Document:

<PAGE>
                                                                   Exhibit  10.1

                      SECOND AMENDMENT TO CREDIT AGREEMENT

            SECOND AMENDMENT TO CREDIT AGREEMENT (this "Amendment"), dated as of
June [__], 2003, among STARWOOD HOTELS & RESORTS WORLDWIDE, INC., a Maryland
corporation (the "Corporation"), each additional ALTERNATE CURRENCY REVOLVING
LOAN BORROWER from time to time party to the Credit Agreement (as referred to
below) (together with the Corporation, collectively, the "Borrowers"), the
LENDERS from time to time party to the Credit Agreement (the "Lenders"),
DEUTSCHE BANK AG, NEW YORK BRANCH, as Administrative Agent (in such capacity,
the "Administrative Agent"), J.P. MORGAN CHASE BANK, as Syndication Agent (in
such capacity, the "Syndication Agent"), BANK OF AMERICA, N.A., FLEET NATIONAL
BANK and SOCIETE GENERALE, as Co-Documentation Agents (in such capacity,
collectively, the "Co-Documentation Agents" and each, a "Co-Documentation
Agent"), and DEUTSCHE BANK SECURITIES INC. and JP MORGAN SECURITIES INC. as
Co-Lead Arrangers and Joint Book Running Managers (in such capacity,
collectively, the "Managers"). Unless otherwise defined herein, all capitalized
terms used herein shall have the respective meanings provided such terms in the
Credit Agreement referred to below.

                              W I T N E S S E T H:

            WHEREAS, the Corporation, the Lenders, the Administrative Agent, the
Syndication Agent, the Co-Documentation Agents and the Managers are parties to
that certain Credit Agreement, dated as of October 9, 2002 (as amended, modified
and/or supplemented to, but not including, the date hereof, the "Credit
Agreement");

            WHEREAS, the Corporation and its Subsidiaries desire to, inter alia,
(i) modify the maximum Consolidated Leverage Ratio set forth in Section 9.06 of
the Credit Agreement for the last day of each fiscal quarter ending June 30,
2003 through and including June 30, 2005; (ii) modify the definition of
"Applicable Margin" set forth in Section 11.01 of the Credit Agreement; (iii)
modify the definition of "Consolidated Indebtedness" set forth in Section 11.01
of the Credit Agreement; (iv) provide for certain conditions with respect to the
ability of the Corporation to pay certain Dividends to its shareholders; and (v)
permanently reduce the maximum ratio of Encumbered EBITDA to Consolidated EBITDA
provided in Section 9.08 of the Credit Agreement; and

            WHEREAS, in connection with the foregoing, the Corporation and its
Subsidiaries wish to request certain modifications to provisions in the Credit
Agreement in order to permit the matters described herein, subject to all of the
terms and provisions contained in this Amendment and only to the extent set
forth in this Amendment.

            NOW, THEREFORE, it is agreed:

PART I. AMENDMENTS TO THE CREDIT AGREEMENT.
<PAGE>
            SECTION 1. Maximum Consolidated Leverage Ratio; Section 9.06. From
and after the Second Amendment Effective Date (as defined below), Section 9.06
of the Credit Agreement shall be amended by (i) deleting the table appearing in
said Section in its entirety and (ii) inserting the following new table in lieu
thereof:

<TABLE>
<CAPTION>
                  "Fiscal Quarter Ending                                 Ratio
                  ----------------------                                 -----
<S>                                                                    <C>
                  March 31, 2003                                       5.75:1.00
                  June 30, 2003                                        6.25:1.00
                  September 30, 2003                                   6.00:1.00
                  December 31, 2003                                    6.00:1.00

                  March 31, 2004                                       6.00:1.00
                  June 30, 2004                                        5.75:1.00
                  September 30, 2004                                   5.50:1.00
                  December 31, 2004                                    5.50:1.00

                  March 31, 2005                                       5.25:1.00
                  June 30, 2005                                        5.00:1.00

                  Each fiscal quarter ending on or after               4.50:1.00
                  September 30, 2005 and on or prior to
                  June 30, 2006

                  Each fiscal quarter ending after                     4.00:1.00".
                  June 30, 2006
</TABLE>

            SECTION 2. Unencumbered EBITDA Ratio; Section 9.08. From and after
the Second Amendment Effective Date, Section 9.08 of the Credit Agreement shall
be amended by deleting the text "0.36:1.00" appearing in said Section and
inserting the text "(x) in the case of any Test Period ending on or prior to
June 30, 2003, 0.36:1.00 and (y) in the case of any Test Period ended
thereafter, 0.30:1.00" in lieu thereof.

            SECTION 3. Definition of "Applicable Margin"; Section 11.01. From
and after the Second Amendment Effective Date, the definition of "Applicable
Margin" appearing in Section 11.01 of the Credit Agreement shall be amended by
(a) (i) deleting the text "or Level 9, as the case may be" appearing in said
definition and (ii) inserting the text ", Level 9 or Level 10, as the case may
be" in lieu thereof, (b) (i) deleting the table set forth after subsection (D)
of the first proviso appearing in said definition and (ii) inserting in lieu
thereof the following new table:

<TABLE>
<CAPTION>
                                                                                        Base Rate Loan and
                              Consolidated Leverage              Euro Rate             Canadian Prime Rate
                    Level             Ratio                      Loan Margin               Loan Margin
                    -----             -----                      -----------               -----------
<S>                 <C>       <C>                                <C>                   <C>
                      6           < 4.50                            1.250%                    0.250%
</TABLE>
<PAGE>
<TABLE>
<S>           <C>      <C>                     <C>            <C>
               7  >,   = 4.50 < 5.00           1.500%          0.500%
               8  >,   = 5.00 < 5.50           1.625%          0.625%
               9  >,   = 5.50 < 5.75           1.875%          0.875%
              10  >,   = 5.75x                 2.250%          1.250%
</TABLE>

and (c) (i) deleting each reference to "Level 9" in subclauses (x) and (z) of
the second proviso appearing in said definition and (ii) inserting in lieu
thereof the text "Level 10".

            SECTION 4. Definition of "Consolidated Indebtedness"; Section 11.01.
From and after the Second Amendment Effective Date, the definition of
"Consolidated Indebtedness" appearing in Section 11.01 of the Credit Agreement
shall be amended by inserting the following text immediately prior to the period
at the end of the last sentence of said definition:

         "and, provided further, that for purposes of calculating "Consolidated
         Indebtedness" at any time on or prior to the earlier of (i) November
         15, 2003 and (ii) the Segregated Funds Withdrawal Date, "Consolidated
         Indebtedness" (determined as otherwise required above in this
         definition) shall be reduced by the lesser of (x) the aggregate amount
         of the Segregated Funds at such time (in the case of Segregated Funds
         constituting Cash Equivalents, taking the fair market value thereof as
         reasonably determined by management of the Corporation) and (y)
         $250,000,000.".

            SECTION 5. Certain New Definitions. From and after the Second
Amendment Effective Date, the following defined terms, as used in this
Amendment, shall have the following meanings and Section 11.01 of the Credit
Agreement is hereby amended by inserting in said Section 11.01, in appropriate
alphabetical order, the following defined terms:

                  "Designated Assets" shall mean any of those eighteen (18)
         Hotels owned by Domestic Subsidiaries of the Corporation as set forth
         in an officer's certificate from an Authorized Officer of the
         Corporation delivered to the Administrative Agent prior to the date
         hereof, which Hotels may be sold in a single transaction or in any
         combination or series of transactions.

                  "Sheraton 7-Year Senior Notes" shall mean those certain Senior
         Notes issued by Sheraton in the aggregate principal amount of $250.0
         million due November 15, 2003, as described in the first line of item 1
         on Part I of Schedule 7.17 to the Credit Agreement.

                  "Segregated Funds" shall mean cash and Cash Equivalents of the
         Credit Parties which (i) represent (directly or indirectly) the net
         sale proceeds received by any Credit Party from the sale of Designated
         Assets, (ii) are specifically designated by the Corporation for use
         solely to repay the Sheraton 7-Year Senior Notes pursuant to an
         officer's certificate from an Authorized Officer of the Corporation (x)
         delivered to the Administrative Agent within fifteen (15) Business Days
         following the respective sale of Designated Assets and (y) specifically
         identifying the initial amount of the cash and Cash Equivalents
         constituting net sale proceeds from the respective sale of Designated
         Assets to be so designated as "Segregated Funds" and (iii) are at all
         times held in one or more
<PAGE>
         segregated accounts of the Credit Parties (and are not commingled with
         any other funds of the Credit Parties) until utilized to repay in full
         the Sheraton 7-Year Senior Notes in accordance with their terms;
         provided that, notwithstanding the foregoing, (x) the cash and Cash
         Equivalents described above shall not constitute "Segregated Funds" at
         any time on or after the Segregated Funds Withdrawal Date, (y) the
         Corporation may from time to time withdraw from the segregated accounts
         described above cash and Cash Equivalents which solely represent
         interest or other returns on investment on funds then constituting
         "Segregated Funds", and (z) in the event that the Corporation or any
         other Credit Party wishes to withdraw funds theretofore constituting
         "Segregated Funds" from any segregated account described above (other
         than in accordance with the requirements of preceding clause (y)), an
         Authorized Officer of the Corporation shall deliver an officer's
         certificate to the Administrative Agent (I) demonstrating "pro forma"
         compliance with Section 9.06 as at the last day of the fiscal quarter
         then last ended (for such purposes, recalculating the Consolidated
         Leverage Ratio using Consolidated Indebtedness as at the last day of
         such fiscal quarter (for such purposes, calculated as otherwise
         required pursuant to this Agreement as at such date but without giving
         effect to the last proviso appearing in the definition of "Consolidated
         Indebtedness"), (II) containing the calculations (in reasonable detail)
         required to demonstrate compliance pursuant to preceding clause (I),
         and (III) acknowledging that upon any such withdrawal, the amount of
         the "Segregated Funds" shall at all times thereafter be zero.

                  "Segregated Funds Withdrawal Date" shall mean the date of any
         withdrawal of funds (whether cash or Cash Equivalents) then
         constituting "Segregated Funds" from the segregated accounts referred
         to in the definition thereof other than in reliance on clause (y) of
         the proviso contained in said definition.

            SECTION 6. Restrictions on Dividends. Notwithstanding anything to
the contrary contained in Section 9.03 of the Credit Agreement, from and after
the Second Amendment Effective Date to and including June 30, 2005, during the
364-day period ending on the date of a proposed dividend declaration, the
Corporation shall not, and shall not permit Starwood REIT to, declare the
payment of cash dividends to their respective shareholders (in the case of a
dividend declared by Starwood REIT, excluding dividends to be paid to the
Corporation or any Wholly-Owned Subsidiary of the Corporation) in an aggregate
amount in excess of 25% of Consolidated EBITDA for the Test Period last ended on
or prior to the respective date of declaration; provided, that (i) any dividend
declared in reliance on the preceding provisions of this Section 6 shall be paid
within 90 days of the respective date of declaration and (ii) nothing contained
in this Section 6 will limit the requirements applicable to the payment of
Dividends by the Corporation pursuant to Section 9.03(ii) of the Credit
Agreement.

            SECTION 7. Acknowledgement. Each Borrower and each Lender
acknowledges and agrees that (I) any withdrawal of funds then constituting
"Segregated Funds" from the segregated accounts referred to in the definition
thereof other than (i) in accordance with clause (y) or (z) of the proviso
contained in the definition of "Segregated Funds" or (ii) to repay in full (on
such date of withdrawal) the Sheraton 7-Year Senior Notes in accordance with
their terms, and (II) any violation of the provisions of Section 6 of Part I of
this Amendment shall, in either
<PAGE>
case, constitute an Event of Default for all purposes of the Credit Agreement
and the other Credit Documents.

PART II. MISCELLANEOUS PROVISIONS

            A. Each Guarantor, by its signature below, hereby confirms that its
Guaranty shall remain in full force and effect and its Guaranty covers the
obligations of each of the relevant Borrowers under the Credit Agreement, as
modified and amended by this Amendment.

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

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

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

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

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

            G. From and after the Second Amendment Effective Date, all
references in the Credit Agreement and each of the other Credit Documents to the
Credit Agreement shall be deemed to be references to the Credit Agreement as
modified hereby. This Amendment shall constitute a Credit Document for all
purposes under the Credit Agreement and the other Credit Documents.
<PAGE>
            H. The Borrowers hereby covenant and agree that, so long as the
Second Amendment Effective Date occurs, they shall pay (and shall be jointly and
severally obligated to pay) each Lender which executes and delivers to the
Administrative Agent (or its designee) a counterpart hereof by the later to
occur of (x) the close of business on the Second Amendment Effective Date or (y)
12:00 p.m. (New York time) on Monday, June 30, 2003 (the "Outside Date"), or
which is an immediate or successive assignee of any Lender described above (with
respect to amounts obtained, directly or indirectly, by assignment from such
Lender), a non-refundable cash fee in an amount equal to twenty basis points
(0.20%) of an amount equal to the sum of (x) the outstanding principal amount of
Term Loans of such Lender and (y) the Revolving Loan Commitment of such Lender,
in each case as same is in effect on the Second Amendment Effective Date, which
fees shall be paid by the Borrowers to the Administrative Agent for distribution
to the Lenders not later than the fifth (5th) Business Day following the Outside
Date.

                   [Signatures appear on the following page.]
<PAGE>
            IN WITNESS WHEREOF, the parties hereto have caused their duly
authorized officers to execute and deliver this Amendment as of the date first
above written.

                               STARWOOD HOTELS & RESORTS
                                     WORLDWIDE, INC., as the Borrower and
                                     Guarantor

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

                               STARWOOD CANADA CORP., as an Alternate
                                     Currency Revolving Loan Borrower

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

                               SHERATON HOLDING CORPORATION, as
                                     Guarantor

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

                               DEUTSCHE BANK AG, NEW YORK
                                     BRANCH,
                                     Individually and as Administrative Agent

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

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

<PAGE>

                               SIGNATURE PAGE TO THE SECOND AMENDMENT DATED
                               AS OF JUNE __, 2003, TO THE CREDIT
                               AGREEMENT, DATED AS OF OCTOBER 9, 2002,
                               AMONG STARWOOD HOTELS & RESORTS WORLDWIDE,
                               INC., CERTAIN ADDITIONAL ALTERNATE CURRENCY
                               REVOLVING LOAN BORROWERS, THE VARIOUS
                               LENDERS PARTY THERETO, DEUTSCHE BANK AG, NEW
                               YORK BRANCH, AS ADMINISTRATIVE AGENT, J.P.
                               MORGAN CHASE BANK, AS SYNDICATION AGENT AND
                               BANK OF AMERICA, N.A., FLEET NATIONAL BANK
                               AND SOCIETE GENERALE, AS CO-DOCUMENTATION
                               AGENTS

                               NAME OF INSTITUTION:

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

                               By:
                                  -----------------------------------
                                   Name:
                                   Title:EXHIBIT 10.3

                              XOMA IRELAND LIMITED
                              Shannon Airport House
                              Shannon, County Clare
                                     Ireland

                                                                   June 30, 2003

Baxter Healthcare Corporation
1627 Lake Cook Road
Deerfield, IL  60015
Attention:  Victor W. Schmitt

                      Re: Termination of License Agreement
                          --------------------------------

     Reference is made to that certain License Agreement dated as of January 25,
2000 (the "License Agreement") between XOMA Ireland Limited, a company with
limited liability organized under the laws of the Republic of Ireland ("XOMA"),
and Baxter Healthcare Corporation, a Delaware corporation ("Baxter").
Capitalized terms used and not defined herein shall have the meanings ascribed
to them in the License Agreement.

     Upon execution hereof by both parties, the parties hereto agree that the
License Agreement, together with any and all agreements between the parties that
are related to the subject matter thereof, will terminate in their entirety and
be of no further force and effect as of June 30, 2003, except for the provisions
specified below, which shall survive the termination of the License Agreement.
In consideration thereof, Baxter agrees to pay to XOMA on or prior to January 5,
2004, by wire transfer payment of immediately available funds to the account of
XOMA designated to Baxter in advance in writing, the sum of US$6,960,000 plus
reimbursement of fifty percent (50%) of expenses incurred from the date hereof
through the date of such payment.

     Upon execution hereof by both parties, Baxter, on behalf of itself and its
parents, subsidiaries, assigns, successors, stockholders, directors, officers,
employees, and agents, hereby releases and forever discharges XOMA, and each of
its parents, subsidiaries, assigns, successors, stockholders, directors,
officers, employees, attorneys and agents, of and from any and all claims,
counterclaims, rights, demands, costs, damages, losses, liabilities, actions and
causes of actions whatsoever, whether in law or equity, arising from or related
to the License Agreement existing as of the date hereof. Upon the later of
timely payment in full of the aggregate amount referred to in the last sentence
of the preceding paragraph and com-

<PAGE>
                                      -2-

pletion of the transfer, in usable form, of the data referred to in the fifth
paragraph hereof, XOMA, on behalf of itself and its parents, subsidiaries,
assigns, successors, stockholders, directors, officers, employees, and agents,
shall be deemed to have released and forever discharged Baxter, and each of its
parents, subsidiaries, assigns, successors, stockholders, directors, officers,
employees, attorneys and agents, of and from any and all claims, counterclaims,
rights, demands, costs, damages, losses, liabilities, actions and causes of
actions whatsoever, whether in law or equity, arising from or related to the
License Agreement existing as of the date hereof.

     For the avoidance of doubt, the parties acknowledge that the termination
provided for herein is mutual and that therefore neither Section 12.4.1 nor
Section 12.4.2 shall apply. Notwithstanding the foregoing, the provisions of
Article 8 and Sections 13.3, 13.5, 13.7.1 and 13.9 through 13.12 shall survive
this termination.

     Notwithstanding either the foregoing or any provision of the License
Agreement, the parties agree that promptly upon execution hereof Baxter shall
transfer to XOMA, as directed by XOMA, any and all data, whether clinical or
pre-clinical, under Baxter's control relating to the subject matter of the
License Agreement.

     The parties agree that any action or dispute arising from or relating to
this agreement may only be brought in Superior Court of the State of California
or a United States District Court in the State of California. Each of the
parties hereby (a) submits to the exclusive jurisdiction of such courts; (b)
waives the defense of inconvenient forum; (c) agrees that a final judgment in
any such action or proceeding shall be conclusive and may be enforced in other
jurisdictions in any manner provided by law; and (d) to the extent that it or
its properties have or hereafter acquire immunity from jurisdiction of any court
or from any legal process, waives such immunity in respect of its obligations
under this agreement. Baxter hereby consents to service of process upon it by
making or delivering such service to the attention of the General Counsel at
Baxter Healthcare Corporation at One Baxter Parkway Deerfield, IL 60015, and
XOMA hereby consents to service of process upon it by mailing or delivering such
service to the attention of Geoffrey E. Liebmann at Cahill Gordon & Reindel at
80 Pine Street, New York, NY 10005.

     This letter shall be governed by and construed in accordance with the laws
of the State of California, without regard to principles of conflicts of laws.
This letter may be executed in counterparts and delivered by facsimile
transmission.

<PAGE>
                                      -3-

     Please acknowledge your agreement with all of the foregoing by signing
below, whereupon this letter shall become a binding agreement between us.

                                     Very truly yours,

                                     XOMA IRELAND LIMITED

                                     -----------------------------------------
                                     Alan Kane, Director,
                                     duly authorized on behalf of XOMA Ireland
                                     Limited in the presence of:

                                     Witness:

                                     -----------------------------------------
                                     Name:

ACKNOWLEDGED and AGREED
as of the date first above written:

BAXTER HEALTHCARE CORPORATION

By:
     ------------------------------------
     Name: Victor W. Schmitt
     Title: President, Venture Management

Cc:  General Counsel, Baxter Healthcare Corporation
     President, Baxter BioScience

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