Company: DRH-PA
Filing Date: 2025-03-17
Form Type: DEF 14A
Source: 0001298946-25-000038
Chunk: 74

Company: DiamondRock Hospitality Co
Filing Date: 2025-03-17
Form: DEF 14A
Chunk 74
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 PSUs which are valued at 97.2% of target). However, except in the case of a change in control, PSU awards will not be earned and converted into shares of common stock until the end of the performance period.

(4) The cost of the excise tax gross up is an estimate based on a number of assumptions, including: (i) DiamondRock is subject to a change of control on December 31, 2024, (ii) all the named executive officers are terminated on December 31, 2024 without cause following that change of control, (iii) all the named executive officers receive cash incentive compensation for 2024 using the target percentage for each executive officer and (iv) the change of control occurs at a price equal to our closing stock price on December 31, 2024.

The severance agreements contain non-competition covenants that apply during the term and for 12 months after the expiration or termination of such executive’s employment with us to the extent that the executive receives a cash severance payment. The non-competition covenants restrict the executives from working for any lodging-oriented real estate investment company located in the United States. The non-competition covenants will not apply following a change of control.

#### Mr. Brugger Separation Agreement
Mr. Brugger's termination was a termination without cause effective as of April 15, 2024. In connection with Mr. Brugger's termination, the Company and Mr. Brugger entered into a General Release Agreement (the "Brugger Separation Agreement"), which reiterated the severance benefits that he was entitled to under his Severance Agreement dated March 9, 2007, as amended by that certain First Amendment to Severance Agreement dated September 1, 2008 (the "Brugger Severance Agreement"). Pursuant to the Brugger Separation Agreement, Mr. Brugger received a lump sum severance payment in the amount of $6,885,000, a prorated annual bonus payment in the amount of $418,497, subsidized health benefits for a period of 18 months with a value of $86,450, and the service-based vesting of his outstanding RSU awards. Pursuant to the terms of the PSU awards, Mr. Brugger remains eligible to earn 100% of the target PSUs on their original vesting dates, subject to his adherence to the restrictions, covenants and promises in the Brug