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<SEC-DOCUMENT>0000950134-04-019772.txt : 20041223
<SEC-HEADER>0000950134-04-019772.hdr.sgml : 20041223
<ACCEPTANCE-DATETIME>20041222203658
ACCESSION NUMBER:		0000950134-04-019772
CONFORMED SUBMISSION TYPE:	8-K/A
PUBLIC DOCUMENT COUNT:		5
CONFORMED PERIOD OF REPORT:	20041216
ITEM INFORMATION:		Entry into a Material Definitive Agreement
ITEM INFORMATION:		Termination of a Material Definitive Agreement
ITEM INFORMATION:		Regulation FD Disclosure
ITEM INFORMATION:		Financial Statements and Exhibits
FILED AS OF DATE:		20041223
DATE AS OF CHANGE:		20041222

FILER:

	COMPANY DATA:	
		COMPANY CONFORMED NAME:			PIZZA INN INC /MO/
		CENTRAL INDEX KEY:			0000718332
		STANDARD INDUSTRIAL CLASSIFICATION:	WHOLESALE-GROCERIES & RELATED PRODUCTS [5140]
		IRS NUMBER:				470654575
		STATE OF INCORPORATION:			MO
		FISCAL YEAR END:			0626

	FILING VALUES:
		FORM TYPE:		8-K/A
		SEC ACT:		1934 Act
		SEC FILE NUMBER:	000-12919
		FILM NUMBER:		041222212

	BUSINESS ADDRESS:	
		STREET 1:		5050 QUORUM DR STE 500
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75240
		BUSINESS PHONE:		2147019955

	MAIL ADDRESS:	
		STREET 1:		5050 QUORUM DR STE 500
		STREET 2:		5050 QUORUM DR STE 500
		CITY:			DALLAS
		STATE:			TX
		ZIP:			75240

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	PANTERAS CORP
		DATE OF NAME CHANGE:	19901126

	FORMER COMPANY:	
		FORMER CONFORMED NAME:	CONCEPT DEVELOPMENT INC
		DATE OF NAME CHANGE:	19870212
</SEC-HEADER>
<DOCUMENT>
<TYPE>8-K/A
<SEQUENCE>1
<FILENAME>d21155a1e8vkza.htm
<DESCRIPTION>AMENDMENT TO FORM 8-K
<TEXT>
<HTML>
<HEAD>
<TITLE>e8vkza</TITLE>
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<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">


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<P align="center" style="font-size: 14pt"><B>UNITED STATES</B>

<P align="center" style="font-size: 14pt"><B>SECURITIES AND EXCHANGE COMMISSION</B>

<DIV align="center" style="font-size: 12pt"><B>Washington, D.C. 20549</B>
</DIV>

<P align="center" style="font-size: 18pt"><B>FORM 8-K/A</B>

<P align="center" style="font-size: 12pt"><B>CURRENT REPORT<BR>
Pursuant to Section&nbsp;13 OR 15(d) of The Securities Exchange Act of 1934</B>


<P align="left" style="font-size: 10pt">Date of Report (Date of earliest event reported) <B>December&nbsp;16, 2004</B>

<P align="center" style="font-size: 24pt"><B>Pizza Inn, Inc.</B>

<DIV align="center" style="font-size: 10pt">(Exact name of registrant as specified in its charter)</DIV>

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
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    <TD width="31%">&nbsp;</TD>
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    <TD width="3%">&nbsp;</TD>
    <TD width="31%">&nbsp;</TD>
</TR>
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<TR valign="bottom">
    <TD align="center" valign="top"><B>Missouri</B><BR>
(State or other jurisdiction of incorporation)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>0-12919</B><BR>
(Commission File Number)
</TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="top"><B>47-0654575</B><BR>
(IRS Employer Identification No.)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt"><B>3551 Plano Parkway, The Colony, Texas 75056</B><BR>
(Address of principal executive offices) (Zip Code)



<P align="left" style="font-size: 10pt">Registrant&#146;s telephone number, including area code <B>(469)&nbsp;384-5000</B>



<P align="center" style="font-size: 10pt"><B>Not Applicable</B><BR>
(Former name or former address, if changed since last report)


<P align="left" style="font-size: 10pt">Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the
filing obligation of the registrant under any of the following provisions (see General Instruction
A.2. below):


<P>
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</TR>
<TR valign="top">
    <TD nowrap><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;</TD>
    <TD>Written communications pursuant to Rule&nbsp;425 under the Securities Act (17 CFR 230.425)</TD>
</TR>
</TABLE>


<P>
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<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;</TD>
    <TD>Soliciting material pursuant to Rule&nbsp;14a-12 under the Exchange Act (17 CFR 240.14a-12)</TD>
</TR>
</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))</TD>
</TR>
</TABLE>


<P>
<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
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    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap><FONT style="font-family: Wingdings">&#111;</FONT>&nbsp;</TD>
    <TD>Pre-commencement communications pursuant to Rule&nbsp;13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))</TD>
</TR>
</TABLE>


<P>
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<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<!-- TOC -->
<A name="toc"><DIV align="CENTER" style="page-break-before:always"><U><B>TABLE OF CONTENTS</B></U></DIV></A>

<P><CENTER>
<TABLE border="0" width="90%" cellpadding="0" cellspacing="0">
<TR>
	<TD width="3%"></TD>
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	<TD width="3%"></TD>
	<TD width="3%"></TD>
	<TD width="76%"></TD>
</TR>
<TR><TD></TD><TD colspan="8"><A HREF="#000">Item&nbsp;1.01 Entry into a Material Definitive Agreement.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#001">Item&nbsp;1.02 Termination of a Material Definitive Agreement.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#002">Item&nbsp;7.01 Regulation&nbsp;FD Disclosure.</A></TD></TR>
<TR><TD></TD><TD colspan="8"><A HREF="#003">Item&nbsp;9.01 Financial Statements and Exhibits.</A></TD></TR>
<TR><TD colspan="9"><A HREF="#004">SIGNATURES</A></TD></TR>
<TR><TD colspan="9"><A HREF="d21155a1exv99w1.htm">Letter Dated December 16, 2004</A></TD></TR>
<TR><TD colspan="9"><A HREF="d21155a1exv99w2.htm">Letter Dated December 20, 2004</A></TD></TR>
<TR><TD colspan="9"><A HREF="d21155a1exv99w3.htm">Letter Dated December 21, 2004</A></TD></TR>
</TABLE>
</CENTER>
<!-- /TOC -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>




<!-- link2 "Item&nbsp;1.01 Entry into a Material Definitive Agreement." -->
<DIV align="left"><A NAME="000"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;1.01 Entry into a Material Definitive Agreement.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;21, 2004, Wells Fargo Bank agreed, pursuant to that certain letter dated December
21, 2004 from Wells Fargo Bank to Pizza Inn, Inc. (the &#147;<B>December&nbsp;21, 2004 Letter</B>&#148;), which is filed
as Exhibit&nbsp;99.3 to this report and incorporated herein by reference, to amend that certain Third
Amended and Restated Loan Agreement between Pizza Inn, Inc. and Wells Fargo Bank (Texas), National
Association dated January&nbsp;22, 2003 but effective December&nbsp;29, 2002 (the &#147;<B>Loan Agreement</B>&#148;) to
continue to extend Revolving Credit Advances (as defined in the Loan Agreement) under the Loan
Agreement subject to certain conditions described in the letter, including, without limitation,
limiting the aggregate amount of all Revolving Credit Advances and Letter of Credit Liabilities at
any time outstanding to not exceed $1,200,000. Wells Fargo Bank also represented to Pizza Inn,
Inc. in the December&nbsp;21, 2004 Letter that $615,071.18 is currently outstanding and that Wells Fargo
Bank would have the right to terminate the agreement to continue to extend Revolving Credit
Advances at any time upon prior written notice to Pizza Inn, Inc.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The terms and conditions of the Loan Agreement are described in the Loan Agreement which is
filed as Exhibit&nbsp;10.1 to that certain Quarterly Report on Form 10-Q for the quarterly period ended
December&nbsp;29, 2002 filed February&nbsp;11, 2003 by Pizza Inn, Inc. with the Commission and incorporated
herein by reference. The terms and conditions of the amendment(s) to the Loan Agreement are
described in the December&nbsp;21, 2004 Letter. See also the disclosure(s) under Item&nbsp;1.02 of this
report.

<!-- link2 "Item&nbsp;1.02 Termination of a Material Definitive Agreement." -->
<DIV align="left"><A NAME="001"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;1.02 Termination of a Material Definitive Agreement.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;On December&nbsp;16, 2004, Wells Fargo Bank, National Association, notified Pizza Inn, Inc. that,
pursuant to Section&nbsp;10.12 of the Loan Agreement, the Revolving Credit Commitment (as defined in the
Loan Agreement) and all other lending obligations of Wells Fargo Bank, as the lender, under the
Loan Agreement or any of the other Loan Documents (as defined in the Loan Agreement) were
automatically terminated as a result of a Change of Control (as defined in the Loan Agreement)
resulting from Ronald W. Parker ceasing to be the Chief Executive Officer of Pizza Inn, Inc.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The Revolving Credit Commitment, other lending obligations, Change of Control, and other terms
and conditions of the Loan Agreement are described in the Loan Agreement. See also the
disclosure(s) under Item&nbsp;1.01 of this report.

<!-- link2 "Item&nbsp;7.01 Regulation&nbsp;FD Disclosure." -->
<DIV align="left"><A NAME="002"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;7.01 Regulation&nbsp;FD Disclosure.</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pizza Inn, Inc. elects to disclose the information in the letters furnished as Exhibits 99.1,
99.2, and 99.3 to this report and incorporated herein by reference through Form 8-K pursuant to
Regulation&nbsp;FD.

<!-- link2 "Item&nbsp;9.01 Financial Statements and Exhibits." -->
<DIV align="left"><A NAME="003"></A></DIV>

<P align="left" style="font-size: 10pt"><B>Item&nbsp;9.01 Financial Statements and Exhibits.</B>



<P>
<TABLE width="100%" border="0" cellpadding="0" cellspacing="0" style="font-size: 10pt">
<TR valign="top" style="font-size: 10pt; color: #000000; background: transparent">
    <TD width="2%" style="background: transparent">&nbsp;</TD>
    <TD width="2%" nowrap align="left"><B>(c)</B></TD>
    <TD width="1%">&nbsp;</TD>
    <TD><B>Exhibits.</B></TD>
</TR>

</TABLE>
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit No.</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description of Exhibit</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Second Amended and Restated Loan Agreement dated March
31, 2000 between Pizza Inn, Inc. and Wells Fargo Bank
(Texas), National Association (incorporated herein by
reference to Exhibit&nbsp;10.1 to the Quarterly Report on Form
10-Q for the quarterly period ended March&nbsp;26, 2000 filed
May&nbsp;9, 2000 by Pizza Inn, Inc. with the Commission)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="4%">&nbsp;</TD>
    <TD width="2%">&nbsp;</TD>
    <TD width="94%">&nbsp;</TD>
</TR>
<TR style="font-size: 8pt" valign="bottom">
    <TD nowrap align="left"><B>Exhibit No.</B><HR size="1" noshade></TD>
    <TD>&nbsp;</TD>
    <TD nowrap align="center"><B>Description of Exhibit</B><HR size="1" noshade></TD>
</TR>

<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">First Amendment to the Second Amended and Restated Loan
Agreement dated December&nbsp;28, 2000 between Pizza Inn, Inc.
and Wells Fargo Bank Texas, National Association
(incorporated herein by reference to Exhibit&nbsp;10.1 to the
Quarterly Report on Form&nbsp;10-Q for the quarterly period
ended December&nbsp;24, 2000 filed February&nbsp;6, 2001 by Pizza
Inn, Inc. with the Commission)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Second Amendment to the Second Amended and Restated Loan
Agreement and Related Loan Documents dated January&nbsp;31,
2002 but effective December 23, 2001 between Pizza Inn,
Inc. and Wells Fargo Bank Texas, National Association
(incorporated herein by reference to Exhibit&nbsp;10.1 to the
Quarterly Report on Form&nbsp;10-Q for the quarterly period
ended December&nbsp;23, 2001 filed February&nbsp;5, 2002 by Pizza
Inn, Inc. with the Commission)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.4
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Third Amendment to the Second Amended and Restated Loan
Agreement dated September&nbsp;26, 2002 but effective June&nbsp;25,
2002 between Pizza Inn, Inc. and Wells Fargo Bank Texas,
National Association (incorporated herein by reference to
Exhibit&nbsp;10.4 to the Annual Report on Form&nbsp;10-K for the
fiscal year ended June&nbsp;30, 2002 filed September&nbsp;27, 2002
by Pizza Inn, Inc. with the Commission)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.5
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Third Amended and Restated Loan Agreement dated January
22, 2003 but effective December&nbsp;29, 2002 between Wells
Fargo Bank (Texas), National Association and Pizza Inn,
Inc. (incorporated herein by reference to Exhibit&nbsp;10.1 to
the Quarterly Report on Form&nbsp;10-Q for the quarterly
period ended December&nbsp;29, 2002 filed February&nbsp;11, 2003 by
Pizza Inn, Inc. with the Commission)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.6
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Construction Loan Agreement dated December&nbsp;28, 2000
between Pizza Inn, Inc. and Wells Fargo Bank Texas,
National Association (filed as Exhibit&nbsp;10.2 to the
Quarterly Report on Form&nbsp;10-Q for the quarterly period
ended December&nbsp;24, 2000 filed February&nbsp;6, 2001 by Pizza
Inn, Inc. with the Commission)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.7
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Promissory Note dated December&nbsp;28, 2000 between Pizza
Inn, Inc. and Wells Fargo Bank Texas, National
Association (incorporated herein by reference to Exhibit
10.3 to the Quarterly Report on Form&nbsp;10-Q for the
quarterly period ended December&nbsp;24, 2000 filed February
6, 2001 by Pizza Inn, Inc. with the Commission)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">10.8
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Fifth Amended and Restated Revolving Credit Note dated
January&nbsp;31, 2002 between Pizza Inn, Inc. and Wells Fargo
Bank (Texas), National Association (incorporated herein
by reference to Exhibit&nbsp;10.2 to the Quarterly Report on
Form&nbsp;10-Q for the quarterly period ended December&nbsp;23,
2001 filed February&nbsp;5, 2002 by Pizza Inn, Inc. with the
Commission)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.1
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Letter dated December&nbsp;16, 2004 from Wells Fargo Bank,
National Association to Pizza Inn, Inc. (furnished
herewith and incorporated herein by reference)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.2
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Letter dated December&nbsp;20, 2004 from Wells Fargo Bank,
National Association to Pizza Inn, Inc. (furnished
herewith and incorporated herein by reference)</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">&nbsp;</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
</TR>
<TR valign="bottom">
    <TD align="center" valign="top"><DIV style="margin-left:0px; text-indent:-0px">99.3
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">Letter dated December&nbsp;21, 2004 from Wells Fargo Bank,
National Association to Pizza Inn, Inc. (filed herewith
and incorporated herein by reference)</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always"><A HREF="#toc">Table of Contents</A></H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">
<!-- link1 "SIGNATURES" -->
<DIV align="left"><A NAME="004"></A></DIV>

<P align="center" style="font-size: 10pt"><B>SIGNATURES</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly
caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

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    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Pizza Inn, Inc.<BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">Date: December 22, 2004&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ Rod McDonald
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Name:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Rod McDonald&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">Title:&nbsp;&nbsp;</TD>
    <TD colspan="2" align="left">Acting Chief Executive Officer&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<DOCUMENT>
<TYPE>EX-99.1
<SEQUENCE>2
<FILENAME>d21155a1exv99w1.htm
<DESCRIPTION>LETTER DATED DECEMBER 16, 2004
<TEXT>
<HTML>
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<TITLE>exv99w1</TITLE>
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<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 7pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
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<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="d21155a1d2115595.jpg" alt="(WELLS FARGO LOGO)">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">North Dallas Regional Commercial Banking<BR>
4975 Preston Park Boulevard<BR>
Suite&nbsp;280<BR>
Plano, TX 75093<BR>
972 599-5345<BR>
972 867-5674 Fax</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt">December&nbsp;16, 2004</DIV>


<P align="left" style="font-size: 10pt"><B>CERTIFIED MAIL:<BR>
Receipt No. 24220131950</B>


<P align="left" style="font-size: 10pt">Pizza Inn, Inc.<BR>
3551 Plano Parkway<BR>
The Colony, Texas 75056<BR>
Attn: Mark Schwartz


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re: Third Amended and Restated Loan Agreement (as amended by that certain First Amendment to Third
Amended and Restated Loan Agreement dated as of March&nbsp;28, 2004,
the (<B><I>&#147;Loan Agreement&#148;) </I></B>dated as of
January&nbsp;22,2003 by and between Pizza Inn, Inc. <B><I>(&#147;Borrower&#148;) </I></B>and Wells Fargo Bank, National
Association (successor to Wells Fargo Bank (Texas), National
Association, herein <B><I>&#147;Bank&#148;</I></B>). All terms
used herein and not otherwise defined herein shall have the meanings given to them in the Loan
Agreement.


<P align="left" style="font-size: 10pt">Ladies and Gentlemen:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;The purpose of this letter is to notify you that Bank is aware of a Change of Control resulting
from Ronald Parker ceasing to be the Chief Executive Officer of Borrower. As a result of such
Change of Control and pursuant to <B>Section&nbsp;10.12 </B>of the Loan Agreement, the Revolving Credit
Commitment and all other lending obligations of Bank under the Loan Agreement or any of the other
Loan Documents are automatically terminated.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Although, pursuant to the Loan Agreement, Borrower has expressly waived notice of Bank&#146;s exercise
of certain rights and remedies, this letter is being provided as a courtesy to you. Please be
advised that the notice given hereby is being made pursuant to the terms and provisions of the Loan
Agreement and the other Loan Documents and is not intended to and does not constitute a waiver of
any default under the Loan Documents now or hereafter existing or any of the rights or remedies
which Bank may have pursuant to the Loan Documents. No failure to exercise and no delay in
exercising, on the part of Bank shall operate as a waiver of any rights which Bank may, now or in
the future, have pursuant to the terms of the Loan Documents.

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are hereby notified that Bank requires strict compliance with the terms and conditions of the
Loan Documents and Bank does not in any manner waive any rights or remedies available against
Borrower pursuant to the Loan Agreement, Notes, Loan Documents or applicable law. No waiver of any
provision of the Loan Agreement or any other Loan Document shall be effective unless the same shall
be in writing and signed by Bank, and then such waiver or consent shall be effective only in the
specific instance to which it relates and for the purpose for which it is given. The rights
provided for in the Loan Agreement and the other Loan Documents are cumulative and not intended to
be exclusive of any other right given hereunder or now or hereafter existing at law or in equity or
by statute or otherwise.

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your immediate attention to this matter is recommended.

<P><DIV style="position: relative; float: left; margin-right: 1%; width: 65%">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

</DIV>
<DIV style="position: relative; float: right; margin-left: 1%; width: 34%">

<P align="left" style="font-size: 10pt">Very truly yours,

<P align="left" style="font-size: 10pt">WELLS FARGO BANK, NATIONAL ASSOCIATION


<P>
<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap>By:&nbsp;&nbsp;</TD>
    <TD>/s/ RALPH C. HAMM, III<BR>
<HR size="1" noshade></TD>
</TR>
</TABLE>


<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap>Name:&nbsp;&nbsp;</TD>
    <TD>Ralph C. Hamm, III<BR>
<HR size="1" noshade></TD>
</TR>
</TABLE>


<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap>Title:&nbsp;&nbsp;</TD>
    <TD>Vice President<BR>
<HR size="1" noshade></TD>
</TR>
</TABLE>

</DIV>
<BR clear="all"><BR>


<P align="center" style="font-size: 10pt">
</DIV>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.2
<SEQUENCE>3
<FILENAME>d21155a1exv99w2.htm
<DESCRIPTION>LETTER DATED DECEMBER 20, 2004
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w2</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 7pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="40%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="25%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="d21155a1d2115595.jpg" alt="(WELLS FARGO LOGO)">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">&nbsp;</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom">North Dallas Regional Commercial Banking<BR>
4975 Preston Park Boulevard<BR>
Suite&nbsp;280<BR>
Plano, TX 75093<BR>
972 599-5345<BR>
972 867-5674 Fax</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>

<DIV align="center" style="font-size: 10pt">December&nbsp;20, 2004</DIV>


<P align="left" style="font-size: 10pt"><B>OVERNIGHT MAIL:<BR>
Tracking No. 24282925656</B>


<P align="left" style="font-size: 10pt">Pizza Inn, Inc.<BR>
3551 Plano Parkway<BR>
The Colony, Texas 75056<BR>
Attn: Mark Schwartz


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re: Third Amended and Restated Loan Agreement (as amended by that certain First
Amendment to Third Amended and Restated Loan Agreement dated as of March&nbsp;28, 2004,
the &#147;<B>Loan Agreement</B>&#148;) dated as of January&nbsp;22, 2003 by and between Pizza Inn, Inc.
(&#147;<B>Borrower</B>&#148;) and Wells Fargo Bank, National Association (successor to Wells Fargo
Bank (Texas), National Association, herein &#147;<B>Bank</B>&#148;). All terms used herein and not
otherwise defined herein shall have the meanings given to them in the Loan Agreement.


<P align="left" style="font-size: 10pt">Ladies and Gentlemen:


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;It is Bank&#146;s understanding that Ronald Parker has been terminated as chief
executive officer of Borrower. Although Bank has been previously notified that the
Board of Directors of Borrower was considering the termination of Mr.&nbsp;Parker, the
Bank discovered the fact of Mr.&nbsp;Parker&#146;s actual termination on December&nbsp;13, 2004 by
an article appearing in the Dallas Morning News on December&nbsp;14, 2004. This
termination constitutes a Change of Control under the Loan Agreement
(the &#147;<B>Parker
Change of Control</B>&#148;) and, as a result, the Revolving Credit Commitment and all other
lending obligations of Bank under the Loan Agreement or any of the other Loan
Documents automatically terminated. Bank previously notified you of this termination
pursuant to a letter dated December&nbsp;16, 2004.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;In
addition, <B>Section&nbsp;10.12</B> of the Loan Agreement requires Borrower to notify
Bank and offer to accelerate payment of the Obligations
(&#147;<B>Notice and Offer</B>&#148;) within
five (5)&nbsp;days after the occurrence of a Change of Control. As of the date of this
letter Bank has not received a proper Notice and Offer from Borrower in connection
with the Parker Change of Control. Unless Borrower strictly complies with the terms
of <B>Section&nbsp;10.12</B> of the Loan Agreement and provides Bank with a Notice and Offer
relating to the Parker Change of Control on or before December&nbsp;28, 2004, such
failure shall constitute an Event of Default under the Loan Agreement and Bank shall
have the right to exercise all of its rights and remedies provided for in the Loan
Agreement and the other Loan Documents.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You are hereby notified that Bank requires strict compliance with the terms and
conditions of the Loan Documents and Bank does not in any manner waive any rights or
remedies available against Borrower pursuant to the Loan Agreement, Notes, Loan
Documents or applicable law. No waiver of any provision of the Loan Agreement or any
other Loan Document shall be effective unless the same shall be in writing and signed
by Bank, and then such waiver or consent shall be effective only in the specific
instance to which it relates and for the purpose for which it is given. The rights
provided for in the Loan Agreement and the other Loan Documents are cumulative and
not intended to be exclusive of any other right given hereunder or now or hereafter
existing at law or in equity or by statute or otherwise.



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your immediate attention to this matter is recommended.

<P><DIV style="position: relative; float: left; margin-right: 1%; width: 65%">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;

</DIV>
<DIV style="position: relative; float: right; margin-left: 1%; width: 34%">

<P align="left" style="font-size: 10pt">Very truly yours,

<P align="left" style="font-size: 10pt"><B>WELLS FARGO BANK, NATIONAL ASSOCIATION</B>


<P>
<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap>By:&nbsp;&nbsp;</TD>
    <TD>/s/ RALPH C. HAMM, III<BR>
<HR size="1" noshade></TD>
</TR>
</TABLE>


<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap>Name:&nbsp;&nbsp;</TD>
    <TD>Ralph C. Hamm, III<BR>
<HR size="1" noshade></TD>
</TR>
</TABLE>


<TABLE width="100%" border="0" cellpadding="2" cellspacing="0" style="font-size: 10pt; background: transparent; color: #000000">
<TR>
    <TD width="1%"></TD>
    <TD width="99%"></TD>
</TR>
<TR valign="top">
    <TD nowrap>Title:&nbsp;&nbsp;</TD>
    <TD>Vice President<BR>
<HR size="1" noshade></TD>
</TR>
</TABLE>

</DIV>
<BR clear="all"><BR>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>


</BODY>
</HTML>

</TEXT>
</DOCUMENT>
<DOCUMENT>
<TYPE>EX-99.3
<SEQUENCE>4
<FILENAME>d21155a1exv99w3.htm
<DESCRIPTION>LETTER DATED DECEMBER 21, 2004
<TEXT>
<HTML>
<HEAD>
<TITLE>exv99w3</TITLE>
</HEAD>
<BODY bgcolor="#FFFFFF">
<!-- PAGEBREAK -->
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>
<DIV style="font-family: 'Times New Roman',Times,serif">

<DIV align="center">
<TABLE style="font-size: 10pt" cellspacing="0" border="0" cellpadding="0" width="100%">
<!-- Begin Table Head -->
<TR valign="bottom">
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
    <TD width="3%">&nbsp;</TD>
    <TD width="30%">&nbsp;</TD>
</TR>
<!-- End Table Head -->
<!-- Begin Table Body -->
<TR valign="bottom">
    <TD valign="bottom"><DIV style="margin-left:0px; text-indent:-0px"><IMG src="d21155a1d2115595.jpg" alt="(WELLS FARGO LOGO)">
</DIV></TD>
    <TD>&nbsp;</TD>
    <TD align="center" valign="bottom">December&nbsp;21, 2004
</TD>
    <TD>&nbsp;</TD>
    <TD align="left" valign="bottom"><B>North Dallas Regional Commercial Banking</B><BR>
4975 Preston Park Boulevard<BR>
Suite&nbsp;280<BR>
Plano, TX 75093<BR>
972 599-5345<BR>
972 867-5674 Fax</TD>
</TR>
<!-- End Table Body -->
</TABLE>
</DIV>


<P align="left" style="font-size: 10pt"><B>OVERNIGHT MAIL;<BR>
Tracking No.&nbsp;24282986954</B>


<P align="left" style="font-size: 10pt">Pizza Inn, Inc.<BR>
3551 Plano Parkway<BR>
The Colony, Texas 75056<BR>
Attn: Mark Schwartz


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Re: Third Amended and Restated Loan Agreement (as amended by that certain First
Amendment to Third Amended and Restated Loan Agreement dated as of March&nbsp;28, 2004,
the <B><I>&#147;Loan Agreement&#148;</I></B><I>) </I>dated as of January&nbsp;22, 2003 by and between Pizza Inn, Inc.
<I>(</I><B><I>&#147;Borrower&#148;</I></B><I>) </I>and Wells Fargo Bank, National Association (successor to Wells Fargo
Bank (Texas), National Association, herein <B><I>&#147;Bank&#148;</I></B><I>). </I>All terms used herein and not
otherwise defined herein shall have the meanings given to them in the Loan
Agreement.


<P align="left" style="font-size: 10pt">Ladies and Gentlemen;



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Reference is made to that certain letter dated
December 16, 2004, sent you by
Bank (the <B><I>&#147;December&nbsp;16, 2004 Letter&#148;</I></B><I>) </I>notifying you of its awareness of a Change of
Control resulting from Ronald Parker ceasing to be the Chief Executive Officer of
Borrower (the <B><I>&#147;Parker Change of Control&#148;</I></B><I>). </I>In the December&nbsp;16, 2004 Letter, Bank
informed you that as a result of the Parker Change of Control, the Revolving Credit
Commitment and all other lending obligations of Bank under the Loan Agreement or any
of the other Loan Documents are automatically terminated.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;You have requested that Bank continue to extend Revolving Credit Advances under
the Loan Agreement. Without waiving any Default or Event of Default now existing or
hereafter arising under the Loan Agreement and the other Loan Documents or any of
Bank&#146;s rights and remedies under the Loan Agreement and the other Loan Documents
resulting from the Parker Change of Control, Bank agrees to continue to extend
Revolving Credit Advances under the Loan Agreement subject to the following:



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1.
No Event of Default shall have occurred and be continuing, or would result
from such Revolving Credit Advance;



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. All of the representations and warranties contained in the Loan Agreement and
in the other Loan Documents shall be true and correct on and as of the date of such
Revolving Credit Advance;



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. All Revolving Credit Advances, and requests thereof, shall be made in
accordance with, and subject to, the terms set forth in the Loan Agreement;



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. The aggregate amount of all Revolving Credit Advances and Letter of Credit
Liabilities at any time outstanding shall not exceed $1,200,000 of which $615,071.18
is currently outstanding;



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Borrower and each other Obligated Party shall have executed and delivered to
Bank the Ratification and Release Agreement attached hereto as
<B>Exhibit&nbsp;A;</B>



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Bank shall have received resolutions of Borrower and each Obligated Party
certified by their
respective Secretary or an Assistant Secretary which authorize the
execution, delivery, and


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

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<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">Pizza Inn, Inc.<BR>
December&nbsp;21, 2004<BR>
Page 2



<P align="left" style="margin-left:2%; font-size: 10pt">performance by such party of the Loan Documents, including without limitation, the
Ratification and Release Agreement, to which Borrower or such Obligated Party is or is to be a
party;



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;7.
Bank shall have received a certificate of incumbency of Borrower and each Obligated Party
certified by their respective Secretary or an Assistant Secretary certifying the names of
the officers of
Borrower and such Obligated Party authorized to sign the Loan Documents, including without
limitation, the Ratification and Release Agreement, to which Borrower or such Obligated Party
is or is to be a party (including the certificates contemplated herein) together with
specimen signatures of such officers; and



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;8.
Bank shall have the right to terminate its agreement to continue to extend Revolving
Credit
Advances at any time upon prior written notice to Borrower.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Notwithstanding Bank&#146;s agreement to continue to extend Revolving Credit Advances, subject to
the foregoing conditions, you are hereby notified that Bank requires strict compliance with the
terms and conditions of the Loan Documents and Bank does not in any manner waive any Default or
Event of Default now existing or hereafter arising under the Loan Agreement and the other Loan
Documents or any of Bank&#146;s rights or remedies available against Borrower pursuant to the Loan
Agreement, Notes, Loan Documents or applicable law, including, without limitation, Bank&#146;s right to
terminate the Revolving Credit Commitment and all other lending obligations of Bank under the Loan
Agreement or any of the other Loan Documents. No waiver of any provision of the Loan Agreement or
any other Loan Document shall be effective unless the same shall be in writing and signed by Bank,
and then such waiver or consent. shall be effective only in the specific instance to which it
relates and for the purposes for which it is given. The rights provided for in the Loan Agreement
and the other Loan Documents are cumulative and not intended to be exclusive of any other right
given hereunder or now or hereafter existing at law or in equity or by statute or otherwise.


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;Your immediate attention to this matter is recommended.

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">Very truly yours,<BR>
<BR>
<BR>
<B>WELLS FARGO BANK, NATIONAL<BR>
ASSOCIATION</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">/s/ RALPH HAMM III
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">Ralph Hamm III&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Title:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">Vice President&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>


<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">Pizza Inn, Inc,<BR>
December&nbsp;21, 2004<BR>
Page 3


<P align="center" style="font-size: 10pt"><B>EXHIBIT A</B>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="center" style="font-size: 10pt"><B>RATIFICATION AND RELEASE AGREEMENT</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;THIS RATIFICATION AND RELEASE AGREEMENT (this <B><I>&#147;Agreement&#148;</I></B><I>), </I>is executed as of
December&nbsp;21, 2004 by <B>PIZZA INN, INC.</B>, a Missouri corporation
<B><I>(&#147;Borrower&#148;</I></B><I>), </I><B>BARKO REALTY,
INC.,</B> a Texas corporation <I>(</I><B><I>&#147;Barko&#148;</I></B><I>), </I><B>R-CHECK, INC.,</B> a Texas corporation <I>(</I><B><I>&#147;R-Check&#148;</I></B><I>), </I>and
<B>PIZZA INN OF DELAWARE, INC.,</B> a Delaware corporation <I>(</I><B><I>&#147;Pizza Inn Delaware&#148;</I></B><I>, </I>Barko, R-Check
and Pizza Inn Delaware are collectively referred to herein as the <B><I>&#147;Guarantor&#148; </I></B>and each
individually as a <B><I>&#147;Guarantor&#148;</I></B><I>) </I>to and for the benefit of <B>WELLS FARGO BANK, NATIONAL
ASSOCIATION</B> (successor to Wells Fargo Bank (Texas), National Association, herein <B><I>&#147;Bank&#148;</I></B><I>).</I>


<P align="center" style="font-size: 10pt"><B>RECITALS:</B>



<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Borrower and Bank are parties to that certain Third Amended and Restated
Loan Agreement (as amended by that certain First Amendment to Third Amended and Restated
Loan Agreement dated as of March&nbsp;28, 2004, the <B><I>&#147;Loan Agreement&#148;</I></B><I>) </I>dated as of January
22, 2003. All terms used herein and not otherwise defined herein shall have the meanings
given to them in the Loan Agreement;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Guarantors executed and delivered that certain Third Amended and Restated
Guaranty dated January&nbsp;22, 2003, to and in favor of Bank (the <B><I>&#147;Guaranty&#148;</I></B><I>);</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, a Change of Control has occurred under the Loan Agreement resulting from
Ronald Parker ceasing to be the Chief Executive Officer of Borrower (the <B><I>&#147;Parker Change
of Control&#148;</I></B><I>) </I>and as a result the Revolving Credit Commitment and all other lending
obligations of Bank under the Loan Agreement or any of the other Loan Documents
automatically terminated;


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS, Borrower has requested that Bank continue to extend Revolving Credit
Advances under the Loan Agreement; and


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;WHEREAS,
pursuant to the terms of that certain letter dated December&nbsp;21, 2004 from
Bank to Borrower (the <B><I>&#147;December&nbsp;21, 2004 Letter&#148;</I></B><I>), </I>Bank has conditioned its agreement to
continue to extend Revolving Credit Advances under the Loan Agreement on, among other
things, the execution of this Agreement by Borrower and Guarantors <I>(</I><B><I>&#147;Obligors&#148;</I></B><I>).</I>


<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;NOW, THEREFORE, in consideration of the premises and the mutual covenants herein
contained, Obligors hereby represent, warrant and agree as follows:



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;1. Consent. Obligors hereby consent and agree to the terms of the December
21, 2004 Letter.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;2. Ratifications. The terms and provisions of the Loan Agreement, the Guaranty and
each other
Loan Document are ratified and confirmed and shall continue in full force and
effect. Guarantors
acknowledge and agree that any and all Revolving Credit Advances made to Borrower by
Bank
pursuant to the December&nbsp;21, 2004 letter are included as a portion of the
indebtedness guaranteed by
Guarantor under the Guaranty. Obligors agree that the Loan Agreement, the Guaranty
and each other
Loan Document to which they are a party are legal, valid and binding obligations of
Obligors, and
enforceable against Obligors in accordance with their respective terms.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;3. Representations and Warranties. The representations and warranties contained in
the Loan
Agreement, the Guaranty and each other Loan Document are true and correct on and as
of the date


<P align="left" style="font-size: 10pt"><B>Ratification and Release Agreement &#150; Page 1</B>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">


<P align="left" style="margin-left:2%; font-size: 10pt">hereof as though made on and as of the date hereof, except to the extent such
representations and warranties relate to an earlier date.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;4. Outstanding Obligations. The current outstanding principal balance of (a)
the Real Estate
Loan is $6,940,104.00 and (b)&nbsp;the Revolving Credit Advances and Letter of Credit
Liabilities is
$615,071.18.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;5. Full Compliance. Except for the Parker Change of Control and defaults now
existing or
hereafter arising therefrom, Obligors are in full compliance with all covenants and
agreements
contained in the Loan Agreement, the Guaranty and each other Loan Document to which
they are a
party and no Default or Event of Default exists thereunder.



<P align="left" style="margin-left:2%; font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;6. Release. Each Obligor hereby acknowledges that it has no defense, counterclaim,
offset,
cross-complaint, claim or demand of any kind or nature whatsoever that can be
asserted to reduce or
eliminate all or any part of its liability to repay the Obligations or to seek
affirmative relief or
damages of any kind or nature from Bank. Each Obligor hereby voluntarily and
knowingly releases
and forever discharges Bank, its predecessors, agents, board of directors, officers,
employees,
successors and assigns, from all possible claims, demands, actions, causes of
action, damages, costs,
expenses, and liabilities whatsoever, known or unknown, anticipated or
unanticipated, suspected or
unsuspected, fixed, contingent, or conditional, at law or in equity, originating in
whole or in part on or
before the date hereof, which Obligor may now or hereafter have against Bank, its
predecessors,
agents, board of directors, officers, employees, successors and assigns, if any, and
irrespective of
whether any such claims arise out of contract, tort, violation of law or
regulations, or otherwise, and
arising from any of the Obligations, including, without limitation, any contracting
for, charging,
taking, reserving, collecting or receiving interest in excess of the highest lawful
rate applicable, and
the exercise of any rights and remedies under the Loan Agreement, the Guaranty or
any other Loan
Document.


<P align="left" style="font-size: 10pt"><B>Ratification and Release Agreement &#151; Page 2</B>



<P align="center" style="font-size: 10pt">&nbsp;
</DIV>

<!-- PAGEBREAK -->
<P><HR noshade><P>
<H5 align="left" style="page-break-before:always">&nbsp;</H5><P>

<DIV style="font-family: 'Times New Roman',Times,serif">

<P align="left" style="font-size: 10pt">&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;IN WITNESS WHEREOF, the Borrower has duly executed this Agreement as of the day and year
first above written.

<TABLE width="100%" border="0" cellspacing="0" cellpadding="0" style="font-size: 10pt">
<TR>
    <TD width="48%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="1%">&nbsp;</TD>
    <TD width="35%">&nbsp;</TD>
    <TD width="15%">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">BORROWER:<BR>
<BR>
<B>PIZZA INN, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Title:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left">GUARANTORS:<BR>
<BR>
<BR>
<B>BARKO REALTY, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Title:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>R-CHECK, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Title:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
<TR>
    <TD valign="top" align="left">&nbsp;</TD>
    <TD colspan="3" align="left"><B>PIZZA INN OF DELAWARE, INC.</B><BR>
&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD valign="top">By:&nbsp;&nbsp;</TD>
    <TD colspan="2" style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Name:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR><TR>
    <TD align="left">&nbsp;</TD>
    <TD colspan="2" valign="top">Title:&nbsp;&nbsp;</TD>
    <TD style="border-bottom: 1px solid #000000" align="left">&nbsp;</TD>
    <TD>&nbsp;</TD>
</TR>
<TR>
    <TD colspan="5">&nbsp;</TD>
</TR>
</TABLE>

<P align="left" style="font-size: 10pt"><B>Ratification and Release Agreement &#151; Page 3</B>




<P align="center" style="font-size: 10pt">&nbsp;
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