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Exhibit 10.50  

 
 

FIRST AMENDMENT TO EMPLOYMENT AGREEMENT    
  

        This First Amendment to Employment Agreement (this "Amendment") is made and entered into as of November 14,
2001, by and between Hilton Hotels Corporation, a Delaware corporation (the "Company"), and Stephen F. Bollenbach (the "Executive"). 

        WHEREAS, the Company and the Executive are parties to that certain Employment Agreement, dated as of March 9, 2000 (the  "Agreement"); 

        WHEREAS, pursuant to resolutions of the Board of Directors of the Company and the Compensation Committee thereof, the Company deems it
advisable to adopt certain amendments to the Change of Control provisions of its employee benefit plans (the "Plans"); 

        WHEREAS, the Compensation Committee and the Board of Directors of the Company deem it desirable and in the best interests of the Company
and its stockholders to amend the Agreement to conform to the amendments made to the other Plans; and 

        WHEREAS, the Executive also desires to amend the Agreement as hereinafter set forth. 

        NOW, THEREFORE, in consideration of the mutual conditions and agreements set forth in the Agreement and this Amendment, and other good and
valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the parties hereto hereby agree as follows: 

        1.    Definitions.    Capitalized terms used in this Amendment, unless otherwise defined
herein, shall have the meaning ascribed to such terms in the Agreement. 

        2.    Amendments.    Subject to the conditions set forth below, the Agreement is hereby
amended by amending and restating Section 10(a) thereof to read in its entirety as follows: 

        "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 combined voting power of the Company's then outstanding voting
securities entitled to vote generally in the election of directors; provided, however, that notwithstanding the foregoing, a Change of Control of the
Company shall not be deemed to occur solely because any person acquires beneficial ownership of more than 20% of such common stock or the voting securities of the Company as a result of the
acquisition of common stock or voting securities by the Company which reduces the amount of common stock or voting securities; provided, that if after such acquisition by the Company such person
becomes the beneficial owner of additional common stock or voting securities that increases the percentage of common stock or voting securities beneficially owned by such person, a Change of Control
of the Company shall then occur; or 

1

 

        (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 14a-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 60% 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." 

        3.    Corporate Action.    The execution, delivery, and performance of this Amendment has been
duly authorized by all requisite corporate action on the part of the Company and this Amendment has been duly executed and delivered by each of the Company and the Executive. 

        4.    Severability.    Any provision of this Amendment held by a court of competent
jurisdiction to be invalid or unenforceable shall not impair or invalidate the remainder of this Amendment and the effect thereof shall be confined to the provision so held to be invalid or
unenforceable. 

        5.    References.    Any reference to the Agreement contained in any document, instrument or
agreement executed in connection with the Agreement, except where the context otherwise requires, shall be deemed to be a reference to the Agreement as modified by this Amendment. 

        6.    Counterparts.    This Amendment may be executed in one or more counterparts, each of
which shall constitute an original, but all of which taken together shall be one and the same instrument. 

        7.    Agreement.    The Agreement shall continue to be and remain in full force and effect in
accordance with the terms thereof, as modified by this Amendment. 

        IN WITNESS WHEREOF, the parties hereto have executed this Amendment as of the day and year first above written. 

	EXECUTIVE	 	HILTON HOTELS CORPORATION
	

/s/  STEPHEN F. BOLLENBACH      
 Stephen F. Bollenbach,

President and Chief Executive Officer	
 	

By:	
 	

/s/  MADELEINE A. KLEINER      
 Madeleine A. Kleiner

Executive Vice President, General Counsel

and Corporate Secretary

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Exhibit 10.51  

CONFIDENTIAL  

 
 

SETTLEMENT AGREEMENT AND RELEASE    
  

        This
SETTLEMENT AGREEMENT AND RELEASE is entered into as of February 22, 2001 by and among Thomas L. Keltner ("Keltner"), Promus Hotel Corporation ("Promus") and Hilton Hotels
Corporation ("Hilton"). 

        WHEREAS,
on or about November 22, 1999, Keltner and Hilton agreed that, notwithstanding any Release subsequently granted to Promus or Hilton, 125,000 stock options which had been
granted to Keltner on December 19, 1997 at a strike price above $38.50 (hereinafter referred to simply as the "Promus Options") would be treated as least as favorably as the "out of the money"
options granted to other similarly situated executive officers of Promus; and 

        WHEREAS,
on or about November 30, 1999, Keltner executed a Release of certain claims against Promus, Hilton and Chicago Hilton, Inc. relating to certain stock options held
by Keltner including the Promus Options all of which were subject to certain vesting, cash-out and/or cancellation terms in the Promus 1997 Equity Participation Plan and the Promus-Hilton
Merger Agreement; and 

        WHEREAS,
former Promus executive officers Richard Kelleher and William Perocchi subsequently filed arbitration demands with regard to the treatment of their "out of the money" Promus
stock options. Hilton (and its subsidiaries Promus and Doubletree Corporation), Kelleher and Perocchi ultimately agreed to amicably resolve any and all claims that were or could have been asserted in
their respective Arbitration proceedings; and 

        WHEREAS,
Keltner, Promus and Hilton have now agreed to resolve, pursuant to the following terms, any and all claims that Keltner may have with respect to the Promus Options. 

        NOW
THEREFORE, in full and complete satisfaction of any and all of the Released Claims (as defined herein), in consideration of the mutual promises and covenants set forth in this
Agreement, the parties agree as follows: 

        1.    Settlement Payment. In full and complete satisfaction of the Released Claims, Hilton agrees to pay Keltner the sum of
$783,000, less amounts (if any) that are required to be withheld under any applicable federal, state or local laws relating to taxation or employment (the "Settlement Amount"). Hilton will pay this
amount to Keltner within five (5) business days of the execution and delivery of this Agreement by Keltner to Hilton. Notwithstanding any prior agreement or understanding, neither Promus nor
Hilton shall make any additional payment to Keltner relating to the Settlement Amount, including without limitation any "gross-up" payment of any federal, state or local tax (or penalties
or interest associated with any such tax) that may be assessed with respect to such amount. 

        2.    Release. (a) Subject to subparagraph (b) of this section, in consideration for the agreements of Promus and Hilton
herein, Keltner, on his own behalf and on behalf of his spouse, heirs, estate, executors, administrators, successors and assigns (collectively, "Releasors"), hereby fully, irrevocably and
unconditionally releases and forever discharges, Promus and Hilton, and each of their respective parents, subsidiaries, affiliates and divisions, past or present shareholders, representatives,
officers, directors, employees, attorneys, agents, successors and assigns (collectively, "Releasees"), from any and all claims, rights, causes of action, liability, costs, expenses, attorney's fees or
amounts or benefits of any nature (other than amounts payable to Keltner pursuant to the express terms of this Agreement), that were asserted, or could have been asserted by the Releasors relating in
any way to Keltner's Promus Options including, without limitation, any claim relating to the granting, vesting, exercise, conversion or cancellation of the Promus Options that Releasors, or any of
them, now have, ever had, or may hereafter have, whether known or unknown, suspected or unsuspected at any time up to and including the date of this Agreement, whether arising under any alleged
contractual relationship, 

express or implied, or benefit plan, or under tort, or under any federal, state or local labor, employee benefit or fair employment practice law, the U.S. Constitution or any civil rights law, or any
other claim arising under local, state, or federal law or any other duty or obligation of any kind or description (the "Released Claims"). 

        (b)  Notwithstanding
section 2(a), Promus and Hilton acknowledge and agree that the Release provided under section 2(a) shall not affect the current benefits
and rights of Keltner in his capacity as an employee and executive officer of Hilton, all of which Hilton shall continue to provide to Keltner (or to his spouse, dependents or successors, but only to
the extent provided for under the governing plans or agreements), subject to all of the terms and conditions applicable to such benefits under the applicable plans or agreements. 

        3.    Confidentiality. (a) Keltner shall keep confidential the existence of this Agreement, the terms of this Agreement, and all
communications between or among Keltner (and/or his attorneys or agents) and Promus and/or Hilton (or their respective attorneys or agents) relating in any way to the negotiation of the
November 22, 1999 Release Agreement, the Kelleher / Perocchi Arbitrations and/or settlements, or the negotiation of the settlement herein. Keltner further covenants that he shall notify
Hilton's General Counsel of any request for information made by any third party that may be subject to the foregoing confidentiality restrictions. Notwithstanding the foregoing, in response to
inquiries to Keltner concerning such matters, Keltner may disclose, without further elaboration or comment (whether verbal or non-verbal) that all issues relating to the Promus Options
have been resolved and that he is not permitted to comment further. Further, this provision shall not prevent Keltner from disclosing such information to his spouse, or to his attorneys or accountants
for the purposes of obtaining professional advice, provided that prior to any such disclosure such persons are informed of, and agree to be bound by,
the confidentiality restrictions provided for herein. Finally, Keltner shall be permitted to make disclosures that are required by law or are necessary to respond to any inquiry made by any regulatory
or taxing authority, provided that Keltner shall provide Hilton with sufficient notice of such an inquiry to permit Hilton to intervene in order to object to, or to seek appropriate confidentiality
restrictions in connection with, the disclosure of such information. 

        (b)  In
the event of a breach by Keltner of section 3(a), Promus and/or Hilton shall be entitled to recover from Keltner, as liquidated damages, the amount of
$117,450.00. The parties agree that this amount is reasonable under the circumstances. Any dispute as to whether Keltner has breached his obligations under section 3(a) of this Agreement shall
be subject to arbitration by a single neutral arbitrator under the Commercial Arbitration Rules of the American Arbitration Association, with such arbitration to be held in Memphis, Tennessee. The
prevailing party in any such arbitration shall be entitled to reimbursement by the non-prevailing party of the attorneys' fees and expenses reasonably incurred by the prevailing party in
connection with such arbitral proceeding. 

        4.    No Admission. Promus and Hilton are entering into this Agreement solely to avoid the burden, expense and distraction of
further negotiations and to bring finality to the issue. Promus and Hilton expressly deny that they (or any of their directors, officers, employees, attorneys or agents) have violated any contract,
benefit plan, law or statute or have failed to satisfy any duty or obligation whatsoever, or that they have committed any tort or engaged in any wrongful conduct. This Agreement and the terms hereof
shall not be offered into evidence and shall not be admissible in any proceeding, other than a proceeding to enforce its provisions. 

        5.    Acknowledgment. Keltner acknowledges that he is entering into this Agreement freely and of his own will; that in entering
into this Agreement he has not relied upon any representation by Promus or Hilton or any of their respective attorneys or agents; that he has had the opportunity to consult with competent legal
counsel in connection with the negotiation and execution of this Agreement; and that he has reviewed all of the provisions of this Agreement prior to signing the Agreement. 

        6.    Entire Agreement and Amendments. This Agreement constitutes the entire agreement among the parties and supersedes all
express or implied prior agreements, whether written or oral, concerning the Promus Options, including without limitation, the November 22, 1999 Agreement. Notwithstanding 

the foregoing, this Agreement does not affect in any way the November 30, 1999 Release and/or Keltner's current rights and benefits to which he may be entitled as an employee and executive
officer of Hilton. This Agreement may not be modified, altered or amended in any way except by a written agreement signed by all parties hereto. Any failure by any party to insist on strict
performance of any provision hereof shall not be deemed a waiver of rights to insist on strict performance of that or any other provision. 

        7.    Governing Law. This Agreement shall be governed by, and construed in accordance with, the laws of the State of Tennessee,
without regard to choice of law principles thereof. 

        8.    Counterparts and Effectiveness. This Agreement may be executed in counterparts and shall become effective as of the date
stated above upon the execution and delivery of signed counterparts by all parties. 

	 	 	By:	 	/s/  THOMAS L. KELTNER      
 Thomas L. Keltner
	

 	
 	

HILTON HOTELS CORPORATION
	

 	
 	

By:	
 	

/s/  MADELEINE A. KLEINER      
 Madeleine A. Kleiner

Executive Vice President, General Counsel and Corporate Secretary
	

 	
 	

PROMUS HOTEL CORPORATION
	

 	
 	

By:	
 	

/s/  MADELEINE A. KLEINER      
 Madeleine A. Kleiner

Executive Vice President, General Counsel and Corporate Secretary

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SETTLEMENT AGREEMENT AND RELEASE

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