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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.
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Very truly yours,
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THE PRUDENTIAL
INSURANCE COMPANY OF AMERICA
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By:
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Prudential
Investment Management, Inc., its Attorney-in-Fact
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By:
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/ S / R OBERT M.
F ALZON
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Name:
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Robert M.
Falzon
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Title:
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Vice
President
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