Exhibit 10.2

 

April 7, 2005

 

Strategic Hotel Capital, Inc.

Attn: General Counsel

77 West Wacker Drive, Suite 4600

Chicago, Illinois 60601

 

Re: Termination of Observer Agreement

 

Ladies and Gentlemen:

 

The undersigned hereby agree to terminate the Observer Agreement, dated as of
June 29, 2004, by and among the undersigned and the Company (the “Observer
Agreement”), such termination not to be effective unless and until Robert M.
Falzon is elected to the Board of Directors of Strategic Hotel Capital, Inc.
(the “Company”) at its 2005 annual stockholders’ meeting; provided, however,
that the confidentiality obligations set forth in Section 3.11 of the Observer
Agreement shall survive the termination of the Observer Agreement in accordance
with the terms thereof.

 

Very truly yours,

THE PRUDENTIAL INSURANCE COMPANY OF AMERICA

By:

  Prudential Investment Management, Inc., its Attorney-in-Fact     By:  

/S/    ROBERT M. FALZON

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    Name:   Robert M. Falzon     Title:   Vice President

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April     , 2005

Page 2

 

PIC REALTY CORPORATION

By:

  Prudential Investment Management, Inc., its Attorney-in-Fact     By:  

/S/    ROBERT M. FALZON

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    Name:   Robert M. Falzon     Title:   Vice President

STRATEGIC VALUE INVESTORS, LLC

By:

  Prudential Investment Management, Inc., its Attorney-in-Fact     By:  

/S/    ROBERT M. FALZON

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

    Name:   Robert M. Falzon     Title:   Vice President

PRUDENTIAL ASSETS, LLC

By:

  Prudential Investment Management, Inc., its     Attorney-in-Fact     By:  

/S/    ROBERT M. FALZON

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

    Name:   Robert M. Falzon     Title:   Vice President PRUDENTIAL INVESTMENT
MANAGEMENT, INC.

By:

 

/S/    ROBERT M. FALZON

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

Name:

  Robert M. Falzon

Title:

  Vice President

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April     , 2005

Page 3

 

(SHC/OLAYAN) REDEMPTION VEHICLE, LLC

By:

  Prudential Investment Management, Inc., its Attorney-in-Fact     By:  

/S/    ROBERT M. FALZON

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

    Name:   Robert M. Falzon     Title:   Vice President SVI (SHC/HOUSTON)
REDEMPTION VEHICLE, LLC

By:

  Prudential Investment Management, Inc., its Attorney-in-Fact     By:  

/S/    ROBERT M. FALZON

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

    Name:   Robert M. Falzon     Title:   Vice President

 

Agreed and Accepted as of the date written above.

 

STRATEGIC HOTEL CAPITAL, INC.

By:

 

/S/    LAURENCE S. GELLER

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Name:

  Laurence S. Geller

Title:

  President and Chief Executive Officer