Document:

QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.17    
    

Execution Version  

EMPLOYMENT AGREEMENT

(W. Kent Taylor)  

        THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of December 26, 2007 by and between TEXAS
ROADHOUSE, INC., a Delaware corporation (the "Company"), and W. KENT TAYLOR, a resident of the Commonwealth of Kentucky
("Executive"). 

RECITALS  

        A.    The
Executive is currently the Chairman of the Company. 

        B.    The
Company desires to continue the employment of Executive, and Executive wishes such employment, as Chairman of the Company, to be governed by the terms and conditions
set forth in this Agreement. 

AGREEMENT  

        NOW, THEREFORE, in consideration of the foregoing premises and the respective agreements of the Company and Executive set forth below, the Company and Executive,
intending to be legally bound, agree as follows: 

        1.    Effective Date.    The terms and conditions of Executive's employment hereunder shall become effective as of
December 26, 2007 (the "Effective Date"). 

        2.    Employment.    Subject to all the terms and conditions of this Agreement, Executive's period of employment under
this Agreement shall be the period commencing on the Effective Date and ending on January 7, 2011, (the "Third Anniversary Date"), which term,
unless otherwise agreed to by the parties, shall be extended on the Third Anniversary Date and on each anniversary of that date thereafter, for a period of one year thereafter (which term together
with any such extensions, if any, shall be hereinafter defined as the "Term"), unless the Executive's employment terminates earlier in accordance with
Section 9 hereof. Thereafter, if Executive continues in the employ of the Company, the employment relationship shall continue to be at will, terminable by either Executive or the Company at any
time and for any reason, with or without cause, and subject to such terms and conditions established by the Company from time to time. 

        3.    Position and Duties.    

        (a)    Employment with the Company.    While Executive is employed by the Company during the Term, Executive shall be
employed as Chairman of the Company, and such other titles as the Company may designate, and shall perform such duties and responsibilities as the Company shall assign to him from time to time,
including duties and responsibilities relating to the Company's wholly-owned and partially owned subsidiaries and other affiliates. 

        (b)    Performance of Duties and Responsibilities.    Executive shall serve the Company faithfully and to the best of
his ability and shall devote his full working time, attention and efforts to the business of the Company during his employment with the Company hereunder. While Executive is employed by the Company
during the Term, Executive shall report to the Board of Directors of the Company (the "Board"). Executive hereby represents and confirms that he is
under no contractual or legal commitments that would prevent him from fulfilling his duties and responsibilities as set forth in this Agreement. During his employment with the Company, Executive shall
not accept other employment or engage in other material business activity, except as approved in writing by the Board. Executive may participate in charitable activities and personal investment
activities to a reasonable extent, and he may serve as a director of business organizations as approved by the Board, so long as such activities and directorships do not interfere with the performance
of his duties and responsibilities hereunder. 

 

        4.    Compensation.    

        (a)    Base Salary.    While Executive is employed by the Company during the Term, the Company shall pay to Executive
a base salary at the rate of Three Hundred Thousand and no/100 Dollars ($300,000.00) per fiscal year, less deductions and withholdings, which base salary shall be paid in accordance with the Company's
normal payroll policies and procedures. If the Executive's employment is extended beyond the Third Anniversary Date as provided in Section 2, then on or after the Third Anniversary Date, and
annually thereafter, the Executive's base salary may be reviewed by the Compensation Committee of the Board to determine whether it should be increased. 

        (b)    Incentive Bonus.    Commencing with the first full fiscal quarter of the Company's 2008 fiscal year and for
each full fiscal quarter thereafter that Executive is employed by the Company during the Term, Executive shall be eligible for an annual incentive bonus, to be paid on a quarterly basis, based upon
achievement of defined goals established by the Compensation Committee of the Board and in accordance with the terms of any incentive plan of the Company in effect from time to time (the
"Incentive Bonus"). 

          (i)  The
level of achievement of the objectives each fiscal quarter and the amount payable as Incentive Bonus shall be determined in good faith by the Compensation
Committee. Any Incentive Bonus earned for a fiscal quarter shall be paid to Executive on or before the 90th day following the last day of such fiscal quarter. 

         (ii)  Subject
to the achievement of the goals established by the Compensation Committee, as determined by the Compensation Committee, in fiscal year 2008, 2009, and 2010,
Executive shall be eligible for an annual target incentive bonus of $200,000. If the Executive's employment is extended beyond the Third Anniversary Date as provided in Section 2, then on or
after the Third Anniversary Date, and annually thereafter, the Executive's annual target incentive bonus may be reviewed by the Compensation Committee of the Board to determine whether it should be
increased. 

        (c)    Benefits.    While Executive is employed by the Company during the Term, Executive shall be entitled to
participate in all employee benefit plans and programs of the Company that are available to executive officers generally to the extent that Executive meets the eligibility requirements for each
individual plan or program. The Company provides no assurance as to the adoption or continuance of any particular employee benefit plan or program, and Executive's participation in any such plan or
program shall be subject to the provisions, rules and regulations applicable thereto. 

        (d)    Expenses.    While Executive is employed by the Company during the Term, the Company shall reimburse Executive
for all reasonable and necessary out-of-pocket business, travel and entertainment expenses incurred by him in the performance of his duties and responsibilities hereunder,
subject to the Company's normal policies and procedures for expense verification and documentation. 

        5.    Affiliated Entities.    As used in this Agreement, "Company"
shall include the Company and each corporation, limited liability company, partnership, or other entity that is controlled by the Company, or is under common control with the Company (in each case
"control" meaning the direct or indirect ownership of 50% or more of all outstanding equity interests), provided,
however, that the Executive's title need not be identical for each of the affiliated entities nor the same as that for the Company. 

2

 

        6.    Confidential Information.    Except as required in the performance of Executive's duties as an employee of the
Company or as authorized in writing by the Board, Executive shall not, either during Executive's employment with the Company or at any time thereafter, use, disclose or make accessible to any person
any confidential information for any purpose. "Confidential Information" means information proprietary to the Company or its suppliers or prospective
suppliers and not generally known (including trade secret information) about the Company's suppliers, products, services, personnel, customers, recipes, pricing, sales strategies, technology, computer
software code, methods, processes, designs, research, development systems, techniques, finances, accounting, purchasing, and plans. All information disclosed to Executive or to which Executive obtains
access, whether originated by Executive or by others, during the period of Executive's employment by the Company (whether before, during, or after the Term), shall be presumed to be Confidential
Information if it is treated by the Company as being Confidential Information or if Executive has a reasonable basis to believe it to be Confidential Information. Executive acknowledges that the
above-described knowledge and information constitutes a unique and valuable asset of the Company and represents a substantial investment of time and expense by the Company, and that any disclosure or
other use of such knowledge or information other than for the sole benefit of the Company would be wrongful and would cause irreparable harm to the Company. During Executive's employment with the
Company, Executive shall refrain from committing any acts that would materially reduce the value of such knowledge or information to the Company. The foregoing obligations of confidentiality shall not
apply to any knowledge or information that (i) is now or subsequently becomes generally publicly known, or (ii) is required to be disclosed by law or legal process, other than as a
direct or indirect result of the breach of this Agreement by Executive. Executive acknowledges that the obligations imposed by this Section 6 are in addition to, and not in place of, any
obligations imposed by applicable statutory or common law. 

        7.    Noncompetition Covenant.    

        (a)    Agreement Not to Compete.    During Executive's employment with the Company (whether before, during, or after
the Term) and during the Restricted Period (as defined below), Executive shall not, directly or indirectly, on his own behalf or on behalf of any person or entity other than the Company, including
without limitation as a proprietor, principal, agent, partner, officer, director, stockholder, employee, member of any association, consultant or otherwise, engage in any business that is directly
competitive with the business of the Company, including without limitation any business that operates one or more full-service, casual dining steakhouse restaurants, within the 50 United
States or any foreign country in which the Company is operating or in which the Executive knows the Company contemplates commencing operations during the Restricted Period. The provisions of this
Section 7(a) shall also apply to any business which is directly competitive with any other business which the Company acquires or develops during Executive's employment with the Company. 

        (b)    Agreement Not to Hire.    Except as required in the performance of Executive's duties as an employee of the
Company, during Executive's employment with the Company (whether before, during, or after the Term) and during the Restricted Period, Executive shall not, directly or indirectly, hire, engage or
solicit or induce or attempt to induce to cease working for the Company, any person who is then an employee of the Company or who was an employee of the Company during the six (6) month period
immediately preceding Executive's termination of employment with the Company. 

        (c)    Agreement Not to Solicit.    Except as required in the performance of Executive's duties as an employee of the
Company, during Executive's employment with the Company (whether before, during, or after the Term) and during the Restricted Period, Executive shall not, directly or indirectly, solicit, request,
advise, induce or attempt to induce any vendor, supplier or other business contact of the Company to cancel, curtail, cease doing business with, or otherwise adversely change its relationship with the
Company. 

3

 

        (d)    Restricted Period.    "Restricted Period" hereunder means the
period commencing on the last day of Executive's employment with the Company and ending on the date that is two years following the last day of the Term. 

          (i)  In
the event the Executive's employment is terminated by the Company without Cause following a Change in Control as defined in this Agreement, and before the end of the
Term of this Agreement the Restricted Period will begin on the last day of the Executive's employment with the Company and end on the date the last payment of the current base salary is made to the
Executive pursuant to paragraph 10(c). 

        (e)    Acknowledgment.    Executive hereby acknowledges that the provisions of this Section 7 are reasonable
and necessary to protect the legitimate interests of the Company and that any violation of this Section 7 by Executive shall cause substantial and irreparable harm to the Company to such an
extent that monetary damages alone would be an inadequate remedy therefor. Therefore, in the event that Executive violates any provision of this Section 7, the Company shall be entitled to an
injunction, in addition to all the other remedies it may have, restraining Executive from violating or continuing to violate such provision. 

        (f)    Blue Pencil Doctrine.    If the duration of, the scope of or any business activity covered by any provision of
this Section 7 is in excess of what is determined to be valid and enforceable under applicable law, such provision shall be construed to cover only that duration, scope or activity that is
determined to be valid and enforceable. Executive hereby acknowledges that this Section 7 shall be given the construction that renders its provisions valid and enforceable to the maximum
extent, not exceeding its express terms, possible under applicable law. 

        (g)    Permitted Equity Ownership.    Ownership by Executive, as a passive investment, of less than 2.5% of the
outstanding shares of capital stock of any corporation listed on a national securities exchange or publicly traded in the over-the-counter market shall not constitute a breach
of this Section 7. 

        8.    Intellectual Property.    

        (a)    Disclosure and Assignment.    As of the Effective Date, Executive hereby transfers and assigns to the Company
(or its designee) all right, title, and interest of Executive in and to every idea, concept, invention, and improvement (whether patented, patentable or not) conceived or reduced to practice by
Executive whether solely or in collaboration with others while he is employed by the Company, and all copyrighted or copyrightable matter created by Executive whether solely or in collaboration with
others while he is employed by the Company that relates to the Company's business (collectively, "Creations"). Executive shall communicate promptly and
disclose to the Company, in such form as the Company may request, all information, details, and data pertaining to each Creation. Every copyrightable Creation, regardless of whether copyright
protection is sought or preserved by the Company, shall be a "work made for hire" as defined in 17 U.S.C. § 101, and the Company shall own all rights in and to such matter
throughout the world, without the payment of any royalty or other consideration to Executive or anyone claiming through Executive. 

        (b)    Trademarks.    All right, title, and interest in and to any and all trademarks, trade names, service marks, and
logos adopted, used, or considered for use by the Company during Executive's employment (whether or not developed by Executive) to identify the Company's business or other goods or services
(collectively, the "Marks"), together with the goodwill appurtenant thereto, and all other materials, ideas, or other property conceived, created,
developed, adopted, or improved by Executive solely or jointly during Executive's employment by the Company and relating to its business shall be owned exclusively by the Company. Executive shall not
have, and will not claim to have, any right, title, or interest of any kind in or to the Marks or such other property. 

4

 

        (c)    Documentation.    Executive shall execute and deliver to the Company such formal transfers and assignments and
such other documents as the Company may request to permit the Company (or its designee) to file and prosecute such registration applications and other documents it deems useful to protect or enforce
its rights hereunder. Any idea, invention, copyrightable matter, or other property relating to the Company's business and disclosed by Executive prior to the first anniversary of the effective date of
Executive's termination of employment shall be deemed to be governed by the terms of this Section 8 unless proven by Executive to have been first conceived and made after such termination date. 

        (d)    Non-Applicability.    Executive is hereby notified that this Section 8 does not apply to any
invention for which no equipment, supplies, facility, Confidential Information, or other trade secret information of the Company was used and which was developed entirely on Executive's own time,
unless (i) the invention relates (A) directly to the business of the Company or (B) to the Company's actual or demonstrably anticipated research or development, or (ii) the
invention results from any work performed by Executive for the Company. 

        9.    Termination of Employment.    

        (a)
Executive's employment with the Company shall terminate immediately upon: 

	(i)
	Executive's
receipt of written notice from the Company of the termination of his employment;

	(ii)
	the
Company's receipt of Executive's written or oral resignation from the Company;

	(iii)
	Executive's
Disability (as defined below); or

	(iv)
	Executive's
death. 

        (b)
The date upon which Executive's termination of employment with the Company occurs shall be the "Termination Date." 

        10.    Payments upon Termination of Employment.    

        (a)
If Executive's employment with the Company is terminated by reason of: 

	(i)
	Executive's
abandonment of his employment or Executive's resignation for any reason (whether or not such resignation is set forth in writing or otherwise communicated to
the Company);

	(ii)
	termination
of Executive's employment by the Company for Cause (as defined below); or

	(iii)
	termination
of Executive's employment by the Company without Cause following expiration of the Term; 

the
Company shall pay to Executive his then-current base salary through the Termination Date. 

        (b)
Except in the case of a Change in Control, which is governed by Section 10(c) below, if Executive's employment with the Company is terminated by the Company pursuant to
Section 9(a)(i) effective prior to the expiration of the Term for any reason other than for Cause (as defined below), then the Company shall pay to Executive, subject to Section 10(h) of
this Agreement: 

	(i)
	his
then-current base salary through the Termination Date;

	(ii)
	any
earned and unpaid annual Incentive Bonus for the fiscal quarter immediately preceding the fiscal quarter in which the Termination Date occurs; and

	(iii)
	a
crisp $100 bill from the Board. 

5

 

Any
amount payable to Executive pursuant to Section 10(b)(ii) shall be paid to Executive by the Company in the same manner and at the same time that Incentive Bonus payments are made to current
employees of the Company, but no earlier than the first normal payroll date of the Company following the expiration of all applicable rescission periods provided by law. 

        (c)
If Executive's employment is terminated by the Company without Cause following a Change in Control as defined in this Agreement and before the end of the Term of this Agreement, or
if the Executive's employment is terminated by the Executive for Good Reason following a Change in Control and before the end of the Term, then the Company shall pay to Executive, subject to
Executive's execution of a full release of claims in the manner set forth in Section 10(h) of this Agreement, his then current base salary and incentive bonus through the end of Term of the
Agreement, his then current base salary and incentive bonus through the end of Term of the Agreement, but in no event will the Company pay the Executive less than one year of his current base salary
and incentive bonus. 

        (i)
A "Change of Control" shall mean that one of the following events has taken place at any time during the Term: 

        (A)
The stockholders of the Company approve one of the following: 

        (I)
Any merger or statutory plan of exchange involving the Company ("Merger") in which the Company is not the continuing or surviving
corporation or pursuant to which the Common Stock, $0.001 par value ("Common Stock") would be converted into cash, securities or other property, other
than a Merger involving the Company in which the holders of Common Stock immediately prior to the Merger have substantially the same proportionate ownership of common stock of the surviving
corporation after the Merger; or 

        (II)
Any sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company or the adoption of any
plan or proposal for the liquidation or dissolution; 

        (B)
During any period of 12 months or less, individuals who at the beginning of such period constituted a majority of the Board of Directors cease for any reason to constitute a
majority thereof unless the nomination or election of such new directors was approved by a vote of at least
two-thirds of the directors then still in office who were directors at the beginning of such period; 

        (C)
A tender or exchange offer, other than one made by: 

        (I)
the Company, or by 

        (II)
W. Kent Taylor or any corporation, limited liability company, partnership, or other entity in which W. Kent Taylor (x) owns a direct or indirect ownership of 50% or more or
(y) controls 50% or more of the voting power (collectively, the "Taylor Parties") 

is
made for the Common Stock (or securities convertible into Common Stock) and such offer results in a portion of those securities being purchased and the offeror after the consummation of the offer
is the beneficial owner (as determined pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")),
directly or indirectly, of securities representing in excess of the greater of (a) at least 20 percent of the voting power of outstanding securities of the Company or (b) the
percentage of the voting power of the outstanding securities of the Company collectively held by the Taylor Parties; or 

6

 

        (D)
Any person other than a Taylor Party becomes the beneficial owner of securities representing in excess of the greater of (i) 20 percent of the aggregate voting power of
the outstanding securities of the Company as disclosed in a report on Schedule 13D of the Exchange Act or (ii) the percentage of the voting power of the outstanding securities of the
Company collectively held by all of the Taylor Parties. 

        Notwithstanding
anything in the foregoing to the contrary, no Change of Control shall be deemed to have occurred for purposes of this Agreement by virtue of any transaction which results
in Executive, or a group of persons which includes Executive, acquiring, directly or indirectly, securities representing 20 percent or more of the voting power of outstanding securities of the
Company. 

	(ii)
	A
termination by Executive for "Good Reason" shall mean a termination based on: 

        (A)
the assignment to Executive of a different title or job responsibilities that result in a substantial decrease in the level of responsibility from those in effect immediately prior
to the Change of Control; 

        (B)
a reduction by the Company or the surviving company in Executive's base pay as in effect immediately prior to the Change of Control; 

        (C)
a significant reduction by the Company or the surviving company in total benefits available to Executive under cash incentive, stock incentive and other employee benefit plans after
the Change of Control compared to the total package of such benefits as in effect prior to the Change of Control; 

        (D)
the requirement by the Company or the surviving company that Executive be based more than 50 miles from where Executive's office is located immediately prior to the Change of
Control, except for required travel on company business to an extent substantially consistent with the business travel obligations which Executive undertook on behalf of the Company prior to the
Change of Control; or 

        (E)
the failure by the Company to obtain from any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the business
and/or assets of the Company ("Successor") the assent to this Agreement contemplated by Section 13(g) hereof. 

        Notwithstanding
anything in the foregoing to the contrary, no Change of Control shall be deemed to have occurred for purposes of this Agreement by virtue of any transaction which results
in Executive, or a group of persons which includes Executive, acquiring, directly or indirectly, securities representing 20 percent or more of the voting power of outstanding securities of the
Company. 

        (d)
If Executive's employment with the Company is terminated effective prior to the expiration of the Term by reason of Executive's death or Disability, the Company shall pay to
Executive or his beneficiary or his estate, as the case may be, his then-current base salary through the Termination Date, any earned and unpaid quarterly Incentive Bonus for the fiscal
quarter preceding the fiscal quarter in which the Termination Date occurs and a pro-rated portion of any quarterly Incentive Bonus for the fiscal quarter in which the Termination Date
occurs, based on the number of days during such fiscal quarter that Executive was employed by the Company, payable in the same manner and at the same time that Incentive Bonus payments are made to
current employees of the Company. 

7

 

        (e)
"Cause" hereunder shall mean: 

	(i)
	an
act or acts of dishonesty undertaken by Executive and intended to result in substantial gain or personal enrichment of Executive at the expense of the Company;

	(ii)
	unlawful
conduct or gross misconduct that is willful and deliberate on Executive's part and that, in either event, is materially injurious to the Company;

	(iii)
	the
conviction of Executive of a felony;

	(iv)
	material
and deliberate failure of Executive to perform his duties and responsibilities hereunder or to satisfy his obligations as an officer or employee of the
Company, which failure has not been cured by Executive within ten days after written notice thereof to Executive from the Company; or

	(v)
	material
breach of any terms and conditions of this Agreement by Executive not caused by the Company, which breach has not been cured by Executive within ten days after
written notice thereof to Executive from the Company. 

        (f)
"Disability" hereunder shall mean the inability of Executive to perform on a full-time basis the duties and
responsibilities of his employment with the Company by reason of his illness or other physical or mental impairment or condition, if such inability continues for an uninterrupted period of
45 days or more during any 360-day period. A period of inability shall be "uninterrupted" unless and until Executive returns to full-time work for a continuous period of
at least 30 days. 

        (g)
In the event of termination of Executive's employment, the sole obligation of the Company hereunder shall be its obligation to make the payments called for by Sections 10(a),
10(b), or 10(c) hereof, as the case may be, and the Company shall have no other obligation to Executive or to his beneficiary or his estate, except as otherwise provided by law. 

        (h)
Notwithstanding any other provision hereof, the Company shall not be obligated to make any payments under Section 10(b)(ii) or (iii) or Section 10(c) of this
Agreement unless Executive has signed a full release of claims against the Company, in a form and scope to be prescribed by the Board, all applicable consideration periods and rescission periods
provided by law shall have expired, and Executive is in strict compliance with the terms of this Agreement as of the dates of the payments. 

        11.    Return of Property.    Upon termination of Executive's employment with the Company, Executive shall deliver
promptly to the Company all records, files, manuals, books, forms, documents, letters, memoranda, data, customer lists, tables, photographs, video tapes, audio tapes, computer disks and other computer
storage media, and copies thereof, that are the property of the Company, or that relate in any way to the business, products, services, personnel, customers, prospective customers, suppliers,
practices, or techniques of the Company, and all other property of the Company (such as, for example, computers, cellular telephones, pagers, credit cards, and keys), whether or not containing
Confidential Information, that are in Executive's possession or under Executive's control. 

        12.    Remedies.    Executive acknowledges that it would be difficult to fully compensate the Company for monetary
damages resulting from any breach by him of the provisions of Sections 6, 7, 8 and 11 hereof. Accordingly, in the event of any actual or threatened breach of any such provisions, the Company
shall, in addition to any other remedies it may have, be entitled to injunctive and other equitable relief to enforce such provisions, and such relief may be granted without the necessity of proving
actual monetary damages. 

8

 

        13.    Miscellaneous.    

        (a)    Governing Law.    This Agreement shall be governed by, subject to, and construed in accordance with the laws of
the Commonwealth of Kentucky without regard to conflict of law principles. Any action relating to this Agreement shall only be brought in a court of competent jurisdiction in the Commonwealth of
Kentucky, and the parties consent to the jurisdiction, venue and convenience of such courts. 

        (b)    Jurisdiction and Law.    Executive and the Company consent to jurisdiction of the courts of the Commonwealth of
Kentucky and/or the federal district courts, Western District of Kentucky, for the purpose of resolving all issues of law, equity, or fact, arising out of or in connection with this Agreement. Any
action involving claims of a breach of this Agreement shall be brought in such courts. Each party consents to personal jurisdiction over such party in the state and/or federal courts of Kentucky and
hereby waives any defense of lack of personal jurisdiction or forum non conveniens. Venue, for the purpose of all such suits, shall be in Jefferson
County, Commonwealth of Kentucky. 

        (c)    Entire Agreement.    Except for any written stock option agreement and related agreements between Executive and
the Company, this Agreement contains the entire agreement of the parties relating to Executive's employment with the Company and supersedes all prior agreements and understandings with respect to such
subject matter, and the parties hereto have made no agreements, representations or warranties relating to the subject matter of this Agreement that are not set forth herein. 

        (d)    No Violation of Other Agreements.    Executive hereby represents and agrees that neither (i) Executive's
entering into this Agreement, (ii) Executive's employment with the Company, nor (iii) Executive's carrying out the provisions of this Agreement, will violate any other agreement (oral,
written or other) to which Executive is a party or by which Executive is bound. 

        (e)    Amendments.    No amendment or modification of this Agreement shall be deemed effective unless made in writing
and signed by the parties hereto. 

        (f)    No Waiver.    No term or condition of this Agreement shall be deemed to have been waived, except by a statement
in writing signed by the party against whom enforcement of the waiver is sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived. 

        (g)    Assignment.    This Agreement shall not be assignable, in whole or in part, by either party without the prior
written consent of the other party, except that the Company may, without the consent of Executive, assign its rights and obligations under this Agreement (i) to any entity with which the
Company may merge or consolidate, or (ii) to any corporation or other person or business entity to which the Company may sell or transfer all or substantially all of its assets. Upon
Executive's written request, the Company will seek to have any Successor by agreement assent to the fulfillment by the Company of its obligations under this Agreement. After any such assignment by the
Company, the Company shall be discharged from all further liability hereunder and such assignee shall thereafter be deemed to be the "Company" for purposes of all terms and conditions of this
Agreement, including this Section 13. 

        (h)    Counterparts.    This Agreement may be executed in any number of counterparts, and such counterparts executed
and delivered, each as an original, shall constitute but one and the same instrument. 

        (i)    Severability.    Subject to Section 7(f) hereof, to the extent that any portion of any provision of this
Agreement shall be invalid or unenforceable, it shall be considered deleted herefrom and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and
effect. 

9

 

        (j)    Survival.    The terms and conditions set forth in Sections 5, 6, 7, 8, 9, 11, 12, and 13 of this
Agreement, and any other provision that continues by its terms, shall survive expiration of the Term or termination of Executive's employment for any reason. 

        (k)    Captions and Headings.    The captions and paragraph headings used in this Agreement are for convenience of
reference only and shall not affect the construction or interpretation of this Agreement or any of the provisions hereof. 

        (l)    Notices.    Any notice required or permitted to be given under this Agreement shall be sufficient if in writing
and either delivered in person or sent by first class certified or registered mail, postage prepaid, if to the Company, at the Company's principal place of business, and if to Executive, at his home
address most recently filed with the Company, or to such other address or addresses as either party shall have designated in writing to the other party hereto. 

*
* * * * 

[Remainder of this page intentionally left blank.]  

10

 

        IN WITNESS WHEREOF, Executive and the Company have executed this Agreement on this 14th day of January, 2008. 

	 	TEXAS ROADHOUSE, INC.
	

 	

By:	

/s/ Gerard J. Hart
 Gerard J. Hart, President, Chief Executive Officer
	

 	

W. KENT TAYLOR
	

 	

/s/ W. Kent Taylor

	

 	

 	

 

11

QuickLinks

Exhibit 10.17QuickLinks
 -- Click here to rapidly navigate through this document

 

 
 

Exhibit 10.18    
    

Execution Version  

EMPLOYMENT AGREEMENT

(Sheila C. Brown)  

        THIS EMPLOYMENT AGREEMENT (this "Agreement") is entered into as of December 26, 2007 by and between TEXAS
ROADHOUSE, INC., a Delaware corporation (the "Company"), and SHEILA C. BROWN, a resident of the Commonwealth of Kentucky
("Executive"). 

RECITALS  

        A.    Executive
is currently the General Counsel and Corporate Secretary of the Company. 

        B.    The
Company desires to continue the employment of Executive, and Executive wishes such employment, as General Counsel and Corporate Secretary of the Company, to be
governed by the terms and conditions set forth in this Agreement. 

AGREEMENT  

        NOW, THEREFORE, in consideration of the foregoing premises and the respective agreements of the Company and Executive set forth below, the Company and Executive,
intending to be legally bound, agree as follows: 

        1.    Effective Date.    The terms and conditions of Executive's employment hereunder shall become effective upon
December 26, 2007 (the "Effective Date"). 

        2.    Employment.    Subject to all the terms and conditions of this Agreement, Executive's period of employment under
this Agreement shall be the period commencing on the Effective Date and ending on January 7, 2011 (the "Third Anniversary Date"), which term,
unless otherwise agreed to by the parties, shall be extended on the Third Anniversary Date and on each anniversary of that date thereafter, for a period of one year thereafter (which term together
with any such extensions, if any, shall be hereinafter defined as the "Term"), unless the Executive's employment terminates earlier in accordance with
Section 9 hereof. Thereafter, if Executive continues in the employ of the Company, the employment relationship shall continue to be at will, terminable by either Executive or the Company at any
time and for any reason, with or without cause, and subject to such terms and conditions established by the Company from time to time. 

        3.    Position and Duties.    

        (a)    Employment with the Company.    While Executive is employed by the Company during the Term, Executive shall be
employed as the General Counsel and Corporate Secretary of the Company, and such other titles as the Company may designate, and shall perform such duties and responsibilities as the Company shall
assign to her from time to time, including duties and responsibilities relating to the Company's wholly-owned and partially owned subsidiaries and other affiliates. 

        (b)    Performance of Duties and Responsibilities.    Executive shall serve the Company faithfully and to the best of
her ability and shall devote her full working time, attention and efforts to the business of the Company during her employment with the Company hereunder. While Executive is employed by the Company
during the Term, Executive shall report to the Chief Executive Officer of the Company or to such other person as designated by the Board of Directors of the Company (the
"Board"). Executive hereby represents and confirms that she is under no contractual or legal commitments that would prevent her from fulfilling her
duties and responsibilities as set forth in this Agreement. During her employment with the Company, Executive shall not accept other employment or engage in other material business activity, except as
approved in writing by the Board. Executive may participate in charitable activities and personal investment activities to a reasonable extent, and she may serve as a director of business
organizations as approved by the Board, so long as such activities and directorships do not interfere with the performance of her duties and responsibilities hereunder. 

 

        4.    Compensation.    

        (a)    Base Salary.    While Executive is employed by the Company during the Term, the Company shall pay to Executive
a base salary at the rate of Two Hundred Twenty-five Thousand and no/100 Dollars ($225,000.00) per fiscal year, less deductions and withholdings, which base salary shall be paid in
accordance with the Company's normal payroll policies and procedures. If the Executive's employment is extended beyond the Third Anniversary Date as provided in Section 2, then on or after the
Third Anniversary Date, and annually thereafter, the Executive's base salary may be reviewed by the Compensation Committee of the Board to determine whether it should be increased. 

        (b)    Incentive Bonus.    Commencing with the first full fiscal quarter of the Company's 2008 fiscal year and for
each full fiscal quarter thereafter that Executive is employed by the Company during the Term, Executive shall be eligible for an annual incentive bonus, to be paid on a quarterly basis, based upon
achievement of defined goals established by the Compensation Committee of the Board and in accordance with the terms of any incentive plan of the Company in effect from time to time (the
"Incentive Bonus"). 

          (i)  The
level of achievement of the objectives each fiscal quarter and the amount payable as Incentive Bonus shall be determined in good faith by the Compensation
Committee. Any Incentive Bonus earned for a fiscal quarter shall be paid to Executive on or before the 90th day following the last day of such fiscal quarter. 

         (ii)  Subject
to the achievement of the goals established by the Compensation Committee, as determined by the Compensation Committee, in fiscal year 2008, Executive shall be
eligible for an annual target incentive bonus of $100,000. In fiscal year 2009, Executive shall be eligible for an annual target incentive bonus of $105,000. In fiscal year 2010, Executive shall be
eligible for annual target incentive bonus of $110,250. Executive's eligibility for the increased target incentive bonus amounts in fiscal years 2009 and 2010 shall be conditioned upon an appropriate
increase in the goals to be achieved each year, as determined by the Compensation Committee. If the Executive's employment is extended beyond the Third Anniversary Date as provided in
Section 2, then on or after the Third Anniversary Date, and annually thereafter, the Executive's annual target incentive bonus may be reviewed by the Compensation Committee of the Board to
determine whether it should be increased. 

        (c)    Restricted Stock Awards.    

          (i)  Pursuant
to Section 7 of the Texas Roadhouse, Inc. 2004 Equity Incentive Plan (the "Equity Incentive
Plan") in place on the Effective Date, on January 7, 2008 the Executive shall be granted a stock bonus award whereby the Executive has the conditional right to receive
upon vesting 75,000 shares of the Company's Class A common stock ("Restricted Stock Units"), provided this Agreement has been fully executed by
both the Executive and the Company. If it has not been fully executed by January 7, 2008, the Restricted Stock Units will be granted to the Executive on the date it is fully executed. 

         (ii)  The
Restricted Stock Units shall vest in four equal installments as follows provided the Executive continues to provide services to the Company, as provided in the
Equity Incentive Plan, on such dates: 

	Date
 
	 	Amount Vesting

	January 7, 2009	 	18,750 shares
	January 7, 2010	 	18,750 shares
	January 7, 2011	 	18,750 shares
	January 7, 2012	 	18,750 shares

2

 

        The
Restricted Stock Units award shall be evidenced by a separate stock bonus agreement as provided in Section 7(a) of the Equity Incentive Plan and shall incorporate by reference
or otherwise the substance of the terms and conditions of Section 7(a) of the Equity Incentive Plan. 

        (iii)  In
the event of a termination of Executive's Employment by the Company other than for Cause (as defined below) or in the event of termination by Executive for Good
Reason (as defined below) within 12 months following a Change of Control (as defined below), or prior to a Change of Control at the direction of a person who has entered into an agreement with
the Company, the consummation of which will constitute a Change of Control, and contingent upon Executive's execution of a full release of claims in the manner set forth in with Section 10(h),
the Restricted Stock Units and all other options or stock awards granted under any stock option and stock incentive plans of the Company that are outstanding as of the date of termination shall become
immediately vested, and in the case of stock options, shall immediately become exercisable in full and shall remain exercisable until the earlier of (A) two years after termination of
Executive's employment by the Company or (B) the option expiration date as set forth in the applicable option agreement. 

        (iv)  A
"Change of Control" shall mean that one of the following events has taken place at any time during the Term: 

        (A)  The
stockholders of the Company approve one of the following: 

         (I)  Any
merger or statutory plan of exchange involving the Company ("Merger") in which the Company is not the continuing or
surviving corporation or pursuant to which the Common Stock, $0.001 par value ("Common Stock") would be converted into cash, securities or other
property, other than a Merger involving the Company in which the holders of Common Stock immediately prior to the Merger have substantially the same proportionate ownership of common stock of the
surviving corporation after the Merger; or 

        (II)  Any
sale, lease, exchange, or other transfer (in one transaction or a series of related transactions) of all or substantially all of the assets of the Company or the
adoption of any plan or proposal for the liquidation or dissolution; 

        (B)  During
any period of 12 months or less, individuals who at the beginning of such period constituted a majority of the Board of Directors cease for any reason to
constitute a majority thereof unless the nomination or election of such new directors was approved by a vote of at least two-thirds of the directors then still in office who were directors
at the beginning of such period; 

        (C)  A
tender or exchange offer, other than one made by: 

        (I)   the
Company, or by 

        (II)  W.
Kent Taylor or any corporation, limited liability company, partnership, or other entity in which W. Kent Taylor (x) owns a direct or indirect ownership of 50%
or more or (y) controls 50% or more of the voting power (collectively, the "Taylor Parties") 

is
made for the Common Stock (or securities convertible into Common Stock) and such offer results in a portion of those securities being purchased and the offeror after the consummation of the offer
is the beneficial owner (as determined pursuant to Section 13(d) of the Securities Exchange Act of 1934, as amended (the "Exchange Act")),
directly or indirectly, of securities representing in excess of the greater of (a) at least 20 percent of the voting power of outstanding securities of the Company or (b) the
percentage of the voting power of the outstanding securities of the Company collectively held by all of the Taylor Parties; or 

3

 

        (D)  Any
person other than a Taylor Party becomes the beneficial owner of securities representing in excess of the greater of (i) 20 percent of the aggregate
voting power of the outstanding securities of the Company as disclosed in a report on Schedule 13D of the Exchange Act or (ii) the percentage of the voting power of the outstanding
securities of the Company collectively held by all of the Taylor Parties. 

        Notwithstanding
anything in the foregoing to the contrary, no Change of Control shall be deemed to have occurred for purposes of this Agreement by virtue of any transaction which results
in Executive, or a group of persons which includes Executive, acquiring, directly or indirectly, securities representing 20 percent or more of the voting power of outstanding securities of the
Company. 

         (v)  A
termination by Executive for "Good Reason" shall mean a termination based on: 

        (A)  the
assignment to Executive of a different title or job responsibilities that result in a substantial decrease in the level of responsibility from those in effect
immediately prior to the Change of Control; 

        (B)  a
reduction by the Company or the surviving company in Executive's base pay as in effect immediately prior to the Change of Control; 

        (C)  a
significant reduction by the Company or the surviving company in total benefits available to Executive under cash incentive, stock incentive and other employee benefit
plans after the Change of Control compared to the total package of such benefits as in effect prior to the Change of Control; 

        (D)  the
requirement by the Company or the surviving company that Executive be based more than 50 miles from where Executive's office is located immediately prior to the
Change of Control, except for required travel on company business to an extent substantially consistent with the business travel obligations which Executive undertook on behalf of the Company prior to
the Change of Control; or 

        (E)  the
failure by the Company to obtain from any successor (whether direct or indirect, by purchase, merger, consolidation or otherwise) to all or substantially all of the
business and/or assets of the Company ("Successor") the assent to this Agreement contemplated by Section 13(g) hereof. 

        (d)    Benefits.    While Executive is employed by the Company during the Term, Executive shall be entitled to
participate in all employee benefit plans and programs of the Company that are available to executive officers generally to the extent that Executive meets the eligibility requirements for each
individual plan or program. The Company provides no assurance as to the adoption or continuance of any particular employee benefit plan or program, and Executive's participation in any such plan or
program shall be subject to the provisions, rules and regulations applicable thereto. 

4

 

        (e)    Expenses.    While Executive is employed by the Company during the Term, the Company shall reimburse Executive
for all reasonable and necessary out-of-pocket business, travel and entertainment expenses incurred by her in the performance of her duties and responsibilities hereunder,
subject to the Company's normal policies and procedures for expense verification and documentation. 

        (f)    Vacations and Holidays.    Executive shall be entitled to be absent from her duties for the Company by reason
of vacation for a period of three weeks per calendar year, or such longer period as the Company allows based on employment tenure with the Company. Executive shall coordinate her vacation schedule
with the Company so as not to impose an undue burden on the Company. In addition, Executive shall be entitled to such national and religious holidays as the Company shall approve for all of its
employees from time to time. 

        5.    Affiliated Entities.    As used in this Agreement, "Company"
shall include the Company and each corporation, limited liability company, partnership, or other entity that is controlled by the Company, or is under common control with the Company (in each case
"control" meaning the direct or indirect ownership of 50% or more of all outstanding equity interests), provided, however, that the Executive's title
need not be identical for each of the affiliated entities nor the same as that for the Company. 

        6.    Confidential Information.    Except as required in the performance of Executive's duties as an employee of the
Company or as authorized in writing by the Board, Executive shall not, either during Executive's employment with the Company or at any time thereafter, use, disclose or make accessible to any person
any confidential information for any purpose. "Confidential Information" means information proprietary to the Company or its suppliers or prospective
suppliers and not generally known (including trade secret information) about the Company's suppliers, products, services, personnel, customers, recipes, pricing, sales strategies, technology, computer
software code, methods, processes, designs, research, development systems, techniques, finances, accounting, purchasing, and plans. All information disclosed to Executive or to which Executive obtains
access, whether originated by Executive or by others, during the period of Executive's employment by the Company (whether before, during, or after the Term), shall be presumed to be Confidential
Information if it is treated by the Company as being Confidential Information or if Executive has a reasonable basis to believe it to be Confidential Information. Executive acknowledges that the
above-described knowledge and information constitutes a unique and valuable asset of the Company and represents a substantial investment of time and expense by the Company, and that any disclosure or
other use of such knowledge or information other than for the sole benefit of the Company would be wrongful and would cause irreparable harm to the Company. During Executive's employment with the
Company, Executive shall refrain from committing any acts that would materially reduce the value of such knowledge or information to the Company. The foregoing obligations of confidentiality shall not
apply to any knowledge or information that (i) is now or subsequently becomes generally publicly known, or (ii) is required to be disclosed by law or legal process, other than as a
direct or indirect result of the breach of this Agreement by Executive. Executive acknowledges that the obligations imposed by this Section 6 are in addition to, and not in place of, any
obligations imposed by applicable statutory or common law. 

        7.    Noncompetition Covenant.    

        (a)    Agreement Not to Compete.    During Executive's employment with the Company (whether before, during, or after
the Term) and during the Restricted Period (as defined below), Executive shall not, directly or indirectly, on her own behalf or on behalf of any person or entity other than the Company, including
without limitation as a proprietor, principal, agent, partner, officer, director, stockholder, employee, member of any association, consultant or otherwise, engage in any business that is directly
competitive with the business of the Company, including without limitation any business that operates one or more full-service, casual dining steakhouse restaurants, within the 50 United
States or any foreign country in which the Company is operating or in which the Executive knows the Company contemplates commencing operations during the Restricted Period. The provisions of this
Section 7(a) shall also apply to any business which is directly competitive with any other business which the Company acquires or develops during Executive's employment with the Company. 

5

 

        (b)    Agreement Not to Hire.    Except as required in the performance of Executive's duties as an employee of the
Company, during Executive's employment with the Company (whether before, during, or after
the Term) and during the Restricted Period, Executive shall not, directly or indirectly, hire, engage or solicit or induce or attempt to induce to cease working for the Company, any person who is then
an employee of the Company or who was an employee of the Company during the six (6) month period immediately preceding Executive's termination of employment with the Company. 

        (c)    Agreement Not to Solicit.    Except as required in the performance of Executive's duties as an employee of the
Company, during Executive's employment with the Company (whether before, during, or after the Term) and during the Restricted Period, Executive shall not, directly or indirectly, solicit, request,
advise, induce or attempt to induce any vendor, supplier or other business contact of the Company to cancel, curtail, cease doing business with, or otherwise adversely change its relationship with the
Company. 

        (d)    Restricted Period.    "Restricted Period" hereunder means the
period commencing on the last day of Executive's employment with the Company and ending on the date that is two years following the last day of the Term. 

          (i)  In
the event the Executive's employment is terminated by the Company without Cause following a Change in Control as defined in this Agreement, and before the end of the
Term of this Agreement, the Restricted Period will begin on the last day of the Executive's employment with the Company and end on the date the last payment of the current base salary is made to the
Executive pursuant to paragraph 10(c). 

        (e)    Acknowledgment.    Executive hereby acknowledges that the provisions of this Section 7 are reasonable
and necessary to protect the legitimate interests of the Company and that any violation of this Section 7 by Executive shall cause substantial and irreparable harm to the Company to such an
extent that monetary damages alone would be an inadequate remedy therefor. Therefore, in the event that Executive violates any provision of this Section 7, the Company shall be entitled to an
injunction, in addition to all the other remedies it may have, restraining Executive from violating or continuing to violate such provision. 

        (f)    Blue Pencil Doctrine.    If the duration of, the scope of or any business activity covered by any provision of
this Section 7 is in excess of what is determined to be valid and enforceable under applicable law, such provision shall be construed to cover only that duration, scope or activity that is
determined to be valid and enforceable. Executive hereby acknowledges that this Section 7 shall be given the construction that renders its provisions valid and enforceable to the maximum
extent, not exceeding its express terms, possible under applicable law. 

        (g)    Permitted Equity Ownership.    Ownership by Executive, as a passive investment, of less than 2.5% of the
outstanding shares of capital stock of any corporation listed on a national securities exchange or publicly traded in the over-the-counter market shall not constitute a breach
of this Section 7. 

        8.    Intellectual Property.    

        (a)    Disclosure and Assignment.    As of the Effective Date, Executive hereby transfers and assigns to the Company
(or its designee) all right, title, and interest of Executive in and to every idea, concept, invention, and improvement (whether patented, patentable or not) conceived or reduced to practice by
Executive whether solely or in collaboration with others while she is employed by the Company, and all copyrighted or copyrightable matter created by Executive whether solely or in collaboration with
others while she is employed by the Company that relates to the Company's business (collectively, "Creations"). Executive shall communicate promptly and
disclose to the Company, in such form as the Company may request, all information, details, and data pertaining to each Creation. Every copyrightable Creation, regardless of whether copyright
protection is sought or preserved by the Company, shall be a "work made for hire" as defined in 17 U.S.C. § 101, and the Company shall own all rights in and to such matter
throughout the world, without the payment of any royalty or other consideration to Executive or anyone claiming through Executive. 

6

 

        (b)    Trademarks.    All right, title, and interest in and to any and all trademarks, trade names, service marks, and
logos adopted, used, or considered for use by the Company during Executive's employment (whether or not developed by Executive) to identify the Company's business or other goods or services
(collectively, the "Marks"), together with the goodwill appurtenant thereto, and all other materials, ideas, or other property conceived, created,
developed, adopted, or improved by Executive solely or jointly during Executive's employment by the Company and relating to its business shall be owned exclusively by the Company. Executive shall not
have, and will not claim to have, any right, title, or interest of any kind in or to the Marks or such other property. 

        (c)    Documentation.    Executive shall execute and deliver to the Company such formal transfers and assignments and
such other documents as the Company may request to permit the Company (or its designee) to file and prosecute such registration applications and other documents it deems useful to protect or enforce
its rights hereunder. Any idea, invention, copyrightable matter, or other property relating to the Company's business and disclosed by Executive prior to the first anniversary of the effective date of
Executive's termination of employment shall be deemed to be governed by the terms of this Section 8 unless proven by Executive to have been first conceived and made after such termination date. 

        (d)    Non-Applicability.    Executive is hereby notified that this Section 8 does not apply to any
invention for which no equipment, supplies, facility, Confidential Information, or other trade secret information of the Company was used and which was developed entirely on Executive's own time,
unless (i) the invention relates (A) directly to the business of the Company or (B) to the Company's
actual or demonstrably anticipated research or development, or (ii) the invention results from any work performed by Executive for the Company. 

        9.    Termination of Employment.    

        (a)   Executive's
employment with the Company shall terminate immediately upon: 

	(i)
	Executive's
receipt of written notice from the Company of the termination of her employment;

	(ii)
	the
Company's receipt of Executive's written or oral resignation from the Company;

	(iii)
	Executive's
Disability (as defined below); or

	(iv)
	Executive's
death. 

        (b)   The
date upon which Executive's termination of employment with the Company occurs shall be the "Termination Date." 

        10.    Payments upon Termination of Employment.    

        (a)   If
Executive's employment with the Company is terminated by reason of: 

	(i)
	Executive's
abandonment of her employment or Executive's resignation for any reason (whether or not such resignation is set forth in writing or otherwise communicated to
the Company);

	(ii)
	termination
of Executive's employment by the Company for Cause (as defined below); or

	(iii)
	termination
of Executive's employment by the Company without Cause following expiration of the Term; 

the
Company shall pay to Executive her then-current base salary through the Termination Date. 

        (b)   Except
in the case of a Change in Control, which is governed by Section 10(c) below, if Executive's employment with the Company is terminated by the Company
pursuant to Section 9(a)(i) effective prior to the expiration of the Term for any reason other than for Cause (as defined below), then the Company shall pay to Executive, subject to
Section 10(h) of this Agreement: 

	(i)
	her
then-current base salary through the Termination Date; 

7

 

	(ii)
	any
earned and unpaid annual Incentive Bonus for the fiscal quarter immediately preceding the fiscal quarter in which the Termination Date occurs;

	(iii)
	the
amount of her then current base salary that Executive would have received from the Termination Date through the date that is 180 days following such
Termination Date; and

	(iv)
	50%
of the aggregate quarterly Incentive Bonus earned by Executive for the last four full fiscal quarters immediately preceding the fiscal quarter in which the
Termination Date occurs. 

Any
amount payable to Executive pursuant to Section 10(b)(iii) shall be subject to deductions and withholdings and shall be paid to Executive by the Company in the same periodic installments in
accordance with the Company's regular payroll practices commencing on the first normal payroll date of the Company following the expiration of all applicable rescission periods provided by law. Any
amount payable to Executive pursuant to Section 10(b)(ii) shall be paid to Executive by the Company in the same manner and at the same time that Incentive Bonus payments are made to current
employees of the Company, but no earlier than the first normal payroll date of the Company following the expiration of all applicable rescission periods provided by law. Any amount payable to
Executive pursuant to Section 10(b)(iv) shall be paid to Executive by the Company in the same manner and on the same date as any payment would be made pursuant to Section 10(b)(ii) if
Executive were entitled to such payment. 

        (c)   If
Executive's employment is terminated by the Company without Cause following a Change in Control as defined in this Agreement and before the end of the Term of this
Agreement, or if the Executive's employment is terminated by the Executive for Good Reason following a Change in Control and before the end of the Term, then the Company shall pay to Executive,
subject to Executive's compliance with Section 10(h) of this Agreement, her then current base salary and incentive bonus through the end of Term of the Agreement, but in no event will the
Company pay the Executive less than one year of her current base salary and incentive bonus. 

        (d)   If
Executive's employment with the Company is terminated effective prior to the expiration of the Term by reason of Executive's death or Disability, the Company shall
pay to Executive or her beneficiary or her estate, as the case may be, her then-current base salary through the Termination Date, any earned and unpaid quarterly Incentive Bonus for the
fiscal quarter preceding the fiscal quarter in which the Termination Date occurs and a pro-rated portion of any quarterly Incentive Bonus for the fiscal quarter in which the Termination
Date occurs, based on the number of days during such fiscal quarter that Executive was employed by the Company, payable in the same manner and at the same time that Incentive Bonus payments are made
to current employees of the Company. 

        (e)   "Cause" hereunder shall mean: 

	(i)
	an
act or acts of dishonesty undertaken by Executive and intended to result in substantial gain or personal enrichment of Executive at the expense of the Company;

	(ii)
	unlawful
conduct or gross misconduct that is willful and deliberate on Executive's part and that, in either event, is materially injurious to the Company;

	(iii)
	the
conviction of Executive of a felony;

	(iv)
	material
and deliberate failure of Executive to perform her duties and responsibilities hereunder or to satisfy her obligations as an officer or employee of the
Company, which failure has not been cured by Executive within ten days after written notice thereof to Executive from the Company; or 

8

 

	(v)
	material
breach of any terms and conditions of this Agreement by Executive not caused by the Company, which breach has not been cured by Executive within ten days after
written notice thereof to Executive from the Company. 

        (f)    "Disability" hereunder shall mean the inability of Executive to perform on a full-time basis the duties and
responsibilities of her employment with the Company by reason of her illness or other physical or mental impairment or condition, if such inability continues for an uninterrupted period of
45 days or more during any 360-day period. A period of inability shall be "uninterrupted" unless and until Executive returns to full-time work for a continuous period of
at least 30 days. 

        (g)   In
the event of termination of Executive's employment, the sole obligation of the Company hereunder shall be its obligation to make the payments called for by
Sections 10(a), 10(b), or 10(c) hereof, as the case may be, and the Company shall have no other obligation to Executive or to her beneficiary or her estate, except as otherwise provided by law. 

        (h)   Notwithstanding
any other provision hereof, the Company shall not be obligated to make any payments under Section 10(b)(ii), (iii) or (iv) or
Section 10(c) of this Agreement unless Executive has signed a full release of claims against the Company, in a form and scope to be prescribed by the Board, all applicable consideration periods
and rescission periods provided by law shall have expired, and Executive is in strict compliance with the terms of this Agreement as of the dates of the payments. 

        11.    Return of Property.    Upon termination of Executive's employment with the Company, Executive shall deliver
promptly to the Company all records, files, manuals, books, forms, documents, letters, memoranda, data, customer lists, tables, photographs, video tapes, audio tapes, computer disks and other computer
storage media, and copies thereof, that are the property of the Company, or that relate
in any way to the business, products, services, personnel, customers, prospective customers, suppliers, practices, or techniques of the Company, and all other property of the Company (such as, for
example, computers, cellular telephones, pagers, credit cards, and keys), whether or not containing Confidential Information, that are in Executive's possession or under Executive's control. 

9

 

        12.    Remedies.    Executive acknowledges that it would be difficult to fully compensate the Company for monetary
damages resulting from any breach by her of the provisions of Sections 6, 7, 8 and 11 hereof. Accordingly, in the event of any actual or threatened breach of any such provisions, the Company
shall, in addition to any other remedies it may have, be entitled to injunctive and other equitable relief to enforce such provisions, and such relief may be granted without the necessity of proving
actual monetary damages. 

        13.    Miscellaneous.    

        (a)    Governing Law.    This Agreement shall be governed by, subject to, and construed in accordance with the laws of
the Commonwealth of Kentucky without regard to conflict of law principles. Any action relating to this Agreement shall only be brought in a court of competent jurisdiction in the Commonwealth of
Kentucky, and the parties consent to the jurisdiction, venue and convenience of such courts. 

        (b)    Jurisdiction and Law.    Executive and the Company consent to jurisdiction of the courts of the Commonwealth of
Kentucky and/or the federal district courts, Western District of Kentucky, for the purpose of resolving all issues of law, equity, or fact, arising out of or in connection with this Agreement. Any
action involving claims of a breach of this Agreement shall be brought in such courts. Each party consents to personal jurisdiction over such party in the state and/or federal courts of Kentucky and
hereby waives any defense of lack of personal jurisdiction or forum non conveniens. Venue, for the purpose of all such suits, shall be in Jefferson
County, Commonwealth of Kentucky. 

        (c)    Entire Agreement.    Except for any written stock option agreement and related agreements between Executive and
the Company, this Agreement contains the entire agreement of the parties relating to Executive's employment with the Company and supersedes all prior agreements and understandings with respect to such
subject matter, and the parties hereto have made no agreements, representations or warranties relating to the subject matter of this Agreement that are not set forth herein. 

        (d)    No Violation of Other Agreements.    Executive hereby represents and agrees that neither (i) Executive's
entering into this Agreement, (ii) Executive's employment with the Company, nor (iii) Executive's carrying out the provisions of this Agreement, will violate any other agreement (oral,
written or other) to which Executive is a party or by which Executive is bound. 

        (e)    Amendments.    No amendment or modification of this Agreement shall be deemed effective unless made in writing
and signed by the parties hereto. 

        (f)    No Waiver.    No term or condition of this Agreement shall be deemed to have been waived, except by a statement
in writing signed by the party against whom enforcement of the waiver is sought. Any written waiver shall not be deemed a continuing waiver unless specifically stated, shall operate only as to the
specific term or condition waived and shall not constitute a waiver of such term or condition for the future or as to any act other than that specifically waived. 

        (g)    Assignment.    This Agreement shall not be assignable, in whole or in part, by either party without the prior
written consent of the other party, except that the Company may, without the consent of Executive, assign its rights and obligations under this Agreement (i) to any entity with which the
Company may merge or consolidate, or (ii) to any corporation or other person or business entity to which the Company may sell or transfer all or substantially all of its assets. Upon
Executive's written request, the Company will seek to have any Successor by agreement assent to the fulfillment by the Company of its obligations under this Agreement. After any assignment by the
Company pursuant to this Section 13(g), the Company shall be discharged from all further liability hereunder and such assignee shall thereafter be deemed to be the "Company" for purposes of all
terms and conditions of this Agreement, including this Section 13. 

10

 

        (h)    Counterparts.    This Agreement may be executed in any number of counterparts, and such counterparts executed
and delivered, each as an original, shall constitute but one and the same instrument. 

        (i)    Severability.    Subject to Section 7(f) hereof, to the extent that any portion of any provision of this
Agreement shall be invalid or unenforceable, it shall be considered deleted herefrom and the remainder of such provision and of this Agreement shall be unaffected and shall continue in full force and
effect. 

        (j)    Survival.    The terms and conditions set forth in Sections 5, 6, 7, 8, 9, 11, 12, and 13 of this
Agreement, and any other provision that continues by its terms, shall survive expiration of the Term or termination of Executive's employment for any reason. 

        (k)    Captions and Headings.    The captions and paragraph headings used in this Agreement are for convenience of
reference only and shall not affect the construction or interpretation of this Agreement or any of the provisions hereof. 

        (l)    Notices.    Any notice required or permitted to be given under this Agreement shall be sufficient if in writing
and either delivered in person or sent by first class certified or registered mail, postage prepaid, if to the Company, at the Company's principal place of business, and if to Executive, at her home
address most recently filed with the Company, or to such other address or addresses as either party shall have designated in writing to the other party hereto. 

*
* * * * 

[Remainder of this page intentionally left blank.]  

11

 

        IN WITNESS WHEREOF, Executive and the Company have executed this Agreement on this 14th day of January, 2008. 

	 	TEXAS ROADHOUSE, INC.
	

 	

By:	

/s/ W. Kent Taylor
 W. Kent Taylor, Chairman
	

 	

SHEILA C. BROWN
	

 	

/s/ Sheila C. Brown

	

 	

 	

 

12

QuickLinks

Exhibit 10.18

Source: [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}, [{"source": "alea-institute/alea-institute/kl3m-data-edgar-agreements/train-00136-of-00352.parquet"}]]