Document:

Ex-10.6

 

Exhibit 10.6

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Exhibit 10.6

CHANGE-IN-CONTROL AGREEMENT

     THIS CHANGE-IN-CONTROL AGREEMENT is made and entered into as of the 19th day of December, 2001
by and between FIRST CHARTER CORPORATION (the “Company”), a North Carolina corporation, and Richard
A. Manley (“Employee”), an individual residing in Davidson, North Carolina.

Background Statement

     First Charter Bank (the “Bank”) is a wholly owned subsidiary of the Company. Employee is a
valued employee of the Bank. In order to induce Employee to continue employment with the Bank and
to enhance Employee’s job security, the Company desires to provide compensation to Employee in the
event Employee’s employment is terminated following a change- in-control of the Company, as
hereinafter provided.

     NOW, THEREFORE, in consideration of the mutual covenants contained herein, the compensation
the Company agrees to pay to Employee, Employee’s continued employment with the Bank, and of other
good and valuable considerations, the receipt and sufficiency of which are hereby acknowledged, the
Company and Employee agree as follows:

     1. Termination following a Change-in-Control. If a Change-in-Control (as defined in Section
1(iii) hereof) occurs and if, within one year following the Change-in-Control, the employment of
Employee is terminated (x) by the Company or the Bank other than for Cause or (y) by Employee for
Good Reason, Employee’s Compensation shall continue to be paid, subject to applicable withholdings,
by the Company for a period of 24-months following such termination of employment. In lieu of
receiving payment of Compensation for such 24-month period in installments, the Employee may elect,
at any time prior to the earlier to occur of a Change-in-Control or action by the Board of
Directors of the Company with respect to an event which would, upon consummation, result in a
Change-in-Control (which election shall be evidenced by notice filed with the Company), to be paid
the present value of any such Compensation in a lump sum within 30 days of termination of the
Employee’s employment under circumstances entitling such Employee to Compensation hereunder. The
calculation of the amount due shall be made by the independent accounting firm then performing the
Company’s independent audit, and such calculation, including but not limited to the discount factor
used to determine present value, shall be conclusive.

     For purposes of this Agreement, the following terms shall have the meanings indicated:

	 	(i)  	Cause. Termination by the Company or the Bank for “Cause” shall mean (A)
termination on account of willful misconduct of a material nature by the Employee in
connection with performance of his duties as an employee; (B) use of alcohol or narcotics
that affects his ability to perform his duties as an employee; (C) conviction of a felony
or serious misdemeanor involving moral turpitude; (D) embezzlement or theft from the
Company or the Bank; (E) gross inattention to or dereliction of duty; or (F) performance
by the Employee of any other willful acts which Employee knew or reasonably should have
known would be materially detrimental to the Company or the Bank.

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	 	(ii)  	Good Reason. Termination by the Employee for “Good Reason” shall mean (A) a material
reduction in Employee’s position, duties, responsibilities or status as in effect
immediately preceding the Change-in-Control, or a change in Employee’s title resulting in
a material reduction in his responsibilities or position with the Company or the Bank as
in effect immediately preceding the Change-in-Control, in either case without Employee’s
consent; (B) a material reduction in the rate of Employee’s base salary as in effect
immediately preceding the Change-in-Control or a material decrease in the bonus percentage
to which Employee was entitled pursuant to any of the Company’s incentive bonus plans at
the end of the fiscal year immediately preceding the Change-in-Control, in either case
without Employee’s consent; provided, however, that nothing herein shall
be construed to guarantee the Employee’s bonus award if performance, either by the Company
or Employee, is below target as set forth in any of the Company’s such incentive bonus
plans; or (C) the relocation of Employee, without his consent, to a location outside a 30
mile radius of Concord, North Carolina, following a Change-in-Control.
	 
	 	(iii)  	Change-in-Control. For purposes of this Agreement, “Change-in-Control” shall mean (A)
the consummation of a merger, consolidation, share exchange or similar transaction of the
Company with any other corporation as a result of which the holders of the voting capital
stock of the Company as a group would receive less than 50% of the voting capital stock of
the surviving or resulting corporation; (B) the sale or transfer (other than as security
for obligations of the Company) of substantially all the assets of the Company; (C) in the
absence of a prior expression of approval by the Board of Directors, the acquisition of
more than 20% of the Company’s voting capital stock by any person within the meaning of
Section 13(d)(3) of the Securities Exchange Act of 1934, as amended (the “Exchange Act”),
other than a person, or group including a person, who beneficially owned, as of the date of
this Agreement, more than 5% of the Company’s securities; (D) during any period of two
consecutive years, individuals who at the beginning of such period constitute the Board of
Directors of the Company cease for any reason to constitute at lease a majority thereof
unless the election, or the nomination for election by the Company’s shareholders, of each
new director was approved by a vote of at lease two-thirds of the directors then still in
office who were directors at the beginning of the period; or (E) any other
change-in-control of the Company of a nature that would be required to be reported in
response to Item 6(e) of Schedule 14A of Regulation 14A promulgated under the Exchange Act
or the acquisition of control, within the meaning of Section 2(a)(2) of the Bank Holding
Company Act of 1956, as amended, or Section 602 of the Change in Bank Control Act of 1978,
of the Company by any person, company or other entity.
	 
	 	(iv)  	Compensation. Employee’s Compensation shall consist of the following: (A) Employee’s
annual base salary, as paid by the Company or the Bank, in effect immediately preceding the
Change-in-Control and (B) the average of any bonus paid by the Company or the Bank to
Employee during the two most recent fiscal years ending prior to such Change-in-Control
pursuant to any of the Company’s incentive bonus plan.

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     2. Additional Benefits. Upon termination of Employee’s employment entitling Employee to
Compensation set forth in Section 1 hereof, the Company shall maintain in full force and effect for
the continued benefit of Employee for such 24-month period health insurance (including coverage for
Employee’s dependents to the extent dependent coverage is provided by the Company for its employees
generally) under such plans and programs in which Employee was entitled to participate immediately
prior to the date of such termination of employment, provided that Employee’s continued
participation is possible under the general terms and provisions of such plans and programs. In
the event that Employee’s participation in any such plan or program is barred, the Company shall
arrange to provide Employee with health insurance benefits for such 24-month period substantially
similar to those which Employee would otherwise have been entitled to receive under such plans and
programs from which his continued participation is barred. However, in no event will Employee
receive from the Company the health insurance contemplated by this Section 2 if Employee receives
comparable insurance from any other source.

     3. Limit on Payments. It is the intention of the Company and Employee that no portion of the
payment made under this Agreement, or payments to or for Employee under any other agreement or
plan, be deemed to be an excess parachute payment as defined in Section 280G of the Internal
Revenue Code of 1986, as amended (the “Code”) or any successor provision. The Company and Employee
agree that the present value of any payment hereunder and any other payment to or for the benefit
of Employee in the nature of compensation, receipt of which is contingent on a Change-in-Control of
the Company, and to which Section 280G of the Code or any successor provision thereto applies,
shall not exceed an amount equal to one dollar less than the maximum amount that Employee may
receive without becoming subject to the tax imposed by Section 4999 of the Code or any successor
provision or which the Company may pay without loss of deduction under Section 280G of the Code or
any successor provisions. Present value for purposes of this Agreement shall be calculated in
accordance with Section 1274(b)(2) of the Code or any successor provision. In the event that the
provisions of Section 280G and 4999 of the Code or any successor provisions are repealed without
succession, this Section 3 shall be of no further force or effect.

     4. Effect of Agreement. Nothing contained in this Agreement shall confer upon Employee any
right to continued employment by the Company or the Bank or shall interfere in any way with the
right of the Company or the Bank to terminate his employment at any time for any reason. The
provisions of this Agreement shall not affect in any way the right or power of the Company to
change its business structure or to effect a merger, consolidation, share exchange or similar
transaction, or to dissolve or liquidate, or sell or transfer all or part of its
business or assets.

     5. Source of Payment. All payments provided for under this Agreement shall be paid in cash
from the general funds of the Company, and no special or separate fund shall be established, and no
other segregation of assets shall be made to assure payment, except as provided to the contrary in
funded benefits plans. Employee shall have no right, title or interest whatsoever in or to any
investments that the Company may make to aid the Company in meeting its obligations hereunder.
Nothing contained herein, and no action taken pursuant to the provisions hereof, shall create or be
construed to create a trust of any kind or a fiduciary relationship between the Company and
Employee or any other person. To the extent that any person acquires a right to receive payments
from the Company hereunder, such right shall be no greater than the right of an unsecured creditor
of the Company.

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     6. General Provisions.

	 	(i)  	Binding Effect. This Agreement shall be binding upon, and inure to the benefit of,
Employee and the Company and their respective permitted successors and assigns. Neither
this Agreement nor any right or interest hereunder shall be assignable by Employee, his
beneficiaries, or legal representatives without the Company’s prior written consent. The
Company will require any successor (whether direct or indirect, by purchase, merger,
consolidation, share exchange or otherwise) to all or substantially all of the business
and/or assets of the Company, by agreement in form and substance satisfactory to
Employee, to expressly assume and agree to perform this Agreement in the same manner and
to the same extent that the Company would be required to perform it if no such succession
had taken place. Failure of the Company to obtain such agreement prior to the
effectiveness of any such succession shall be a breach of this Agreement and shall
entitle Employee to compensation from the Company in the same amount and on the same
terms as he would be entitled to hereunder if he terminated his employment for Good
Reason, except that for purposes of implementing the foregoing, the date on which any
such succession becomes effective shall be deemed the date Employee’s employment was
terminated. As used in this Agreement, “Company” shall mean the Company as defined
herein and any successor to its business and/or assets as aforesaid that executes and
delivers the agreement provided for in this Section 6(i) or that otherwise becomes bound
by all the terms and provisions of this Agreement by operation of law.
	 
	 	(ii)  	Amendment of Agreement. This Agreement may not be modified or amended except by an
instrument in writing signed by the parties hereto.
	 
	 	(iii)  	Headings and Gender. The headings of paragraphs herein are included solely for
convenience of reference and shall not control the meaning or interpretation of any of the
provisions of this Agreement.
	 
	 	(iv)  	Governing Law. This Agreement has been executed and delivered in the State of North
Carolina, and its validity, interpretation, performance and enforcement shall be governed
by the laws of such state.

     IN WITNESS WHEREOF, this Agreement has been executed by the parties hereto as of the day and
year first above stated.

	 	 	 
	 

	 	FIRST CHARTER CORPORATION
	 
	 	 
	

	 	By: ________________________
	 
	 	 
	

	 	EMPLOYEE:
	 
	 	 
	

	 	_____________________(SEAL)

47<PAGE>
                                                                    EXHIBIT 10.1

                              EMPLOYMENT AGREEMENT

         THIS AGREEMENT, dated as of May 4, 2005, by and between GAYLORD
ENTERTAINMENT COMPANY, a Delaware corporation having its corporate headquarters
at One Gaylord Drive, Nashville, Tennessee 37214 ("the Company") and DAVID C.
KLOEPPEL, a resident of Nashville, Tennessee ("Executive").

                                   WITNESSETH:

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

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

                                    AGREEMENT

         1. EMPLOYMENT; TERM; PLACE OF EMPLOYMENT. The Company hereby employs
Executive, and Executive hereby accepts employment with the Company upon the
terms and conditions contained in this Agreement. The term of Executive's
employment hereunder shall commence on May 4, 2005 (the "Effective Date") and
shall continue for a period of four (4) years from and after the Effective Date
(the "Employment Period"). For purposes of this Agreement, a "Contract Year"
shall mean a one year period commencing on the Effective Date or any anniversary
thereof. Executive shall render services at the offices established by the
Company in the greater Nashville metropolitan area; provided that Executive
agrees to travel on temporary trips to such other places as may be required to
perform Executive's duties hereunder.

         2. DUTIES; TITLE.

                  (a)      Description of Duties.

                           (i) During the Employment Period, Executive shall
                  serve the Company as its Executive Vice President and Chief
                  Financial Officer and report directly to the President and
                  Chief Executive Officer ("CEO"). Executive shall supervise the
                  financial conduct of the business and affairs of the Company,
                  its subsidiaries and respective divisions, supervise the
                  development function for the Company, and perform such other
                  duties as the CEO shall determine.

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

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

                           (i) Executive may serve on the governing boards of,
                  or otherwise participate in, a reasonable number of trade
                  associations and charitable organizations,

<PAGE>

                  whose purposes are not inconsistent with the activities and
                  the image of the Company;

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

                           (iii) Subject to the prior approval of the Board of
                  Directors, Executive may serve on the board of directors of
                  one or more business corporations, provided also that they do
                  not compete, directly or indirectly, with the Company.

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

         3. CASH COMPENSATION.

                  (a) Base Salary. During the initial Contract Year, the Company
         shall pay to Executive an annual salary of $475,000. Executive's annual
         salary shall be increased in each subsequent Contract Year by a
         percentage equal to the annual percentage increase, if any, generally
         granted to other senior executives, such percentage to be determined
         from time to time by the Human Resources Committee of the Board of
         Directors (such annual salary, together with any increases under this
         subsection (b), being herein referred to as the "Base Salary").

                  (b) Annual Cash Bonus. Executive shall be eligible for an
         annual cash bonus equal to a target of 75% of Executive's Base Salary
         (the "Year-End Bonus") to be paid to him in each calendar year and
         shall be determined based on the achievement of certain goals and
         Company performance criteria as established by the CEO and approved by
         the Board's Human Resources Committee. The Year-End Bonus for each
         calendar year shall be paid to Executive on or before the end of
         February 28th of the immediately succeeding year.

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

         4. RESTRICTED STOCK GRANT. The Company hereby grants to Executive
16,000 restricted shares of Company Common Stock (the "Restricted Stock Grant").
The restrictions on the Restricted Stock Grant shares shall terminate in 4,000
share increments on the first through the fourth anniversaries of August 1,
2005; provided, however, Executive must be employed by the Company on each such
anniversary date for the restrictions on the particular share increment to be
terminated. The Restricted Stock Grant is hereby granted pursuant to the
Company's Omnibus Plan as may hereafter be further amended, and shall otherwise
be subject to the terms of a restricted stock grant agreement between the
Company and Executive in the form prescribed for Company executives generally.
If a restriction terminates as to a 4,000 share increment, the Company shall
deliver such shares to Executive.

         5. BENEFITS; EXPENSES; ETC.

                  (a) Expenses. During the Employment Period, the Company shall
         reimburse Executive, in accordance with the Company's policies and
         procedures, for all reasonable

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<PAGE>

         expenses incurred by Executive, including reimbursement for his
         reasonable first class travel expenses in connection with the
         performance of his duties for the Company.

                  (b) Vehicle Allowance. During the Employment Period, Executive
         shall be entitled to receive from the Company a vehicle allowance of
         $800 per month, subject to future increases as may be granted to senior
         executives.

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

                  (d) Company Plans. During the Employment Period, Executive
         shall be entitled to participate in and enjoy the benefits of (i) the
         Company Health Insurance Plan, (ii) the Company 401(k) Savings Plan,
         (iii) the Company Supplemental Deferred Compensation ("SUDCOMP") Plan,
         and (iv) any health, life, disability, retirement, pension, group
         insurance, or other similar plan or plans which may be in effect or
         instituted by the Company for the benefit of senior executives
         generally, upon such terms as may be therein provided. A summary of
         such benefits as in effect on the date hereof has been provided to
         Executive, the receipt of which is hereby acknowledged.

                  (e) Attorney's Fees. Executive shall be entitled to
         reimbursement for reasonable attorney's fees and expenses incurred by
         Executive in the review and negotiation of this Agreement, upon
         submission of documentation evidencing such fees and expenses.

         6. TERMINATION. Executive's employment hereunder may be terminated
prior to the expiration of the Employment Period as follows:

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

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

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

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

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

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

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

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<PAGE>

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

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

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

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

                           (iii) A reduction by Company in his annual base
                  salary of $475,000 as the same may be increased from time to
                  time pursuant to Section 3(b) hereof;

                           (iv) Company's requiring Executive to be based
                  anywhere other than the Company's headquarters in Nashville,
                  Tennessee except for required travel on the Company's
                  business;

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

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

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

                           (viii) A material breach by the Company of any of its
                  obligations under this Agreement.

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<PAGE>

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

         7. EFFECT OF TERMINATION.

                  (a) Effect Generally. If Executive's employment is terminated
         prior to the fourth anniversary of the Effective Date, the Company
         shall not have any liability or obligation to Executive other than as
         specifically set forth in Section 6, Section 7 and Section 8 hereof.
         Upon the termination of Executive's employment for any reason, he
         shall, upon the request of the Company, resign from all corporate
         offices held by Executive.

                  (b) Effect of Termination by Death. Upon the termination of
         Executive's employment as a result of Death, Executive's estate shall
         be entitled to receive an amount equal to: (i) accrued but unpaid Base
         Salary through the date of termination; (ii) a pro rata portion of
         Executive's Annual Bonus, if any, for the year in which termination
         occurs, (iii) any unpaid portion of the Annual Bonuses for prior
         calendar years, accrued and unpaid vacation pay, unreimbursed expenses
         incurred pursuant to Section 5(a), (b) or (e), and any other benefits
         owed to Executive pursuant to any written employee benefit plan or
         policy of the Company, excluding benefits payable pursuant to any plan
         beneficiary pursuant to a contractual beneficiary designation by
         Executive, (iv) the portion of the Restricted Stock Grant that is free
         from restrictions as of the date of death and the acceleration and
         immediate release of all restrictions from all Restricted Stock Grants
         that are subject to restrictions as of the date of death, (v)
         Executive's vested Stock Options as of the date of death, the vesting
         and exercise of which is governed by the Omnibus Plan; and (vi) all of
         Executive's Stock Options, which pursuant to the Omnibus Plan are
         accelerated as of the termination date (date of death) and are
         exercisable until the expiration of the Stock Option Term.

                  (c) Effect of Termination for Permanent Disability. Upon the
         termination of Executive's employment hereunder as a result of
         Permanent Disability, Executive shall be entitled to receive an amount
         equal to: (i) accrued but unpaid Base Salary through the date of
         termination; (ii) a pro rata portion of Executive's Annual Bonus, if
         any, for the year in which termination occurs, (iii) any unpaid portion
         of an Annual Bonus for prior calendar years, long-term disability
         benefits available to executives of the Company, accrued and unpaid
         vacation pay, unreimbursed expenses incurred pursuant to Section 5(a),
         (b) or (e) and any other benefits owed to Executive pursuant to any
         written employee benefit plan or policy of the Company; (iv) the
         portion of the Restricted Stock Grant that is free from restrictions as
         of the termination date; (v) Executive's vested Stock Options as of the
         date of termination, the vesting of which is governed by the Omnibus
         Plan; and (vi) all of Executive's Stock Options, which pursuant to the
         Omnibus Plan are accelerated as of the termination date and are
         exercisable until the expiration of the Stock Option Term. Payments to
         Executive hereunder shall be reduced by any payments received by
         Executive under any worker's compensation or similar law.

                  (d) Effect of Termination by the Company for Cause or by
         Executive Without Good Reason. Upon the termination of Executive's
         employment by the Company for Cause or by Executive for any reason
         other than Good Reason, Executive shall be entitled to receive an
         amount equal to: (i) accrued but unpaid Base Salary through the date of
         termination, (ii) any unpaid Annual Bonus for prior calendar years,
         accrued but unpaid vacation pay, unreimbursed expenses incurred
         pursuant to Section 5(a), (b) or (e) and any other benefits owed to
         Executive pursuant to any written employee benefit plan or policy of
         the Company; and (iii) the portion of the Restricted Stock Grant that
         is free from restrictions as of the

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<PAGE>

         termination date. All Stock Options, to the extent not theretofore
         exercised, shall terminate on the date of termination of employment
         under this Section 7(d). Executive shall also forfeit any right to an
         Annual Bonus for the calendar year in which Executive's termination
         occurs.

                  (e) Effect of Termination by the Company Without Cause or by
         Executive for Good Reason. Upon the termination of Executive's
         employment hereunder by the Company Without Cause or by Executive for
         Good Reason, Executive shall be entitled to: (i) the payment of two (2)
         times Executive's Base Salary for the year in which such termination
         shall occur; (ii) payment of two (2) times Executive's Annual Bonus for
         the preceding year, (iii) any unpaid portion of any Annual Bonus for
         prior calendar years, accrued and unpaid vacation pay, unreimbursed
         expenses incurred pursuant to Section 5(a), (b),or (e) and any other
         benefits owed to Executive pursuant to any written employee benefit
         plan or policy of the Company; (iv) the portion of the Restricted Stock
         Grant that is free from restrictions as of the date of termination and
         the acceleration and immediate release of all restrictions from up to
         8,000 shares of the Restricted Stock Grant that are subject to
         restrictions as of the date of termination and immediate release of all
         restrictions from a pro-rata portion of the units of restricted stock
         grants under the Company's Performance Accelerated Restricted Stock
         Unit Program ("PARSUP") that are subject to restrictions as of the date
         of termination (for purposes of this clause, the number of PARSUP units
         that shall vest early shall be an amount equal to the number of
         unvested PARSUP units on the date of termination multiplied by a
         fraction, the numerator of which is total number of months (including
         any fractional month) during which Executive was employed hereunder
         commencing with February 2003 (up to 60), and the denominator of which
         is 60); and (v) the vested portion of Executive's Stock Options, and
         the acceleration and immediate vesting of Executive's unvested Stock
         Options that were scheduled to vest during the two-year period
         following the date of Executive's termination. Executive shall have two
         (2) years from the date of such termination Without Cause or by
         Executive for Good Reason to exercise all vested Stock Options.

         8. CHANGE OF CONTROL.

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

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

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

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<PAGE>

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

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

                  (b) Effect of Change of Control. In the event that within one
         (1) year following a Change of Control, the Company terminates
         Executive Without Cause or Executive terminates employment for Good
         Reason, Executive shall be entitled to: (i) the payment of three (3)
         times Executive's Base Salary for the year in which such termination
         shall occur; (ii) the payment of three (3) times Executive's Annual
         Bonus for the preceding year; (iii) any unpaid portion of any Annual
         Bonus for prior calendar years, accrued and unpaid vacation pay,
         unreimbursed expenses incurred pursuant to Section 5(a), (b),or (e) and
         any other benefits owed to Executive pursuant to any written employee
         benefit plan or policy of the Company; (iv) the portion of the
         Restricted Stock Grant that is free from restrictions as of the date of
         termination and the acceleration and immediate release of all
         restrictions from all Restricted Stock Grants that are subject to
         restrictions as of the date of termination; and (v) the vested portion
         of Executive's Stock Options and the acceleration and immediate vesting
         of any unvested portion of Executive's Stock Options. Executive shall
         have two (2) years from the date of such termination to exercise all
         vested Stock Options.

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

                  (a) Determination of Parachute Payments. Any payments or
         benefits received or to be received by Executive in connection with a
         Change in Control of the Company or his termination of employment other
         than by the Company for Cause or by Executive Without Good Reason shall
         be treated as "parachute payments" within the meaning of Section
         280G(b)(2) of the Code, and all "excess parachute payments" within the
         meaning of Section 280G(b)(1) shall be treated as subject to the Excise
         Tax, unless in the opinion of tax counsel selected by the Company's
         independent auditors and acceptable to Executive such other payments or
         benefits (in whole or in part) do not constitute parachute payments, or
         such excess parachute payments (in whole or in part) represent
         reasonable compensation for

                                       7
<PAGE>

         services actually rendered within the meaning of Section 280G(b)(3) of
         the Code, or are otherwise not subject to the Excise Tax; and

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

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

         10. EXECUTIVE COVENANTS.

                  (a) General. Executive and the Company understand and agree
         that the purpose of the provisions of this Section 10 is to protect
         legitimate business interests of the Company, as more fully described
         below, and is not intended to impair or infringe upon Executive's right
         to work, earn a living, or acquire and possess property from the fruits
         of his labor. Executive hereby acknowledges that the post-employment
         restrictions set forth in this Section 10 are reasonable and that they
         do not, and will not, unduly impair his ability to earn a living after
         the termination of his employment with the Company. Therefore, subject
         to the limitations of reasonableness imposed by law upon restrictions
         set forth herein, Executive shall be subject to the restrictions set
         forth in this Section 10.

                  (b) Definitions. The following capitalized terms used in this
         Section 10 shall have the meanings assigned to them below, which
         definitions shall apply to both the singular and the plural forms of
         such terms: "Confidential Information" means any confidential or
         proprietary information possessed by the Company without limitation,
         any confidential "know-how," customer lists, details of client and
         consultant contracts, current and anticipated customer requirements,
         pricing policies, price lists, market studies, business plans,
         operational methods, marketing plans or strategies, product development
         techniques or plans,

                                       8
<PAGE>

         computer software programs (including object code and source code),
         data and documentation, data base technologies, systems, structures and
         architectures, inventions and ideas, past, current and planned research
         and development, compilations, devices, methods, techniques, processes,
         financial information and data, business acquisition plans, new
         personnel acquisition plans and any other information that would
         constitute a trade secret under the common law or statutory law of the
         State of Tennessee.

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

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

                           "Restricted Period" means the period of Executive's
                  employment by the Company plus a period extending two (2)
                  years from the date of termination of employment; provided,
                  however, the Restricted Period shall be extended for a period
                  equal to the time during which Executive is in breach of his
                  obligations to the Company under this Section 10.

                           "Restrictive Covenants" means the restrictive
                  covenants contained in Section 10(c) hereof:

                  (c) Restrictive Covenants.

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

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

                           (iii) Non-interference with Company Opportunities.
                  Executive understands and agrees that all business
                  opportunities with which he is involved

                                       9
<PAGE>

                  during his employment with the Company constitute valuable
                  assets of the Company and its affiliated entities, and may not
                  be converted to Executive's own use or converted by Executive
                  for the use of any other Person. Accordingly, Executive hereby
                  agrees that during the Restricted Period or thereafter,
                  Executive shall not directly or indirectly on Executive's own
                  behalf or on behalf of any Person, interfere with, solicit,
                  pursue, or in any way make use of any such business
                  opportunities.

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

                  (e) Enforcement of the Restrictive Covenants.

                           (i) Rights and Remedies upon Breach. In the event
         Executive breaches, or threatens to commit a breach of, any of the
         provisions of the Restrictive Covenants, the Company shall have the
         right and remedy to enjoin, preliminarily and permanently, Executive
         from violating or threatening to violate the Restrictive Covenants and
         to have the Restrictive Covenants specifically enforced by any court of
         competent jurisdiction, it being agreed that any breach or threatened
         breach of the Restrictive Covenants would cause irreparable injury to
         the Company and that money damages would not provide an adequate remedy
         to the Company. The rights referred to herein shall be independent of
         any others and severally enforceable, and shall be in addition to, and
         not in lieu of, any other rights and remedies available to the Company
         at law or in equity.

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

                                       10
<PAGE>

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

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

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

         14. NOTICES. Any and all notices or other communications required or
permitted to be given under any of the provisions of this Agreement shall be in
writing and shall be deemed to have been duly given when personally delivered or
mailed by first class registered mail, return receipt requested, or by
commercial courier or delivery service, or by facsimile or electronic mail,
addressed to the parties at the addresses set forth below (or at such other
address as any party may specify by notice to all other parties given as
aforesaid):

                                       11
<PAGE>

                  (a)      if to the Company, to:

                           Gaylord Entertainment Company
                           One Gaylord Drive
                           Nashville, Tennessee 37214
                           Attention:  President
                           Facsimile Number: (615) 316-6010

                  (b)      if to Executive, to:

                           David C. Kloeppel
                           c/o Gaylord Entertainment Company
                           One Gaylord Drive
                           Nashville, TN 37214

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

         15. MISCELLANEOUS.

                  (a) Entire Agreement. This Agreement constitutes the entire
         agreement of the parties with respect to the subject matter hereof and
         supercedes and replaces in its entirety Executive's September 4, 2001
         employment agreement with the Company. This Agreement may not be
         modified, amended, or terminated except by a written agreement signed
         by all of the parties hereto. Nothing contained in this Agreement shall
         be construed to impose any obligation on the Company to renew this
         Agreement and neither the continuation of employment nor any other
         conduct shall be deemed to imply a continuing obligation upon the
         expiration of this Agreement.

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

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

                  (d) Enforceability. Subject to the terms of Section 12(e)
         hereof, if any provision of this Agreement shall be held invalid or
         unenforceable, such invalidity or unenforceability shall attach only to
         such provision and shall not in any manner affect or render invalid or
         unenforceable any other severable provision of this Agreement, and this
         Agreement shall be carried out as if any such invalid or unenforceable
         provision were not contained herein, unless the invalidity or
         unenforceability of such provision substantially impairs the benefits
         of the remaining portions of this Agreement.

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

                                       12
<PAGE>

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

                  (g) Confidentiality of Agreement. The parties agree that the
         terms of this Agreement as they relate to compensation, benefits, and
         termination shall, unless otherwise required by law (including, in the
         Company's reasonable judgment, as required by federal and state
         securities laws), be kept confidential; provided, however, that any
         party hereto shall be permitted to disclose this Agreement or the terms
         hereof with any of its legal, accounting, or financial advisors
         provided that such party ensures that the recipient shall comply with
         the provisions of this Section 17(g).

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

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

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

                                       13
<PAGE>

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

                                       GAYLORD ENTERTAINMENT COMPANY

                                       By: /s/ Colin V. Reed
                                           -------------------------------------
                                           Colin V. Reed
                                           President and Chief Executive Officer

                                       EXECUTIVE:

                                                /s/ David C. Kloeppel
                                       -----------------------------------------
                                                   David C. Kloeppel

                                       14

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