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                                                                   EXHIBIT 10.34

                         MERITAGE HOSPITALITY GROUP INC.

                    AMENDED 2001 DIRECTORS' SHARE OPTION PLAN

         The purpose of the 2001 Directors' Share Option Plan, as amended, is to
advance the interests of Meritage Hospitality Group Inc. and its shareholders by
affording non-employee members of the Company's Board of Directors an
opportunity to increase their proprietary interest in the Company by the grant
of options to them to purchase common shares under the terms set forth herein.
The Company believes that this Plan will give an incentive to these members of
the Board to increase revenues and profits.

         1.       Effective Date of the Plan. This Plan shall become effective
on May 15, 2001.

         2.       Shares Subject to the Plan. The shares to be issued upon the
exercise of the options granted under the Plan shall be common shares, $.01 par
value, of the Company. Either treasury or authorized and unissued common shares,
or both, as the Board of Directors shall from time to time determine, may be so
issued. No common shares which are the subject of any lapsed, expired or
terminated options may be made the subject of additional options under the Plan.

         Subject to the provisions of Section 4 hereof, the aggregate number of
common shares for which options may be granted under the Plan shall be 120,000
shares.

         3.       Administration. The Plan shall be administered by a committee
appointed in accordance with the Bylaws and consisting of three or more
directors which directors may also be eligible to participate in the Plan.
Subject to the express provisions of the Plan, the Committee shall have the
authority to establish the terms and conditions of such option agreements,
consistent with this Plan. Such agreements need not be uniform.

         4.       Adjustments to Common Shares and Option Price.

                  4.1      In the event of changes in the outstanding common
         shares of the Company as a result of share dividends, split-ups,
         recapitalizations, combinations or exchanges, the number and class of
         common shares authorized to be the subject of options under the Plan
         and the number and class of common shares and option price for each
         option which is outstanding under this Plan shall be correspondingly
         adjusted by the Committee.

                  4.2      The Committee shall make appropriate adjustments in
         the option price to reflect any spin-off of assets, extraordinary
         dividends or other distributions to shareholders.

                  4.3      In the event of the dissolution or liquidation of the
         Company or any merger, consolidation or combination in which the
         Company is not the surviving corporation or in which the outstanding
         common shares of the Company are converted into cash, other securities
         or other property, each outstanding option issued hereunder shall
         terminate as of a date fixed by the Committee, provided that no less
         than 20 days' written notice of the date of expiration shall be given
         to each holder of an option. Each such holder shall have the right
         during such period following notice to exercise the option as to all or
         any part of the option for which it is exercisable at the time of such
         notice.

         5.       Eligible Directors; Grant of Options. An Eligible Director is
each director of the Company as of the time of grant of an option called for
hereafter who is not also an employee of the Company.

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         Each Eligible Director shall be granted an option for the purchase of
1,000 common shares immediately after the 2001 Annual Shareholders' Meeting, and
after each subsequent Annual Shareholders' Meeting. Effective at the 2004 Annual
Shareholders' Meeting, and at each subsequent Annual Shareholders' Meeting
thereafter, each Eligible Director shall be granted an option for the purchase
of 5,000 common shares. Persons who become Eligible Directors after the
effective date of the Plan shall be granted an option for 5,000 common shares as
a result of their election, whether by shareholders or directors, and upon each
subsequent Annual Shareholders' Meeting, another option for 5,000 common shares.
All grants shall be made on the date of the event giving rise to the option.
Such grants shall continue until the number of the shares provided for in
Section 2 are exhausted.

         Subject to the terms and conditions of the Plan, the Committee may,
from time to time, grant additional options to Eligible Directors on such terms
and conditions as the Committee may determine.

         6.       Price. The purchase price of the common shares which may be
acquired pursuant to the exercise of any option granted pursuant to the Plan
shall be the last closing sale price reported on the date of grant.

         7.       Period of Option. The term of each option shall be ten years
from the date of grant.

         8.       Exercise of Option. At any time following six months from its
date of issue, an option may be exercised by an Eligible Director as to all or
part of the shares covered thereby by giving written notice to the Company at
its principal office, directed to the attention of its Secretary, accompanied by
payment of the option price in full for shares being purchased. The payment of
the option price shall be either in cash or, subject to any conditions set forth
in the option agreement, by delivery of Mature Shares of the Company having a
fair market value equal to the purchase price on the date of exercise of the
option, or by any combination of cash and such Mature Shares. "Mature Shares" is
defined as Company common shares that an Eligible Director has owned for at
least six months. Payment may also be made through a broker-assisted cashless
exercise of Stock Options.

         Unless there is in effect at the time of exercise a registration
statement under the Securities Act of 1933 permitting the resale to the public
of shares acquired under the Plan, the holder of the option shall, except to the
extent determined by the Committee that such is not required, (i) represent and
warrant in writing to the Company that the shares acquired are being acquired
for investment and not with a view to the distribution thereof, (ii) acknowledge
that the shares acquired may not be sold unless registered for sale under said
Act or pursuant to an exemption from such registration, and (iii) agree that the
certificates evidencing such shares shall bear a legend to the effect of clauses
(i) and (ii).

         9.       Nontransferability of Options. An option is not transferable
by an Eligible Director to whom granted other than by will or the laws of
descent and distribution or pursuant to a qualified domestic relations order as
defined by the Internal Revenue Code of 1986, as amended (the "Code"), or Title
1 of the Employee Retirement Income Security Act, as amended.

         10.      Death or Disability of an Optionee. If an optionee shall cease
to be an Eligible Director on account of disability or death, an option
theretofore granted to such Eligible Director may be exercised by the optionee
or, in the case of death, by the legal representative of the estate of the
deceased option holder or by the person or persons to whom such Eligible
Director's rights under the option shall pass by will or the laws of descent and
distribution, at any time within one year from the date the optionee ceased to
be an Eligible Director, but only to the extent the option holder was entitled
to exercise the option at the date of such cessation and only during the option
period. "Disability" shall have the meaning ascribed to it in Section 105(d)(4)
of the Code.

         11.      Rights as a Shareholder. The holder of an option shall not
have any of the rights of a shareholder of the Company with respect to the
shares subject to an option until a certificate or certificates for such shares
shall have been issued upon the exercise of the option.

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         12.      Amendment and Termination.

                  12.1     The Plan shall terminate five years after its
         effective date and thereafter no options shall be granted thereunder.
         All options outstanding at the time of termination of the Plan shall
         continue in full force and effect in accordance with and subject to the
         terms and conditions of the Plan. The Board of Directors of the Company
         at any time prior to that date may terminate the Plan or make such
         amendments to it as the Board of Directors shall deem advisable. No
         termination or amendment of the Plan may, without the consent of the
         holder of an option then existing, terminate the option or materially
         and adversely affect the rights under the option.

                  12.2     This Plan may not be amended more than once every six
         months other than to conform with changes in the Code, the Employee
         Retirement Income Security Act, as amended, or the rules thereunder.

         13.      Automatic Termination of Option. Notwithstanding anything
contained herein to the contrary:

                  13.1     If at any time a holder of an option granted under
         this Plan becomes an employee, officer or director of or a consultant
         to an entity which the Committee determines is a competitor of the
         Company, such option shall automatically terminate as of the date such
         conflicting relationship was established regardless of whether such
         option is exercisable in whole or in part at such time.

                  13.2     An option shall terminated immediately if such
         termination is for cause. Cause is defined as including, but not
         limited to, theft or intentional damage to Company property, the use of
         illegal drugs, the commission of a criminal act, or willful violations
         of the law or of policies of the Company which prohibit directors from
         trading common shares for personal gain based on knowledge of the
         Company's activities or results when such information is not available
         to the general public.

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                                                                   EXHIBIT 10.35

                         MERITAGE HOSPITALITY GROUP INC.

                SECOND AMENDED 1999 DIRECTORS' COMPENSATION PLAN

         This 1999 Directors' Compensation Plan, as amended, has been adopted by
the Board of Directors of Meritage Hospitality Group Inc. in order to align
further the interests of the Company's non-employee Directors with the interests
of shareholders by providing that their compensation may be paid through the
issuance of Common Shares of the Company.

         1. COMPENSATION OF NON-EMPLOYEE DIRECTORS

         All Directors who are not employees of the Company shall be paid a
retainer of $1,000 for each meeting of the Board of Directors, or a Committee of
the Board of Directors, attended, provided however, that the retainer for
attendance at a Committee meeting shall be reduced by 50% if such meeting is
conducted on the same day as a meeting of the Board of Directors.

         2. PAYMENT TERMS

         The meeting fees set forth in Section 1 above shall be paid by the
Company quarterly, in arrears, as soon as practicable following the end of each
quarter in the form of Company Common Shares. However, at the written election
of a Director, the form of payment for such Director can be changed to cash.
Such election must be made prior to the beginning of the fiscal year during
which such meeting fees will be earned, and may not be changed during the fiscal
year for which the election is made.

         The number of Common Shares to be issued shall be determined by
dividing the dollar amount of the fee by the average of the per share Fair
Market Value of the Common Shares as defined in Section 3, for the five trading
days prior to the end of each quarter. The resulting number shall then be
rounded up to the nearest share.

         3. FAIR MARKET VALUE OF COMPANY COMMON SHARES

         "Fair Market Value" means the last sale price reported on any stock
exchange or over-the-counter trading system on which the Common Shares are
trading on the last trading day prior to a specified date or, if no last sales
price is reported, the average of the closing bid and asked prices for a Common
Share on a specified date. If no sale has been made on any date, prices on the
last preceding day on which any such sale shall have been made will be used
determining Fair Market Value under either method prescribed in the previous
sentence.

         4. RESTRICTIVE LEGEND; HOLDING PERIOD FOR COMMON SHARES

         In order to comply with Federal securities laws, all certificates for
Common Shares issued pursuant to this Plan shall be the following restrictive
legend which will prevent the recipient from disposing of such shares for six
months from the date of issuance:

         THE COMMONS SHARES REPRESENTED BY THIS CERTIFICATE MAY NOT BE OFFERED,
         SOLD, TRANSFERRED, PLEDGED, HYPOTHECATED OR OTHERWISE ASSIGNED UNTIL
         THE EXPIRATION OF THE SIX MONTH PERIOD BEGINNING ON THE DATE OF
         ORIGINAL ISSUANCE BY MERITAGE HOSPITALITY GROUP INC. AS PROVIDED BY THE
         COMPANY'S DIRECTOR'S COMPENSATION PLAN, A COPY OF WHICH WILL BE
         FURNISHED BY THE ISSUER TO THE HOLDER HEREOF UPON REQUEST.

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         When the legend requirement imposed by this Section 4 shall terminate,
the holder of Common Shares for which such legend requirements have terminated
may request that the Company issue replacement certificates representing such
shares without such legend.

         5. NO RIGHT TO CONTINUANCE AS A DIRECTOR

         Neither the action of the Company in establishing this Plan, nor the
issuance of Common Shares shall be deemed to create any obligation on the part
of the Board of Directors to nominate any non-employee Director for reelection
by the Company's shareholders or to be evidence of any agreement or
understanding, express or implied, that the non-employee Director has a right to
continue as a Director for any period of time or at any particular rate of
compensation.

         6. SHARES SUBJECT TO THE PLAN

         Common Shares are authorized for issuance under this Plan in accordance
with the provisions hereof. The Company shall at all times during the term of
the Plan retain as authorized and unissued Common Shares at least the number of
shares from time to time required under the provisions of the Plan, or otherwise
assure itself of its ability to perform its obligations hereunder.

         7. AMENDMENT

         The amount, pricing and timing of Common Share issuances pursuant to
this Plan shall not be amended more than once every six months, other than to
comport with changes in the Internal Revenue Code of 1986, as amended, the
Employee Retirement Income Security Act of 1974, as amended, or the rules
thereunder.

         8. EFFECTIVE DATE AND EXPIRATION OF PLAN

         The Plan is effective as of November 30, 1998, subject to approval by
the Board of Directors of the Company. Unless earlier terminated by the Board
pursuant to Section 10, this Plan shall terminate on the tenth anniversary of
the Effective Date. No Common Shares shall be issued pursuant to this Plan after
its termination.

         9. PAYMENT IN EVENT OF DEATH

         Upon the death of a non-employee Director, any portion of the
compensation pursuant to this Plan then unpaid shall be paid to the
beneficiaries named in the most recent beneficiary designation filed with the
Secretary of the Company. In the absence of such a designation, such
compensation shall be paid to, or as directed by, the decedent's personal
representative, in one or more installments as the non-employee Director may
have elected in writing.

         10. AMENDMENT, SUSPENSION AND TERMINATION OF PLAN

         The Board of Directors may suspend or terminate this Plan or any
portion of it at any time, and, subject to Section 7, may amend it from time to
time in such respects as the Board of Directors may deem advisable so that any
awards hereunder shall conform to any change in applicable laws or regulations
or in any other respect the Board of Directors may deem to be in the best
interests of the Company.

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