Pizza Inn, Inc. President and Chief Executive Officer Taft Comments on Opportunities, Compensation
PIZZA INN, INC.
A spokesperson for the company confirmed the terms of Taft's employment agreement as including, among other provisions, a term beginning March 31, 2005 and expiring March 31, 2007, and provisions for a base salary of $1.00 for the first 12 months and a minimum base salary of $300,000 for the second 12 months; benefits and bonuses in each year as determined by the board of directors, but the bonus shall not be less than $200,000 in the second year, conditioned on achieving certain performance goals; and severance payments based upon certain predetermined salary, benefit, and bonus amounts. The employment agreement also provides for an employment inducement grant of options to purchase 500,000 shares of Pizza Inn's common stock at a price per share equal to $2.50. The options are generally immediately exercisable as to 50,000 shares, and shall generally become exercisable as to an additional 100,000 shares on the first anniversary of the employment agreement, 150,000 shares on the second anniversary, and the remaining 200,000 shares on the third anniversary, provided that Mr. Taft continues to be employed on each such anniversary date and subject to certain termination, forfeiture and acceleration provisions. Following the second anniversary the agreement automatically renews for additional 12-month terms unless either party determines not to extend employment.
Pizza Inn, Inc. is headquartered in The Colony, Texas, along with its distribution division, Norco Restaurant Services Company. Pizza Inn franchises over 400 restaurants with annual chainwide sales of approximately $170 million.
Pizza Inn, Inc. For more information contact: 3551 Plano Parkway Tim Taft The Colony, TX 75056 President and Chief Executive Officer (469) 384-5000 For more information about the company, visit Pizza Inn at http://www.pizzainn.com/
SOURCE: Pizza Inn, Inc.
CONTACT: Tim Taft, President and Chief Executive Officer of Pizza Inn,
Web site: http://www.pizzainn.com/