Document:

EX-10.2

Exhibit 10.2

EXECUTION COPY

	 	 	 
	 

	 	Deutsche Bank 
	 
	 	 
	 

	 	Deutsche Bank AG, London Branch

Winchester house

1 Great Winchester St,

London EC2N 2DB

Telephone: 44 20 7545 8000
	 
	 	 
	 

	 	c/o Deutsche Bank Securities Inc.

60 Wall Street

New York, NY 10005

Telephone: 212-250-2500

	 	 	 
	DATE:
	 	September 24, 2009
	 
	 	 
	TO:
	 	Gaylord Entertainment Company
	 
	 	One Gaylord Drive
	 
	 	Nashville, Tennessee 37214
	ATTENTION:
	 	General Counsel
	TELEPHONE:
	 	(615) 316-6000 
	FACSIMILE:
	 	(615) 316-6854 
	 
	 	 
	FROM:
	 	Deutsche Bank AG, London Branch
	TELEPHONE:
	 	44 20 7545 0556 
	FACSIMILE:
	 	44 11 3336 2009 
	 
	 	 
	SUBJECT:
	 	Equity Derivatives Confirmation
	 
	 	 
	REFERENCE NUMBER(S):
	 	349578 

The purpose of this facsimile agreement (this “Confirmation”) is to confirm the terms and
conditions of the transaction entered into between Deutsche Bank AG, London Branch (“Deutsche”) and
Gaylord Entertainment Company (“Counterparty”) on the Trade Date specified below (the
“Transaction”). This Confirmation constitutes a “Confirmation” as referred to in the ISDA Master
Agreement specified below. This Confirmation constitutes the entire agreement and understanding of
the parties with respect to the subject matter and terms of the Transaction and supersedes all
prior or contemporaneous written and oral communications with respect thereto.

DEUTSCHE BANK AG IS NOT REGISTERED AS A BROKER OR DEALER UNDER THE U.S. SECURITIES EXCHANGE ACT OF
1934, AS AMENDED. DEUTSCHE BANK SECURITIES INC. (“AGENT”) HAS ACTED SOLELY AS AGENT IN CONNECTION
WITH THE TRANSACTION AND HAS NO OBLIGATION, BY WAY OF ISSUANCE, ENDORSEMENT, GUARANTEE OR OTHERWISE
WITH RESPECT TO THE PERFORMANCE OF EITHER PARTY UNDER THE TRANSACTION. DEUTSCHE BANK AG, LONDON
BRANCH IS NOT A MEMBER OF THE SECURITIES INVESTOR PROTECTION CORPORATION (SIPC).

The definitions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions”), as published by the International Swaps and Derivatives Association, Inc., are
incorporated into this Confirmation. In the event of any inconsistency between the Equity
Definitions and the terms of this Confirmation, the terms of this Confirmation shall govern. For
the purposes of the Equity Definitions, each reference herein to a Note Hedging Unit shall be
deemed to be a reference to a Call or an Option, as context requires.

 

 

This Confirmation evidences a complete and binding agreement between Deutsche and Counterparty as
to the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement (the “Agreement”) in the form of the
ISDA 2002 Master Agreement as if Deutsche and Counterparty had executed an agreement in such form
(without any Schedule but with the elections set forth in this Confirmation). For the avoidance of
doubt, the Transaction shall be the only transaction under the Agreement.

The Transaction shall be considered a Share Option Transaction for purposes of the Equity
Definitions, and shall have the following terms:

	 	 	 
	General:
	 	 
	 
	 	 
	Trade Date:

	 	September 24, 2009.
	 
	 	 
	Effective Date:

	 	The closing date for the initial issuance of the Convertible Notes.
	 
	 	 
	Transaction Style:

	 	Modified American Option, as described below under “Procedure for
Exercise”.
	 
	 	 
	Transaction Type:

	 	Note Hedging Units.
	 
	 	 
	Seller:

	 	Deutsche.
	 
	 	 
	Buyer:

	 	Counterparty.
	 
	 	 
	Shares:

	 	The common stock, par value USD 0.01 per share, of Counterparty.
	 
	 	 
	Convertible Notes:

	 	The 3.75% Convertible Senior Notes of Counterparty due October 1,
2014, offered pursuant to an Offering Memorandum to be dated as of
September 29, 2009 and issued pursuant to the indenture to be
dated as of the closing date of the initial issuance of the
Convertible Notes, by and between Counterparty and U.S. Bank
National Association, as trustee (as may be amended, modified or
supplemented from time to time, but only if such amendment,
modification or supplement is consented to by Deutsche in writing,
the “Indenture”). Certain defined terms used herein have the
meanings assigned to them in the Indenture as described in the
Offering Memorandum. In the event of any inconsistency between the
terms defined in the Indenture or Offering Memorandum and this
Confirmation, this Confirmation shall govern. For the avoidance of
doubt, references herein to provisions of the Indenture are based
on the description of the Convertible Notes set forth in the
Offering Memorandum. If the relevant provisions of the Indenture
differ in any material respect from those described in the
Offering Memorandum, or any relevant sections of the Indenture are
changed, added or renumbered following execution of this
Confirmation, the parties will, if appropriate, amend this
Confirmation in good faith to preserve the economic intent of the
parties.
	 
	 	 
	Number of Note Hedging Units:

	 	300,000. For the avoidance of doubt, the Number of Note Hedging
Units shall be reduced by each exercise of Note Hedging Units
hereunder.

2

 

	 	 	 
	Note Hedging Unit Entitlement:

	 	USD1,000 divided by the Strike Price. Notwithstanding anything to
the contrary herein or in the Agreement (including without
limitation the provisions of Calculation Agent Adjustment), in no
event shall the Note Hedging Unit Entitlement at any time be
greater than the “Conversion Rate” (as such term is defined in the
Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Rights”) at such time.
	 
	 	 
	Strike Price:

	 	As provided in Annex A to this Confirmation.
	 
	 	 
	Applicable Percentage:

	 	As provided in Annex A to this Confirmation.
	 
	 	 
	Premium:

	 	As provided in Annex A to this Confirmation.
	 
	 	 
	Premium Payment Date:

	 	The Effective Date.
	 
	 	 
	Exchange:

	 	The New York Stock Exchange.
	 
	 	 
	Related Exchanges:

	 	All Exchanges.
	 
	 	 
	Calculation Agent:

	 	Deutsche. The Calculation Agent shall, upon written request by
Counterparty, provide a written explanation of any calculation or
adjustment made by it including, where applicable, a description
of the methodology and data applied.
	 
	 	 
	Procedure for Exercise:
	 	 
	 
	 	 
	Potential Exercise Dates:

	 	Each Conversion Date.
	 
	 	 
	Conversion Date:

	 	Each “Conversion Date” as defined in the Indenture as described in
the Offering Memorandum under “Description of Notes—Conversion
Procedures-Procedures to be Followed by a Holder”.
	 
	 	 
	Required Exercise on Conversion Dates:

	 	On each Conversion Date, a number of Note Hedging Units equal to
the number of Convertible Notes in denominations of USD1,000
principal amount submitted for conversion in respect of such
Conversion Date in accordance with the terms of the Indenture
shall become exercisable and be exercised automatically, subject
to “Notice of Exercise” below.
	 
	 	 
	Expiration Date:

	 	October 1, 2014
	 
	 	 
	Multiple Exercise:

	 	Applicable, as provided under “Required Exercise on Conversion
Dates”.
	 
	 	 
	Automatic Exercise:

	 	As provided under “Required Exercise on Conversion Dates”.
	 
	 	 
	Note Settlement Method:

	 	With respect to any Convertible Notes submitted for conversion,
the applicable settlement method elected by Counterparty pursuant
to the Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Procedures-Settlement Upon
Conversion”, being

3

 

	 	 	 
	 

	 	one of the following: (i) delivery solely of
Shares (other than cash in respect of fractional Shares); (ii)
delivery of a combination of cash and Shares; and (iii) delivery
solely of cash.
	 
	 	 
	Notice of Exercise:

	 	Notwithstanding anything to the contrary in the Equity
Definitions, in order to exercise any Note Hedging Units,
Counterparty must notify Deutsche in writing (and use reasonable
efforts to confirm receipt by telephone to Deutsche’s Origination
Convertible Desk (telephone: 212-250-5600)) prior to 5:00 PM, New
York City time, on the day that is two Scheduled Trading Days
prior to the first day of the “Settlement Period”, as defined in
the Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Procedures-Settlement Upon
Conversion”, relating to the Convertible Notes converted on the
Conversion Date relating to the relevant Exercise Date (the
“Notice Deadline”) of (i) the number of Note Hedging Units being
exercised on such Exercise Date (which shall equal the number of
Convertible Notes converted on the Conversion Date corresponding
to such Exercise Date), (ii) the scheduled commencement date of
the “Settlement Period” and the scheduled settlement date under
the Indenture for the Convertible Notes converted on such
Conversion Date and (iii) the Note Settlement Method and, if
applicable, the “Specified Dollar Amount” (as defined in the
Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Procedures-Settlement Upon
Conversion”) applicable to such Convertible Notes; provided that
if Counterparty fails to timely provide the notice described in
this clause (iii), then the Note Settlement Method shall be deemed
to be a combination of Shares and cash and the “Specified Dollar
Amount” shall be deemed to be USD 1,000 for purposes of
calculating the Settlement Amount (as defined below); provided
further that in respect of Convertible Notes with a Conversion
Date during the period beginning on, and including the
50th “Scheduled Trading Day”, as defined in the
Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Rights”, prior to the “Maturity
Date”, as defined in the Indenture as described in the Offering
Memorandum under “Description of Notes—Conversion
Procedures-Settlement Upon Conversion”, and ending on the close of
business on the second “Scheduled Trading Day” immediately
preceding the “Maturity Date”, (x) the Notice Deadline in respect
of the information set forth in clauses (i) and (ii) above shall
be 5:00 PM, New York City time, on the “Scheduled Trading Day”
immediately preceding the “Maturity Date” and (y) the Notice
Deadline in respect of the information set forth in clause (iii)
above shall be 5:00 PM, New York City time, on July 1, 2014.
	 
	 	 
	 

	 	Counterparty acknowledges that it has elected settlement in a
combination of Shares and cash with a “Specified Dollar Amount” of
USD 1,000 as its initial Note Settlement Method pursuant to the
Indenture. Each delivery of a Notice of Exercise in which the
designated Note Settlement Method differs from the Note Settlement
Method specified in the previous Notice of Exercise (or from the
initial Note Settlement Method, in the case of the first Notice of
Exercise)

4

 

	 	 	 
	 

	 	shall constitute a representation and warranty to
Deutsche, and it shall be a condition to the effectiveness of any
such Notice of Exercise, that at the time of Counterparty’s
election of such newly chosen Note Settlement Method Counterparty
was not in possession of any material non-public information with
respect to Counterparty or the Shares.
	 
	 	 
	Settlement Terms:
	 	 
	 
	 	 
	Net Share Settlement: 

	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of
the Equity Definitions, and subject to “Notice of Exercise” above,
in respect of any Exercise Date occurring on a Conversion Date,
Deutsche shall deliver to Counterparty, on the related Settlement
Date, the Settlement Amount. For the avoidance of doubt, to the
extent Deutsche is obligated to deliver Shares hereunder, the
provisions of Sections 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity
Definitions shall be applicable to any such delivery of Shares,
except that all references in such provisions to “Physical
Settlement” and “Physically-settled” shall be read as references
to “Net Share Settlement” and “Net Share Settled”; and provided
that the Representation and Agreement contained in Section 9.11 of
the Equity Definitions shall be modified by excluding any
representations therein relating to restrictions, obligations,
limitations or requirements under applicable securities laws as a
result of the fact that Counterparty is the issuer of the Shares.
	 
	 	 
	Settlement Amount: 

	 	The product of the Applicable Percentage and a number of Shares
and/or amount of cash in USD equal to:
	 
	 	 
	 

	 	(a) if Counterparty has elected to deliver only Shares to satisfy
the “Conversion Obligation” (as defined in the Indenture as
described in the Offering Memorandum under “Description of
Notes—Conversion Rights”), a number of shares equal to the lesser
of (1) the sum, for each “Settlement Period Trading Day” (as
defined in the Indenture as described in the Offering Memorandum
under “Description of Notes—Conversion Procedures-Settlement Upon
Conversion”) during the related “Settlement Period”, of the
greater of (x) the “Daily Net Share Settlement Value” (as defined
in the Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Procedures-Settlement Upon
Conversion”) calculated as if the “Specified Dollar Amount” were
USD 1,000 and (y) zero and (2) the result of clause (1) determined
as if the “Daily Net Share Settlement Value” (as defined in the
Indenture as described in the Offering Memorandum under
“Description of Notes-Conversion Procedures-Settlement Upon
Conversion”) for each “Settlement Period Trading Day” during the
related “Settlement Period” were the “Daily Net Share Settlement
Value” on the last “Settlement Period Trading Day” of such
“Settlement Period”;
	 
	 	 
	 

	 	(b) if the applicable “Specified Dollar Amount” is greater than
zero and less than USD 1,000, a number of shares equal to the sum,
for each “Settlement Period Trading Day” during the related
“Settlement

5

 

	 	 	 
	 

	 	Period”, of the greater of (1) the “Daily Net Share
Settlement Value”, calculated as if the “Specified Dollar Amount”
were USD 1,000 and (2) zero; or
	 
	 	 
	 

	 	(c) if the applicable “Specified Dollar Amount” is greater than or
equal to USD 1,000, (1) a number of shares equal to the sum, for
each “Settlement Period Trading Day” during the related
“Settlement Period”, of the greater of (x) the “Daily Net Share
Settlement Value”, and (y) zero, and (2) an amount of cash equal
to the excess, if any, of (x) the sum, for each “Settlement Period
Trading Day” during the related “Settlement Period”, of the lesser
of (i) the “Daily Conversion Value” for such “Settlement Period
trading Day” and (ii) 1/45th of the “Specified Dollar
Amount”, over (y) USD 1,000;
	 
	 	 
	 

	 	provided that, in the cases of (a) and (b), the Settlement Amount
shall be calculated as if (1) the relevant “Settlement Period”
consisted of 60 “Trading Days” commencing on the earlier of (x)
the third “Scheduled Trading Day” after the Conversion Date and
(y) the 62nd “Scheduled Trading Day” prior to the “Maturity Date”
and (2) the “Daily Net Share Settlement Value”, the “Daily
Conversion Value” and the reference to “1/45th” in
clause (c) immediately above were determined using “60 ” rather
than “45”;
	 
	 	 
	 

	 	provided further that such obligation shall be determined
excluding any Shares or cash that Counterparty is obligated to
deliver to holder(s) of the Convertible Notes as a result of any
adjustments to the “Conversion Rate” for the issuance of
additional Shares or cash as set forth in the Indenture as
described in the Offering Memorandum under “Description of
Notes—Adjustment to Conversion Rate Upon Conversion Upon
Make-Whole Fundamental Changes” (a “Fundamental Change
Adjustment”) or any voluntary adjustment (whether or not pursuant
to the Indenture) (a “Discretionary Adjustment”). If Counterparty
is permitted or required to exercise discretion under the terms of
the Indenture with respect to any determination, calculation or
adjustment relevant to conversion of the Convertible Notes
including, but not limited to, the volume-weighted average price
of the Shares, Counterparty shall consult with Deutsche with
respect thereto and the Calculation Agent shall make such
determination, calculation or adjustment for purposes of the
Transaction. For the avoidance of doubt, if the “Daily Conversion
Value” for each of the “Settlement Period Trading Days” in the
relevant “Settlement Period” is less than or equal to USD 1,000
divided by the number of “Settlement Period Trading Days” in the
relevant “Settlement Period”, Deutsche will have no delivery
obligation hereunder.
	 
	 	 
	Notice of Delivery Obligation:

	 	No later than the Scheduled Trading Day immediately following the
last day of the relevant “Settlement Period”, Counterparty shall
give Deutsche notice of the final number of Shares and/or cash
comprising the Settlement Amount (it being understood, for the
avoidance of doubt, that the requirement of Counterparty to
deliver such notice shall not limit Counterparty’s obligations
with respect to Notice of Exercise, as set forth above, in any
way).

6

 

	 	 	 
	Settlement Date:

	 	In respect of an Exercise Date occurring on a Conversion Date, the
settlement date for the Shares or cash to be delivered under the
Convertible Notes under the terms of the Indenture; provided that
the Settlement Date will not be prior to the later of (i) the date
that is one Settlement Cycle following the final day of the
“Settlement Period” and (ii) the Exchange Business Day immediately
following the date on which Counterparty gives notice to Deutsche
of such Settlement Date prior to 5:00 PM, New York City time.
	 
	 	 
	Settlement Currency:

	 	USD.
	 
	 	 
	Restricted Certificated Shares:

	 	Notwithstanding anything to the contrary in the Equity
Definitions, Deutsche may, in whole or in part, deliver Shares in
certificated form representing the Share portion of the Settlement
Amount to Counterparty in lieu of delivery through the Clearance
System.
	 
	 	 
	Share Adjustments:
	 	 
	 
	 	 
	Potential Adjustment Events:

	 	Notwithstanding Section 11.2(e) of the Equity Definitions, a
“Potential Adjustment Event” means any occurrence of any event or
condition, as set forth in the Indenture as described in the
Offering Memorandum under “Description of Notes—Conversion Rate
Adjustments”, that would result in an adjustment to the Conversion
Rate of the Convertible Notes; provided that in no event shall
there be any adjustment hereunder as a result of an adjustment to
the Conversion Rate pursuant to a Fundamental Change Adjustment or
a Discretionary Adjustment.
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment, provided that, notwithstanding
Section 11.2(c) of the Equity Definitions, upon any adjustment to
the Conversion Rate of the Convertible Notes pursuant to the
Indenture (other than a Fundamental Change Adjustment or a
Discretionary Adjustment), the Calculation Agent shall make a
corresponding adjustment to any one or more of the Strike Price,
Number of Note Hedging Units, the Note Hedging Unit Entitlement
and any other variable relevant to the exercise, settlement,
payment or other terms of the Transaction.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Merger Events:

	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a
“Merger Event” means the occurrence of any event or condition set
forth in the Indenture as described in the Offering Memorandum
under “Description of Notes—Consolidation, Merger and Sale of
Assets”.
	 
	 	 
	Notice of Merger Consideration:

	 	Upon the occurrence of a Merger Event that causes the Shares to be
converted into or exchanged for more than a single type of
consideration (determined based in part upon the form of election
of the holders of Shares), Counterparty shall promptly (but in any
event prior to the effective date of the Merger Event) notify the
Calculation Agent

7

 

	 	 	 
	 

	 	of the weighted average of the kind and amounts
of consideration to be received by the holders of Shares in any
Merger Event who affirmatively make such an election.
	 
	 	 
	Consequences of Merger Events:

	 	Notwithstanding Section 12.2 of the Equity Definitions, upon the
occurrence of a Merger Event, the Calculation Agent shall make the
corresponding adjustment in respect of any adjustment under the
Indenture to any one or more of the nature of the Shares, the
Strike Price, the Number of Note Hedging Units, the Note Hedging
Unit Entitlement and any other variable relevant to the exercise,
settlement, payment or other terms of the Transaction, to the
extent an analogous adjustment is made under the Indenture;
provided that such adjustment shall be made without regard to any
adjustment to the Conversion Rate for the issuance of additional
shares or cash pursuant to a Fundamental Change Adjustment or a
Discretionary Adjustment; and provided further that the
Calculation Agent may limit or alter any such adjustment
referenced in this paragraph so that the fair value of the
Transaction to Deutsche is not reduced as a result of such
adjustment.
	 
	 	 
	Nationalization, Insolvency and Delisting:

	 	Cancellation and Payment (Calculation Agent Determination);
provided that in addition to the provisions of Section
12.6(a)(iii) of the Equity Definitions, it shall also constitute a
Delisting if the Exchange is located in the United States and the
Shares are not immediately re-listed, re-traded or re-quoted on
any of the New York Stock Exchange, The NASDAQ Global Select
Market or The NASDAQ Global Market (or their respective
successors); if the Shares are immediately re-listed, re-traded or
re-quoted on any such exchange or quotation system, such exchange
or quotation system shall be deemed to be the Exchange. For the
avoidance of doubt, the occurrence of any event that is a Merger
Event and would otherwise have been a Delisting will have the
consequence specified for the relevant Merger Event.
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable; provided that Section 12.9(a)(ii) of the Equity
Definitions is hereby amended (i) by the replacement of the word
“Shares” with “Hedge Positions” in clause (X) thereof; (ii) by
adding the phrase “or announcement” immediately after the phrase
“due to the promulgation” in the third line thereof and adding the
phrase “formal or informal” before the word “interpretation” in
the same line; and (iii) immediately following the word
“Transaction” in clause (X) thereof, adding the phrase “in the
manner contemplated by the Hedging Party on the Trade Date, unless
the illegality is due to an act or omission of the party seeking
to elect termination of the Transaction”.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Insolvency Filing:

	 	Applicable
	 
	 	 
	Increased Cost of Hedging:

	 	Applicable

8

 

	 	 	 
	Hedging Party:

	 	Deutsche for all applicable Additional Disruption Events
	 
	 	 
	Determining Party:

	 	Deutsche for all applicable Additional Disruption Events
	 
	 	 
	Acknowledgements:
	 	 
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgements

Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgements:

	 	Applicable

Mutual Representations: Each of Deutsche and Counterparty represents and warrants to, and agrees with, the other party that:

	 	(i)	 	Tax Disclosure. Notwithstanding anything to the contrary herein, in the Equity Definitions
or in the Agreement, and notwithstanding any express or implied claims of exclusivity or
proprietary rights, the parties (and each of their employees, representatives or other agents)
are authorized to disclose to any and all persons, beginning immediately upon commencement of
their discussions and without limitation of any kind, the tax treatment and tax structure of the
Transaction, and all materials of any kind (including opinions or other tax analyses) that are
provided by either party to the other relating to such tax treatment and tax structure.
	 
	 	(ii)	 	Commodity Exchange Act. It is an “eligible contract participant” within the meaning of
Section 1a(12) of the U.S. Commodity Exchange Act, as amended (the “CEA”). The Transaction has
been subject to individual negotiation by the parties. The Transaction has not been executed or
traded on a “trading facility” as defined in Section 1a(33) of the CEA. It has entered into the
Transaction with the expectation and intent that the Transaction shall be performed to its
termination date.
	 
	 	(iii)	 	Securities Act. It is a “qualified institutional buyer” as defined in Rule 144A under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), or an “accredited investor” as
defined under the Securities Act.
	 
	 	(iv)	 	Investment Company Act. It is a “qualified purchaser” as defined under the U.S. Investment
Company Act of 1940, as amended (the “Investment Company Act”).
	 
	 	(v)	 	ERISA. The assets used in the Transaction (1) are not assets of any “plan” (as such term is
defined in Section 4975 of the U.S. Internal Revenue Code (the “Code”)) subject to Section 4975
of the Code or any “employee benefit plan” (as such term is defined in Section 3(3) of the U.S.
Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) subject to Title I of
ERISA, and (2) do not constitute “plan assets” within the meaning of Department of Labor
Regulation 2510.3-101, 29 CFR Section 2510-3-101.

Counterparty Representations: In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Counterparty represents, warrants, acknowledges and covenants that:

	 	(i)	 	Counterparty is not as of the Trade Date, and shall not be after giving effect to the
transactions contemplated hereby, “insolvent” (as such term is defined in Section 101(32) of the
U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and
Counterparty would be able to

9

 

	 	 	 	purchase a number of Shares equal to the Number of Shares in
compliance with the laws of the jurisdiction of Counterparty’s incorporation or organization.
	 
	 	(ii)	 	Counterparty shall provide written notice to Deutsche within 24 hours of obtaining
knowledge of the occurrence of any event that would constitute an Event of Default, a Potential
Event of Default, a Potential Adjustment Event, a Merger Event or any other Extraordinary Event;
provided, however, that should Counterparty be in possession of material non-public information
regarding Counterparty, Counterparty shall not communicate such information to Deutsche in
connection with this Transaction.
	 
	 	(iii)	 	Counterparty has (and shall at all times during the Transaction have) the capacity and
authority to invest directly in the Shares underlying the Transaction and has not entered into
the Transaction with the intent to avoid any regulatory filings.
	 
	 	(iv)	 	Counterparty’s financial condition is such that it has no need for liquidity with respect
to its investment in the Transaction and no need to dispose of any portion thereof to satisfy
any existing or contemplated undertaking or indebtedness.
	 
	 	(v)	 	Counterparty’s investments in and liabilities in respect of the Transaction, which it
understands are not readily marketable, are not disproportionate to its net worth, and
Counterparty is able to bear any loss in connection with the Transaction, including the loss of
its entire investment in the Transaction.
	 
	 	(vi)	 	The representations and warranties of Counterparty set forth in Section 3 of the Agreement
and Section 2 of the Purchase Agreement dated as of the Trade Date between Counterparty and
Deutsche Bank Securities Inc. as representative of the initial purchasers party thereto (the
“Purchase Agreement”) are true and correct as of the Trade Date and the Effective Date, and are
hereby deemed to be repeated to Deutsche as of such dates as if set forth herein.
	 
	 	(vii)	 	Counterparty understands, agrees and acknowledges that Deutsche has no obligation or
intention to register the Transaction under the Securities Act, any state securities law or
other applicable federal securities law.
	 
	 	(viii)	 	Counterparty is not, and after giving effect to the transactions contemplated hereby will
not be, an “investment company” as such term is defined in the Investment Company Act.
	 
	 	(ix)	 	Counterparty understands, agrees and acknowledges that no obligations of Deutsche to it
hereunder shall be entitled to the benefit of deposit insurance and that such obligations shall
not be guaranteed by any affiliate of Deutsche or any governmental agency.
	 
	 	(x)	 	(A) Counterparty is acting for its own account, and it has made its own independent
decisions to enter into the Transaction and as to whether the Transaction is appropriate or
proper for it based upon its own judgment and upon advice from such advisers as it has deemed
necessary, (B) Counterparty is not relying on any communication (written or oral) of Deutsche or
any of its affiliates as investment advice or as a recommendation to enter into the Transaction
(it being understood that information and explanations related to the terms and conditions of
the Transaction shall not be considered investment advice or a recommendation to enter into the
Transaction) and (C) no communication (written or oral) received from Deutsche or any of its
affiliates shall be deemed to be an assurance or guarantee as to the expected results of the
Transaction.

10

 

	 	(xi)	 	Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty
acknowledges that Deutsche is not making any representations or warranties with respect to the
treatment of the Transaction under FASB Statements 128, 133, 149 or 150 (or under any successor
statement), EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue statements), under
FASB’s Liabilities & Equity Project, or under any other accounting guidance.
	 
	 	(xii)	 	Counterparty is not entering into the Transaction for the purpose of (i) creating actual
or apparent trading activity in the Shares (or any security convertible into or exchangeable for
the Shares) or (ii) raising or depressing or otherwise manipulating the price of the Shares (or
any security convertible into or exchangeable for the Shares), in either case in violation of
the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).
	 
	 	(xiii)	 	Counterparty’s filings under the Securities Act, the Exchange Act, and other applicable
securities laws that are required to be filed have been filed and, as of the respective dates
thereof and as of the date of this representation, there is no misstatement of material fact
contained therein or omission of a material fact required to be stated therein or necessary to
make the statements made therein, in the light of the circumstances under which they were made,
not misleading.
	 
	 	(xiv)	 	Without limiting the generality of Section 3(a)(iii) of the Agreement, Counterparty has
not violated, and shall not directly or indirectly violate, any applicable law (including,
without limitation, the Securities Act and the Exchange Act and the regulations promulgated
thereunder, including Rule 13e-1 and Rule 13e-4 under the Exchange Act) in connection with the
Transaction. Counterparty acknowledges and agrees to be bound by the Conduct Rules of the
National Association of Securities Dealers, Inc. applicable to transactions in options, and
further agrees not to violate the position and exercise limits set forth therein.
	 
	 	(xv)	 	The Transaction, and any repurchase of the Shares by Counterparty in connection with the
Transaction, has been approved by Counterparty’s board of directors and any such repurchase has
been, or shall when so required be, publicly disclosed in its periodic filings under the
Exchange Act and its financial statements and notes thereto.
	 
	 	(xvi)	 	Counterparty shall deliver to Deutsche an opinion of counsel, dated as of the Trade Date
and reasonably acceptable to Deutsche in form and substance, with respect to the matters set
forth in Section 3(a) of the Agreement and such other matters as Deutsche may reasonably
request.

Miscellaneous:

Netting and Set-Off. The parties hereto agree that the Transaction shall not be subject to
netting or set off with any other transaction.

Qualified Financial Contracts. It is the intention of the parties that, in respect of
Counterparty, (a) the Transaction shall constitute a “qualified financial contract” within the
meaning of 12 U.S.C. Section 1821(e)(8)(D)(i) and (b) a Non-defaulting Party’s rights under
Sections 5 and 6 of the Agreement constitute rights of the kind referred to in 12 U.S.C. Section
1821(e)(8)(A).

Method of Delivery. Whenever delivery of funds or other assets is required hereunder by or to
Counterparty, such delivery shall be effected through Agent. In addition, all notices, demands
and communications of any kind relating to the Transaction between Deutsche and Counterparty
shall be transmitted exclusively through Agent.

Staggered Settlement. Deutsche may, by notice to Counterparty prior to any Settlement Date (a
“Nominal Settlement Date”), elect to deliver the Shares deliverable on such Nominal Settlement
Date on two or more dates

11

 

(each, a “Staggered Settlement Date”) or at two or more times on the
Nominal Settlement Date as follows: (i) in such notice, Deutsche will specify to Counterparty
the related Staggered Settlement Dates (each of which will be on or prior to such Nominal
Settlement Date, but not prior to the beginning of the related “Settlement Period”) or delivery
times and how it will allocate the Shares it is required to deliver under “Net Share Settlement”
above among the Staggered Settlement Dates or delivery times; and (ii) the aggregate number of
Shares that Deutsche will deliver to Counterparty hereunder on all such Staggered Settlement
Dates and delivery times will equal the number of Shares that Deutsche would otherwise be
required to deliver on such Nominal Settlement Date.

Additional Termination Events. The occurrence of (i) an “Event of Default” with respect to
Counterparty under the terms of the Convertible Notes as set forth in the Indenture as described
in the Offering Memorandum under “Description of Notes—Events of Default; Notice and Waiver”
that either (a) has remained uncured for a period of 60 consecutive calendar days or (b) has
resulted in the acceleration of the Convertible Notes pursuant to the terms of the Indenture,
(ii) an Amendment Event, or (iii) a determination by Counterparty that Deutsche is a
“Disqualified Person” or any action by Counterparty to cause any shares owned by Deutsche to be
subject to redemption or to any suspension of rights of stock ownership (in each case pursuant
to or within the meaning of Article IV(D) of the Restated Certificate of Incorporation of
Counterparty or any analogous or successor provisions) shall be an Additional Termination Event,
in each case with the Transaction as the sole Affected Transaction and Counterparty as the sole
Affected Party and Deutsche as the party entitled to designate an Early Termination Date
pursuant to Section 6(a) of the Agreement .

“Amendment Event” means that Counterparty amends, modifies, supplements or obtains a waiver with
respect to any term of the Indenture or the Convertible Notes if such amendment, modification,
supplement or waiver has an adverse effect on this Transaction or Deutsche’s ability to hedge
all or a portion of this Transaction, with such determination to be made in the sole discretion
of the Calculation Agent. For the avoidance of doubt, Counterparty electing to increase the
Conversion Rate pursuant to a Discretionary Adjustment shall not constitute an Amendment Event.

Disposition of Hedge Shares. Counterparty hereby agrees that if, in the good faith reasonable
judgment of Deutsche, based upon advice of counsel, the Shares (the “Hedge Shares”) acquired by
Deutsche for the purpose of hedging its obligations pursuant to the Transaction cannot be sold
in the public market by Deutsche without registration under the Securities Act, Counterparty
shall, at its election: (i) in order to allow Deutsche to sell the Hedge Shares in a registered
offering, make available to Deutsche an effective registration statement under the Securities
Act to cover the resale of such Hedge Shares and (A) enter into an agreement, in form and
substance satisfactory to Deutsche, substantially in the form of an underwriting agreement for a
registered offering, (B) provide accountant’s “comfort” letters in customary form for registered
offerings of equity securities, (C) provide disclosure opinions of nationally recognized outside
counsel to Counterparty reasonably acceptable to Deutsche, (D) provide other customary opinions,
certificates and closing documents customary in form for registered offerings of equity
securities and (E) afford Deutsche a reasonable opportunity to conduct a “due diligence”
investigation with respect to Counterparty customary in scope for underwritten offerings of
equity securities; provided, however, that if Deutsche, in its sole reasonable discretion, is
not satisfied with access to due diligence materials, the results of its due diligence
investigation, or the procedures and documentation for the registered offering referred to
above, then clause (ii) or clause (iii) of this paragraph shall apply at the election of
Counterparty; (ii) in order to allow Deutsche to sell the Hedge Shares in a private placement,
enter into a private placement agreement substantially similar to private placement purchase
agreements customary for private placements of equity securities, in form and substance
satisfactory to Deutsche, including customary representations, covenants, blue sky and other
governmental filings and/or registrations, indemnities to Deutsche, due diligence rights (for
Deutsche or any designated buyer of the Hedge Shares from Deutsche), opinions and certificates
and such other documentation as is customary for private placements agreements, all reasonably
acceptable to Deutsche (in which case, the Calculation Agent shall make any adjustments to the
terms of the Transaction that are necessary, in its reasonable judgment, to compensate Deutsche
for any discount from the public market price of the Shares incurred on the sale of Hedge Shares
in a private placement); or (iii) purchase the Hedge Shares from Deutsche at the VWAP Price on
such Exchange Business Days, and in the amounts, requested by Deutsche. “VWAP Price” means, on
any Exchange Business Day, the per Share volume-weighted average price as displayed under the
heading “Bloomberg VWAP” on Bloomberg page GET.N  <equity> AQR (or any successor thereto)
in respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such Exchange
Business Day (or if such
volume-weighted average price is unavailable, the market value of one
Share on such

12

 

Exchange Business Day, as determined by the Calculation Agent using a
volume-weighted method). This paragraph shall survive the termination, expiration or early
unwind of the Transaction.

Status of Claims in Bankruptcy. Deutsche acknowledges and agrees that this Confirmation is not
intended to convey to Deutsche rights with respect to the Transaction that are senior to the
claims of common stockholders in any U.S. bankruptcy proceedings of Counterparty; provided that
nothing herein shall limit or shall be deemed to limit Deutsche’s right to pursue remedies in
the event of a breach by Counterparty of its obligations and agreements with respect to the
Transaction; provided, further, that nothing herein shall limit or shall be deemed to limit
Deutsche’s rights in respect of any transactions other than the Transaction.

No Collateral. Notwithstanding any provision of this Confirmation, the Agreement, Equity
Definitions, or any other agreement between the parties to the contrary, the obligations of
Counterparty under the Transaction are not secured by any collateral.

Securities Contract; Swap Agreement. The parties hereto agree and acknowledge that Deutsche is
a “financial institution,” “swap participant” and “financial participant” within the meaning of
Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto further
agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is
defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder or in connection herewith is a “termination value,” “payment amount” or
“other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a
“settlement payment” or a “transfer” within the meaning of Section 546 of the Bankruptcy Code,
and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code,
with respect to which each payment and delivery hereunder or in connection herewith is a
“termination value,” a “payment amount” or “other transfer obligation” within the meaning of
Section 362 of the Bankruptcy Code and a “transfer” within the meaning of Section 546 of the
Bankruptcy Code, and (B) that Deutsche is entitled to the protections afforded by, among other
sections, Section 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2),
555, 560 and 561 of the Bankruptcy Code.

Repurchase Notices. Counterparty shall, on any day on which Counterparty effects any repurchase
of Shares, provide Deutsche with a written notice of such repurchase (a “Repurchase Notice”) on
such day if, following such repurchase, the Unit Equity Percentage as determined on such day is
greater by 0.5% or more than the Unit Equity Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater by 0.5% or more
than the Unit Equity Percentage as of the date hereof). The “Unit Equity Percentage” as of any
day is the fraction, expressed as a percentage, (i) the numerator of which is the product of the
Applicable Percentage, the number of Note Hedging Units and the Note Hedging Unit Entitlement,
and (ii) the denominator of which is the number of Shares outstanding on such day. Counterparty
agrees to indemnify and hold harmless Deutsche and its affiliates and their respective officers,
directors, employees, advisors, agents and controlling persons (each, a “Section 16 Indemnified
Person”) from and against any and all losses (including losses relating to Deutsche’s hedging
activities as a consequence of becoming, or of the risk of becoming, a Section 16 “insider”,
including without limitation, any forbearance from hedging activities or cessation of hedging
activities and any losses in connection therewith with respect to the Transaction), claims,
damages, judgments, liabilities and expenses (including reasonable attorney’s fees), joint or
several, to which a Section 16 Indemnified Person may become subject, as a result of
Counterparty’s failure to provide Deutsche with a Repurchase Notice on the day and in the manner
specified in this paragraph, and to reimburse, upon written request, each of such Section 16
Indemnified Persons for any reasonable legal or other expenses incurred in connection with
investigating, preparing for, providing testimony or other evidence in connection with or
defending any of the foregoing. If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against the Section 16
Indemnified Person, such Section 16 Indemnified Person shall promptly notify Counterparty in
writing, and Counterparty, upon request of the Section 16 Indemnified Person, shall retain
counsel reasonably satisfactory to the Section 16 Indemnified Person to represent the Section 16
Indemnified Person and any others Counterparty may designate in such proceeding and shall pay
the fees and expenses of such counsel related to such proceeding. Counterparty shall be
relieved from liability to the extent that the Section 16 Indemnified Person fails promptly to
notify Counterparty of any action commenced against it in respect of which indemnity may be
sought hereunder; provided that failure

13

 

to notify Counterparty (x) shall not relieve
Counterparty from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and (y) shall not, in any event, relieve Counterparty from any liability that it
may have otherwise than on account of this indemnity agreement. Counterparty shall not be
liable for any settlement of any proceeding effected without its written consent, but if settled
with such consent or if there be a final judgment for the plaintiff, Counterparty agrees to
indemnify any Section 16 Indemnified Person from and against any loss or liability by reason of
such settlement or judgment. Counterparty shall not, without the prior written consent of the
Section 16 Indemnified Person, effect any settlement of any pending or threatened proceeding in
respect of which any Section 16 Indemnified Person is or could have been a party and indemnity
could have been sought hereunder by such Section 16 Indemnified Person, unless such settlement
includes an unconditional release of such Section 16 Indemnified Person from all liability on
claims that are the subject matter of such proceeding on terms reasonably satisfactory to such
Section 16 Indemnified Person. If the indemnification provided for in this paragraph is
unavailable to a Section 16 Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then Counterparty, in lieu of indemnifying such
Section 16 Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Section 16 Indemnified Person as a result of such losses, claims, damages or liabilities. The
remedies provided for in this paragraph are not exclusive and shall not limit any rights or
remedies that may otherwise be available to any Section 16 Indemnified Person at law or in
equity. The indemnity and contribution agreements contained in this paragraph shall remain
operative and in full force and effect regardless of the termination of the Transaction.

Foreign Ownership Notices. Promptly following any determination by Counterparty of the
percentage (“Foreign Ownership Percentage”) of its “capital stock” owned of record or voted by
“aliens” and other persons described in Section 310 (b)(4) of the Communications Act of 1934 (or
any successor provisions) (in each case within the meaning of such Section 310(b)(4)) and on any
date on which Counterparty is obligated to deliver a Repurchase Notice, Counterparty shall
provide Deutsche with a written notice setting out the Foreign Ownership Percentage and the Pro
Forma Foreign Ownership Percentage; provided, however, that should Counterparty be in
possession of material non-public information regarding Counterparty, Counterparty shall not
communicate such information to Deutsche in connection with this Transaction. “Pro Forma Foreign
Ownership Percentage” means the Foreign Ownership Percentage determined as if Deutsche owned a
number of Shares equal to the product of the Applicable Percentage, the Number of Note Hedging
Units and the Note Hedging Unit Entitlement.

Alternative Calculations and Deutsche Payment on Early Termination and on Certain Extraordinary
Events. If Deutsche owes Counterparty any amount in connection with the Transaction pursuant to
Sections 12.2, 12.3 (and “Consequences of Merger Events” above), 12.6, 12.7 or 12.9 of the
Equity Definitions (except in the case of an Extraordinary Event in which the consideration or
proceeds to be paid to holders of Shares as a result of such event consists solely of cash) or
pursuant to Section 6(d)(ii) of the Agreement (except in the case of an Event of Default in
which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the
Affected Party, other than (x) an Event of Default of the type described in Section 5(a)(iii),
(v), (vi) or (vii) of the Agreement or (y) a Termination Event of the type described in Section
5(b)(i), (ii), (iii), (iv), (v) or (vi) of the Agreement that in the case of either (x) or (y)
resulted from an event or events outside Counterparty’s control) (a “Deutsche Payment
Obligation”), Counterparty shall have the right, in its sole discretion, to require Deutsche to
satisfy any such Deutsche Payment Obligation by delivery of Termination Delivery Units (as
defined below) by giving irrevocable telephonic notice to Deutsche, confirmed in writing within
one Scheduled Trading Day, between the hours of 9:00 a.m. and 4:00 p.m. New York time on the
Early Termination Date or other date the transaction is terminated, as applicable (“Notice of
Deutsche Termination Delivery”); provided that if Counterparty does not validly request Deutsche
to satisfy the Deutsche Payment Obligation by delivery of Termination Delivery Units, Deutsche
shall have the right, in its sole discretion, to satisfy the Deutsche Payment Obligation by such
delivery, notwithstanding Counterparty’s election to the contrary. Within a commercially
reasonable period of time following receipt of a Notice of Deutsche Termination Delivery,
Deutsche shall deliver to Counterparty a number of Termination Delivery Units having a cash
value equal to the amount of such Deutsche Payment Obligation (such number of Termination
Delivery Units to be delivered to be determined by the Calculation Agent as the number of whole
Termination Delivery Units that could be purchased over a commercially reasonable period of time
with the cash equivalent of such payment obligation). If the provisions set forth in this
paragraph are applicable, the provisions of Sections 9.8, 9.9, 9.10, 9.11 (modified as described
above) and 9.12 of the Equity Definitions shall be applicable, except that all references to
“Shares” shall be read as references to “Termination Delivery Units”.

14

 

“Termination Delivery Unit” means (a) in the case of a Termination Event, an Event of Default or
an Extraordinary Event (other than an Insolvency, Nationalization or Merger Event), one Share or
(b) in the case of an Insolvency, Nationalization or Merger Event, a unit consisting of the
number or amount of each type of property received by a holder of one Share (without
consideration of any requirement to pay cash or other consideration in lieu of fractional
amounts of any securities) in such Insolvency, Nationalization or Merger Event. If a
Termination Delivery Unit consists of property other than cash or New Shares and Counterparty
provides irrevocable written notice to the Calculation Agent on or prior to the Closing Date
that it elects to receive cash, New Shares or a combination thereof (in such proportion as
Counterparty designates) in lieu of such other property, the Calculation Agent shall replace
such property with cash, New Shares or a combination thereof as components of a Termination
Delivery Unit in such amounts, as determined by the Calculation Agent in its discretion by
commercially reasonable means, as shall have a value equal to the value of the property so
replaced. If such Insolvency, Nationalization or Merger Event involves a choice of
consideration to be received by holders, such holder shall be deemed to have elected to receive
the maximum possible amount of cash.

Delivery or Receipt of Cash. For the avoidance of doubt, nothing in this Confirmation (other
than Counterparty’s obligation to pay the Premium) shall be interpreted as requiring
Counterparty to cash settle this Transaction, except in circumstances where such cash settlement
is within Counterparty’s control (including, without limitation, where Counterparty elects to
deliver or receive cash (including by reason of its election of the Note Settlement Method),
where Counterparty fails timely to provide the Notice of Deutsche Termination Delivery, or where
Counterparty has made the Private Placement Procedures unavailable due to the occurrence of
events within its control) or in those circumstances in which holders of the Shares would also
receive cash.

Rule 10b-18. Except as disclosed to Deutsche in writing prior to the date on which the offering
of the Convertible Notes was first announced, Counterparty represents and warrants to Deutsche
that it has not made any purchases of blocks by or for itself or any of its Affiliated
Purchasers pursuant to the one block purchase per week exception in Rule 10b-18(b)(4) under the
Exchange Act during each of the four calendar weeks preceding, and during the week of, such date
(“Rule 10b-18 purchase,” “blocks” and “Affiliated Purchaser” each as defined in Rule 10b-18
under the Exchange Act). Counterparty agrees and acknowledges that it shall not, and shall
cause its affiliates and Affiliated Purchasers not to, directly or indirectly (including by
means of a derivative instrument) enter into any transaction to purchase any Shares during the
period beginning on such date and ending on the earlier of (i) December 7, 2009 and (ii) the day
on which Deutsche has informed Counterparty in writing that it has completed all purchases of
Shares or other transactions to hedge its exposure to the Transaction. For the avoidance of
doubt, this paragraph shall not prohibit any purchase of Shares effected by or for an issuer
“plan” by an “agent independent of the issuer” (as such terms are defined in Rule 10b-18 under
the Exchange Act).

Regulation M. Counterparty was not on the date on which the offering of the Convertible Notes
was first announced, has not since such date, and is not on the date hereof, engaged in a
distribution, as such term is used in Regulation M under the Exchange Act, of any securities of
Counterparty, other than a distribution meeting the requirements of the exception set forth in
Sections 101(b)(10) and 102(b)(7) of Regulation M under the Exchange Act or the offering of
Shares pursuant to the Underwriting Agreement between Gaylord Entertainment Company and Deutsche
Bank Securities (as representative of the several underwriters) dated as of September 23, 2009.
Counterparty shall not, until the earlier of (i) December 7, 2009 and (ii) the day on which
Deutsche has informed Counterparty in writing that it has completed all purchases of Shares or
other transactions to hedge its exposure to the Transaction, engage in any such distribution.

No Material Non-Public Information. On each day during the period beginning on the date on
which the offering of the Convertible Notes was first announced and ending on the earlier of (i)
December 7, 2009 and (ii) the day on which Deutsche has informed Counterparty in writing that
Deutsche has completed all purchases of Shares or other transactions to hedge initially its
exposure with respect to the Transaction, Counterparty represents and warrants to Deutsche that
it is not aware of any material nonpublic information concerning itself or the Shares.

15

 

Right to Extend. Deutsche may postpone any potential Exercise Date or postpone or extend any
other date of valuation or delivery with respect to some or all of the relevant Note Hedging
Units (in which event the Calculation Agent shall make appropriate adjustments to the Settlement
Amount for such Note Hedging Units), if Deutsche determines, in its reasonable discretion, that
(a) a Regulatory Disruption has occurred or (b) such extension is reasonably necessary or
appropriate to (i) preserve Deutsche’s hedging or hedge unwind activity hereunder in light of
existing liquidity conditions or (ii) enable Deutsche to effect purchases of Shares in
connection with its hedging, hedge unwind or settlement activity hereunder in a manner that
would, if Deutsche were the Issuer or an affiliated purchaser of the Issuer, be in compliance
with applicable legal, regulatory or self-regulatory requirements, or with related policies and
procedures applicable to Deutsche. “Regulatory Disruption” shall mean any event that Deutsche,
in its commercially reasonable discretion upon the advice of outside counsel, determines makes
it appropriate with regard to any legal, regulatory or self-regulatory requirements or related
policies and procedures (whether or not such requirements, policies or procedures are imposed by
law or have been voluntarily adopted by Deutsche, and including without limitation Rule 10b-18,
Rule 10b-5, Regulation 13D-G and Regulation 14E under the Exchange Act and Regulation M and/or
analyzing Deutsche as if it were the Issuer or an affiliated purchaser of the Issuer), for
Deutsche to refrain from or decrease any market activity in connection with the Transaction.

Transfer or Assignment. Counterparty may not transfer any of its rights or obligations under
the Transaction without the prior written consent of Deutsche. Deutsche may transfer or assign
all or a portion of its Note Hedging Units hereunder at any time without the consent of
Counterparty to any (i) of its affiliates, (ii) entities sponsored or organized by, on behalf of
or for the benefit of Deutsche (provided that, in the case of (i) and (ii), such affiliate or
entity shall have a credit standing equivalent to that of Deutsche) or (iii) Qualifying
Financial Institution. “Qualifying Financial Institution” means any bank, trust company,
broker, dealer, insurance company, other financial intermediary or holding company that controls
one or more of the foregoing entities that (i) is regulated (or whose guarantor is regulated)
as to matters of financial integrity and soundness by a financial regulator of a G10 member
country, (ii) has (or whose guarantor has) shareholders equity (or an applicable, comparable
measure of net worth) of not less than U.S.$15,000,000,000; and (iii) has a rating (or whose
guarantor has a rating) for its long term, unsecured and unsubordinated indebtedness of A or
better by Standard & Poor’s Ratings Services or its successor (“S&P”), or A2 or better by
Moody’s Investors Service, Inc. or its successor (“Moody’s”) or, if either S&P or Moody’s ceases
to rate such debt, at least an equivalent rating or better by a substitute agency rating
mutually agreed by Counterparty and Deutsche.

If, as determined in Deutsche’s sole discretion, (a) at any time (1) the Equity Percentage
exceeds 8.0% or the Pro Forma Foreign Ownership Percentage exceeds 22.0% or (2) Deutsche,
Deutsche Group (as defined below) or any person whose ownership position would be aggregated
with that of Deutsche or Deutsche Group (Deutsche, Deutsche Group or any such person, a
“Deutsche Person”) under Section 203 of the Delaware General Corporation Law (the “DGCL Takeover
Statute”) or other federal, state or local laws, regulations or regulatory orders applicable to
ownership of Shares (“Applicable Laws”) or the Amended and Restated Rights Agreement between
Gaylord Entertainment Company and Computershare Trust Company, N.A., dated as of March 9, 2009
(as may be amended, modified or supplemented from time to time, the “Rights Agreement”), owns,
beneficially owns, constructively owns, controls, holds the power to vote or otherwise meets a
relevant definition of ownership, or could be reasonably viewed as meeting any of the foregoing,
in excess of a number of Shares equal to (x) the number of Shares that would give rise to (I)
reporting, registration, filing or notification obligations or other requirements (including
obtaining prior approval by a state or federal regulator) of a Deutsche Person under Applicable
Laws (including, without limitation, “interested shareholder” or “acquiring Person” status under
the DGCL Takeover Statute) and with respect to which such requirements have not been met or the
relevant approval has not been received, (II) a distribution date (or other event with similar
consequences) under the Rights Agreement or (III) give rise to a designation of Deutsche as a
“Disqualified Person” or cause any shares owned by Deutsche to be subject to redemption or to
any suspension of rights of stock ownership (in each case pursuant to or within the meaning of
Article IV(D) of the Restated Certificate of Incorporation of Counterparty or any analogous or
successor provisions) minus (y) 1% of the number of Shares outstanding on the date of
determination (either such condition described in clause (1) or (2), an “Excess Ownership
Position”), and (b) Deutsche is unable, after commercially reasonable efforts, to effect a
transfer or assignment on pricing and terms and within a time period reasonably acceptable to it
of all or a portion of this Transaction pursuant to the

16

 

preceding paragraph such that an Excess
Ownership Position no longer exists, Deutsche may designate any Scheduled Trading Day as an
Early Termination Date with respect to a portion (the “Terminated Portion”) of this Transaction,
such that an Excess Ownership Position no longer exists following such partial termination. In
the event that Deutsche so designates an Early Termination Date with respect to a portion of
this Transaction, a payment shall be made pursuant to Section 6 of the Agreement as if (i) an
Early Termination Date had been designated in respect of a Transaction having terms identical to
this Transaction and a Number of Note Hedging Units equal to the Terminated Portion, (ii)
Counterparty shall be the sole Affected Party with respect to such partial termination and (iii)
such Transaction shall be the only Terminated Transaction (and, for the avoidance of doubt, the
provisions set forth under the caption “Alternative Calculations and Deutsche Payment on Early
Termination and on Certain Extraordinary Events” shall apply to any amount that is payable by
Deutsche to Counterparty pursuant to this sentence). The “Equity Percentage” as of any day is
the fraction, expressed as a percentage, (A) the numerator of which is the number of Shares that
Deutsche and any of its affiliates subject to aggregation with Deutsche for purposes of the
“beneficial ownership” test under Section 13 of the Exchange Act and all persons who may form a
“group” (within the meaning of Rule 13d-5(b)(1) under the Exchange Act) with Deutsche
(collectively, “Deutsche Group”) “beneficially own” (within the meaning of Section 13 of the
Exchange Act) without duplication on such day and (B) the denominator of which is the number of
Shares outstanding on such day.

Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing
Deutsche to purchase, sell, receive or deliver any shares or other securities to or from
Counterparty, Deutsche may designate any of its affiliates to purchase, sell, receive or deliver
such shares or other securities and otherwise to perform Deutsche’s obligations in respect of
the Transaction and any such designee may assume such obligations. Deutsche shall be discharged
of its obligations to Counterparty to the extent of any such performance.

Private Placement Procedures. Except in circumstances where Counterparty has taken, or caused to
be taken, any action that would make unavailable either the exemption pursuant to Section 4(2)
of the Securities Act for the sale by Deutsche (or any affiliate designated by Deutsche) of the
Unwind Shares or the exemption pursuant to Section 4(1) of Section 4(3) of the Securities Act
for resales of the Unwind Shares by Deutsche (or any such affiliate of Deutsche), Counterparty
may elect to settle its obligations pursuant to “Early Unwind” below in accordance with these
“Private Placement Procedures” by giving notice to Deutsche no later than 8 a.m. New York time
on the Exchange Business Day immediately following the Early Unwind Date. In such event,
Counterparty shall deliver a number of Shares (or, if the Shares have been converted into other
securities or property in connection with an Extraordinary Event, a number or amount of such
other securities or property as a holder of Shares would be entitled to receive upon the
consummation or closing of such Extraordinary Event) having a cash value equal to the amount of
such payment obligation. Such number of Shares or amount of other securities or property to be
delivered shall be determined by the Calculation Agent to be the number of Shares that could be
sold over a reasonable period of time to produce the cash equivalent of such payment obligation
(including interest accrued thereon at the Federal Funds rate plus 100 basis points per annum).
Settlement relating to any delivery of Shares or other securities or property pursuant to this
paragraph shall occur within a reasonable period of time; provided that Deutsche agrees that if
at any time a delivery of Shares hereunder would result in a Share Accumulation Condition, it
shall so notify Counterparty and instruct Counterparty to defer such delivery to the extent
necessary to avoid the existence of a Share Accumulation Condition. If any delivery owed to
Deutsche hereunder is not made, in whole or in part, as a result of this provision,
Counterparty’s obligation to make such delivery shall not be extinguished and Counterparty shall
make such delivery as promptly as practicable after, but in no event later than one Clearance
System Business Day after, Deutsche gives notice to Counterparty that such delivery would not
result in the existence of a Share Accumulation Condition.

“Share Accumulation Condition” means that, at any time of determination, the number of Unwind
Shares previously delivered to Deutsche pursuant to this provision and then still owned by
Deutsche is greater than 2,048,975 (as such number may be adjusted by the Calculation Agent from
time to time to account for any subdivision, stock-split, stock combination, reclassification or
similar dilutive or anti-dilutive event with respect to the Shares). Notwithstanding anything
herein or in the Agreement to the contrary, the aggregate number of Shares that Counterparty may
be required to deliver to Deutsche under this Transaction shall not exceed twice the product of
the Applicable Percentage, the initial Number of Note Hedging Units and the Note Hedging Unit
Entitlement, as such number may be adjusted by the Calculation Agent from time to time to
account for any

17

 

subdivision, stock-split, stock combination, reclassification or similar
dilutive or anti-dilutive event with respect to the Shares (the “Maximum Amount”).

In the event Counterparty shall not have delivered the full number of Shares otherwise
applicable as a result of the proviso above relating to the Maximum Amount (such deficit, the
“Deficit Shares”), Counterparty shall be continually obligated to deliver, from time to time
until the full number of Deficit Shares have been delivered pursuant to this paragraph, Shares
when, and to the extent, that (i) Shares are repurchased, acquired or otherwise received by
Counterparty or any of its subsidiaries after the Trade Date (whether or not in exchange for
cash, fair value or any other consideration), (ii) authorized and unissued Shares reserved for
issuance in respect of other transactions prior to the Trade Date which prior to such date
become no longer so reserved and (iii) Counterparty additionally authorizes any unissued Shares
that are not reserved for other transactions. Counterparty shall immediately notify Deutsche of
the occurrence of any of the foregoing events (including the number of Shares subject to clause
(i), (ii) or (iii) and the corresponding number of Shares to be delivered).

Without limiting the generality of the foregoing, Counterparty agrees that any Shares delivered
pursuant to these “Private Placement Procedures” to Deutsche, as purchaser of such Shares, (i)
may be transferred by and among Deutsche and its affiliates and Counterparty shall effect such
transfer without any further action by Deutsche and (ii) after the period of 6 months from the
delivery date (or 1 year from the delivery date if, at such time, informational requirements of
Rule 144(c) are not satisfied with respect to Counterparty) has elapsed after delivery date for
such Shares, Counterparty shall promptly remove, or cause the transfer agent for such Shares to
remove, any legends referring to any such restrictions or requirements from such Shares upon
request by Deutsche (or such affiliate of Deutsche) to Counterparty or such transfer agent,
without any requirement for the delivery of any certificate, consent, agreement, opinion of
counsel, notice or any other document, any transfer tax stamps or payment of any other amount or
any other action by Deutsche (or such affiliate of Deutsche).

The delivery of Shares by Counterparty pursuant to these “Private Placement Procedures” shall be
effected in customary private placement procedures with respect to such Shares reasonably
acceptable to Deutsche. The Private Placement settlement of such Shares shall include customary
representations, covenants, blue sky and other governmental filings and/or registrations,
indemnities to Deutsche, due diligence rights (for Deutsche or any buyer of the Shares
designated by Deutsche), opinions and certificates, and such other documentation as is customary
for private placement agreements for private placements of equity securities of issuers of its
size, all reasonably acceptable to Deutsche.

Severability; Illegality. If compliance by either party with any provision of the Transaction
would be unenforceable or illegal, (a) the parties shall negotiate in good faith to resolve such
unenforceability or illegality in a manner that preserves the economic benefits of the
transactions contemplated hereby and (b) the other provisions of the Transaction shall not be
invalidated, but shall remain in full force and effect.

Waiver of Jury Trial. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING
TO THE TRANSACTION. EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II)
ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN.

Early Unwind. In the event the sale of Convertible Notes is not consummated with the
underwriter thereof for any reason by the close of business in New York on September 29, 2009
(or such later date as agreed upon by the parties) (September 29, 2009 or such later date as
agreed upon being the “Early Unwind Date”), the Transaction shall automatically terminate (the
“Early Unwind”) on the Early Unwind Date and (a) the Transaction and all of the respective
rights and obligations of Deutsche and Counterparty under the Transaction shall be cancelled and
terminated and (b) each party shall be released and discharged by the other party from and
agrees not to make any claim against the other party with respect to any obligations or
liabilities of the other party arising out of and to be

18

 

performed in connection with the
Transaction either prior to or after the Early Unwind Date; provided that Counterparty shall
reimburse the cost of and, without duplication, losses arising out of all derivatives and other
hedging activities entered into, and all purchases and dispositions of Shares, by Deutsche or
one or more of its affiliates, in each case, in connection with hedging of the Transaction and
the unwind of such hedging activities; provided further that Counterparty’s reimbursement
obligation pursuant to the immediately preceding proviso shall not apply to the extent the Early
Unwind Date occurred as the result of a breach of the Purchase Agreement by Deutsche. The
amount payable by Counterparty shall be Deutsche’s (or its affiliates) actual costs and losses
related to such Shares and unwind costs of such derivatives and other hedging activities as
Deutsche informs Counterparty and, subject to Counterparty’s right to elect settlement by
delivery of Shares (the “Unwind Shares”) pursuant to the “Private Placement Procedures” above,
shall be paid in immediately available funds on the Early Unwind Date. Deutsche and
Counterparty represent and acknowledge to the other that, subject to the proviso included in the
second preceding sentence, upon an Early Unwind, all obligations with respect to the Transaction
shall be deemed fully and finally discharged.

Governing law: The law of the State of New York.

Contact information. For purposes of the Agreement (unless otherwise specified in the Agreement),
the addresses for notice to the parties shall be:

(a) Counterparty

Gaylord Entertainment Company

One Gaylord Drive

Nashville, TN 37214

Attention: General Counsel

Telephone: (615) 316-6000

Facsimile: (615) 316-6854

with a copy to:

Bass, Berry & Sims PLC

315 Deaderick Street, Suite 2700

Nashville, Tennessee 37238

Attention: F. Mitchell Walker, Jr.

Telephone: (615) 742-6275

Email: mwalker@bassberry.com

(b) Deutsche

Deutsche Bank AG, London Branch

c/o Deutsche Bank Securities Inc.

60 Wall Street

New York, NY 10005

Attention:   Faiz Khan

Telephone: (212) 250-0668

Email:           faiz.khan@db.com

with a copy to:

Deutsche Bank AG, London Branch

19

 

c/o Deutsche Bank Securities Inc.

60 Wall Street

New York, New York 10005

Attention:   Lars Kestner

Telephone: (212) 250-6043

Email:           Lars.Kestner@db.com

This Confirmation may be executed in several counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly
sets forth the terms of the Transaction by signing in the space provided below and returning to
Deutsche a facsimile of the fully-executed Confirmation to Deutsche at 44 113 336 2009. Originals
shall be provided for your execution upon your request.

We are very pleased to have executed the Transaction with you and we look forward to completing
other transactions with you in the near future.

20

 

Very truly yours,

	 	 	 	 	 
	DEUTSCHE BANK AG, LONDON BRANCH	 	 
	 
	 	 	 	 
	By:

	 	/s/ Lars Kestner	 	 
	 

	 	 	 	 
	 

	 	Name: Lars Kestner	 	 
	 

	 	Title: Managing Director	 	 
	 
	 	 	 	 
	By:

	 	/s/ John Arnone	 	 
	 

	 	 	 	 
	 

	 	Name: John Arnone	 	 
	 

	 	Title: Managing Director	 	 
	 
	 	 	 	 
	DEUTSCHE BANK SECURITIES INC.

acting solely as Agent in connection with this Transaction	 	 
	 
	 	 	 	 
	By:

	 	/s/ Donald Sung	 	 
	 

	 	 	 	 
	 

	 	Name: Donald Sung

Title: Managing Director	 	 
	 
	 	 	 	 
	By:

	 	/s/ Jeremy Fox	 	 
	 

	 	 	 	 
	 

	 	Name: Jeremy Fox	 	 
	 

	 	Title: Managing Director	 	 

[Signature Page to Note Hedge]

 

 

Counterparty hereby agrees to, accepts and confirms the terms of the foregoing as of the Trade
Date.

	 	 	 	 	 
	GAYLORD ENTERTAINMENT COMPANY	 	 
	 
	 	 	 	 
	By:

	 	/s/ Carter R. Todd	 	 
	 

	 	 	 	 
	 

	 	Name: Carter R. Todd	 	 
	 

	 	Title: EVP and General Counsel	 	 

[Counterparty Signature Page to Note Hedge]

 

 

ANNEX A

Certain terms of the Transaction is set forth below.

	 	 	 
	Strike Price:

	 	USD 27.25
	 
	 	 
	Applicable Percentage:

	 	40% 
	 
	 	 
	Premium:

	 	USD25,560,000

 A-1EX-10.3

Exhibit 10.3

EXECUTION COPY

	 	 	 
	DATE:

	 	September 24, 2009
	 
	 	 
	TO:

	 	Gaylord Entertainment Company
	 

	 	One Gaylord Drive

Nashville, Tennessee 37214
	ATTENTION:

	 	General Counsel
	TELEPHONE:

	 	(615) 316-6000
	FACSIMILE:

	 	(615) 316-6854
	 
	 	 
	FROM:

	 	Citibank N.A.
	 

	 	390 Greenwich Street
	 

	 	New York, NY 10013
	ATTENTION:

	 	Equity Derivatives
	TELEPHONE:

	 	(212) 723-7357
	FACSIMILE:

	 	(212) 723-8328
	 
	 	 
	SUBJECT:

	 	Equity Derivatives Confirmation
	 
	 	 
	REFERENCE NUMBER(S):

	 	[               ]

The purpose of this facsimile agreement (this “Confirmation”) is to confirm the terms and
conditions of the transaction entered into between Citibank N.A. (“Citi”) and Gaylord Entertainment
Company (“Counterparty”) on the Trade Date specified below (the “Transaction”). This Confirmation
constitutes a “Confirmation” as referred to in the ISDA Master Agreement specified below. This
Confirmation constitutes the entire agreement and understanding of the parties with respect to the
subject matter and terms of the Transaction and supersedes all prior or contemporaneous written and
oral communications with respect thereto.

The definitions contained in the 2002 ISDA Equity Derivatives Definitions (the “Equity
Definitions”), as published by the International Swaps and Derivatives Association, Inc., are
incorporated into this Confirmation. In the event of any inconsistency between the Equity
Definitions and the terms of this Confirmation, the terms of this Confirmation shall govern. For
the purposes of the Equity Definitions, each reference herein to a Note Hedging Unit shall be
deemed to be a reference to a Call or an Option, as context requires.

This Confirmation evidences a complete and binding agreement between Citi and Counterparty as to
the terms of the Transaction to which this Confirmation relates. This Confirmation shall
supplement, form a part of, and be subject to an agreement (the “Agreement”) in the form of the
ISDA 2002 Master Agreement as if Citi and Counterparty had executed an agreement in such form
(without any Schedule but with the elections set forth in this Confirmation). For the avoidance of
doubt, the Transaction shall be the only transaction under the Agreement.

The Transaction shall be considered a Share Option Transaction for purposes of the Equity
Definitions, and shall have the following terms:

	 	 	 
	General:
	 	 
	 
	 	 
	Trade Date:

	 	September 24, 2009.
	 
	 	 
	Effective Date:

	 	The closing date for the initial issuance of the Convertible Notes.

 

	 	 	 
	Transaction Style:

	 	Modified American Option, as described below under “Procedure for
Exercise”.
	 
	 	 
	Transaction Type:

	 	Note Hedging Units.
	 
	 	 
	Seller:

	 	Citi.
	 
	 	 
	Buyer:

	 	Counterparty.
	 
	 	 
	Shares:

	 	The common stock, par value USD 0.01 per share, of Counterparty.
	 
	 	 
	Convertible Notes:

	 	The 3.75% Convertible Senior Notes of Counterparty due October 1,
2014, offered pursuant to an Offering Memorandum to be dated as of
September 29, 2009 and issued pursuant to the indenture to be
dated as of the closing date of the initial issuance of the
Convertible Notes, by and between Counterparty and U.S. Bank
National Association, as trustee (as may be amended, modified or
supplemented from time to time, but only if such amendment,
modification or supplement is consented to by Citi in writing, the
“Indenture”). Certain defined terms used herein have the meanings
assigned to them in the Indenture as described in the Offering
Memorandum. In the event of any inconsistency between the terms
defined in the Indenture or Offering Memorandum and this
Confirmation, this Confirmation shall govern. For the avoidance of
doubt, references herein to provisions of the Indenture are based
on the description of the Convertible Notes set forth in the
Offering Memorandum. If the relevant provisions of the Indenture
differ in any material respect from those described in the
Offering Memorandum, or any relevant sections of the Indenture are
changed, added or renumbered following execution of this
Confirmation, the parties will, if appropriate, amend this
Confirmation in good faith to preserve the economic intent of the
parties.
	 
	 	 
	Number of Note Hedging Units:

	 	300,000. For the avoidance of doubt, the Number of Note Hedging
Units shall be reduced by each exercise of Note Hedging Units
hereunder.
	 
	 	 
	Note Hedging Unit Entitlement:

	 	USD1,000 divided by the Strike Price. Notwithstanding anything to
the contrary herein or in the Agreement (including without
limitation the provisions of Calculation Agent Adjustment), in no
event shall the Note Hedging Unit Entitlement at any time be
greater than the “Conversion Rate” (as such term is defined in the
Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Rights”) at such time.
	 
	 	 
	Strike Price:

	 	As provided in Annex A to this Confirmation.
	 
	 	 
	Applicable Percentage:

	 	As provided in Annex A to this Confirmation.
	 
	 	 
	Premium:

	 	As provided in Annex A to this Confirmation.
	 
	 	 
	Premium Payment Date:

	 	The Effective Date.

2

 

	 	 	 
	Exchange:

	 	The New York Stock Exchange.
	 
	 	 
	Related Exchanges:

	 	All Exchanges.
	 
	 	 
	Calculation Agent:

	 	Citi. The Calculation Agent shall, upon written request by
Counterparty, provide a written explanation of any calculation or
adjustment made by it including, where applicable, a description
of the methodology and data applied.
	 
	 	 
	Procedure for Exercise:
	 	 
	 
	 	 
	Potential Exercise Dates:

	 	Each Conversion Date.
	 
	 	 
	Conversion Date:

	 	Each “Conversion Date” as defined in the Indenture as described in
the Offering Memorandum under “Description of Notes—Conversion
Procedures-Procedures to be Followed by a Holder”.
	 
	 	 
	Required Exercise on Conversion Dates:

	 	On each Conversion Date, a number of Note Hedging Units equal to
the number of Convertible Notes in denominations of USD1,000
principal amount submitted for conversion in respect of such
Conversion Date in accordance with the terms of the Indenture
shall become exercisable and be exercised automatically, subject
to “Notice of Exercise” below.
	 
	 	 
	Expiration Date:

	 	October 1, 2014
	 
	 	 
	Multiple Exercise:

	 	Applicable, as provided under “Required Exercise on Conversion
Dates”.
	 
	 	 
	Automatic Exercise:

	 	As provided under “Required Exercise on Conversion Dates”.
	 
	 	 
	Note Settlement Method:

	 	With respect to any Convertible Notes submitted for conversion,
the applicable settlement method elected by Counterparty pursuant
to the Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Procedures-Settlement Upon
Conversion”, being one of the following: (i) delivery solely of
Shares (other than cash in respect of fractional Shares); (ii)
delivery of a combination of cash and Shares; and (iii) delivery
solely of cash.
	 
	 	 
	Notice of Exercise:

	 	Notwithstanding anything to the contrary in the Equity
Definitions, in order to exercise any Note Hedging Units,
Counterparty must notify Citi in writing prior to 5:00 PM, New
York City time, on the day that is two Scheduled Trading Days
prior to the first day of the “Settlement Period”, as defined in
the Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Procedures-Settlement Upon
Conversion”, relating to the Convertible Notes converted on the
Conversion Date relating to the relevant Exercise Date (the
“Notice Deadline”) of (i) the number of Note Hedging Units being
exercised on such Exercise Date (which shall equal the number of
Convertible Notes converted on the Conversion Date corresponding
to

3

 

	 	 	 
	 

	 	such Exercise Date), (ii) the scheduled commencement date of
the “Settlement Period” and the scheduled settlement date under
the Indenture for the Convertible Notes converted on such
Conversion Date and (iii) the Note Settlement Method and, if
applicable, the “Specified Dollar Amount” (as defined in the
Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Procedures-Settlement Upon
Conversion”) applicable to such Convertible Notes; provided that
if Counterparty fails to timely provide the notice described in
this clause (iii), then the Note Settlement Method shall be deemed
to be a combination of Shares and cash and the “Specified Dollar
Amount” shall be deemed to be USD 1,000 for purposes of
calculating the Settlement Amount (as defined below); provided
further that in respect of Convertible Notes with a Conversion
Date during the period beginning on, and including the
50th “Scheduled Trading Day”, as defined in the
Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Rights”, prior to the “Maturity
Date”, as defined in the Indenture as described in the Offering
Memorandum under “Description of Notes—Conversion
Procedures-Settlement Upon Conversion”, and ending on the close of
business on the second “Scheduled Trading Day
” immediately
preceding the “Maturity Date”, (x) the Notice Deadline in respect
of the information set forth in clauses (i) and (ii) above shall
be 5:00 PM, New York City time, on the “Scheduled Trading Day”
immediately preceding the “Maturity Date” and (y) the Notice
Deadline in respect of the information set forth in clause (iii)
above shall be 5:00 PM, New York City time, on July 1, 2014.
	 
	 	 
	 

	 	Counterparty acknowledges that it has elected settlement in a
combination of Shares and cash with a “Specified Dollar Amount” of
USD 1,000 as its initial Note Settlement Method pursuant to the
Indenture. Each delivery of a Notice of Exercise in which the
designated Note Settlement Method differs from the Note Settlement
Method specified in the previous Notice of Exercise (or from the
initial Note Settlement Method, in the case of the first Notice of
Exercise) shall constitute a representation and warranty to Citi,
and it shall be a condition to the effectiveness of any such
Notice of Exercise, that at the time of Counterparty’s election of
such newly chosen Note Settlement Method Counterparty was not in
possession of any material non-public information with respect to
Counterparty or the Shares.
	 
	 	 
	Settlement Terms:
	 	 
	 
	 	 
	Net Share Settlement: 

	 	In lieu of the obligations set forth in Sections 8.1 and 9.1 of
the Equity Definitions, and subject to “Notice of Exercise” above,
in respect of any Exercise Date occurring on a Conversion Date,
Citi shall deliver to Counterparty, on the related Settlement
Date, the Settlement Amount. For the avoidance of doubt, to the
extent Citi is obligated to deliver Shares hereunder, the
provisions of Sections 9.8, 9.9, 9.10, 9.11 and 9.12 of the Equity
Definitions shall be applicable to any such delivery of Shares,
except that all references in such provisions to “Physical

4

 

	 	 	 
	 

	 	Settlement” and “Physically-settled” shall be read as references
to “Net Share Settlement” and “Net Share Settled”; and provided
that the Representation and Agreement contained in Section 9.11 of
the Equity Definitions shall be modified by excluding any
representations therein relating to restrictions, obligations,
limitations or requirements under applicable securities laws as a
result of the fact that Counterparty is the issuer of the Shares.
	 
	 	 
	Settlement Amount: 

	 	The product of the Applicable Percentage and a number of Shares
and/or amount of cash in USD equal to:
	 
	 	 
	 

	 	(a) if Counterparty has elected to deliver only Shares to satisfy
the “Conversion Obligation” (as defined in the Indenture as
described in the Offering Memorandum under “Description of
Notes—Conversion Rights”), a number of shares equal to the lesser
of (1) the sum, for each “Settlement Period Trading Day” (as
defined in the Indenture as described in the Offering Memorandum
under “Description of Notes—Conversion Procedures-Settlement Upon
Conversion”) during the related “Settlement Period”, of the
greater of (x) the “Daily Net Share Settlement Value” (as defined
in the Indenture as described in the Offering Memorandum under
“Description of Notes—Conversion Procedures-Settlement Upon
Conversion”) calculated as if the “Specified Dollar Amount” were
USD 1,000 and (y) zero and (2) the result of clause (1) determined
as if the “Daily Net Share Settlement Value" (as defined in the
Indenture as described in the Offering Memorandum under
“Description of Notes-Conversion Procedures-Settlement Upon
Conversion”) for each “Settlement Period Trading Day” during the
related “Settlement Period” were the “Daily Net Share Settlement
Value” on the last “Settlement Period Trading Day” of such
“Settlement Period”;
	 
	 	 
	 

	 	(b) if the applicable “Specified Dollar Amount” is greater than
zero and less than USD 1,000, a number of shares equal to the sum,
for each “Settlement Period Trading Day” during the related
“Settlement Period”, of the greater of (1) the “Daily Net Share
Settlement Value”, calculated as if the “Specified Dollar Amount”
were USD 1,000 and (2) zero; or
	 
	 	 
	 

	 	(c) if the applicable “Specified Dollar Amount” is greater than or
equal to USD 1,000, (1) a number of shares equal to the sum, for
each “Settlement Period Trading Day” during the related
“Settlement Period”, of the greater of (x) the “Daily Net Share
Settlement Value”, and (y) zero, and (2) an amount of cash equal
to the excess, if any, of (x) the sum, for each “Settlement Period
Trading Day” during the related “Settlement Period”, of the lesser
of (i) the “Daily Conversion Value” for such “Settlement Period
trading Day” and (ii) 1/45th of the “Specified Dollar
Amount”, over (y) USD 1,000;
	 
	 	 
	 

	 	provided that, in the cases of (a) and (b), the Settlement Amount
shall be calculated as if (1) the relevant “Settlement Period”
consisted of 60 “Trading Days” commencing on the earlier of (x)
the third “Scheduled

5

 

	 	 	 
	 

	 	Trading Day” after the Conversion Date and
(y) the 62nd “Scheduled Trading Day” prior to the “Maturity Date”
and (2) the “Daily Net Share Settlement Value”, the “Daily
Conversion Value” and the reference to “1/45th" in
clause (c) immediately above were determined using “60 “ rather
than “45”;
	 
	 	 
	 

	 	provided further that such obligation shall be determined
excluding any Shares or cash that Counterparty is obligated to
deliver to holder(s) of the Convertible Notes as a result of any
adjustments to the “Conversion Rate” for the issuance of
additional Shares or cash as set forth in the Indenture as
described in the Offering Memorandum under “Description of
Notes—Adjustment to Conversion Rate Upon Conversion Upon
Make-Whole Fundamental Changes” (a “Fundamental Change
Adjustment”) or any voluntary adjustment (whether or not pursuant
to the Indenture) (a “Discretionary Adjustment”). If Counterparty
is permitted or required to exercise discretion under the terms of
the Indenture with respect to any determination, calculation or
adjustment relevant to conversion of the Convertible Notes
including, but not limited to, the volume-weighted average price
of the Shares, Counterparty shall consult with Citi with respect
thereto and the Calculation Agent shall make such determination,
calculation or adjustment for purposes of the Transaction. For
the avoidance of doubt, if the “Daily Conversion Value” for each
of the “Settlement Period Trading Days” in the relevant
“Settlement Period” is less than or equal to USD 1,000 divided by
the number of “Settlement Period Trading Days” in the relevant
“Settlement Period”, Citi will have no delivery obligation
hereunder.
	 
	 	 
	Notice of Delivery Obligation:

	 	No later than the Scheduled Trading Day immediately following the
last day of the relevant “Settlement Period”, Counterparty shall
give Citi notice of the final number of Shares and/or cash
comprising the Settlement Amount (it being understood, for the
avoidance of doubt, that the requirement of Counterparty to
deliver such notice shall not limit Counterparty’s obligations
with respect to Notice of Exercise, as set forth above, in any
way).
	 
	 	 
	Settlement Date:

	 	In respect of an Exercise Date occurring on a Conversion Date, the
settlement date for the Shares or cash to be delivered under the
Convertible Notes under the terms of the Indenture; provided that
the Settlement Date will not be prior to the later of (i) the date
that is one Settlement Cycle following the final day of the
“Settlement Period” and (ii) the Exchange Business Day immediately
following the date on which Counterparty gives notice to Citi of
such Settlement Date prior to 5:00 PM, New York City time.
	 
	 	 
	Settlement Currency:

	 	USD.
	 
	 	 
	Restricted Certificated Shares:

	 	Notwithstanding anything to the contrary in the Equity
Definitions, Citi may, in whole or in part, deliver Shares in
certificated form representing the Share portion of the Settlement
Amount to Counterparty in lieu of delivery through the Clearance
System.

6

 

	 	 	 
	Share Adjustments:
	 	 
	 
	 	 
	Potential Adjustment Events:

	 	Notwithstanding Section 11.2(e) of the Equity Definitions, a
“Potential Adjustment Event” means any occurrence of any event or
condition, as set forth in the Indenture as described in the
Offering Memorandum under “Description of Notes—Conversion Rate
Adjustments”, that would result in an adjustment to the Conversion
Rate of the Convertible Notes; provided that in no event shall
there be any adjustment hereunder as a result of an adjustment to
the Conversion Rate pursuant to a Fundamental Change Adjustment or
a Discretionary Adjustment.
	 
	 	 
	Method of Adjustment:

	 	Calculation Agent Adjustment, provided that, notwithstanding
Section 11.2(c) of the Equity Definitions, upon any adjustment to
the Conversion Rate of the Convertible Notes pursuant to the
Indenture (other than a Fundamental Change Adjustment or a
Discretionary Adjustment), the Calculation Agent shall make a
corresponding adjustment to any one or more of the Strike Price,
Number of Note Hedging Units, the Note Hedging Unit Entitlement
and any other variable relevant to the exercise, settlement,
payment or other terms of the Transaction.
	 
	 	 
	Extraordinary Events:
	 	 
	 
	 	 
	Merger Events:

	 	Notwithstanding Section 12.1(b) of the Equity Definitions, a
“Merger Event” means the occurrence of any event or condition set
forth in the Indenture as described in the Offering Memorandum
under “Description of Notes—Consolidation, Merger and Sale of
Assets”.
	 
	 	 
	Notice of Merger Consideration:

	 	Upon the occurrence of a Merger Event that causes the Shares to be
converted into or exchanged for more than a single type of
consideration (determined based in part upon the form of election
of the holders of Shares), Counterparty shall promptly (but in any
event prior to the effective date of the Merger Event) notify the
Calculation Agent of the weighted average of the kind and amounts
of consideration to be received by the holders of Shares in any
Merger Event who affirmatively make such an election.
	 
	 	 
	Consequences of Merger Events:

	 	Notwithstanding Section 12.2 of the Equity Definitions, upon the
occurrence of a Merger Event, the Calculation Agent shall make the
corresponding adjustment in respect of any adjustment under the
Indenture to any one or more of the nature of the Shares, the
Strike Price, the Number of Note Hedging Units, the Note Hedging
Unit Entitlement and any other variable relevant to the exercise,
settlement, payment or other terms of the Transaction, to the
extent an analogous adjustment is made under the Indenture;
provided that such adjustment shall be made without regard to any
adjustment to the Conversion Rate for the issuance of additional
shares or cash pursuant to a Fundamental Change Adjustment or a
Discretionary Adjustment; and provided further that the
Calculation Agent may limit or alter any such adjustment
referenced in this paragraph so that the fair value of the

7

 

	 	 	 
	 

	 	Transaction to Citi is not reduced as a result of such adjustment.
	 
	 	 
	Nationalization, Insolvency and Delisting:

	 	Cancellation and Payment (Calculation Agent Determination);
provided that in addition to the provisions of Section
12.6(a)(iii) of the Equity Definitions, it shall also constitute a
Delisting if the Exchange is located in the United States and the
Shares are not immediately re-listed, re-traded or re-quoted on
any of the New York Stock Exchange, The NASDAQ Global Select
Market or The NASDAQ Global Market (or their respective
successors); if the Shares are immediately re-listed, re-traded or
re-quoted on any such exchange or quotation system, such exchange
or quotation system shall be deemed to be the Exchange. For the
avoidance of doubt, the occurrence of any event that is a Merger
Event and would otherwise have been a Delisting will have the
consequence specified for the relevant Merger Event.
	 
	 	 
	Additional Disruption Events:
	 	 
	 
	 	 
	Change in Law:

	 	Applicable; provided that Section 12.9(a)(ii) of the Equity
Definitions is hereby amended (i) by the replacement of the word
“Shares” with “Hedge Positions” in clause (X) thereof; (ii) by
adding the phrase “or announcement” immediately after the phrase
“due to the promulgation” in the third line thereof and adding the
phrase “formal or informal” before the word “interpretation” in
the same line; and (iii) immediately following the word
“Transaction” in clause (X) thereof, adding the phrase “in the
manner contemplated by the Hedging Party on the Trade Date, unless
the illegality is due to an act or omission of the party seeking
to elect termination of the Transaction”.
	 
	 	 
	Failure to Deliver:

	 	Applicable
	 
	 	 
	Insolvency Filing:

	 	Applicable
	 
	 	 
	Increased Cost of Hedging:

	 	Applicable
	 
	 	 
	Hedging Party:

	 	Citi for all applicable Additional Disruption Events
	 
	 	 
	Determining Party:

	 	Citi for all applicable Additional Disruption Events
	 
	 	 
	Acknowledgements:
	 	 
	 
	 	 
	Non-Reliance:

	 	Applicable
	 
	 	 
	Agreements and Acknowledgements
Regarding Hedging Activities:

	 	Applicable
	 
	 	 
	Additional Acknowledgements:

	 	Applicable

Mutual Representations: Each of Citi and Counterparty represents and warrants to, and agrees with, the other party that:

	 	(i)	 	Tax Disclosure. Notwithstanding anything to the contrary herein, in the Equity Definitions
or in the Agreement, and notwithstanding any express or implied claims of exclusivity or
proprietary rights, the

8

 

	 	 	 	parties (and each of their employees, representatives or other agents)
are authorized to disclose to any and all persons, beginning immediately upon commencement of
their discussions and without limitation of any kind, the tax treatment and tax structure of the
Transaction, and all materials of any kind (including opinions or other tax analyses) that are
provided by either party to the other relating to such tax treatment and tax structure.
	 
	 	(ii)	 	Commodity Exchange Act. It is an “eligible contract participant” within the meaning of
Section 1a(12) of the U.S. Commodity Exchange Act, as amended (the “CEA”). The Transaction has
been subject to individual negotiation by the parties. The Transaction has not been executed or
traded on a “trading facility” as defined in Section 1a(33) of the CEA. It has entered into the
Transaction with the expectation and intent that the Transaction shall be performed to its
termination date.
	 
	 	(iii)	 	Securities Act. It is a “qualified institutional buyer” as defined in Rule 144A under the
U.S. Securities Act of 1933, as amended (the “Securities Act”), or an “accredited investor” as
defined under the Securities Act.
	 
	 	(iv)	 	Investment Company Act. It is a “qualified purchaser” as defined under the U.S. Investment
Company Act of 1940, as amended (the “Investment Company Act”).
	 
	 	(v)	 	ERISA. The assets used in the Transaction (1) are not assets of any “plan” (as such term is
defined in Section 4975 of the U.S. Internal Revenue Code (the “Code”)) subject to Section 4975
of the Code or any “employee benefit plan” (as such term is defined in Section 3(3) of the U.S.
Employee Retirement Income Security Act of 1974, as amended (“ERISA”)) subject to Title I of
ERISA, and (2) do not constitute “plan assets” within the meaning of Department of Labor
Regulation 2510.3-101, 29 CFR Section 2510-3-101.

Counterparty Representations: In addition to the representations and warranties in the Agreement and those contained
elsewhere herein, Counterparty represents, warrants, acknowledges and covenants that:

	 	(i)	 	Counterparty is not as of the Trade Date, and shall not be after giving effect to the
transactions contemplated hereby, “insolvent” (as such term is defined in Section 101(32) of the
U.S. Bankruptcy Code (Title 11 of the United States Code) (the “Bankruptcy Code”)) and
Counterparty would be able to purchase a number of Shares equal to the Number of Shares in
compliance with the laws of the jurisdiction of Counterparty’s incorporation or organization.
	 
	 	(ii)	 	Counterparty shall provide written notice to Citi within 24 hours of obtaining knowledge of
the occurrence of any event that would constitute an Event of Default, a Potential Event of
Default, a Potential Adjustment Event, a Merger Event or any other Extraordinary Event;
provided, however, that should Counterparty be in possession of material non-public information
regarding Counterparty, Counterparty shall not communicate such information to Citi in
connection with this Transaction.
	 
	 	(iii)	 	Counterparty has (and shall at all times during the Transaction have) the capacity and
authority to invest directly in the Shares underlying the Transaction and has not entered into
the Transaction with the intent to avoid any regulatory filings.
	 
	 	(iv)	 	Counterparty’s financial condition is such that it has no need for liquidity with respect
to its investment in the Transaction and no need to dispose of any portion thereof to satisfy
any existing or contemplated undertaking or indebtedness.

9

 

	 	(v)	 	Counterparty’s investments in and liabilities in respect of the Transaction, which it
understands are not readily marketable, are not disproportionate to its net worth, and
Counterparty is able to bear any loss in connection with the Transaction, including the loss of
its entire investment in the Transaction.
	 
	 	(vi)	 	The representations and warranties of Counterparty set forth in Section 3 of the Agreement
and Section 2 of the Purchase Agreement dated as of the Trade Date between Counterparty and Citi
Bank Securities Inc. as representative of the initial purchasers party thereto (the “Purchase
Agreement”) are true and correct as of the Trade Date and the Effective Date, and are hereby
deemed to be repeated to Citi as of such dates as if set forth herein.
(vii) Counterparty understands, agrees and acknowledges that Citi has no obligation or intention
to register the Transaction under the Securities Act, any state securities law or other
applicable federal securities law.
	 
	 	(viii)	 	Counterparty is not, and after giving effect to the transactions contemplated hereby will
not be, an “investment company” as such term is defined in the Investment Company Act.
(ix) Counterparty understands, agrees and acknowledges that no obligations of Citi to it
hereunder shall be entitled to the benefit of deposit insurance and that such obligations shall
not be guaranteed by any affiliate of Citi or any governmental agency.
	 
	 	(x)	 	(A) Counterparty is acting for its own account, and it has made its own independent
decisions to enter into the Transaction and as to whether the Transaction is appropriate or
proper for it based upon its own judgment and upon advice from such advisers as it has deemed
necessary, (B) Counterparty is not relying on any communication (written or oral) of Citi or any
of its affiliates as investment advice or as a recommendation to enter into the Transaction (it
being understood that information and explanations related to the terms and conditions of the
Transaction shall not be considered investment advice or a recommendation to enter into the
Transaction) and (C) no communication (written or oral) received from Citi or any of its
affiliates shall be deemed to be an assurance or guarantee as to the expected results of the
Transaction.
	 
	 	(xi)	 	Without limiting the generality of Section 13.1 of the Equity Definitions, Counterparty
acknowledges that Citi is not making any representations or warranties with respect to the
treatment of the Transaction under FASB Statements 128, 133, 149 or 150 (or under any successor
statement), EITF Issue No. 00-19, 01-6, 03-6 or 07-5 (or any successor issue statements), under
FASB’s Liabilities & Equity Project, or under any other accounting guidance.
	 
	 	(xii)	 	Counterparty is not entering into the Transaction for the purpose of (i) creating actual
or apparent trading activity in the Shares (or any security convertible into or exchangeable for
the Shares) or (ii) raising or depressing or otherwise manipulating the price of the Shares (or
any security convertible into or exchangeable for the Shares), in either case in violation of
the U.S. Securities Exchange Act of 1934, as amended (the “Exchange Act”).
	 
	 	(xiii)	 	Counterparty’s filings under the Securities Act, the Exchange Act, and other applicable
securities laws that are required to be filed have been filed and, as of the respective dates
thereof and as of the date of this representation, there is no misstatement of material fact
contained therein or omission of a material fact required to be stated therein or necessary to
make the statements made therein, in the light of the circumstances under which they were made,
not misleading.

10

 

	 	(xiv)	 	Without limiting the generality of Section 3(a)(iii) of the Agreement, Counterparty has
not violated, and shall not directly or indirectly violate, any applicable law (including,
without limitation, the Securities Act and the Exchange Act and the regulations promulgated
thereunder, including Rule 13e-1 and Rule 13e-4 under the Exchange Act) in connection with the
Transaction. Counterparty acknowledges and agrees to be bound by the Conduct Rules of the
National Association of Securities Dealers, Inc. applicable to transactions in options, and
further agrees not to violate the position and exercise limits set forth therein.
	 
	 	(xv)	 	The Transaction, and any repurchase of the Shares by Counterparty in connection with the
Transaction, has been approved by Counterparty’s board of directors and any such repurchase has
been, or shall when so required be, publicly disclosed in its periodic filings under the
Exchange Act and its financial statements and notes thereto.
	 
	 	(xvi)	 	Counterparty shall deliver to Citi an opinion of counsel, dated as of the Trade Date and
reasonably acceptable to Citi in form and substance, with respect to the matters set forth in
Section 3(a) of the Agreement and such other matters as Citi may reasonably request.

Miscellaneous:

	 	 	Netting and Set-Off. The parties hereto agree that the Transaction shall not be subject to
netting or set off with any other transaction.
	 
	 	 	Qualified Financial Contracts. It is the intention of the parties that, in respect of
Counterparty, (a) the Transaction shall constitute a “qualified financial contract” within the
meaning of 12 U.S.C. Section 1821(e)(8)(D)(i) and (b) a Non-defaulting Party’s rights under
Sections 5 and 6 of the Agreement constitute rights of the kind referred to in 12 U.S.C. Section
1821(e)(8)(A).
	 
	 	 	Method of Delivery. Whenever delivery of funds or other assets is required hereunder by or to
Counterparty, such delivery shall be effected through Agent. In addition, all notices, demands
and communications of any kind relating to the Transaction between Citi and Counterparty shall
be transmitted exclusively through Agent.
	 
	 	 	Staggered Settlement. Citi may, by notice to Counterparty prior to any Settlement Date (a
“Nominal Settlement Date”), elect to deliver the Shares deliverable on such Nominal Settlement
Date on two or more dates (each, a “Staggered Settlement Date”) or at two or more times on the
Nominal Settlement Date as follows: (i) in such notice, Citi will specify to Counterparty the
related Staggered Settlement Dates (each of which will be on or prior to such Nominal Settlement
Date, but not prior to the beginning of the related “Settlement Period”) or delivery times and
how it will allocate the Shares it is required to deliver under “Net Share Settlement” above
among the Staggered Settlement Dates or delivery times; and (ii) the aggregate number of Shares
that Citi will deliver to Counterparty hereunder on all such Staggered Settlement Dates and
delivery times will equal the number of Shares that Citi would otherwise be required to deliver
on such Nominal Settlement Date.
	 
	 	 	Additional Termination Events. The occurrence of (i) an “Event of Default” with respect to
Counterparty under the terms of the Convertible Notes as set forth in the Indenture as described
in the Offering Memorandum under “Description of Notes—Events of Default; Notice and Waiver”
that either (a) has remained uncured for a period of 60 consecutive calendar days or (b) has
resulted in the acceleration of the Convertible Notes pursuant to the terms of the Indenture,
(ii) an Amendment Event, or (iii) a determination by Counterparty that Citi is a “Disqualified
Person” or any action by Counterparty to cause any shares owned by Citi to be subject to
redemption or to any suspension of rights of stock ownership (in each case pursuant to or within
the meaning of Article IV(D) of the Restated Certificate of Incorporation of Counterparty or any
analogous or successor provisions) shall be an Additional Termination Event, in each case with
the Transaction as the sole Affected Transaction and Counterparty as the sole Affected Party and
Citi as the party entitled to designate an Early Termination Date pursuant to Section 6(a) of
the Agreement .

11

 

	 	 	“Amendment Event” means that Counterparty amends, modifies, supplements or obtains a waiver with
respect to any term of the Indenture or the Convertible Notes if such amendment, modification,
supplement or waiver has an adverse effect on this Transaction or Citi’s ability to hedge all or
a portion of this Transaction, with such determination to be made in the sole discretion of the
Calculation Agent. For the avoidance of doubt, Counterparty electing to increase the Conversion
Rate pursuant to a Discretionary Adjustment shall not constitute an Amendment Event.
	 
	 	 	Disposition of Hedge Shares. Counterparty hereby agrees that if, in the good faith reasonable
judgment of Citi, based upon advice of counsel, the Shares (the “Hedge Shares”) acquired by Citi
for the purpose of hedging its obligations pursuant to the Transaction cannot be sold in the
public market by Citi without registration under the Securities Act, Counterparty shall, at its
election: (i) in order to allow Citi to sell the Hedge Shares in a registered offering, make
available to Citi an effective registration statement under the Securities Act to cover the
resale of such Hedge Shares and (A) enter into an agreement, in form and substance satisfactory
to Citi, substantially in the form of an underwriting agreement for a registered offering, (B)
provide accountant’s “comfort” letters in customary form for registered offerings of equity
securities, (C) provide disclosure opinions of nationally recognized outside counsel to
Counterparty reasonably acceptable to Citi, (D) provide other customary opinions, certificates
and closing documents customary in form for registered offerings of equity securities and (E)
afford Citi a reasonable opportunity to conduct a “due diligence” investigation with respect to
Counterparty customary in scope for underwritten offerings of equity securities; provided,
however, that if Citi, in its sole reasonable discretion, is not satisfied with access to due
diligence materials, the results of its due diligence investigation, or the procedures and
documentation for the registered offering referred to above, then clause (ii) or clause (iii) of
this paragraph shall apply at the election of Counterparty; (ii) in order to allow Citi to sell
the Hedge Shares in a private placement, enter into a private placement agreement substantially
similar to private placement purchase agreements customary for private placements of equity
securities, in form and substance satisfactory to Citi, including customary representations,
covenants, blue sky and other governmental filings and/or registrations, indemnities to Citi,
due diligence rights (for Citi or any designated buyer of the Hedge Shares from Citi), opinions
and certificates and such other documentation as is customary for private placements agreements,
all reasonably acceptable to Citi (in which case, the Calculation Agent shall make any
adjustments to the terms of the Transaction that are necessary, in its reasonable judgment, to
compensate Citi for any discount from the public market price of the Shares incurred on the sale
of Hedge Shares in a private placement); or (iii) purchase the Hedge Shares from Citi at the
VWAP Price on such Exchange Business Days, and in the amounts, requested by Citi. “VWAP Price”
means, on any Exchange Business Day, the per Share volume-weighted average price as displayed
under the heading “Bloomberg VWAP” on Bloomberg page GET.N <equity> AQR (or any successor
thereto) in respect of the period from 9:30 a.m. to 4:00 p.m. (New York City time) on such
Exchange Business Day (or if such volume-weighted average price is unavailable, the market value
of one Share on such Exchange Business Day, as determined by the Calculation Agent using a
volume-weighted method). This paragraph shall survive the termination, expiration or early
unwind of the Transaction.
	 
	 	 	Status of Claims in Bankruptcy. Citi acknowledges and agrees that this Confirmation is not
intended to convey to Citi rights with respect to the Transaction that are senior to the claims
of common stockholders in any U.S. bankruptcy proceedings of Counterparty; provided that nothing
herein shall limit or shall be deemed to limit Citi’s right to pursue remedies in the event of a
breach by Counterparty of its obligations and agreements with respect to the Transaction;
provided, further, that nothing herein shall limit or shall be deemed to limit Citi’s rights in
respect of any transactions other than the Transaction.
	 
	 	 	No Collateral. Notwithstanding any provision of this Confirmation, the Agreement, Equity
Definitions, or any other agreement between the parties to the contrary, the obligations of
Counterparty under the Transaction are not secured by any collateral.
	 
	 	 	Securities Contract; Swap Agreement. The parties hereto agree and acknowledge that Citi is a
“financial institution,” “swap participant” and “financial participant” within the meaning of
Sections 101(22), 101(53C) and 101(22A) of the Bankruptcy Code. The parties hereto further
agree and acknowledge (A) that this Confirmation is (i) a “securities contract,” as such term is
defined in Section 741(7) of the Bankruptcy Code, with respect to which each payment and
delivery hereunder or in connection herewith is a “termination value,” “payment amount” or
“other transfer obligation” within the meaning of Section 362 of the Bankruptcy Code and a

12

 

	 	 	“settlement payment” or a “transfer” within the meaning of Section 546 of the Bankruptcy Code,
and (ii) a “swap agreement,” as such term is defined in Section 101(53B) of the Bankruptcy Code,
with respect to which each payment and delivery hereunder or in connection herewith is a
“termination value,” a “payment amount” or “other transfer obligation” within the meaning of
Section 362 of the Bankruptcy Code and a “transfer” within the meaning of Section 546 of the
Bankruptcy Code, and (B) that Citi is entitled to the protections afforded by, among other
sections, Section 362(b)(6), 362(b)(17), 362(b)(27), 362(o), 546(e), 546(g), 546(j), 548(d)(2),
555, 560 and 561 of the Bankruptcy Code.
	 
	 	 	Repurchase Notices. Counterparty shall, on any day on which Counterparty effects any repurchase
of Shares, provide Citi with a written notice of such repurchase (a “Repurchase Notice”) on such
day if, following such repurchase, the Unit Equity Percentage as determined on such day is
greater by 0.5% or more than the Unit Equity Percentage included in the immediately preceding
Repurchase Notice (or, in the case of the first such Repurchase Notice, greater by 0.5% or more
than the Unit Equity Percentage as of the date hereof). The “Unit Equity Percentage” as of any
day is the fraction, expressed as a percentage, (i) the numerator of which is the product of the
Applicable Percentage, the number of Note Hedging Units and the Note Hedging Unit Entitlement,
and (ii) the denominator of which is the number of Shares outstanding on such day. Counterparty
agrees to indemnify and hold harmless Citi and its affiliates and their respective officers,
directors, employees, advisors, agents and controlling persons (each, a “Section 16 Indemnified
Person”) from and against any and all losses (including losses relating to Citi’s hedging
activities as a consequence of becoming, or of the risk of becoming, a Section 16 “insider”,
including without limitation, any forbearance from hedging activities or cessation of hedging
activities and any losses in connection therewith with respect to the Transaction), claims,
damages, judgments, liabilities and expenses (including reasonable attorney’s fees), joint or
several, to which a Section 16 Indemnified Person may become subject, as a result of
Counterparty’s failure to provide Citi with a Repurchase Notice on the day and in the manner
specified in this paragraph, and to reimburse, upon written request, each of such Section 16
Indemnified Persons for any reasonable legal or other expenses incurred in connection with
investigating, preparing for, providing testimony or other evidence in connection with or
defending any of the foregoing. If any suit, action, proceeding (including any governmental or
regulatory investigation), claim or demand shall be brought or asserted against the Section 16
Indemnified Person, such Section 16 Indemnified Person shall promptly notify Counterparty in
writing, and Counterparty, upon request of the Section 16 Indemnified Person, shall retain
counsel reasonably satisfactory to the Section 16 Indemnified Person to represent the Section 16
Indemnified Person and any others Counterparty may designate in such proceeding and shall pay
the fees and expenses of such counsel related to such proceeding. Counterparty shall be
relieved from liability to the extent that the Section 16 Indemnified Person fails promptly to
notify Counterparty of any action commenced against it in respect of which indemnity may be
sought hereunder; provided that failure to notify Counterparty (x) shall not relieve
Counterparty from any liability hereunder to the extent it is not materially prejudiced as a
result thereof and (y) shall not, in any event, relieve Counterparty from any liability that it
may have otherwise than
on account of this indemnity agreement. Counterparty shall not be
liable for any settlement of any proceeding effected without its written consent, but if settled
with such consent or if there be a final judgment for the plaintiff, Counterparty agrees to
indemnify any Section 16 Indemnified Person from and against any loss or liability by reason of
such settlement or judgment. Counterparty shall not, without the prior written consent of the
Section 16 Indemnified Person, effect any settlement of any pending or threatened proceeding in
respect of which any Section 16 Indemnified Person is or could have been a party and indemnity
could have been sought hereunder by such Section 16 Indemnified Person, unless such settlement
includes an unconditional release of such Section 16 Indemnified Person from all liability on
claims that are the subject matter of such proceeding on terms reasonably satisfactory to such
Section 16 Indemnified Person. If the indemnification provided for in this paragraph is
unavailable to a Section 16 Indemnified Person or insufficient in respect of any losses, claims,
damages or liabilities referred to therein, then Counterparty, in lieu of indemnifying such
Section 16 Indemnified Person thereunder, shall contribute to the amount paid or payable by such
Section 16 Indemnified Person as a result of such losses, claims, damages or liabilities. The
remedies provided for in this paragraph are not exclusive and shall not limit any rights or
remedies that may otherwise be available to any Section 16 Indemnified Person at law or in
equity. The indemnity and contribution agreements contained in this paragraph shall remain
operative and in full force and effect regardless of the termination of the Transaction.
	 
	 	 	Foreign Ownership Notices. Promptly following any determination by Counterparty of the
percentage (“Foreign Ownership Percentage”) of its “capital stock” owned of record or voted by
“aliens” and other persons

13

 

	 	 	described in Section 310 (b)(4) of the Communications Act of 1934 (or
any successor provisions) (in each case within the meaning of such Section 310(b)(4)) and on any
date on which Counterparty is obligated to deliver a Repurchase Notice, Counterparty shall
provide Citi with a written notice setting out the Foreign Ownership Percentage and the Pro
Forma Foreign Ownership Percentage; provided, however, that should Counterparty be in
possession of material non-public information regarding Counterparty, Counterparty shall not
communicate such information to Citi in connection with this Transaction. “Pro Forma Foreign
Ownership Percentage” means the Foreign Ownership Percentage determined as if Citi owned a
number of Shares equal to the product of the Applicable Percentage, the Number of Note Hedging
Units and the Note Hedging Unit Entitlement.
	 
	 	 	Alternative Calculations and Citi Payment on Early Termination and on Certain Extraordinary
Events. If Citi owes Counterparty any amount in connection with the Transaction pursuant to
Sections 12.2, 12.3 (and “Consequences of Merger Events” above), 12.6, 12.7 or 12.9 of the
Equity Definitions (except in the case of an Extraordinary Event in which the consideration or
proceeds to be paid to holders of Shares as a result of such event consists solely of cash) or
pursuant to Section 6(d)(ii) of the Agreement (except in the case of an Event of Default in
which Counterparty is the Defaulting Party or a Termination Event in which Counterparty is the
Affected Party, other than (x) an Event of Default of the type described in Section 5(a)(iii),
(v), (vi) or (vii) of the Agreement or (y) a Termination Event of the type described in Section
5(b)(i), (ii), (iii), (iv), (v) or (vi) of the Agreement that in the case of either (x) or (y)
resulted from an event or events outside Counterparty’s control) (a “Citi Payment Obligation”),
Counterparty shall have the right, in its sole discretion, to require Citi to satisfy any such
Citi Payment Obligation by delivery of Termination Delivery Units (as defined below) by giving
irrevocable telephonic notice to Citi, confirmed in writing within one Scheduled Trading Day,
between the hours of 9:00 a.m. and 4:00 p.m. New York time on the Early Termination Date or
other date the transaction is terminated, as applicable (“Notice of Citi Termination Delivery”);
provided that if Counterparty does not validly request Citi to satisfy the Citi Payment
Obligation by delivery of Termination Delivery Units, Citi shall have the right, in its sole
discretion, to satisfy the Citi Payment Obligation by such delivery, notwithstanding
Counterparty’s election to the contrary. Within a commercially reasonable period of time
following receipt of a Notice of Citi Termination Delivery, Citi shall deliver to Counterparty a
number of Termination Delivery Units having a cash value equal to the amount of such Citi
Payment Obligation (such number of Termination Delivery Units to be delivered to be determined
by the Calculation Agent as the number of whole Termination Delivery Units that could be
purchased over a commercially reasonable period of time with the cash equivalent of such payment
obligation). If the provisions set forth in this paragraph are applicable, the provisions of
Sections 9.8, 9.9, 9.10, 9.11 (modified as described above) and 9.12 of the Equity Definitions
shall be applicable, except that all references to “Shares” shall be read as references to
“Termination Delivery Units”.
	 
	 	 	“Termination Delivery Unit” means (a) in the case of a Termination Event, an Event of Default or
an Extraordinary Event (other than an Insolvency, Nationalization or Merger Event), one Share or
(b) in the case of an Insolvency, Nationalization or Merger Event, a unit consisting of the
number or amount of each type of property received by a holder of one Share (without
consideration of any requirement to pay cash or other consideration in lieu of fractional
amounts of any securities) in such Insolvency, Nationalization or Merger Event. If a
Termination Delivery Unit consists of property other than cash or New Shares and Counterparty
provides irrevocable written notice to the Calculation Agent on or prior to the Closing Date
that it elects to receive cash, New Shares or a combination thereof (in such proportion as
Counterparty designates) in lieu of such other property, the Calculation Agent shall replace
such property with cash, New Shares or a combination thereof as components of a Termination
Delivery Unit in such amounts, as determined by the Calculation Agent in its discretion by
commercially reasonable means, as shall have a value equal to the value of the property so
replaced. If such Insolvency, Nationalization or Merger Event involves a choice of
consideration to be received by holders, such holder shall be deemed to have elected to receive
the maximum possible amount of cash.
	 
	 	 	Delivery or Receipt of Cash. For the avoidance of doubt, nothing in this Confirmation (other
than Counterparty’s obligation to pay the Premium) shall be interpreted as requiring
Counterparty to cash settle this Transaction, except in circumstances where such cash settlement
is within Counterparty’s control (including, without limitation, where Counterparty elects to
deliver or receive cash (including by reason of its election of the Note Settlement Method),
where Counterparty fails timely to provide the Notice of Citi Termination Delivery, or where
Counterparty has made the Private Placement Procedures unavailable due to the occurrence of
events within its control) or in those circumstances in which holders of the Shares would also
receive cash.

14

 

	 	 	Rule 10b-18. Except as disclosed to Citi in writing prior to the date on which the offering of
the Convertible Notes was first announced, Counterparty represents and warrants to Citi that it
has not made any purchases of blocks by or for itself or any of its Affiliated Purchasers
pursuant to the one block purchase per week exception in Rule 10b-18(b)(4) under the Exchange
Act during each of the four calendar weeks preceding, and during the week of, such date (“Rule
10b-18 purchase,” “blocks” and “Affiliated Purchaser” each as defined in Rule 10b-18 under the
Exchange Act). Counterparty agrees and acknowledges that it shall not, and shall cause its
affiliates and Affiliated Purchasers not to, directly or indirectly (including by means of a
derivative instrument) enter into any transaction to purchase any Shares during the period
beginning on such date and ending on the earlier of (i) December 7, 2009 and (ii) the day on
which Citi has informed Counterparty in writing that it has completed all purchases of Shares or
other transactions to hedge its exposure to the Transaction. For the avoidance of doubt, this
paragraph shall not prohibit any purchase of Shares effected by or for an issuer “plan” by an
“agent independent of the issuer” (as such terms are defined in Rule 10b-18 under the Exchange
Act).
	 
	 	 	Regulation M. Counterparty was not on the date on which the offering of the Convertible Notes
was first announced, has not since such date, and is not on the date hereof, engaged in a
distribution, as such term is used in Regulation M under the Exchange Act, of any securities of
Counterparty, other than a distribution meeting the requirements of the exception set forth in
Sections 101(b)(10) and 102(b)(7) of Regulation M under the Exchange Act or the offering of
Shares pursuant to the Underwriting Agreement between Gaylord Entertainment Company and Citi
Bank Securities (as representative of the several underwriters) dated as of September 23, 2009.
Counterparty shall not, until the earlier of (i) December 7, 2009 and (ii) the day on which Citi
has informed Counterparty in writing that it has completed all purchases of Shares or other
transactions to hedge its exposure to the Transaction, engage in any such distribution.
	 
	 	 	No Material Non-Public Information. On each day during the period beginning on the date on
which the offering of the Convertible Notes was first announced and ending on the earlier of (i)
December 7, 2009 and (ii) the day on which Citi has informed Counterparty in writing that Citi
has completed all purchases of Shares or other transactions to hedge initially its exposure with
respect to the Transaction, Counterparty represents and warrants to Citi that it is not aware of
any material nonpublic information concerning itself or the Shares.
	 
	 	 	Right to Extend. Citi may postpone any potential Exercise Date or postpone or extend any other
date of valuation or delivery with respect to some or all of the relevant Note Hedging Units (in
which event the Calculation Agent shall make appropriate adjustments to the Settlement Amount
for such Note Hedging Units), if Citi determines, in its reasonable discretion, that (a) a
Regulatory Disruption has occurred or (b) such extension is reasonably necessary or appropriate
to (i) preserve Citi’s hedging or hedge unwind activity hereunder in light of existing liquidity
conditions or (ii) enable Citi to effect purchases of Shares in connection with its hedging,
hedge unwind or settlement activity hereunder in a manner that would, if Citi were the Issuer or
an affiliated purchaser of the Issuer, be in compliance with applicable legal, regulatory or
self-regulatory requirements, or with related policies and procedures applicable to Citi. “Regulatory Disruption” shall mean any event that Citi, in its commercially reasonable
discretion upon the advice of outside counsel, determines makes it appropriate with regard to
any legal, regulatory or self-regulatory requirements or related policies and procedures
(whether or not such requirements, policies or procedures are imposed by law or have been
voluntarily adopted by Citi, and including without limitation Rule 10b-18, Rule 10b-5,
Regulation 13D-G and Regulation 14E under the Exchange Act and Regulation M and/or analyzing
Citi as if it were the Issuer or an affiliated purchaser of the Issuer), for Citi to refrain
from or decrease any market activity in connection with the Transaction.
	 
	 	 	Transfer or Assignment. Counterparty may not transfer any of its rights or obligations under
the Transaction without the prior written consent of Citi. Citi may transfer or assign all or a
portion of its Note Hedging Units hereunder at any time without the consent of Counterparty to
any (i) of its affiliates, (ii) entities sponsored or organized by, on behalf of or for the
benefit of Citi (provided that, in the case of (i) and (ii), such affiliate or entity shall have
a credit standing equivalent to that of Citi) or (iii) Qualifying Financial Institution.
“Qualifying Financial Institution” means any bank, trust company, broker, dealer, insurance
company, other financial intermediary or holding company that controls one or more of the
foregoing entities that (i) is regulated (or whose guarantor is regulated) as to matters of
financial integrity and soundness by a financial regulator of a G10 member country, (ii) has (or
whose guarantor has) shareholders equity (or an applicable, comparable measure of

15

 

	 	 	net worth) of
not less than U.S.$15,000,000,000; and (iii) has a rating (or whose guarantor has a rating) for
its long term, unsecured and unsubordinated indebtedness of A or better by Standard & Poor’s
Ratings Services or its successor (“S&P”), or A2 or better by Moody’s Investors Service, Inc. or
its successor (“Moody’s”) or, if either S&P or Moody’s ceases to rate such debt, at least an
equivalent rating or better by a substitute agency rating mutually agreed by Counterparty and
Citi.
	 
	 	 	If, as determined in Citi’s sole discretion, (a) at any time (1) the Equity Percentage exceeds
4.9% or the Pro Forma Foreign Ownership Percentage exceeds 22.0% or (2) Citi, Citi Group (as
defined below) or any person whose ownership position would be aggregated with that of Citi or
Citi Group (Citi, Citi Group or any such person, a “Citi Person”) under Section 203 of the
Delaware General Corporation Law (the “DGCL Takeover Statute”) or other federal, state or local
laws, regulations or regulatory orders applicable to ownership of Shares (“Applicable Laws”) or
the Amended and Restated Rights Agreement between Gaylord Entertainment Company and
Computershare Trust Company, N.A., dated as of March 9, 2009 (as may be amended, modified or
supplemented from time to time, the “Rights Agreement”), owns, beneficially owns, constructively
owns, controls, holds the power to vote or otherwise meets a relevant definition of ownership,
or could be reasonably viewed as meeting any of the foregoing, in excess of a number of Shares
equal to (x) the number of Shares that would give rise to (I) reporting, registration, filing or
notification obligations or other requirements (including obtaining prior approval by a state or
federal regulator) of a Citi Person under Applicable Laws (including, without limitation,
“interested shareholder” or “acquiring Person” status under the DGCL Takeover Statute) and with
respect to which such requirements have not been met or the relevant approval has not been
received, (II) a distribution date (or other event with similar consequences) under the Rights
Agreement or (III) give rise to a designation of Citi as a “Disqualified Person” or cause any
shares owned by Citi to be subject to redemption or to any suspension of rights of stock
ownership (in each case pursuant to or within the meaning of Article IV(D) of the Restated
Certificate of Incorporation of Counterparty or any analogous or successor provisions) minus (y)
1% of the number of Shares outstanding on the date of determination (either such condition
described in clause (1) or (2), an “Excess Ownership Position”), and (b) Citi is unable, after
commercially reasonable efforts, to effect a transfer or assignment on pricing and terms and
within a time period reasonably acceptable to it of all or a portion of this Transaction
pursuant to the preceding paragraph such that an Excess Ownership Position no longer exists,
Citi may designate any Scheduled Trading Day as an Early Termination Date with respect to a
portion (the “Terminated Portion”) of this Transaction, such that an Excess Ownership Position
no longer exists following such partial termination. In the event that Citi so designates an
Early Termination Date with respect to a portion of this Transaction, a payment shall be made
pursuant to Section 6 of the Agreement as if (i) an Early Termination Date had been designated
in respect of a Transaction having terms identical to this Transaction and a Number of Note
Hedging Units equal to the Terminated Portion, (ii) Counterparty shall be the sole Affected
Party with respect to such partial termination and (iii) such Transaction shall be the only
Terminated Transaction (and, for the avoidance of doubt, the provisions set forth under the
caption “Alternative Calculations and Citi Payment on Early Termination and on Certain
Extraordinary Events” shall apply to any amount that is payable by Citi to Counterparty pursuant
to this sentence). The “Equity Percentage” as of any day is the fraction, expressed as a
percentage, (A) the numerator of which is the number of Shares that Citi and any of its
affiliates subject to aggregation with Citi for purposes of the “beneficial ownership” test
under Section 13 of the Exchange Act and all persons who may form a “group” (within the meaning
of Rule 13d-5(b)(1) under the Exchange Act) with Citi (collectively, “Citi Group”) “beneficially
own” (within the meaning of Section 13 of the Exchange Act) without duplication on such day and
(B) the denominator of which is the number of Shares outstanding on such day.
	 
	 	 	Notwithstanding any other provision in this Confirmation to the contrary requiring or allowing
Citi to purchase, sell, receive or deliver any shares or other securities to or from
Counterparty, Citi may designate any of its affiliates to purchase, sell, receive or deliver
such shares or other securities and otherwise to perform Citi’s obligations in respect of the
Transaction and any such designee may assume such obligations. Citi shall be discharged of its
obligations to Counterparty to the extent of any such performance.
	 
	 	 	Private Placement Procedures. Except in circumstances where Counterparty has taken, or caused to
be taken, any action that would make unavailable either the exemption pursuant to Section 4(2)
of the Securities Act for the sale by Citi (or any affiliate designated by Citi) of the Unwind
Shares or the exemption pursuant to Section 4(1) of Section 4(3) of the Securities Act for
resales of the Unwind Shares by Citi (or any such affiliate of Citi),

16

 

	 	 	Counterparty may elect to
settle its obligations pursuant to “Early Unwind” below in accordance with these “Private
Placement Procedures” by giving notice to Citi no later than 8 a.m. New York time on the
Exchange Business Day immediately following the Early Unwind Date. In such event, Counterparty
shall deliver a number of Shares (or, if the Shares have been converted into other securities or
property in connection with an Extraordinary Event, a number or amount of such other securities
or property as a holder of Shares would be entitled to receive upon the consummation or closing
of such Extraordinary Event) having a cash value equal to the amount of such payment obligation.
Such number of Shares or amount of other securities or property to be delivered shall be
determined by the Calculation Agent to be the number of Shares that could be sold over a
reasonable period of time to produce the cash equivalent of such payment obligation (including
interest accrued thereon at the Federal Funds rate plus 100 basis points per annum). Settlement
relating to any delivery of Shares or other securities or property pursuant to this paragraph
shall occur within a reasonable period of time; provided that Citi agrees that if at any time a
delivery of Shares hereunder would result in a Share Accumulation Condition, it shall so notify
Counterparty and instruct Counterparty to defer such delivery to the extent necessary to avoid
the existence of a Share Accumulation Condition. If any delivery owed to Citi hereunder is not
made, in whole or in part, as a result of this provision, Counterparty’s obligation to make such
delivery shall not be extinguished and Counterparty shall make such delivery as promptly as
practicable after, but in no event later than one Clearance System Business Day after, Citi
gives notice to Counterparty that such delivery would not result in the existence of a Share
Accumulation Condition.
	 
	 	 	“Share Accumulation Condition” means that, at any time of determination, the number of Unwind
Shares previously delivered to Citi pursuant to this provision and then still owned by Citi is
greater than 2,048,975 (as such number may be adjusted by the Calculation Agent from time to
time to account for any subdivision, stock-split, stock combination, reclassification or similar
dilutive or anti-dilutive event with respect to the Shares). Notwithstanding anything herein or
in the Agreement to the contrary, the aggregate number of Shares that Counterparty may be
required to deliver to Citi under this Transaction shall not exceed twice the product of the
Applicable Percentage, the initial Number of Note Hedging Units and the Note Hedging Unit
Entitlement, as such number may be adjusted by the Calculation Agent from time to time to
account for any subdivision, stock-split, stock combination, reclassification or similar
dilutive or anti-dilutive event with respect to the Shares (the “Maximum Amount”).
	 
	 	 	In the event Counterparty shall not have delivered the full number of Shares otherwise
applicable as a result of the proviso above relating to the Maximum Amount (such deficit, the
“Deficit Shares”), Counterparty shall be continually obligated to deliver, from time to time
until the full number of Deficit Shares have been delivered pursuant to this paragraph, Shares
when, and to the extent, that (i) Shares are repurchased, acquired or otherwise received by
Counterparty or any of its subsidiaries after the Trade Date (whether or not in exchange for
cash, fair value or any other consideration), (ii) authorized and unissued Shares reserved for
issuance in respect of other transactions prior to the Trade Date which prior to such date
become no longer so reserved and (iii) Counterparty additionally authorizes any unissued Shares
that are not reserved for other transactions. Counterparty shall immediately notify Citi of the
occurrence of any of the foregoing events (including the number of Shares subject to clause (i),
(ii) or (iii) and the corresponding number of Shares to be delivered).
	 
	 	 	Without limiting the generality of the foregoing, Counterparty agrees that any Shares delivered
pursuant to these “Private Placement Procedures” to Citi, as purchaser of such Shares, (i) may
be transferred by and among Citi and its affiliates and Counterparty shall effect such transfer
without any further action by Citi and (ii) after the period of 6 months from the delivery date
(or 1 year from the delivery date if, at such time, informational requirements of Rule 144(c)
are not satisfied with respect to Counterparty) has elapsed after delivery date for such Shares,
Counterparty shall promptly remove, or cause the transfer agent for such Shares to remove, any
legends referring to any such restrictions or requirements from such Shares upon request by Citi
(or such affiliate of Citi) to Counterparty or such transfer agent, without any requirement for
the delivery of any certificate, consent, agreement, opinion of counsel, notice or any other
document, any transfer tax stamps or payment of any other amount or any other action by Citi (or
such affiliate of Citi).
	 
	 	 	The delivery of Shares by Counterparty pursuant to these “Private Placement Procedures” shall be
effected in customary private placement procedures with respect to such Shares reasonably
acceptable to Citi. The Private Placement settlement of such Shares shall include customary
representations, covenants, blue sky and other

17

 

	 	 	governmental filings and/or registrations,
indemnities to Citi, due diligence rights (for Citi or any buyer of the Shares designated by
Citi), opinions and certificates, and such other documentation as is customary for private
placement agreements for private placements of equity securities of issuers of its size, all
reasonably acceptable to Citi.
	 
	 	 	Severability; Illegality. If compliance by either party with any provision of the Transaction
would be unenforceable or illegal, (a) the parties shall negotiate in good faith to resolve such
unenforceability or illegality in a manner that preserves the economic benefits of the
transactions contemplated hereby and (b) the other provisions of the Transaction shall not be
invalidated, but shall remain in full force and effect.
	 
	 	 	Waiver of Jury Trial. EACH PARTY WAIVES, TO THE FULLEST EXTENT PERMITTED BY APPLICABLE LAW,
ANY RIGHT IT MAY HAVE TO A TRIAL BY JURY IN RESPECT OF ANY SUIT, ACTION OR PROCEEDING RELATING
TO THE TRANSACTION. EACH PARTY (I) CERTIFIES THAT NO REPRESENTATIVE, AGENT OR ATTORNEY OF THE
OTHER PARTY HAS REPRESENTED, EXPRESSLY OR OTHERWISE, THAT SUCH OTHER PARTY WOULD NOT, IN THE
EVENT OF SUCH A SUIT, ACTION OR PROCEEDING, SEEK TO ENFORCE THE FOREGOING WAIVER AND (II)
ACKNOWLEDGES THAT IT AND THE OTHER PARTY HAVE BEEN INDUCED TO ENTER INTO THE TRANSACTION, AS
APPLICABLE, BY, AMONG OTHER THINGS, THE MUTUAL WAIVERS AND CERTIFICATIONS PROVIDED HEREIN.
	 
	 	 	Early Unwind. In the event the sale of Convertible Notes is not consummated with the
underwriter thereof for any reason by the close of business in New York on September 29, 2009
(or such later date as agreed upon by the parties) (September 29, 2009 or such later date as
agreed upon being the “Early Unwind Date”), the Transaction shall automatically terminate (the
“Early Unwind”) on the Early Unwind Date and (a) the Transaction and all of the respective
rights and obligations of Citi and Counterparty under the Transaction shall be cancelled and
terminated and (b) each party shall be released and discharged by the other party from and
agrees not to make any claim against the other party with respect to any obligations or
liabilities of the other party arising out of and to be performed in connection with the
Transaction either prior to or after the Early Unwind Date; provided that Counterparty shall
reimburse the cost of and, without duplication, losses arising out of all derivatives and other
hedging activities entered into, and all purchases and dispositions of Shares, by Citi or one or
more of its affiliates, in each case, in connection with hedging of the Transaction and the
unwind of such hedging activities; provided further that Counterparty’s reimbursement obligation
pursuant to the immediately preceding proviso shall not apply to the extent the Early Unwind
Date occurred as the result of a breach of the Purchase Agreement by Citi. The amount payable
by Counterparty shall be Citi’s (or its affiliates) actual costs and losses related to such
Shares and unwind costs of such derivatives and other hedging activities as Citi informs
Counterparty and, subject to Counterparty’s right to elect settlement by delivery of Shares (the
“Unwind Shares”) pursuant to the “Private Placement Procedures” above, shall be paid in
immediately available funds on the Early Unwind Date. Citi and Counterparty represent and
acknowledge to the other that, subject to the proviso included in the second preceding sentence,
upon an Early Unwind, all obligations with respect to the Transaction shall be deemed fully and
finally discharged.
	 
	 	 	Governing law: The law of the State of New York.

Contact information. For purposes of the Agreement (unless otherwise specified in the Agreement),
the addresses for notice to the parties shall be:

((a) Counterparty

Gaylord Entertainment Company

One Gaylord Drive

Nashville, TN 37214

Attention: General Counsel

18

 

Telephone: (615) 316-6000

Facsimile: (615) 316-6854

with a copy to:

Bass, Berry & Sims PLC

315 Deaderick Street, Suite 2700

Nashville, Tennessee 37238

Attention: F. Mitchell Walker, Jr.

Telephone: (615) 742-6275

Email: mwalker@bassberry.com

(b) Citi

Citibank N.A.

390 Greenwich Street.

New York, NY 10013

Attention:        Equity Derivatives

Telephone:      (212) 723-8328

Facsimile:       (212) 723-7357

with a copy to:

Citibank N.A.

250 West Street, 10th Floor

New York, New York 10013

Attention:        GCIB Legal Group — Derivatives

Telephone:      (212) 816-2211

Facsimile:       (212) 816-7772

Hard copies of the confirmation should be returned to:

Citibank N.A.

333 West 34th Street

2nd Floor

New York, NY 10001

Attention: Confirmation Unit

This Confirmation may be executed in several counterparts, each of which shall be deemed an
original but all of which together shall constitute one and the same instrument.

Counterparty hereby agrees to check this Confirmation and to confirm that the foregoing correctly
sets forth the terms of the Transaction by signing in the space provided below and returning to
Citi a facsimile of the fully-executed Confirmation to Citi at (212) 723-7357. Originals shall be
provided for your execution upon your request.

We are very pleased to have executed the Transaction with you and we look forward to completing
other transactions with you in the near future.

19

 

Very truly yours,

CITIBANK N.A.

	 	 	 	 	 
	 	 	 
	By:  	/s/ James Heathcote
 	 	 
	 	Name:  	James Heathcote 	 	 
	 	Title:  	Authorized Signatory 	 	 

[Signature Page to Note Hedge]

 

Counterparty hereby agrees to, accepts and confirms the terms of the foregoing as of the Trade
Date.

GAYLORD ENTERTAINMENT COMPANY

	 	 	 	 	 
	 	 	 
	By:  	/s/ Carter R. Todd
 	 	 
	 	Name:  	Carter R. Todd 	 	 
	 	Title:  	EVP and General Counsel 	 	 

[Counterparty Signature Page to Note Hedge]

 

ANNEX A

Certain terms of the Transaction is set forth below.

	 	 	 
	Strike Price:

	 	27.25 
	 
	 	 
	Applicable Percentage:

	 	20% 
	 
	 	 
	Premium:

	 	USD12,780,000 

A-1

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