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Departing Pizza Inn SVP says chain owes him $605K payout

July 1, 2004

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THE COLONY, Texas—Pizza Inn senior vice president and general counsel Keith Clark is claiming the company owes him at least $605,882 connected to his scheduled July 7 departure from the 400-unit chain.

According to a filing with the Securities and Exchange Commission, Clark said Pizza Inn must pay him "a lump sum cash severance payment of two and one-half times his current annual salary plus the highest amount of bonus and other cash compensation received by him during any one of the immediately preceding three fiscal years." In 2003, Clark's salary and related compensation totaled $242,353.

Clark believes the payout was trigged by a "change of control" related to the February acquisition of a majority number of Pizza Inn board seats by Dallas-based Newcastle Partners, the chain's largest shareholder. Earlier this year, Pizza Inn decided that Newcastle's broadened position did not trigger a change of control.

A Dec. 8, 2003, SEC filing stated Clark would be due $762,000 in the event of a change of control.

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