Document:

Employee Severance Agreement

    Exhibit
      10.1

    

    AGREEMENT

    

    THIS
      AGREEMENT
      (the
      "Agreement") is made as of this 15th
      day of
      July, 2006 (the "Effective Date"), by and between David L. Gilbert, a natural
      person resident in Williamson County, TN and his heirs, assigns, executors,
      agents and representatives (“Gilbert”) on the one side, and CBRL Group, Inc.
      (together with its subsidiaries and affiliates, including Cracker Barrel Old
      Country Store, Inc. hereinafter referred to as “CBRL”) on the
      other;

     

    

     

    W
      I T N E S S E T H:

    

    WHEREAS,
      Gilbert
      has been employed as the Chief Administrative Officer of CBRL’s wholly-owned
      subsidiary, Cracker Barrel Old Country Store, Inc. (“Cracker Barrel”);
      and

    

    WHEREAS,
      Gilbert
      and CBRL are parties to that certain Employee Retention Agreement (the
“Retention Agreement”) dated as of October 3, 2001; and 

    

    

    WHEREAS,
      pursuant
      to a management reorganization within CBRL and Cracker Barrel, Gilbert’s
      position has been terminated from his employment with Cracker Barrel and/or
      CBRL
      effective the Effective Date; and

    

    WHEREAS,
      Cracker
      Barrel wishes to secure Gilbert’s continuing services for a period of time as a
      consultant; and

    

    WHEREAS,
      it is
      the desire of Gilbert and CBRL to enter into this Agreement to resolve all
      matters arising out of or related to Gilbert's employment with CBRL and Cracker
      Barrel;

    

    NOW,
      THEREFORE,
      for and
      in consideration of the mutual covenants and promises contained herein, the
      parties hereby agree as follows:

    

    1.    Termination
      of Employment: Consulting Agreement.
      This
      confirms that Gilbert, effective the Effective Date, resigned as an officer
      of
      Cracker Barrel and CBRL, as well as an officer or director of any subsidiary
      of
      Cracker Barrel. With the exception of the Employee Retention Agreement of
      October 3, 2001 as it relates to Gilbert, this Agreement supersedes any and
      all
      prior agreements with respect to Gilbert’s employment with Cracker Barrel or
      CBRL or any rights incident thereto, all of which are hereby wholly terminated
      and cancelled as of the Effective Date. The respective rights and obligations
      of
      the parties shall be governed hereafter by the terms of this
      Agreement.

    

    For
      a
      period of time from the Effective Date through and including September 30,
      2006
      Cracker Barrel and Gilbert agree that he will serve as a consultant to

     

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    Cracker
      Barrel in all matters related to his prior employment as an officer with Cracker
      Barrel.

    

     

    2.

    2.1    Severance.
      In
      accordance with CBRL’s severance guidelines adopted by the Compensation and
      Stock Option Committee of CBRL’s Board of Directors, during the twelve (12)
      months following the Effective Date (the “Severance Period”), but subject to
      early termination pursuant to Section 10, CBRL will pay Gilbert the sum of
      Three
      Hundred Sixty-four Thousand and 00/100 Dollars ($364,000) less applicable
      deductions required by law, which shall be payable at the rate of Fifteen
      Thousand One-Hundred Sixty-six and 67/100 Dollars ($15,166.67), semi-monthly,
      beginning July 28, 2006, in accordance with CBRL’s regular payroll
      policies.

    

    

    2.2.    FY06
      Bonus: Gilbert
      shall receive his pro rata share (through July 15 2006) of any FY06 bonus paid
      pursuant to the terms of the Executive Team Bonus Plan if any such bonus is
      made
      to the FY06 Executive Team members; said bonus to be paid, if it all, at the
      same time other Executive Team bonus payments are made.

    

    3.    Stock
      Options.
      All
      vested options may be exercised on or before the date that is ninety (90) days
      after September 30, 2006 in accordance with the provisions of CBRL’s stock
      option plan(s). Options granted will continue to vest through September 30,
      2006
      and options not vested by September 30, 2006 will be forfeited. Gilbert hereby
      relinquishes any right to exercise any rights or options that he has to acquire
      or purchase CBRL common stock other than the Vested Options, and, without
      limiting the foregoing, he specifically relinquishes the September 22, 2005
      grant of Ten Thousand, Five Hundred Twenty-five (10,525) restricted shares
      of
      CBRL common stock, as of July 15, 2006. The terms and provisions of this
      Agreement shall supersede and control over any of the terms and provisions
      of
      any agreement between Gilbert and CBRL (or Cracker Barrel) with respect to
      any
      rights to receive or options to purchase CBRL’s common stock. 

    

    4.    Benefits
      and Other Matters.

    

    4.1.    Cracker
      Barrel shall continue to provide all group health insurance benefits for Gilbert
      and his dependents at the same level as for other Cracker Barrel officers for
      the period ending September 30, 2006. Afterwards, upon payment of the
      appropriate premiums, Gilbert will have the right to continue his participation
      in CBRL's group health coverage plan under the applicable COBRA
      regulations.

    

    4.2.    Gilbert
      may utilize CBRL’s outplacement services during the Severance
      Period.

    

    4.3.    Gilbert
      will be reimbursed for any reasonable and pre-approved out-of-pocket expenses
      incurred through the Effective Date in accordance with CBRL's or Cracker
      Barrel’s travel and entertainment reimbursement guidelines, provided

     

    
      
        
        

      

      
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         that
      request for reimbursement is made
      on or before thirty days after the Effective Date.

    

    4.4.    Gilbert
      acknowledges that the consideration set forth in this Agreement is over and
      above any payment or benefits to which he is legally entitled absent this
      Agreement.

    

    5.    Gilbert's
      Release.
      With
      the exception of all rights Gilbert may have arising from the Employee Retention
      Agreement dated October 3, 2001, Gilbert hereby generally releases and
      discharges CBRL and Cracker Barrel and each of their respective predecessors,
      successors (by merger or otherwise), parents, subsidiaries, affiliated entities,
      divisions and assigns, together with each and every of their present, past
      and
      future officers, directors, shareholders, general partners, limited partners,
      employees and agents and the heirs and executors of same (herein collectively
      referred to as the “Company Group”) from any and all suits, causes of action,
      complaints, obligations, demands, or claims of any kind, whether in law or
      in
      equity, direct or indirect, known or unknown (hereinafter “claims”), which
      Gilbert ever had, now has, or may have against CBRL, Cracker Barrel, the Company
      Group or any one of them arising out of or relating to any matter, thing or
      event occurring up to and including the date of this Agreement. Gilbert’s
      release specifically includes, but is not limited to:

    

    
      	 	
              (a)

            	
              Any
                and all claims for wages and benefits including, without limitation,
                salary, stock, commissions, royalties, license fees, health and welfare
                benefits, severance pay, vacation pay, and bonuses;
                

            

    

    

    
      	 	
              (b)

            	
              Any
                and all claims for wrongful discharge and breach of contract whether
                express or implied, and implied covenants of good faith and fair
                dealing;

            

    

    

    
      	 	
              (c)

            	
              Any
                and all claims for alleged employment discrimination on the basis
                of age,
                race, color, religion, sex, national origin, veteran status, disability
                and/or handicap, and any and all claims for violation of any federal,
                state or local statute, ordinance, judicial precedent or executive
                order,
                including but not limited to claims under the following statutes:
                Title
                VII of the Civil Rights Act of 1964, 42 U.S.C. §2000e et
                seq.,
                the Civil Rights Act of 1866, 42 U.S.C. §1981, the Age Discrimination in
                Employment Act, as amended, 29 U.S.C. §621 et seq.,
                the Older Workers Benefit Protection Act, 29 U.S.C. §626(f), the Americans
                with Disabilities Act, 42 U.S.C. §12101 et
                seq.,
                the Family and Medical Leave Act of 1993, as amended, the Fair Labor
                Standards Act, as amended, the Employee Retirement Income Security
                Act of
                1974, as amended, and the Tennessee Human Rights Act or any comparable
                statute;

            

    

    

    
      	 	
              (d)

            	
              Any
                and all claims in tort (including but not limited to any claims for
                misrepresentation, defamation, interference with contract or prospective
                economic advantage, intentional or negligent infliction of emotional
                distress, duress, loss of consortium, invasion of privacy and
                negligence);

            

    

    

    
      
        
        

      

      
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              (e)

            	
              Any
                and all claims for attorneys’ fees and costs;
                and

            

    

    

    
      	(f)        	
              Any
                and all other claims for damages, including compensatory and punitive
                damages: and

            

    

    

    
      	(g)   
                  	
              CBRL
                also releases Gilbert from any and all claims it may have against
                him with
                regard to his employment, with the exception of criminal acts such
                as
                fraud and other criminal acts that may not be known to CBRL as of
                the
                Effective Date of this Agreement.

            

    

    

    6.    Acknowledgment.
      The
      parties agree that neither of them have breached any oral or written contract
      that may have existed between them nor with respect to Gilbert’s employment or
      termination of employment have the parties violated any law, statute, rule
      regulation or ordinance of any governmental authority relating to employment.
      Gilbert acknowledges that the payments and other consideration paid hereunder
      can not and shall not be construed as any admission of liability or wrongdoing
      on the part of either CBRL or any member of the Company Group. Likewise, CBRL
      acknowledges that nothing in this Agreement should be construed as an admission
      of liability or wrongdoing on the part of Gilbert. Gilbert
      understands that the release set forth in this Agreement extends to all of
      the
      aforementioned claims and potential claims which arose on or before the date
      of
      the execution of this Agreement, whether now known or unknown, suspected or
      unsuspected, and his participation as a member of any class asserting any such
      claims, and that this acknowledgement and release constitute essential terms
      of
      this Agreement. CBRL likewise acknowledges that the release set forth in this
      Agreement extends to all claims and potential claims which arose on or before
      the date of the execution of this Agreement, whether known or unknown, suspected
      or unsuspected, except as noted herein, and that this acknowledgement and
      release constitutes essential terms of this Agreement. The parties understand
      and acknowledge the significance and consequence of this Agreement and of each
      specific release and waiver, and expressly consent that this Agreement shall
      be
      given full force and effect according to each and all of its express terms
      and
      provisions, including those relating to unknown and unsuspected claims, demands,
      obligations, and causes of action, if any, as well as those relating to any
      other claims, demands, obligations or causes of action herein above-specified.
      

    

    7.    Reinstatement.
      Gilbert
      hereby waives any right or claim he may have to employment, re-instatement,
      re-assignment or re-employment with CBRL, Cracker Barrel or any other member
      of
      the Company Group. Mr. Gilbert is listed as eligible for rehire, as of July
      15th,
      2006.
      Gilbert's acknowledgement and agreement as to these matters are material
      inducements for CBRL's making certain other of its agreements including, without
      limitation, the payments in Section 2.

     

    8.    Publicity;
      No Disparaging Statements.

    

    8.1.    Gilbert
      agrees that he shall not make or authorize any disparaging communications with
      respect to, or take any actions detrimental to the interests of, CBRL, Cracker
      Barrel, any member of the Company Group or any of their respective officers,
      directors or employees, past or present, as further defined in

     

    
      
        
        

      

      
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Sections
        8 and 9 in their entirety. To the extent that the foregoing prohibition might
        be
        applicable, it is not intended to prevent Gilbert from giving testimony pursuant
        to compulsory process of law.

    

    

    8.2.    At
      any
      time following the Effective Date, CBRL shall not make any public statements,
      announcements or disclosures, except as may be required by law, of any
      information detrimental to Gilbert. The determination whether any disclosure
      is
      required by law shall be made by a court of competent jurisdiction.

    

    9.    Business
      Protection Provisions.

    

    9.1    Preamble.
      As a material inducement to CBRL to enter into this Agreement, and its
      recognition of the valuable experience, knowledge and proprietary information
      Gilbert gained from his employment with Cracker Barrel, Gilbert warrants and
      agrees he will abide by and adhere to the following business protection
      provisions in this Section 9 and all sub-sections thereof.

    

    9.2    Definitions.
      For purposes of this Section 9 and all sub-sections thereof, the following
      terms
      shall have the following meanings:

    

    
      	 	
              (a)

            	
              "Competitive
                Position" shall mean any employment, consulting, advisory, directorship,
                agency, promotional or independent contractor arrangement between
                Gilbert
                and any person or Entity engaged wholly or in material part in the
                restaurant or retail business that is the same or similar to that
                in which
                CBRL, Cracker Barrel or any of their respective subsidiaries or affiliates
                (collectively the "CBRL Entities") is engaged whereby Gilbert is
                required
                to or does perform services on behalf of or for the benefit of such
                person
                or Entity which are substantially similar to the services in which
                Gilbert
                participated or that he directed or oversaw while employed by Cracker
                Barrel. The following companies and concepts are the only ones that
                would
                be deemed the same or similar to CBRL Entities and/ or the businesses
                in
                which the CBRL Entities are engaged: O’Charley’s, Ruby Tuesday’s, Bob
                Evans, Applebee's International, International House of Pancakes,
                and
                Denny’s.

            

    

    

    
      	 	
              (b)

            	
              "Confidential
                Information" shall mean the proprietary or confidential data, information,
                documents or materials (whether oral, written, electronic or otherwise)
                belonging to or pertaining to the CBRL Entities, other than "Trade
                Secrets" (as defined below), which is of tangible or intangible value
                to
                any of the CBRL Entities and the details of which are not generally
                known
                to the competitors of the CBRL Entities. Confidential Information
                shall
                also include: any items that any of the CBRL Entities have marked
                "CONFIDENTIAL" or some similar designation or are otherwise identified
                as
                being confidential.

            

    

    

    
      
        
        

      

      
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              (c)

            	
              "Entity"
                or "Entities" shall mean any business, individual, partnership, joint
                venture, agency, governmental agency, body or subdivision, association,
                firm, corporation, limited liability company or other entity of any
                kind.

            

    

    

    
      	 	
              (d)

            	
              "Restricted
                Period" shall mean the twelve (12) month period following the Effective
                Date; provided, however that the Restricted Period shall be extended
                for a
                period of time equal to any period(s) of time within the twelve (12)
                month
                period following the Effective Date that Gilbert is determined by
                a final
                non-appealable judgment from a court of competent jurisdiction to
                have
                engaged in any conduct that violates this Section 9 or any sub-sections
                thereof, the purpose of this provision being to secure for the benefit
                of
                CBRL and Cracker Barrel the entire Restricted Period being bargained
                for
                by CBRL for the restrictions upon Gilbert's
                activities.

            

    

    

    
      	 	
              (e)

            	
              "Territory"
                shall mean each of the United States of
                America.

            

    

    

    
      	 	
              (f)

            	
              "Trade
                Secrets" shall mean information or data of or about any of the CBRL
                Entities, including, but not limited to, technical or non-technical
                data,
                recipes, formulas, patterns, compilations, programs (e.g.,
                advertising or promotional schedules), devices, methods, techniques,
                drawings, processes, financial data, financial plans, product plans
                or
                lists of actual or potential suppliers that: (1) derives economic
                value,
                actual or potential, from not being generally known to, and not being
                readily ascertainable by proper means by, other persons who can obtain
                economic value from its disclosure or use; (2) is the subject of
                efforts
                that are reasonable under the circumstances to maintain its secrecy;
                and
                (3) any other information which is defined as a "trade secret" under
                applicable law.

            

    

    

    
      	 	
              (g)

            	
              "Work
                Product" shall mean all tangible work product (e.g.,
                menus, advertising materials), property, data, documentation, "know-how,"
                concepts or plans, inventions, improvements, techniques and processes
                relating to the CBRL Entities that were conceived, discovered, created,
                written, revised or developed by Gilbert during the term of his employment
                with Cracker Barrel.

            

    

    

    9.3
       Nondisclosure;
      Ownership of Proprietary Property.

    

    
      	 	
              (a)

            	
              In
                recognition of the need of the CBRL Entities to protect their legitimate
                business interests, Confidential Information and Trade Secrets, Gilbert
                hereby covenants and agrees that Gilbert shall regard and treat Trade
                Secrets and all Confidential Information as

            

    

     

     

    
      
        
        

      

      
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      strictly
        confidential and wholly-owned by the CBRL Entities and shall not, for a period
        of two (2) years, for any reason, in any fashion, either directly or indirectly,
        use, sell, lend, lease, distribute, license, give, transfer, assign, show,
        disclose, disseminate, reproduce, copy, misappropriate or otherwise communicate
        any such item or information to any third party or Entity for any purpose
        other
        than in accordance with this Agreement or as required by applicable law,
        court
        order or other legal process.

       

    

    
      	 	
              (b)

            	
              Gilbert
                shall exercise best efforts to ensure the continued confidentiality
                of all
                Trade Secrets and Confidential Information, and he shall immediately
                notify CBRL of any unauthorized disclosure or use of any Trade Secrets
                or
                Confidential Information of which Gilbert becomes aware. Gilbert
                shall
                assist the CBRL Entities, to the extent necessary, in the protection
                of or
                procurement of any intellectual property protection or other rights
                in any
                of the Trade Secrets or Confidential
                Information.

            

    

          

     

    
      	 	
              (c)

            	
              All
                Work Product shall be owned exclusively by the CBRL Entities. To
                the
                greatest extent possible, any Work Product shall be deemed to be
                "work
                made for hire" (as defined in the Copyright Act, 17 U.S.C. §§ 101
                et
                seq.,
                as amended), and Gilbert hereby unconditionally and irrevocably transfers
                and assigns to the applicable CBRL Entity all right, title and interest
                Gilbert currently has or may have by operation of law or otherwise
                in or
                to any Work Product, including, without limitation, all patents,
                copyrights, trademarks (and the goodwill associated therewith), trade
                secrets, service marks (and the goodwill associated therewith) and
                other
                intellectual property rights. Gilbert agrees to execute and deliver
                to the
                applicable CBRL Entity any transfers, assignments, documents or other
                instruments which CBRL may deem necessary or appropriate, from time
                to
                time, to protect the rights granted herein or to vest complete title
                and
                ownership of any and all Work Product, and all associated intellectual
                property and other rights therein, exclusively in the applicable
                CBRL
                Entity.

            

    

    

    
      	 	
              (d)

            	
              Gilbert
                also recognizes that all writings, illustrations, drawings and other
                similar materials which embody or otherwise contain Trade Secrets,
                Confidential Information or Work Product that any CBRL Entity may
                have
                produced during his employment or which may have been given to Gilbert
                in
                connection with his employment are the property of CBRL and/or Cracker
                Barrel, and it is Gilbert's obligation to immediately return any
                such
                materials to CBRL and/or Cracker Barrel, as the case may
                be.

            

    

    

    9.4    Non-Interference
      With Executives; Non-solicitation of Employees. 

     

    
      
        
        

      

      
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          Gilbert
        recognizes and acknowledges that, as a result of his employment by Cracker
        Barrel, he has become familiar with and has acquired
        knowledge           

          of confidential
        information and certain other information regarding the other executives
        and
        employees of the CBRL Entities. Therefore, Gilbert agrees that, 

          during
        the
        Restricted Period, Gilbert shall not encourage, solicit or otherwise attempt
        to
        persuade any person in the employment of the CBRL Entities to end 

          his/her
        employment with a CBRL Entity or to violate any confidentiality, non-competition
        or employment agreement that such person may have with a CBRL 

          Entity
        or any
        policy of any CBRL Entity. Furthermore, neither Gilbert nor any person acting
        in
        concert with Gilbert nor any of Gilbert's affiliates shall, during 

          the Restricted
        Period, employ any person who has been an employee of any CBRL Entity unless
        that person has ceased to be an employee of the CBRL 

          Entities
        for
        at least six (6) months. Gilbert also shall not communicate in any manner
        whatsoever, whether directly or indirectly, with any employee of a CBRL

          Entity
        on the
        topic of the individual's employment with a CBRL Entity, his or her plans
        for
        employment in the future, or his or her employment with any other 

          entity,
        other
        than to say Gilbert is unable to engage in any discussions,

    

    

    
      	9.5          	
              Non-Competition;
                Standstill. Gilbert covenants and agrees to not obtain or work in
                a
                Competitive Position within the Territory during the Restricted Period
                as
                limited and set forth in Section 9.2(a). Gilbert
                further agrees that, during the Restricted Period, he will not in
                any
                manner (i) acquire, agree to acquire, or make any proposal (or request
                permission to make any proposal) to acquire any securities (or direct
                or
                indirect rights, warrants, or options to acquire any securities)
                or
                property (including the stock or assets of any of CBRL’s subsidiaries) of
                CBRL (other than property transferred in the ordinary course of CBRL's
                business), unless such acquisition, agreement, or making of a proposal
                shall have been expressly first approved by (or in the case of a
                proposal,
                expressly first invited by) CBRL's Board of Directors, (ii) solicit
                proxies from CBRL’s shareholders or otherwise seek to influence or control
                the management or policies of CBRL or any of its affiliates or
                subsidiaries, or (iii) assist (including by knowingly providing or
                arranging financing for that purpose) any other person or Entity
                in doing
                any of the foregoing. Gilbert
                and CBRL recognize and acknowledge that the scope, area and time
                limitations contained in this Agreement are reasonable and are properly
                required for the protection of the business interests of CBRL due
                to
                Gilbert's status and reputation in the industry and the knowledge
                to be
                acquired by Gilbert through his association with CBRL’s and Cracker
                Barrel's business and the public's close identification of Gilbert
                with
                Cracker Barrel and Cracker Barrel with Gilbert. Further, Gilbert
                acknowledges that his skills are such that he could easily find
                alternative, commensurate employment or consulting work in his field
                that
                would not violate any of the provisions of this Agreement. Gilbert
                acknowledges and understands that, as

            

    

     

    
       

      
        
          
          

        

        
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                     Consideration
        for his
        executionof this Agreement and his agreement with the terms of this covenant
        not
        to compete, Gilbert will 

                     receive severance
        and
        other benefits from CBRL in accordance with this Agreement.

       

    

    
      	                     9.6.	
               

            	
              CBRL
                specifically acknowledges and agrees that the disclosures made by
                Gilbert
                on Exhibit “A”, attached hereto, do not violate any term or condition of
                this Agreement, and that any claim CBRL potentially has or had arising
                out
                of this disclosure is specifically
                released.

            

    

     

    10.    Remedies. Gilbert
      understands and acknowledges that his violation of Section 8.1 or Section 9
      or
      any sub-section thereof may cause irreparable harm to CBRL and Cracker Barrel
      and CBRL entities may be entitled to seek injunction injunctive relief by any
      court of competent jurisdiction enjoining and restraining Gilbert from any
      employment, service, or other act prohibited by this Agreement. The parties
      agree that nothing in this Agreement shall be construed as prohibiting CBRL
      from
      pursuing any remedies available to it for any breach or threatened breach of
      Section 8.1 or Section 9 or any sub-section thereof, including, without
      limitation, the recovery of damages from Gilbert or any person or entity acting
      in concert with Gilbert. If any part of Section 8.1 or Section 9 or any
      sub-section thereof is found to be unreasonable, then it may be amended by
      appropriate order of a court of competent jurisdiction to the extent deemed
      reasonable. Furthermore and in recognition that certain payments under this
      Agreement are being agreed to in reliance upon Gilbert's compliance with
      Sections 8.1 and 9, in the event of
      a
      breach of Gilbert of any of the provisions of Section 8.1 or Section 9 or any
      sub-sections thereof, damages to CBRL would be difficult to determine and,
      in
      the event of such breach by Gilbert: the Severance Period shall immediately
      terminate without any action on the part of CBRL and CBRL shall be released
      from
      its obligations (a) to make any further payments to Gilbert under Section 2
      hereof and (b) under Section 8.2 hereof. If
      CBRL
      brings suit to compel performance of, to interpret, or to recover damages for
      the breach of this Agreement, CBRL, if it prevails, shall be entitled to recover
      its reasonable attorneys’ fees in addition to costs and necessary disbursements
      otherwise recoverable. Cracker Barrel may seek equitable relief in any federal
      or state court in Middle Tennessee and Cracker Barrel and Gilbert hereby submit
      to jurisdiction in those courts.

    

    11.    No
      Admissions.
      Neither
      the execution of this Agreement by CBRL nor the terms hereof constitutes an
      admission by CBRL, or by any agent or employee of CBRL or the Company Group,
      of
      liability or unlawful conduct in any manner. Likewise, Gilbert’s execution of
      this Agreement nor its terms constitute an admission by him of any liability
      or
      unlawful conduct.

    

    12.    Entire
      Agreement.
      This
      Agreement contains the entire agreement of the parties with respect to the
      subject matter hereof, and shall be binding upon their respective heirs,
      executors, administrators, successors and assigns. In addition, although not
      a
      party to this Agreement, Cracker Barrel is an intended third party beneficiary
      of this Agreement and entitled to enforce against Gilbert any of the provisions
      of this Agreement.

    

    
      
        
        

      

      
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    13.    Severability.
      If any
      term or provision of this Agreement shall be held to be invalid or unenforceable
      for any reason, then such term or provision shall be ineffective to the extent
      of such invalidity or unenforceability without invalidating the remaining terms
      or provisions hereof, and such term or provision shall be deemed modified to
      the
      extent necessary to make it enforceable.

    

    14.    Advice
      of Counsel; Revocation Period.
      Gilbert
      represents and warrants: 

    

    
      	 	
              (a)

            	
              That
                he has had up to twenty-one (21) days to consider this Agreement,
                and has
                decided to enter into it; signing prior to the expiration of the
                twenty-one (21) day period constitutes a waiver of his right to the
                additional time period;

            

    

    

    
      	 	
              (b)

            	
              That
                he has carefully read this Agreement, and understands its contents,
                meaning and intent; 

            

    

    

    
      	 	
              (c)

            	
              That,
                understanding this document, he has freely and voluntarily executed
                it
                with the advice of counsel aforesaid, without compulsion, coercion
                or
                duress; and

            

    

    

    
      	 	
              (d)

            	
              That
                he has seven (7) days following his execution of this Agreement to
                revoke
                his acceptance of the Agreement, and that the Agreement will not
                become
                effective until the revocation period has expired. If he wishes to
                revoke
                this Agreement, he must notify N.B. Forrest Shoaf, Senior Vice President,
                General Counsel and Secretary, CBRL Group, Inc., Lebanon, TN 37086,
                in
                writing within seven (7) days following the execution of this Agreement;
                and

            

    

    

    
      	 	
              (e)

            	
              Gilbert
                understands and acknowledges that the Agreement is a legally binding
                release, and that seven (7) days after he signs it, unless revoked
                during
                the seven (7) day revocation period in this Section, that he will
                be
                barred from seeking or obtaining, directly or indirectly, any relief
                or
                recovery of any kind for or based on any of the claims released and
                forever discharged in this
                Agreement.

            

    

    

    15.    Amendments.
      Neither
      this Agreement nor any term hereof may be orally changed, waived, discharged,
      or
      terminated, and may be amended only by a written agreement signed by both of
      the
      parties hereto.

    

    16.    Governing
      Law.
      This
      Agreement shall be governed by the laws of the State of Tennessee without regard
      to the conflict of law principles of any jurisdiction.

    

    17.    Legally
      Binding.
      The
      terms of this Agreement contained herein are contractual and not mere
      recitals.

    

    
      
        
        

      

      
        -10-

        
          

        

      

      
        
        

      

    

    IN
      WITNESS WHEREOF,
      the
      parties acknowledging that they are acting of their own free will have
      voluntarily caused the execution of this Agreement as of this day and year
      written below.

    

    GILBERT
      ACKNOWLEDGES THAT HE HAS HAD A REASONABLE PERIOD OF TIME TO READ AND CONSIDER
      THIS AGREEMENT, THAT HAS HE HAS CAREFULLY READ THIS AGREEMENT, UNDERSTANDS
      IT,
      AND IS VOLUNTARILY ENTERING INTO IT.

    

    PLEASE
      READ THIS AGREEMENT CAREFULLY. IT CONTAINS A RELEASE OF ANY AND ALL KNOWN AND
      UNKNOWN
      CLAIMS.                  

     

     

                                                        

                                               
_/s/
        David L. Gilbert_________________________ 

                                 David
        L. Gilbert

      

                          
Date:
August
        11, 2006

      

                                      
        CBRL GROUP, INC.

                                                  By:_/s/
        Michael A. Woodhouse__     _____________

                          Title:
        Chairman,
        President and Chief Executive Officer 

      

                          Date:
August
        14, 2006

       

       

       

       

       

       

       

      -11-

       

      
         

        
          
            
            

          

          
            
            

            
              

            

          

          
            
            

          

        

         

         

      

      
         

        Exhibit
          A

         

            Exhibit
          A to this
          Agreement has been excluded due to immateriality.Employee Retention Agreement

    Exhibit
      10.2

     

    

    August
      12, 2006

     

    Douglas
      E. Barber

    

    Re:
      Employee
      Retention Agreement

    

    Dear
      Doug:

    

    The
      Board
      of Directors of the CBRL Group, Inc. recognizes the contribution that you have
      made to CBRL Group, Inc. or one of its direct or indirect subsidiaries
      (collectively, the "Company") and wishes to ensure your continuing commitment
      to
      the Company and its business operations. Accordingly, in exchange for your
      continuing commitment to the Company, and your energetic focus on continually
      improving operations, the Company promises you the following benefits if your
      employment with the Company is terminated in certain circumstances:

    

    1.    DEFINITIONS.
      As used
      in this Agreement, the following terms have the following meanings which are
      equally applicable to both the singular and plural forms of the terms
      defined:

    

    1.1    "Cause"
      means
      any one of the following:

    

                              
      (a)    personal
      dishonesty;

      
      (b)    willful
      misconduct;

      
      (c)    breach
      of
      fiduciary duty; or

      
      (d)    conviction
      of any felony or crime involving moral turpitude.

    

    1.2    "Change
      in Control"
      means:
      (a) that after the date of this Agreement, a person becomes the beneficial
      owner, directly or indirectly, of securities of the Company representing 20%
      or
      more of the combined voting power of the Company's then outstanding voting
      securities, unless that acquisition was approved by a vote of at least 2/3
      of
      the directors in office immediately prior to the acquisition; (b) that during
      any period of 2 consecutive years following the date of this Agreement,
      individuals who at the beginning of the period constitute members of the Board
      of Directors of the Company cease for any reason to constitute a majority of
      the
      Board unless the election, or the nomination for election by the Company's
      shareholders, of each new director was approved by a vote of at least 2/3 of
      the
      directors then still in office who were directors at the beginning of the 2-year
      period; (c) a merger, consolidation or reorganization of the Company (but this
      provision does not apply to a recapitalization or similar financial
      restructuring which does not involve a material change in ownership of equity
      of
      the Company and which does not result in a change in membership of the Board
      of
      Directors); or (d) a sale of all or substantially all of the Company’s
      assets.

    

    
      
        
        

      

      
        
        

        
          

        

      

      
        
        

      

    

    1.3    "Change
      in Control Period"
      means a
      2-year year period beginning the day after a Change in Control
      occurs.

     

    1.4    "Change
      in Duties or Compensation"
      means
      any one of: (a) a material change in your duties and responsibilities for the
      Company (without your consent) from those duties and responsibilities for the
      Company in effect at the time a Change in Control occurs, which change results
      in the assignment of duties and responsibilities inferior to your duties and
      responsibilities at the time such Change in Control occurs (it being understood
      and acknowledged by you that a Change in Control that results in two persons
      of
      which you are one having similar or sharing duties and responsibilities shall
      not be a material change in your duties and responsibilities); (b) a reduction
      in your salary or a material change in benefits (excluding discretionary
      bonuses), from the salary and benefits in effect at the time a Change in Control
      occurs; or (c) a change in the location of your work assignment from your
      location at the time a Change in Control occurs to any other city or
      geographical location that is located further than 50 miles from that
      location.

    

    2.    TERMINATION
      OF EMPLOYMENT; SEVERANCE.
      Your
      immediate supervisor or the Company's Board of Directors may terminate your
      employment, with or without cause, at any time by giving you written notice
      of
      your termination, such termination of employment to be effective on the date
      specified in the notice. You also may terminate your employment with the Company
      at any time. The effective date of termination (the "Effective Date") shall
      be
      the last day of your employment with the Company, as specified in a notice
      by
      you, or if you are terminated by the Company, the date that is specified by
      the
      Company in its notice to you. The following subsections set forth your rights
      to
      severance in the event of the termination of your employment in certain
      circumstances by either the Company or you. Section 5 also sets forth certain
      restrictions on your activities if your employment with the Company is
      terminated, whether by the Company or you. That section shall survive any
      termination of this Agreement or your employment with the Company.

    

    2.1    Termination
      by the Company for Cause.
      If you
      are terminated for Cause, the Company shall have no further obligation to you,
      and your participation in all of the Company's benefit plans and programs shall
      cease as of the Effective Date. In the event of a termination for Cause, you
      shall not be entitled to receive severance benefits described in Section
      3.

    

    2.2    Termination
      by the Company Without Cause Other Than During a Change in Control
      Period.
      If your
      employment with the Company is terminated by the Company without Cause at a
      time
      other than during a Change in Control Period, you shall be entitled to only
      those severance benefits provided by the Company's severance policy or policies
      then in effect. You shall not be entitled to receive benefits pursuant to
      Section 3 of this Agreement.

    

    2.3    Termination
      by the Company Without Cause During a Change in Control
      Period.
      If your
      employment with the Company is terminated by the Company without Cause during
      a
      Change in Control Period, you shall be entitled to receive Benefits pursuant
      to
      Section 3. A termination within 90 days prior to a Change in Control which
      occurs solely in order to make you 

     

    
      
        
        

      

      
        -2-

        
          

        

      

      
        
        

      

    

    ineligible
      for the benefits of this Agreement shall be considered a termination without
      Cause during a Change in Control Period.

     

    2.4    Termination
      By You For Change in Duties or Compensation During a Change in Control
      Period.
      If
      during a Change in Control Period there occurs a Change in Duties or
      Compensation you may terminate your employment with the Company at any time
      within 30 days after the occurrence of the Change in Duties or Compensation,
      by
      giving to the Company not less than 120 nor more than 180 days notice of
      termination. During the notice period that you continue to work, any reduction
      in your Compensation will be restored. At the option of the Company, following
      receipt of this notice, it may: (a) change or cure, within 15 days, the
      condition that you claim has caused the Change in Duties or Compensation, in
      which case, your rights to terminate your employment with the Company pursuant
      to this Section 2.4 shall cease (unless there occurs thereafter another Change
      in Duties or Compensation) and you shall continue in the employment of the
      Company notwithstanding the notice that you have given; (b) allow you to
      continue your employment through the date that you have specified in your
      notice; or (c) immediately terminate your employment pursuant to Section 2.3.
      If
      you terminate your employment with the Company pursuant to this Section 2.4,
      you
      shall be entitled to receive Benefits pursuant to Section 3. Your failure to
      provide the notice required by this Section 2.4 shall result in you having
      no
      right to receive any further compensation from the Company except for any base
      salary or vacation earned but not paid, plus any bonus earned and accrued by
      the
      Company through the Effective Date.

    

    3.    SEVERANCE
      BENEFITS.
      If your
      employment with the Company is terminated as described in Section 2.3 or 2.4,
      you shall be entitled to the benefits specified in subsections 3.1, 3.2, and
      3.3
      (the "Benefits") for the period of time set forth in the applicable section.
      

    

    3.1    Salary
      Payment or Continuance.
      You will
      be paid a single lump sum payment in an amount equal to 2.00 times the average
      of your annual base salary and any bonus payments for the 3 years immediately
      preceding the Effective Date. The determination of the amount of this payment
      shall be made by the Company's actuaries and benefit consultants and, absent
      manifest error, shall be final, binding and conclusive upon you and the
      Company.

    

    3.2    Continuation
      of Benefits.
      During
      the 2 years following the Effective Date (the “Severance Period”) that results
      in benefits under this Article 3, you shall continue to receive the medical,
      prescription, dental, employee life and group life insurance benefits at the
      levels to which you were entitled on the day preceding the Effective Date,
      or
      reasonably equivalent benefits, to the extent continuation is not prohibited
      or
      limited by applicable law. In no event shall substitute plans, practices,
      policies and programs provide you with benefits which are less favorable, in
      the
      aggregate, than the most favorable of those plans, practices, policies and
      programs in effect for other active employees who are similarly situated to
      the
      position / responsibilities you held immediately preceding the Effective Date.
      However, if you become re-employed with another employer and are eligible to
      receive medical or other welfare benefits under another employer-provided plan,
      Company payments for these medical and other welfare benefits shall
      cease.

    

    
      
        
        

      

      
        -3-

        
          

        

      

      
        
        

      

    

    4.    EFFECT
      OF TERMINATION ON STOCK OPTIONS AND RESTRICTED STOCK.
      In the
      event of any termination of your employment, all stock options and restricted
      stock held by you that are vested prior to the Effective Date shall be owned
      or
      exercisable in accordance with their terms; all stock options held by you that
      are not vested prior to the Effective Date shall lapse and be void; however,
      if
      your employment with the Company is terminated as described in Sections 2.3
      or
      2.4, then, if your option or restricted stock grants provide for immediate
      vesting in the event of a Change in Control, the terms of your option or
      restricted stock agreement shall control. If your option or restricted stock
      agreement does not provide for immediate vesting, you shall receive, within
      30
      days after the Effective Date, a lump sum cash distribution equal to: (a) the
      number of shares of the Company's ordinary shares that are subject to options
      or
      restricted stock grants held by you that are not vested as of the Effective
      Date
      multiplied by (b) the difference between: (i) the closing price of a share
      of
      the Company's ordinary shares on the NASDAQ National Market System as reported
      by The Wall Street Journal as of the day prior to the Effective Date (or, if
      the
      market is closed on that date, on the last preceding date on which the market
      was open for trading), and (ii) the applicable exercise prices or stock grant
      values of those non-vested shares.

    

    5.    DISCLOSURE
      OF INFORMATION.
      You
      recognize and acknowledge that, as a result of your employment by the Company,
      you have or will become familiar with and acquire knowledge of confidential
      information and certain trade secrets that are valuable, special, and unique
      assets of the Company. You agree that all that confidential information and
      trade secrets are the property of the Company. Therefore, you agree that, for
      and during your employment with the Company and continuing following the
      termination of your employment for any reason, all confidential information
      and
      trade secrets shall be considered to be proprietary to the Company and kept
      as
      the private records of the Company and will not be divulged to any firm,
      individual, or institution, or used to the detriment of the Company. The parties
      agree that nothing in this Section 6 shall be construed as prohibiting the
      Company from pursuing any remedies available to it for any breach or threatened
      breach of this Section 6, including, without limitation, the recovery of damages
      from you or any person or entity acting in concert with you.

    

    6.    GENERAL
      PROVISIONS.

    

    6.1    Other
      Plans.
      Nothing
      in this Agreement shall affect your rights during your employment to receive
      increases in compensation, responsibilities or duties or to participate in
      and
      receive benefits from any pension plan, benefit plan or profit sharing plans
      except plans which specifically address benefits of the type addressed in
      Sections 3 and 4 of this Agreement.

    

    6.2    Death
      During Severance Period.
      If you
      die during the Severance Period, any Benefits remaining to be paid to you shall
      be paid to the beneficiary designated by you to receive those Benefits (or
      in
      the absence of designation, to your surviving spouse or next of
      kin).

    
      
        
        

      

      
        -4-

        
          

        

      

      
        
        

      

    

    

    6.3    Notices.
      Any
      notices to be given under this Agreement may be effected by personal delivery
      in
      writing or by mail, registered or certified, postage prepaid with return receipt
      requested. Mailed notices shall be addressed to the parties at the addresses
      appearing on the first page of this Agreement (to the attention of the Secretary
      in the case of notices to the Company), but each party may change the delivery
      address by written notice in accordance with this Section 7.3. Notices delivered
      personally shall be deemed communicated as of actual receipt; mailed notices
      shall be deemed communicated as of the second day following deposit in the
      United States Mail.

     

        6.4    Entire
      Agreement.
      This
      Agreement supersedes all previous oral or written agreements, understandings
      or
      arrangements between the Company and you regarding a termination of your
      employment with the Company or a change in your status, scope or authority
      and
      the salary, benefits or other compensation that you receive from the Company
      as
      a result of the termination of your employment with the Company (the "Subject
      Matter"), all of which are wholly terminated and canceled. This Agreement
      contains all of the covenants and agreements between the parties with respect
      to
      the Subject Matter. Each party to this Agreement acknowledges that no
      representations, inducements, promises, or agreements, orally or otherwise,
      have
      been made with respect to the Subject Matter by any party, or anyone acting
      on
      behalf of any party, which are not embodied in this Agreement. Any subsequent
      agreement relating to the Subject Matter or any modification of this Agreement
      will be effective only if it is in writing signed by the party against whom
      enforcement of the modification is sought.

    

    6.5    Partial
      Invalidity.
      If any
      provision in this Agreement is held by a court of competent jurisdiction to
      be
      invalid, void, or unenforceable, the remaining provisions shall nevertheless
      continue in full force without being impaired or invalidated in any
      way.

    

    6.6    Governing
      Law.
      This
      Agreement shall be governed by and construed in accordance with the laws of
      the
      State of Tennessee, and it shall be enforced or challenged only in the courts
      of
      the State of Tennessee.

    

    6.7    Waiver
      of Jury Trial.
      The
      Company and you expressly waive any right to a trial by jury in any action
      or
      proceeding to enforce or defend any rights under this Agreement, and agree
      that
      any such action or proceeding shall be tried before a court and not a jury.
      You
      irrevocably waive, to the fullest extent permitted by law, any objection that
      you may have now or hereafter to the specified venue of any such action or
      proceeding and any claim that any such action or proceeding has been brought
      in
      an inconvenient forum.

    

    6.8    Miscellaneous.
      Failure
      or delay of either party to insist upon compliance with any provision of this
      Agreement will not operate as and is not to be construed to be a waiver or
      amendment of the provision or the right of the aggrieved party to insist upon
      compliance with the provision or to take remedial steps to recover damages
      or
      other relief for noncompliance. Any express waiver of any provision of this
      Agreement will not operate, and is not to be construed, as a waiver of any
      subsequent breach, irrespective of whether occurring under similar or
      dissimilar

     

    
      
        
        

      

      
        -5-

        
          

        

      

      
        
        

      

    

    circumstances.
      You may not assign any of your rights under this Agreement. The rights and
      obligations of the Company under this Agreement shall benefit and bind the
      successors and assigns of the Company. The Company agrees that if it assigns
      this Agreement to any successor company, it will ensure that its terms are
      continued.

    

    6.9    Certain
      Additional Payments by the Company.
      

    

      
      a.        The
      Company will pay you an amount (the “Additional Amount”) equal to the excise tax
      under the United States Internal Revenue Code of 1986, as amended (the “Code”),
      if any, incurred by you by reason of the payments under this Agreement and
      any
      other plan, agreement or understanding between you and the Company or its
      parent, subsidiaries or affiliates (collectively, “Separation Payments”)
      constituting excess parachute payments under Section 280G of the Code (or any
      successor provision). In addition, the Company will pay an amount equal to
      all
      excise taxes and federal, state and local income taxes incurred by you with
      respect to receipt of the Additional Amount. All determinations required to
      be
      made under this Section 6.9 including whether an Additional Amount is required
      and the amount of any Additional Amount, will be made by the independent
      auditors engaged by the Company immediately prior to the Change in Control
      (the
“Accounting Firm”), which will provide detailed supporting calculations to the
      Company and you. In computing taxes, the Accounting Firm will use the highest
      marginal federal, state and local income tax rates applicable to you and will
      assume the full deductibility of state and local income taxes for purposes
      of
      computing federal income tax liability, unless you demonstrate that you will
      not
      in fact be entitled to such a deduction for the year of payment.

    

     
      b.        The
      Additional Amount, computed assuming that all of the Separation Payments
      constitute excess parachute payments as defined in Section 280G of the Code
      (or
      any successor provision), will be paid to you at the time that the payments
      made
      pursuant to Section 3.1 is made unless the Company, prior to the Severance
      Period, provides you with an opinion of the Accounting Firm that you will not
      incur an excise tax on part or all of the Separation Payments. That opinion
      will
      be based upon the applicable regulations under Sections 280G and 4999 of the
      Code (or any successor provisions) or substantial authority within the meaning
      of Section 6662 of the Code. If that opinion applies only to part of the
      Separation Payments, the Company will pay you the Additional Amount with respect
      to the part of the Separation Payments not covered by the opinion.

    

     
      c.        The
      amount of the Additional Amount and the assumptions to be utilized in arriving
      at the determination, shall be made by the Company’s Accounting Firm, whose
      decision shall be final and binding upon both you and the Company. You must
      notify the Company in writing no later than 30 days after you are informed
      of
      any claim by the Internal Revenue Service that, if successful, would require
      the
      payment by the Company of the Additional Amount. You must also cooperate fully
      with the Company and give the Company any information reasonably requested
      relating to the claim, and take all action in connection with contesting the
      claim as the Company reasonably requests in writing from time to
      time.

     

    
      
        
        

      

      
        -6-

        
          

        

      

      
        
        

      

    

    If
      all of
      the terms and conditions in this Agreement are agreed to by you, please signify
      your agreement by executing the enclosed duplicate of this letter and returning
      it to us. At the date of your return, this letter shall constitute a fully
      enforceable Agreement between us.

    

    

                        CBRL
      GROUP,
      INC.

    

                        By:
/s/
      Michael A. Woodhouse                    

                            
      Michael A. Woodhouse

                            
      Chairman, President & Chief Executive Officer

    

    

    The
      foregoing is fully agreed to and accepted by:

    

    Date:
      August 14, 2006

    

    Employee's
      Signature:
      /s/
      Douglas E. Barber

    

    Please
      Print or Type Name:
      Douglas E. Barber

    

    Please
      Print or Type Title:
      Senior Vice President Restaurant Operations of Cracker Barrel Old Country Store,
      Inc.

     

     

     

     

     

    -7-

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