Document:

EMPLOYMENT AGREEMENT

         This  Agreement is entered  into  effective as of this 22 day of March,
2000, by and between Lone Star  Steakhouse & Saloon,  Inc., a  corporation  (the
"Corporation") and T. D. O'Connell ("Employee").

                                    RECITALS

        WHEREAS,  the  Employee  agrees  to serve as  Senior  Vice  President  -
Operations of the Corporation; and

        WHEREAS,  Employee  is a  principal  officer of the  Corporation  and an
integral part of its management; and

        WHEREAS,  the  Corporation  desires to engage the  services of Employee,
whose  experience,  knowledge  and  abilities  with  respect to the business and
affairs of the Corporation are extremely valuable to the Corporation; and

        WHEREAS,  the parties hereto desire to enter into this Agreement setting
forth the terms and conditions of the continued  employment  relationship of the
Corporation and Employee.

        NOW THEREFORE, it is agreed as follows:

                                    ARTICLE I

        Employee acknowledges and agrees that he is not subject to a non-compete
agreement  or any other  contractual  provision,  which would  prohibit him from
performing his duties as Senior Vice President - Operations for the Corporation.

                                   ARTICLE II

        2.1  TERM OF EMPLOYMENT. The Corporation shall initially employ Employee
for a  period  of  three  years  from  the date  hereof  (the  "Initial  Term").

        2.2  EXTENSION OF INITIAL  TERM.  Upon each annual  anniversary  date of
this Agreement,  this Agreement shall be

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extended  automatically for successive terms of one year each, unless either the
Corporation or the Employee gives contrary written notice to the other not later
than 90 days prior to the annual anniversary date thereof.

                                   ARTICLE III
                             DUTIES OF THE EMPLOYEE

        GENERAL  DUTIES.  Employee  shall  serve  as  Senior  Vice  President  -
Operations of the  Corporation.  He shall do and perform all  services,  acts or
things  necessary  or  advisable  to manage  and  conduct  the  business  of the
Corporation   consistent  with  such  position  subject  to  such  policies  and
procedures as may be established by the Board.

        Employee  shall:  (i) devote his entire  business time,  attention,  and
energies  to  the  business  of  the  Corporation,   and,  (ii)  faithfully  and
competently  perform his duties  hereunder;  and, Employee shall not, during the
term  of this  Agreement,  engage  in any  other  business  activity  except  as
permitted by Article 9.

                                   ARTICLE IV
                                  COMPENSATION

        4.1  SALARY.  For Employee's  services to the Corporation as Senior Vice
President - Operations,  Employee shall initially be paid a salary at the annual
rate of $200,000,  (herein referred to as "Salary")  payable  bi-weekly.  On the
first day of each  calendar  year  during  the term of this  Agreement  with the
Corporation,  Employee  shall be eligible  for an  increase  in Salary  based on
recommendations made by the Compensation Committee of the Board.

        4.2  BONUS. Employee is eligible to participate in the stock option plan
of the employer and all bonus compensation plans, which may be offered from time
to time.

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                                    ARTICLE V
                                EMPLOYEE BENEFITS

        5.1  USE OF AUTOMOBILE.  The Corporation shall provide, at the option of
Employee,  with either the use of an automobile for business and personal use or
a car  allowance of to be  specified by the  Corporation,  which  complies  with
I.R.S.  Guidelines.  The  Corporation  shall  pay  all  expenses  of  operating,
maintaining  and  repairing  the  automobile  and  shall  procure  and  maintain
automobile  liability insurance in respect thereof,  with such coverage insuring
each Employee for bodily injury and property damage.

        5.2  MEDICAL,  LIFE AND DISABILITY  INSURANCE BENEFITS.  The Corporation
shall provide employee with the medical,  life and disability insurance benefits
in accordance with the established benefit policies of the Corporation.

        5.3  BUSINESS EXPENSES. Employee shall be authorized to incur reasonable
expenses for promoting the business of the  Corporation  including  expenses for
entertainment,  travel,  and similar  items.  The  Corporation  shall  reimburse
Employee for all such expenses upon the  presentation by Employee,  from time to
time, of an itemized account of such expenditures.

        5.4  VACATIONS.  Employee  shall be entitled to an annual paid  vacation
commensurate  with the Corporation's  established  vacation policy for executive
officers. The timing of paid vacations shall be scheduled in a reasonable manner
by the Employee.

        5.5  DISABILITY.  Upon  disability (as defined  herein) of the Employee,
the  Employee  shall be entitled to receive an amount equal to 50% of his salary
(in addition to any disability  insurance  benefits received pursuant to Section
5.2 herein), such amount being paid semi-monthly in twelve equal installments.

                                   ARTICLE VI
                                   TERMINATION

        6.1  DEATH. Employee's employment hereunder shall be terminated upon the
Employee's death.

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        6.2  DISABILITY.  The  Corporation may terminate  Employee's  employment
hereunder in the event  Employee is disabled and such  disability  continues for
more than 180 days.  Disability shall be defined as the inability of Employee to
render the services required of him under this Agreement as a result of physical
or mental incapacity.

        6.3  CAUSE.

            (a) The Corporation may terminate  Employee's  employment  hereunder
for Cause. For the purpose of this Agreement, "Cause" shall mean the (i) willful
and  intentional  failure  by  Employee  to  substantially  perform  his  duties
hereunder,  other than any failure  resulting from Employee's  incapacity due to
physical or mental  incapacity,  or (ii)  commission by Employee,  in connection
with his employment by the Corporation, of an illegal act or any act (though not
illegal) which is not in the ordinary course of the Employee's  responsibilities
and which exposes the Corporation to a significant level of undue liability. For
purposes of this paragraph, no act or failure to act on Employee's part shall be
considered to have met either of the  preceding  tests unless done or omitted to
be done by  Employee  not in good faith  without a  reasonable  belief  that his
action or omission was in the best interest of the Corporation.

            (b) Notwithstanding  the foregoing,  Employee shall not be deemed to
have been  terminated for Cause unless and until there shall have been delivered
to Employee a copy of a  resolution,  duly adopted by the  majority  vote of the
Board of Directors.

        6.4  COMPENSATION  UPON  TERMINATION  FOR CAUSE OR UPON  RESIGNATION  BY
EMPLOYEE.  If Employee's employment shall be terminated for Cause or if Employee
shall  resign his  position  with the  Corporation,  the  Corporation  shall pay
Employee's  compensation  only through the last day of Employee's  employment by
the  Corporation.  The  Corporation  shall  then have no further  obligation  to
Employee under this Agreement.

        6.5  INVOLUNTARY TERMINATION.  If:

             (i) the Employee is terminated by  Corporation at any time prior to
             the  termination of this Agreement for reasons other than Cause (as
             defined herein),  (ii) if Corporation gives notice to the Employee,
             in accordance with Section 2.2 herein, that this Agreement will not
             be renewed;

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<PAGE>
             Employee  shall be paid,  over the ensuing six (6) month period,  a
             sum  equal  to the  cash  compensation  paid to him  excluding  all
             bonuses  of any kind by  Corporation  for the six (6) month  period
             immediately preceding such termination or non-renewal. Such six (6)
             month period,  as the case may be, shall begin:  (i) on the date of
             termination in the case of  termination  of Employee's  employment;
             and (ii) on the date notice of  non-renewal is given in the case of
             termination  of this  Agreement  not  accompanied  by  simultaneous
             termination of Employee's employment with the Corporation.

                                   ARTICLE VII
                  NO OBLIGATION TO MITIGATE DAMAGES; NO EFFECT
                           ON OTHER CONTRACTUAL RIGHTS

       7.1  NO MITIGATION. Employee shall not be required to mitigate damages or
the amount of any payment  provided for under this  Agreement  by seeking  other
employment or otherwise,  nor shall the amount of any payment provided for under
this Agreement be reduced by any  compensation  earned by Employee as the result
of employment by another employer after Employee's termination or resignation.

       7.2  OTHER CONTRACTUAL RIGHTS. The provisions of this Agreement,  and any
payment provided for hereunder,  shall not reduce any amount otherwise  payable,
or in any way diminish  Employee's existing rights, or rights which would accrue
solely as a result of passage of time under any  employee  benefit plan or other
contract,  plan or arrangement of which Employee is a beneficiary or in which he
participates.

                                  ARTICLE VIII
                          SUCCESSORS TO THE CORPORATION

      EMPLOYEE'S  SUCCESSORS  AND  ASSIGNS.  This  Agreement  shall inure to the
benefit of and be enforceable by Employee's personal and legal  representatives,
executors,   administrators,   successors,  heirs,  distributees,  devisees  and
legatees.  If Employee  should die while any  amounts  are still  payable to him
hereunder,  all such amounts, unless otherwise provided herein, shall be paid in
accordance  with the terms of this Agreement to Employee's  devisee,  legatee or
other designee or, if there be no such designee, to Employee's estate.

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<PAGE>
                                   ARTICLE IX
                            RESTRICTIONS ON EMPLOYEE

      9.1  NON-DISCLOSURE.  (a) The Employee  acknowledges  that, because of his
duties and his position of trust under this Agreement,  the Employee will become
familiar with trade secrets (including, but not limited to, marketing objectives
and strategies,  financial reporting,  management systems, recipes,  procedures,
business methods,  processes and financial  information) and other  confidential
information  (including,  but not limited to, operating  methods and procedures,
secret lists of actual and potential sources of supply, customers and employees,
costs,  profits,  markets,  sales and plans for future  developments) (the trade
secrets and other confidential information being referred to herein as "business
information")  which are valuable  assets and property rights of the Corporation
and not publicly known.  Except in connection with the performance of his duties
for the Corporation,  the Employee agrees that he will not during or at any time
after the Term and after the termination hereof,  either directly or indirectly,
individually  or jointly with  others,  for the benefit of Employee or any third
party, publish, disclose, use, or authorize anyone else to publish, disclose, or
use, any business  information or any information  relating to any aspect of the
business or operations  of the  Corporation,  including,  but not limited to any
secret or business  information  relating to the business,  customers,  trade or
industrial  practices,  trade  secrets,  technology,  recipes or know-how of the
Corporation or any facts  concerning the systems,  methods,  procedures or plans
developed or used by the Corporation and its  subsidiaries  and affiliates.  The
Employee agrees to retain all such business  information in a fiduciary capacity
for the sole  benefit of the  Corporation,  its  successors  and  assigns.  Upon
termination  of his  employment  by the  Corporation  or at any  time  that  the
Corporation  may so request the Employee will surrender to the  Corporation  all
non-public papers,  notes,  reports and other documents (and all copies thereof)
relating to the  business of the  Corporation  which he may then possess or have
under his control.

      (b) To the extent that Employee has generated or will generate  during the
course of his employment works of authorship (which shall be deemed to be "works
for hire"), copyrightable material, inventions, trademarks, trade dress or other
intellectual  property  (hereinafter  collectively  referred to as "Intellectual
Property"), such Intellectual Properly shall be the property of the Corporation.
In the event that the "works for hire" doctrine is found inapplicable,  all such
Intellectual  Properly,  and all rights

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<PAGE>
therein,  will be and are hereby deed to be,  assigned and  transferred  by this
Agreement to the Corporation,  its successors and assigns. The Corporation,  its
successor and assigns,  will have the exclusive right to obtain copyright patent
and/or trademark  registrations or other protection of the Intellectual Property
(including without limitation,  maintaining such Intellectual  Property as trade
secrets) in the  Corporation's  own name,  or in the names of the  Corporation's
successors  or  assigns,  as  inventor,  author  and/or  owner and to secure any
renewals  and  extension  of  such  protection  throughout  the  world.  If  the
Corporation chooses to maintain any part or all of the Intellectual  Property as
a trade secrets,  the Corporation  shall so inform the Employee and the Employee
shall maintain such Intellectual Property as confidential to the extent required
by this paragraph. The Employee further agrees as follows:

                    (i) The  Employee  hereby  acknowledges  that he  retain  no
            rights  whatsoever with respect to the  aforementioned  Intellectual
            Property,  including but no limited to, any rights to reproduce such
            Intellectual  Property,  or to make,  have  made,  use  and/or  sell
            products  based upon the  Intellectual  Property,  or  otherwise  to
            prepare derivatives thereof, to file patent,  copyright or trademark
            applications  with  respect  thereto,  to  distribute  copies of any
            Intellectual  Property in any manner whatsoever,  to exhibit, use or
            display any such Intellectual Property publicly or otherwise,  or to
            license  or  assign  to any  third  party the right to do any of the
            foregoing; and

                    (ii) The Employee will without further  remuneration (except
            for out-of-pocket)  expenses,  execute and deliver any documents and
            give  any   assistance  as  may  be  reasonably   requested  by  the
            Corporation  to effect  the  ownership  rights as  provided  in this
            Agreement or otherwise to further the purposes of this paragraph.

            9.2  NON-SOLICITATION.  (a) Except in the  performance of his duties
hereunder,  at no time  during  the Term and for a period  of  twenty-four  (24)
months thereafter such Employee shall not directly or indirectly, employ or seek
to employ, target or assist others in employing or seeking to employ directly or
indirectly any employee of the Corporation.

            (b) In addition during the Term and for such twenty-four (24) months
thereafter,  the Employee shall not influence or attempt to influence  customers
or suppliers of the Corporation or

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<PAGE>
any of its present or future  subsidiaries  or  affiliates,  either  directly or
indirectly  to divert  their  business  to any  individual,  partnership,  firm,
corporation  or other  entity  then in direct or indirect  competition  with the
business of the Corporation, or any subsidiary or affiliate of the Corporation.

            9.3  NON-COMPETITION.  During  the  Term  and for  twenty-four  (24)
months  thereafter,  regardless of any termination  pursuant to Article 6 or any
voluntary  termination  or  resignation  by Employee,  Employee shall not in any
capacity   whatsoever,   individually  or  jointly  with  others,   directly  or
indirectly,  whether  for his own  account  or for that of any  other  person or
entity be employed  by,  engage in, serve as an officer,  director,  consultant,
agent,  partner,  proprietor or other participant,  or own or hold any ownership
interest  in any  person or  entity  engaged  in a  restaurant  business,  which
features  steak and where steak  sales,  as a percentage  of food sales,  exceed
thirty percent (30%) which  restaurant  business is located within a one hundred
mile  radius of any  existing  Lone Star  Steakhouse  & Saloon  restaurant,  Del
Frisco's Double Eagle Steak House restaurant or Sullivan's Steakhouse restaurant
without the Corporation's written consent.

                                    ARTICLE X
                            UNIQUENESS OF PROVISIONS

            The provisions of Article 9 of this Agreement are of a unique nature
and of extraordinary value and of such a character that a material breach of the
provisions  of  Article  9 of this  Agreement  by the  Employee  will  result in
irreparable  damage and injury to the Corporation for which the Corporation will
not have any adequate remedy at law.  Therefore,  in the event that the Employee
commits or threatens to commit any such breach,  the  Corporation  will have (a)
the  right and  remedy  to have the  provision  of  Article 9 of this  Agreement
specifically  enforced by any court having equity jurisdiction,  it being agreed
that in any proceeding for an injunction, and upon any motion for a temporary or
permanent injunction, the Employee's ability to answer in damages shall not be a
bar or  interposed as a defense to the granting of such  injunction  and (b) the
right and remedy to require  the  Employee to account for and to pay over to the
Corporation all compensation,  profits, monies,  accruals,  increments and other
benefits  (hereinafter  referred  to  collective  as the  "Benefits"  derived or
received by him as a result of any transactions  constituting a breach of any of
the provisions of Article 9 of this Agreement, and the Employee hereby agrees to
account for and pay over such

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<PAGE>
Benefits  to the  Corporation.  Each of the rights and  remedies  enumerated  in
Article 9 above  shall be  independent  of the  other,  and  shall be  severally
enforceable,  and all of such rights and  remedies  shall be in addition to, and
not in lieu of, any other rights and remedies  available to the  Corporation  on
law or in equity.

                                   ARTICLE XI
                                  MISCELLANEOUS

            11.1  INDEMNIFICATION.  To the full  extent  permitted  by law,  the
Board  shall  authorize  the payment of  expenses  incurred by or shall  satisfy
judgments or fines rendered or levied against  Employee in any action brought by
a third-party  against  Employee  (whether or not the Corporation is joined as a
party  defendant)  to impose any  liability  or penalty on Employee  for any act
alleged to have been  committed by Employee  while  employed by the  Corporation
unless Employee was acting with gross negligence or willful misconduct. Payments
authorized  hereunder  shall  include  amounts  paid and  expenses  incurred  in
settling any such action or threatened action.

            11.2  ARBITRATION.  The parties agree that any  disputes,  claims or
controversy  of any kind arising out of this  agreement or out of the employment
relationship  between  Employee  and  the  Corporation  shall  be  submitted  to
arbitration.  Employee simultaneously with execution of this agreement agrees to
execute  the  Receipt  acknowledging  receipt  of  the  Corporation's  Mandatory
Arbitration Policy.

            11.3  NOTICES.   All   notices,    requests,   demands   and   other
communications hereunder,  including notice of termination by the Employee under
Article 12.1 or 12.2 of this Agreement must be in writing and shall be deemed to
have been duly given upon receipt if delivered by hand,  sent by  telecopier  or
courier,  and three (3) days  after  such  communication  is mailed  within  the
continental  United  States  by  first  class  certified  mail,  return  receipt
requested, postage prepaid, to the other party.

            11.4  WAIVER OF BREACH.  The waiver by any party  hereto of a breach
of any provision of this Agreement shall not operate or be construed as a waiver
of any subsequent breach by any party.

            11.5  AMENDMENT.  No amendment  or  modification  of this  Agreement
shall be deemed  effective  unless or until  executed  in writing by the parties
hereto.

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<PAGE>
            11.6 VALIDITY. This Agreement, having been executed and delivered in
the State of Kansas, its validity,  interpretation,  performance and enforcement
will be governed by the laws of that state.

            11.7  ARTICLE HEADINGS. Article and other headings contained in this
Agreement  are for  reference  purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

            11.8 COUNTERPART EXECUTION. This Agreement may be executed in two or
more counterparts,  each of which shall be deemed an original,  but all of which
together shall constitute but one and the same instrument.

            11.9  LEGAL FEES.  Except in the event of termination for Cause, and
only in the event a change of  control  of the  Corporation  has  occurred,  the
Corporation  shall pay all legal fees and expenses which Employee may incur as a
result  of  the  Corporation's   contesting  the  validity,   enforceability  or
Employee's interpretation of, or determination under, this Agreement.

            11.10 EXCLUSIVITY.   Specific   arrangements  referred  to  in  this
Agreement  are not  intended to exclude  Employee's  participation  in any other
benefits  available  to  executive  personnel  generally  or to  preclude  other
compensation or benefits as may be authorized by the Board from time to time.

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

                                   ARTICLE XII

            12.1  CHANGE  OF  CONTROL.  The  Employee  shall  have the  right to
terminate  his  employment  hereunder,  upon 10 days  notice to the  Corporation
within six months of Change of Control.  For the purposes of this  Agreement,  a
"Change of Control" means (i) the direct or indirect,  sale, lease,  exchange or
other  transfer of all or  substantially  all (50% or more) of the assets of the
Corporation  to any Person or Group of Persons  other  than an  Affiliate  or an
entity  controlled  by an  Affiliate,  (ii) the merger,  consolidation  or other
business  combination of the Corporation  with or into another  corporation with
the effect that the  shareholders  of the Corporation

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<PAGE>
immediately  prior to the business  combination hold 50% or less of the combined
voting power of the then outstanding  securities of the surviving Person of such
merger  ordinarily (and apart from rights accruing under special  circumstances)
having the right to vote in the election of directors,  (iii) the replacement of
a majority of the Board of the Corporation over any period of two years or less,
from the directors who constituted the Board of the Corporation at the beginning
of such  period,  and such  replacement(s)  shall not have been  approved by the
Board of the Corporation as constituted at the beginning of such period,  (iv) a
Person or Group of Persons other than an Affiliate or an entity controlled by an
Affiliate,  shall,  as a result  of a tender  or  exchange  offer,  open  market
purchases,   privately  negotiated  purchases  or  otherwise,  have  become  the
beneficial  owner  (within  the  meaning  of Rule  13d-3  promulgated  under the
Securities  Exchange Act of 1934, as amended (the "Exchange  Act") of securities
of the Corporation  representing 50% or more of the combined voting power of the
then outstanding securities of the Corporation ordinarily (and apart from rights
accruing under special  circumstances)  having the right to vote in the election
of directors. A transaction  constituting a Change of Control shall be deemed to
have  occurred  upon  the  closing  of  the  transaction.   Notwithstanding  the
foregoing,  a  transaction  shall not  constitute a Change of Control under this
Agreement if the transaction is approved by (i) at least a majority of the Board
of the Corporation as constituted  immediately prior to the transaction and (ii)
Jamie B. Coulter, the Chairman of the Board of the Corporation.

            For  the  purposes  of  this   Agreement,   an  "Affiliate"  of  the
Corporation  shall mean any person that directly,  or indirectly  through one or
more  intermediaries,  controls or is controlled  by, or is under common control
with the  Corporation,  including but not limited to the  executive  officer and
directors of the Corporation.

            12.2 TERMINATION OF NON-COMPETE AND  NON-SOLICITATION.  In the event
the Employee  elects to terminate this Agreement in connection  with a Change of
Control  under  the  terms of  Article  12.1,  the  provisions  of  Article  9.2
Non-Solicitation and 9.3 Non-Competition  shall be deemed to have expired and be
of no further force or effect as of the date of termination of the Employee.

            IN WITNESS WHEREOF,  the Corporation has caused this Agreement to be
executed and its seal affixed hereto by its officers  thereunto duly authorized;
and the Employee has executed this Agreement, as of the day and year first above
written.

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<PAGE>
"CORPORATION"                                   LONE STAR STEAKHOUSE &
   Attest                                         SALOON, INC.

/s/ Gerald T. Aaron                           BY  /s/ Jamie B. Coulter
-------------------------------                 --------------------------------
Gerald T. Aaron, Secretary                        Jamie B. Coulter, Chairman
                                                  and Chief  Executive Officer

Witness                                         "EMPLOYEE"

                                                /s/ T.D. O'Connell
-------------------------------                 --------------------------------
                                                T.D. O'Connell

                                       12EMPLOYMENT AGREEMENT

         This  Agreement is entered  into  effective as of this 22 day of March,
2000, by and between Lone Star  Steakhouse & Saloon,  Inc., a  corporation  (the
"Corporation") and Jeffrey S. Bracken ("Employee").

                                    RECITALS

         WHEREAS, the Employee agrees to serve as Vice President - Operations of
the Corporation; and

         WHEREAS,  Employee is a  principal  officer of the  Corporation  and an
integral part of its management; and

         WHEREAS,  the  Corporation  desires to engage the services of Employee,
whose  experience,  knowledge  and  abilities  with  respect to the business and
affairs of the Corporation are extremely valuable to the Corporation; and

         WHEREAS, the parties hereto desire to enter into this Agreement setting
forth the terms and conditions of the continued  employment  relationship of the
Corporation and Employee.

         NOW THEREFORE, it is agreed as follows:

                                    ARTICLE I

         EMPLOYMENT  AGREEMENt.  The  Employment  Agreement  dated May 27, 1999,
executed by the Corporation  and the Employee is hereby  terminated and shall be
superseded by this Agreement.

                                   ARTICLE II

         2.1 TERM OF EMPLOYMENT. The Corporation shall initially employ Employee
for a  period  of  three  years  from  the date  hereof  (the  "Initial  Term").

         2.2 EXTENSION OF INITIAL  TERM.  Upon each annual  anniversary  date of
this Agreement,  this Agreement shall be extended  automatically  for successive
terms of one year each,  unless  either the  Corporation  or the Employee  gives
contrary

<PAGE>
written  notice  to the  other  not  later  than 90  days  prior  to the  annual
anniversary date thereof.

                                   ARTICLE III
                             DUTIES OF THE EMPLOYEE

         GENERAL DUTIES.  Employee shall serve as Vice President - Operations of
the Corporation.  He shall do and perform all services, acts or things necessary
or advisable to manage and conduct the  business of the  Corporation  consistent
with such position subject to such policies and procedures as may be established
by the Board.

         Employee  shall:  (i) devote his entire business time,  attention,  and
energies  to  the  business  of  the  Corporation,   and,  (ii)  faithfully  and
competently  perform his duties  hereunder;  and, Employee shall not, during the
term  of this  Agreement,  engage  in any  other  business  activity  except  as
permitted by Article 9.

                                   ARTICLE IV
                                  COMPENSATION

         4.1  SALARY.  For  Employee's  services  to  the  Corporation  as  Vice
President - Operations,  Employee shall initially be paid a salary at the annual
rate of $175,000,  (herein referred to as "Salary")  payable  bi-weekly.  On the
first day of each  calendar  year  during  the term of this  Agreement  with the
Corporation,  Employee  shall be eligible  for an  increase  in Salary  based on
recommendations made by the Compensation Committee of the Board.

         4.2  BONUS.  Employee is eligible to  participate  in the stock  option
plan of the  employer  and all bonus  compensation  plans,  which may be offered
from time to time.

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<PAGE>
                                    ARTICLE V
                                EMPLOYEE BENEFITS

         5.1  USE OF AUTOMOBILE.  The Corporation shall provide, at the option
of Employee,  with either the use of an automobile for business and personal use
or a car allowance of to be specified by the  Corporation,  which  complies with
I.R.S.  Guidelines.  The  Corporation  shall  pay  all  expenses  of  operating,
maintaining  and  repairing  the  automobile  and  shall  procure  and  maintain
automobile  liability insurance in respect thereof,  with such coverage insuring
each Employee for bodily injury and property damage.

         5.2  MEDICAL,  LIFE AND DISABILITY INSURANCE BENEFITS.  The Corporation
shall provide employee with the medical,  life and disability insurance benefits
in accordance with the established benefit policies of the Corporation.

         5.3  BUSINESS   EXPENSES.   Employee   shall  be  authorized  to  incur
reasonable  expenses for  promoting  the business of the  Corporation  including
expenses for  entertainment,  travel,  and similar items. The Corporation  shall
reimburse Employee for all such expenses upon the presentation by Employee, from
time to time, of an itemized account of such expenditures.

         5.4  VACATIONS. Employee shall be entitled to an annual paid vacation
commensurate  with the Corporation's  established  vacation policy for executive
officers. The timing of paid vacations shall be scheduled in a reasonable manner
by the Employee.

         5.5  DISABILITY. Upon disability (as defined herein) of the Employee,
the  Employee  shall be entitled to receive an amount equal to 50% of his salary
(in addition to any disability  insurance  benefits received pursuant to Section
5.2 herein), such amount being paid semi-monthly in twelve equal installments.

                                   ARTICLE VI
                                   TERMINATION

         6.1  DEATH.  Employee's  employment  hereunder shall be terminated upon
the Employee's death.

                                       3

<PAGE>
         6.2  DISABILITY.  The Corporation may terminate  Employee's  employment
hereunder in the event  Employee is disabled and such  disability  continues for
more than 180 days.  Disability shall be defined as the inability of Employee to
render the services required of him under this Agreement as a result of physical
or mental incapacity.

         6.3  CAUSE.

         (a) The Corporation may terminate  Employee's  employment hereunder for
Cause. For the purpose of this Agreement, "Cause" shall mean the (i) willful and
intentional  failure by Employee to substantially  perform his duties hereunder,
other than any failure  resulting from Employee's  incapacity due to physical or
mental  incapacity,  or (ii)  commission  by Employee,  in  connection  with his
employment by the Corporation, of an illegal act or any act (though not illegal)
which is not in the ordinary course of the Employee's responsibilities and which
exposes the Corporation to a significant level of undue liability.  For purposes
of  this  paragraph,  no act or  failure  to act on  Employee's  part  shall  be
considered to have met either of the  preceding  tests unless done or omitted to
be done by  Employee  not in good faith  without a  reasonable  belief  that his
action or omission was in the best interest of the Corporation.

         (b)  Notwithstanding  the  foregoing,  Employee  shall not be deemed to
have been  terminated for Cause unless and until there shall have been delivered
to Employee a copy of a  resolution,  duly adopted by the  majority  vote of the
Board of Directors.

         6.4  COMPENSATION  UPON  TERMINATION  FOR CAUSE OR UPON  RESIGNATION BY
EMPLOYEE.  If Employee's employment shall be terminated for Cause or if Employee
shall  resign his  position  with the  Corporation,  the  Corporation  shall pay
Employee's  compensation  only through the last day of Employee's  employment by
the  Corporation.  The  Corporation  shall  then have no further  obligation  to
Employee under this Agreement.

        6.5   Involuntary Termination. If:

              (i) the Employee is terminated by Corporation at any time prior to
              the termination of this Agreement for reasons other than Cause (as
              defined herein), (ii) if Corporation gives notice to the Employee,
              in accordance  with Section 2.2 herein,  that this  Agreement will
              not be renewed;

                                       4

<PAGE>

              Employee shall be paid,  over the ensuing six (6) month period,  a
              sum  equal  to the cash  compensation  paid to him  excluding  all
              bonuses of any kind by  Corporation  for the six (6) month  period
              immediately  preceding such  termination or non-renewal.  Such six
              (6) month period, as the case may be, shall begin: (i) on the date
              of   termination   in  the  case  of   termination  of  Employee's
              employment; and (ii) on the date notice of non-renewal is given in
              the case of  termination  of this  Agreement  not  accompanied  by
              simultaneous   termination  of  Employee's   employment  with  the
              Corporation.

                                   ARTICLE VII
                  NO OBLIGATION TO MITIGATE DAMAGES; NO EFFECT
                           ON OTHER CONTRACTUAL RIGHTS

        7.1 NO MITIGATION. Employee shall not be required to mitigate damages or
the amount of any payment  provided for under this  Agreement  by seeking  other
employment or otherwise,  nor shall the amount of any payment provided for under
this Agreement be reduced by any  compensation  earned by Employee as the result
of employment by another employer after Employee's termination or resignation.

        7.2 OTHER CONTRACTUAL RIGHTS. The provisions of this Agreement,  and any
payment provided for hereunder,  shall not reduce any amount otherwise  payable,
or in any way diminish  Employee's existing rights, or rights which would accrue
solely as a result of passage of time under any  employee  benefit plan or other
contract,  plan or arrangement of which Employee is a beneficiary or in which he
participates.

                                  ARTICLE VIII
                          SUCCESSORS TO THE CORPORATION

        EMPLOYEE'S  SUCCESSORS AND ASSIGNS.  This  Agreement  shall inure to the
benefit of and be enforceable by Employee's personal and legal  representatives,
executors,   administrators,   successors,  heirs,  distributees,  devisees  and
legatees.  If Employee  should die while any  amounts  are still  payable to him
hereunder,  all such amounts, unless otherwise provided herein, shall be paid in
accordance  with the terms of this Agreement to Employee's  devisee,  legatee or
other designee or, if there be no such designee, to Employee's estate.

                                       5

<PAGE>
                                   ARTICLE IX
                            RESTRICTIONS ON EMPLOYEE

        9.1  NON-DISCLOSURE.  (a) The Employee acknowledges that, because of his
duties and his position of trust under this Agreement,  the Employee will become
familiar with trade secrets (including, but not limited to, marketing objectives
and strategies,  financial reporting,  management systems, recipes,  procedures,
business methods,  processes and financial  information) and other  confidential
information  (including,  but not limited to, operating  methods and procedures,
secret lists of actual and potential sources of supply, customers and employees,
costs,  profits,  markets,  sales and plans for future  developments) (the trade
secrets and other confidential information being referred to herein as "business
information")  which are valuable  assets and property rights of the Corporation
and not publicly known.  Except in connection with the performance of his duties
for the Corporation,  the Employee agrees that he will not during or at any time
after the Term and after the termination hereof,  either directly or indirectly,
individually  or jointly with  others,  for the benefit of Employee or any third
party, publish, disclose, use, or authorize anyone else to publish, disclose, or
use, any business  information or any information  relating to any aspect of the
business or operations  of the  Corporation,  including,  but not limited to any
secret or business  information  relating to the business,  customers,  trade or
industrial  practices,  trade  secrets,  technology,  recipes or know-how of the
Corporation or any facts  concerning the systems,  methods,  procedures or plans
developed or used by the Corporation and its  subsidiaries  and affiliates.  The
Employee agrees to retain all such business  information in a fiduciary capacity
for the sole  benefit of the  Corporation,  its  successors  and  assigns.  Upon
termination  of his  employment  by the  Corporation  or at any  time  that  the
Corporation  may so request the Employee will surrender to the  Corporation  all
non-public papers,  notes,  reports and other documents (and all copies thereof)
relating to the  business of the  Corporation  which he may then possess or have
under his control.

            (b) To the extent  that  Employee  has  generated  or will  generate
during the course of his employment  works of authorship  (which shall be deemed
to be "works for hire"), copyrightable material,  inventions,  trademarks, trade
dress or other intellectual  property  (hereinafter  collectively referred to as
"Intellectual  Property"),  such Intellectual  Properly shall be the property of
the  Corporation.  In the event  that the  "works  for hire"  doctrine  is found
inapplicable,  all such Intellectual  Properly,  and all rights

                                       6

<PAGE>
therein,  will be and are hereby deed to be,  assigned and  transferred  by this
Agreement to the Corporation,  its successors and assigns. The Corporation,  its
successor and assigns,  will have the exclusive right to obtain copyright patent
and/or trademark  registrations or other protection of the Intellectual Property
(including without limitation,  maintaining such Intellectual  Property as trade
secrets) in the  Corporation's  own name,  or in the names of the  Corporation's
successors  or  assigns,  as  inventor,  author  and/or  owner and to secure any
renewals  and  extension  of  such  protection  throughout  the  world.  If  the
Corporation chooses to maintain any part or all of the Intellectual  Property as
a trade secrets,  the Corporation  shall so inform the Employee and the Employee
shall maintain such Intellectual Property as confidential to the extent required
by this paragraph. The Employee further agrees as follows:

                    (i) The  Employee  hereby  acknowledges  that he  retain  no
              rights whatsoever with respect to the aforementioned  Intellectual
              Property,  including  but no limited  to, any rights to  reproduce
              such Intellectual Property, or to make, have made, use and/or sell
              products  based upon the  Intellectual  Property,  or otherwise to
              prepare  derivatives   thereof,  to  file  patent,   copyright  or
              trademark  applications with respect thereto, to distribute copies
              of any Intellectual Property in any manner whatsoever, to exhibit,
              use  or  display  any  such  Intellectual   Property  publicly  or
              otherwise, or to license or assign to any third party the right to
              do any of the foregoing; and

                    (ii) The Employee will without further  remuneration (except
              for out-of-pocket) expenses, execute and deliver any documents and
              give  any  assistance  as  may  be  reasonably  requested  by  the
              Corporation  to effect the  ownership  rights as  provided in this
              Agreement or otherwise to further the purposes of this paragraph.

        9.2  NON-SOLICITATION.  (a)  Except  in the  performance  of his  duties
hereunder,  at no time  during  the Term and for a period  of  twenty-four  (24)
months thereafter such Employee shall not directly or indirectly, employ or seek
to employ, target or assist others in employing or seeking to employ directly or
indirectly any employee of the Corporation.

             (b) In  addition  during  the Term and for  such  twenty-four  (24)
months  thereafter,  the  Employee  shall not  influence or attempt to influence
customers  or  suppliers  of the  Corporation  or

                                       7
<PAGE>
any of its present or future  subsidiaries  or  affiliates,  either  directly or
indirectly  to divert  their  business  to any  individual,  partnership,  firm,
corporation  or other  entity  then in direct or indirect  competition  with the
business of the Corporation, or any subsidiary or affiliate of the Corporation.

        9.3  NON-COMPETITION.  During the Term and for  twenty-four  (24) months
thereafter, regardless of any termination pursuant to Article 6 or any voluntary
termination  or  resignation  by  Employee,  Employee  shall not in any capacity
whatsoever, individually or jointly with others, directly or indirectly, whether
for his own account or for that of any other  person or entity be  employed  by,
engage in, serve as an officer, director, consultant, agent, partner, proprietor
or other  participant,  or own or hold any  ownership  interest in any person or
entity  engaged in a restaurant  business,  which features steak and where steak
sales,  as a  percentage  of food  sales,  exceed  thirty  percent  (30%)  which
restaurant  business is located within a one hundred mile radius of any existing
Lone Star Steakhouse & Saloon restaurant,  Del Frisco's Double Eagle Steak House
restaurant or Sullivan's Steakhouse restaurant without the Corporation's written
consent.

                                    ARTICLE X
                            UNIQUENESS OF PROVISIONS

        The provisions of Article 9 of this Agreement are of a unique nature and
of  extraordinary  value and of such a character  that a material  breach of the
provisions  of  Article  9 of this  Agreement  by the  Employee  will  result in
irreparable  damage and injury to the Corporation for which the Corporation will
not have any adequate remedy at law.  Therefore,  in the event that the Employee
commits or threatens to commit any such breach,  the  Corporation  will have (a)
the  right and  remedy  to have the  provision  of  Article 9 of this  Agreement
specifically  enforced by any court having equity jurisdiction,  it being agreed
that in any proceeding for an injunction, and upon any motion for a temporary or
permanent injunction, the Employee's ability to answer in damages shall not be a
bar or  interposed as a defense to the granting of such  injunction  and (b) the
right and remedy to require  the  Employee to account for and to pay over to the
Corporation all compensation,  profits, monies,  accruals,  increments and other
benefits  (hereinafter  referred  to  collective  as the  "Benefits"  derived or
received by him as a result of any transactions  constituting a breach of any of
the provisions of Article 9 of this Agreement, and the Employee hereby agrees to
account for and pay over such

                                       8

<PAGE>
Benefits  to the  Corporation.  Each of the rights and  remedies  enumerated  in
Article 9 above  shall be  independent  of the  other,  and  shall be  severally
enforceable,  and all of such rights and  remedies  shall be in addition to, and
not in lieu of, any other rights and remedies  available to the  Corporation  on
law or in equity.

                                   ARTICLE XI
                                  MISCELLANEOUS

        11.1  INDEMNIFICATION.  To the full extent  permitted  by law, the Board
shall authorize the payment of expenses  incurred by or shall satisfy  judgments
or fines  rendered  or  levied  against  Employee  in any  action  brought  by a
third-party  against  Employee  (whether or not the  Corporation  is joined as a
party  defendant)  to impose any  liability  or penalty on Employee  for any act
alleged to have been  committed by Employee  while  employed by the  Corporation
unless Employee was acting with gross negligence or willful misconduct. Payments
authorized  hereunder  shall  include  amounts  paid and  expenses  incurred  in
settling any such action or threatened action.

        11.2  ARBITRATION.  The parties agree that any  disputes,  claims or
controversy  of any kind arising out of this  agreement or out of the employment
relationship  between  Employee  and  the  Corporation  shall  be  submitted  to
arbitration.  Employee simultaneously with execution of this agreement agrees to
execute  the  Receipt  acknowledging  receipt  of  the  Corporation's  Mandatory
Arbitration Policy.

        11.3  NOTICES. All notices,  requests,  demands and other communications
hereunder, including notice of termination by the Employee under Article 12.1 or
12.2 of this  Agreement must be in writing and shall be deemed to have been duly
given upon receipt if  delivered by hand,  sent by  telecopier  or courier,  and
three (3) days after such  communication is mailed within the continental United
States by first class certified mail, return receipt requested, postage prepaid,
to the other party.

        11.4  WAIVER OF BREACH.  The  waiver by any party  hereto of a breach of
any  provision of this  Agreement  shall not operate or be construed as a waiver
of any subsequent breach by any party.

        11.5  AMENDMENT. No amendment or modification of this Agreement shall be
deemed  effective  unless or until  executed in writing by the  parties  hereto.

                                       9
<PAGE>

        11.6  VALIDITY.  This  Agreement,  having been executed and delivered in
the State of Kansas, its validity,  interpretation,  performance and enforcement
will be governed by the laws of that state.

        11.7  ARTICLE  HEADINGS.  Article and other  headings  contained in this
Agreement  are for  reference  purposes only and shall not affect in any way the
meaning or interpretation of this Agreement.

        11.8  COUNTERPART  EXECUTION.  This  Agreement may be executed in two or
more counterparts,  each of which shall be deemed an original,  but all of which
together shall constitute but one and the same instrument.

        11.9  LEGAL FEES. Except in the event of termination for Cause, and only
in  the  event  a  change  of  control  of the  Corporation  has  occurred,  the
Corporation  shall pay all legal fees and expenses which Employee may incur as a
result  of  the  Corporation's   contesting  the  validity,   enforceability  or
Employee's interpretation of, or determination under, this Agreement.

        11.10 EXCLUSIVITY.  Specific  arrangements referred to in this Agreement
are not  intended  to exclude  Employee's  participation  in any other  benefits
available to executive  personnel generally or to preclude other compensation or
benefits as may be authorized by the Board from time to time.

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

                                   ARTICLE XII

        12.1  CHANGE OF CONTROL.  The Employee shall have the right to terminate
his  employment  hereunder,  upon 10 days notice to the  Corporation  within six
months of Change of Control.  For the purposes of this  Agreement,  a "Change of
Control"  means (i) the  direct or  indirect,  sale,  lease,  exchange  or other
transfer  of all or  substantially  all  (50%  or  more)  of the  assets  of the
Corporation  to any Person or Group of Persons  other  than an  Affiliate  or an
entity  controlled  by an  Affiliate,  (ii) the merger,  consolidation  or other
business  combination of the Corporation  with or into another  corporation with

                                       10
<PAGE>

the effect that the  shareholders  of the Corporation  immediately  prior to the
business  combination  hold 50% or less of the combined voting power of the then
outstanding  securities of the surviving  Person of such merger  ordinarily (and
apart from rights accruing under special circumstances) having the right to vote
in the election of directors,  (iii) the  replacement of a majority of the Board
of the Corporation  over any period of two years or less, from the directors who
constituted  the Board of the  Corporation at the beginning of such period,  and
such replacement(s) shall not have been approved by the Board of the Corporation
as  constituted  at the  beginning  of such  period,  (iv) a Person  or Group of
Persons other than an Affiliate or an entity controlled by an Affiliate,  shall,
as a result of a tender or  exchange  offer,  open market  purchases,  privately
negotiated purchases or otherwise,  have become the beneficial owner (within the
meaning of Rule 13d-3 promulgated under the Securities  Exchange Act of 1934, as
amended (the "Exchange Act") of securities of the Corporation  representing  50%
or more of the combined voting power of the then  outstanding  securities of the
Corporation   ordinarily   (and  apart  from  rights   accruing   under  special
circumstances)  having  the  right  to  vote in the  election  of  directors.  A
transaction  constituting  a Change of Control  shall be deemed to have occurred
upon  the  closing  of  the  transaction.   Notwithstanding  the  foregoing,   a
transaction shall not constitute a Change of Control under this Agreement if the
transaction  is  approved  by (i) at  least  a  majority  of  the  Board  of the
Corporation as constituted  immediately  prior to the transaction and (ii) Jamie
B. Coulter, the Chairman of the Board of the Corporation.

         For the purposes of this  Agreement,  an "Affiliate" of the Corporation
shall  mean  any  person  that  directly,  or  indirectly  through  one or  more
intermediaries,  controls or is controlled  by, or is under common  control with
the  Corporation,  including  but  not  limited  to the  executive  officer  and
directors of the Corporation.

        12.2  TERMINATION OF NON-COMPETE AND NON-SOLICITATION.  In the event the
Employee  elects to  terminate  this  Agreement in  connection  with a Change of
Control  under  the  terms of  Article  12.1,  the  provisions  of  Article  9.2
Non-Solicitation and 9.3 Non-Competition  shall be deemed to have expired and be
of no further force or effect as of the date of termination of the Employee.

        IN WITNESS  WHEREOF,  the  Corporation  has caused this  Agreement to be
executed and its seal affixed hereto by its officers  thereunto duly authorized;
and the Employee has executed this Agreement, as of the day and year first above
written.

                                       11

<PAGE>
"CORPORATION"                                   LONE STAR STEAKHOUSE &
   Attest                                         SALOON, INC.

/s/ Gerald T. Aaron                             /s/ Jamie B. Coulter
-------------------------------               By--------------------------------
Gerald T. Aaron, Secretary                        Jamie B. Coulter, Chairman
                                                  and Chief Executive Officer

Witness                                         "EMPLOYEE"

                                                /s/ Jeffrey S. Bracken
-------------------------------                 --------------------------------
                                                 Jeffrey S. Bracken

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