Document:

2003 Equity Incentive Plan

 Exhibit 10.9 
 Landry’s Restaurants, Inc. 2003 Equity Incentive Plan 
  
 The Landry’s Restaurants, Inc. 2003 Equity Incentive Plan (the “Plan”) was adopted by the Board of Directors of Landry’s Restaurants,
Inc., a Delaware corporation (the “Company”), on June 23, 2003. 
  
 ARTICLE 1 
 PURPOSE 
  
 The purposes of the Plan are to foster and promote the long-term financial success of the Company and its Subsidiaries and
materially increase the value of the Company and its Subsidiaries by (a) encouraging the long-term commitment of the Employees of the Company and its Subsidiaries, (b) motivating performance of the Employees of the Company and its Subsidiaries by
means of long-term performance related incentives, (c) encouraging and providing Employees of the Company and its Subsidiaries with an opportunity to obtain an ownership interest in the Company, (d) attracting and retaining outstanding Employees by
providing incentive compensation opportunities, and (e) enabling participation by Employees in the long-term growth and financial success of the Company and its Subsidiaries. 
  
 With respect to Reporting Participants, the Plan and all transactions under the Plan are intended to comply with all
applicable conditions of Rule 16b-3 promulgated under the Securities Exchange Act of 1934 (the “1934 Act”). To the extent any provision of the Plan or action by the Committee fails to so comply, it shall be deemed null and void ab
initio, to the extent permitted by law and deemed advisable by the Committee. 
  
 ARTICLE 2 
 DEFINITIONS 
  
 For the purpose of the Plan, unless the context requires otherwise, the following terms shall have the meanings indicated:

  
 2.1    “Award” means the grant
of any Restricted Stock, Incentive Stock Option, or Nonqualified Stock Option, with or without a CEV feature (referred to herein sometimes as an “Incentive”). 
  
 2.2    “Award Agreement” means a written agreement between a Participant and the Company which
sets out the terms of the grant of an Award. 
  
 2.3    “Award Period” means the period set forth in the Award Agreement with respect to a Stock Option during which the Stock Option may be exercised, which shall commence on the Date of Grant and expire at the
time set forth in the Award Agreement. 
  
 2.4    “Board” means the board of directors of the Company. 
  
 2.5    “CEV” or “Cash Equivalent Value” means the feature consisting of a payment in cash equal to the excess of
the Fair Market Value of a specified number of shares of Common Stock on the date the Stock Option is exercised over the CEV Price for such shares. 
  
 2.6    “CEV Price” means the exercise price of each share of Common Stock covered by a CEV feature, determined on the Date
of Grant of the Stock Option containing the CEV. 
  
 2.7    “Code” means the Internal Revenue Code of 1986, as amended. 

 2.8      “Committee” means the committee appointed or designated
by the Board to administer the Plan in accordance with Article 3 of this Plan. 
  
 2.9      “Common Stock” means the common stock, par value $0.01 per share, which the Company is currently authorized to issue or may in the future be authorized to issue, or any
securities into which or for which the common stock of the Company may be converted or exchanged, as the case may be, pursuant to the terms of this Plan. 
  
 2.10    “Company” means Landry’s Restaurants, Inc., a Delaware corporation, and any successor entity. 
  
 2.11    “Corporation” means any entity that (i)
is defined as a corporation under Code Section 7701 and (ii) is the Company or is in an unbroken chain of corporations (other than the Company) beginning with the Company, if each of the corporations other than the last corporation in the unbroken
chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of the other corporations in the chain. For purposes of clause (ii) hereof, an entity shall be treated as a “corporation” if it
satisfies the definition of a corporation under Section 7701 of the Code. 
  
 2.12    “Date of Grant” means the effective date on which an Award is made to a Participant as set forth in the applicable Award Agreement. 
  
 2.13    “Employee” means common law employee
(as defined in accordance with the Regulations and Revenue Rulings then applicable under Section 3401(c) of the Code) of the Company or any Subsidiary of the Company. 
  
 2.14    “Fair Market Value” means, as of a particular date, (i) if the shares of Common Stock
are listed on a national securities exchange, the closing sales price per share of Common Stock on the consolidated transaction reporting system for the principal securities exchange for the Common Stock on that date, or, if there shall have been no
such sale so reported on that date, on the last preceding date on which such a sale was so reported, (ii) if the shares of Common Stock are not so listed but are quoted on the Nasdaq National Market System, the closing sales price per share of
Common Stock on the Nasdaq National Market System on that date, or, if there shall have been no such sale so reported on that date, on the last preceding date on which such a sale was so reported, (iii) if the Common Stock is not so listed or
quoted, the mean between the closing bid and asked price on that date, or, if there are no quotations available for such date, on the last preceding date on which such quotations shall be available, as reported by Nasdaq, or, if not reported by
Nasdaq, by the National Quotation Bureau, Inc., or (iv) if none of the above is applicable, such amount as may be determined by the Board (acting on the advice of an Independent Third Party, should the Board elect in its sole discretion to utilize
an Independent Third Party for this purpose), in good faith, to be the fair market value per share of Common Stock. 
  
 2.15    “Independent Third Party” means an individual or entity independent of the Company having experience in providing
investment banking or similar appraisal or valuation services and with expertise generally in the valuation of securities or other property for purposes of this Plan. The Board may utilize one or more Independent Third Parties. 
  
 2.16    “Incentive Stock Option” means an
incentive stock option within the meaning of Section 422 of the Code, granted pursuant to this Plan. 
  
 2.17    “Nonqualified Stock Option” means a nonqualified stock option, granted pursuant to this Plan, to which Section 421
of the Code does not apply. 
  
 2.18    “Option Price” means the price which must be paid by a Participant upon exercise of a Stock Option to purchase a share of Common Stock. 
  
 2.19    “Participant” means an Employee of the Company or a Subsidiary to whom an Award is
granted under this Plan. 

 2.20    “Plan” means this Landry’s Restaurants, Inc. 2003 Equity
Incentive Plan, as amended from time to time. 
  
 2.21    “Reporting Participant” means a Participant who is subject to the reporting requirements of Section 16 of the 1934 Act. 
  
 2.22    “Restricted Stock” means shares of Common Stock issued or transferred to a Participant
pursuant to Section 6.5 of this Plan which are subject to restrictions or limitations set forth in this Plan and in the related Award Agreement. 
  
 2.23    “Stock Option” means a Nonqualified Stock Option or an Incentive Stock Option. 
  
 2.24    “Subsidiary” means (i) any corporation
in an unbroken chain of corporations beginning with the Company, if each of the corporations other than the last corporation in the unbroken chain owns stock possessing a majority of the total combined voting power of all classes of stock in one of
the other corporations in the chain, (ii) any limited partnership, if the Company or any corporation described in item (i) above owns a majority of the general partnership interest and a majority of the limited partnership interests entitled to vote
on the removal and replacement of the general partner, and (iii) any partnership or limited liability company, if the partners or members thereof are composed only of the Company, any corporation listed in item (i) above or any limited partnership
listed in item (ii) above. “Subsidiaries” means more than one of any such corporations, limited partnerships, partnerships or limited liability companies. 
  
 2.25    “Termination of Service” occurs when a Participant who is an Employee of the Company
or any Subsidiary shall cease to serve as an Employee of the Company and its Subsidiaries, for any reason; provided, however, if any Termination of Service provided for herein shall fall on a Saturday, Sunday or legal holiday, then such date of
Termination of Service shall be deemed to be the first normal business day of the Company, at its office in Houston, Texas, before such Saturday, Sunday or legal holiday. If, however, a Participant who is an Employee and who has an Incentive Stock
Option ceases to be an Employee but does not suffer a Termination of Service, and if that Participant does not exercise the Incentive Stock Option within the time required under Code section 422 upon ceasing to be an Employee, the Incentive Stock
Option shall thereafter become a Nonqualified Stock Option. 
  
 2.26    “Total and Permanent Disability” means a Participant is qualified for long-term disability benefits under the Company’s or Subsidiary’s disability plan or insurance policy; or, if no such plan
or policy is then in existence or if the Participant is not eligible to participate in such plan or policy, that the Participant, because of a physical or mental condition resulting from bodily injury, disease, or mental disorder which prevents the
Participant from performing his or her duties of employment for a period of six (6) continuous months, as determined in good faith by the Committee, based upon medical reports or other evidence satisfactory to the Committee; provided
that, with respect to any Incentive Stock Option, Total and Permanent Disability shall have the meaning given it under the rules governing Incentive Stock Options under the Code. 
  
 ARTICLE 3 
 ADMINISTRATION 
  
 Subject to the terms of this
Article 3, the Plan shall be administered by the Board or such committee of the Board as is designated by the Board to administer the Plan (the “Committee”). The Committee shall consist of not fewer than two persons. Any member of the
Committee may be removed at any time, with or without cause, by resolution of the Board. Any vacancy occurring in the membership of the Committee may be filled by appointment by the Board. At any time there is no Committee to administer the Plan,
any references in this Plan to the Committee shall be deemed to refer to the Board. If the Compensation Committee of the Board is not responsible for administering the Plan, the Compensation 

 Committee shall have the right to exercise any of its responsibilities with respect to the Plan as set forth in its
Charter. 
  
 If necessary to satisfy the requirements of Section
162(m) of the Code and/or Rule 16b-3 promulgated under the 1934 Act, membership on the Committee shall be limited to those members of the Board who are “outside directors” under Section 162(m) of the Code and/or “non-employee
directors” as defined in Rule 16b-3 promulgated under the 1934 Act. The Committee shall select one of its members to act as its Chairman. A majority of the Committee shall constitute a quorum, and the act of a majority of the members of the
Committee present at a meeting at which a quorum is present shall be the act of the Committee. 
  
 The Committee shall determine and designate from time to time the eligible persons to whom Awards will be granted and shall set forth in each related Award Agreement, where applicable, the Award Period, the Date of
Grant, and such other terms, provisions, limitations, and performance requirements, as are approved by the Committee, but not inconsistent with the Plan (subject to the Compensation Committee of the Board’s responsibility to determine the Chief
Executive Officer’s compensation). The Committee shall determine whether an Award shall include one type of Incentive or two or more Incentives granted in tandem (that is, a joint grant where, under the terms of the Award Agreement, exercise of
one Incentive results in cancellation of all or a portion of the other Incentive). Although the members of the Committee shall be eligible to receive Awards, no member of the Committee shall participate in any decisions regarding any Award granted
hereunder to such member. All decisions with respect to any Award, and the terms and conditions thereof, to be granted under the Plan to any member of the Committee shall be made solely and exclusively by the other members of the Committee, or if
such member is the only member of the Committee, by the Board. 
  
 Notwithstanding the provisions of the preceding paragraph, the Board may, in its discretion and by a resolution adopted by the Board, authorize one or more officers of the Company (an “Authorized Officer”) to (i) designate one or
more Employees as eligible persons to whom Awards will be granted under the Plan and (ii) determine the number of shares of Common Stock that will be subject to such Awards; provided, however, that the resolution of the Board granting such authority
shall (x) specify the total number of shares of Common Stock that may be made subject to the Awards, (y) set forth the price or prices (or a formula by which such price or prices may be determined) to be paid for the purchase of the Common Stock
subject to such Awards, and (z) not authorize an officer to designate himself as a recipient of any Award. The Authorized Officer shall notify the Committee in writing of the persons designated to receive such Awards, the type of Award or the type
of Incentives subject to the Award, the Date of Grant, the number of shares of Common Stock that will be subject to such Awards, and the purchase price to be paid for such shares. If authorized to do so in the Board’s written resolution, the
Authorized Officer shall cause the Company to execute an Award Agreement with the Participant, subject to the Committee’s ratification of such terms of an Award as required by law. 
  
 Within an administratively reasonable time after receipt of the Authorized Officer’s written notice of one or more
Awards, the Committee shall authorize or ratify the grant of such Awards and shall prescribe all other terms of such Awards pursuant to its authority set forth in the preceding paragraphs of this Article 3. 
  
 The Committee, in its discretion, shall (i) interpret the Plan, (ii)
prescribe, amend, and rescind any rules and regulations necessary or appropriate for the administration of the Plan, (iii) establish performance goals for an Award and certify the extent of their achievement, and (iv) make such other determinations
or certifications and take such other action as it deems necessary or advisable in the administration of the Plan. Any interpretation, determination, or other action made or taken by the Committee shall be final, binding, and conclusive on all
interested parties. The Committee’s discretion set forth herein shall not be limited by any provision of the Plan, including any provision which by its terms is applicable notwithstanding any other provision of the Plan to the contrary.

 The Committee may delegate to officers of the Company, pursuant to a written delegation, the authority to
perform specified functions under the Plan. Any actions taken by any officers of the Company pursuant to such written delegation of authority shall be deemed to have been taken by the Committee. 
  
 With respect to restrictions in the Plan that are based on the requirements
of Rule 16b-3 promulgated under the 1934 Act, the Sarbanes-Oxley Act of 2002, Section 422 of the Code, Section 162(m) of the Code, the rules of any exchange or inter-dealer quotation system upon which the Company’s securities are listed or
quoted, or any other applicable law, rule or restriction (collectively, “applicable law”), to the extent that any such restrictions are no longer required by applicable law, the Committee shall have the sole discretion and authority to
grant Awards that are not subject to such mandated restrictions and/or to waive any such mandated restrictions with respect to outstanding Awards. To the extent there are restrictions of applicable law that would affect the actions of the Committee
or the composition of the Committee as otherwise provided for under the terms of the Plan, then notwithstanding the terms and provisions of the Plan, those restrictions of applicable law shall apply under the Plan as if those restrictions were fully
set forth in the Plan. 
  
 ARTICLE 4 
 ELIGIBILITY 
  
 Any Employee (including an Employee who is also an officer) of the Company whose judgment, initiative, and efforts contributed or may be expected to
contribute to the successful performance of the Company is eligible to participate in the Plan. The Committee, upon its own action, may grant, but shall not be required to grant, an Award to any Employee of the Company or any Subsidiary. Awards may
be granted by the Committee at any time and from time to time to new Participants, or to then Participants, or to a greater or lesser number of Participants, and may include or exclude previous Participants, as the Committee shall determine. Except
as required by this Plan, Awards granted at different times need not contain similar provisions. The Committee’s determinations under the Plan (including without limitation determinations of which Employees are to receive Awards, the form,
amount and timing of such Awards, the terms and provisions of such Awards and the agreements evidencing same) need not be uniform and may be made by the Committee selectively among Participants who receive, or are eligible to receive, Awards under
the Plan. 
  
 ARTICLE 5 
 SHARES SUBJECT TO PLAN 
  
 5.1    Number Available for Awards. Subject to adjustment as provided in Articles 11 and 12, the maximum number of shares of
Common Stock that may be delivered pursuant to Awards granted under the Plan is seven hundred thousand (700,000) shares. Shares to be issued shall be solely from Common Stock held by the Company in its treasury. During the term of this Plan, the
Company will at all times reserve and keep available the number of shares of Common Stock that shall be sufficient to satisfy the requirements of this Plan. 
  
 5.2    Reuse of Shares. Subject to Section 5.2(c), if, and to the extent: 
  
 (a)    A Stock Option shall expire or
terminate for any reason without having been exercised in full, or in the event that a Stock Option is exercised or settled in a manner such that some or all of the shares of Common Stock relating to the Stock Option are not issued to the
Participant (or beneficiary) (including as the result of the use of shares for withholding taxes), the shares of Common Stock subject thereto which have not become outstanding shall (unless the Plan shall have sooner terminated) become available for
issuance under the Plan; in addition, with respect to any share-for-share exercise or cashless exercise pursuant to Section 8.3 or otherwise, only the “net” shares issued shall be deemed to have become outstanding for purposes of the Plan
as a result thereof. Notwithstanding the foregoing provisions of this paragraph (a), shares which 

 were not issued because they were used for withholding taxes are not available for issuance for purposes
of granting Incentive Stock Options. 
  
 (b)    If shares of Restricted Stock under the Plan are forfeited for any reason, such shares of Restricted Stock shall (unless the Plan shall have sooner terminated) become available for issuance under the Plan;
provided, however, that if any dividends paid with respect to shares of Restricted Stock were paid to the Participant prior to the forfeiture thereof, such shares shall not be reused for grants or awards. 
  
 ARTICLE 6 
 GRANT OF AWARDS 
  
 6.1    In General. The Company shall execute an Award Agreement with a Participant after the Committee approves the issuance of an Award. Any Award granted pursuant to this Plan must be
granted within ten (10) years after the date of adoption of this Plan of, if later and so required, the date of stockholder approval for the Plan. If required by rules or regulations of the New York Stock Exchange or otherwise required by applicable
law, or if desired by the Board, the Plan shall be submitted to the Company’s stockholders for approval; however, the Committee may grant Awards under the Plan prior to the time of any required or desired stockholder approval. Any such Award
granted prior to such stockholder approval, if required or desired by the Board, shall be made subject to such stockholder approval. The grant of an Award to a Participant shall not be deemed either to entitle the Participant to, or to disqualify
the Participant from, receipt of any other Award under the Plan. 
  
 6.2    Stock Options. The grant of an Award of Stock Options shall be authorized by the Committee and shall be evidenced by an Award Agreement setting forth: (i) the Incentive being granted, (ii) the total number
of shares of Common Stock subject to the Incentive(s), (iii) the Option Price, (iv) the Award Period, (v) the Date of Grant, and (vi) such other terms, provisions, limitations, and performance objectives, as are approved by the Committee, but not
inconsistent with the Plan. 
  
 6.3    Option Price. The Option Price for any share of Common Stock which may be purchased under a Nonqualified Stock Option for any share of Common Stock may be equal to, less than, or greater than the Fair
Market Value of the share on the Date of Grant. The Option Price for any share of Common Stock which may be purchased under an Incentive Stock Option must be at least equal to the Fair Market Value of the share on the Date of Grant; if an Incentive
Stock Option is granted to an Employee who owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company (or any parent or
Subsidiary), the Option Price shall be at least 110% of the Fair Market Value of the Common Stock on the Date of Grant. 
  
 6.4    Maximum ISO Grants. The Committee may not grant Incentive Stock Options under the Plan to any Employee which would
permit the aggregate Fair Market Value (determined on the Date of Grant) of the Common Stock with respect to which Incentive Stock Options (under this and any other plan of the Company and its Subsidiaries) are exercisable for the first time by such
Employee during any calendar year to exceed $100,000. To the extent any Stock Option granted under this Plan which is designated as an Incentive Stock Option exceeds this limit or otherwise fails to qualify as an Incentive Stock Option, such Stock
Option (or any such portion thereof) shall be a Nonqualified Stock Option. In such case, the Committee shall designate which stock will be treated as Incentive Stock Option stock by causing the issuance of a separate stock certificate and
identifying such stock as Incentive Stock Option stock on the Company’s stock transfer records. 
  
 6.5    Restricted Stock. If Restricted Stock is granted to or received by a Participant under an Award (including a Stock
Option), the Committee shall set forth in the related Award Agreement: (i) the number of shares of Common Stock awarded, (ii) the price, if any, to be paid by the Participant for such Restricted Stock and the method of payment of the price, (iii)
the time or times within which such Award may be subject to forfeiture, (iv) specified performance goals of the Company, a Subsidiary, any division thereof or any group of Employees of the Company, or other criteria, which the Committee determines

 must be met in order to remove any restrictions (including vesting) on such Award, and (v) all other terms, limitations,
restrictions, and conditions of the Restricted Stock, which shall be consistent with this Plan. The provisions of Restricted Stock need not be the same with respect to each Participant. If the Committee establishes a purchase price for an Award of
Restricted Stock, the Participant must accept such Award within a period of thirty (30) days (or such shorter period as the Committee may specify) after the Date of Grant by executing the applicable Award Agreement and paying such purchase price.

  
 (a)    Legend on
Shares. Each Participant who is awarded or receives Restricted Stock shall be issued a stock certificate or certificates in respect of such shares of Common Stock. Such certificate(s) shall be registered in the name of the Participant, and shall
bear an appropriate legend referring to the terms, conditions, and restrictions applicable to such Restricted Stock, substantially as provided in Section 15.9 of the Plan. 
  
 (b)    Restrictions and Conditions. Shares of Restricted Stock shall be subject
to the following restrictions and conditions: 
  
 (i)    Subject to the other provisions of this Plan and the terms of the particular Award Agreements, during such period as may be determined by the Committee commencing on the Date of Grant or the date of exercise of an
Award (the “Restriction Period”), the Participant shall not be permitted to sell, transfer, pledge or assign shares of Restricted Stock. Except for these limitations, the Committee may in its sole discretion, remove any or all of the
restrictions on such Restricted Stock whenever it may determine that, by reason of changes in applicable laws or other changes in circumstances arising after the date of the Award, such action is appropriate. 
  
 (ii)    Except as provided in
sub-paragraph (i) above or in the applicable Award Agreement, the Participant shall have, with respect to his or her Restricted Stock, all of the rights of a stockholder of the Company, including the right to vote the shares, and the right to
receive any dividends thereon. Certificates for shares of Common Stock free of restriction under this Plan shall be delivered to the Participant promptly after, and only after, the Restriction Period shall expire without forfeiture in respect of
such shares of Common Stock or after any other restrictions imposed in such shares of Common Stock by the applicable Award Agreement or other agreement have expired. Certificates for the shares of Common Stock forfeited under the provisions of the
Plan and the applicable Award Agreement shall be promptly returned to the Company by the forfeiting Participant. Each Award Agreement shall require that each Participant, in connection with the issuance of a certificate for Restricted Stock, shall
endorse such certificate in blank or execute a stock power in form satisfactory to the Company in blank and deliver such certificate and executed stock power to the Company. 
  
 (iii)    The Restriction Period of Restricted Stock shall commence on the Date of Grant
or the date of exercise of an Award, as specified in the Award Agreement, and, subject to Article 12 of the Plan, unless otherwise established by the Committee in the Award Agreement setting forth the terms of the Restricted Stock, shall expire upon
satisfaction of the conditions set forth in the Award Agreement; such conditions may provide for vesting based on (i) length of continuous service, (ii) achievement of specific business objectives, (iii) increases in specified indices, (iv)
attainment of specified growth rates, or (v) other comparable measurements of Company performance, as may be determined by the Committee in its sole discretion. 
  
 (iv)    Except as otherwise provided in the particular Award Agreement, upon Termination
of Service for any reason during the Restriction Period, the nonvested shares of Restricted Stock shall be forfeited by the Participant. In the event a Participant has paid any consideration to the Company for such forfeited Restricted Stock, the
Committee shall specify in the Award Agreement that either (i) the Company shall be obligated to, or (ii) the Company may, in its sole discretion, elect to, pay to the 

 Participant, as soon as practicable after the event causing forfeiture, in cash, an amount equal to the
lesser of the total consideration paid by the Participant for such forfeited shares or the Fair Market Value of such forfeited shares as of the date of Termination of Service, as the Committee, in its sole discretion shall select. Upon any
forfeiture, all rights of a Participant with respect to the forfeited shares of the Restricted Stock shall cease and terminate, without any further obligation on the part of the Company. 
  
 6.6    Maximum Individual Grants. No Participant may receive during any fiscal year of the
Company Awards covering an aggregate of more than seven hundred thousand (700,000) shares of Common Stock. 
  
 6.7    CEV. A CEV feature of an Award shall entitle the Participant, at the discretion of the Committee, to receive from the
Company cash in an amount equal to the excess (if any) of the Fair Market Value (as of the date of exercise by the Committee of the CEV feature) per share over the CEV Price per share specified for such CEV, multiplied by the total number of shares
of the CEV being granted by the Committee. 
  
 6.8    Tandem Awards. The Committee may grant two or more Incentives in one Award in the form of a “tandem Award,” so that the right of the Participant to exercise one Incentive shall be canceled if, and
to the extent, the other Incentive is exercised. For example, if a Stock Option and a CEV are issued in a tandem Award, and the Committee determines to exercise the CEV with respect to 100 shares of Common Stock, the right of the Participant to
exercise the related Stock Option shall be canceled to the extent of 100 shares of Common Stock. 
  
 6.9    CEV Price. The CEV Price for any share of Common Stock subject to a CEV shall be equal to the Fair Market Value of the
share on the Date of Grant of the grant which contains the CEV. 
  
 ARTICLE 7 
 AWARD PERIOD; VESTING 
  
 7.1    Award Period. 
  
 (a)    Subject to the other provisions of this Plan, the Committee shall specify in the
Award Agreement the Award Period. No Stock Option granted under the Plan may be exercised at any time after the end of its Award Period. The Award Period for any Stock Option shall be no more than ten (10) years from the Date of Grant of the Stock
Option. However, if an Employee owns or is deemed to own (by reason of the attribution rules of Section 424(d) of the Code) more than ten percent (10%) of the combined voting power of all classes of stock of the Company (or any parent or Subsidiary)
and an Incentive Stock Option is granted to such Employee, the Award Period of such Incentive Stock Option (to the extent required by the Code at the time of grant) shall be no more than five (5) years from the Date of Grant. 
  
 (b)    In the event of a Termination of
Service of a Participant, the Award Period for a Stock Option shall be reduced or terminated in accordance with the Award Agreement. 
  
 7.2    Vesting. The Committee, in its sole discretion, may determine that an Incentive will be immediately vested in whole or
in part, or that all or any portion may not be vested until a date, or dates, subsequent to its Date of Grant, or until the occurrence of one or more specified events, subject in any case to the terms of the Plan. If the Committee imposes conditions
upon vesting, then, subsequent to the Date of Grant, the Committee may, in its sole discretion, accelerate the date on which all or any portion of the Incentive may be vested. 

 ARTICLE 8 
 EXERCISE OF INCENTIVE 
  
 8.1    In General. The Committee, in its sole discretion, may determine that a Stock Option will be immediately exercisable, in whole or in part, or that all or any portion may not be exercised until a date, or
dates, subsequent to its Date of Grant, or until the occurrence of one or more specified events, subject in any case to the terms of the Plan. If a Stock Option is exercisable prior to the time it is vested, the Common Stock obtained on the exercise
of the Stock Option shall be Restricted Stock which is subject to the applicable provisions of the Plan and the Award Agreement. If the Committee imposes conditions upon exercise, then subsequent to the Date of Grant, the Committee may, in its sole
discretion, accelerate the date on which all or any portion of the Stock Option may be exercised. No Stock Option may be exercised for a fractional share of Common Stock. The granting of a Stock Option shall impose no obligation upon the Participant
to exercise that Stock Option. 
  
 8.2    Securities Law and Exchange Restrictions. In no event may an Incentive be exercised or shares of Common Stock be issued pursuant to an Award if a necessary listing or quotation of the shares of Common Stock
on a stock exchange or inter-dealer quotation system or any registration under state or federal securities laws required under the circumstances has not been accomplished. 
  
 8.3    Exercise of Stock Option. 
  
 (a)    Notice and Payment. Subject to such administrative regulations as the
Committee may from time to time adopt, a Stock Option may be exercised by the delivery of written notice to the Committee or other designated person setting forth the number of shares of Common Stock with respect to which the Stock Option is to be
exercised and the date of exercise thereof (the “Exercise Date”). Unless otherwise provided in the Award Agreement, on the Exercise Date, the Participant shall deliver to the Company consideration with a value equal to the total Option
Price of the shares to be purchased, payable as provided in the Award Agreement, which may provide for payment in any one or more of the following ways: (a) cash or check, bank draft, or money order payable to the order of the Company, (b) Common
Stock (including Restricted Stock) owned by the Participant on the Exercise Date, valued at its Fair Market Value on the Exercise Date, and which the Participant has not acquired from the Company within six (6) months prior to the Exercise Date, (c)
to the extent otherwise permitted by applicable law, by delivery (including by FAX) to the Company or its designated agent of an executed irrevocable option exercise form together with irrevocable instructions from the Participant to a broker or
dealer, reasonably acceptable to the Company, to sell certain of the shares of Common Stock purchased upon exercise of the Stock Option or to pledge such shares as collateral for a loan and promptly deliver to the Company the amount of sale or loan
proceeds necessary to pay such purchase price, and/or (d) in any other form of valid consideration that is permitted by applicable law and acceptable to the Committee in its sole discretion. In the event that shares of Restricted Stock are tendered
as consideration for the exercise of a Stock Option, a number of shares of Common Stock issued upon the exercise of the Stock Option with an Option Price equal to the value of Restricted Stock used as consideration therefor shall be subject to the
same restrictions and provisions as the Restricted Stock so tendered. 
  
 (b)    Issuance of Certificate. Except as otherwise provided in Section 6.5 hereof (with respect to shares of Restricted Stock) or in the applicable Award Agreement, upon payment of all
amounts due from the Participant, the Company shall cause certificates for the Common Stock then being purchased to be delivered as directed by the Participant (or the person exercising the Participant’s Stock Option in the event of his death)
at its principal business office promptly after the Exercise Date; provided that if the Participant has exercised an Incentive Stock Option, the Company may at its option retain physical possession of the certificate evidencing the shares acquired
upon exercise until the expiration of the holding periods described in Section 422(a)(1) of the Code. The obligation of the Company to deliver shares of Common Stock shall, however, be subject to the condition that, if at any time the Committee
shall determine in its discretion that the listing or registration of the Stock Option or the Common Stock upon any securities exchange or 

 inter-dealer quotation system or under any state or federal law, or the consent or approval of any
governmental regulatory body, is necessary as a condition of, or in connection with, the Stock Option or the issuance or purchase of shares of Common Stock thereunder, the Stock Option may not be exercised in whole or in part unless such listing,
registration, consent, or approval shall have been effected or obtained free of any conditions not reasonably acceptable to the Committee. 
  
 (c)    Failure to Pay. If the Participant fails to pay for any of the Common Stock specified in such notice or
fails to accept delivery thereof, that portion of the Participant’s Stock Option and right to purchase such Common Stock may be forfeited by the Company. 
  

8.4    CEVs. Subject to the conditions of Section 6.4, this Section 8.4, the Award Agreement and such administrative
regulations as the Committee may from time to time adopt, a CEV may be exercised by the delivery (including by FAX) to the Participant of written notice by the Committee or other designated person setting forth the number of shares of Common Stock
with respect to which the CEV is to be exercised and the date of exercise thereof (the “Exercise Date”). On the Exercise Date, the Participant shall receive from the Company cash in an amount equal to the excess (if any) of the Fair Market
Value (as of the date of the Participant’s exercise of the Stock Option) per share of Common Stock over the CEV Price per share specified in such CEV, multiplied by the total number of shares of Common Stock covered by the exercised CEV.

  
 8.5    Disqualifying Disposition of
Incentive Stock Option. If shares of Common Stock acquired upon exercise of an Incentive Stock Option are disposed of by a Participant prior to the expiration of either two (2) years from the Date of Grant of such Stock Option or one (1) year
from the transfer of shares of Common Stock to the Participant pursuant to the exercise of such Stock Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such Participant shall notify the Company in
writing of the date and terms of such disposition. A disqualifying disposition by a Participant shall not affect the status of any other Stock Option granted under the Plan as an Incentive Stock Option within the meaning of Section 422 of the Code.

  
 ARTICLE 9 
 AMENDMENT OR DISCONTINUANCE 
  
 Subject to the limitations set forth in this Article 9, the Board may at any time and from time to time, without the consent of the Participants, alter,
amend, revise, suspend, or discontinue the Plan in whole or in part; provided, however, that no amendment which requires stockholder approval in order for the Plan and Incentives awarded under the Plan to comply with applicable law, including
Section 162(m), 421 and 422 of the Code, to the extent the Board intends for those provisions to apply, shall be effective unless such amendment shall be approved by the requisite vote of the stockholders of the Company entitled to vote thereon. Any
such amendment shall, to the extent deemed necessary or advisable by the Committee, be applicable to any outstanding Incentives theretofore granted under the Plan, notwithstanding any contrary provisions contained in any Award Agreement. In the
event of any such amendment to the Plan, the holder of any Incentive outstanding under the Plan shall, upon request of the Committee and as a condition to the exercisability thereof, execute a conforming amendment in the form prescribed by the
Committee to any Award Agreement relating thereto. Notwithstanding anything contained in this Plan to the contrary, unless required by applicable law, no action contemplated or permitted by this Article 9 shall adversely affect any rights of
Participants or obligations of the Company to Participants with respect to any Incentive theretofore granted under the Plan without the consent of the affected Participant. 
  
 ARTICLE 10 
 TERM 
  
 The Plan shall be effective from the
date that this Plan is approved by the Board. Unless sooner terminated by action of the Board, the Plan will terminate on June 23, 2013, but Incentives granted before that date will continue to be effective in accordance with their terms and
conditions. 

 ARTICLE 11 
 CAPITAL ADJUSTMENTS 
  
 In
the event that the Committee shall determine that any dividend or other distribution (whether in the form of cash, Common Stock, other securities, or other property), recapitalization, stock split, reverse stock split, rights offering,
reorganization, merger, consolidation, split-up, spin-off, split-off, combination, subdivision, repurchase, or exchange of Common Stock or other securities of the Company, issuance of warrants or other rights to purchase Common Stock or other
securities of the Company, or other similar corporate transaction or event affects the Common Stock such that an adjustment is determined by the Committee to be appropriate to prevent the dilution or enlargement of the benefits or potential benefits
intended to be made available under the Plan, then the Committee shall, in such manner as it may deem equitable, adjust any or all of the (i) the number of shares and type of Common Stock (or the securities or property) which thereafter may be made
the subject of Awards, (ii) the number of shares and type of Common Stock (or other securities or property) subject to outstanding Awards, (iii) the number of shares and type of Common Stock (or other securities or property) specified as the annual
per-participant limitation under Section 6.6 of the Plan, (iv) the Option Price of each outstanding Award, (v) the amount, if any, the Company pays for forfeited shares of Common Stock in accordance with Section 6.5, and (vi) the number of or CEV
Price of shares of Common Stock then subject to outstanding CEV’s previously granted and unexercised under the Plan to the end that the same proportion of the Company’s issued and outstanding shares of Common Stock in each instance shall
remain subject to exercise at the same aggregate CEV Price; provided however, that the number of shares of Common Stock (or other securities or property) subject to any Award shall always be a whole number. In lieu of the foregoing, if deemed
appropriate, the Committee may make provision for a cash payment to the holder of an outstanding Award. Notwithstanding the foregoing, no such adjustment or cash payment shall be made or authorized to the extent that such adjustment or cash payment
would cause the Plan or any Stock Option to violate Code Section 422. Such adjustments shall be made in accordance with applicable law and the rules of any securities exchange, stock market, or stock quotation system to which the Company is subject.

  
 Upon the occurrence of any such adjustment or cash payment,
the Company shall provide notice to each affected Participant of its computation of such adjustment or cash payment which shall be conclusive and shall be binding upon each such Participant. 
  
 ARTICLE 12 
 RECAPITALIZATION, MERGER AND CONSOLIDATION 
  
 12.1    No Effect on Company’s Authority. The existence of this Plan and Incentives granted hereunder shall not affect in
any way the right or power of the Company or its stockholders to make or authorize any or all adjustments, recapitalizations, reorganizations, or other changes in the Company’s capital structure and its business, or any merger or consolidation
of the Company, or any issuance of bonds, debentures, preferred or preference stocks ranking prior to or otherwise affecting the Common Stock or the rights thereof (or any rights, options, or warrants to purchase same), or the dissolution or
liquidation of the Company, or any sale or transfer of all or any part of its assets or business, or any other corporate act or proceeding, whether of a similar character or otherwise. 
  
 12.2    Conversion of Incentives Where Company Survives. Subject to any required action by the
stockholders, if the Company shall be the surviving or resulting corporation in any merger, consolidation or share exchange, any Incentive granted hereunder shall pertain to and apply to the securities or rights (including cash, property, or assets)
to which a holder of the number of shares of Common Stock subject to the Incentive would have been entitled. 
  
 12.3    Exchange or Cancellation of Incentives Where Company Does Not Survive. In the event of any merger, consolidation or
share exchange pursuant to which the Company is not the surviving or resulting corporation, there shall be substituted for each share of Common Stock subject to the 

 unexercised portions of outstanding Stock Options or CEVs, that number of shares of each class of stock or other
securities or that amount of cash, property, or assets of the surviving, resulting or consolidated company which were distributed or distributable to the stockholders of the Company in respect to each share of Common Stock held by them, such
outstanding Stock Options or CEVs to be thereafter exercisable for such stock, securities, cash, or property in accordance with their terms. 
  
 Notwithstanding the foregoing, however, all Stock Options or CEVs may be canceled by the Company, in its sole discretion, as of the effective date of any
such reorganization, merger, consolidation, or share exchange, or of any proposed sale of all or substantially all of the assets of the Company, or of any dissolution or liquidation of the Company, by either: 
  
 (a)    giving notice to each holder
thereof or his personal representative of its intention to cancel such Stock Options or CEVs and permitting the purchase during the thirty (30) day period next preceding such effective date of any or all of the shares subject to such outstanding
Stock Options or CEVs, including in the Board’s discretion some or all of the shares as to which such Stock Options or CEVs would not otherwise be vested and exercisable; or 
  
 (b)    paying the holder thereof an amount equal to a reasonable estimate of the
difference between the net amount per share payable in such transaction or as a result of such transaction, and the exercise price per share of such Stock Option (hereinafter the “Spread”), multiplied by the number of shares subject to the
Stock Option. In cases where the shares constitute, or would after exercise, constitute Restricted Stock, the Company, in its discretion may include some or all of those shares in the calculation of the amount payable hereunder. In estimating the
Spread, appropriate adjustments to give effect to the existence of the Stock Options shall be made, such as deeming the Stock Options to have been exercised, with the Company receiving the exercise price payable thereunder, and treating the shares
receivable upon exercise of the Options as being outstanding in determining the net amount per share. In cases where the proposed transaction consists of the acquisition of assets of the Company, the net amount per share shall be calculated on the
basis of the net amount receivable with respect to shares of Common Stock upon a distribution and liquidation by the Company after giving effect to expenses and charges, including but not limited to taxes, payable by the Company before such
liquidation could be completed. 
  
 (c)    An Award that by its terms would be fully vested or exercisable upon such a reorganization, merger, consolidation, share exchange, proposed sale of all or substantially all of the assets of the Company or
dissolution or liquidation of the Company will be considered vested or exercisable for purposes of Section 12.3(a) hereof. 
  
 ARTICLE 13 
 LIQUIDATION OR
DISSOLUTION 
  
 Subject to Section 12.3 hereof, in case the
Company shall, at any time while any Incentive under this Plan shall be in force and remain unexpired, (i) sell all or substantially all of its property, or (ii) dissolve, liquidate, or wind up its affairs, then each Participant shall be entitled to
receive, in lieu of each share of Common Stock of the Company which such Participant would have been entitled to receive under the Incentive, the same kind and amount of any securities or assets as may be issuable, distributable, or payable upon any
such sale, dissolution, liquidation, or winding up with respect to each share of Common Stock of the Company. If the Company shall, at any time prior to the expiration of any Incentive, make any partial distribution of its assets, in the nature of a
partial liquidation, whether payable in cash or in kind (but excluding the distribution of a cash dividend payable out of earned surplus and designated as such) then in such event the Option Prices or CEV Prices then in effect with respect to each
Stock Option or CEV shall be reduced, on the payment date of such distribution, in proportion to the percentage reduction in the tangible book value of the shares of the Company’s Common Stock (determined in accordance with generally accepted
accounting principles) resulting by reason of such distribution. 

 ARTICLE 14 
 INCENTIVES IN SUBSTITUTION FOR 
 INCENTIVES GRANTED BY OTHER ENTITIES 
  
 Incentives may be granted under the Plan from time to time in substitution
for similar instruments held by employees or directors of a corporation, partnership, or limited liability company who become or are about to become Employees of the Company or any Subsidiary as a result of a merger or consolidation of the employing
corporation with the Company, the acquisition by the Company of equity of the employing entity, or any other similar transaction pursuant to which the Company becomes the successor employer. The terms and conditions of the substitute Incentives so
granted may vary from the terms and conditions set forth in this Plan to such extent as the Committee at the time of grant may deem appropriate to conform, in whole or in part, to the provisions of the Incentives in substitution for which they are
granted. 
  
 ARTICLE 15 
 MISCELLANEOUS PROVISIONS 
  
 15.1    Investment Intent. The Company may require that there be presented to and filed with it by any Participant under
the Plan, such evidence as it may deem necessary to establish that the Incentives granted or the shares of Common Stock to be purchased or transferred are being acquired for investment and not with a view to their distribution. 
  
 15.2    No Right to Continued Employment.
Neither the Plan nor any Incentive granted under the Plan shall confer upon any Participant any right with respect to continuance of employment by the Company or any Subsidiary. 
  
 15.3    Indemnification of Board and Committee. No member of the Board or the Committee,
nor any officer or Employee of the Company acting on behalf of the Board or the Committee, shall be personally liable for any action, determination, or interpretation taken or made in good faith with respect to the Plan, and all members of the Board
and the Committee, each officer of the Company, and each Employee of the Company acting on behalf of the Board or the Committee shall, to the extent permitted by law, be fully indemnified and protected by the Company in respect of any such action,
determination, or interpretation. 
  
 15.4    Effect of the Plan. Neither the adoption of this Plan nor any action of the Board or the Committee shall be deemed to give any person any right to be granted an Award or any other rights except as may be
evidenced by an Award Agreement, or any amendment thereto, duly authorized by the Committee and executed on behalf of the Company, and then only to the extent and upon the terms and conditions expressly set forth therein. 
  
 15.5    Governing Law and Compliance With Other
Laws and Regulations. The validity, construction and effect of the Plan, any Award Agreement and any rules and regulations relating to the Plan shall be determined in accordance with the laws of the State of Delaware. Notwithstanding anything
contained herein to the contrary, the Company shall not be required to sell or issue shares of Common Stock under any Incentive if the issuance thereof would constitute a violation by the Participant or the Company of any provisions of any law
(including without limitation Section 16 of the 1934 Act, Section 162(m) of the Code and the Sarbanes-Oxley Act of 2002) or regulation of any governmental authority or any national securities exchange or inter-dealer quotation system or other forum
in which shares of Common Stock are quoted or traded; and, as a condition of any sale or issuance of shares of Common Stock under an Incentive, the Committee may require such agreements or undertakings, if any, as the Committee may deem necessary or
advisable to assure compliance with any such law or regulation. The Plan, the grant and exercise of Incentives hereunder, and the obligation of the Company to sell and deliver shares of Common Stock, shall be subject to all applicable laws, rules
and regulations and to such approvals by any government or regulatory agency as may be required. 

 15.6    Tax Requirements. The Company shall have the right to deduct
from all amounts hereunder paid in cash or other form, any Federal, state, or local taxes required by law to be withheld with respect to such payments. The Participant receiving shares of Common Stock issued under the Plan, unless otherwise provided
in the Award Agreement, shall be required to pay the Company the amount of any taxes which the Company is required to withhold with respect to such shares of Common Stock. Notwithstanding the foregoing, in the event of an assignment of a
Nonqualified Stock Option pursuant to Section 15.7, the Participant who assigns the Nonqualified Stock Option shall remain subject to withholding taxes upon exercise of the Nonqualified Stock Option by the transferee to the extent required by the
Code or the rules and regulations promulgated thereunder. Such payments shall be required to be made prior to the delivery of any certificate representing such shares of Common Stock. Such payment may be made, unless otherwise provided in the Award
Agreement, (i) by the delivery of cash to the Company in an amount that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding obligation of the Company; (ii) if the Company, in its sole
discretion, so consents in writing, the actual delivery by the exercising Participant to the Company of shares of Common Stock that the Participant has not acquired from the Company within six months prior to the date of exercise, which shares so
delivered have an aggregate Fair Market Value that equals or exceeds (to avoid the issuance of fractional shares under (iii) below) the required tax withholding payment; (iii) if the Company, in its sole discretion, so consents in writing, the
Company’s withholding of a number of shares to be delivered upon the exercise of the Stock Option, which shares so withheld have an aggregate fair market value that equals (but does not exceed) the required tax withholding payment; or (iv) any
combination of (i), (ii), or (iii). The Company may, in its sole discretion, withhold any such taxes from any other cash remuneration otherwise paid by the Company to the Participant. The Committee may in the Award Agreement impose any additional
tax requirements or provisions that the Committee deems necessary or desirable. 
  
 15.7    Stock Option Assignability. Incentive Stock Options may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than by will or the laws of
descent and distribution and may be exercised during the lifetime of the Participant only by the Participant or the Participant’s legally authorized representative, and each Award Agreement in respect of an Incentive Stock Option shall so
provide. The designation by a Participant of a beneficiary will not constitute a transfer of the Stock Option. The Committee may waive or modify any limitation contained in the preceding sentences of this Section 15.9 that is not required for
compliance with Section 422 of the Code. 
  
 Except as otherwise
provided herein, Nonqualified Stock Options may not be transferred, assigned, pledged, hypothecated or otherwise conveyed or encumbered other than by will or the laws of descent and distribution. The Committee may, in its discretion, authorize all
or a portion of a Nonqualified Stock Option granted to a Participant to be on terms which permit transfer by such Participant, or by a Permitted Transferee, to (i) the Company, (ii) the spouse (or former spouse), children or grandchildren of the
Participant (“Immediate Family Members”), (iii) a trust or trusts for the exclusive benefit of such Immediate Family Members, or (iv) a partnership in which the only partners are (1) such Immediate Family Members and/or (2) entities which
are controlled by Immediate Family Members (“Permitted Transferees”), provided that (x) there shall be no consideration for any such transfer, (y) the Award Agreement pursuant to which such Nonqualified Stock Option is granted must
be approved by the Committee and must expressly provide for transferability in a manner consistent with this Section, and (z) except for transfers between Permitted Transferees, subsequent transfers of transferred Nonqualified Stock Options shall be
prohibited except those by will or the laws of descent and distribution. 
  
 Following any transfer, any such Nonqualified Stock Option shall continue to be subject to the same terms and conditions as were applicable immediately prior to transfer, provided that for purposes of Articles 8, 9,
11, 13 and 15 hereof the term “Participant” shall be deemed to include the transferee. The events of Termination of Service shall continue to be applied with respect to the original Participant, following which the Nonqualified Stock
Options shall be exercisable by the transferee only to the extent and for the periods specified in the Award Agreement. The Committee and the Company shall have no obligation to inform any transferee of a Nonqualified Stock Option of any expiration,
termination, lapse or acceleration of such Stock Option. Except as otherwise provided in the Award Agreement, the Company 

 shall have no obligation to register with any federal or state securities commission or agency any Common Stock issuable
or issued under a Nonqualified Stock Option that has been transferred by a Participant under this Section 15.7. 
  
 15.8    Use of Proceeds. Proceeds from the sale of shares of Common Stock pursuant to Incentives granted under this Plan shall
constitute general funds of the Company. 
  
 15.9    Legend. Each certificate representing shares of Restricted Stock issued to a Participant shall bear the following legend, or a similar legend deemed by the Company to constitute an appropriate notice of
the provisions hereof (any such certificate not having such legend shall be surrendered upon demand by the Company and so endorsed): 
  
 On the face of the certificate: 
  
 “Transfer of this stock is restricted in accordance with conditions printed on the reverse of this certificate.” 
  
 On the reverse: 
  
 “The shares of stock evidenced by this certificate are subject to and
transferable only in accordance with that certain Landry’s Restaurants, Inc 2003 Equity Incentive Plan, a copy of which is on file at the principal office of the Company in Houston, Texas. No transfer or pledge of the shares evidenced hereby
may be made except in accordance with and subject to the provisions of said Plan. By acceptance of this certificate, any holder, transferee or pledgee hereof agrees to be bound by all of the provisions of said Plan.” 
  
 The following legend shall be inserted on a certificate evidencing Common
Stock issued under the Plan if the shares were not issued in a transaction registered under the applicable federal and state securities laws: 
  
 “Shares of stock represented by this certificate have been acquired by the holder for investment and not for resale, transfer or distribution, have
been issued pursuant to exemptions from the registration requirements of applicable state and federal securities laws, and may not be offered for sale, sold or transferred other than pursuant to effective registration under such laws, or in
transactions otherwise in compliance with such laws, and upon evidence satisfactory to the Company of compliance with such laws, as to which the Company may rely upon an opinion of counsel satisfactory to the Company.” 
  
 A copy of this Plan shall be kept on file in the principal office of the
Company in Houston, Texas. 
  
 ***************Form of Management Agreement

  
 EXHIBIT 10.34

  
 MANAGEMENT AGREEMENT 
  
 THIS MANAGEMENT AGREEMENT (the “Agreement”) shall be effective as
of June         , 2003 (the “Effective Date”), by and between Fertitta Hospitality, LLC, a Texas limited liability corporation (the “Owner”) and Landry’s Management, L.P., a
Delaware limited partnership (the “Manager”). 
  
 WITNESSETH: 
  
 WHEREAS, the Owner possesses the
Hotel properties and ancillary facilities located in Galveston, Texas and further described on Exhibit “A” (the “Hotels”); and 
  
 WHEREAS, the Manager is experienced in the ownership, operation and management of Hotels and restaurants, including bar operations. 
  
 NOW, THEREFORE, in consideration of the mutual provisions and covenants
herein contained, the Owner and the Manager agree as follows: 
  
 1. Appointment of Manager. The Owner hereby hires the Manager and the Manager hereby accepts the appointment as exclusive Manager of the Hotels. The Manager shall at all times during the term of this Agreement act in the capacity of
an independent contractor. Except as otherwise expressly provided herein, the management of the Hotels shall be under the sole supervision, management, direction and control of the Manager. The Owner shall have no right to supervise the Manager or
its employees, in the day-to-day operation of the Hotels or the manner, method or means in which the day-to-day operations are performed. The Manager agrees that the operation of the Hotels shall be in accordance with this Agreement, but that the
detailed method of doing same shall be under the exclusive control of the Manager. In no event shall either the Owner or the Manager be considered the agent or employee of the other, it being the intent of the parties hereto that this Agreement
shall not constitute nor be construed to create a joint venture, partnership or association between the Manager and the Owner. 
  
 2. Term. The term of this Agreement shall commence as of the Effective Date, and shall terminate on the date which is three (3) years after the
Effective Date, unless sooner terminated as herein provided. This Agreement shall be automatically renewed for successive additional one (1) year terms unless either party shall notify the other in writing of its intention not to renew at least
sixty (60) days prior to the expiration of the initial term and each renewal term hereof. 
  
 3. Operation of the Hotels. The Manager shall have the exclusive right to direct, supervise, manage and operate the Hotels as an independent contractor for and on behalf of the Owner and for the Owner’s
account and shall determine the programs and policies to be followed in connection therewith, all in accordance with the provisions of this Agreement. 
  

 -1- 

 Without limiting the generality of the foregoing, the Manager shall be and is hereby
granted the authority to do the following, in each instance, however, subject to the limitations set forth in Paragraphs 4 and 5 of this Agreement: 
  
 (a) Employ, pay, supervise and discharge on behalf of the Owner all employees and personnel necessary for the operation of the Hotels.

  
 (b) Cause the Hotels, and its appurtenances
and grounds to be maintained according to the highest standards applicable within the hotel industry. Such maintenance shall include, but shall not be limited to, interior and exterior cleaning, painting, decorating, plumbing, heating and
ventilation, carpentry and such other maintenance and repair work as may be necessary. The cost of such maintenance and repair work shall be borne by the Owner, except that no disbursement for maintenance and repair shall be made in excess of
$5,000.00, nor shall the total disbursements for maintenance and repair exceed in any calendar year the amount budgeted therefor in the Annual Budget referred to in Paragraph 4 unless specifically authorized in writing by the Owner; provided,
however, that emergency repairs involving manifest danger to life or property, or immediately necessary for the preservation and safety of the Hotels, or for the safety of its guests, employees, or invites or required to avoid the suspension of any
necessary service of the Hotels, may be made by the Manager irrespective of the cost limitations imposed by this Paragraph. 
  
 (c) Negotiate and enter into service contracts required in the ordinary course of business in operating the Hotels, including without
limitation, contracts for electricity, gas, telephone, security, trash, cable television, supplies, landscaping, insect extermination and other services which are customarily and usually furnished in connection with the normal operation of a first
class hotel and which the Manager deems advisable. 
  
 (d) Supervise and purchase or arrange for the purchase of all inventories, provisions and supplies which in the normal course of business are necessary and proper to maintain and operate the Hotels, all in the best interest of the Owner.

  
 (e) Operate the Hotels and all of its
facilities and activities in the same manner as is customary and usual in the operation of other first class hotels and provide such facilities and services at the Hotels as are usually and customarily provided by operators of hotels of comparable
class and standing consistent with the Hotels’ facilities. 
  
 (f) Arrange and contract for all reasonable advertising and promotion which the Manager may deem necessary for the successful operation of the Hotels. 
  
 4. Annual Budget. On or before October 15th of each year during the term of this Agreement (other than the first
partial year – which date shall be on or before June 1st), the Manager shall furnish to the Owner a budget of anticipated expenses and other 

  

 -2- 

 
cash expenditures for the succeeding calendar year in such detail as the Owner shall reasonably require. Prior to the commencement of said succeeding
calendar year, the Owner and the Manager shall attempt to agree upon and adopt a budget for said calendar year. In the event the Owner and the Manager fail to agree upon a budget for said calendar year, the budget in effect for the immediately
preceding calendar year shall constitute the budget for the next calendar year until a new budget can be agreed upon. However, the Owner hereby covenants and agrees with the Manager that it will follow the reasonable recommendations of the Manager
for keeping or maintaining the Hotels in good repair and first class appearance and properly outfitted and equipped for proper operation. In the event of a dispute over the budget, the parties may submit this dispute to arbitration which shall be
held in accordance with the rules of the American Arbitration Association. 
  
 5. Standard of Operation. Manager shall operate the Hotels in conformity with the standards of other first class hotels located in the greater Houston-Galveston area. A first class hotel shall include the Hyatt
in downtown Houston, Marriott or Omni hotels in the Galleria area in Houston. Notwithstanding the foregoing, Manager shall not be obligated to operate the Hotels in conformity with the standards provided for herein to the extent it may be prevented
by (i) any act of force majeure, or (ii) breach by Owner of its obligations hereunder. Manager shall present to Owner on or before October 15th of each year, an Annual Business Plan for the Hotels. 
  
 General. Subject to the provisions of the Annual Budget, Manager is authorized to operate the Hotels in the following manner: 
  
 (a) Labor Policies. Manager will establish labor
policies at the Hotels, including the hiring and discharging of all employees, supervision and training of employees and entering into employment contracts. 
  
 (b) Credit and Payment Policies. Manager will establish credit policies (including entering into agreements with credit card
organizations), terms of admittance, charges for rooms, entertainment and amusement policies, and food and beverage policies and use reasonable efforts to collect all charges, rents, and other amounts due from the Hotels’ guests, tenants,
parties providing services and concessionaires, if any. 
  
 (c) Leases and Concessionaires. In the name of and for the account of Owner, Manager may lease to tenants commercial space at the Hotels and may license and grant food and beverage concessions; provided that
any lease having a term in excess of one (1) month or involving rent or similar payments to the Hotels of more than $10,000 per calendar year shall be subject to Owner’s approval. 
  
 (d) Legal Proceedings. Manager shall institute, prosecute, defend, settle and compromise such legal
proceedings, in the name of Owner, as Manager shall reasonably deem appropriate in connection with the operation of the Hotels (i) without Owner’s consent where such proceedings are of a non-extraordinary 

  

 -3- 

 
nature, such as, without limitation, collections, enforcement of contract, labor and employment matters, and proceedings when the amount in controversy is
less than $20,000, and (ii) in all other cases, with the consent of Owner, which consent shall not be unreasonably withheld or delayed. 
  
 (e) Marketing. Manager shall institute and coordinate all phases of promotion, publicity and marketing relating to the Hotels.

  
 (f) Standard Procedures. Manager will
implement Manager’s standard operational, administrative, accounting, budgeting, and operational policies and practices. Owner has reviewed such policies and practices and consents to same. 
  
 (g) Utilities, Permits and Maintenance. To the extent
prudent and necessary for the operation of the Hotels, Manager will: 
  
 (i) arrange for water, electricity, gas, power, telephone, vermin extermination, landscaping, trash removal, equipment maintenance, security and other services necessary for the proper operation and maintenance of the
Hotels, to the extent available on commercially reasonable terms; 
  
 (ii) to the extent that it is within Manager’s power to do so using commercially reasonable efforts, obtain and maintain in full force and effect all permits and licenses (including, without limitation, liquor
licenses, restaurant licenses and business licenses), and Owner shall cooperate with Manager to apply for and maintain any such permits and licenses; and 
  
 (iii) purchase on behalf of Owner all supplies and inventories, and those services and other merchandise necessary for the proper
operation and maintenance of the Hotels as contemplated by this Agreement; and in connection with such purchases, Manager may receive rebates, discounts, refunds, allowances or other forms of incentive payments from vendors, and Manager hereby
reserves the right to retain any such incentive payments for its own account. 
  
 6. Limitation, Contracts, Agreements, Etc. The Manager shall have no authority to enter into any contract, lease, license, concession, commitment, undertaking, purchase order or other agreement relating to the
Hotels requiring an expenditure in excess of $5,000.00 or which is not to be fully performed within one (1) month without the prior written consent of the Owner. In carrying out its rights and duties set forth herein, the Manager’s expenditures
shall not, without the prior written approval of the Owner, exceed for any calendar year the total amount budgeted in the Annual Budget on an overall and on a line-item basis. 
  
 7. Employees. Subject to the Annual Budget, Manager will recruit, hire and supervise all Hotels’ employees. All
decisions concerning the hiring and discharge of all Hotels’ employees shall be made by Manager or in accordance with Manager’s operational 

  

 -4- 

 
policies and practices. Notwithstanding the foregoing, Owner shall have approval over the hiring and firing of the General Manager and all department heads,
such approval not to be unreasonably withheld. Personnel employed by the Manager to properly maintain and operate the Hotels may be employees of the Owner or Manager. The Manager shall take such action as it deems necessary to insure that proper
payroll procedures are followed and compliance with applicable laws, such as payroll tax withholdings, are obtained. As an inducement to Owner to enter into this Agreement, Manager shall allow the Hotels’ employees to participate in
Manager’s dining/discount program which is available to all of Manager’s restaurant employees. 
  
 8. Operating Expenses Borne by Owner. All expenses incurred by the Manager in connection with the operation and maintenance of the Hotels under
this Agreement shall be borne by the Owner, except Manager’s general corporate overhead and the Centralized Services defined in Section 16 herein. Manager’s expenses for general corporate overhead and the Centralized Services shall be
borne by Manager. Operating expenses shall include all costs and expenses of maintaining, conducting and supervising the operation of the Hotels (which costs and expenses do not include depreciation and amortization and the costs of any other things
specified herein to be done or provided at Owner’s or Manager’s sole expense or any payments on any indebtedness including, without limitation, the indebtedness secured by a first lien deed of trust against the Hotels) incurred by Owner or
by Manager directly or at Owner’s or Manager’s request pursuant to this Agreement, including without limitation: 
  
 (a) The cost of all food and beverage sold or consumed and of all inventories and supplies. Supplies include all consumable or expendable
items for operation of the Hotels, including, without limitation, supplies for laundry, housekeeping, food and beverage service, engineering and accounting uses, together with paper supplies and miscellaneous general supply items. 
  
 (b) The budgeted salaries and wages of the General Managers,
Controllers, department heads and other Hotels’ employees (whether in the employ of Manager or Owner), including costs of payroll taxes and employee benefits (which benefits may include, without limitation, a 401K plan, medical insurance, life
insurance and a bonus program) and the costs of moving personnel, their families and their belongings to the area in which the Hotels are located at the commencement of their employment at the Hotels. 
  
 (c) The cost of all other goods and services obtained by
Manager in connection with its operation of the Hotels, including, without limitation, heat and utilities, office supplies used at the Hotels and all services performed by third parties, including leasing expenses in connection with telephone and
data processing equipment and such other equipment as the parties hereto may agree upon in writing. 
  
 (d) The cost of repairs to and maintenance of the Hotels. 
  

 -5- 

 (e) Insurance premiums for insurance related to Hotels’ employees and for insurance
required to be maintained hereunder. Premiums under blanket policies will be allocated among properties covered. 
  
 (f) All taxes, assessments and other charges (other than federal, state or local income taxes and franchise taxes or the equivalent)
payable by or assessed against Manager with respect to the operation of the Hotels and water and sewer charges, including all taxes levied or imposed against the Hotels or its contents, such as real and personal property taxes. 
  
 (g) Legal and accounting fees for services directly related
to the operation of the Hotels. 
  
 (h) The costs
and expenses of technical consultants and specialized operational experts for specialized services in connection with nonrecurring work on operational, functional, decorating, design or construction problems and activities. 
  
 (i) All bank fees and charges for maintaining the Hotels
accounts and for processing of credit cards, debit cards and similar arrangements. 
  
 (j) All expenses for advertising the Hotels and all expenses of sales promotion and public relation activities, including all license or
royalty fees. 
  
 All debts and liabilities of the Owner arising
in the course of business of the Hotels shall be obligations of the Owner, and the Manager shall not be liable for any such obligations by reason of its management, supervision and operation of the Hotels for the Owner. 
  
 9. Expenses to be Borne by Manager. The Manager’s overhead and
other costs of operating the Manager’s operations shall be the responsibility of the Manager. Extraordinary expenses such as out-of-town travel on behalf of the Owner in connection with the operation of the Hotels shall be a reimbursable
expense to be paid by the Owner, so long as Manager has obtained Owner’s prior approval. Manager may use equipment of Owner in furtherance of Manager’s business outside of the Hotels. In such event, Manager shall reimburse Owner a
reasonable fee for use of such equipment. 
  
 10. Compliance
with Laws, etc. Manager shall promptly comply with all federal, state and local laws and ordinances and lawful orders and regulations affecting the Hotels, and the health, cleanliness, safety, occupancy and use of same. Manager shall not cause
or permit the use, generation, storage, or disposal in, on or about the Hotels of any substance, materials or wastes in violation of any federal, state or local laws from time to time in effect concerning hazardous, toxic or radioactive materials
(“Hazardous Substances”). Manager shall promptly and fully comply with all state and local laws in effect from time to time prohibiting discrimination or segregation by reason of race, color, religion, disability, sex or national origin or
otherwise. Manager shall notify Owner immediately of any alleged notice of violation of any law, ordinance, permit or regulation concerning the Hotels or any of its employees. 
  

 -6- 

 11. Revenues and Expense. 
  
 (a) Manager shall use its best efforts to collect all revenues for the Hotels. All monies collected from the
management, maintenance, operation and use of the Hotels by the Manager, shall be deposited in a special account (herein referred to as the “Owner’s Account”) in the Owner’s name in a banking institution as agreed by the parties
hereto. 
  
 (b) The Manager or Owner shall pay or
cause to be paid all operating expenses (including all reimbursable expenses) of the Hotels, including compensation due the Manager under this Agreement, in accordance with the provisions of this Agreement out of the “Hotel Operating
Account.” Manager may transfer funds, with Owner’s approval, from the Owner’s Account to the Hotel Operating Account to pay for all operating expense. However, no payment shall be made without the Owner’s consent for any expense
which, under the provisions of this Agreement, requires the Owner’s consent and approval or not otherwise provided for in the Annual Budget. 
  
 (c) From time to time, if and as required, the Owner shall cause to be deposited to the Hotel Operating Account funds sufficient in the
amount to constitute reasonable working capital for the operation of the Hotels. 
  
 (d) Any dispute as to the amount of working capital required for the operation of the Hotels shall be resolved by the firm of certified
public accountants then employed by the Hotels to perform the annual audit of the books, or, in the absence of such a firm, by a firm of independent certified public accountants designated and agreed upon by the Owner and the Manager. 
  
 12. Books, Records and Statements. 
  
 (a) The Manager shall, at the Owner’s expense, keep
full and adequate books of account and other records reflecting the results of operations of the Hotels on an accrual basis. Manager shall provide to Owner daily reports, booking reports, payroll reports, accident reports, and all other records or
reports of operations as and when produced. Such records shall show income and expenses in connection with the daily management, maintenance, use and operation of the Hotels, to the extent that any accounts payable, other obligations, cash, accounts
receivable, and other assets pertaining to the management of the Hotels, can be identified and the proper amounts determined at all times. The Manager may make such modifications in its accounts as are consistent with the Manager’s standard
practice in accounting for its operations. Manager shall deliver to Owner on a monthly basis a detailed statement of operating expenses. Owner shall transfer funds monthly from Owner’s Account to the Hotel Operating Account to pay for all
proper operating expenses on a timely basis, unless otherwise paid by Owner. 
  

 -7- 

 (b) The Manager shall cause to be prepared in accordance with generally accepted
accounting principles on a monthly basis, a financial Profit and Loss statement showing in detail the financial operations of the Hotels. Balance sheets will be prepared on a monthly and on an annual basis. Profit and Loss statements are to be
prepared and delivered to the Owner or its appointed representatives not later than twenty (20) days after the end of each month during the term of the Agreement. The Manager shall use its best efforts to cause to be prepared and delivered to the
Owner within sixty (60) days after the end of each fiscal year financial statements reflecting the operations of the Hotels for such fiscal year. 
  
 (c) At the option and expense of the Owner, exercisable at any time and for any period, the Manager shall employ a reputable recognized
firm of certified public accountants to conduct an audit of the Manager’s books of account and other records reflecting the financial results of operations of the Hotels. 
  
 13. Capital Expenditures. Owner shall be responsible for all capital expenditures incurred by or for the improvement
of the Hotels. Manager shall not incur any capital expenditures without prior approval from Owner. Manager shall assist and advise Owner in connection with any capital expenditures for the Hotels, including reviewing construction contracts, designs,
plan reviews and meeting with architects, engineers or any construction contractors or material suppliers. Manager’s recommended capital expenditures shall be included in the Annual Business Plan. 
  
 14 Manager Not Obligated to Advance Funds. The Manager shall not be
obligated to advance any of its own funds to or for the account of the Owner, nor to incur any liability unless the Owner shall have deposited in the Operating Account funds necessary for the discharge thereof. However, if the Manager shall have
advanced any funds in payment of a permitted expense for the maintenance and operation of the Hotels, the Owner shall reimburse the Manager therefor on demand. 
  

15. Marketing Plan 
  
 (a) Hotels’ Sales Plan. Manager shall formulate formalized marketing plans for the Hotels which shall be included in the
Annual Business Plan. Owner shall have the right to review and approve the plans, such approval not to be unreasonably withheld. The Hotels’ employees will secure bookings for the Hotels and will encourage the use of the Hotels by tourists,
special groups, travel congresses, travel agencies, airlines and other recognized sources of hotel business. The Hotels’ employees will represent the Hotels at appropriate conventions and travel congresses. Owner agrees to honor all
reservations made by Manager and the Hotels’ employees in the ordinary course of business even though such reservations extend for a period of time beyond or are for a period of time commencing subsequent to the expiration or earlier
termination of this Agreement. 
  

 -8- 

 (b) Hotels Communications and Public Relations. Manager will provide to the Hotels
through Hotels’ employees or will cause to be provided to the Hotels, those advertising, public relations and promotional services which Manager considers necessary and appropriate to promote the name and facilities of the Hotels. These
services include without limitation: 
  
 (i)
developing and implementing the Hotels’ communications plan following Manager’s guidelines, and Manager’s sales, advertising and public relations programs; 
  
 (ii) selecting and providing required guidance to the public relations personnel of the Hotels; 

 
 (iii) preparing and disseminating news releases for trade
and consumer publications, both national and international; and 
  
 (iv) coordinating local publicity. 
  
 16. Hotels Facilities. Owner shall provide all necessary equipment, computers, software, furniture and supplies necessary for the operation of the Hotels in accordance with the standards provided for herein. Owner shall provide
appropriate office and/or back of the house space for the Manager and the Hotels’ employees, whether employed by Manager or Owner. Manager agrees not to make any changes to the Hotels’ equipment, furniture, computers, software, office
and/or back of the house space without Owner’s consent, which consent shall not be unreasonably withheld. 
  
 17. Insurance. The Manager shall provide and maintain, at the Owner’s cost and expense, insurance sufficient to furnish to the Owner and the
Manager reasonable and adequate protection for the operation of the Hotels. All insurance shall be in the name of the Owner and the Manager as named insureds and shall contain riders and endorsements adequately protecting the interests of the Owner
and the Manager as they may appear. Manager will maintain on the Hotels, as a minimum, the following insurance underwritten by an insurer approved by Owner: 
  
 (a) worker’s compensation insurance in an amount required by law; 
  
 (b) employment practices liability insurance (including coverage for harassment, discrimination and wrongful
termination, and covering defense and indemnity costs) with a limit of $1,000,000 per loss; 
  
 (c) the holder of the liquor license will maintain liquor liability insurance with single limit coverage for personal and bodily injury
and property damage of at least $10,000,000 for each occurrence naming Owner as an additional insured; 
  
 (d) commercial general liability insurance, (including coverage for product liability, completed operations, contractual liability, host
liquor liability and fire legal 

  

 -9- 

 
liability) and comprehensive automobile liability insurance (including hired and non-owned liability) with single-limit coverage for personal and bodily
injury and property damage of at least $10,000,000 per occurrence naming Owner as an additional insured. In connection with all construction, Manager will cause the general contractor to maintain comprehensive general liability insurance and
comprehensive automobile liability insurance (including hired and non-owned liability) with limits of at least $5,000,000 per occurrence for personal and bodily injury and property damage underwritten with insurers approved by Owner. Owner will be
named as an additional insured; and 
  
 (e)
Property and casualty coverage in an amount equal to 100% of the replacement value of all buildings, furniture, fixtures and equipment, inventory and all other assets under management, together with boiler and machinery coverage and business
interruption coverage for at least six (6) months of operations. 
  
 At all times during the term, Manager will furnish to Owner certificates of insurance evidencing the term and limits of coverage in force, names of applicable insurers and persons insured, and a statement that coverage may not be cancelled,
altered or permitted to lapse or expire without 30 days’ advance written notice to Owner. Revised certificates of insurance shall be forwarded to Owner each time a change in coverage or insurance carrier is made by Manager, and/or upon renewal
of expired coverages. At Owner’s option, Manager may be required to provide certified insurance policy copies. Manager may include the Hotels (and an adjacent property to the Hotels presently managed by Owner) on Manager’s bid submittal to
acquire insurance for Manager’s properties in order to obtain the best available insurance pricing. In such event, Owner shall pay an allocated cost based on Owner’s property values, projected revenues and payroll as a percentage of the
total submitted property values, projected revenues and payroll. Deductibles or self-insured retentions are subject to approval by Owner. 
  
 18. Centralized Services. To ensure that the Hotels are being operated at an appropriate standard and to maintain identity and consistency with
other first class hotels and restaurants, Manager will provide certain Centralized Services to the Hotels, including, without limitation, the selection of the General Managers and department heads for the Hotels, and the review of the operation and
maintenance of the Hotels from time to time in accordance with Manager’s established management practices and policies. The Centralized Services also include services provided for the general benefit of Owner by Manager’s corporate and
regional sales and marketing staff, food and beverage staff, financial services staff, human resources staff, construction and development staff, graphics art personnel, legal staff, risk management staff, technology staff, transportation staff and
other personnel. The type of services being offered may change from time to time at the discretion of Manager. The corporate and regional sales and marketing staff of Manager will assist Hotels’ employees to secure bookings for the Hotels’
guest rooms, meeting spaces, and food and beverage facilities through the corporate sales offices of Manager. Such corporate and regional sales and marketing staff will also promote the Hotels to tourists, special groups, travel congresses, travel
agencies, airlines and other recognized sources of hotel business. The Hotels will be represented by Manager’s corporate staff at the appropriate industry conventions. 
  

 -10- 

 19. Management Fee of Manager 
  
 (a) Fee for Operations. From and after the Effective Date and until termination of this Agreement,
the Owner shall pay to the Manager for services rendered under this Agreement a management fee determined pursuant to Exhibit “B” attached hereto (the “Management Fee”). 
  
 (b) Payment of Management Fee of Manager. The
Management Fee for each month shall be due to the Manager on the fifteenth (15th) day of the immediately succeeding month. 
  
 (c) Payment of Expenses; Working Capital. All operating expenses of the Hotels will be paid by Owner, including payroll expenses
and other fees and expenses to be paid to or reimbursed to Manager under this Agreement. In any event, sums due Manager will be due and payable not later than the date that the Profit and Loss statements are delivered to Owner. Manager will not be
required to make any advance or payment to or for the account of Owner. Owner is responsible for and will pay promptly any debts or liabilities properly incurred by Manager under this Agreement. If Owner fails timely to make any payment requested by
Manager hereunder, Manager may but shall have no obligation (in its sole discretion), to advance such amount to Owner by paying those fees and reimbursable expenses, which in such event, Owner shall reimburse Manager on demand. 
  
 (d) Reimbursement of Costs and Expenses for Hotels’
Operations. Owner will pay Manager for all costs and expenses incurred by Manager for Owner’s account in the ordinary course of business under the terms and provisions of this Agreement. These costs and expenses will be considered operating
expenses and will include, without limitation the following: 
  
 (i) Hotels’ Employees. The actual salaries and wages, including costs of payroll taxes, bonuses, retirement plan contributions, fringe benefits, and related payroll items incurred with respect to the
Hotels’ employees (employed by Manager) and the moving and related expenses (in accordance with Manager’s standard policies, as amended from time to time by Manager) incurred in connection with relocating any Hotels’ employees to the
Hotel; 
  
 (ii) Out-of-pocket Expenses.
Actual travel and out-of-pocket expenses incurred in connection with the management of the Hotels; and 
  
 (iii) Promotional, Advertising and Marketing Expenses. Those expenses incurred for production, distribution promotional,
advertising and/or marketing expenses relating to the Hotels, including but not limited to 

  

 -11- 

 
media buys, brochures, pamphlets, and materials for the promotion of the Hotels and employee relations, and those expenses incurred as a result of the
attendance of Hotels’ and/or Manager’s employees at conventions, meetings, seminars, conferences and travel congresses. Manager may cross promote and/or market the Hotels with other properties, facilities and restaurants under management
by Manager, subject to Owner’s prior approval. In such event, Owner will pay as an operating expense an allocated cost for the production, distribution, promotional, advertising and/or marketing expenses. Nothing contained herein shall obligate
Owner to pay, incur or reimburse Manager for Centralized Services. 
  
 (iv) Excludable Expenses. Notwithstanding the foregoing, Hotels’ employees, whether employed by Manager or Owner, may be directed from time to time to perform work for Manager not related to the Hotels. In
such event, a portion of the applicable Hotels’ employees salaries and wages shall not be an operating expense of the Hotels. Manager, if using Hotels’ employees for Manager’s benefit not related to the Hotels, shall identify the
employees to Owner on a monthly basis and shall properly account to Owner so that Owner is only responsible for salaries and wages for work performed at or related to the Hotels. Manager may identify in advance to Owner those employees or positions
that will be performing services for Manager unrelated to the Hotels on a regular basis and stipulate, with Owner’s approval, to an allocation of payroll expenses for said employees or positions. Manager and Owner agree that the employee
positions listed on Schedule 1 shall be Hotels’ employees that will be employed by Owner that perform services for or at Manager’s direction for the Hotels and unrelated to the Hotels on a regular basis, and that the stated cost
allocations in Schedule 1 between Owner and Manager are acceptable. The employee positions that will perform work and or services for the Hotels and unrelated to the Hotels listed on Schedule 2 will be Hotels’ employees that are employed by
Manager. The allocated portion of payroll expenses set forth on Schedule 2 shall be reimbursable operating expenses and are approved. The parties agree that the employees, employee positions and allocations are subject to change upon mutual
agreement of the parties. 
  
 (v)
Transportation. Owner shall pay Manager a reasonable fee for transportation equipment of Manager used in support of or in connection with the operation of the Hotels. No transportation equipment fees for Manager’s transportation
equipment shall be charged to Owner without Owner’s prior approval of such fees. 
  
 (e) Allocated Expenses. Manager has executed an agreement with the City of Galveston to construct, manage, and operate the
Galveston Island Convention Center. As a further inducement to Manager to enter into this Agreement, Manager may use Hotels’ employees and resources of the Hotels, including but not limited to equipment, vehicles, supplies, etc., in order to
minimize 

  

 -12- 

 
Manager’s costs, expenses and overhead in the execution and/or performance of its duties under the terms of its agreement with the City of Galveston.
Manager shall reimburse Owner for Manager’s use of Hotels’ employees and resources, including but not limited to equipment, vehicles, supplies, etc., as agreed between the parties. Manager shall account to Owner on a monthly basis for the
use of such resources, if any. 
  
 (f) Hotel
Bank Operating Account. Manager shall establish bank accounts (“Hotel Operating Accounts”) in the name of the Hotels and Owner at an institution reasonably approved by Owner. The Hotels shall process bank cards through a financial
institution selected mutually by Manager and Owner. All processing fees of appropriate banks and all such expenses and fees shall constitute operating expenses of the Hotels. 
  
 (g) Withdrawals from Hotel Operating Accounts. Checks or other documents of withdrawal from the Hotel
Operating Accounts may be made for any purpose authorized under this Agreement. These checks and documents will be signed by duly authorized representatives of Manager reasonably approved by Owner or by Owner or its designees. Duly authorized
representatives of Manager selected by Manager and acting as agents of Owner, Owner or Owner’s designees will be the only signators on the Hotel Operating Accounts. 
  
 20. Remittances to Owner. Concurrently with delivery of the monthly Profit and Loss statement, Manager will remit to
Owner an amount (“Owner’s Remittance Amount”) equal to any positive balance in the Hotel Operating Accounts that is attributable to the Hotels in excess of the amounts required to (i) pay all operating expenses, and reimbursements of
expenses then due under this Agreement, and (ii) all advances made by Manager for Owner. Notwithstanding the foregoing, prior to payment of Owner’s Remittance Amount to Owner, Manager, at Owner’s request, shall pay on behalf of Owner, from
the Hotel Operating Accounts, (i) any fixed charges, including real estate taxes and insurance premiums, and (ii) interest and debt service payments. All such remaining amounts due Owner will be transferred to Owner’s Account. 
  
 21. Termination. This Agreement may be terminated as hereinafter
provided: 
  
 (a) Termination by Owner. In
the event the Manager fails to perform any covenant on its part to be performed pursuant to the terms of this Agreement, including failure to achieve the financial projections set forth in the Annual Budget over a twelve month period, and such
failure continues for a period of thirty (30) days after receiving written notice of such default in the Manager’s obligations hereunder, then, at any time thereafter during the continuance of such failure, the Owner may by written notice
immediately terminate this Agreement. 
  
 (b)
Termination by Manager. In the event the Owner fails to perform any covenant on its part to be performed pursuant to the terms of this Agreement, and such failure continues for a period of ninety (90) days (fifteen [15] days in the event

  

 -13- 

 
of a breach of Paragraph 17(b) hereof) after receiving written notice of such default in the Owner’s obligations hereunder, then, at any time thereafter
during the continuance of such failure, the Manager may by written notice immediately terminate this Agreement. 
  
 22. Hilton Hotel License Agreement. Owner has executed a License Agreement with Hilton Inns, Inc. for the Galveston Island Hilton for one of the
Hotels. Manager has reviewed the License Agreement and agrees to manage, operate and maintain the Galveston Island Hilton in accordance with the standards of the License Agreement, except as otherwise provided herein. 
  
 23. IHOP Franchise Agreement. Owner has executed a Franchise Agreement
with International House of Pancakes, Inc. for an IHOP in Galveston, Texas. Manager has reviewed the Franchise Agreement and agrees to manage, operate and maintain the IHOP in accordance with the standards of the Franchise Agreement, except as
otherwise provided herein. 
  
 24. Condominium Agreements.
Owner has executed certain agreements with respect to the San Luis Condominiums adjacent to the San Luis Spa, Resort and Conference Center. Manager has reviewed said agreements and agrees that in connection with this Agreement and the services to be
performed hereunder, it will abide by such agreements. 
  
 25.
Miscellaneous. 
  
 (a) Assignments.
This Agreement shall not be assigned without the prior written consent of the parties hereto. 
  
 (b) Notice. Any and all notices, consents, directives or statements by either party intended for the other shall be in writing and
shall be deemed given when deposited in the United States Mail, registered or certified, postage prepaid and addressed to the Manager at 1510 West Loop South, Houston, Texas 77027; and to the Owner at Owner’s address set forth in Exhibit
“A.” Either party may change its address by notice in accordance with this Paragraph. 
  
 (c) Entire Agreement. This Agreement shall constitute the entire Agreement between the Owner and the Manager regarding the
management and operation of the Hotels and no variation or modification thereof shall be valid or enforceable except by supplement agreement, in writing, executed in the same manner as this Agreement. 
  
 (d) Applicable Law. All questions with respect to the
construction of this Agreement and the rights and liabilities of the parties hereto shall be determined in accordance with the laws of the State of Delaware. 
  

 -14- 

 IN WITNESS WHEREOF, the parties hereto have executed this Agreement effective as of the date and year
first above written. 
  

			
	OWNER
	
	FERTITTA HOSPITALITY, LLC.
		
	 By:
	 	  

	 	 	Tilman J. Fertitta, President

  

			
	MANAGER:
	
	LANDRY’S MANAGEMENT, L.P.
	
	 By its General Partner
 LANDRY’S G.P.,
INC.

		
	 By:
	 	  

	 	 	Steven L. Scheinthal, Vice President

  

 -15-

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