Document:

EX-10.3

 

Exhibit 10.3

EMPLOYMENT AGREEMENT

     THIS AGREEMENT, dated as of February 25, 2008, by and between GAYLORD ENTERTAINMENT COMPANY, a
Delaware corporation having its corporate headquarters at One Gaylord Drive, Nashville, Tennessee
37214 (“the Company”) and ___, a resident of Nashville, Tennessee (“Executive”).

Witnesseth:

     WHEREAS, the Company desires to employ Executive as its Senior Vice President, ___,
and Executive desires to serve in such capacity pursuant to the terms of this Agreement;

     NOW, THEREFORE, in consideration of the covenants and agreements hereinafter set forth, the
parties hereto agree as follows:

Agreement

     1. Employment; Term; Place of Employment. The Company hereby employs Executive, and
Executive hereby accepts employment with the Company upon the terms and conditions contained in
this Agreement. The term of Executive’s employment hereunder shall commence on February 4, 2008
(the “Effective Date”) and shall continue for a period of two (2) years from and after the
Effective Date (the “Initial Period”). For purposes of this Agreement, a “Contract Year” shall
mean a one year period commencing on the Effective Date or any anniversary thereof. This Agreement
shall automatically renew for two (2) year terms (each referred to as an “Extension Period”) (the
Initial Period and each Extension Period collectively referred to as the “Employment Period”)
unless either party notifies the other party at least ninety (90) days prior to the expiration of
the Initial Period or any Extension Period. Executive shall render services at the offices
established by the Company in the greater Nashville metropolitan area; provided that Executive
agrees to travel on temporary trips to such other places as may be required to perform Executive’s
duties hereunder.

2. Duties; Title.

     (a) Description of Duties.

     (i) During the Employment Period, Executive shall serve the Company as its
Senior Vice President, ___, and report directly to the Chief Executive
Officer (“CEO”). Executive shall also perform such other duties as the CEO shall
reasonably determine.

     (ii) Executive shall faithfully perform the duties required of his office.
Subject to Section 2(b), Executive shall devote all of his business time and effort
to the performance of his duties to the Company.

     (b) Other Activities. Notwithstanding anything to the contrary contained in
Section 2(a), Executive shall be permitted to engage in the following activities, provided
that such activities do not materially interfere or conflict with Executive’s duties and
responsibilities to the Company:

 

 

     (i) Executive may serve on the governing boards of, or otherwise participate
in, a reasonable number of trade associations and charitable organizations, whose
purposes are not inconsistent with the activities and the image of the Company; and

     (ii) Executive may engage in a reasonable amount of charitable activities and
community affairs.

     (c) Other Policies. Executive shall be subject to and shall comply with all
codes of conduct, personnel policies and procedures applicable to senior executives of the
Company, including, without limitation, policies regarding sexual harassment, conflicts of
interest and insider trading.

     3. Cash Compensation.

     (a) Base Salary. During the initial Contract Year, the Company shall pay to
Executive an annual salary of $___. Executive’s annual salary shall be increased in
each subsequent Contract Year by a percentage equal to the annual percentage increase, if
any, generally granted to other senior executives, such percentage to be determined from
time to time by the Human Resources Committee of the Board of Directors (such annual salary,
together with any increases under this subsection (a), being herein referred to as the “Base
Salary”).

     (b) Annual Cash Bonus. Executive shall be eligible for an annual cash bonus
equal to a target of 50% of Executive’s Base Salary, up to a maximum of 100% of Base Salary,
(the “Annual Bonus”) to be paid to him in each calendar year and shall be determined based
on the achievement of certain goals and Company performance criteria as established by the
CEO and approved by the Board’s Human Resources Committee. The Annual Bonus for each
calendar year shall be paid to Executive on or before the end of February 28th of
the immediately succeeding year.

     (c) Withholding. The Base Salary and each Annual Bonus shall be subject to
applicable withholding and shall be payable in accordance with the Company’s payroll
practices.

     4. Benefits; Expenses; Etc.

     (a) Expenses. During the Employment Period, the Company shall reimburse
Executive, in accordance with the Company’s policies and procedures, for all reasonable
expenses incurred by Executive, including reimbursement for his reasonable first class
travel expenses in connection with the performance of his duties for the Company.

     (b) Vehicle Allowance. During the Employment Period, Executive shall be
entitled to receive from the Company a vehicle allowance of $1,000 per month, subject to
future increases as may be granted to senior executives.

     (c) Vacation. During the Employment Period, Executive shall be entitled to
four (4) weeks vacation during each Contract Year.

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     (d) Executive Financial Counseling; Physical. During the Employment Period,
the Company shall reimburse Executive for up to a maximum of $3,000 of financial counseling
expenses per year, upon submission of documentation evidencing such expenses. In addition,
during the Employment Period, the Company pay up to $3,000 per year for an annual physical
for Executive.

     (e) Company Plans. During the Employment Period, Executive shall be entitled
to participate in and enjoy the benefits of (i) the Company Health Insurance Plan, (ii) the
Company 401(k) Savings Plan, (iii) the Company Supplemental Deferred Compensation
(“SUDCOMP”) Plan, and (iv) any health, life, disability, retirement, pension, group
insurance, or other similar plan or plans which may be in effect or instituted by the
Company for the benefit of senior executives generally, upon such terms as may be therein
provided. Executive shall have continued coverage at employee rates for one (1) year after
the Employment Period under all health and welfare plans or substantially similar plans
including medical, dental, vision, life, disability and executive supplemental plans. After
such year of coverage, Executive shall be eligible for normal COBRA coverage.

     5. Termination. Executive’s employment hereunder may be terminated prior to the
expiration of the Employment Period as follows:

     (a) Termination by Death. Upon the death of Executive (“Death”), Executive’s
employment shall automatically terminate as of the date of Death.

     (b) Termination by Company for Permanent Disability. At the option of the
Company, Executive’s employment may be terminated by written notice to Executive or his
personal representative in the event of the Permanent Disability of Executive. As used
herein, the term “Permanent Disability” shall mean a physical or mental incapacity or
disability which renders Executive unable substantially to render the services required
hereunder for a period of ninety (90) consecutive days or one hundred eighty (180) days
during any twelve (12) month period as determined in good faith by the Company.

     (c) Termination by Company for Cause. At the option of the Company,
Executive’s employment may be terminated by written notice to Executive upon the occurrence
of any one or more of the following events (each, a “Cause”):

     (i) any action by Executive constituting fraud, self-dealing, embezzlement, or
dishonesty in the course of his employment hereunder;

     (ii) any conviction of Executive of a crime involving moral turpitude;

     (iii) failure of Executive after reasonable notice promptly to comply with any
valid and legal directive of the CEO;

     (iv) a material breach by Executive of any of his obligations under this
Agreement and failure to cure such breach within ten (10) days of his receipt of
written notice thereof from the Company; or

     (v) a failure by Executive to perform adequately his responsibilities under
this Agreement as demonstrated by objective and verifiable evidence showing that the
business operations under Executive’s control have been materially harmed as a
result of Executive’s gross negligence or willful misconduct.

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     (d) Termination by Executive for Good Reason. At the option of Executive,
Executive may terminate his employment by written notice to Company given within a
reasonable time after the occurrence of the following circumstances (“Good Reason”), unless
the Company cures the same within thirty (30) days of such notice:

     (i) Any adverse change by Company in the Executive’s position or title
described in Section 2 hereof, whether or not any such change has been approved by a
majority of the members of the Board;

     (ii) The assignment to Executive, over his reasonable objection, of any duties
materially inconsistent with his status as Senior Vice President,
______ or
a substantial adverse alteration in the nature of his responsibilities;

     (iii)
A reduction by Company in his annual base salary of $______ as the same
may be increased from time to time pursuant to Section 3(a) hereof;

     (iv) Company’s requiring Executive, without Executive’s approval, to be based
anywhere other than the Company’s headquarters in Nashville, Tennessee except for
required travel on the Company’s business;

     (v) The failure by Company, without Executive’s consent, to pay to him any
portion of his current compensation, except pursuant to this Agreement or pursuant
to a compensation deferral elected by Executive;

     (vi) Except as permitted by this Agreement, the failure by Company to continue
in effect any compensation plan (or substitute or alternative plan) in which
Executive is entitled to participate which is material to Executive’s total
compensation, or the failure by the Company to continue Executive’s participation
therein on a basis that is materially as favorable both in terms of the amount of
benefits provided and the level of Executive’s participation relative to other
participants at Executive’s grade level; or

     (vii) The failure by Company to continue to provide Executive with benefits
substantially similar to those enjoyed by senior executives under the Company’s
pension and deferred compensation plans, and the life insurance, medical, health and
accident, and disability plans in which Executive is entitled to participate, except
as required by law, or the taking of any action by the Company which would directly
or indirectly materially reduce any of such benefits or deprive Executive of any
material fringe benefit enjoyed by Executive, or the failure by the Company to
provide Executive with the number of paid vacation days to which Executive is
entitled; or

     (viii) A material breach by the Company of any of its obligations under this
Agreement or the failure to renew or giving notice of non-renewal of this Agreement,
as provided in Section 1, unless such non-renewal is due to termination by the
Company for Cause, as provided in Section 5(c).

     (e) Termination by Company Without Cause. At the option of the Company
Executive’s employment may be terminated by written notice to Executive at any time
(“Without Cause”).

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     6. Effect of Termination.

     (a) Effect Generally. If Executive’s employment is terminated during the
Employment Period, the Company shall not have any liability or obligation to Executive other
than as specifically set forth in Section 5, Section 6 and Section 7 hereof. Upon the
termination of Executive’s employment for any reason, he shall, upon the request of the
Company, resign from all corporate offices held by Executive.

     (b) Effect of Termination by Death. Upon the termination of Executive’s
employment as a result of Death, Executive’s estate shall be entitled to receive an amount
equal to: (i) accrued but unpaid Base Salary through the date of termination; (ii) a pro
rata portion of Executive’s Annual Bonus, if any, for the year in which termination occurs,
(iii) any unpaid portion of the Annual Bonuses for prior calendar years, accrued and unpaid
vacation pay, unreimbursed expenses incurred pursuant to Section 4(a), (b) or (e), and any
other benefits owed to Executive pursuant to any written employee benefit plan or policy of
the Company, excluding benefits payable pursuant to any plan beneficiary pursuant to a
contractual beneficiary designation by Executive, (iv) the portion of the Restricted Stock
Grant that is free from restrictions as of the date of death and the acceleration and
immediate release of all restrictions from all Restricted Stock Grants that are subject to
restrictions as of the date of death, (v) Executive’s vested Stock Options as of the date of
death, the vesting and exercise of which is governed by the Omnibus Plan; and (vi) all of
Executive’s Stock Options, which pursuant to the Omnibus Plan are accelerated as of the
termination date (date of death) and are exercisable until the expiration of the Stock
Option Term.

     (c) Effect of Termination for Permanent Disability. Upon the termination of
Executive’s employment hereunder as a result of Permanent Disability, Executive shall be
entitled to receive an amount equal to: (i) accrued but unpaid Base Salary through the date
of termination; (ii) a pro rata portion of Executive’s Annual Bonus, if any, for the year in
which termination occurs, (iii) any unpaid portion of an Annual Bonus for prior calendar
years, long-term disability benefits available to executives of the Company, accrued and
unpaid vacation pay, unreimbursed expenses incurred pursuant to Section 4(a), (b) or (e) and
any other benefits owed to Executive pursuant to any written employee benefit plan or policy
of the Company; (iv) the portion of the Restricted Stock Grant that is free from
restrictions as of the termination date; (v) Executive’s vested Stock Options as of the date
of termination, the vesting of which is governed by the Omnibus Plan; and (vi) all of
Executive’s Stock Options, which pursuant to the Omnibus Plan are accelerated as of the
termination date and are exercisable until the expiration of the Stock Option Term.
Payments to Executive hereunder shall be reduced by any payments received by Executive under
any worker’s compensation or similar law.

     (d) Effect of Termination by the Company for Cause or by Executive Without Good
Reason. Upon the termination of Executive’s employment by the Company for Cause or by
Executive for any reason other than Good Reason, Executive shall be entitled to receive an
amount equal to: (i) accrued but unpaid Base Salary through the date of termination, (ii)
any unpaid Annual Bonus for prior calendar years, accrued but unpaid vacation pay,
unreimbursed expenses incurred pursuant to Section 4(a), (b) or (e) and any other benefits
owed to Executive pursuant to any written employee benefit plan or policy of the Company;
and (iii) the portion of the Restricted Stock Grant that is free from restrictions as of the
termination date. All Stock Options, to the extent not theretofore exercised, shall
terminate on the date of termination of employment under this Section 6(d). Executive shall
also forfeit any right to an Annual Bonus for the calendar year in which Executive’s
termination occurs.

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     (e) Effect of Termination by the Company Without Cause or by Executive for Good
Reason. Upon the termination of Executive’s employment hereunder by the Company Without
Cause or by Executive for Good Reason, Executive shall be entitled to: (i) the payment of
one (1) times Executive’s Base Salary for the year in which such termination shall occur;
(ii) payment of one (1) times Executive’s Annual Bonus for the preceding year, (iii) any
unpaid portion of any Annual Bonus for prior calendar years and a prorated portion of any
bonus the Executive may earn as an Annual Bonus for the current year, accrued and unpaid
vacation pay, unreimbursed expenses incurred pursuant to Section 4(a), (b),or (e) and any
other benefits owed to Executive pursuant to any written employee benefit plan or policy of
the Company; (iv) the portion of the Restricted Stock Grant that is free from restrictions
as of the date of termination and the acceleration and immediate release of all restrictions
from any Restricted Stock Grant that is scheduled to vest during the one-year period
following the date of Executive’s termination; and (v) the vested portion of Executive’s
Stock Options, and the acceleration and immediate vesting of Executive’s unvested Stock
Options that were scheduled to vest during the one-year period following the date of
Executive’s termination. In the event such termination occurs prior to February 5, 2009,
then Executive will also receive the immediate vesting of 33% of Executive’s stock options
under the 2008 Long Term Incentive Plan. In addition, Executive shall also be entitled to a
pro rata share of his Restricted Stock Unit Grant under the 2008 Long Term Incentive Plan in
the event the performance targets for such award are eventually satisfied on February 4,
2012 or the award is otherwise vested via change of control or otherwise (for example, if
Executive were terminated two years into the four-year cliff vesting period, then Executive
would receive fifty percent (50%) of the award if eventually earned). Executive shall also
be entitled to continuation of his monthly car allowance during the one-year period
following the date of Executive’s termination. Executive shall have one (1) year from the
date of such termination Without Cause or by Executive for Good Reason to exercise all
vested Stock Options.

     7. Change of Control.

     (a) Definition. A “Change of Control” shall be deemed to have taken place if:

     (i) any person or entity, including a “group” as defined in Section 13(d)(3) of the
Securities Exchange Act of 1934, other than the Company, a wholly-owned subsidiary thereof,
or any employee benefit plan of the Company or any of its subsidiaries becomes the
beneficial owner of Company securities having 35% or more of the combined voting power of
the then outstanding securities of the Company that may be cast for the election of
directors of the Company (other than as a result of the issuance of securities initiated by
the Company in the ordinary course of business);

     (ii) individuals who, as of the date of this Amendment, were members of the Board (the
“Incumbent Board”) cease for any reason to constitute at least a majority of the members of
the Board; provided that any individual who becomes a director after such date whose
election or nomination for election by the Company’s shareholders was approved by two-thirds
of the members of the Incumbent Board (other than an election or nomination of an individual
whose initial assumption of office is in connection with an actual or threatened “election
contest” relating to the election of the directors of the Company (as such terms are used in
Rule 14a-11 under the Securities Exchange Act of 1934), “tender offer” (as such term is used
in Section 14(d) of the Securities Exchange Act of 1934) or a proposed transaction described
in clause (iii) below) shall be deemed to be members of the Incumbent Board.”.

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     (iii) as the result of, or in connection with, any cash tender or exchange offer,
merger or other business combination, sale of assets or contested election, or any
combination of the foregoing transactions, the holders of all the Company’s securities
entitled to vote generally in the election of directors of the Company immediately prior to
such transaction constitute, following such transaction, less than a majority of the
combined voting power of the then-outstanding securities of the Company or any successor
corporation or entity entitled to vote generally in the election of the directors of the
Company or such other corporation or entity after such transactions; or

     (iv) the Company sells all or substantially all of the assets of the Company.

     (b) Effect of Change of Control. In the event that within one (1) year
following a Change of Control, the Company terminates Executive Without Cause or Executive
terminates employment for Good Reason, Executive shall be entitled to: (i) the payment of
three (3) times Executive’s Base Salary for the year in which such termination shall occur;
(ii) the payment of three (3) times Executive’s highest Annual Bonus for preceding three
years; (iii) any unpaid portion of any Annual Bonus for prior calendar years, accrued and
unpaid vacation pay, unreimbursed expenses incurred pursuant to Section 4(a), (b),or (e) and
any other benefits owed to Executive pursuant to any written employee benefit plan or policy
of the Company; (iv) the portion of the Restricted Stock Grant that is free from
restrictions as of the date of termination and the acceleration and immediate release of all
restrictions from all Restricted Stock Grants that are subject to restrictions as of the
date of termination; (v) the vested portion of Executive’s Stock Options and the
acceleration and immediate vesting of any unvested portion of Executive’s Stock Options, and
(vi) three (3) years of continued $1,000 per month vehicle allowance, $3,000 per year
financial planning assistance, and $3,000 per year executive physical. Executive shall have
three (3) years from the date of such termination to exercise all vested Stock Options. In
this case, Executive shall also have continued coverage at employee rates for three (3)
years after the Employment Period under all health and welfare plans or substantially
similar plans including medical, dental, vision, life, disability and executive supplemental
plans. At the end of such three (3) years of coverage, Executive shall be eligible for
normal COBRA coverage.

     8. Excise Tax Reimbursement. In connection with or arising out of a Change in Control
of the Company, in the event Executive shall be subject to the tax imposed by Section 4999 of the
Code (the “Excise Tax”) in respect of any payment or distribution by the Company or any other
person or entity to or for Executive’s benefit, whether paid or payable or distributed or
distributable pursuant to the terms of this Agreement or otherwise, or whether prior to or
following any termination of Executive other than Termination for Cause or By Executive without
Good Reason (a “Payment”), the Company shall pay to Executive an additional amount. The additional
amount (the “Gross-Up Payment”) shall be equal to the Excise Tax, together with any federal, state
and local income tax, employment tax and any other taxes associated with this payment such that
Executive incurs no out-of-pocket expenses associated with the Excise Tax. Provided, however,
nothing in this Section shall obligate the Company to pay Executive for any federal, state or local
income taxes imposed upon Executive by virtue of a Payment. For purposes of determining whether
any of the Payments will be subject to the Excise Tax and the amount of such Excise Tax the
following will apply:

     (a) Determination of Parachute Payments. Any payments or benefits received or
to be received by Executive in connection with a Change in Control of the Company or his
termination of employment other than by the Company for Cause or by Executive Without Good
Reason shall be treated as “parachute payments” within the meaning of Section

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280G(b)(2) of the Code, and all “excess parachute payments” within the meaning of
Section 280G(b)(1) shall be treated as subject to the Excise Tax, unless in the opinion of
tax counsel selected by the Company’s independent auditors and acceptable to Executive such
other payments or benefits (in whole or in part) do not constitute parachute payments, or
such excess parachute payments (in whole or in part) represent reasonable compensation for
services actually rendered within the meaning of Section 280G(b)(3) of the Code, or are
otherwise not subject to the Excise Tax; and

     (b) Valuation of Benefits and Determination of Tax Rates. The value of any
non-cash benefits or any deferred payment or benefit shall be determined by the Company’s
independent auditors in accordance with proposed, temporary or final regulations under
Section 280G(d)(3) and (4) of the Code or, in the absence of such regulations, in accordance
with the principles of Section 280G(d)(3) and (4) of the Code. For purposes of determining
the amount of the Gross-Up Payment, Executive shall be deemed to pay federal income taxes at
the highest marginal rate of federal income taxation in the calendar year in which the
Gross-Up Payment is to be made and state and local income taxes at the highest marginal rate
of taxation in the state and locality of Executive’s residence on the date of termination of
his employment, net of the applicable reduction in federal income taxes which could be
obtained from deduction of such state and local taxes.

     (c) Repayment of Gross-Up by Executive and Possible Additional Gross-Up by
Company. In the event that the amount of Excise Tax attributable to Payments is
subsequently determined to be less than the amount taken into account hereunder at the time
of termination of Executive’s employment, he shall repay to the Company at the time that the
amount of such reduction in Excise Tax is finally determined the portion of the Gross-Up
Payment attributable to such reduction (including the portion of the Gross-Up Payment
attributable to the Excise Tax, employment tax and federal (and state and local) income tax
imposed on the Gross-Up Payment being repaid by Executive if such repayment results in a
reduction in Excise Tax and/or a federal (and state and local) income tax deduction) plus
interest on the amount of such repayment at the rate provided in section 1274(b)(2)(B) of
the Code. In the event that the Excise Tax attributable to Payments is determined to exceed
the amount taken into account hereunder at the time of the termination of Executive’s
employment (including by reason of any payment the existence or amount of which cannot be
determined at the time of the Gross-Up Payment), the Company shall make an additional
gross-up payment in respect of such excess (plus any interest and/or penalties payable by
Executive with respect to such excess) at the time that the amount of such excess is finally
determined.

     9. Executive Covenants.

     (a) General. Executive and the Company understand and agree that the purpose
of the provisions of this Section 9 is to protect legitimate business interests of the
Company, as more fully described below, and is not intended to impair or infringe upon
Executive’s right to work, earn a living, or acquire and possess property from the fruits of
his labor. Executive hereby acknowledges that the post-employment restrictions set forth in
this Section 9 are reasonable and that they do not, and will not, unduly impair his ability
to earn a living after the termination of his employment with the Company. Therefore,
subject to the limitations of reasonableness imposed by law upon restrictions set forth
herein, Executive shall be subject to the restrictions set forth in this Section 9.

     (b) Definitions. The following capitalized terms used in this Section 10 shall
have the meanings assigned to them below, which definitions shall apply to both the singular

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and the plural forms of such terms: “Confidential Information” means any confidential
or proprietary information possessed by the Company without limitation, any confidential
“know-how,” customer lists, details of client and consultant contracts, current and
anticipated customer requirements, pricing policies, price lists, market studies, business
plans, operational methods, marketing plans or strategies, product development techniques or
plans, computer software programs (including object code and source code), data and
documentation, data base technologies, systems, structures and architectures, inventions and
ideas, past, current and planned research and development, compilations, devices, methods,
techniques, processes, financial information and data, business acquisition plans, new
personnel acquisition plans and any other information that would constitute a trade secret
under the common law or statutory law of the State of Tennessee.

     “Person” means any individual or any corporation, partnership, joint venture,
association or other entity or enterprise.

     “Protected Employees” means employees of the Company or its affiliated
companies who are employed by the Company or its affiliated companies at any time
within six (6) months prior to the date of termination of Executive for any reason
whatsoever or any earlier date (during the Restricted Period) of an alleged breach
of the Restrictive Covenants by Executive.

     “Restricted Period” means the period of Executive’s employment by the Company
plus a period extending one (1) year from the date of termination of employment;
provided, however, the Restricted Period shall be extended for a period equal to the
time during which Executive is in breach of his obligations to the Company under
this Section 9.

     “Restrictive Covenants” means the restrictive covenants contained in Section
9(c) hereof:

     (c) Restrictive Covenants.

     (i) Restriction on Disclosure and Use of Confidential Information.
Executive understands and agrees that the Confidential Information constitutes a
valuable asset of the Company and its affiliated entities, and may not be converted
to Executive’s own use or converted by Executive for the use of any other Person.
Accordingly, Executive hereby agrees that Executive shall not, directly or
indirectly, at any time during the Restricted Period or thereafter, reveal, divulge
or disclose to any Person not expressly authorized by the Company any Confidential
Information, and Executive shall not, at any time during the Restricted Period or
thereafter, directly or indirectly, use or make use of any Confidential Information
in connection with any business activity other than that of the Company. The
parties acknowledge and agree that this Agreement is not intended to, and does not,
alter either the Company’s rights or Executive’s obligations under any state or
federal statutory or common law regarding trade secrets and unfair trade practices,

     (ii) Non-Competition. Executive shall not, during the Restricted
Period, directly or indirectly, for himself or on behalf of or in conjunction with
any other Person: (x) engage, as an officer, director, shareholder, owner, partner,
joint venturer or in a managerial capacity whether as an employee, independent
contractor, consultant or advisor, or as sales representative, in any hotel business
and/or meeting and convention center business in direct competition with the Company
or any

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subsidiary of the Company, within seventy-five (75) miles of the locations in which
the Company or any of the Company’s subsidiaries owns or operates any hotel and/or
meeting and convention center (the “Territory”), or (y) call upon any Person which
is at that time, or which has been, within one (1) year prior to that time, a
customer of the Company (including the subsidiaries thereof) within the Territory
for the purpose of providing meeting or convention services in competition with the
Company or any subsidiary of the Company within the Territory. The foregoing shall
not be deemed to prohibit Executive from acquiring as an investment not more than
two percent (2%) of the capital stock of a competing business whose stock is traded
on a national securities exchange or over-the-counter.

     (iii) Non-solicitation of Protected Employees. Executive understands
and agrees that the relationship between the Company and each of its Protected
Employees constitutes a valuable asset of the Company and may not be converted to
Executive’s own use or converted by Executive for the use of any other Person.
Accordingly, Executive hereby agrees that during the Restricted Period Executive
shall not directly or indirectly on Executive’s own behalf or on behalf of any
Person solicit any Protected Employee to terminate his or his employment with the
Company.

     (iv) Non-interference with Company Opportunities. Executive
understands and agrees that all business opportunities with which he is involved
during his employment with the Company constitute valuable assets of the Company and
its affiliated entities, and may not be converted to Executive’s own use or
converted by Executive for the use of any other Person. Accordingly, Executive
hereby agrees that during the Restricted Period or thereafter, Executive shall not
directly or indirectly on Executive’s own behalf or on behalf of any Person,
interfere with, solicit, pursue, or in any way make use of any such business
opportunities.

     (d) Exceptions from Disclosure Restrictions. Anything herein to the contrary
notwithstanding, Executive shall not be restricted from disclosing or using Confidential
Information that: (i) is or becomes generally available to the public other than as a
result of an unauthorized disclosure by Executive or his agent; (ii) becomes available to
Executive in a manner that is not in contravention of applicable law from a source (other
than the Company or its affiliated entities or one of its or their officers, employees,
agents or representatives) that is not known by Executive, after reasonable investigation,
to be bound by a confidential relationship with the Company or its affiliated entities or by
a confidentiality or other similar agreement; or (iii) is required to be disclosed by law,
court order or other legal process; provided, however, that in the event disclosure is
required by law, court order or legal process, Executive shall provide the Company with
prompt notice of such requirement so that the Company may seek an appropriate protective
order prior to any such required disclosure by Executive.

     (e) Enforcement of the Restrictive Covenants.

     (i) Rights and Remedies upon Breach. In the event Executive breaches, or
threatens to commit a breach of, any of the provisions of the Restrictive Covenants, the
Company shall have the right and remedy to enjoin, preliminarily and permanently, Executive
from violating or threatening to violate the Restrictive Covenants and to have the
Restrictive Covenants specifically enforced by any court of competent jurisdiction, it being
agreed that any breach or threatened breach of the Restrictive Covenants would cause
irreparable injury to the Company and that money damages would not provide an adequate

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remedy to the Company. The rights referred to herein shall be independent of any
others and severally enforceable, and shall be in addition to, and not in lieu of, any other
rights and remedies available to the Company at law or in equity.

     (ii) Severability of Covenant. Executive acknowledges and agrees that the
Restrictive Covenants are reasonable and valid in all respects. If any court determines
that any Restrictive Covenants, or any part thereof, is invalid or unenforceable, the
remainder of the Restrictive Covenants shall not thereby be affected and shall be given full
effect, without regard to the invalid portions.

     10. Cooperation in Future Matters. Executive hereby agrees that, for a period of
three (3) years following the date of his termination, he shall cooperate with the Company’s
reasonable requests relating to matters that pertain to Executive’s employment by the Company,
including, without limitation, providing information of limited consultation as to such matters,
participating in legal proceedings, investigations or audits on behalf of the Company, or otherwise
making himself reasonably available to the Company for other related purposes. Any such
cooperation shall be performed at times scheduled taking into consideration Executive’s other
commitments, and Executive shall be compensated (except for cooperation in connection with legal
proceedings) at a reasonable hourly or per diem rate to be agreed by the parties to the extent such
cooperation is required on more than an occasional and limited basis. Executive shall also be
reimbursed for all reasonable out of pocket expenses. Executive shall not be required to perform
such cooperation to the extent it conflicts with any requirements of exclusivity of service for
another employer or otherwise, nor in any manner that in the good faith belief of Executive would
conflict with his rights under or ability to enforce this Agreement.

     11. Indemnification. The Company shall indemnify Executive and hold him harmless from
and against any and all costs, expenses, losses, claims, damages, obligations or liabilities
(including actual attorneys fees and expenses) arising out of any acts or failures to act by the
Company, its directors, employees or agents that occurred prior to the Effective Date, or arising
out of or relating to any acts, or omissions to act, made by Executive on behalf of or in the
course of performing services for the Company to the fullest extent permitted by the Bylaws of the
Company, or, if greater, as permitted by applicable law, as the same shall be in effect from time
to time. If any claim, action, suit or proceeding is brought, or any claim relating thereto is
made, against Executive with respect to which indemnity may be sought against the Company pursuant
to this Section, Executive shall notify the Company in writing thereof, and the Company shall have
the right to participate in, and to the extent that it shall wish, in its discretion, assume and
control the defense thereof, with counsel satisfactory to Executive.

     12. Executive’s Representations and Warranties. Executive represents and warrants
that he is free to enter into this Agreement and, as of the Effective Date, that he is not subject
to any conflicting obligation or any disability which shall prevent or hinder Executive’s execution
of this Agreement or the performance of his obligations hereunder; that no lawsuits or claims are
pending or, to Executive’s knowledge, threatened against Executive; and that he has never been
subject to bankruptcy, insolvency, or similar proceedings, has never been convicted of a felony or
a crime involving moral turpitude, and has never been subject to an investigation or proceeding by
or before the Securities and Exchange Commission or any state securities commission. The Company
shall have the authority to conduct an independent investigation into the background of Executive
and Executive agrees to fully cooperate in any such investigation. The Company shall notify
Executive if it intends to conduct such an investigation.

     13. Notices. Any and all notices or other communications required or permitted to be
given under any of the provisions of this Agreement shall be in writing and shall be deemed to have

11

 

been duly given when personally delivered or mailed by first class registered mail, return
receipt requested, or by commercial courier or delivery service, or by facsimile or electronic
mail, addressed to the parties at the addresses set forth below (or at such other address as any
party may specify by notice to all other parties given as aforesaid):

     (a) if to the Company, to:

Gaylord Entertainment Company

One Gaylord Drive

Nashville, Tennessee 37214

Attention: President

Facsimile Number: (615) 316-6010

     (b) if to Executive, to:

______________

c/o Gaylord Entertainment Company

One Gaylord Drive

Nashville, TN 37214

and/or to such other persons and addresses as any party shall have specified in writing to the
other by notice as aforesaid.

     14. Miscellaneous.

     (a) Entire Agreement. This Agreement constitutes the entire agreement of the
parties with respect to the subject matter hereof and supercedes and replaces in its
entirety Executive’s existing employment agreement with the Company. This Agreement may not
be modified, amended, or terminated except by a written agreement signed by all of the
parties hereto. Nothing contained in this Agreement shall be construed to impose any
obligation on the Company to renew this Agreement and neither the continuation of employment
nor any other conduct shall be deemed to imply a continuing obligation upon the expiration
of this Agreement.

     (b) Assignment; Binding Effect. This Agreement shall not be assignable by
Executive, but it shall be binding upon, and shall inure to the benefit of, his heirs,
executors, administrators, and legal representatives. This Agreement shall be binding upon
the Company and inure to the benefit of the Company and its respective successors and
permitted assigns. This Agreement may only be assigned by the Company to an entity
controlling, controlled by, or under common control with the Company; provided, however,
that no such assignment shall relieve the Company of any of its obligations hereunder.

     (c) Waiver. No waiver of any breach or default hereunder shall be considered
valid unless in writing, and no such waiver shall be deemed a waiver of any subsequent
breach or default of the same or similar nature.

     (d) Enforceability. Subject to the terms of Section 9(e) hereof, if any
provision of this Agreement shall be held invalid or unenforceable, such invalidity or
unenforceability shall attach only to such provision and shall not in any manner affect or
render invalid or unenforceable any other severable provision of this Agreement, and this
Agreement shall be carried out as if any such invalid or unenforceable provision were not
contained herein,

12

 

unless the invalidity or unenforceability of such provision substantially impairs the
benefits of the remaining portions of this Agreement.

     (e) Headings. The section headings contained herein are for the purposes of
convenience only and are not intended to define or limit the contents of the sections.

     (f) Counterparts. This Agreement may be executed in two or more counterparts,
all of which taken together shall be deemed one original.

     (g) Confidentiality of Agreement. The parties agree that the terms of this
Agreement as they relate to compensation, benefits, and termination shall, unless otherwise
required by law (including, in the Company’s reasonable judgment, as required by federal and
state securities laws), be kept confidential; provided, however, that any party hereto shall
be permitted to disclose this Agreement or the terms hereof with any of its legal,
accounting, or financial advisors provided that such party ensures that the recipient shall
comply with the provisions of this Section 14(g).

     (h) Governing Law. This Agreement shall be deemed to be a contract under the
laws of the State of Tennessee and for all purposes shall be construed and enforced in
accordance with the internal laws of said state.

     (i) No Third Party Beneficiary. This Agreement shall not confer any rights or
remedies upon any person or entity other than the parties hereto and their respective
successors and permitted assigns.

     (j) Arbitration. Any controversy or claim between or among the parties hereto,
including but not limited to those arising out of or relating to this Agreement or any
related agreements or instruments, including any claim based on or arising from an alleged
tort, shall be determined by binding arbitration in accordance with the Federal Arbitration
Act (or if not applicable, the law of the state of Tennessee), the Commercial Arbitration
Rules of the American Arbitration Association in effect as of the date hereof, and the
provisions set forth below. In the event of any inconsistency, the provisions herein shall
control. Judgment upon any arbitration award may be entered in any court having
jurisdiction. Any party to the Agreement may bring an action, including a summary or
expedited proceeding, to compel arbitration of any controversy or claim to which this
Agreement applies in any court having jurisdiction over such action; provided, however, that
all arbitration proceedings shall take place in Nashville, Tennessee. The arbitration body
shall set forth its findings of fact and conclusions of law with citations to the evidence
presented and the applicable law, and shall render an award based thereon. In making its
determinations and award(s), the arbitration body shall base its award on applicable law and
precedent, and shall not entertain arguments regarding punitive damages, nor shall the
arbitration body award punitive damages to any person. If Executive is entitled to any
award pursuant to the determination reached in the arbitration that is greater than that
proposed by the Company, he or she shall be entitled to payment by the Company of all
attorneys’ fees, costs (including expenses of arbitration), and other out-of-pocket expenses
incurred in connection with the arbitration.

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     IN WITNESS WHEREOF, the parties hereto have caused this Agreement to be duly executed as of
the date first above written.

	 	 	 	 	 
	 	GAYLORD ENTERTAINMENT COMPANY

 	 
	 	By:  	 	 
	 	 	Colin V. Reed 	 
	 	 	President and Chief Executive Officer 	 
	 

	 	 	 	 	 
	 	EXECUTIVE:

 	 
	 	  	 	 
	 	 	 	 
	 	Name: 	 	 
	 

14Ex-10.20

 

Exhibit 10.20

AMSURG CORP.

RESTRICTED SHARE AWARD AGREEMENT

     THIS RESTRICTED SHARE AWARD AGREEMENT (this “Agreement”) is made and entered into as of the
21st day of February, 2008 (the “Grant Date”), between AmSurg Corp., a Tennessee
corporation, together with its subsidiaries (the “Company”), and Ken P. McDonald (the “Grantee”),
under the Company’s 2006 Stock Inventive Plan, as amended (the “Plan”). Capitalized terms not
otherwise defined herein shall have the meaning ascribed to such terms in the Plan.

     WHEREAS, the Company has adopted the Plan, which permits the issuance of restricted shares of
the Company’s common stock, no par value per share (the “Common Stock”); and

     WHEREAS, pursuant to the Plan, the Committee responsible for administering the Plan has
granted an award of restricted shares to the Grantee as provided herein;

     NOW, THEREFORE, in consideration of the mutual covenants hereinafter set forth and for other
good and valuable consideration, the receipt and sufficiency of which are hereby acknowledged, the
parties hereto, intending to be legally bound hereby, agree as follows:

     1. Grant of Restricted Shares.

          (a) The Company hereby grants to the Grantee an award (the “Award”) of 23,697 shares of Common
Stock (the “Shares” or the “Restricted Shares”) on the terms and conditions set forth in this
Agreement and as otherwise provided in the Plan.

          (b) The Grantee’s rights with respect to the Award shall remain forfeitable at all times prior
to the date on which the restrictions shall lapse in accordance with Sections 2 and
3 hereof.

     2. Terms and Rights as a Stockholder.

          (a) Except as provided herein and subject to such other exceptions as may be determined by the
Committee in its discretion, the “Restricted Period” for the Restricted Shares granted herein shall
expire on the third anniversary of the date hereof.

          (b) The Grantee shall have all rights of a stockholder with respect to the Restricted Shares,
including the right to receive dividends and the right to vote such Shares, subject to the
following restrictions:

               (i) the Grantee shall not be entitled to delivery of the stock certificate for any Shares
until the expiration of the Restricted Period as to such Shares;

               (ii) none of the Restricted Shares may be sold, assigned, transferred, pledged, hypothecated
or otherwise encumbered or disposed of during the Restricted Period as to such Shares; and

 

 

               (iii) except as otherwise determined by the Committee at or after the grant of the Award
hereunder, any Restricted Shares as to which the applicable “Restricted Period” has not expired
shall be forfeited, and all rights of the Grantee to such Shares shall terminate, without further
obligation on the part of the Company, unless the Grantee remains in the continuous employment of
the Company or remains a member of the Board of the Company for the entire Restricted Period.

          (c) Notwithstanding the foregoing, the Restricted Period shall automatically terminate as to
all Restricted Shares awarded hereunder (as to which such Restricted Period has not previously
terminated) upon the occurrence of (i) the death or Disability (to be determined in the sole
discretion of the Committee) of Grantee, (ii) a Change in Control, or (iii) the termination of
Grantee’s service as a member of the Board of the Company other than as a result of a voluntary
resignation by the Grantee.

     Any Shares, any other securities of the Company and any other property (except for cash
dividends) distributed with respect to the Restricted Shares shall be subject to the same
restrictions, terms and conditions as such Restricted Shares.

     3. Termination of Restrictions. Following the termination of the Restricted Period,
all restrictions set forth in this Agreement or in the Plan relating to such portion or all, as
applicable, of the Restricted Shares shall lapse as to such portion or all, as applicable, of the
Restricted Shares, and a stock certificate for the appropriate number of Shares, free of the
restrictions and restrictive stock legend, shall, upon request, be delivered to the Grantee
pursuant to the terms of this Agreement.

     4. Delivery of Shares.

          (a) As of the date hereof, certificates representing the Restricted Shares shall be registered
in the name of the Grantee and held by the Company or transferred to a custodian appointed by the
Company for the account of the Grantee subject to the terms and conditions of the Plan and shall
remain in the custody of the Company or such custodian until their delivery to the Grantee as set
forth in Section 4(b) hereof or their reversion to the Company as set forth in Section 2(b) hereof.

          (b) Certificates representing Restricted Shares in respect of which the applicable Restricted
Period has lapsed pursuant to this Agreement shall be delivered to the Grantee upon request
following the date on which the restrictions on such Restricted Shares lapse.

          (c) Each certificate representing Restricted Shares shall bear a legend in substantially the
following form or substance:

THIS SALE OR OTHER TRANSFER OF THE SHARES REPRESENTED BY THIS CERTIFICATE, WHETHER
VOLUNTARY, INVOLUNTARY, OR BY OPERATION OF LAW, IS SUBJECT TO CERTAIN RESTRICTIONS
ON

2

 

TRANSFER SET FORTH IN THE AMSURG CORP. 2006 STOCK INCENTIVE PLAN (THE “PLAN”) AND
THE RESTRICTED SHARE AWARD AGREEMENT (THE “AWARD AGREEMENT”) BETWEEN THE GRANTEE AND
AMSURG CORP. A COPY OF THE PLAN AND THE AWARD AGREEMENT MAY BE OBTAINED FROM THE
SECRETARY OF AMSURG CORP.

     5. Effect of Lapse of Restrictions. To the extent that the Restricted Period
applicable to any Restricted Shares shall have lapsed, the Grantee may receive, hold, sell or
otherwise dispose of such Shares free and clear of the restrictions imposed under the Plan and this
Agreement.

     6. No Right to Continued Employment or Service on the Board. This Agreement shall not
be construed as giving Grantee the right to be retained in the employ of the Company or to continue
to serve as a member of the Board of the Company, and the Company may at any time dismiss Grantee
from employment or service on the Board (subject to other legal limitations), free from any
liability or any claim under the Plan.

     7. Adjustments. The Committee shall make equitable and proportionate adjustments in
the terms and conditions of, and the criteria included in, this Award in recognition of unusual or
nonrecurring events (including, without limitation, the events described in Section 4.2 of
the Plan) affecting the Company, or the financial statements of the Company, or of changes in
applicable laws, regulations, or accounting principles in accordance with the Plan.

     8. Amendment to Award. Subject to the restrictions contained in the Plan, the
Committee may waive any conditions or rights under, amend any terms of, or alter, suspend,
discontinue, cancel or terminate the Award, prospectively or retroactively; provided that any such
waiver, amendment, alteration, suspension, discontinuance, cancellation or termination that would
adversely affect the rights of the Grantee or any holder or beneficiary of the Award shall not to
that extent be effective without the consent of the Grantee, holder or beneficiary affected.

     9. Withholding of Taxes. If the Grantee makes an election under Section 83(b) of the
Code with respect to the Award, the Award made pursuant to this Agreement shall be conditioned upon
the prompt payment to the Company of any applicable withholding obligations or withholding taxes by
the Grantee (“Withholding Taxes”). Failure by the Grantee to pay such Withholding Taxes will
render this Agreement and the Award granted hereunder null and void ab initio and the Restricted
Shares granted hereunder will be immediately cancelled. If the Grantee does not make an election
under Section 83(b) of the Code with respect to the Award, upon the lapse of the Restricted Period
with respect to any portion of Restricted Shares (or property distributed with respect thereto),
the Company shall satisfy the required Withholding Taxes as set forth by Internal Revenue Service
guidelines for the employer’s minimum statutory withholding with respect to Grantee and issue
vested shares to the Grantee without restriction. The Company shall satisfy the required
Withholding Taxes by withholding from the Shares included in the Award that number of whole shares
necessary to satisfy such taxes as of the date the restrictions lapse with respect to such Shares
based on the Fair Market Value of the Shares.

3

 

     10. Plan Governs. The Grantee hereby acknowledges receipt of a copy of the Plan and
agrees to be bound by all the terms and provisions thereof. The terms of this Agreement are
governed by the terms of the Plan, and in the case of any inconsistency between the terms of this
Agreement and the terms of the Plan, the terms of the Plan shall govern.

     11. Severability. If any provision of this Agreement is, or becomes, or is deemed to
be invalid, illegal, or unenforceable in any jurisdiction or as to any Person or the Award, or
would disqualify the Plan or Award under any laws deemed applicable by the Committee, such
provision shall be construed or deemed amended to conform to the applicable laws, or if it cannot
be construed or deemed amended without, in the determination of the Committee, materially altering
the intent of the Plan or the Award, such provision shall be stricken as to such jurisdiction,
Person or Award, and the remainder of the Plan and Award shall remain in full force and effect.

     12. Notices. All notices required to be given under this Grant shall be deemed to be
received if delivered or mailed as provided for herein, to the parties at the following addresses,
or to such other address as either party may provide in writing from time to time.

	 	 	 
	To the Company:

	 	AmSurg Corp.
	 

	 	20 Burton Hills Boulevard
	 

	 	Nashville, Tennessee 37215
	 

	 	Attn: Director of Human Resources
	 
	 	 
	To the Grantee:

	 	The address then maintained with respect to the Grantee in the
Company’s records.

     13. Governing Law. The validity, construction and effect of this Agreement shall be
determined in accordance with the laws of the State of Tennessee without giving effect to conflicts
of laws principles.

     14. Successors in Interest. This Agreement shall inure to the benefit of and be
binding upon any successor to the Company. This Agreement shall inure to the benefit of the
Grantee’s legal representatives. All obligations imposed upon the Grantee and all rights granted
to the Company under this Agreement shall be binding upon the Grantee’s heirs, executors,
administrators and successors.

     15. Resolution of Disputes. Any dispute or disagreement which may arise under, or as
a result of, or in any way related to, the interpretation, construction or application of this
Agreement shall be determined by the Committee. Any determination made hereunder shall be final,
binding and conclusive on the Grantee and the Company for all purposes.

4

 

     IN WITNESS WHEREOF, the parties have caused this Restricted Share Award Agreement to be duly
executed effective as of the day and year first above written.

	 	 	 	 	 	 	 
	 	 	AMSURG CORP.	 	 
	 
	 	 	 	 	 	 
	 

	 	By:

Name:
	 	/s/ Christopher A. Holden
 

Christopher A. Holden
	 	 
	 

	 	Title:
	 	Chief Executive Officer	 	 
	 
	 	 	 	 	 	 
	 	 	GRANTEE	 	 
	 
	 	 	 	 	 	 
	 	 	/s/ Ken P. McDonald	 	 
	 	 	 	 	 
	 	 	Ken P. McDonald	 	 

5

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