NASDAQ_TXRH_2019

EXECUTIVE COMPENSATION

2019 Executive Summary

The following is an executive summary of our compensation program for our 2019 fiscal year:

Compensation Philosophy

• We believe that our approach to the compensation program for our Named Executive Officers
  provides our Named Executive Officers with a compensation package which promotes the sustained
  profitability of the Company and aligns the interests of our Named Executive Officers with those of
  our shareholders. The compensation packages also reflect a pragmatic response to external market
  conditions; that is, total compensation that is competitive with comparable positions in similar
  industries, including the casual dining sector of the restaurant industry, but which is reasonable and
  in the best interests of our shareholders.

Pay Objectives

• Our primary objective in setting and evaluating the compensation for our Named Executive
  Officers is to promote the sustained profitability of the Company. Our compensation program is
  designed to achieve this objective in the following manner:
  
  
  • The creation of a more direct relationship between the compensation for our Named
    Executive Officers and shareholder value since a significant portion of our Named Executive
    Officer’s performance based restricted stock units and cash bonuses are based upon the
    achievement of defined performance goals to be established by the compensation committee.
  
  
  • The attraction and retention of top talent, while also encouraging our Named Executive
    Officers to keep their focus on both long-term business development and short-term financial
    growth.
  
  
  • The featuring of restricted stock unit awards, the value of which is dependent upon the
    performance of the Company and the price of our common stock.
  
  
  • The opportunity by the compensation committee to adjust a significant portion of the
    compensation for the Named Executive Officers through the annual grant of service based
    restricted stock units and/or performance based restricted stock units to more accurately reflect
    the overall performance of the Company.
  
  
  
  

Key Pay Components

• The compensation packages for our Named Executive Officers are divided into the following three
  key components:
  
  
  • Base Salary:Designed to provide a secure base of compensation and serve to motivate and
    retain our Named Executive Officers.