Strategic Hotel Capital, Inc. Severance Program Resolution
Strategic Hotel Capital, Inc. has established a severance program for its full-time employees. If an employee is involuntarily terminated for reasons other than poor performance, they will receive severance pay based on their job level: executives receive 12 months' pay, directors receive 6 months' pay, and managers or support staff receive 3 months' pay. Severance includes base salary, target bonus, and payment in lieu of medical insurance. If an employee has a separate written severance agreement, they will receive the greater benefit, but not both. The program also specifically covers Janice Peterson.
Exhibit 10.21
The following resolution of the Board of Directors constitutes the Strategic Hotel Capital, Inc. Severance Program:
RESOLVED, that the Board hereby approves the severance program (the “Severance Program”) for the Corporation as follows: In the event of involuntary termination or severance of a full-time employee with the Corporation for any reason by the Corporation, other than good cause based on such employee’s performance, the Corporation shall pay to such employee or employees, as the case may be:
| • | Band 1 and Band 2 (Executive Vice President, Senior Vice President, Vice President)—12- months Pay (“Pay” shall mean base salary, target bonus plus payment in lieu of medical insurance for the period of severance) |
| • | Band 3 (Director)—6-months Pay |
| • | Band 4 (Manager) and Band 5 (support personnel)—3 months Pay |
However, to the extent an employee has a written agreement from the Corporation relating to severance, such employee shall be entitled to the greater of (1) the severance provided under the Severance Program or (2) the severance provided under such employee’s written agreement; however, in no event shall such employee be entitled to receive severance under both the Severance Program and its written agreement. Notwithstanding the foregoing requirement that the Severance Program only applies to full-time employees, the Severance Program shall also apply to Janice Peterson.
