Document:

Exhibit 10.2

Exhibit 10.2

December 16, 2009

Confidential

Dear Michael:

As we have discussed, DiamondRock Hospitality Company (the “Company”) has made the decision to
terminate your employment with the Company effective December 31, 2009. In accordance with the
terms of that certain Severance Agreement dated March 9, 2007 by and between you and the Company
(the “Severance Agreement”), you shall be entitled to severance payments and benefits to be
provided in connection with a termination without Cause, as set out more fully below, conditioned
upon your execution of this agreement and general release (the “Agreement”) and good faith
cooperation throughout, as contemplated in Section 3(a) of the Severance Agreement.

Effective December 31, 2009, you are to cease all efforts on behalf of the Company, except as
the Company requires your assistance in accordance with your obligations under Section 8(e) of the
Severance Agreement (captioned Litigation and Regulatory Cooperation. Furthermore, as of December
31, 2009, you are not to hold yourself out as an employee, agent, or authorized representative of
the Company, or negotiate or enter into any agreements on behalf of the Company or otherwise bind
the Company.

In accordance with the terms of the Severance Agreement, the Company is prepared to offer you
the following severance package, contingent upon your agreement with the following terms and with
your execution of this Agreement:

	 	1.	 	Your last day of employment with the Company will be December 31, 2009, and you will be
paid your accrued and unpaid 2009 base salary through that day.

	 	2.	 	The Company also will pay you the amount of $200,244.00, less all lawful deductions,
which represents a pro-rata target bonus for the 2009 fiscal year, calculated based on the
target bonus for this fiscal year, in accordance with Section 3(b)(i) of the Severance
Agreement.

	 	3.	 	In addition, pursuant to Section 3(b)(ii) of the Severance Agreement, the Company will
pay you the sum of $1,007,288.00, less all lawful deductions, which represents two times
the sum of (A) your current base salary ($303,400 per year), and (B) your target bonus for
this year. Subject to the eight day waiting period, this sum will not be paid to you until
January 15, 2010, and this sum will be paid to you in one lump sum. Your
severance check(s) will be mailed to you at your home address, unless you request otherwise
in writing.

 

 

 

	 	4.	 	You will be reimbursed for all ordinary and necessary reasonable business related
expenses incurred by you prior to December 31, 2009. You must submit your request for
reimbursement for these expenses, accompanied by proper documentation, to Sean Mahoney on
or before January 15, 2010.

	 	5.	 	Your health insurance coverage will continue through December 31, 2009. Thereafter,
you may be eligible to continue your health insurance coverage for an additional period of
time under COBRA or its Maryland state law counterpart (COBRA). This health insurance
continuation coverage will be at your own expense, subject to the provisions of the
American Recovery and Reinvestment Act of 2009 (as applicable). We will provide you with
further details on these conversion/continuation rights in a separate document. Provided
that you meet the eligibility requirements for health insurance continuation coverage and
the terms and conditions for such insurance coverage, the Company shall continue to
contribute toward your health insurance continuation coverage premiums for the period of
eighteen (18) months subsequent to December 31, 2009 (the “COBRA Coverage Period”). If
this coverage becomes unavailable to you or the Company’s insurer refuses to cover you for
any reason during the COBRA Coverage Period, the Company will pay you monthly an amount
equal to the Company’s premiums for its health insurance plan(s), after reduction for
income and employment taxes, for the remainder of the COBRA Coverage Period. In addition,
the Company will, for the full COBRA Coverage Period, either (i) to the extent permissible
(and without the Company’s incurring an obligation to pay excise taxes) under the
applicable rules for health savings accounts, continue to make the monthly employer
contributions (as it may be increased for comparable active employees) to your health
savings account (“HSA”) that it was making at the time of your termination or (ii) for
periods in which a payment under Section 5(i) above is not deemed reasonably feasible, pay
you monthly a cash payment that is equal to the amount of the contribution described in
Section 5(i) grossed up for federal and state income taxes (which are assumed to be payable
at the highest marginal rates of taxation).

	 	6.	 	During your employment, you received a number of grants of common stock. Currently,
you have 197,951 unvested shares of the company’s common stock. Pursuant to the terms of
your Severance Agreement, as of the Effective Date of this Agreement you shall vest in 100%
of the unvested shares. Except as expressly provided herein, your ownership in these
unvested shares shall be subject to the terms and conditions set forth in the Restricted
Stock Agreement.

	 	7.	 	In connection with your employment, you became eligible to receive a grant of 25,176
Stock Appreciation Rights from the Company pursuant to that certain Stock Settled Stock
Appreciation Rights Agreement Under the DiamondRock Hospitality Company 2004 Stock Option
and Incentive Plan dated March 4, 2008 (the “Stock Appreciation Rights Agreement”), subject
to vesting over a three (3) year period. The Company, pursuant to
its discretion under the Stock Appreciation Rights Agreement, agrees to allow for the
vesting of all your currently unvested Stock Appreciation Rights. However, the Company will
not extend the time period you have to exercise the Stock Appreciation Rights beyond three
months after your termination from the Company.

 

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	 	8.	 	Pursuant to the Dividend Equivalent Rights Agreement under the DiamondRock Hospitality
Company 2004 Stock Option and Incentive Plan dated March 4, 2008 (the “DER” or “Dividend
Equivalent Rights Agreement”), you received a grant of 25,176 DER options. The Company,
pursuant to its discretion under the Dividend Equivalent Rights Agreement, agrees to allow
for the vesting of all your currently unvested DER options.

	 	9.	 	You will have no further right to participate in the Company’s Retirement Income Plan
(the pension plan) or 401(k) plan; however, any vested rights in these plans that you
currently have shall not be affected by this Agreement, including any matching funds
through the date of termination.

	 	10.	 	The Company will not contest any claim you may file for unemployment compensation.
Nothing in this Agreement shall preclude the Company from making truthful disclosures
required by law.

	 	11.	 	You acknowledge and agree that the terms set forth above include compensation you would
not be entitled to receive absent your execution of this Agreement. Furthermore, you
acknowledge that, except as expressly set forth above, after today, you will be entitled to
no other or further compensation, remuneration or benefits from Company, and any payments
made to you, as noted above, shall, of course, be less all applicable taxes and other
deductions required by law.

	 	12.	 	You agree that you will return to the Company any and all Company property in your
possession, including, but not limited to, software programs, other Company equipment,
tools, technical materials, client lists, marketing information, pricing information,
cellular phones, PDA/BlackBerry, personnel materials or files, handbooks, manuals,
policies, memoranda, notes, and drafts thereof, and any other documents or property (and
any summaries, excerpts or copies thereof), unfinished versions or reproductions of any
items developed by you and/or obtained by you or on your behalf, directly or indirectly,
pursuant to your employment with the Company. You may keep the Company-issued iPhone and
laptop computer, but must remove all Company property before the termination date.

	 	13.	 	You acknowledge that this Agreement is a full and accurate embodiment of the
understanding between the parties and that it supersedes any prior agreements or
understandings made by the parties, except the Severance Agreement (including but not
limited to the Non-Competition, Non-Disparagement, Non-Solicitation of Employees and
Litigation and Regulatory Cooperation provisions of the Severance Agreement), which will
remain in effect subsequent to the execution of this Agreement. (The Severance Agreement
is attached hereto.) The terms of this Agreement may not be modified, except
by mutual consent of the parties. Any and all modifications must be reduced to writing and
signed by the parties to be effective.

 

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	 	14.	 	In keeping with our intent to allow for an amicable separation, and in consideration of
the consideration being provided to you, you release the Company of and from any and all
claims, causes of action, demands, obligations, agreements, promises, liability, damages,
costs and/or fees arising out of or relating to your employment, including your separation
from employment, to the greatest extent permitted under the applicable law. By this
paragraph, you are waiving any claims which may exist against the Company, DiamondRock
Hospitality Limited Partnership, any other members of the DiamondRock Group (as defined in
the Severance Agreement), their directors, officers, employees, attorneys, agents, insurers
and all other related or affiliated persons, firms or entities (the “Releasees”). This
includes all rights and obligations under any federal, state or local laws pertaining to
employment, including, but not limited to, all employment discrimination laws, such as the
Age Discrimination in Employment Act, the Older Workers Benefit Protection Act, Title VII
of the Civil Rights Act of 1964, the Americans with Disabilities Act, the Civil Rights Act
of 1866, the Civil Rights Act of 1991, the Employee Retirement Income Security Act (ERISA),
the National Labor Relations Act, the health benefit provisions of the Consolidated Omnibus
Budget Reconciliation Act (COBRA, or its Maryland state law counterpart (Maryland Insurance
Law Article § 15-409, and the Code of Maryland Regulations (COMAR) § 31.11.04), the
Maryland Human Relations Commission Act (MHRCA) — Maryland State Government Code, §§
20-101 et seq., any regulations thereunder, and any human rights law of any Maryland county
or municipality, the Maryland Statutory Provision Regarding Retaliation/Discrimination for
Filing a Workers’ Compensation Claim — Md. Labor & Employment Code § 9-1105, the Maryland
Equal Pay Law — Md. Labor & Employment Code § 3-301 et seq., the Maryland Adoption Leave
Law — Md. Labor & Employment Code §§ 3-801 and 3-802, Maryland Medical Information Bias
Law — Md. Labor & Employment Code § 5-604, the Maryland Military Leave Law — Md. Public
Safety Code § 13-705, the Maryland law protecting witnesses, jurors and victims who attend
court proceedings, Md. Courts and Judicial Proceedings Code §§ 8-105, 9-205, the Maryland
Day of Rest Law — Md. Labor & Employment Code § 3-704, the Maryland Wage and Hour Laws —
Md. Labor & Employment Code §§ 3-401 et seq. and 3-501 et seq., Maryland Occupational
Safety & Health Act, as amended — Md. Labor & Employment Code § 5-101 et seq., the
Maryland Flexible Leave Act, Md. Labor & Employment Code § 3-801 et seq., the Maryland Pay
Disparity Act, Md. Labor & Employment Code § 3-305, retaliatory discharge, breach of
employment contract, conspiracy, fraud, negligence (including negligent hiring and
retention), prima facie tort, defamation, negligent or intentional infliction of emotional
distress, implied contracts or implied covenants of good faith and fair dealing, and any
and all other federal, state and local statutes, cases, authorities or laws (including
common law) providing a cause of action that can be the subject of a release under
applicable law. THIS IS A GENERAL RELEASE. Nothing in this release shall be construed to
waive any claims that cannot be waived as a matter of law or to waive any right to file an
administrative charge that cannot be waived as a matter of law. This general release does
not waive any rights or claims that may arise after the date the waiver is
executed. Furthermore, nothing in this paragraph will affect the ability of either party to
enforce rights or entitlements specifically provided for under this Agreement as set forth
above. Naturally, the Company’s obligations under this Agreement are contingent upon your
compliance with all terms and conditions provided for herein. A legal challenge to the
validity of your release of claims under the Age Discrimination in Employment Act in this
Agreement will not be considered a breach of this Agreement; provided, however, that the
severance benefits paid to you under this Agreement may serve as restitution, recoupment,
and/or setoff in the event you prevail on the merits of such claim.

 

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	 	15.	 	You acknowledge and agree that, as a condition of this Agreement, you expressly release
all rights and claims against the Company that you know about as well as those claims you
may not know about. For the purpose of implementing a full and complete release and
discharge of the Releasees, you expressly acknowledge that this Agreement is intended to
include and does include in its effect, without limitation, all claims which you do not
know or suspect to exist in you against the Releasees, and that this Agreement contemplates
the extinguishment of any such claim or claims.

	 	16.	 	You affirm that you have in the past and will continue to comply with your obligation
under paragraph 4 of your Severance Agreement dated March 9, 2007, related to
Non-Disparagement. That agreement provides as follows: “The Executive agrees that he/she
will not, whether during or after the Executive’s employment with the REIT, make any
statement, orally or in writing, regardless of whether such statement is truthful, nor take
any action, that (a) in any way could disparage the DiamondRock Group or any officers,
executives, directors, partners, managers, members, principals, employees, representatives,
or agents of the DiamondRock Group, or which foreseeably could or reasonably could be
expected to harm the reputation or goodwill of any of those persons or entities, or (b) in
any way, directly or indirectly, could knowingly cause, encourage or condone the making of
such statements or the taking of such actions by anyone else.”

	 	17.	 	This Agreement will be interpreted and enforced in accordance with Maryland law.

	 	18.	 	If any covenant or provision of this Agreement is determined to be invalid, illegal or
incapable of being enforced by reason of any rule of law, administrative order, judicial
decision or public policy, that covenant or provision shall be deemed stricken, and all
other covenants and provisions in this Agreement shall, nevertheless, remain in full force
and effect.

	 	19.	 	To the extent that the payments or benefits being provided under this Agreement would
have the potential to trigger any penalty under Section 409A of the Internal Revenue Code,
the Company shall refrain from making any payment hereunder before the date that is six (6)
months after the date you separate from service, as necessary to avoid incurring any
penalty under Section 409A.

	 	20.	 	In accordance with Section 8(e) of the Severance Agreement, you agree to comply with
Section 8(e) of the Severance Agreement.

 

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Please read the above carefully, and seek counsel from family members, friends, or attorneys
if you believe it is appropriate. If you need clarification of any of the above provisions, please
let me know.

In accordance with the Older Workers Benefits Protection Act, we will hold this offer open for
twenty-one (21) days from the date of this Agreement, although we would hope to conclude this
matter as quickly as possible. In addition, you may revoke this Agreement at any time within seven
(7) days after it is signed by you. Any revocation must be in writing and delivered to the Company
within eight (8) days of signing this Agreement to be effective. Any revocations should be
transmitted to Sean Mahoney, Executive Vice President, Chief Financial Officer and Treasurer, at
fax 240.744.199 or e-mail SMahoney@drhc.com Because of your right to revoke this Agreement, it
shall not become effective until the eighth (8th) day after it has been signed, and you
will not be paid any severance pay due you under this Agreement until after the eighth
(8th) day after you sign this document. The waiver of rights and claims under the ADEA
does not extend to any rights or claims arising after you execute this Agreement. You are advised
to consult with counsel regarding the terms of this Agreement.

Your signature below will confirm that you are entering into this Agreement voluntarily and
with a full understanding of all of the above terms. In addition, once signed, this letter will
set forth the entire agreement between the Company and you. It will supersede any previous
agreements or discussions concerning your employment or the termination thereof. No changes in
this Agreement will be valid unless in writing and signed by both parties.

Even if this proposal is not acceptable, we nevertheless intend to proceed with the
termination of your employment. In that event, you will not be entitled to severance pay or any of
the other benefits or compensation stated above (other than that which we are required by law to
provide). Moreover, we will not implement the terms of this Agreement, or begin paying you any of
the benefits offered, until we receive a signed copy of the Agreement back from you and the seven
day revocation period has passed.

 

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Please let me know if you have any questions. I wish you the best of success and personal and
professional fulfillment in the future.

	 	 	 	 	 
	 	Sincerely,

 	 
	 	/s/ Mark W. Brugger
 	 
	 	Mark W. Brugger 	 

I HAVE READ THE FOREGOING OFFER AND I FULLY UNDERSTAND ITS TERMS. I AM SIGNING THIS AGREEMENT
FREELY AND VOLUNTARILY, HAVING BEEN GIVEN A FULL AND FAIR OPPORTUNITY TO CONSIDER IT AND CONSULT
WITH ATTORNEYS OR ADVISORS OF MY CHOICE.

AGREED AND ACCEPTED:

	 	 	 	 	 
	/s/ Michael D. Schecter

	 	 	 	December 16, 2009
	 

	 	 	 	 
	Michael D. Schecter

	 	 	 	Date

 

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ATTACHMENT

 

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SEVERANCE AGREEMENT

THIS SEVERANCE AGREEMENT (the “Agreement”) is made this 9th day of March 2007, by
DiamondRock Hospitality Company, a Maryland corporation (the “REIT”), with its principal place of
business at 6903 Rockledge Drive, Suite 800, Bethesda, Maryland 20817 and Michael D. Schecter,
residing at 920 Independence Avenue, SE, Washington, DC 20003 (the “Executive”).

1. Purpose

The REIT considers it essential to the best interests of its stockholders to promote and
preserve the continuous employment of key management personnel. The Board of Directors of the REIT
(the “Board of Directors”) recognizes that, as in the case with many corporations, the possibility
of a termination of employment exists and that such possibility, and the uncertainty and questions
that it may raise among management, may result in the distraction of key management personnel to
the detriment of the REIT and its stockholders. Therefore, the Board of Directors has determined
that appropriate steps should be taken to reinforce and encourage the continued attention and
dedication of members of the REIT’s key management. Nothing in this Agreement shall be construed
as creating an express or implied contract of employment and, except as otherwise agreed in writing
between the Executive and the REIT, the Executive shall not have any right to be retained in the
employ of the REIT.

2. Definitions

(a) Accrued Salary. “Accrued Salary” shall mean accrued and unpaid base salary through the
Date of Termination. In addition, in the event the Executive’s annual bonus for the REIT’s most
recently completed fiscal year has not yet been paid to the Executive, then Accrued Salary also
shall include such prior fiscal year’s earned, accrued and unpaid bonus.

(b) Cause. “Cause” for termination shall mean a determination by the Board of Directors in
good faith that any of the following events has occurred: (i) indictment of the Executive of, or
the conviction or entry of a plea of guilty or nolo contendere by the Executive to any felony, or
any misdemeanor involving moral turpitude; (ii) the Executive engaging in conduct which constitutes
a material breach of a fiduciary duty or duty of loyalty, including without limitation,
misappropriation of funds or property of the REIT, DiamondRock Hospitality Limited Partnership (the
“Operating Partnership”) and their subsidiaries (the REIT, the Operating Partnership and their
subsidiaries are hereinafter referred to as the “DiamondRock Group”) other than an occasional and
de minimis use of Company property for personal purposes; (iii) the Executive’s willful failure or
gross negligence in the performance of his assigned duties for the DiamondRock Group, which failure
or gross negligence continues for more than 5 days following the Executive’s receipt of written or
electronic notice of such willful failure or gross negligence from the Board of Directors; (iv) any
act or omission of the Executive that has a demonstrated and material adverse impact on the
DiamondRock Group’s reputation for honesty and fair dealing or any other conduct of the Executive
that would reasonably be expected to result in injury to the reputation of the DiamondRock Group;
or (v) willful failure to cooperate with a bona fide internal investigation or an investigation by
regulatory or law
enforcement authorities, after being instructed by the REIT to cooperate, or the willful
destruction or failure to preserve documents or other materials known to be relevant to such
investigation or the willful inducement of others to fail to cooperate, destroy or fail to produce
documents or other materials.

 

 

 

For purposes of this Section 2(b), any act, or failure to act, based upon authority given
pursuant to a resolution duly adopted by the Board of Directors or based upon the written advice of
counsel for the DiamondRock Group shall be conclusively presumed to be done, or omitted to be done,
by the Executive in good faith and in the best interests of the DiamondRock Group. The cessation
of employment of the Executive shall not be deemed to be for Cause unless and until there shall
have been delivered to the Executive a copy of a resolution duly adopted by the affirmative vote of
the Board of Directors, finding that, in the good faith opinion of the Board of Directors, the
Executive has engaged in the conduct described in this Section 2(b); provided, that if the
Executive is a member of the Board of Directors, the Executive shall not vote on such resolution.

(c) Change in Control. “Change in Control” shall mean any of the following events:

	 	(i)	 	The conclusion of the acquisition (whether by a
merger or otherwise) by any Person (other than a Qualified Affiliate),
in a single transaction or a series of related transactions, of
Beneficial Ownership of more than 50 % of (1) the REIT’s outstanding
common stock (the “Common Stock”) or (2) the combined voting power of
the REIT’s outstanding securities entitled to vote generally in the
election of directors (the “Outstanding Voting
Securities”);

	 	(ii)	 	The merger or consolidation of the REIT with or
into any other Person other than a Qualified Affiliate, if the
directors immediately prior to the merger or consolidation cease to be
the majority of the Board of Directors at anytime within 12 months of
the completion of the merger or consolidation;

	 	(iii)	 	Any one or a series of related sales or
conveyances to any Person or Persons (including a liquidation or
dissolution) other than any one or more Qualified Affiliates of all or
substantially all of the assets of the REIT or the Operating
Partnership; or

	 	(iv)	 	Incumbent Directors cease, for any reason, to
be a majority of the members of the Board of Directors, where an
“Incumbent Director” is (1) an individual who is a member of the Board
of Directors on the effective date of this Agreement or (2) any new
director whose appointment by the Board of Directors or whose
nomination for election by the stockholders was approved by a majority
of the persons who were already Incumbent Directors at the time of such
appointment, election or approval, other than any
individual who assumes office initially as a result of an actual or
threatened election contest with respect to the election or removal
of directors or other actual or threatened solicitation of proxies or
consents by or on behalf of a Person other than the Board of
Directors or as a result of an agreement to avoid or settle such a
contest or solicitation.

 

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A Change in Control shall also be deemed to have occurred upon the completion of a tender
offer for the REIT’s securities representing more than 50% of the Outstanding Voting Securities,
other than a tender offer by a Qualified Affiliate.

For purposes of this definition of Change in Control, the following definitions shall apply:
(A) “Beneficial Ownership,” “Beneficially Owned” and “Beneficially Owns” shall have the meanings
provided in Exchange Act Rule 13d-3; (B) “Exchange Act” shall mean the Securities Exchange Act of
1934, as amended; (C) “Person” shall mean any individual, entity, or group (within the meaning of
Section 13(d)(3) or 14(d)(2) of the Exchange Act), including any natural person, corporation,
trust, association, company, partnership, joint venture, limited liability company, legal entity of
any kind, government, or political subdivision, agency or instrumentality of a government, as well
as two or more Persons acting as a partnership, limited partnership, syndicate or other group for
the purpose of acquiring, holding or disposing of the REIT’s securities; and (D) “Qualified
Affiliate” shall mean (I) any directly or indirectly wholly owned subsidiary of the REIT or the
Operating Partnership; (II) any employee benefit plan (or related trust) sponsored or maintained by
the REIT or the Operating Partnership or by any entity controlled by the REIT or the Operating
Partnership; or (III) any Person consisting in whole or in part of the Executive or one or more
individuals who are then the REIT’s Chief Executive Officer or any other named executive officer
(as defined in Item 402 of Regulation S-K under the Securities Act of 1933) of the REIT as
indicated in its most recent securities filing made before the date of the transaction.

(d) Date of Termination. “Date of Termination” shall mean the actual date of the Executive’s
termination of employment with the REIT.

(e) Disability. “Disability” shall mean if the Executive is unable to engage in any
substantial gainful activity by reason of any medically determinable physical or mental impairment
which can be expected to result in death or can be expected to last for a continuous period of not
less than 12 months.

(f) Good Reason. “Good Reason” for termination shall mean the occurrence of one of the
following events, without the Executive’s prior written consent, provided such event is not
corrected within 15 days following the Board of Director’s receipt of written or electronic notice
of such event: (i) a material diminution in the Executive’s duties or responsibilities or any
material demotion from the Executive’s current position at the REIT, including, without limitation:
(A) if the Executive is the CEO, either discontinuing his direct reporting to the Board of
Directors or a committee thereof or discontinuing the direct reporting to the CEO by each of the
senior executives responsible for finance, legal, acquisition and operations or (B) if the
Executive is not the CEO, discontinuing the Executive reporting directly to the CEO or (C) if the
Executive is the Chief

 

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Accounting
Officer, discontinuing the Executive’s reporting directly to the Chief Financial Officer or to the Chief Executive
Officer; (ii) if the Executive is a member of the Board of Directors, the failure of the REIT or
its affiliates to nominate the Executive as a Director of the REIT; (iii) a requirement that the
Executive work principally from a location outside the 50 mile radius from the REIT’s address,
except for required travel on the REIT’s business to the extent substantially consistent with the
Executive’s business travel obligations on the date hereof; (iv) failure to pay the Executive any
compensation, benefits or to honor any indemnification agreement to which the Executive is entitled
within 30 days of the date due; or (v) the occurrence of any of the following events or conditions
in the year immediately following a Change in Control: (A) a reduction in the Executive’s annual
base salary or annual bonus opportunity as in effect immediately prior to the Change in Control;
(B) the failure of the REIT to obtain an agreement, reasonably satisfactory to the Executive, from
any successor or assign of the REIT to assume and agree to adopt this Agreement for a period of at
least two years from the Change in Control.

(g) Restricted Period. The “Restricted Period” shall mean, the Executive’s employment with the
REIT, which period may be extended for an additional period of 12 months if the Executive is
entitled to, and receives, the Cash Severance specified under Section 3(b)(2) hereof.

(h) Retirement. As used in this Agreement, “Retirement” shall mean a retirement by the
Executive if the Executive has been designated as an eligible retiree by the Board of Directors, in
the Board’s sole discretion.

3. Effect of Termination

(a) Any Termination. If the Executive’s employment with the REIT terminates for any reason,
the Executive shall be entitled to any Accrued Salary. The Executive shall have no rights or
claims against the DiamondRock Group except to receive the payments and benefits described in this
Section 3. The REIT shall have no further obligations to Executive except as otherwise expressly
provided under this Agreement, provided any such termination shall not adversely affect or alter
Executive’s rights under any employee benefit plan of the REIT in which Executive, at the Date of
Termination, has a vested interest, unless otherwise provided in such employee benefit plan or any
agreement or other instrument attendant thereto.

None of the benefits described in this Section 3 (other than Accrued Salary) will be payable
unless the Executive has signed a general release which has become irrevocable, satisfactory to the
REIT in the reasonable exercise of its discretion, releasing the DiamondRock Group, its affiliates
including the REIT, and their officers, directors and employees, from any and all claims or
potential claims arising from or related to the Executive’s employment or termination of
employment. In addition, the benefits described in this Section 3 (other than Accrued Salary) are
conditioned upon the Executive’s ongoing compliance with his/her restrictions, covenants and
promises under Sections 4, 5, 6 and 7 below (as applicable).

 

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In addition, in the event the Executive’s termination of employment occurs in connection with
or following a Change in Control, then:

	 	(i)	 	In the event that any payment made pursuant to
Section 3 hereof or any insurance benefits, accelerated vesting,
pro-rated bonus or other benefit payable to the Executive under this
Agreement or otherwise (the “Severance Payments”), (1) constitute
“parachute payments” within the meaning of Section 280G (as it may be
amended or replaced) of the Internal Revenue Code of 1986, as amended
(the “Code”) (“Parachute Payments”); (2) are subject to the excise tax
imposed by Section 4999 (as it may be amended or replaced) of the Code
(the “Excise Tax”); and (3) exceed the Threshold Amount by 10% or more,
then the REIT shall pay to the Executive an additional amount (the
“Gross-Up Amount”) such that the net benefits retained by the Executive
after the deduction of the Excise Tax (including interest and
penalties) and any federal, or local income and employment taxes
(including interest and penalties) upon the Gross-Up Amount shall be
equal to the benefits that would have been delivered hereunder had the
Excise Tax not been applicable and the Gross-Up Amount not been
paid.

	 	(ii)	 	In the event that the Severance Payments (1)
constitute Parachute Payments; (2) are subject to the Excise Tax; and
(3) exceed the Threshold Amount by less than 10%, then the benefits
payable under this Agreement shall be reduced (but not below zero) to
the extent necessary so that the Severance Payments shall not exceed
the Threshold Amount. To the extent that there is more than one method
of reducing the Severance Payments to bring them within the Threshold
Amount, Executive shall determine which method shall be followed;
provided that if Executive fails to make such determination within 15
days after the REIT has sent Executive written notice of the need for
such reduction, the REIT may determine the amount of such reduction in
its sole discretion.

	 	(iii)	 	“Threshold Amount” shall mean three times
Executive’s “base amount” within the meaning of Section 280G(b)(3) of
the Code and the regulations promulgated thereunder less one dollar
($1.00).

	 	(iv)	 	For purposes of determining the Gross-Up
Amount: (1) Parachute Payments provided under arrangements with the
Executive other than under any bonus or other incentive pay or stock
plan or program of the REIT (collectively, the “Plan”) and this
Agreement, if any, shall be taken into account in determining the total
amount of Parachute Payments received by the Executive so that the
amount of excess Parachute Payments that are attributable to provisions
of the Plan and Agreement is maximized; and (2) the Executive shall be
deemed to pay federal, state and local income taxes at the highest
marginal rate of taxation for the Executive’s taxable year in which the
Parachute Payments are includable in the
Executive’s income for purposes of federal, state and local income
taxation.

 

A-5

 

	 	(v)	 	The determination of whether the Excise Tax is
payable, the amount thereof, and the amount of any Gross-Up Amount
shall be made in writing in good faith by a nationally recognized
independent certified public accounting firm selected by the REIT and
approved by the Executive, such approval not to be unreasonably
withheld (the “Accounting Firm”). If such determination is not finally
accepted by the Internal Revenue Service (or state or local revenue
authorities) on audit, then appropriate adjustments shall be computed
based upon the amount of Excise Tax and any interest or penalties so
determined; provided, however, that the Executive in no event shall owe
the REIT any interest on any portion of the Gross-Up Amount that is
returned to the REIT. For purposes of making the calculations required
by this Section 3(a)(v), to the extent not otherwise specified herein,
reasonable assumptions and approximations may be made with respect to
applicable taxes and reasonable, good faith interpretations of the Code
may be relied upon. The REIT and the Executive shall furnish such
information and documents as may be reasonably requested in connection
with the performance of the calculations under this Section 3(a)(v).
The REIT shall bear all costs incurred in connection with the
performance of the calculations contemplated by this Section 3(a)(v).
The REIT shall pay the Gross-Up Amount to the Executive no later than
60 days following receipt of the Accounting Firm’s determination of the
Gross-Up Amount.

(b) Termination by the REIT without Cause or by Executive for Good Reason. If the REIT
terminates the Executive’s employment without Cause, or the Executive terminates his employment for
Good Reason, then in addition to the benefits under Section 3(a) above, the Executive shall be
entitled to receive the following:

	 	(i)	 	a pro-rata bonus for the fiscal year determined
through the Date of Termination and calculated based on the target
bonus for such fiscal year;

	 	(ii)	 	an amount equal to (A) two times (B) the sum of
(I) the Executive’s base salary in effect immediately prior to the Date
of Termination, and (II) the Executive’s target annual bonus
(collectively, the “Cash Severance”);

 

A-6

 

	 	(iii)	 	continued payment by the REIT for health
insurance coverage for the Executive and the Executive’s spouse and
dependents for 18 months, consistent with COBRA following the Date of
Termination to the same extent that the REIT paid for such
coverage immediately prior to the termination of the Executive’s
employment and subject to the eligibility requirements and other
terms and conditions of such insurance coverage, provided that if any
such insurance coverage shall become unavailable and/or the REIT’s
insurer refuses to continue coverage during the 18 month period, the
REIT thereafter shall be obliged only to pay to the Executive an
amount which, after reduction for income and employment taxes, is
equal to the preexisting employer premiums for such insurance for the
remainder of such severance period.

	 	(iv)	 	vesting as of the Date of Termination of 100%
of all unvested time-based restricted stock awards, to the extent
permitted by law. The treatment of equity compensation awards that are
not time based vesting (such as restricted stock which vests based on
one or more performance metrics) granted after the effective date of
this agreement will be specified in individual grant agreements
covering such awards.

(c) Termination In the Event of Death or Disability. If the Executive’s employment terminates
because of the Executive’s death or Disability, then in addition to the benefits under Section 3(a)
above, the Executive (or his estate or other legal representatives, as the case may be) shall be
entitled to receive:

	 	(i)	 	a pro-rata bonus for the fiscal year determined
through the Date of Termination and calculated based on the target
bonus for such fiscal year;

	 	(ii)	 	continued payment by the REIT for health
insurance coverage for the Executive and the Executive’s spouse and
dependents for 18 months, consistent with COBRA, following the Date of
Termination to the same extent that the REIT paid for such coverage
immediately prior to the termination of the Executive’s employment and
subject to the eligibility requirements and other terms and conditions
of such insurance coverage, provided that if any such insurance
coverage shall become unavailable and/or the REIT’s insurer refuses to
continue coverage during the 18 month period, the REIT thereafter shall
be obliged only to pay to the Executive an amount which, after
reduction for income and employment taxes, is equal to the preexisting
employer premiums for such insurance for the remainder of such
severance period.

	 	(iii)	 	vesting as of the Date of Termination of 100%
of all unvested time-based restricted stock awards, to the extent
permitted by law. The treatment of equity compensation awards that are
not time based vesting (such as restricted stock which vests based on
one or more performance metrics) granted after the effective date of
this
agreement will be specified in individual grant agreements covering
such awards.

 

A-7

 

(d) Termination In the Event of Retirement. If the Executive’s employment terminates because
of his Retirement, then in addition to the benefits under Section 3(a) above, the Executive shall
be entitled to receive the following:

	 	(i)	 	a pro-rata bonus for the fiscal year determined
through the Date of Termination and calculated based on the target
bonus for such fiscal year; and

	 	(ii)	 	notwithstanding the Retirement by the
Executive, all unvested time-based restricted stock awards shall
continue to vest at the times and on the terms as set forth in the
relevant restricted stock award agreements as if the Executive remained
continuously employed by the REIT from the Date of Termination through
each such vesting date. The treatment of non-time-based equity
compensation awards (such as restricted stock which vests based on one
or more performance metrics) granted after the effective date of this
agreement will be specified in individual grant agreements covering
such awards.

4. Non-Disparagement

The Executive agrees that he/she will not, whether during or after the Executive’s employment
with the REIT, make any statement, orally or in writing, regardless of whether such statement is
truthful, nor take any action, that (a) in any way could disparage the DiamondRock Group or any
officers, executives, directors, partners, managers, members, principals, employees,
representatives, or agents of the DiamondRock Group, or which foreseeably could or reasonably could
be expected to harm the reputation or goodwill of any of those persons or entities, or (b) in any
way, directly or indirectly, could knowingly cause, encourage or condone the making of such
statements or the taking of such actions by anyone else.

5. Non-Competition

(a) Non-Competition. Subject to Section 5(b) hereof, the Executive agrees that during the
Restricted Period the Executive shall not, without the prior express written consent of the REIT,
directly or indirectly, anywhere in the United States, own an interest in, join, operate, control
or participate in, or be connected as an owner, officer, executive, employee, partner, member,
manager, shareholder, or principal of or with, any lodging-oriented real estate investment company.
Notwithstanding the foregoing, the Executive may own up to one percent (1%) of the outstanding
stock of a real estate investment company. The restrictions of this Section 5(a) shall not apply
if the Executive’s employment with the REIT is terminated for any reason by the Company or the
Executive effective during the 12 month period immediately following a Change in Control.

 

A-8

 

(b) Board’s Discretion. Notwithstanding anything contained herein, the Board of Directors
retains the right, in its sole discretion, to shorten or eliminate the post-employment Restricted
Period for any Executive.

6. Non-Solicitation of Employees. The Executive agrees that while he/she is employed as an
employee of the REIT and for a period of 12 months after the termination of the Employee’s
employment with the REIT for whatever reason, the Employee shall not, without the express written
consent of the REIT, hire, solicit, recruit, induce or procure (or assist or encourage any other
person or entity to hire, solicit, recruit, induce or procure), directly or indirectly or on behalf
of himself or any other person or entity, any officer, executive, director, partner, principal,
member, or non-clerical employee of the DiamondRock Group or any person who was an officer,
executive, director, partner, principal, member, or non-clerical employee of the DiamondRock Group
at any time during the final year of the Executive’s employment with the REIT, to work for the
Executive or any person or entity with which the Executive is or intends to be affiliated or
otherwise directly or indirectly encourage any such person to terminate his or her employment or
other relationship with the DiamondRock Group without the prior express written consent of the
REIT. Notwithstanding anything contained herein, the foregoing shall not restrain the Executive
from hiring, soliciting, recruiting, inducing or procuring any person to work for the Executive or
any person or entity with which the Executive is or intends to be affiliated if such person was
either terminated by the REIT or such person resigned for Good Reason. In addition, the Board of
Directors retains the right, in its sole discretion, to release any Executive from its obligations
under this Section.

7. Injunctive Relief. The Executive understands that the restrictions contained in Section 4,
5 and 6 of this Agreement are intended to protect the REIT’s interests in its proprietary
information, goodwill, and its employee and investor relationships, and agrees that such
restrictions (and the scope and duration thereof) are necessary, reasonable and appropriate for
this purpose. The Executive acknowledges and agrees that it would be difficult to measure any
damages caused to the REIT which might result from any breach by the Executive of his promises and
obligations under Sections 4, 5 and/or 6, that the REIT would be irreparably harmed by such breach,
and that, in any event, money damages would be an inadequate remedy for any such breach.
Therefore, the Executive agrees and consents that the REIT shall be entitled to an injunction or
other appropriate equitable relief (in addition to all other remedies it may have for damages or
otherwise) to restrain any such breach or threatened breach without showing or proving any actual
damage to the REIT; and the REIT shall be entitled to an award of its attorneys fees and costs
incurred in enforcing the Executive’s obligations under Sections 4, 5 and/or 6.

8. Miscellaneous

(a) 409A. Notwithstanding anything to the contrary, if the Executive is a “key employee” (as
defined in Section 416(i) of the Code without regard to paragraph (5) thereof) and any of the
REIT’s stock is publicly traded on an established securities market or otherwise, to the extent
necessary to avoid any penalties under Section 409A of the Code, any payment hereunder may not be
made before the date that is six months after the date of separation from service.

 

A-9

 

(b) Tax Withholding. All payments made by the REIT under this Agreement shall be net of any
tax or other amounts required to be withheld by the REIT under applicable law.

(c) No Mitigation. The REIT agrees that, if the Executive’s employment by the REIT is
terminated during the term of this Agreement, the Executive is not required to seek other
employment or to attempt in any way to reduce any amounts payable to the Executive by the REIT
pursuant to Section 3 hereof. Further, the amount of any payment provided for in this Agreement
shall not be reduced by any compensation earned by the Executive as the result of employment by
another employer, by retirement benefits, by offset against any amount claimed to be owed by the
Executive to the REIT or otherwise.

(d) No Offset. The REIT’s obligation to make the payments provided for in this Agreement and
otherwise perform its obligations hereunder shall not be affected by any circumstances, including,
without limitation, any set-off, counterclaim, recoupment, defense or other right which the REIT,
the Operating Partnership or any of their subsidiaries may have against the Executive or others
unless such set-off, counterclaim, recoupment, defense, or other right arises from the Executive
engaging in conduct which constitutes a material breach of a fiduciary duty or duty of loyalty,
including without limitation, misappropriation of funds or property of the Operating Partnership
and their subsidiaries.

(e) Litigation and Regulatory Cooperation. During and after Executive’s employment, Executive
shall reasonably cooperate with the REIT in the defense or prosecution of any claims or actions now
in existence or which may be brought in the future against or on behalf of the REIT which relate to
events or occurrences that transpired while Executive was employed by the REIT; provided, however,
that such cooperation shall not materially and adversely affect Executive or expose Executive to an
increased probability of civil or criminal litigation. Executive’s cooperation in connection with
such claims or actions shall include, but not be limited to, being available to meet with counsel
to prepare for discovery or trial and to act as a witness on behalf of the REIT at mutually
convenient times. During and after Executive’s employment, Executive also shall cooperate fully
with the REIT in connection with any investigation or review of any federal, state or local
regulatory authority as any such investigation or review relates to events or occurrences that
transpired while Executive was employed by the REIT. The REIT shall also provide Executive with
compensation on an hourly basis (to be derived from the sum of his Base Salary and average annual
incentive compensation) for requested litigation and regulatory cooperation that occurs after his
termination of employment, and reimburse Executive for all costs and expenses incurred in
connection with his performance under this Section 8(e), including, but not limited to, reasonable
attorneys’ fees and costs.

 

A-10

 

(f) Notices. All notices required or permitted under this Agreement shall be in writing and
shall be deemed effective (i) upon personal delivery, (ii) upon deposit with the United States
Postal Service, by registered or certified mail, postage prepaid, or (iii) in the case of facsimile
transmission or delivery by nationally recognized overnight delivery service, when received,
addressed as follows:

	 	(i)	 	If to the REIT, to:

DiamondRock Hospitality Company

6903 Rockledge Drive, Suite 800

Bethesda, MD 20817

Facsimile: (240) 744-1199

Attn: 1) Lead Director; 2) Chairman of the Board and 3) Chairman of
the Compensation Committee

	 	(ii)	 	If to the Executive, to:

Michael D. Schecter

920 Independence Avenue, SE

Washington, DC 20003-3918

or to such other address or addresses as either party shall designate to the other in writing from
time to time by like notice.

(g) Pronouns. Whenever the context may require, any pronouns used in this Agreement shall
include the corresponding masculine, feminine or neuter forms, and the singular forms of nouns and
pronouns shall include the plural, and vice versa.

(h) Entire Agreement. This Agreement constitutes the entire agreement between the parties and
supersedes all prior agreements and understandings, whether written or oral, relating to the
subject matter of this Agreement, including without limitation the employment agreement dated as of
June 4, 2004. For the avoidance of doubt, such employment agreement is hereby terminated and the
Executive hereby waives any rights that he may have under such agreement.

(i) Amendment. This Agreement may be amended or modified only by a written instrument
executed by both the REIT and the Executive.

(j) Governing Law and Forum. This Agreement shall be construed, interpreted and enforced in
accordance with the laws of the State of Maryland, without regard to its conflicts of laws
principles, by a court of competent jurisdiction located within the State of Maryland.

(k) Successors and Assigns. This Agreement shall be binding upon and inure to the benefit of
both parties and their respective successors and assigns, including any entity with which or into
which the REIT may be merged or which may succeed to its assets or business or any entity to which
the REIT may assign its rights and obligations under this Agreement; provided, however, that the
obligations of the Executive are personal and shall not be assigned or delegated by him.

(l) Waiver. No delays or omission by the REIT or the Executive in exercising any right under
this Agreement shall operate as a waiver of that or any other right. A waiver or consent given by
the REIT or the Executive on any one occasion shall be effective
only in that instance and shall not be construed as a bar or waiver of any right on any other
occasion.

 

A-11

 

(m) Captions. The captions appearing in this Agreement are for convenience of reference only
and in no way define, limit or affect the scope or substance of any section of this Agreement.

(n) Severability. In case any provision of this Agreement shall be held by a court or
arbitrator with jurisdiction over the parties to this Agreement to be invalid, illegal or otherwise
unenforceable, such provision shall be restated to reflect as nearly as possible the original
intentions of the parties in accordance with applicable law, and the validity, legality and
enforceability of the remaining provisions shall in no way be affected or impaired thereby. In the
event that any portion or provision of this Agreement (including, without limitation, any portion
or provision of Sections 4, 5, and/or 6) is determined by a court or arbitrator of competent
jurisdiction to be invalid, illegal or otherwise unenforceable by reason of excessive scope as to
geographic, temporal or functional coverage, such provision will be reformed and deemed to extend
only over the maximum geographic, temporal and functional scope as to which it may be enforceable
and shall be enforced by said court or arbitrator accordingly.

(o) Counterparts. This Agreement may be executed in two or more counterparts, each of which
shall be deemed an original but all of which together shall constitute one and the same instrument.

 

A-12

 

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

	 	 	 	 	 
	 	REIT

DIAMONDROCK HOSPITALITY COMPANY

 	 
	 	By:  	/s/ Michael D. Schecter
 	 
	 	 	Name:  	Michael D. Schecter 	 
	 	 	Title:  	Executive Vice President,
 General
Counsel and Corporate Secretary 	 
	 
	 	EXECUTIVE

MICHAEL D. SCHECTER

 	 
	 	/s/ Michael D. Schecter
 	 

 

A-13exv10w1

Exhibit 10.1

UNITED STATES DEPARTMENT OF THE TREASURY

1500 Pennsylvania Avenue, NW

Washington, D.C. 20220

December 16, 2009

Ladies and Gentlemen:

     Reference is made to that certain letter agreement (the “Repurchase Letter Agreement”), dated
as of the date set forth on Schedule A hereto, between the United States Department of the Treasury
(the “Investor”) and the company set forth on Schedule A hereto (the “Company”). Capitalized terms
used but not defined herein shall have the meanings assigned to them in the Repurchase Letter
Agreement.

     As documented by the Repurchase Letter Agreement, the Company has completed the repurchase
from the Investor of all of the Preferred Shares issued to the Investor pursuant to the Securities
Purchase Agreement. Following such time, the Company delivered a Warrant Repurchase Notice dated
as of the date set forth on Schedule A hereto to the Investor. In connection with the
consummation, on the date hereof, of the repurchase of the Warrant by the Company from the
Investor, as contemplated by the Warrant Repurchase Notice and Section 4.9 of the Securities
Purchase Agreement:

     (a) The Company hereby acknowledges receipt from the Investor of the Warrant;
and

     (b) The Investor hereby acknowledges receipt from the Company of a wire transfer to the
account of the Investor set forth on Schedule A hereto in immediately available funds of the
aggregate purchase price set forth on Schedule A hereto, representing payment in full for
the Warrant, determined in accordance with Section 4.9 of the Securities Purchase Agreement.

     This letter agreement will be governed by and construed in accordance with the federal law of
the United States if and to the extent such law is applicable, and otherwise in accordance with the
laws of the State of New York applicable to contracts made and to be performed entirely within such
State.

     This letter agreement may be executed in any number of separate counterparts, each such
counterpart being deemed to be an original instrument, and all such counterparts will together
constitute the same agreement. Executed signature pages to this letter agreement may be delivered
by facsimile and such facsimiles will be deemed sufficient as if actual signature pages had been
delivered.

UST Sequence No. 267

 

 

     In witness whereof, the parties have duly executed this letter agreement as of the date first
written above.

	 	 	 	 	 
	 	UNITED STATES DEPARTMENT OF 
THE TREASURY

 	 
	 	By:  	/s/ Herbert M. Allison, Jr.
 	 
	 	 	Name:  	Herbert M. Allison, Jr. 	 
	 	 	Title:  	Assistant Secretary for
Financial Stability 	 
	 
	 	COMPANY: LSB Corporation

 	 
	 	By:  	/s/ Gerald T. Mulligan
 	 
	 	 	Name:  	Gerald T. Mulligan 	 
	 	 	Title:  	President & Chief Executive
Officer

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