable
vesting date, except as otherwise specifically provided herein.  Notwithstanding
the foregoing, all shares subject to the Regular Option and the Special Option
shall vest and become exercisable upon the occurrence of any of the following
events (each of (A), (B) and (C) below a "Triggering Event"):

                      (A)     termination of the Executive's employment by the
                              Company other than for (i) Cause, as defined below
                              or (ii) non-renewal of the Agreement;

                      (B)     termination of the Executive's employment because
                              of death or Disability; or

                      (C)     termination of employment by the Executive for
                              Good Reason, as defined below;

provided that one-half of the unvested portion of the Regular Option and the
unvested portion of the Special Option shall vest and become (and remain)
exercisable upon a Triggering Event only if Executive does not breach the terms
of the covenants contained in Section 8 below; such vesting and exercisability
shall be part of the consideration for the Executive's undertakings under
Section 8.

               (ii)   If a Triggering Event occurs, any portion of the
Incentive Options that have become vested on or before the date of such Event
(including without limitation, any portion that becomes exercisable due to such
Triggering Event) shall remain exercisable until the

                                          8
<PAGE>

earlier to occur of (x) the fifth anniversary of such date of termination or (y)
the tenth anniversary of the Split Date.  All non-vested Incentive Options shall
immediately terminate.

               (iii)  The Executive may assign the right to exercise the
Incentive Options to his spouse, children, grandchildren, or parents of a
recipient, to trusts for the benefit of the Executive's immediately family, to a
family partnership or limited liability company designated by the Executive in
which the Executive's family members are the only partners or shareholders or to
an entity exempt from federal income tax under Section 501(c)(3) of the Internal
Revenue Code of 1986, as amended (the "Code").

               (iv)   The Incentive Options shall be subject to the terms of
the Stock Plan in all respects not described herein.

               (i)    SUPPLEMENTAL RETIREMENT BENEFIT.

               (i)    JOINT AND SURVIVOR ANNUITY BENEFIT.  Subject to the terms
and conditions set forth herein, the Executive shall be entitled to a
supplemental retirement benefit  (the "Supplemental Benefit"), in the form of a
100% joint and survivor annuity, which shall provide the Executive and his
spouse with a lifetime annual benefit, commencing on the later of (x) July 1,
2005, and (y) the date of the Executive's termination from the employment of the
Company, (the "Distribution Date") equal to 25% of the Executive's total cash
compensation (Annual Base Salary and Annual Bonus, without regard to the effect
of any deferrals as provided above) for the Executive's service to the Company
through the July 1, 2005.  The Executive shall vest in such Supplemental Benefit
in 20% increments on June 30 of each year, beginning June 30, 2001 and be fully
vested on June 30, 2005, provided that the Executive is employed by the Company
on each such June 30 and the Executive shall have a 100% nonforfeitable right in
the Supplemental Benefit

                                          9
<PAGE>

on and after June 30, 2005; and, provided, further, that, after the occurrence
of a Change of Control, as defined below, and as further consideration for the
Executive's undertaking not to breach the terms of the covenants contained in
Section 8 below, in the event of the involuntary, or Good Reason, termination of
the Executive's employment from the Company, other than on account of death,
disability or Cause, three additional years shall be added to the Executive's
service for the purposes of determining his vesting rights only.

          (ii) OPTIONAL CONVERSION.  To provide the Executive both with an
additional incentive to enhance the value of the Company's common stock for its
shareholders and the opportunity to increase his retirement income if the value
of the stock is enhanced, and to enable the Company to fix its exposure for the
Supplemental Benefit for financial accounting purposes, the Company has offered
the Executive the opportunity to elect, and the Executive hereby elects, to
convert his right to receive the joint and survivor annuity described in
subparagraph (i) above into a phantom interest in the equivalent value of the
Company's common stock.  The parties agree that this conversion results in a
credit to a book entry account for the Executive of 700,000 of its common
shares, which has been derived based on the estimated present value of such
joint and survivor benefits (without regard to whether such benefits are
currently vested), as calculated using as his covered compensation the
Executive's total annual cash compensation to be provided under this Agreement
(whether or not deferred) with the Annual Bonus component calculated solely at
the target level of performance, and the current trading value of the common
stock.  By reason of such election, in lieu of the joint and survivor benefits
described in subparagraph (i) above, the Executive shall be entitled to receive
a distribution, on the Distribution Date, of 700,000 shares of common stock
multiplied by his vested percentage in respect of the Supplemental Benefit.
Such distribution

                                          10
<PAGE>

shall be made as soon as practicable after the Distribution Date (or such later
date(s) as the Executive shall elect at least 13 months prior to the
Distribution Date but in no more than 10 annual installments).  The number of
shares credited to the Executive's account under this subparagraph shall be
adjusted to reflect any changes to the Company's capital structure in the same
manner as if shares were actually issued to the Executive on March 9, 2000.  The
Company shall also credit the Executive's account with additinal amounts
equivalent to any and all dividends or distributions paid on its shares of
common stock (on the same basis as though such shares had been outstanding on
the record date for such dividend or distribution), with any such dividends or
distributions deemed invested in additional shares of the Company's common stock
based on the average of the high and low trading prices of the stock on the day
the dividend or distribution is payable to shareholders of the Company.

               (j)    DEATH BENEFIT AND LIFE INSURANCE.  During the Employment
Period, the Executive shall be entitled to a Company-provided death benefit in
the following amounts:

<TABLE>
<CAPTION>
          Date of Death                           Amount of Benefit
          -------------                           -----------------
<S>                                               <C>
     On or before June 30, 2001                   $5.0 million

     After June 30, 2001 and before
     July 1, 2002                                 $4.0 million

     After June 30, 2002 and before
     July 1, 2003                                 $3.0 million

     After June 30, 2003 and before
     July 1, 2004                                 $2.0 million

     After June 30, 2004 and before
     July 1, 2005                                 $1.0 million
</TABLE>

                                          11
<PAGE>

In addition, the Company shall purchase for the Executive a $10.0 million face
amount, last to die, variable life insurance policy on the lives of the
Executive and the Executive's spouse (the "Supplemental Policy").  The Company
shall pay the full annual premium, determined at standard underwriting rates, on
the Supplemental Policy, up to a maximum annual payment by the Company of
$226,000 for each year from 2000 to 2005.  Such maximum payment is intended to
be in an amount sufficient to carry the Supplemental Policy until the Executive
attains age 100, assuming a 10% crediting rate.  The Executive may hold his
interest in the Supplemental Policy directly or may cause the Supplemental
Policy to be held by a trust, but shall assign an interest in such Policy to the
Company to assure its recovery of premium, as provided herein.  The Executive
shall take all actions necessary so as to permit the Company to withdraw from
the Supplemental Policy, at the earlier of (i) the death of the last to die of
the Executive and his spouse, or (ii) July 1, 2015, the full amount of premiums
paid by the Company to carry the Supplemental Policy (or, if the withdrawal
occurs prior to the death of the last insured, the Supplemental Policy's cash
surrender value, if less than the premiums paid).  To the extent, if any, that
the actual interest credited under the Supplemental Policy is less than 10% or
the Executive terminates employment for any reason other than death prior to
July 1, 2005, the Company shall have no obligation to make any further premium
payments, and the Executive shall have all options under the Supplemental
Policy, not in derogation of the Company's right to withdraw the premiums paid,
to decrease the death benefit or to continue the Supplemental Policy (by
additional personal contributions or otherwise) with the full death benefit of
$10.0 million.  Other than as specifically provided herein, with respect to the
payment, and the recovery, of premiums paid by the Company, all economic
consequences (including taxes of the purchase of

                                          12
<PAGE>

the Supplemental Policy shall be borne or inure to the benefit of the Executive,
or any trust or other vehicle that owns or acquires the Supplemental Policy.

          4.   TERMINATION OF EMPLOYMENT.

               (a)  DEATH OR DISABILITY.  The Executive's employment and the
Employment Period shall terminate automatically upon the Executive's death
during the Employment Period.  The Company shall be entitled to terminate the
Executive's employment because of the Executive's Disability during the
Employment Period.  "Disability" means that (i) the Executive has been unable,
for a period of 180 consecutive business days, to perform the Executive's duties
under this Agreement, as a result of physical or mental illness or injury, and
(ii) a physician selected by the Company or its insurers, and acceptable to the
Executive or the Executive's legal representative, has determined that the
Executive's incapacity is total and permanent.  The Executive agrees to
reasonably cooperate with the Company in order to obtain its physician's
evaluation of the Executive.  A termination of the Executive's employment by the
Company for Disability shall be communicated to the Executive by written notice,
and shall be effective on the 30th day after receipt of such notice by the
Executive (the "Disability Effective Date"), unless the Executive returns to
full-time performance of the Executive's duties, as determined by the Board,
before the Disability Effective Date.

               (b)    BY THE COMPANY.  (i) The Company may terminate the
Executive's employment during the Employment Period for Cause or without Cause.
"Cause" means:

                      (A)     the willful and continued failure of the Executive
               substantially to perform the Executive's duties under this
               Agreement (other than as a result of physical or mental illness
               or injury), after the Board delivers to the Executive a written
               demand for substantial performance that specifically

                                          13
<PAGE>

               identifies the manner in which the Board believes that the
               Executive has not substantially performed the Executive's duties;

                      (B)     illegal conduct or gross misconduct by the
               Executive, in either case that is willful and results in material
               and demonstrable damage to the business or reputation of the
               Company; or

                      (C)     a breach of the covenants or representations
               contained in Section 8.

               (ii)   A termination of the Executive's employment for Cause
shall be effected in accordance with the following procedures.  The Company
shall give the Executive written notice ("Notice of Termination for Cause") of
its intention to terminate the Executive's employment for Cause, setting forth
in reasonable detail the specific conduct of the Executive that it considers to
constitute Cause and the specific provision(s) of this Agreement on which it
relies, and stating the date, time and place of the Special Board Meeting.  The
"Special Board Meeting" means a meeting of the Board called and held
specifically for the purpose of considering the Executive's termination for
Cause, that takes place not less than five and not more than fifteen business
days after the Executive receives the Notice of Termination for Cause.  The
Executive shall be given an opportunity, together with counsel, to be heard at
the Special Board Meeting.  The Executive's termination for Cause shall be
effective when and if a resolution is duly adopted at the Special Board Meeting,
stating that, in the good faith opinion of the Board, the Executive is guilty of
the conduct described in the Notice of Termination for Cause, and such conduct
constitutes Cause under this Agreement.

               (c)    GOOD REASON.  (i) The Executive may terminate employment
for Good Reason or without Good Reason.  "Good Reason" means:

                                          14
<PAGE>

                      A.      the assignment to the Executive of any duties
               inconsistent in any material respect (in any respect, following a
               Change of Control) with paragraph (a) or, if applicable, (b) of
               Section 2 of this Agreement, or any other action by the Company
               (other than the Split)  that results in a material diminution in
               the Executive's position or authority, duty, titles,
               responsibilities, or reporting requirements other than an action
               that is not taken in bad faith and is remedied by the Company
               within 30 days after receipt of written notice thereof from the
               Executive;

                      B.      any material failure (any failure, following a
               Change of Control) by the Company to comply with any provision of
               Section 3 of this Agreement, other than a failure that is not
               taken in bad faith and is remedied by the Company within 30 days
               after receipt of written notice thereof from the Executive;

                      C.      any requirement by the Company that the
               Executive's services be rendered primarily at a location or
               locations other than that provided for in paragraph (d) of
               Section 2 of this Agreement, other than normal business travel;

                      D.      any purported termination of the Executive's
               employment by the Company for a reason or in a manner not
               expressly permitted by this Agreement; or

                      E.      any failure by the Company to comply with
               paragraph (c) of Section 9 of this Agreement.

In addition, following a Change of Control,  a termination by the Executive for
any reason during the 30-day period immediately following the first anniversary
of the Change of Control shall be deemed to be a termination for Good Reason for
all purposes of this Agreement.

               (ii)   A termination of employment by the Executive for Good
Reason shall be effectuated by giving the Company written notice ("Notice of
Termination for Good Reason") of the termination, setting forth in reasonable
detail the specific conduct of the Company that constitutes Good Reason and the
specific provision(s) of this Agreement on which the Executive relies.  A
termination of employment by the Executive for Good Reason shall be effective on
the fifth business day following the date when the Notice of Termination for
Good Reason is given,

                                          15
<PAGE>

unless the notice sets forth a later date (which date shall in no event be later
than 30 days after the notice is given).

               (iii)  A termination of the Executive's employment by the
Executive without Good Reason shall be effected by giving the Company at least
10 business days' advance written notice of the termination.

               (d)    DATE OF TERMINATION.  The "Date of Termination" means the
date of the Executive's death, the Disability Effective Date, the date the
termination of the Executive's employment by the Company for Cause or by the
Executive for Good Reason or without Good Reason, as the case may be, is
effective.

          5.   OBLIGATIONS OF THE COMPANY UPON TERMINATION.  (a)  BY THE COMPANY
OTHER THAN FOR CAUSE, DEATH OR DISABILITY OR BY THE EXECUTIVE FOR GOOD REASON.
If, during the Employment Period, the Company terminates the Executive's
employment, other than for Cause or Disability or by reason of the Executive's
death, or the Executive terminates employment for Good Reason, the Company shall
fulfill its obligations as to Base Salary under Section 3(a) hereof for the
balance of the Employment Period.  Fifty percent of such amounts shall be
consideration for the Executive's undertaking not to breach the terms of the
covenants contained in Section 8 below.  The Company shall also provide the
Executive with all benefits due in accordance with the terms of any applicable
plans and programs of the Company and shall also pay to the Executive, in a lump
sum in cash within 30 days after the Date of Termination, the Executive's
accrued but unpaid cash compensation (the "Accrued Obligations"), which shall
equal the sum of (1) any portion of the Executive's Annual Base Salary through
the Date of Termination that has not yet been paid, (2) an amount representing
the Annual Bonus for the year of termination based on target, and multiplying

                                          16
<PAGE>

that amount by a fraction, the numerator of which is the number of days in the
current fiscal year through the Date of Termination, and the denominator of
which is 365 (the "Annual Bonus Amount"); (3) the Deferred Compensation and any
other compensation previously deferred by the Executive (together with any
accrued interest or earnings thereon) that has not yet been paid; and (4) any
accrued but unpaid Annual Bonuses and vacation pay; provided, however, that the
Company's obligation to make any payments under this Section to the extent any
such payment shall not have accrued as of the day before the Date of Termination
shall also be conditioned upon the Executive's execution, and non-revocation, of
a written release, substantially in the form attached hereto as Annex 1, (the
"Release"), of any and all claims against the Company and all related parties
with respect to all matters arising out of the Executive's employment by the
Company (other than any entitlements under the terms of this Agreement or under
any other plans or programs of the Company in which the Executive participated
and under which the Executive has accrued a benefit), or the termination
thereof.

               Notwithstanding the foregoing, in the event payment is due to the
Executive under this Section following a Change of Control, then conditioned
upon the Executive's execution, and non-revocation, of the Release and the
Executive not breaching the terms of the covenants contained in Section 8 below,
the Executive, in lieu of the amounts specified in the first sentence above,
shall receive in a lump sum in cash within 30 days after the Date of Termination
equal to 3 multiplied by the sum of the Executive's Base Salary and the Annual
bonus paid to the Employee for the last full fiscal year (if any) ending during
the Employment Period or, if higher, the Annual Bonus paid to the Employee for
the last full fiscal year prior to the Change of Control.  Fifty percent of such
amount shall be consideration for the Executive's undertaking not to breach the
terms of the

                                          17
<PAGE>

covenants contained in Section 8 below.  In addition, the Executive shall also
be entitled in the case of the Deferred Compensation and any other compensation
previously deferred by the Executive, to a lump sum equal to all amounts
previously deferred (together with any accrued interest thereon) and not yet
paid by the Company, and any accrued vacation pay not yet paid by the Company.
For the remainder of the Employment Period, or such longer period as any plan,
program, practice or policy may provide, the Company shall continue benefits to
the Employee and/or the Employee's family at least equal to those which would
have been provided to them in accordance with the plans, programs, practices and
policies described in Section 3 of this Agreement if the Employee's employment
had not been terminated, including health insurance and life insurance, in
accordance with the most favorable plans, practices, programs or policies of the
Company and its subsidiaries during the 90-day period immediately preceding the
date on which the Change of Control occurs or, if more favorable to the
Employee, as in effect at any time thereafter with respect to other key
employees and their families and for purposes of eligibility for retiree
benefits pursuant to such plans, practices, programs and policies, the Employee
shall be considered to have remained employed until the end of the Employment
Period and to have retired on the last day of such period.

               (b)    DEATH OR DISABILITY.  If the Executive's employment is
terminated by reason of the Executive's death or Disability during the
Employment Period, the Company, in addition to fulfilling its obligations under
Section 3(a) hereof, shall pay the Accrued Obligations to the Executive or the
Executive's estate or legal representative, as applicable, in a lump sum in cash
within 30 days after the Date of Termination, and the Company shall have no
further obligations under this Agreement other than for any entitlements under
the terms any other plans or programs

                                          18
<PAGE>

of the Company in which the Executive participated and under which the Executive
has accrued a benefit.

               (c)    CAUSE; OTHER THAN FOR GOOD REASON.  If the Executive's
employment is terminated by the Company for Cause during the Employment Period,
the Company shall pay the Executive the Annual Base Salary through the Date of
Termination, the amount of the Deferred compensation and any other compensation
previously deferred by the Executive (together with any accrued interest or
earnings thereon), in each case to the extent not yet paid, and the amount of
any earned but unpaid Annual Bonuses and vacation pay, and the Company shall
have no further obligations under this Agreement other than for any entitlements
under the terms any other plans or programs of the Company in which the
Executive participated and under which the Executive has accrued a benefit.  If
the Executive voluntarily terminates employment during the Employment Period,
other than for Good Reason, the Company shall pay the Accrued Obligations to the
Executive in a lump sum in cash within 30 days of the Date of Termination, and
the Company shall have no further obligations under this Agreement other than
for any entitlements under the terms any other plans or programs of the Company
in which the Executive participated and under which the Executive has accrued a
benefit.

          6.   NON-EXCLUSIVITY OF RIGHTS.  Nothing in this Agreement shall
prevent or limit the Executive's continuing or future participation in any plan,
program, policy or practice provided by the Company or any of its affiliated
companies for which the Executive may qualify, nor, subject to Section 13, shall
anything in this Agreement limit or otherwise affect such rights as the
Executive may have under any contract or agreement with the Company or any of
its affiliated companies.  Vested benefits and other amounts that the Executive
is otherwise entitled to receive under any plan,

                                          19
<PAGE>

policy, practice or program of, or any contract or agreement with, the Company
or any of its affiliated companies on or after the Date of Termination shall be
payable in accordance with such plan, policy, practice, program, contract or
agreement, as the case may be, except as explicitly modified by this Agreement.

          7.    NO MITIGATION.  In no event shall the Executive be obligated to
seek other employment or take any other action by way of mitigation of the
amounts payable to the Executive under any of the provisions of this Agreement
and such amounts shall not be reduced, regardless of whether the Executive
obtains other employment.

          8.   CONFIDENTIAL INFORMATION; NON-SOLICITATION; NON-COMPETITION;
LICENSING; NO CONFLICT.  In exchange for the Company agreeing to accelerated
vesting and exercisability of the Special Option upon any of the Triggering
Events and the payment to the Executive of fifty percent of his Base Salary
under Section 3(a) hereof for the balance of the Employment Period or fifty
percent of the lump sum payment in lieu of Base Salary provided under Section 5
in the event of Executive's termination of employment following a Change of
Control, the Executive agrees as follows:

               (a)    The Executive shall hold in a fiduciary capacity for the
benefit of the Company all secret or confidential information, knowledge or
data, customer information, supplier information, cost and pricing information,
marketing and sales techniques, strategies and programs, computer programs and
software and financial information relating to the Company or any of its
affiliated companies and their respective businesses that the Executive obtains
during the Executive's employment by the Company or any of its affiliated
companies and that is not public knowledge (other than as a result of the
Executive's violation of this paragraph (a) of Section 8)

                                          20
<PAGE>

("Confidential Information").  The Executive shall not communicate, divulge or
disseminate Confidential Information at any time during or after the Executive's
employment with the Company, except in the good faith performance of his duties
hereunder, with the prior written consent of the Company or as otherwise
required by law or legal process.  In no event shall an asserted violation of
the provisions of this paragraph (a) of Section 8 constitute a basis for
deferring or withholding any amounts otherwise payable to the Executive under
this Agreement.

               (b)    For a period of two years after the expiration or
termination of the Executive's employment with the Company, the Executive will
not, except with the prior written consent of the Board, directly or indirectly,
own, manage, operate, join, control, finance or participate in the ownership,
management, operation, control or financing of, or be connected as an officer,
director, employee, partner, principal, agent, representative, consultant or
otherwise with, or use or permit Executive's name to be used in connection with,
any business or enterprise which is engaged in any business that is competitive
with any business or enterprise in which the Company is engaged at the Date of
Termination or expiration of the Employment Period.  In addition, the Executive
agrees that he will not, for a period of two years after the expiration or
termination of the Executive's employment with the Company, without the prior
written consent of the Company, whether directly or indirectly, employ, whether
as an employee, officer, director, agent, consultant or independent contractor,
or solicit the employment of, any managerial or higher level person who is or at
any time during the previous twelve months was an employee, representative,
officer or director of the Company or any of its subsidiaries.

               (c)    The Executive represents that he is licensed by the
gaming authorities in Nevada and New Jersey and knows of no reason why a license
necessary for him to perform his

                                          21
<PAGE>

duties hereunder would not be granted to or maintained by him by those or
similar authorities in the future.

               (d)    Executive represents to the Company that neither his
continuation of employment hereunder nor the performance of his duties hereunder
conflicts with any contractual commitment on his part to any third party or
violates or interferes with any rights of any third party.

               (e)    The Executive acknowledges and agrees that the
restrictions contained in this Section are reasonable and necessary to protect
and preserve the legitimate interests, properties, goodwill and business of the
Company, that the Company would not have entered into this Agreement in the
absence of such restrictions and that irreparable injury will be suffered by the
Company should the Executive breach any of those provisions.  Executive
represents and acknowledges that (i) the Executive has been advised by the
Company to consult Executive's own legal counsel in respect of this Agreement,
and (ii) that the Executive has had full opportunity, prior to execution of this
Agreement, to review thoroughly this Agreement with the Executive's counsel.
The Executive further acknowledges and agrees that a breach of any of the
restrictions in this Section cannot be adequately compensated by monetary
damages.  The Executive agrees that the Executive's right to the payments
specified above in consideration for his undertakings under this Section shall
be forfeited, the Executive's right to exercise the Special Option and a portion
of the Regular Option shall cease and Company shall be entitled to preliminary
and permanent injunctive relief, without the necessity of proving actual
damages, as well as an equitable accounting of all earnings, profits and other
benefits in the event of  any violation of this Section, which rights shall be
cumulative and in addition to any other rights or remedies to which the Company
may be entitled; provided, however, that the foregoing remedies

                                          22
<PAGE>

shall be conditioned upon the Company providing the Executive with at least 30
days written notice of its good faith belief that a violation of the Executive's
undertakings hereunder has occurred and Executive failing to cease any such
prohibited activity within 30 days after such written notice is given.  In the
event that any of the provisions of this Section should ever be adjudicated to
exceed the time, geographic, service, or other limitations permitted by
applicable law in any jurisdiction, it is the intention of the parties that the
provision shall be amended to the extent of the maximum time, geographic,
service, or other limitations permitted by applicable law, that such amendment
shall apply only within the jurisdiction of the court that made such
adjudication and that the provision otherwise be enforced to the maximum extent
permitted by law.  The Executive irrevocably and unconditionally (i) agrees that
any suit, action or other legal proceeding arising out of this Section,
including without limitation, any action commenced by the Company for
preliminary and permanent injunctive relief and other equitable relief, may be
brought in the United States District Court for the Southern District of
California, or if such court does not have jurisdiction or will not accept
jurisdiction, in any court of general jurisdiction in Los Angeles, California,
(ii) consents to the non-exclusive jurisdiction of any such court in any such
suit, action or proceeding, and (iii) waives any objection which the Executive
may have to the laying of venue of any such suit, action or proceeding in any
such court.  The Executive also irrevocably and unconditionally consents to the
service of any process, pleadings, notices or other papers in a manner permitted
by the notice provisions of Section 13 hereof.

          9.   SUCCESSORS.  (a)  This Agreement is personal to the Executive
and, without the prior written consent of the Company, shall not be assignable
by the Executive otherwise than by

                                          23
<PAGE>

will or the laws of descent and distribution.  This Agreement shall inure to the
benefit of and be enforceable by the Executive's legal representatives.

               (b)    This Agreement shall inure to the benefit of and be
binding upon the Company and its successors and assigns.

               (c)    The Company shall 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 expressly to
assume and agree to perform this Agreement in the same manner and to the same
extent that the Company would have been required to perform it if no such
succession had taken place.  As used in this Agreement, "Company" shall mean
both the Company as defined above and any such successor that assumes and agrees
to perform this Agreement, by operation of law or otherwise.

          10.  CHANGE OF CONTROL.

          (a)  For the purpose of this Agreement, a "Change of Control" shall
mean:

               (i)    The acquisition by any person, entity or "group", within
the meaning of Section 13(d) (3) or 14(d) (2) of the Securities Exchange Act of
1934 (the "Exchange Act"). (excluding, for this purpose, (A) the Company or its
subsidiaries, (B) any employee benefit plan of the Company or its subsidiaries
which acquires beneficial ownership of voting securities of the Company or (C)
Barron Hilton, the Charitable Remainder Unitrust created by Barron Hilton to
receive shares from the Estate of Conrad N. Hilton, or the Conrad N. Hilton
Foundation, collectively the "Hilton Interests"), of beneficial ownership,
(within the meaning of Rule 13d-3 promulgated under the Exchange Act) of 20% (or
the higher threshold percentage contained in any shareholder rights plan of the
Company) or more of either the then outstanding shares of common stock or the

                                          24
<PAGE>

combined voting power of the Company's then outstanding voting securities
entitled to vote generally in the election of directors; or

               (ii)   Individuals who, as of the date hereof, constitute the
Board (as of the date hereof the "Incumbent Board") cease for any reason to
constitute at least a majority of the Board, provided that any person becoming a
director subsequent to the date hereof whose election, or nomination for
election by the Company's shareholders, was approved by a vote of at least a
majority of the directors then comprising the Incumbent Board (other than an
election or nomination of an individual whose initial assumption of office is in
connection with an actual or threatened election contest relating to the
election of the Directors of the Company, as such terms are used in Rule 14 a-11
of Regulation 14A promulgated under the Exchange Act) shall be, for purposes of
this Agreement, considered as though such person were a member of the Incumbent
Board; or

               (iii)  Approval by the stockholders of the Company of (A) a
reorganization, merger, consolidation, in each case, with respect to which
persons who were the stockholders of the Company immediately prior to such
reorganization, merger or consolidation do not, immediately thereafter, own more
than 50% of the combined voting power entitled to vote generally in the election
of directors of the reorganized, merged or consolidated company's then
outstanding voting securities, or (B) a liquidation or dissolution of the
Company or (C)  the sale of all or substantially all of the assets of the
Company;

provided, however, that the Split was not a "Change of Control" for any purpose
under this Agreement.

          (b)  Upon a Change of Control, the right to purchase all shares
subject to the Regular Option and the Special Option shall vest and become
exercisable; provided, however, that

                                          25
<PAGE>

with respect to the Special Option, such immediate vesting and exercisability
shall be conditioned upon the Executive not breaching the terms of the covenants
contained in Section 8.

          (c)  Anything in this Agreement to the contrary notwithstanding, in
the event that it shall be determined that any payment or distribution by the
Company to or for the benefit of the Executive, whether paid or payable or
distributed or distributable pursuant to the terms of this Agreement or
otherwise (the "Payment"), would constitute an "excess parachute payment" within
the meaning of Section 280G of the Code,  the Executive shall be paid an
additional amount (the "Gross-Up Payment") such that the net amount retained by
the Executive after deduction of any excise tax imposed under Section 4999 of
the Code, and any federal, state and local income and employment tax and excise
tax imposed upon the Gross-Up Payment shall be equal to the Payment.  For
purposes of determining the amount of the Gross-Up Payment, the Executive shall
be deemed to pay federal income tax and employment taxes at the highest marginal
rate of federal income and employment taxation in the calendar year in which the
Gross-Up Payment is to be made and state and local income taxes at the highest
marginal rate of taxation in the state and locality of the Executive's residence
on the Termination Date, net of the maximum reduction in federal income taxes
that may be obtained from the deduction of such state and local taxes.

          (d)  All determinations to be made under this Section 10 shall be made
by the Company's independent public accountant immediately prior to the Change
of Control (the "Accounting Firm"), which firm shall provide its determinations
and any supporting calculations both to the Company and the Executive within 10
days of the Termination Date.  Any such determination by the Accounting Firm
shall be binding upon the Company and the Executive.

                                          26
<PAGE>

Within five days after the Accounting Firm's determination, the Company shall
pay (or cause to be paid) or distribute (or cause to be distributed) to or for
the benefit of the Executive such amounts as are then due to the Executive under
this Agreement.

          (e)  The Executive shall notify the Company in writing of any claim by
the Internal Revenue Service that, if successful, would require the payment by
the Company of the Gross-Up Payment.  Such notification shall be given as soon
as practicable but no later than ten business days after the Executive knows of
such claim and shall apprise the Company of the nature of such claim and the
date on which such claim is requested to be paid.  The Executive shall not pay
such claim prior to the expiration of the thirty day period following the date
on which it gives such notice to the Company (or such shorter period ending on
the date that any payment of taxes with respect to such claim is due).  If the
Company notifies the Executive in writing prior to the expiration of such period
that it desires to contest such claim, the Executive shall:

          (i)    give the Company any information reasonably requested by the
                 Company relating to such claim,

          (ii)   take such action in connection with contesting such claim as
                 the Company shall reasonably request in writing from time to
                 time, including, without limitation, accepting legal
                 representation with respect to such claim by an attorney
                 reasonably selected by the company,

          (iii)  cooperate with the Company in good faith in order to
                 effectively contest such claim, and

          (iv)   permit the Company to participate in any proceedings relating
                 to such claim;

                                          27
<PAGE>

provided, however, that the Company shall bear and pay directly all costs and
expenses (including additional interest and penalties) incurred in connection
with such contest and shall indemnify and hold the Executive harmless, on an
after-tax basis, for any Excise Tax, income tax or employment tax, including
interest and penalties, with respect thereto, imposed as a result of such
representation and payment of costs and expenses.  Without limitation on the
foregoing provisions of this Section 10, the Company shall control all
proceedings taken in connection with such contest and, at its sole option, may
pursue or forego any and all administrative appeals, proceedings, hearing and
conferences with the taxing authority in respect of such claim and may, at its
sole option, either direct the Executive to pay the tax claimed and sue for a
refund or contest  the claim in any permissible manner, and the Executive agrees
to prosecute such contest to a termination before any administrative tribunal,
in a court of initial jurisdiction and in one or more appellate courts, as the
Company shall determine; provided further, however, that if the Company directs
the Executive to pay such claim and sue for a refund the Company shall advance
the amount of such payment to the Executive, on an interest-free basis and shall
indemnify and hold the Executive harmless, on an after-tax basis, from any
Excise Tax, income tax or employment tax, including interest or penalties with
respect thereto, imposed with respect to such advance or with respect to any
imputed income with respect to such advance; and provided further that any
extension of the statute of limitations relating to payment of taxes for the
taxable year of the Executive with respect to which such contested amount is
claimed to be due is limited solely to such contested amount.  Furthermore, the
Company's control of the contest shall be limited to issues with respect to
which a Gross-Up Payment would be payable hereunder and the Executive shall be
entitled to settle or contest, as the case may be, any other issue  raised by
the Internal Revenue Service or any other taxing authority.

                                          28
<PAGE>

          (f)  If, after the receipt by the Executive of an amount advanced by
the Company pursuant to this Section, the Executive becomes entitled to receive
any refund with respect to such claim, the Executive shall (subject to the
Company's complying with the requirements of subsection (d)) promptly pay to the
Company the amount of such refund (together with any interest paid or credited
thereon after taxes applicable thereto).  If, after the receipt by the Executive
of an amount advanced by the Company pursuant to this Section, a determination
is made that the Executive shall not be entitled to any refund with respect to
such claim and the Company does not notify the Executive in writing of its
intent to contest such denial of refund prior to the expiration of thirty days
after such determination, then such advance shall be forgiven and shall not be
required to be repaid and the amount of such advance shall offset, to the extent
thereof, the amount of Gross-Up Payment required to be paid.

          (g)  All of the fees and expenses of the Accounting Firm in performing
the determinations referred to in subsections (b) and (c) above shall be borne
solely by the Company.  The Company agrees to indemnify and hold harmless the
Accounting Firm of and from any and all claims, damages and expenses resulting
from or relating to its determinations pursuant to subsections (b) and (c)
above, except for claims, damages or expenses resulting from the gross
negligence or wilful misconduct of the Accounting Firm.

          (h)  Following a Change of Control and for a period of not less than
three years after the Date of Termination, the Executive be entitled to
indemnification and, to the extent available on commercially reasonable terms,
insurance coverage therefor, with respect to the various liabilities as to which
the Executive has been customarily indemnified prior to the Change of Control.

                                          29
<PAGE>

          11   ARBITRATION.  The Company and the Executive mutually consent to
the resolution by arbitration, in accordance with the National Rules for the
Resolution of Employment Disputes of the American Arbitration Association, of
all claims or controversies arising out of the Executive's employment (or its
termination) that the Company may have against the Executive or that the
Executive may have against the Company or against its officers, directors,
shareholders, employees or agents in their capacity as such other than a claim
which is primarily for an injunction or other equitable relief.  The Company and
the Executive shall equally share the fees and costs of the arbitrator, and each
party shall bear its own costs in connection with any arbitration, unless the
Executive shall prevail in an arbitration proceeding as to any material issue,
in which case the Company shall reimburse the Executive for all reasonable
costs, expenses and fees incurred in connection with such arbitration.

          12.  LEGAL FEES.  The Company agrees to pay all legal fees incurred by
the Executive in connection with the negotiation and preparation of this
Agreement, up to a maximum of $15,000.

          13.  MISCELLANEOUS.  (a)  This Agreement shall be governed by, and
construed in accordance with, the laws of the State of Delaware, without
reference to principles of conflict of laws.  The captions of this Agreement are
not part of the provisions hereof and shall have no force or effect.  This
Agreement may not be amended or modified except by a written agreement executed
by the parties hereto or their respective successors and legal representatives.

          (b)  All notices and other communications under this Agreement shall
be in writing and shall be given by hand to the other party or by registered or
certified mail, return receipt requested, postage prepaid, addressed as follows:

                                          30
<PAGE>

               IF TO THE EXECUTIVE:

               c/o Debevoise & Plimpton
               875 Third Avenue
               New York, NY 10022
                      Attention:  Lawrence Cagney

               IF TO THE COMPANY:

               9336 Civic Center Drive
               Beverly Hills, CA 90210

               Attention:  General Counsel

               WITH A REQUIRED COPY TO:

               Morgan, Lewis & Bockius LLP
               1701 Market Street
               Philadelphia, PA  19103-6993
                      Attention:  Robert J. Lichtenstein

or to such other address as either party furnishes to the other in writing in
accordance with this paragraph (b) of Section 13.   Notices and communications
shall be effective when actually received by the addressee.

          (c)  The invalidity or unenforceability of any provision of this
Agreement shall not affect the validity or enforceability of any other provision
of this Agreement.  If any provision of this Agreement shall be held invalid or
unenforceable in part, the remaining portion of such provision, together with
all other provisions of this Agreement, shall remain valid and enforceable and
continue in full force and effect to the fullest extent consistent with law.

          (d)  Notwithstanding any other provision of this Agreement, the
Company may withhold from amounts payable under this Agreement all federal,
state, local and foreign taxes that are required to be withheld by applicable
laws or regulations.

                                          31
<PAGE>

          (e)  The Executive's or the Company's failure to insist upon strict
compliance with any provision of, or to assert any right under, this Agreement
(including, without limitation, the right of the Executive to terminate
employment for Good Reason pursuant to paragraph (c) of Section 5 of this
Agreement) shall not be deemed to be a waiver of such provision or right or of
any other provision of or right under this Agreement.

          (f)  This Agreement may be executed in several counterparts, each of
which shall be deemed an original, and said counterparts shall constitute but
one and the same instrument.

          14.  PRIOR AGREEMENTS.  This Agreement supersedes all prior
agreements, except for the provisions of Section 14 of this Agreement prior to
amendment and restatement until the rights under that Section have expired, and
otherwise sets forth the entire understanding among the parties hereto with
respect to the subject matter hereof.

          IN WITNESS WHEREOF, the Executive has hereunto set the Executive's
hand and, pursuant to the authorization of its Board of Directors, the Company
has caused this Agreement to be executed in its name on its behalf, all as of
the day and year first above written.

HILTON HOTELS CORPORATION

By
   --------------------------------     ---------------------------------
                                        Stephen F. Bollenbach

                                          32

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